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The UAE believes trade corridor projects can complement each other

The National

28-04-2025

Business
The National

The UAE believes trade corridor projects can complement each other

When I took part in the Delphi Economic Forum in Greece this month, discussions centred on the prerequisites for transformative corridor projects in the Middle East, such as the India-Middle East-Europe Economic Corridor, the Belt and Road Initiative and the Iraq Development Road. Security, political stability and an end to wars emerged as essential conditions. However, critical questions were raised at the forum. Do these major projects clash with each other, or can they be complementary? Can trust-building among political actors bridge gaps and strengthen incentives for co-operation? And does US President Donald Trump have enough commitment to support, follow up and accelerate the launch of Imec? Mohammed Baharoon, director general of the Dubai Policy Research Centre, and I represented the UAE in a session on Mediterranean-Gulf connectivity and the added value of corridor projects in deepening this connectivity. Our engagement highlighted how current geopolitical challenges have reshaped the momentum and feasibility of such initiatives, including Imec. In general, the tragic war in Gaza has stalled the project's momentum, as envisioned at its launch during the G20 Summit in New Delhi in September 2023. This war and the significant regional shifts since October 7 that year highlight the need for a reassessment to broaden participation in Imec and other such transformative mega projects. Improved Syrian-Iraqi relations could represent a significant step towards better integration of the two countries – as well as Lebanon, and perhaps even Gaza – into these corridors. Imec gives economic diplomacy a more influential role in shaping the prospects of international relations, directing priorities and resources towards greater co-operation and economic interests rather than conflict. However, geopolitics is far from absent. The Gaza war and the resulting escalation between Israel and Iran, for example, were clear evidence of this. Instability also derails progress: the China-Pakistan Economic Corridor, for instance, faltered largely due to political and social instability in Pakistan. Among the challenges this project faces is the question of who will fund the tens of billions of dollars needed to improve existing infrastructure and address gaps remains unanswered. Imec requires more than 2,000 kilometres of railway, and large parts of it still need to be built in the Middle East's rough terrain. For example, the shipping route from Haifa in Israel to Greece passes through waters disputed with Turkey, which is not part of the project. Ankara's objections to the project could become more vocal following the shift in Syria with the fall of Bashar Al Assad's government last December and the subsequent rise in Turkish influence in the country. The exclusion of Egypt, Iraq and Oman from Imec could also pose some challenges to the project. Therefore, the UAE advocates a more pragmatic and sustainable approach that considers projects and initiatives such as BRI, Imec and the Iraq Development Road (which includes the UAE, Qatar, Iraq and Turkey) as complementary rather than confrontational. This inclusive view offers the most practical and sustainable path forward. While Turkey is apprehensive about Imec, which does not pass through its territory, Ankara's involvement in the Iraq Development Road will determine whether this project competes with or complements Imec. Turkey's role will also determine the extent to which the Iraq Development Road supports China's BRI. Chinese experts have so far expressed scepticism towards the infrastructure proposals associated with Imec, criticising what they see as a familiar US pattern of overpromising and underdelivering. While Imec struggles to compete with BRI – a decade-old framework involving about 150 countries – it aligns with US efforts to empower a select group of 'technically and financially capable' states. For China, Imec presents both a challenge and an opportunity. Just as the US has often downplayed BRI's significance, Beijing may regard Imec with initial scepticism. However, the best-case scenario for all parties would be one of co-operation and constructive competition, rather than rivalry or confrontation. It is evident that the UAE continues to pursue a multilateral foreign policy. During his meeting with Chinese Premier Li Qiang in Abu Dhabi last September, President Sheikh Mohamed reaffirmed his country's commitment as a strategic partner in BRI. He also emphasised that UAE-China relations represent a model of international co-operation rooted in diplomacy and dialogue. China remains the UAE's largest trading partner, with bilateral trade reaching $102 billion last year – marking a 7 per cent increase from 2023. In a first-of-its-kind development that will further deepen economic and tourism ties, China Eastern Airlines announced the launch of direct flights between Shanghai and Abu Dhabi, scheduled to begin today. This move underscores Abu Dhabi's strategic importance within the BRI framework. The emirate offers a supportive economic environment – bolstered by its advantageous geographic location, investor-friendly free zone policies and leadership in the energy and financial services sectors – making it an ideal hub for the global expansion of Chinese enterprises. As economic ties deepen, with bilateral trade between the UAE and China projected to reach $200 billion by 2030, Abu Dhabi is steadily reinforcing its role as a gateway for Chinese investment into the Middle East and beyond. The emirate now hosts a significant number of Chinese companies operating in key sectors such as high tech, financial services, energy and industry. Yet while China continues to deepen its BRI footprint, questions remain about the future of US-backed initiatives. Mr Trump's protectionist orientation has cast doubt on the depth of US commitment to Imec, which has been described as a potential catalyst for realising the long-envisioned Eurasian connectivity. While Mr Trump characterised Imec as 'one of the greatest trade routes in history' during his meeting with Indian Prime Minister Narendra Modi in February, expectations must be tempered by the need for realistic, adaptable approaches. In the end, the success of Imec – and similar large-scale initiatives – depends on the ability of stakeholders to embrace a co-operative, win-win approach. Prioritising complementarity rather than rivalry is key to realising the full potential of regional connectivity.

