As a small yet economically ambitious country, the United Arab Emirates strategically engages in regional trade alliances to augment its influence and safeguard the dominance of non-oil foreign commerce that propels continued national growth and prosperity.
Key Bloc Participation:
- Founding member of the Gulf Cooperation Council in 1981 which creates a frontier-less market by eliminating tariffs and quotas across GCC partners
- Recent FTA with India anticipated to accelerate two-way merchandise and project investment flows to new heights surpassing current levels
- Participation in ongoing discussions for a prospective agreement linking MENA states could broaden UAE’s footprint and participation in global supply chains.
Example:
The Dubai Multi-Commodities Centre played an active role stimulating GCC neighbor small companies to leverage the emirate’s logistical and transportation infrastructure through strategic regional HQ placements.
Takeaways:
While trade blocs significantly boost the UAE’s status as a vital conduit of global trade, over-reliance on narrow partnerships risks complacency – diversification into novel alliances safeguards long-term competitiveness demands adaptation.
