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China that ranked first in the foreign trade of UAE and some other GCC countries five years ago still occupy the same position.
Economic and commercial relations between the Gulf and Asian countries witnessed major changes in the last five years owing to economic, political and strategic reasons. Among these reasons is the rapid growth witnessed by both the GCC and Asian countries, deepening mutual dependence.
This coincided with complicated restrictions imposed by the US and Europe on economic relations with GCC countries, especially after 9/11.
Unfair restraints were also enforced on Gulf investments in the West. In return, additional opportunities were created in Asia's evolving economies where Gulf investments headed in the last few years, backed by increasing mutual interests and benefits.
The European Union is still delaying the signing of Free Trade Treaty (FTT) with GCC countries, despite the efforts done on the part of these countries to meet European conditions, such as the Unified Customs Tariff.
Three years ago, I mentioned the possibility of Europe losing its distinguished commercial position in GCC countries, if the FTT is further postponed. Europe is trying its best to avoid signing the treaty to maintain custom tariffs on its aluminium and petrochemical exports to the Gulf, and to protect its Eastern European imports from competing with UAE products in international markets.
Europe will be the loser if its economic relations with GCC countries are put at risk. Twenty years ago, Asian countries did not have the ability to produce and export developed technology and commodities. Furthermore, its capacity to accommodate foreign investments was limited because of its backward legislative and organisational capacity. But this is a thing of the past.
Today, Asia is a strong competitor to both the US and Europe in attracting capital and foreign investments after liberalising its economies from restraints that stood against the growth of its markets in the past. The US and European market orientations today, are dominated by irrelevant political and ideological issues, irrelevant to economic relations and international commercial interests.
The international economic, commercial and investment map has changed fundamentally during the last two decades, leading to diverse and more profitable options. In the past, there was no safe place for major investments outside the US and Europe. Today, locations around Asia and Latin America offer a profitable and technically advanced substitute.
The US is worried about its national security, and as a result, it is suspicious of Gulf investments, which is invalid and unrealistic. Europe, on the other hand, is not as obsessed by security issues as the US, but at times it succumbs to US pressures, and acts in the same manner.
Gulf countries have proven through the last 50 years that their foreign investments are done purely on business terms. Political considerations are not taken into consideration. The West is fully aware of this fact due to its long business experience with Gulf countries. However, there are considerations related to fundamental ideologies that mess up commercial relations around the world.
The Gulf is heading eastwards in its economic and investment relations. The East in return is increasingly depending on the Gulf region, as an energy supplier. The West has to take these facts into consideration. The West must also maintain its joint interests and historic economic and trade relations with Gulf countries, based on the dialogue of civilisations, advocated by the region's countries.
The writer is a UAE economic expert.
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