Observer

23-04-2025

Politics
Observer

Populists versus bureaucrats

Populists love to hate bureaucracy. Alice Weidel, the leader of the far-right Alternative für Deutschland – now the country's second-strongest party – says that clueless European Union bureaucrats are destroying the bloc's free-market foundations. Santiago Abascal, who leads Spain's far-right Vox party, accuses the same bureaucrats of attempting to 'liquidate freedom", while Italian Prime Minister Giorgia Meloni calls the EU an 'invasive bureaucratic giant.' Across the Atlantic, US President Donald Trump is dismantling a federal bureaucracy that he claims is rife with 'waste, fraud, and abuse,' and 'stifles personal freedom.' Bureaucracy, as they portray it, is the enemy of progress. The populists are wrong. As I pointed out at the recent Delphi Economic Forum, far from a sclerotic force destined to strangle innovation and liberty, bureaucracy forms the scaffolding for both. From drafting legislation and issuing permits to composing communications and coordinating crisis responses, bureaucrats carry out the mundane tasks that keep society functioning. Without them, economies would stall, the rule of law would collapse, and political visions would never be realised. Bureaucracy is, at its core, an exercise in rationality. As US president Woodrow Wilson pointed out, administration demands expertise – which is fundamentally neutral, not ideological – and thus exists outside the turbulent sphere of politics. For Max Weber, an intellectual titan in administrative theory, obedience to the impersonal, rules-based order that bureaucracy represents – rather than to charismatic individuals or entrenched traditions – is a mark of a society's maturity. But maturity implies patience, which populists notoriously lack. It took EU institutions more than 260 days to get the Recovery and Resilience Facility – a lifeline for struggling EU countries during the Covid-19 pandemic – from proposal to passage. The Artificial Intelligence Act took 1,199 days, and the Asylum Procedure Regulation nearly eight years. While these timelines could undoubtedly be shortened, crafting policies that balance the interests of 27 countries is an inescapably complicated affair requiring careful deliberation. In any case, the main source of delays is not EU bureaucrats, but the European Council's member governments and the European Parliament's elected politicians. None of this matters to populists. They paint pictures of lumbering giants, like those depicted at the Siphnian Treasury in Delphi. Just as the gods of Mount Olympus – with the help of the mortal Heracles – had to vanquish those power-hungry giants, so, too, must today's populist 'gods' defeat a monstrous bureaucracy that seeks dominion over all aspects of life. This is the vision that animates the Department of Government Efficiency, established by Trump and led by the world's richest person, Elon Musk. But far from crushing a dangerous foe, DOGE is destroying America's ability to confront the giants that actually threaten it, from climate change to technological disruption. These giants can be defeated only through the kind of disciplined, long-term coordination at which bureaucracy excels. Ironically, there could be no more compelling argument for the value of measured governance carried out by seasoned bureaucrats than DOGE's reckless gutting of America's state capacity. This has included the decimation of crucial agencies, such as the US Agency for International Development, and programmes ranging from lifesaving medical research to projects supporting teenagers with disabilities. While DOGE's approach has satisfied the populist hunger for daring over deliberation, it has also required a number of hasty reversals, including halting the firing of hundreds of federal employees working on America's nuclear-weapons programmes. And this is to say nothing of escalating privacy and security concerns, as DOGE staff access sensitive databases with virtually no oversight. Musk might have made much of his fortune in a sector known for 'moving fast and breaking things,' but the government is not a tech company. As many observers, including veteran Republican budget experts, have warned, DOGE's cuts – driven by ideology and self-interest, not pragmatism and the common good – are jeopardising public welfare. The same goes for Trump's reinstatement of Schedule F, which makes it easier to fire civil servants. This move threatens to politicise the federal workforce, making it less capable, as loyalty is rewarded over merit, and less equipped to fulfil its role as a critical source of continuity across administrations. The allure of political audacity is undeniable. When Trump issues ultimatums – to universities, trading partners, Nato allies, and others – he projects strength. When Meloni performs a foreign-policy balancing act – courting Trump while championing Western unity – she exudes pragmatism. When French far-right leader Marine Le Pen defies EU financial probes – much to Trump's delight – she appears dauntless. Such acts electrify supporters, replacing feelings of helplessness and stagnation with the thrill of brashness, the exhilaration of disruption and the promise of power. But good governance demands discipline, not spectacle. The EU's Competitiveness Compass, a strategic framework aimed at strengthening growth and innovation without sacrificing environmental goals, is a case in point. There is only one way to chart a credible path forward that accounts for multiple complex and competing goals – and it involves bureaucratic expertise, not a chain saw. None of this is to say that bureaucracies are above reproach. The EU's sluggish lawmaking and America's labyrinthine administrative system warrant scrutiny. But the solution is reform, not demolition. Streamlining regulations, as the EU's Omnibus packages seek to do, can enhance the bloc's agility. And measures that guarantee merit-based hiring and protect civil servants from political purges would support US efforts to improve governance. To defend bureaucracy is not to fetishise red tape, but to recognise the vital role it plays in making our societies work. In the fight against the 'giant' challenges we face, bureaucracy is Heracles, the flawed but knowledgeable ally that makes victory possible. To vilify it is to mistake the servant for the master, risking the very future we seek to reclaim. @Project Syndicate, 2025

