UAE/TURKISH BUSINESS RELATIONS

UAE/TURKISH BUSINESS RELATIONS

Posts 1-3 of 3
  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
    The company name is only visible to registered members.
    UAE tackles GCC obstacles
    The Ministry of Finance (MoF) Monday held its first meeting with the Federal Customs Authority, Federation of UAE Chambers of Commerce and Industry and Chambers of Commerce and Industry in the UAE to discuss Gulf Cooperation Council financial and economic integration at its headquarters in Dubai.

    Headed by Ebrahim Hassan Rashid Al Jarwan, Head of GCC and Arab Countries at MoF, the meeting was in line with efforts to enhance GCC economic activities, follow up the workflow of the Gulf Common Market and the GCC Customs Union, the MoF said in a statement.

    In addition, the meeting discussed obstacles facing the private sector due to the GCC financial and economic integration and proposed mechanisms to overcome the obstacles.

    A Gulf Common Market is advantageous and beneficial for all member states. They can trade with the rest of the world as one market which will give them a negotiation edge vis-a-vis rest of the world. They can also get better prices and better quality when they import commodities for one huge market.

    The GCC Customs Union will facilitate trade among the member countries of the GCC and boost investments within the GCC member states. The European Union has proved to be a successful union, so why not the GCC common market?

    During the meeting, the MoF presented details about the Gulf Common Market and the benefits it provides to GCC citizens in various fields. The Gulf Common Market is one of the most important forms of economic cooperation and an advanced stage of the GCC Customs Union established in 2003.

    It includes comprehensive elements of the GCC Customs Union such as liberalizing trade services and investment, as well as facilitating the movement of capital, business, management and other factors that lead to the achievement of GCC economic citizenship.

    Other constraints and obstacles facing the GCC common market such as discrimination in the treatment and non-realization of the principle of full citizenship were also discussed. Participants dealt with restrictions on real estate ownership for the purposes of investment and giving preference to local products or GCC products regardless of the quality and price. They highlighted the absence of unified and binding GCC laws, different accounting systems for companies, legislation gaps and lack of uniformity in implementation.

    The Ministry of Finance is authorised by the Council of Ministers to represent the UAE in the meetings of the GCC Financial and Economic Cooperation Committee relating to the GCC economic integration. It seeks to enhance GCC financial and economic cooperation by organising discussions and consultations with all parties concerned in the UAE.
    • 31 May 2011, 09:12 am
  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
    The company name is only visible to registered members.
    Economic integration in the Gulf
    Dear friends,

    With the Eurozone running up against new challenges and protectionist tendencies on the rise worldwide, the merits of economic integration, in which several national economies agree to coalesce into a larger single entity, have recently been called into question.

    But this context unfairly overshadows the substantial economic and strategic benefits that integration has brought about in many parts of the world — including the EU.

    Integration in the EU has seen the creation of 2.75 million new jobs and 2.2 per cent of additional GDP as a direct result of integration efforts that facilitated the movement of goods, services and labour between countries.

    As the GCC reaches its 30th birthday, it is a good moment for its six member countries to pause and consider whether they have successfully created a strong, regional bloc that can bolster their individual impacts on the global economy.

    A recent Booz & Company study ranked the region's overall integration efforts on a scale of 1 to 5, with a score of 1 indicating a major setback to the goal or stagnation of process and 5 indicating accomplishment or near completion of the goal. Overal, it found the region to have achieved a score of 2.9.

    It has certainly made progress in several areas; in January 2008, for instance, the launch of the Gulf Common Market ensured "economic equality" for GCC citizens, specifically employment rights and free movement among member states.

    Other less formal benefits are evident as well. The UAE has benefited from tourism, real estate deals, and business investment originating in other GCC countries. Similarly, Bahrain's banking sector has benefited from wider economic activities across the GCC, carving out a niche as the regional center for Islamic finance.

    Meanwhile, other efforts have seen mixed results. In particular, a common currency for the region was to have been in place by the end of 2010. That deadline has passed, and there is no clear indication that a single currency will be implemented in the next few years.

    Overall, the region's admirable growth in the past decade represents the efforts of six individual states, rather than a coherent and aligned group operating as an integrated economic entity. More comprehensive integration has the potential to boost the region's economy much as it did for the EU. In short, there is an opportunity cost to not integrating further.

    Using the same 1 to 5 scale, we have ranked the GCC's integration efforts in five areas, and noted what needs to be done to push these initiatives further.

    At the GCC summit in December 2001, the six member states voted to establish a unified currency by 2010, as well as create a GCC-level central bank that would manage fiscal policy across the Gulf. However, in both areas the GCC has seen limited progress thus far. To move forward, member states must harmonise their legal and regulatory infrastructures, which will make it easier for the GCC financial sector to establish a robust system of payments and links among their financial markets.

