Qatar- GCC EU service sector trade set to increase

Date

11/8/2015 1:19:41 PM

(MENAFN- The Peninsula)

By Sachin Kumar

DOHA: The potential for growth of businesses and cooperation in the services sector between the Gulf Cooperation Council (GCC) and European Union (EU) is really huge.

Services related to energy and environment sector waste management water management and Information Technology offers vast scope for growth between the GCC and EU according to European Services Forum.

Currently the share of services in total trade between GCC and EU stands around 22 percent.

“There is potential of growth in energy and environmental related services waste management and water management services. In the construction we have already reached a summit” Pascal Kerneis (pitctured) Managing Director European Services Forum told The Peninsula on the sidelines of event organised recently by the Qatar Chambers. “In tourism there is lot to be done. Information Technology is another sector where there is lot of potential because Europe Union is doing a lot of work in application development.”

Kerneis said that the trade figures might not be able reflect the quantum of trade of services between the two blocs because many a times services are embedded in the trade of goods. “When you import or export the goods there are a lot of services around the products. We are now having more and more of this trade where services are embedded in import and export of products. So it is about services around the product and this is where we are going to see increase in coming years” said Kerneis. “Share of FDI in services will increase in coming years.”

The GCC countries account for 4.2 percent of total EU trade and are a significant export market for the EU currently the fifth largest worldwide. EU exports to the GCC are diverse but focused on manufactured products such as power generation plants railway locomotives and aircraft as well as electrical machinery and mechanical appliances. Machinery and transport equipment and chemicals were the main categories of products exported in 2012.

“The share of services was around 22 percent in total trade between the GCC and EU in 2011. Nothing has changed much since then and share of services in total traded has remained around that level” said Kerneis.

The Peninsula

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