52
Table 3.6: Intra-OIC trade data (Egypt), 2000-2010
Source: ICDT
Table 3.7: Intra-OIC trade data (Saudi Arabia), 2000-2010
Source: ICDT
Sustaining and growing interdependency will be a function of improved economic conditions, better
framework conditions and increased industrial diversity. As part of a circular argument, gradual increases
in intra-OIC activity may enable these improvements to occur.
3.3.3. SMEs in the MENA Region
In general terms SMEs are regarded as an effective enabler of economic growth. This is in part manifest
in the growth in the number of start-ups which has increased eight times in 2011 as compared to 2005,
with Egypt together with Lebanon, the UAE and Jordan attracting the most of early stage investments
(Dubai Internet City and Frost and Sullivan). Governments in the region are also seeking to drive
economic growth through business friendly policies. Some countries such as Egypt, Saudi Arabia, Jordan
and the UAE have started incubation programmes, ICT funding, and tie-ups with international
governments and private equity firms, thereby demonstrating a commitment to innovation.
The current definition for SMEs in the MENA region varies between countries. While Saudi Arabia and
the UAE tend to use markers close to the European definition, Jordan and Egypt restrict medium sized
firms to 100 employees SMEs have caught the attention of policy makers as they are seen as possible
solution providers to the problems of high unemployment and in some cases poverty, the declining levels
of employment in the public sector,
SMEs in Saudi Arabia
According to the World Bank, the SME sector currently forms 90% of all Saudi companies, yet the sector
only contributes a quarter of total employment and about a third of the country's gross domestic product.
The country’s SME sector remains inadequately financed. The share of bank loans that are received by
SMEs is below the levels of other countries. This inadequacy has a ripple effect on the capability of
SMEs to operate effectively in the exports market. To address this problem, the government has allocated
US$ 5bn to the Saudi Credit and Savings Bank in order to finance small businesses. It is anticipated that a
similar amount of money will be transferred to the Saudi Industrial Development Bank to support bank
Egypt 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
World exports
(in millions US $)
5633 4141 6971,1 8301 10500 10652,12 13756,31 16096,28 29317,4 24818,1
Intra OIC exports
share in %
13,81 18,65 14,69 15,76 27,76 23,82 35,76 39,93 27,08 29,88
Intra OIC trade share in % 12,02 16,29 13,37 14,56 20,88 22,99 32,21 33,42 21,25 22,91
Main intra-OIC exported
products (2008)
Petroleum/petroleumproducts, natural gas, Iron and steel, non–metal and mineral products, textiles and cereals
Main Customer (2009) Saudi Arabia, Syria, Jordan, Turkey, U.A. Emirates, Sudan, Iraq, Morocco, Indonesia, Pakistan
Saudi Arabia 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
World exports
(in millions US $)
74688 70453 66703 86219 112107 181054,54 190210 234950,76 279547 173232 227750
Intra OIC exports
(in millions US $)
10141 10298 9390 11643 18033 30446 31033 35035 42646 27702 35916
Intra OIC exports
share in %
13,58 14,62 14,08 13,5 16,09 16,82 16,32 14,91 15,26 15,99 15,77
Intra OIC trade share in % 12,86 11,54 10,94 11,05 14,92 14,85 14,77 14,06 14,66 14,3 15,11
Main intra-OIC exported
products (2008)
Petroleumand pretroleumproducts, natural gas, organic chemicals, dyes and coloring material, inorganic chemicals
Main Customer Pakistan, Indonesia, Bahrain, U.A. Emirates, Jordan, Syria, Egypt, Turkey, Morocco and Kuwait