In a world where economic operators and countries, or groups of countries, are trying to maximize the benefits of globalisation, it is only logical that the same players are looking for strategic alliances capable to secure access to needed commodities, mineral resources, etc.
Some, because of limited or no fossil fuel resources at all at home, remain — despite their industries and energy-markets switching to clean, renewable energy-sources and environment-friendly energy-saving technologies — critically dependent on imports of oil and natural gas.
Others vigorously seek long-term guarantees in terms of food supplies and access to vast water resources for reasons of a harsh climate. This is despite the successful application of state-of-the-art technology and irrigation techniques to create self-sufficient cultivation at a reasonable cost.
Trade agreements
It is because of increased economic interdependence between states and countries that it is not uncommon for sheep slaughtered during the Eid Al Adha celebrations in Bahrain or Saudi Arabia are imported from a farm in Australia or New-Zealand which is owned by a company or investment group from Qatar.
The game of securing-the-much-needed is — provided the parties subject to shortages or prone to disruptions in supply are able to reach sound and reciprocal trade agreements with those who can trade those goods — expected to grow. This delivers a window of opportunity in a mutually beneficial way.
The EU and the GCC are both acknowledged as global players with enormous economic and financial weight and growing political influence in an ever more globalised economy. But while the imperatives for a close and strong relationship are clear, reality suggests that both blocs are growing apart instead of coming together on a more institutionalised basis.
Commercial relationship
It is due to results remaining far below expectations as well as the suspension of negotiations for a EU-GCC Free Trade Agreement.
The commercial relationship established under the EU-GCC Co-operation Agreement needs to be re-examined, clarifying the opportunities and defining the limitations for the EU in the most advanced and resourceful sub-region of the Arab world.
The ascent of the GCC states in an ever more interdependent, globalised economy should not to be underestimated. Petro-dollars are strategically finding their way around, and it is quite likely that cross-border investment decisions made in Riyadh, Abu Dhabi, Doha or Kuwait City over the direction of Gulf funds can have an effect on other economies and currencies, including of the EU.
Public and private investors from the Gulf have been re-orienting gradually away from the US and focusing on Asia and Europe. Most EU and GCC nationals are not sufficiently, if at all, aware that both have similarities in their projects of integration and a rising degree of economic and financial interdependence.
The writer is an analyst on GCC-EU relations based in Brussels.
