The United Arab Emirates aims to enhance economic cooperation among countries of the “Global South” through partnerships and strategies that contribute to the development of their economies. This approach underscores the importance of collaboration in addressing common challenges and achieving sustainable development, positioning the UAE as a leader in fostering robust economic cooperation among developing nations.
Importance of Economic Partnerships
The UAE provides a pioneering model for cooperation among Southern countries through a series of comprehensive economic partnership agreements. These agreements help strengthen trade and investment ties, bringing shared benefits to member countries. The Global South is gradually witnessing increased economic growth, representing a bloc of 133 countries that contribute 18% of the global GDP.
Growth of the Global Economy Among Southern Countries
The GDP of the Global South is expected to grow at an annual rate of 4.2% until 2029, significantly surpassing the anticipated growth of developed economies, which is projected at 1.9%. Including China, the countries of the South represent about 40% of the global economy and host 65% of the planet’s population. These figures highlight the growing strength of the Global South as a key player in the global economy.
Opportunities and Challenges in Global Trade
The Global South is considered an emerging force in trade, with an expected annual growth rate of 4.4% over the next five years. By 2033, the annual trade of the Global South could reach approximately $14 trillion. According to the Boston Consulting Group, trade among Southern countries is expected to grow at a rate of 3.8% per year, reflecting the importance of regional cooperation in enhancing growth rates.
Future Challenges in Financing and Development
Developing countries face significant challenges in financing. The OECD report indicates that the financing gap could reach $6.4 trillion by 2030 unless comprehensive reforms are undertaken. Although total external financing for developing countries amounted to $5.24 trillion in 2022, it still falls far short of the figures needed to achieve global goals.
The UAE is one of the countries striving to bridge this gap and strengthen economic cooperation among the Global South, opening new horizons for sustainable development and balanced growth in the coming decades.