The annual Ittihad forum represents a cultural and intellectual gathering that discusses many political, economic and contemporary social issues, especially those pertaining to regional and global developments and their impact on situations occurring in the region.

This year's forum discussed a political topic that revolved around the Arabs' relations with neighbouring countries, such as Turkey, Iran, Africa and Israel. With the exception of Israel, these countries have strong economic interests and relations with Arab countries.

One of the forum's participants categorised Arab countries' political stance towards neighbouring countries as being either admiring, fearful or neglectful. Arab countries' economic characteristics too can be categorised based on their positions relative to the three powers — Iran, Turkey, and Africa.

First we have the Turkish economic miracle, which in a few years transformed the country into an emerging market that was included in the G20. Iran is torn between its strict sectarian ideology and military spending, for which the average citizen pays the price. And finally, Africa with its resources, specifically oil, uranium and water sources which are currently stoking conflicts among world powers.

Amid these three powers is Israel, which does not have any form of economic cooperation with Arab countries, even though it's been more than 30 years since it signed peace treaties with Egypt and Jordan.

Arab states' economic positions are staked out based on their rapport with the four parties discussed at the forum.

First we have the Gulf Cooperation Council (GCC) countries which achieve good growth rates and have economic and oil capabilities. GCC countries are also represented in the G20 through Saudi Arabia, and have economic aspirations to turn into a global centre for petrochemical production as well as developing their financial, trade and logistics centres. Therefore, the GCC countries are the closest to the Turkey experience, albeit with many differences between them that emerge from variance in capabilities, geographic location and international relations.

Another group of Arab countries, which will not be named, are closest to the Iranian model. This means that despite their immense oil wealth, they have wasted decades worth of development due to their extremist views and unproductive expenditures that are directed towards achieving their baseless dreams of greatness.

On the other hand, there are Arab countries that have promising chances and achieve good growth rates despite their modest capabilities. These countries rely on available natural resources, such as agriculture and developing their human resources, and were able to attract important global capital in the past few years. Egypt and Morocco are the closest to this model.

Turkey's twin interests

Either way, Arab nations' economic relations with neighbouring states do not live up to the level of strategic economic alliances or economic integration. Although Turkey proceeded to develop its relations with Arab countries over the last ten years and achieved significant progress by doing so, it also integrates with its other side — the European Union member countries — which are part of the union that Turkey aspires to join.

Iran, however, is isolated, and limited its relations with the Arab world on trade; particularly re-export trade, which is being affected by economic sanctions that are imposed on the country due to its nuclear programme.

Africa possesses many investment opportunities, some of which are related to Arab food security. However, its inadequate infrastructure and absence of strong corporate laws prevent it from attracting Arab investment.

The forum's discussion on Arab and neighbouring countries touched on various key issues despite their sensitivity. However, establishing economic partnerships between Arab nations and all its neighbours is an important future issue that is directly linked to policies and development programmes of all involved parties.

It requires working on overcoming obstacles and strengthening these relations in order to quicken the rate of development, given that Arab nations already have the foundations for development in terms of natural resources, human resources, large markets and technical expertise. These economic partnerships will benefit all parties, and requires the establishment of balanced relations that are free of political rivalries, domination, and sectarian and chauvinistic extremism.

Dr Mohammad Al Asoomi is a UAE economic expert.

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