On the sidelines of the 13th Ministerial Conference of the World Trade Organization Trends discusses Free Trade and the Challenges of “Economic Regional Integration "

Coinciding with the Thirteenth Ministerial Conference of the World Trade Organization, Trends Research and Advisory organized a symposium entitled “FreeTrade and the Challenges of Economic Regional Integration” at Abu  Dhab National Exhibition Centre.

Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and MC13 Chair, welcomed the side event, stating: “The topic of ‘Free Trade and the Challenges of Economic Regional Integration’ goes right to the heart of the issues being discussed at MC13 this week. Our mission is to extend the benefits of trade to all nations who seek them, so understanding the barriers to full participation in global trade is an essential component of policymaking. As the world continues to grapple with supply-chain disruptions and the demands of new technology, it is crucial to bring together informed opinions and expert insights to propose solutions and offer new pathways for least developed countries in particular

The participants included Simon Binney, Head of the Middle East Sector, Gemcorp Capital, Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings PLC, and Lord Edward Udney Lister, British Co-Chairman of the UAE-British Business Council, and Senior Advisor to HSBC Bank,  Board Member of Covent Garden Market, Governor of the Museum of London, Stephen Scalet, Scientific Advisor, Trends Global Sector, and researchers  Moza AlMarzouqi, Director of the Economic Studies Department at Trends and  Maryam Al Junaib.

The speakers stressed that free trade represents the basis for regional economic integration and the promotion of economic growth and cooperation between countries .

They said that there are many challenges facing regional economic integration, such as exchange rate fluctuations, lack of financing, and technical barriers to trade. The four experts recommended the need to strengthen international cooperation in the field of free trade, in addition to developing strategies to manage exchange rate risks, and increasing investments in Infrastructure to enhance regional economic integration. They stressed the importance of supporting partnership between the public and private sectors, and removing technical barriers to trade.

They also called on governments to clearly define their goals and expectations for infrastructure projects, including desired outcomes and risk allocation .

The experts stressed the importance of establishing strong legal and regulatory frameworks to regulate partnerships between the public and private sectors, to ensure transparency, accountability, and dispute resolution mechanisms. Moreover, they called for facilitating investment through blended financing to attract investment from the public and private sectors. There is a need to implement mechanisms such as guarantees, subsidies or revenue-sharing arrangements to stimulate private sector participation, prioritize master planning and strategic investments, and allocate resources and comprehensive planning to determine project scope, , visibility potential risks.

The participants stressed the importance of focusing public financing on critical aspects such as initial planning and infrastructure development, engaging the private sector in mitigating the risks associated with large-scale projects, and benefiting from their experience in project management, innovation and efficiency. They stressed the importance of encouraging innovation, ensuring transparency and enforcing strict mechanisms for monitoring and evaluation. There is a need to strengthen international cooperation to access diverse sources of capital and expertise, and create platforms for knowledge exchange and capacity building to enhance understanding of best practices in implementing public-private partnerships.

The symposium began with welcoming remarks by Dr. Muhammad Al-Ali, CEO of the Trends Research and Advisory, in which he stressed the importance of this symposium. He indicated that it is a fruit of Trends’ interest in the issue of regional economic integration, and part of the Center’s research objectives to analyze the opportunities and element of regional integration, monitor its challenges and chart effective ways to overcome them.

The symposium was introduced by researcher Maryam Al-Junaibi. It began with remarks by the symposium moderator, Moza Al-Marzouqi, who briefed the audience on the main themes, including the exchange rates and the competitiveness of exports. Other issues include exploring the availability of finance, lessons learned from Africa, and the role of partnership between the public and private sectors in enhancing economic cooperation. The main challenges and possible solutions to activate cooperation between the public and private sectors in the regional context is another axis for consideration.

On the issue of exchange rates and competition in exports, Stephen Scalet, Trends Global sector advisor, said that financial stability is a priority in light of global instability, and said that the national monetary policy must focus on the stability of the financial system and the economy.

Scalet warned companies against borrowing heavily in foreign currencies due to the impact of price fluctuations on their budgets, and advised relying on local currencies.

He recommended mitigating exchange risks by establishing local production facilities in foreign export markets and billing customers in local currency for products.

He explained that to remain competitive, countries must focus on developing the sectors of clean energy technology, self-driving vehicles, semiconductors, robotics and other emerging technological industries.

Scalet cited successful historical models such as South Korea, Taiwan, Vietnam and China, which achieved economic growth through exports of industrial sectors.

He stressed the importance of stable exchange rates to enhance trade and regional economic integration, attract investments, and build strategic economic partnerships.

He referred to promising trade prospects, as expectations indicate rapid growth in trade between Asia and the Gulf Cooperation Council countries. He said bilateral trade is expected to reach $480 billion by 2030, making Asia the largest trade partner of the GCC countries.

Mr. Simon Binney, Chairman of the CMG Group in the Middle East at Gemcorp Capital and former Trade Commissioner of the United Kingdom government in the Middle East, discussed investment in emerging markets, especially African markets. He said that despite the practical steps in free trade agreements, they represent difficult type of agreements with deep political considerations.

Regarding investment in Africa, he said that it is very important to invest in emerging markets, especially African markets, because they are very large markets that include 54 countries. Africa, with its economic diversity, also provides a rich background for examining the challenges and successes in enhancing access to finance in the context of economic regional integration.

Mr. Simon stressed that the United Arab Emirates in particular and the Gulf states in general are considered an important player in financing investments in Africa, not only for economic interests, but also for political considerations.

He said that the best sectors for fruitful investment in Africa are agriculture and minerals.

Dr. James Mwangi stressed that financial participation is essential for bringing about transformation in Africa, by providing individuals with access to financial tools and enabling them to participate in the economy. Financial participation contributes to enhancing trade, achieves integration and comprehensive growth.

Dr. James said that while there are challenges such as limited access, education and infrastructure, the solutions lie in adopting a multi-pillar approach. He indicated that this includes educating people about financial instruments, building safe and transparent systems, and combining access, education and risk mitigation.

He stated that Kenya and South Africa are examples of positive impact, and that financial participation paves the way for the creation of a more integrated, sustainable and stable Africa, which benefits the whole world.

Lord Edward Udney Lister addressed the role of partnership between the public and private sectors in enhancing regional economic integration. He pointed to the establishment of the UAE-British Trade Council years ago with the aim of overcoming trade obstacles and consolidating bilateral relations.

He stressed the importance of partnership between the public and private sectors in financing major projects, citing the need for private sector investments to share innovation and mitigate financial risks. He explained that joint financing, which combines public and private money, is the ideal solution to achieve the desired goals.

Lord Edward Udney stressed the need for an appropriate framework for the success of the partnership between the two sectors, with the government clearly defining its goals and providing sufficient funding. Moreover, there is a need to ensure a clear source of income for all. He concluded that this partnership is the best approach for countries willing to implement large infrastructure projects and attract international capital.

An open discussion was devoted to reviewing the challenges and solutions related to free trade and economic regional integration.