    Intra-GCC trade is on the rise, but it has never exceeded 10 per cent of total nominal trade value for the region. By comparison, blocs such as ASEAN and EU-15 generate 23 per cent and 57 per cent, respectively, of their overall trade from within their regions. Removing barriers to trade will be critical to boosting this percentage in the GCC. Member states must simplify and standardize customs processes and exchange information across borders. They should also craft government regulations and policies that can help liberalize targeted economic sectors, and provide incentives for regional investments to bring vitality to untapped sectors of the GCC economies.

    Mergers and acquisitions activity in the GCC has been strong across all industry sectors, with a total value of $26.4 billion (Dh96.95 billion) from 2000 to 2008. Yet this regional investment has happened despite a lack of formal coordination, and overall financial integration for the region remains inconsistent. The GCC should work to harmonise laws on the investment and ownership of GCC companies in all sectors.

    The recent GCC Supreme Council decision in December 2010 to allow regional businesses to establish branches in other member states on an equal footing with national firms is an important first step.

    Joint infrastructure is the area of integration in which the GCC has made the most progress. The Interconnection Project, a new $1.4 billion electricity grid, will eventually link all six countries. In transportation, Qatar and Bahrain are planning a $4 billion causeway and high-speed rail link that will connect the two countries; Bahrain and Saudi Arabia will expand their shared King Fahd causeway; Oman aims to launch a super-expressway connecting Muscat and the UAE by 2015; and the GCC as a whole is planning a 2,117-kilometre railway network to be built by 2017.

    The GCC should build on the success of these projects and consider creating an infrastructure monitoring board to evaluate and spur progress on large-scale regional infrastructure projects.

    Individually, GCC countries have invested heavily in research and development (R&D) in recent years. But the GCC has not developed a flagship regional institute for joint R&D spending, despite the common economic and social interests of member states.

    Although state-level R&D efforts can spur competition, they can also create the risk of cannibalism and overlapping technologies in the absence of any regional coordination. Moreover, individual member states will face high hurdles from global competition, whereas a unified GCC will be able to compete more effectively. Accordingly, the GCC should establish a regional research institution to promote, fund, and assess collaborative projects that can enhance socioeconomic collaboration between member countries.

    Only by aligning their common interests will the members of the GCC be able to negotiate favourable agreements with larger economic counterparts such as the EU and ASEAN. As global economic competition intensifies, GCC countries must strive for broad economic integration, which will enable the six member states to better face future socioeconomic challenges.

    Regards,
    NIlgun Birgoren
    • 09 Jun 2011, 09:40 am
  • Dr. Nilgün Birgören
    Dr. Nilgün Birgören    Premium Member   Group moderator
    The company name is only visible to registered members.
    UAE panel on Gulf Common Market
    Dear friends and members,

    The UAE Ministry of Finance (MoF) said the national team tasked with implementing Gulf Common Market (GCM) resolutions related to employment, education and health met in Dubai Monday.

    Headed by Ebrahim Hassan Rashid Al Jarwan, Head of GCC and Arab Countries at MoF, the participants reviewed the previous recommendations at their second meeting while highlighting the major developments made by various sub-teams regarding the GCM.

    They also discussed efforts made to achieve equal treatment for GCC citizens in all sectors, particularly with regard to employment in the governmental, public, education and health domains. Light was also shed on the resolutions of the GCC Supreme Council for the GCM and the related executive decisions implemented in the UAE.

    The meeting agreed on a preliminary study highlighting different projects to support the common market, in addition to creating a media plan and holding workshops to increase awareness among the public and the government, private and education sectors on its benefits and importance.

    The Gulf Common Market plays a vital role in establishing sustainable and balanced development for the UAE. Furthermore, the GCM promotes the concept of a common GCC citizenship and secures the equal treatment of GCC citizens in all domains.

    The Ministry of Finance is the official entity authorised by the UAE Cabinet to follow up on the progress of implementing GCM resolutions in the UAE, it is adamant on hosting regular meetings to coordinate with all parties involved in the UAE team tasked with supporting the GCM. The team plays an important role in realising the goals of the UAE to establish itself as a pioneer with regards to GCM support.

    The panel agreed to organise another meeting in September to follow up on GCM issues.

    Labour, education and health are the first sectors to be unified towards the aim of forming a common market for all GCC countries. Later, it may be expanded to cover other areas such as agriculture, industry, construction, trade and financial sectors.

    A GCC Common Market is good for all members as this would work on the lines similar to the European Union and its member countries will have the ability to negotiate with other countries as one strong, large bloc in all economic matters including imports and exports.

    Regards,
    Nilgun Birgoren
    • 28 Jun 2011, 7:33 pm