Swift changes are taking place in relationships between countries which requires them to restructure their economic, political and security alliances. These, in turn, have led to significant changes in the global balance of power and created a new dynamic, reflected in the structures within recently created blocs.
The economy occupies the core of this shared interests as future conflicts will be economic in nature and success in this field will determine gains in others, including the political and military. Since the UAE and GCC are emerging markets with a greater role to play in global economy, they are required to work on two parallel approaches to occupy an advantageous position to defend their interests.
The first lies in enhancing Gulf-wide integration and completion of a common market, while the second requires a restructuring of relations to better suit new global power equations.
Making use of the Chinese experience in strengthening ties and creating shared economic interests with other countries, principally those in Africa, is crucial. China has achieved several economic and strategic breakthroughs in Africa.
This began with the announcement of the Africa-China forum in 2000, which stepped up the volume of trade by 16 times to more than $170 billion in 2012.
Chinese investments in Africa were up 60 per cent last year to reach nearly $15 billion. China also plans to double loans to African countries to $20 billion to support works in infrastructure, agriculture, and small and medium industrial companies. There are more than 2,000 Chinese companies operating in Africa.
What explains the interest in Africa? This is an important question because Africa is the continent of the future, especially in natural resources much needed by the world such as oil, gas, uranium, agricultural commodities and water sources.
Western companies are trying to enter the continent through Chinese companies stationed there, despite the fact that much of Africa were former colonies of European countries such as France, Britain, Italy, Belgium and Portugal, as reported by the French newspaper Le Monde.
Some of the emerging markets are also trying to benefit from this experience, especially the GCC, which has had historic, economic, cultural and strategic ties with African countries. Arab and Islamic culture constitute an integral part of the African community’s fabric.
Dubai’s trade with Africa has increased by 700 per cent over the past decade to $25 billion. An ideal start to further this trend is through cooperation in areas such as trade and transport infrastructure.
Direct flights between Abu Dhabi and Dubai and the capitals and cities of Africa — unparalleled in the Gulf — have provided for rapid development not just in passenger traffic but cargo volumes as well, which in turn has also boosted re-exports.
We can point to the role played by Emirates airline through its network connections between Dubai and the largest cities of South Africa. Trade exchange between the two parties over the past year has risen to Dh8.2 billion. The relative importance of South Africa is expected to increase in the UAE’s foreign trade.
Enhancing UAE-Africa cooperation is expected to contribute to reviving many of the non-oil economic sectors in the former. On their part, many African countries possess metals and rare natural resources. Many Chinese industries with a global footprint rely on raw materials imported from Africa.
Similarly, industries in the Gulf could be developed using raw materials from Africa, while the vast agricultural lands there that can be cultivated to contribute to the Gulf’s food security through investments.
There could be some obstacles that must be overcome for ties to reach such a level. For instance, China’s methods to make use of Africa’s mineral wealth and agricultural potential was met with caution from the African side.
Also hindering investment in Africa, particularly in manufacturing and advanced technologies, were the legislative and legal shortcomings and the widespread corruption witnessed in many African countries. However the African continent will occupy an important position because of its inherent wealth it enjoys, many of which are strategic in nature and untapped so far.
In addition, such an approach will significantly support the fast-growing air transport sector in the GCC countries by linking African countries to the rest of the world, especially in Asia. Many of the Asian economies are expected to outpace their developed counterparts in the next three decades.
This means the necessity to reshape international relations whereby Gulf-African ties occupy a position which allows both to take advantage of change. To give this trend a comprehensive strategic dimension, there is the need to perhaps form a base for an integrated Gulf project in cooperation with Africa.
In such a project, African countries may benefit from the location and developed infrastructure enjoyed by the UAE to develop their economic relations with the rest of the world. This could also take the form of organising a periodical Gulf-Africa forum that can be adopted by the Federation of UAE Chambers of Commerce and Industry in the country or the GCC general secretariat.
— The writer is a specialist on economic and social development in the UAE and the GCC.
