Hello from Abu Dhabi, مرحبا من ابو ظبي,
The introduction to this month’s newsletter takes a closer look at the relations between the EU and the GCC, i.e. the broader context in which the activities of the LTIO for the Gulf evolve.
The detrimental effects of Russia’s illegal invasion of Ukraine on food security, supply chains, energy and raw materials are clear for all to see. Russia’s war continues to present a threat to global security and economic stability. Given this very challenging global environment, it is of great mutual importance to continue strengthening economic ties.
The EU is guided in this important work by the Communication on a “Strategic Partnership with the Gulf”, published in May of this year which aims to broaden and deepen the cooperation between the six GCC and the 27 EU member states.
As a reminder, together the EU and GCC represent 20% of the global economy, 17.5% of global trade, and more than half of global foreign direct investment. In 2021, the EU was the GCC’s 2nd biggest trade partner, while the EU was GCC’s 5th biggest export market. Bilateral investment flows and trade in services are also very robust. Foreign direct investment actually increased by 85% in Luxembourg during the first 6 months of 2022 compared to the same period in 2019. A study by fDi Intelligence places the country in 6th place globally, and 4th in the EU, when comparing investment during the first half of 2022 with investment made during the first half of 2019.
The EU is certainly a key partner for the Gulf region, based on its economic strengths as the world’s biggest single market, and number one trader and investor. The EU is also a leader in research and innovation, and a leading actor on global challenges, such as climate change and digitalisation. The two regions share an overarching strategic ambition, namely to speed up the green and digital transformations of their economies and societies. A good example from Luxembourg on how to put this ambition into practice at the local level is the self-driving bus shuttle, manufactured by Ohmio (cf. first article in this newsletter).
Going green and digital means economic diversification, innovation, and making better use of limited resources.
As regards digital transformation, key areas for action include privacy, data security, e-commerce, the use of Artificial Intelligence, automation, and blockchain technology.
There is equally huge potential for synergies between the regions in stepping up cooperation in low-carbon technologies and circular economy.
Innovation is essential to succeed in the transition to a low-carbon, circular and digitalised economy. And internationalisation is important given that companies that are internationally active grow faster, create more jobs and are more innovative.
Let’s join forces to build more resilient, sustainable and efficient economic models!
As we approach the United Arab Emirates’ National Day on the 2nd of December, which marks the unification of all seven Emirates into one Nation, on behalf of the LTIO, I would like to wish you:
Happy National Day to all Emiratis!
يوم وطني سعيد لجميع الإماراتيين!
Jean-Marie Frentz
Executive Director, LTIO Abu Dhabi