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Mid East Info
a day ago
- Business
- Mid East Info
US$6.4 Trillion Shortfall Spurs Call for Deeper South-South Cooperation at Global South Economic Forum - Middle East Business News and Information
The UAE's Comprehensive Economic Partnership Agreements CEPAs are ideal examples of South-South cooperation that is helping UAE to increase its trade with its partners. Thanks to CEPAs, the UAE recorded a 49 percent jump in its total foreign trade reaching Dh5.23 trillion US$1.42 trillion in 2024, compared to Dh3.5 trillion US$949 billion in 2021, according to the World Trade Organisation WTO. The development financing gap for the Global South could surge to US$6.4 trillion by 2030, according to a recent report published by OECD, underscoring the urgent need for deeper cooperation among developing economies. This call to action was a key message from government leaders and experts convening at the inaugural edition of Global South Economic Forum GSEF, held at Anwar Gargash Diplomatic Academy (AGDA) in Abu Dhabi. As globalisation gives way to a new, multipolar world order, the forum emphasized the growing importance of South-South cooperation in accelerating trade, investment, and strategic partnerships across the developing world through its five thematic sessions. In his Key Note address, His Excellency Ahmed Al Sayegh, Minister of State, Economic and Trade Affairs, Ministry of Foreign Affairs, UAE, said, 'The nations of the Global South are no longer peripheral in global economic affairs. They are central to shaping the agenda, contributing to ideas and advancing frameworks for equitable cooperation. Collectively, these nations are helping recalibrate partnerships and offering pragmatic solutions rooted in shared ambition and mutual respect.' The UAE, he said, believes that the voices, values, and visions of the Global South are indispensable to shaping a more inclusive and balanced international system. 'The Global South today holds unmatched potential as engines of growth and innovation, as stewards of critical resources and cultural heritage and as advocates for a more just and resilient global economy,' he said. 'To realise this potential, we ought to work together to harness emerging technologies including artificial intelligence, clean energy and digital finance, for sustainable development; deepen economic integration through trade corridors, smart infrastructure and investment facilitation; reclaim global narratives toward inclusivity and strengthen South-South and equally important South-North partnerships based on mutual respect, shared opportunity and strategic autonomy,' the Minister said. He further stated, the UAE is proud to contribute to the Global South vision in various ways, including its outward-looking economic diplomacy. 'Whether through investments in clean energy, digital connectivity, food security or development financing, we remain committed to enabling pathways for shared prosperity,' he said, adding, 'As a nation at the crossroads of continent and cultures, the UAE sees its role not only as a bridge but also as a collaborator and catalyst for cooperation that transcends geography,' H.E. Ahmed Al Sayegh added. The UAE's Comprehensive Economic Partnership Agreements (CEPAs) are a leading example of South-South cooperation in action. As a result of these agreements, the UAE's total foreign trade surged by 49 percent, reaching Dh5.23 trillion (US$1.42 trillion) in 2024, up from Dh3.5 trillion (US$949 billion) in 2021, according to the World Trade Organization WTO. Nickolay E. Mladenov, Director General of AGDA, said: 'Through the CEPAs, the UAE is sought to build bridges at a time when others build walls. We hope that the Global South Economic Forum is part of that process of openness, building bridges and allowing countries and thought leaders to align together around ideas for the future ahead of us.' According to a recent Boston Consulting Group BCG report, Global South is becoming a powerhouse of economic growth. Excluding China, the bloc of 133 nations accounts for roughly 18 percent of global GDP. Including China, that share rises to 40 percent – and represents 65 percent of the global population. The combined GDP of these nations is projected to grow by 4.2 percent annually through 2029, more than double the 1.9 percent expected for advanced economies. Trade within the Global South is also rising, with South-South trade projected to grow at a CAGR of 3.8 percent through 2033, compared to 2.2 percent for North-North trade. By 2033, Global South trade could reach US$14 trillion annually. However, the OECD's Global Outlook on Financing Sustainable Development 2025 paints a stark picture. While external finance to developing nations reached US$5.24 trillion in 2022, it still falls short of the US$9.24 trillion required annually to meet the UN 2030 Agenda. The financing gap has widened due to climate change, geopolitical tensions, and slower-than-needed increases in available resources. 'Between 2015 and 2022, financing needs rose 36 percent, while actual resource flows increased by just 22 percent – leaving a 60 percent shortfall,' the OECD warned. Without structural reform, this gap could hit US$6.4 trillion by 2030. Global South Economic Forum GSEF 2025, convened by the Centre of Geoeconomics for the Global South (COGGS) in collaboration with AGDA, Emirates Centre for Strategic Studies and Research (ECSSR), and China's Academy of Contemporary China and World Studies (ACCWS), brought together over 100 delegates – several senior government officials and members of the diplomatic corps in UAE. The forum aims to shape dialogue on geoeconomic challenges, promote regional integration and technology adoption, and enhance collective frameworks for reshaping global economic governance. The Bureau of Research on Industries and Economic Fundamentals has facilitated the presence of the Indian delegation at the forum. Mohammed Saqib, an Economist and Convenor of COGGS, remarked: 'The world is on the cusp of a new economic order. Global South is emerging as a driving force in shaping global systems, and our collective voice is gaining strength in a multipolar world. We are committed to building equitable economic frameworks.' The forum also addressed investment trends. According to the World Investment Report 2024, FDI flows to developing countries declined by 7 percent to US$867 billion, driven largely by an 8 percent drop in developing Asia. Despite over 1,000 new greenfield project announcements in developing countries, most were concentrated in Southeast Asia and West Asia, with Africa and Latin America seeing limited activity. 