Thursday, 25 May 2023

Analysis: #UAE steps up pace of solo trade deals in regional economic race | Reuters

Analysis: UAE steps up pace of solo trade deals in regional economic race | Reuters

The United Arab Emirates is increasingly pursuing bilateral trade deals outside of the Saudi-headquartered regional Gulf Cooperation Council (GCC), as competition with Riyadh intensifies for economic dominance in the oil-rich region.

Since 2021, the UAE has initiated a raft of trade, investment and cooperation deals on it own - called Comprehensive Economic Partnership Agreements (CEPAs) - bypassing the GCC, a customs union, common market and negotiating bloc.

Abu Dhabi and Riyadh are both accelerating their post-oil economy plans to reduce their dependence on fossil fuels, but the UAE has first mover advantage over its bigger neighbour as the Middle East's existing business and tourism hub. Building on its existing trade infrastructure, it now wants to become a global supply chain leader.

The GCC has concurrently stepped up its game, holding new rounds of Free Trade Agreement (FTA) talks with major trading partners including China, South Korea, and post-Brexit Britain. The GCC Secretariat also appointed a lead trade negotiator in 2022.

Gulf affairs specialist at Waseda University, Abdullah Baabood, said the UAE's unilateral trade push indicates some members are not necessarily happy with the way the GCC handles FTA negotiations.

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