By ABDEL AZIZ
ALUWAISHEG
The Gulf Cooperation Council (GCC) and the UK this week completed a year-long Joint Trade and Investment Review — an important building block for the GCC-UK Strategic Partnership that was established in 2016. For more than a decade, GCC states and Britain have been rebuilding and re-energizing their special relationship, which goes back centuries. In 2010, the UK launched a new initiative for that purpose, which has since evolved into a major undertaking that includes political coordination, defense cooperation, trade and investment, education, and people-to-people cultural exchanges.
The UK’s multifaceted links with the Gulf go back to at least the 16th century. For some time, the Gulf was recognized in the West as a “British lake.” Diplomat, colonial officer and historian Sir Arnold Wilson wrote in 1928: “No arm of the sea has been, or is, of greater interest alike to the geologist and archaeologist, the historian and geographer, the merchant, the statesman, and the student of strategy, than the inland water known as the Persian Gulf.” Despite his use of the misnomer for the Gulf, Wilson’s books reflect the British fascination with the Gulf and sketch the history of the region, especially London’s colorful and complex engagement with it.
Despite that special relationship, however, the UK in 1968 decided to withdraw from the region, with that process completed in December 1971. About a year later, in January 1973, the UK joined the EU’s predecessor.
The GCC countries have done quite well since 1971. Their wealth and prosperity have grown tremendously. Their gross domestic product (GDP) has multiplied many times. Take the UAE, for example. In 1971, its GDP was less than $1.8 billion. It has risen 225 fold to about $400 billion now.
Other GCC states have also transformed dramatically since 1971. Their economic and social indicators have hugely improved. For example, literacy rates have grown from below 50 percent in 1971 to more than 95 percent today. Citizens’ health has also dramatically improved. Life expectancy has risen from 51 years in some GCC states in 1971 to more than 80 years today. And infant mortality rates have declined sharply, from about 100 deaths in the first year per 1,000 live births to just five today.
The GCC’s role in the world has grown as well. Saudi Arabia is among the 20 largest economies in the world. It hosted the G20 summit last year, while the UAE is hosting the World Expo this year and Qatar will host the FIFA World Cup next year.
The view of the current UK government is that its withdrawal from the region and decision to join the EU were both mistakes.
The view of the current UK government is that its withdrawal from the region and decision to join the EU were both mistakes. Brexit ended its EU membership and the GCC-UK Strategic Partnership aims to re-establish Britain’s special presence in the Gulf.
In 2010, the then-newly elected Conservative government launched what was known as the Gulf Initiative. In 2012, the GCC-UK Strategic Dialogue was established and a five-year joint action plan was adopted to expedite their engagement. In December 2016, the GCC-UK Strategic Partnership was announced after a meeting between GCC leaders and former Prime Minister Theresa May.
Signaling the UK’s renewed commitment to the region, May said at the summit: “Gulf security is our security. I want to assure you that I am clear-eyed about the threat that Iran poses to the Gulf and to the wider Middle East. We in the UK are determined to continue to be your partner of choice as you embed international norms and see through the reforms which are so essential for all of your people.” She added that Britain “has been proudly at the forefront of a relationship between the Gulf and the West that has been the bedrock of our shared prosperity and security.”
The outcome of that historic summit was translated into detailed plans of action for regional security and political coordination, along with economic and cultural cooperation. In April 2017, a major trade and investment conference was organized in London, attended by hundreds of GCC and British businesses. Many other activities were organized under the scope of the re-energized partnership, especially focused on regional security and political issues.
The GCC and UK are already significant trading partners. GCC states collectively are the fourth-largest destination for UK exports after Europe, China and the US. In 2020, GCC-UK trade in goods and services exceeded $62 billion. The two-way trade has been growing at a brisk 8 percent annual rate since 2010. GCC investments in the UK exceed $175 billion, spread over many sectors and UK regions.
To build on those solid foundations, the GCC and UK are determined to develop even closer economic ties, boosting trade and investment further still. As the world emerges from the coronavirus pandemic, the timing of this effort to develop a deeper and stronger trade and investment relationship is perfect. In June 2020, they agreed to undertake a Joint Trade and Investment Review, which has been completed. It provides a comprehensive understanding of bilateral trade and investment flows, examines key sectors of interest and highlights opportunities to enhance bilateral trade and investment.
Through that year-long exercise, it has become clear that the economies of the UK and the GCC complement each other to a significant extent and there is great scope for collaboration. The GCC as a bloc is a large supplier of energy and petrochemical and aluminum products. –AN