'GSEF wasn't an echo chamber of ideas – the forum is a crucible of tested wisdom, where real-world experience met real-time challenges. Far from exclusive, GSEF thrives on inclusion, bringing diverse voices to the same table to shape a tomorrow that's moving in many directions,' Ayanangsha Maitra, co-ordinator of GSEF, remarked. About Global South Economic Forum GSEF: Global South Economic Forum (GSEF) is a forum convening ministers, former heads of state from Global South nations. Inaugurated by a ministerial session, the forum is hosted at the Anwar Gargash Diplomatic Academy (AGDA), Abu Dhabi, a globally recognized institution frequented by world leaders and diplomats. GSEF is positioned as a solution-offering platform for the Global South, addressing unfulfilled promises of traditional elite forums. The Forum emphasizes economic resilience, sustainable finance, technological innovation, and inclusive growth for Global South nations. The expert discussants will prescribe actionable solutions to real-world challenges facing the Global South. The Forum aims to secure the interests of Global South nations, with a narrative of empowerment and transformation of institutions and organisations in the age of multi-polarity. About Centre of Geoeconomics for the Global South COGGS: Centre of Geoeconomics for the Global South (COGGS) is bringing together Global South countries with a focus on economics, but its vision extends to broader development, resilience, and economic as well as social collaboration. COGGS is committed to publishing research papers in partnerships with prestigious partner organisations worldwide, including the UAE, Argentina, Egypt, India, and Indonesia.
Al Etihad
2 days ago
- Business
- Al Etihad
S&P Global maintains UAE credit ratings
19 June 2025 00:23 MAYS IBRAHIM (ABU DHABI)S&P Global Ratings has assigned the UAE a sovereign credit rating of 'AA' for long-term, and 'A-1+' for short-term foreign and local currency obligations, with a stable report cited the county's solid fiscal and external positions, prudent policymaking and resilient economic headwinds from lower oil prices and a global economic slowdown, S&P forecasts that the UAE's economy will remain resilient, growing at an average rate of about 4% annually between 2025 and will be driven primarily by buoyant non-oil sector activity, public investment, and a measured increase in oil production as OPEC+ quotas ease. S&P also projects the UAE's consolidated fiscal surpluses will average 3.2% of GDP over the forecast period, assuming Brent oil prices of $60 per barrel (bbl) in 2025 and $65/bbl through 2028. The country's consolidated net asset position is expected to rise to an estimated 177% of GDP through 2028, supported by continued fiscal surpluses and investment income on liquid assets. "The exceptional strength of the government's consolidated net asset position provides a buffer to counteract the effects of oil price swings and geopolitical tensions in the Gulf region on economic growth, government revenue, and the external account," S&P debt will remain stable at about 28% of GDP, as the federal government and individual emirates such as Abu Dhabi plan local currency debt issuances to develop domestic capital growth will be underpinned by public investment, economic diversification efforts, and increasing trade and foreign investment. The report cited major projects set to boost tourism revenue streams, such as the Saadiyat cultural district and Disney Park in Abu Dhabi, and the Wynn integrated resort in Ras Al UAE's Comprehensive Economic Partnership Agreements (CEPAs) with 27 trade partners should cushion the impact of higher global trade tariffs, to some extent, according to S& added that the potential impact on the UAE from the proposed 50% US tariff on steel and aluminum will only be modest if no agreement is reached. The UAE exported around $1.4 billion (0.3% of GDP) worth of steel and aluminum products to the US in 2023 – only 4.3% of its total non-oil exports. S&P also highlighted structural measures introduced by the UAE to improve its business environment. These include a foreign direct investment law that permits foreign investors to fully own businesses in various sectors, liberalised personal and family law, and the Golden Visa Programme, which "supports talent retention by granting long-term residency to investors, entrepreneurs, and skilled professionals.""We anticipate that these measures will increase labour market flexibility, investment, and foreign worker inflows. This will be balanced by the nationalisation of the workforce, or 'Emiratisation' policies," it stated. The sharp escalation of the Israel-Iran conflict presents potential risks to GCC sovereigns. However, S&P believes the UAE's substantial assets and record of domestic stability mitigate vulnerabilities to external shocks. "The Abu Dhabi Crude Oil Pipeline has the capacity to deliver about 50% of the emirate's oil exports directly to the Fujairah terminal on the Indian Ocean, diversifying its shipping routes. Through CEPAs, the UAE is also securing alternative trade routes to the Red Sea," it explained.
