{"id":10215,"date":"2024-07-03T13:31:10","date_gmt":"2024-07-03T10:31:10","guid":{"rendered":"https:\/\/arab-digital-economy.org\/?p=10215"},"modified":"2025-11-26T08:44:18","modified_gmt":"2025-11-26T05:44:18","slug":"calling-for-an-arab-african-partnership","status":"publish","type":"post","link":"https:\/\/arab-digital-economy.org\/?p=10215&lang=en","title":{"rendered":"Calling for an Arab-African partnership"},"content":{"rendered":"

Abu Dhabi<\/p>\n

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Source: Mufakiru Alemarat<\/span><\/p>\n

Prof Dr. Ali Mohammed Al Khouri<\/span><\/p>\n

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In an era characterized by increasing globalization and the need for economic integration, the possibilities of establishing an Arab-African economic partnership are considered a strategic necessity. Achieving economic integration between Arab countries and Africa requires the establishment of a common market that guarantees freedom of trade in goods, exchange of services, and the flow of capital. This, in turn, requires a realistic and progressive strategy to achieve this goal, and explore trade and investment opportunities in areas of cooperation and mutual benefit. Arab countries can benefit from their geographical, cultural, and political proximity to non-Arab African countries. To support integration; Achieving more stable levels of growth, especially since the historical heritage among the Arabs gives both parties a preferential advantage compared to other global regions.<\/p>\n

Integration prospects<\/p>\n

Africa is one of the largest regions in the world that attracts foreign investments, with annual investment growth of about 11 percent in the past ten years. Arab countries must benefit from the current global situation and cooperate with African countries to draw a road map for integration in many economic fields. To achieve sustainable growth in the two regions. While Arab countries seek to diversify their investment markets; The African Continental Agreement requires investment and financing to achieve its desired goals. This can be achieved as Arab investments move towards diversifying financial portfolios, especially in sectors such as agriculture, infrastructure, technology, the port development sector, and transportation.<\/p>\n

The implementation of the African Continental Free Trade Area Agreement will also create an integrated African market with steady growth in demand; With the continental move towards greater integration; This will provide Arab countries with greater opportunities to increase non-oil exports to African markets.<\/p>\n

The future of intra-regional trade<\/p>\n

Based on the above, it can be said that opportunities are available for the growth of intra-Arab-African trade, especially if both parties benefit from current bilateral trade relations. To be a starting point for expanding economic relations in the future; African exports to Arab countries have reached stable growth rates over the past decade, at 8 percent annually. On the other hand, Arab exports to African countries have witnessed volatile growth rates in the past decades. However, it was distinguished by its diversity compared to other Arab exports to the rest of the world.<\/p>\n

Gulf investments in Africa<\/p>\n

The Gulf Cooperation Council countries have investment bases in Africa, valued at approximately $101.9 billion, in 628 projects, in the last ten years between 2012 and 2022. The United Arab Emirates is among the largest investors in Africa. The Abu Dhabi Fund for Development has invested about $16.6 billion in 66 projects in 28 African countries. The Kingdom of Saudi Arabia decided to shift investment to Africa. Announcing an investment worth $40 billion to develop partnerships with African countries; Enhancing trade and achieving integration with Africa.<\/p>\n

Expectations of growth in trade volume<\/p>\n

African exports to Arab countries can be increased; If African countries are able to diversify, they can achieve this by increasing exports to the Arab region and maintaining the high growth rates they witnessed in the past decade. This will pave the way for Arab countries to receive African exports, especially agricultural and food products, a sector that represents strategic importance for maintaining food security in the region. Increasing exports of non-oil and mineral products from the continent will increase economic growth rates. Therefore, the close relationship between the two regions can be strengthened to achieve mutual benefit and win-win results.<\/p>\n

Arab exports to Africa can also be increased by determining the type of exports that are most in demand. This will help reduce Arab countries\u2019 dependence on energy and mineral exports, move towards greater diversification, expand their export base, reduce the risks of external shocks, and enhance economic stability.<\/p>\n

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Obstacles to implementing integration<\/p>\n

Despite the opportunities available in the African market, which are an incentive for Arab entrepreneurs to increase their investments in it; Some obstacles stand in the way of these investment expansions. African countries still need to implement a number of policies and procedures that support attracting new investments, including strengthening legislative and legal frameworks to regulate basic economic sectors, developing the infrastructure necessary for business growth, confronting bureaucracy, and creating clear business structures that guarantee the provision of economic foundations and the necessary infrastructure for projects. new developments in these countries, attracting more foreign investments.<\/p>\n

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Call to decision makers<\/p>\n

To achieve the greatest benefit from the available opportunities and reach trade integration, decision makers should integrate the major Arab free trade agreements and continental free trade in Africa. In order to create a comprehensive free trade agreement, linking Arab and African countries, and supporting access to markets in the two regions, these agreements must focus on facilitating the movement of trade, removing barriers and non-tariff measures, increasing transparency, and improving coordination regarding non-tariff administrative procedures and requirements, And adjusting high non-customs duties. Solutions to trade obstacles on the continent must also be discussed, such as the challenges of banking systems, shipping lines, direct aviation, mechanisms for increasing investments and production capacity, and exploring export opportunities available in the two regions.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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