In the home of the Oracle, the future is anyone's guess

Arab News

13-04-2025

Business
Arab News

In the home of the Oracle, the future is anyone's guess

Trump, tariffs, and trust dominated the 10th Delphi Economic Forum in Greece which concluded on Friday. Since taking office last January, US President Donald Trump has left world leaders, economists, and political analysts struggling to predict the future. After all, the case was — and very much still is — that when America sneezes, the world catches a cold. One only has to imagine how friends and foes alike are rushing to think tanks, analysts, and lobbyists to try to decipher the announcements and executive orders coming out of Washington on a daily basis. It is, therefore, perhaps fitting that a large number of the global elite gathered at a mountain town believed by ancient Greeks to be the home of the Oracle. Legend has it that Delphi was an ancient religious sanctuary dedicated to the mythical Greek figure Apollo. Developed in the eighth century B.C., the sanctuary was home to the Oracle of Delphi, known throughout the ancient world for predicting the future. Opening the Delphi Economic Forum, Greek President Konstantinos Tasoulas did not mince his words, saying that his country 'supports transatlantic ties, while it contributes to efforts for its strategic autonomy, and the de-escalation of the trade war that is harmful to everyone, always advocating for a unified European policy.' All things considered, you don't need the Oracle to tell you that all roads lead to Riyadh Faisal J. Abbas As he noted, 'in an era in which global upheavals and radical changes are already apparent in both geopolitics and geoeconomics, with a pre-war-style imposition of intense protectionism that is disrupting and worsening the post-war global free economic system, our country is called upon to walk on familiar and tried-and-tested paths.' Many questions were raised about Ukraine, whether it would be abandoned, and in the absence of the Russian narrative, most people were left wondering what comes next. Well, the answer might emerge soon from Saudi Arabia if the peace talks succeed. In fact, Saudi Arabia was the only other topic that competed with Trump, and not just in the context of Ukraine. When it comes to stabilizing energy prices and ending the war in Gaza, all hopes are on the solutions that may come out of Riyadh. This is thanks to the Kingdom's foreign policy, which has pursued a fine balancing act, staying close to the US and the West, while at the same time strengthening its relations with China and Russia, and trying to minimize or eradicate conflicts and disputes with countries such as Iran. Let us also not forget that Riyadh enjoys an excellent relationship with Trump due to the trust and respect built during his first administration. Trump has left world leaders, economists, and political analysts struggling to predict the future. Faisal J. Abbas When you combine such a web of relationships with the religious clout and economic might that the Kingdom enjoys, one can only begin to imagine the sphere of influence it has which was and is being used to help resolve regional and international conflicts. However, there is an added element, too, for Saudi-Greek bilateral ties, which have grown tremendously in the past eight years. Early this year, the relationship was strengthened by the visit of Prime Minister Kyriakos Mitsotakis to Saudi Arabia. Crown Prince Mohammed bin Salman received him in AlUla and he also visited the historic UNESCO World Heritage Site at Hegra. They discussed relations