Gulf Insider
2 days ago
- Business
- Gulf Insider
UAE Ranked 5th in Global Competitiveness Ranking
The UAE has ranked in fifth place in a global competitiveness ranking, outperforming major economies including the US, Sweden, and Germany. The achievement was reviewed at a meeting of the UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, at Qasr Al Watan in Abu Dhabi. During the meeting, Sheikh Mohammed confirmed that over 1,830 UAE citizens received housing support in the first half of 2025, with grants exceeding AED1.25bn ($340.4m), to reinforce family stability and ensure decent living standards. Sheikh Mohammed said: 'I chaired a Cabinet meeting at Qasr Al Watan in Abu Dhabi, where we reviewed the UAE's performance in the 2025 IMD World Competitiveness Ranking. The UAE ranked fifth globally, alongside the world's leading countries in economic competitiveness, government efficiency, legislative strength, and business environment excellence. 'Fourteen years ago, we established a competitiveness centre, uniting the efforts of key national entities. These efforts have elevated the UAE's ranking from 28th globally in 2009 to being among the top five globally in competitiveness. 'In the same report, the UAE ranked first globally in the absence of bureaucracy index, second globally in government policies adaptability index, and fourth globally in government efficiency index. 'This achievement is a testament to years of consistent effort. With the vision of my brother, Mohamed bin Zayed, our future will continue to be even brighter and stronger.' The UAE led globally in 22 indicators including employment rate, availability of global expertise, digital company transformation, and female parliamentary representation. The UAE also ranked second globally in social cohesion, flexibility of residency laws, and government policy adaptability, while securing third globally in graduates in sciences, leverage of digital tools and technology, and healthcare infrastructure. The Cabinet also reviewed the 2024 report of the Higher Commission for Free Trade Negotiations, confirming the signing of 27 Comprehensive Economic Partnership Agreements (CEPAs), of which eight have come into force. This has helped the UAE achieve: AED5.23tn ($1.42tn) in total foreign trade (2024) AED440bn ($119.9bn) in non-oil exports (up 16.3 per cent YoY) AED684.3bn ($186.4bn) in re-exports AED113bn ($30.8bn) in foreign direct investment in 2023 The UAE Cabinet also reviewed the Emirates Council for Balanced Development, chaired by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes' Affairs. Highlights include completed and ongoing projects in Qidfa, Masfout, and Al Rams. These include community spaces, markets, ecotourism initiatives, and the 'Jothoor' programme empowering female Emirati artisans. The Cabinet also reviewed the success of the Digital Identity system, now used by more than 11m citizens and residents, enabling 600 million secure logins and facilitating 2.6bn digital transactions. New federal initiatives approved by the Cabinet include: National Maritime Navigation Centre to oversee vessel tracking, marine safety, and environmental protection Restructuring of the Higher Committee for Anti-Money Laundering and Countering Terrorism Financing, chaired by Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs A draft law to safeguard UAE cultural heritage and enhance public awareness The United Arab Emirates Council for Climate Action was also restructured to accelerate the Net Zero 2050 strategy, with the UAE expanding protected areas (18 per cent mainland, 12 per cent marine) and adding nine new biodiversity hotspots, alongside a plan to plant 100 million mangrove trees by 2030. Special attention to the fourth edition of the Make it in the Emirates platform, which in 2025 attracted more than 122,000 visitors and facilitated: AED168bn ($45.7bn) in potential procurement deals for local manufacturing AED11bn ($3bn) in new industrial project agreements AED40 billion ($10.9 billion) in SME financing over five years Furthermore, the Cabinet ratified 13 international agreements, including economic and visa deals with Montenegro, Vietnam, Uganda, and New Zealand. Approval was also granted for: 36 new MOUs and agreements, including with Hong Kong and the Eurasian Economic Union Establishing UAE embassies in Togo, Gabon, Cameroon, and Tajikistan, and a Consulate General in Miami, USA UAE participation in 13 global events and hosting of key summits like the Central Banks Data Cooperation Group Also read: UAE Offers Corporate Tax Fine Waiver — but Deadline Looms
