In the ever-evolving landscape of international diplomacy and cooperation, the relationships between the United Arab Emirates (UAE), Europe, and Türkiye serve as exemplary models of collaboration, innovation, and mutual prosperity.
Rooted in historical ties and fortified by strategic interests, these alliances have not only shaped regional dynamics but also reverberated across the global stage, fostering robust economic partnerships, cultural exchanges, and diplomatic dialogues.
Historical Ties with Europe:
The European Union (EU) and the UAE have woven a diplomatic relationship marked by shared political objectives and regional aspirations. Dating back to the 1988 EU-Gulf Cooperation Council (GCC) Cooperation Agreement, this alliance laid the groundwork for a region-to-region relationship that encompasses the GCC countries.
The UAE’s proactive measures to diversify its economy beyond oil have paved the way for groundbreaking opportunities in EU-UAE bilateral trade and investment in areas such as digitalization, advanced technologies, renewable energy and energy efficiency, healthcare, education, sustainable economic transition, space technologies and food security.
The surge in bilateral trade to €49 billion (AED 196 billion) in 2022, this represents a remarkable 27% increase over the previous year, solidifying the EU’s position as the UAE’s second-largest trade partner, underscoring the resilience and dynamism of their economic agreements.
Strategic Partnership with Germany
In 2023, bilateral economic relations between the UAE and Germany flourished, marking another exceptional year of growth. Non-oil trade surged to $12.7 billion (AED 47 billion), a significant leap from $9.8 billion (AED 36 billion) in 2022. During a recent visit last month by the UAE’s Minister of Foreign Affairs to Germany, discussions centered on enhancing cooperation across various fields to serve the common interests of both nations.
Machinery and equipment emerged as the UAE’s second-largest imports from Germany. Concurrently, aluminum products constitute the primary exports from the UAE to Germany. The presence of 335 German companies prospering in the UAE and 37 UAE companies thriving in Germany, the strength of the trade relationship is unmistakable.
Expanding Relations with Italy:
Recent enhancements in Emirati-Italian relations extend beyond energy, showcasing Italy’s recognition of the importance of strengthening ties with the Arab Gulf States.
Italy trades extensively with the UAE, with over 600 Italian firms operating across diverse sectors in the Emirates, including energy, defense, textiles, and fashion. Notably, the bilateral trade volume between the two countries surged to €7 billion (AED 28 billion) in the initial 10 months of 2023, marking a significant 6% yearly increase.
Italy stands as the UAE’s second-largest supplier among the EU nations, underlining the strength of their trade ties. Looking ahead, the partnership is set to expand into innovative fields such as space and technology, capitalizing on Italy’s existing programs to benefit the UAE’s flourishing technology sector.
Bolstering Ties with France:
The UAE-France High-Level Business Council convened its second plenary meeting in Paris this year, aiming to strengthen strategic ties between the two nations. The signing of the “UAE-France Bilateral Climate Investment Platform” signifies a new chapter of sustainable economic development. Non-oil trade between the UAE and France surged to AED 25.1 billion during the first nine months of 2023, marking a 12.5% increase from the previous year. This upward trajectory in trade figures reflects the economic vibrancy shared between the two nations.
Netherlands Partnership:
The UAE’s economic ties with the Netherlands continue to thrive, with the inauguration of the fourth European representative office in Amsterdam last year. Bilateral non-oil trade between the UAE and the Netherlands amounted to $3.1 billion (AED 11.2 billion) in the first half of 2023. This move underscores the UAE’s commitment to fostering economic collaboration, particularly in agriculture, renewable energy, and water sectors, identified as pivotal drivers of UAE-Dutch trade growth.
Emerging Role of Turkey:
Turkey emerges as a key player, bridging continents and cultures with its strategic location. Witnessing continuous development across vital sectors, the relations between the UAE and Turkey characterize a shared commitment to regional stability and prosperity. Major agreements announced at UAE-Turkey Business Forum last year aim to forge commercial partnerships and establish joint ventures in various fields such as construction and development, infrastructure, energy and hospitality.
Charting a Course Forward:
Bilateral relations between nations exemplify the transformative power of diplomacy, trade, and cultural exchange in shaping a more inclusive and prosperous world. As we embrace the opportunities and challenges of globalization, nurturing these partnerships will be essential in building a more interconnected and prosperous future.
March 8, 2024
Written by Genan Wishah
