Today's Edition
MUDHI ALOBTHANI (ABU DHABI)
The UAE has firmly established itself as a strategic economic hub connecting Asia, the Middle East, and Europe — a position reaffirmed through its participation as the Guest of Honour in this year’s Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, Korea.
The country’s vision to deepen economic integration, enhance connectivity, and promote sustainable, inclusive growth across the broader Asia region mirrors many of the principles APEC economies are working to advance, especially in key areas such as innovation, supply chain security, and clean energy.
Experts point out that the UAE’s rise as an economic hub is no coincidence but the result of consistent planning and policy execution. Serge Stroobants, Director for Europe and MENA at the Institute for Economics and Peace, said the country’s model combines stability with forward-looking policy.
“It’s seeing this long-term strategy, and from there, you start to instal the building blocks for positioning yourself or trying to become a hub connecting different continents,” he told Aletihad.
He added that the UAE’s social and political stability has been central to attracting international businesses and investors.
“A very safe environment, a very stable environment, with stability in day-to-day life. You know that you can operate freely and securely, which supports both society and the economy.”
A Natural Bridge for APEC Economies
The country’s participation as Guest of Honour in APEC 2025 comes at a time when it is expanding bilateral and multilateral partnerships with leading Asian economies in areas seen as the backbone of future trade connectivity, including finance, energy, technology, and logistics.
“Investments in technology, artificial intelligence, and space, alongside sustainability initiatives, showcase the UAE’s forward-looking approach and its commitment to maintaining a global economic leadership position,” Stroobants said.
These factors, combined with its geographic location, strategically developed free zones, and world-class logistics facilities, are driving the UAE’s competitive edge as a hub for trade between Asia, the Middle East, and Europe — regions that anchor the APEC economic framework.
“When you look at the positioning of the UAE, especially as a gateway to Asia, geography is helping. On the other hand, the UAE has created a stable environment in a globally significant region, enabling trade to flourish,” Stroobants explained.
At a time when APEC economies are investing heavily in resilient supply chains, the UAE’s model of interconnectivity offers practical lessons. Its logistical corridors and maritime networks now link the Indian Ocean with Europe and the Pacific, facilitating smoother trade flows and regional cooperation.
“Every action, every investment, every infrastructure development feeds into the path to achieve the ultimate goal of becoming a trade hub,” Stroobants said.
Economic diversification and sustainable growth remain at the centre of the UAE’s economic strategy, a model that complements APEC’s push for green and inclusive growth. Today, nearly 60% of the UAE’s economy is non-fossil fuel-based, and much of that success comes from doing business with major APEC economies.
In recent years, the total volume of non-oil trade between the UAE and APEC member economies has reached Dh874 billion. The trade growth was in large part driven by the country’s Comprehensive Economic Partnership Agreement (CEPA) programme, which currently covers around a quarter of the global population and aims to increase the UAE’s non-oil trade to $1.1 trillion by 2031.
Among APEC CEPA signatories are South Korea, with bilateral trade reaching Dh84.7 billion ($23.1 billion) last year; Indonesia, with Dh20 billion ($5.4 billion) in non-oil trade; New Zealand, with trade volume of Dh2.86 billion ($778.7 million); Australia, with trade valued at Dh15.4 billion ($4.19 billion); and Malaysia, with trade reaching Dh20.2 billion ($5.5 billion) in 2024.
Stroobants described the UAE’s approach to development as rooted in cooperation and peace-building.
“Even in a competitive world, the UAE believes in the multilateral approach, collaborating with the UN and investing in regional initiatives within the GCC,” he said.
“Investing in peace and stability, and promoting positive collaboration rather than conflict, is a great success achieved by [the UAE’s] leadership. Economic cooperation is an open door for countries and people to develop their activities in the UAE and across the region.”
The UAE consistently ranks among the top countries in the MENA region on global peace indexes, excelling in both negative peace, defined by the absence of conflict, and positive peace, which measures governance quality and societal resilience.
Stroobants explained that trade and peace reinforce each other: “Once you start to connect people and countries through trade, you see that peace is also generated.”
As APEC 2025 seeks to explore new models for resilient trade and sustainable growth, the UAE’s approach as a connector between regions can serve as a model for member economies.
“The concepts and doctrines are clear. Investments are made to support all this. Look at where the UAE is at the moment. It’s a very remarkable and exemplary position in the region, very successful in those investments.”
