The Gulf Cooperation Council (GCC) countries are forecast to allocate $15 billion in the next five years on expansion of their 35 major ports to handle bigger capacity following an estimated eight percent growth to nearly 25 million TEUs in 2010, the Kuwaiti-based Markaz financial center said in a study on GCC sea port. “There is a robust growth in investments on seaports to increase capacity. So far, the highest investments have come from Dubai and Abu Dhabi. The other GCC countries are also all set to improve their ports,” Markaz said. “By compiling the list of seaport projects from Meed Projects, we arrive at a current total spending of $15 billion for the GCC. These projects are all due for completion within the five-year period from mid-2011 to mid-2016,” it added. The bulk of the investments will be in the UAE, it said, as the emirates' ports recorded biggest volume in the GCC at 59 percent, the study said. “Dubai is the foremost GCC port by container volume and is ranked at the ninth place among the top 10 world container ports in 2010. Dubai had been ranked as high as seven in 2007 and 2009.” Dubai was ranked seventh in the world in 2009, handling 11.1 million TEUs. It moved down in rank to ninth in 2010 (mostly due to the growth of Chinese ports), nevertheless handling 11.6 million TEUs - a 4.5 percent increase. Salalah port in Oman ranked 32nd in 2010 with 3.5 million TEUs while the Saudi Jeddah port was 30th with an annual throughput of 3.8 million TEUs in 2010. A breakdown showed Abu Dhabi has the most ambitious project, valued at $10 billion. It competes with Dubai, and this may create overcapacity. Qatar has witnessed various delays but now shows the first signs of catch-up with its Phase I of the New Doha Port signed in March 2011, Markaz said. Kuwait is progressing fast on its new Bubiyan Port project while Oman has started 2011 by consolidating on its past maritime success, it added. A shift in the direction and nature of trade is taking place between the GCC and the world. The report said that about 30 years ago, the OECD accounted for 85 percent of the GCC's trade while by 2009, the emerging markets accounted for 45 percent. Data showed that trade between the GCC and the emerging markets have been rising at 11 percent annually between 1980 and 2009, whereas the annual growth with the OECD was only five percent. Global analysts EC Harris ranked the GCC as the most attractive region in the world for investment in port developments. Spurred by mega-projects such as Khalifa Industrial Zone, Abu Dhabi (KIZAD), and Oman's Al Duqm, the survey assessed expected FDI growth and the ease of entering and doing business across a number of markets. However, the report also quoted a lack in cross-border agreements between member states, adding that until a transport network is extended across the entire GCC, the region will not be able to fully capitalize on this investment. “A clear example can be seen in Europe where the interconnected rail network has helped to open up lucrative trade routes for even the smaller member countries….there are 35 ports in the GCC, some of which are currently undergoing expansion to meet the increasing trade demands.”
