The Red Sea Region History
Red Sea location importance on economic Map
The Red Sea region comprises those countries that either border the Red Sea or use it as their primary trading corridor. Collectively, these countries make up one of the fastest-growing emerging markets in the world, with a population of 750 million people expected to double by 2050.
Despite the enormous volume of trade that flows through the region – an estimated 10 percent of all global maritime trade passes through the Red Sea – there is comparatively little intraregional trade. HSBC, for example, estimates that intraregional trade within the Middle East and Africa accounts for only 1 percent of global trade. By comparison, intraregional trade in Western Europe and Asia-Pacific account for 19 percent and 17 percent of global trade respectively.
Given that the Red Sea region has a total population today that is 20 percent greater than the population of the EU, there are clearly opportunities to enhance intraregional trade. A regional trade facilitation initiative could have an 8-12 percent impact on GDP, depending on its scope.