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On import absorption alone the UAE is more than twice Saudi Arabia; on population, GDP and the absolute value of Korean exports, Saudi Arabia is ahead. In 2026 the closure of the Strait of Hormuz adds a further variable, so the answer changes with the indicator you choose. (As of 2026.09)
“Saudi Arabia comes after the UAE” is a long-standing assumption. Checked against the data, it is half right. Here is where it holds, where it does not, and what has changed as of 2026.
Below are the basic indicators for the six GCC states. Population, nominal GDP, GDP per capita and merchandise imports are World Bank figures for 2024; Korean exports are from World Bank WITS (based on UN Comtrade) for 2023.
Saudi Arabia: population 35.3m · nominal GDP USD 1,254.1bn · GDP per capita USD 35,528 · merchandise imports USD 232.8bn · Korean exports USD 5.32bn
United Arab Emirates (UAE): population 10.99m · nominal GDP USD 552.3bn · GDP per capita USD 50,274 · merchandise imports USD 544.1bn · Korean exports USD 4.41bn
Qatar: population 2.86m · nominal GDP USD 216.3bn · GDP per capita USD 75,685 · merchandise imports USD 35.8bn · Korean exports USD 0.76bn
Kuwait: population 4.90m · nominal GDP USD 160.9bn · GDP per capita USD 32,856 · merchandise imports USD 38.1bn · Korean exports USD 0.56bn
Oman: population 5.28m · nominal GDP USD 107.1bn · GDP per capita USD 20,285 · merchandise imports USD 43.5bn · Korean exports USD 0.49bn
Bahrain: population 1.59m · nominal GDP USD 47.2bn · GDP per capita USD 29,717 · merchandise imports USD 15.6bn · Korean exports USD 0.15bn
2023 is the most recent year for which Korean exports to individual GCC states were available at the time of this search. Figures from 2024 onwards need to be confirmed separately, for example through Korea Customs Service trade statistics.
“Saudi Arabia comes after the UAE” holds on population, GDP and the absolute value of Korean exports. The population is 3.2 times larger and nominal GDP 2.3 times, and Korean exports to Saudi Arabia already exceeded exports to the UAE as of 2023.
Measure market size by how much a country buys, however, and the result reverses. Merchandise imports in 2024 were USD 544.1bn for the UAE against USD 232.8bn for Saudi Arabia — 2.3 times larger.
A large share of the UAE's imports is re-exported, though. US Department of Commerce material likewise describes the UAE as a regional trading hub that, continuing a long tradition of trade with South Asia, the Gulf and East Africa, serves northern, southern, western and central Africa and the whole of the Middle East. Part of what the UAE imports, in other words, is not consumed there.
After the Israeli and US strikes on Iran on 28 February 2026, Iran closed the Strait of Hormuz and Gulf maritime logistics stopped.
A briefing published by the UK House of Commons Library on 8 June 2026 cites WTO data showing that, from late February to early June, crude tanker transits fell by 95%, LNG carriers by 99% and fertiliser cargo by 87%. The same source states that roughly 93% of Qatar's LNG exports and roughly 96% of the UAE's pass through the strait, equivalent to about 19% of global LNG trade.
The WTO Data Lab's Strait of Hormuz trade tracker states that, even after the ceasefire agreement of 17 June, as at 29 June 2026 only limited and uneven signs of resumption were observed, with crude flows amounting to a few isolated shipments.
Growth forecasts were adjusted accordingly. The IMF's April 2026 Regional Economic Outlook for the Middle East and Central Asia put 2026 growth at 3.1% for Saudi Arabia, 3.1% for the UAE, -8.6% for Qatar, -0.6% for Kuwait, 3.5% for Oman and -0.5% for Bahrain. The downgrade against the previous forecast was largest in the world for Qatar at 14.7 percentage points, and smallest in the region for Oman at 0.5 points.
In its July 2026 World Economic Outlook Update the IMF cut 2026 growth for the Middle East and Central Asia again, to 0.7%, and Saudi Arabia to 1.7%. That forecast rests, however, on an assumption that Hormuz begins reopening in mid-July and normalises by March 2027. The actuals are lower: Saudi Arabia's General Authority for Statistics (GASTAT) published real GDP growth of -4.8% for Q2 2026, an industrial production index of -16.3% for June 2026, and building permits down 33.3% year on year in May.
The Korea–UAE CEPA entered into force on 1 May 2026, after negotiations opened in April 2021, concluded in October 2023, were signed in May 2024 and ratified in March 2026. It runs to 18 chapters covering trade in goods, rules of origin, customs procedures, trade in services, digital trade, government procurement and investment facilitation.
The Korea–GCC FTA, by contrast, was concluded on 28 December 2023 but has not been signed and has not entered into force. It does not appear on the Korea Customs Service list of FTAs in force.
As at September 2026, then, the UAE is the only one of the six GCC states where preferential tariffs with Korea actually apply. The other five, Saudi Arabia included, apply the GCC common tariff as it stands.
Under the GCC customs union, imports from outside the bloc carry a duty of 5% of the CIF value. There are product-level exceptions — Bahrain's 225% on alcohol and 200% on tobacco, and Saudi duties of up to 25% protecting domestic production, among others. VAT varies considerably by country.