Mid East Info
13-06-2025
- Business
- Mid East Info
Dubai Chamber of Commerce and Ministry of Economy host workshop on benefits of CEPA for Business Councils
• Maha Al Gergawi: 'We are committed to supporting and empowering members of the business councils to benefit from promising investment opportunities, thereby enhancing the private sector's ability to grow and expand both locally and globally.' Dubai, UAE – Dubai Chamber of Commerce, one of the three chambers operating under the umbrella of Dubai Chambers, has successfully organised a workshop in collaboration with the Ministry of Economy to familiarise members of the Business Councils operating under the chamber with the provisions and benefits of the Comprehensive Economic Partnership Agreements (CEPAs) signed by the UAE. The workshop, which brought together leaders and members of Business Councils, highlighted the strategic role of CEPA agreements in unlocking new trade and investment opportunities for Dubai's private sector. Discussions explored how these agreements open up broader avenues for the exchange of goods and services, while also enhancing export and re-export prospects. Participants gained valuable insights into the practical benefits of CEPAs for companies across a range of sectors, and how these agreements can support long-term business growth and international expansion. The workshop reviewed key provisions of the agreements and their role in reinforcing the UAE's position as a leading gateway for global trade and logistics. It also introduced participants to the benefits of CEPAs, including improved access to international markets, reduction or elimination of customs duties, streamlined customs procedures, and the establishment of clear and transparent regulations. In addition, the agreements are designed to promote fair competition and trade-based growth. Commenting on the workshop, Maha Al Gergawi, Vice President of Business Advocacy at Dubai Chambers, said: 'We are committed to supporting and empowering the members of Business Councils to benefit from promising investment opportunities that enhance the private sector's ability to grow and expand both locally and globally. This initiative forms part of our ongoing efforts to raise awareness among the business community on the importance and strategic value of CEPA agreements, which serve as a key driver for increasing the competitiveness of the national economy and advancing cross-border trade and investments.' The country-specific Business Councils operating under the umbrella of Dubai Chamber of Commerce work in close collaboration with the chamber to stimulate bilateral trade and investment. They facilitate stronger connections between Dubai-based companies and businesses from the markets represented, with the goal of strengthening strategic economic partnerships.
Hi Dubai
12-06-2025
- Business
- Hi Dubai
Dubai Chamber of Commerce Hosts Workshop to Highlight CEPA Benefits for Business Councils
Dubai Chamber of Commerce has partnered with the Ministry of Economy to host a workshop aimed at equipping Business Council members with insights into the UAE's Comprehensive Economic Partnership Agreements (CEPAs), which are designed to boost trade and investment. Held under the umbrella of Dubai Chambers, the session brought together leaders and representatives from various Business Councils to explore how CEPAs can open new international opportunities for companies based in Dubai. The workshop focused on how these agreements enhance market access, cut customs duties, and streamline trade procedures. Participants were briefed on the practical advantages CEPAs offer across sectors, including increased export and re-export potential and support for long-term global expansion. The agreements also reinforce the UAE's position as a key gateway for global trade, backed by transparent regulations and fair competition. Maha Al Gergawi, Vice President of Business Advocacy at Dubai Chambers, emphasized the chamber's commitment to empowering the private sector through awareness initiatives. 'This initiative forms part of our ongoing efforts to raise awareness among the business community on the importance and strategic value of CEPA agreements,' she said. The Business Councils, which operate under the Dubai Chamber of Commerce, play a vital role in promoting bilateral trade and investment. By fostering ties between local companies and international markets, they help build strategic economic partnerships that align with the UAE's broader economic diversification goals. News Source: Dubai Media Office
