Abstract

Trade and investment are vital to economic growth and markets#x2019; integration. A study was conducted to assess U.S. - Arab trade and investment relations and the impact of Free Trade Agreements on the economic development in the Arab world. The qualitative research utilized publically available trade and investment data for years 2010 -2014. U.S. exports to the 22 Arab countries for Year 2014 amounted to $71.4 billion and accounted for 4.4% of total U.S. exports to the rest of the world which stood at $1.6 trillion. U.S. imports (mostly oil and gas) from the Arab countries stood at $88.2 billion and amounted to 3.7% of total U.S. imports from rest of the world. The six Gulf Cooperation Council countries accounted for 70.4% of total U.S. exports to Arab countries and 74.8% of its total imports. Free trade agreements had limited impact on economic cooperation between United States and Arab countries. All signatories were among U.S. small Arab trading partners.