Saudi Arabia 15%: introduced at 5% on 1 January 2018, raised to 15% on 1 July 2020
Bahrain 10% · UAE 5% · Oman 5%: Oman introduced VAT on 16 April 2021
Qatar and Kuwait: not introduced
Conditions for establishing a company differ too. According to edition 13 of the investor guide published by Saudi Arabia's Ministry of Investment (MISA) in July 2026, carrying out commercial (trading) activity with 100% foreign ownership requires minimum capital of SAR 30m, a track record in at least three regional or global markets, and an obligation to train 30% of Saudi staff annually. Where there is a Saudi partner, the Saudi shareholding is at least 25%. The regional headquarters (RHQ) regime requires a separate legal entity in Saudi Arabia, the start of required activities within six months, and 15 full-time staff within a year, three of them at executive level.
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above that, applying to financial years starting on or after 1 June 2023. Free zone incentives are retained where the conditions are met.
There is no single answer to “what comes after the UAE”. On the size of the end market it is Saudi Arabia; on import absorption and as a distribution base it is still the UAE; on preferential treatment it is the UAE alone; and on 2026 growth forecasts and geographic insulation it is Oman.
In practice the natural order is to secure a base and distribution in the UAE, aim at Saudi Arabia as the end market, and take Oman and Qatar as the product and the moment allow. As of 2026, however, logistics itself is not normal, so that variable has to be checked first when fixing the timing of entry.
It depends on the indicator. Saudi Arabia leads on population (3.2 times), nominal GDP (2.3 times) and the absolute value of Korean exports. On 2024 merchandise imports, however, the UAE leads at USD 544.1bn against USD 232.8bn — 2.3 times larger. A large share of the UAE's imports is re-exported. (World Bank 2024; WITS 2023)
No. It was concluded on 28 December 2023 but has not been signed or brought into force, and does not appear on the Korea Customs Service list of FTAs in force. The UAE is the only one of the six GCC states where preferential tariffs with Korea apply (Korea–UAE CEPA, in force 1 May 2026).
Qatar and Kuwait have not introduced it. Saudi Arabia is at 15% (introduced at 5% in 2018, raised to 15% in 2020), Bahrain 10%, the UAE 5% and Oman 5% (introduced 16 April 2021). Customs duty is common to all six at 5% of the CIF value on imports from outside the bloc.
Transits through the strait stopped after 28 February 2026, and the WTO Data Lab states that even after the ceasefire of 17 June, only limited signs of resumption were observed as at 29 June. The IMF cut 2026 growth to 0.7% for the Middle East and Central Asia and 1.7% for Saudi Arabia, while GASTAT's actual figure for Q2 2026 was -4.8%. This is a phase in which logistics routes and timings have to be checked first, and the situation is fluid, so the latest announcements should be re-checked.
Yes, subject to conditions. Edition 13 of the MISA investor guide (July 2026) sets out, for 100% foreign-owned commercial activity, minimum capital of SAR 30m, a track record in at least three regional or global markets, and an obligation to train 30% of Saudi staff annually. Where there is a Saudi partner, the Saudi shareholding is at least 25%.
1.World Bank, World Development Indicators (WDI): population, nominal GDP, GDP per capita and merchandise imports. All 2024
2.World Bank WITS (based on UN Comtrade): Korean exports to the six GCC states. 2023
3.IMF, Regional Economic Outlook: Middle East and Central Asia, April 2026(published 16 Apr 2026): real GDP growth forecasts for 2025–27 by country and the scale of the downgrades
4.IMF, World Economic Outlook Update, July 2026(8 Jul 2026): downgrades for the Middle East and Central Asia and for Saudi Arabia, and the assumption about the reopening of Hormuz
5.Saudi General Authority for Statistics (GASTAT): real GDP growth for Q2 2026, the industrial production index for June 2026, and building permits for May 2026
6.UK House of Commons Library research briefing CBP-10636(8 Jun 2026): how the closure of Hormuz came about, the falls in transits on WTO data (crude 95%, LNG 99%, fertiliser 87%), and the dependence of Qatari and UAE LNG exports on the strait
7.WTO Data Lab, Strait of Hormuz Trade Tracker(as at 29 Jun 2026): the state of resumption after the ceasefire
8.Ministry of Trade, Industry and Energy FTA portal and Korea Customs Service FTA portal: the stages and entry into force of the Korea–UAE CEPA (1 May 2026), the conclusion of the Korea–GCC FTA (28 Dec 2023) and its unsigned status, and the list of agreements in force
9.Saudi Ministry of Investment (MISA), investor guide edition 13(Jul 2026): requirements for 100% foreign-owned commercial activity, the Saudi partner shareholding, and the regional headquarters (RHQ) requirements
10.UAE government portal (u.ae): UAE corporate tax rates and when they apply
11.PwC Worldwide Tax Summaries: VAT rates in the six GCC states with introduction and increase dates, the GCC common tariff and product-level exceptions. Country pages, 2026 review
Contents
01. Indicators for the six states
02. Testing the assumption
03. The 2026 Hormuz variable
04. The difference agreements make
05. Taxes and entry conditions
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