No two agree that the political relations between Egypt and Saudi Arabia in recent days have demonstrated the extent of the close interdependence between the two brother countries, as they live in the same trench and shelter in one house. Out of the 203 countries accredited by the United Nations, 164 member states of the World Trade Organization and 242 regional free trade agreements, today we rarely find two homogeneous, convergent and complementary countries such as Egypt and Saudi Arabia. While the population of Egypt and Saudi Arabia makes up 33% of the population of the Arab world, the total GDP of the two friendly countries exceeds 59% of the total GDP of all Arab countries, and their foreign trade exceeds 51% of the Arab world. world trade with all countries of the world.
Statistics from the last decade confirm that total Egyptian exports to the Arab countries increased by 50%, with Saudi Arabia achieving first place by 56%, while Egyptian imports from the Arab markets a remarkable increase by 185 %, so that Saudi Arabia also took first place with 132%. Despite these advantages of traders, political rapprochement and popular interdependence, the efforts of regionalization between Egypt and Saudi Arabia are still moving very slowly to address their fatal goals because the two fraternal countries did not have their competing capabilities and comparative advantages needed around the ambitions of the two countries.
Today, Egypt and Saudi Arabia are blessed with the best strategic locations in the world, especially the Suez Canal and Bab al-Mandab Corridor in the north and south of the Red Sea, which account for 13% of world trade. Logistics services for maritime transport on the shores of the Red Sea to develop the exports of the two countries and facilitate access to the markets of the five continents to the best joint Egyptian-Saudi products.
While Egypt is blessed with the mouth of the great Nile River, which is the longest and most abundant river in the world, along with the best fertile agricultural areas and the most beautiful environment, to help the two fraternal countries have the largest strategic supply in the world for water and food, build the strongest economic blocks and the best agricultural and industrial projects, and exchange experiences in the fields of education, health, construction, public services, environment and distribution, in addition to standardizing their specifications and regulating their circulation laws .
There is no doubt that Saudi Arabia’s enjoyment of oil energy sources, in addition to the two brother countries’ enjoyment of new and renewable energy components, make their markets a suitable habitat for diversifying their people’s income sources and establishing jobs. for their children through electrical connection projects, the manufacture of solar power devices and spare parts for energy equipment in its various fields and the building of technical institutes Joint research centers and training of citizens of both countries.
There is no doubt that the trade exchange between Saudi Arabia and Egypt, which jumped 65% last year to more than $ 30 billion, requires further opening of the markets of the two fraternal countries, facilitating the flow of their inter-investments, and eliminate customs duties between them. , and accelerating the development of maritime and air transport lines in the commercial and tourism fields, in addition to providing a Climate Healthcare for businessmen and companies and protecting their investments, in order to increase and double the rate of trade exchanges between the two countries the level of transfer of individuals, capital and technical knowledge.
This requires Saudi Arabia and Egypt to implement the customs union’s provisions, remove all technical barriers to intra-trade, apply unified customs duties, build joint industrial complexes and increase the flow of investment between the two countries, in order to reap their comparative benefits. exploited. in production for the benefit of consumers in the African and Asian continents. It requires the establishment of the Regional Banking Union and its support with joint financial services and innovative cooperative insurance companies, the abolition of protectionist methods in export policies and the voluntary expansion of imports, making this region a home for multinational companies and international institutions. .
There is no doubt that the signing of 14 agreements between the two countries worth approximately $ 8 billion in various areas will lead to the provision of preferential benefits between the two countries and the improvement of cooperation in the technical, scientific and financial aspects to locate the production base and jobs and strengthen the ability of the joint Egyptian-Saudi economy to compete with its joint projects abroad.
In the future, this will lead to the unification of all international trade agreements relating to rules of origin, investment encouragement and guarantee, protection of intellectual property rights, coordination of regulations, legislation and investment policies, technical cooperation in the field of vocational training, regulation of the exploitation of regional waters in the field of sea fishing, the settlement of commercial disputes, cooperation between export development centers and the establishment of business councils.
Therefore, the organization of the Saudi-Egyptian house does not require a magic wand, complex theories or extensive studies. The close interdependence between the two fraternal countries and the convergence of the aspirations of their people is one of the best elements needed to strengthen and develop their relationship to their advantage.
* Quoted from “Mad” newspaper.
All published articles represent only the opinion of its authors.