On the occasion of the 90th National Day of the Kingdom of Saudi Arabia, the UAE Ministry of Economy has issued a detailed report on the economic relations and initiatives on trade and investment cooperation between the two countries. The report highlights the distinguished partnership between them as well as the promising prospects for growth on cooperation initiatives in the future.

The report pointed out that the strength of the UAE-Saudi relations are embodied in their shared visions and goals, and the clear harmonious relations between the two countries and their people, which is evident on three levels: economically, politically and socially. This convergence has led to the establishment of the Saudi-Emirati Coordination Council, which was launched in Jeddah for three years, promoting the importance of the council, the roles it plays in different levels, and in enhancing the development efforts of both countries.

Business and economic partnership

The commercial and economic relations between the two major countries are considered to be the strongest compared to other member states of the Gulf Cooperation Council. The UAE is one of the most important trading partners for KSA in the Arab region in general, and the GCC in particular, with the volume of trade exchange between the two is the highest among the GCC countries, constituting a value of AED 113.2 billion, including free zone trade. The trade and investment indicators reflect the depth of the connection, with KSA as the third largest trading partner of the UAE in the world, and the first in Arab Gulf countries.

The KSA also ranks first among UAE’s import trade partners globally while the first among Arab countries to import gold, copper wires, establishments, and dairy products from the UAE with a total value of AED 30.9 billion. These products comprise 12.8 per cent of the total UAE exports to countries during 2019.

KSA is the first trading partner to re-export to it, and the first among Arab countries to re-export products from the UAE which is valued at AED 57.2 billion. It comprises 11.1 per cent of the total UAE re-exports to countries globally and is ranked eighth among exporting countries to the UAE, with a value reaching AED 25.1 billion during 2019.

Joint investments

Saudi Arabia’s direct investments in the UAE exceed AED 16 billion, while there are 4,459 Saudi trademarks registered in the UAE, 70 commercial agencies and 16 registered companies operating in investment sectors, including: mining, quarrying, wholesale and retail trade, financial activities, insurance, and in the field of health, social work, education, accommodation and food service activities, real estate, manufacturing industries, construction, agriculture and fishing, transportation and storage, administrative services, support services, professional services, scientific and technical activities, information and communications technology.

Regarding the value of UAE investments in KSA and the economic sectors exchanged between the two countries, the UAE is among the leading countries investing in the KSA, valued to reach more than AED 34 billion. This is reflected in the activities of nearly 122 investment projects for more than 65 companies and prominent investment groups in the UAE that implement major projects in Saudi Arabia. The value of investments of UAE banks in Saudi Arabia amounted to AED 53.5 billion during the first half of 2019.

Renewable energy

The report also reviewed the most prominent areas of cooperation between the two countries, especially in renewable energy and clean technologies. The two countries have been working together to enhance their position in sustainable development through a number of ways, the most important of which is providing clean energy. Potential areas of cooperation have been identified to include joint ventures on developing renewable energy projects, electricity generation and water desalination, opportunities for joint development in the technology sector related to renewable energy, as well as cooperation in research and development and advanced technology.

A shared vision for tourism

With regard to the tourism sector, initiatives are underway to jointly develop a tourism program which promotes both countries’ key features and thereby contribute to economic diversification as well as enhance economic integration of the two countries, including finding common solutions to key challenges that impact the region.

A competitive and secure digital environment

The Saudi-Emirati Coordination Council has achieved tangible results in various sectors and businesses, while continuing to maintain its strategies in addressing challenges and collaborate with the world’s leading technology providers to enhance financial security in both countries. This can be achieved by providing a competitive and safe digital technology environment as well as harnessing human development through skills training to achieve progress and prosperity for the two countries.

Education

The cooperation between the two countries through the Coordination Council has led to the creation of various opportunities in several key sectors of the economy. The Council has launched joint initiatives and projects that enhance the integration between both countries in all fields of education which serve the interest of future generations in both countries, and in the region in general. There are important initiatives launched which support UAE and KSA’s aspirations in the field of higher education, research, public education, technical education, and the strengthening of the digital education system, to prepare a generation of highly qualified citizens ready to face today's challenges and achieve visions for the future.

G20

It is also worth noting that both countries have increased its level of cooperation in light of the COVID-19 pandemic through the G20 meetings, which is currently being chaired by KSA. The meetings showed a high level of coordination and cooperation in terms of building a coordinated global response in response to the impact of the global health crisis.

Prepared by: Department of Analysis and Commercial Information