LONDON: Re-engineering the world economy and transforming the global supply chain is key to a post-pandemic economic rebound, the UAE economic minister said on Tuesday.
Abdulla bin Touq Al-Mari’s comments came in a Bloomberg-hosted web event that included UK Minister for Investment Lord Gerry Grimstone and Bloomberg Europe Director Constantin Cotzias.
The talks focused on UK-UAE trade ties, post-pandemic recovery plans and the two countries’ future ambitions.
Both states have recently strengthened diplomatic initiatives, with the UAE looking to boost its international clout following the Abraham Accords with Israel and an ambitious economic reform plan, and the UK searching for bilateral trade deals amid a looming Brexit cliff-edge.
Al-Mari said the UAE is seeking to “digitize” its national economy, building on investment and trade in high-tech areas, including artificial intelligence, research and development, pharmaceuticals and data analytics, to create a “new economic development model.”
The minister added that the UK would be a “key partner” in the transformation, in which the UAE would “pave the way for UK investment,” bringing “a new dimension” to UK-UAE bilateral ties.
He hailed the expansion of the UAE golden visa system, which aims to attract foreign talent and capital to the Gulf country by offering residency and tax incentives.
The significance of the Dubai World Expo 2021 — the first in the MENA region — was also touched on by Al-Mari, who said the event promises to be a watershed moment for UAE and the Gulf that will “connect minds to discuss the future.”
Discussing the pandemic, the UAE minister said that research and development is vital to transitioning to a post-pandemic economy, adding that “countries must learn lessons” in the transformation.
He said: “The UAE has a long list of legislation that needs to be restructured.”
Al-Mari added that education will be a vital industry in any transformation plan, and hailed the UAE’s successful introduction of a mass “smart-learning” program for students.
In his final comments, Al-Mari made an ambitious call to “re-engineer the world economy” in light of the pandemic, acknowledging the “opportunity that lies on the horizon.” He also called for a “transformation of the global supply chain.”
Part of the transition, he said, would also come in the form of an opportunity to re-invent the World Trade Organization by electing a new secretary-general.
As part of UK efforts to reach trade deals with countries around the world, Lord Grimstone hailed bilateral efforts to “bring the UK-UAE relationship to a new level.”
He said part of the UK post-Brexit strategy is reaching a trade deal with the Gulf Cooperation Council (GCC), in which “the UAE will play a major part,” but cautioned that there are “formidable bumps in the road ahead” regarding UK trade.
The UK “wants to work ever more closely with the UAE and other GCC countries,” the investment minister said.
In the context of the coronavirus pandemic, he warned that “uncertainty weighs heavily on businesses and investors,” and that “governments must resist siren calls of protectionism.”
However, the minister revealed an enterprising vision of a post-pandemic future that features green finance, which will “play a huge role in change,” and artificial intelligence and fintech, which he called “key growth areas.”
He hailed the achievement of the UK in signing 54 trade deals as part of Brexit efforts, including a major deal with Japan revealed in October, adding that “it is the first time in 50 years that the UK has been able to conduct its own trade policy.” The minister revealed that the UK hopes to join the Trans-Pacific Partnership next year.
He said the GCC and UAE are “right up there” in terms of opportunity, and said a potential UAE trade deal would bring both partners “synergistic benefits.” He was optimistic regarding the UK’s circumstances, saying: “If we can’t reach a deal with the EU, we will go our own way.”
Lord Grimstone said that clean energy and net-zero emissions strategies had “moved up the agenda very dramatically over the last 12 months,” a sentiment shared by Al-Mari. The number of companies and investors adopting a “sustainable mindset” would “only grow” over the coming year, given that “youth won’t work for companies that don’t share their values,” he added.
“The world is going to be very different,” the minister said in his final comments, warning that the economic effects of the pandemic “will take time to work through,” and that a rebound “would not be immediate.”