between the two countries as well as ways to increase cooperation in various fields. The crown prince and Mitsotakis also chaired the Saudi-Greek Strategic Partnership Council, which oversees areas of current and future cooperation. Among Saudis, including yours truly, Greece is not only known for its history and heritage as a tourist destination, but we will never forget that when US President Joe Biden withdrew the Patriot anti-aircraft missiles in the middle of the war on the Houthis, it was Greece that decided to send the Patriot missile system to Saudi Arabia on loan. This gesture was highly applauded and appreciated in the Kingdom and provided a unique bond in the relationship between Athens and Riyadh. As a firm believer in this relationship and what it could mean in terms of benefits for both countries, the region, and for Europe, the uncertainty the world is going through means Athens should push full speed ahead, especially to enhance its economic standing. That would also give the country an edge that could potentially end the need for a general strike, which is what happened on day one of the conference, stopping many delegates from attending. Kudos to the organizers for making it a success regardless. With the world divided, Saudi Arabia is playing the role of pacifier. The idea is to quench the fires of division and provide a healing touch to humanity. All things considered, you don't need the Oracle to tell you that all roads lead to Riyadh.

South Africa: Minister Ronald Lamola Lands in Greece for a Working Visit

Zawya

12-04-2025

Business
Zawya

South Africa: Minister Ronald Lamola Lands in Greece for a Working Visit

Mr Ronald Lamola, Minister of International Relations and Cooperation of the Republic of South Africa, has landed in Greece for a high-level Working Visit. Minister Lamola will address the prestigious Delphi Economic Forum, where he will outline South Africa's priorities as the incumbent G20 Presidency, championing Africa's role in shaping a more equitable and sustainable global future. Minister Lamola's participation underscores South Africa's commitment to multilateral diplomacy, economic justice, and South-South solidarity. His engagement will focus on leveraging the G20 platform to advance Africa's developmental aspirations, including reforms to global governance systems, climate finance mechanisms, and inclusive digital transformation. 'As South Africa remains unwavering in its pursuit of a world where no nation is left behind,' stated Minister Lamola. 'Our Presidency prioritises bridging the gap between developed and developing economies, ensuring that Africa's vast potential in green industrialisation, youth innovation, and sustainable trade is unlocked through equitable partnerships.' The Delphi Economic Forum, a global nexus for economic and geopolitical discourse, offers a strategic platform to amplify South Africa's foreign policy objectives, including its advocacy for peace building, continental integration, and the United Nations Sustainable Development Goals (SDGs). This engagement reaffirms South Africa's leadership in advancing Pan-Africanism on the global stage, ensuring Africa's priorities from debt relief to food security remain central to international agendas. As the G20 Presidency, South Africa continues to bridge divides, fostering dialogue that translates into tangible progress for the Global South. Distributed by APO Group on behalf of Republic of South Africa: Department of International Relations and Cooperation.

BOE's Greene Says Dollar Moves Complicate Tariff Policy Response

Bloomberg