Manama: The Member States of the Association of Southeast Asian Nations (ASEAN) and the Member States of the Gulf Cooperation Council (GCC) have adopted a joint declaration aimed at enhancing economic cooperation between the two regions. This declaration was made during the 2nd ASEAN-GCC Summit, reflecting a mutual desire to deepen economic partnerships and establish linkages in areas of mutual interest.
According to Bahrain News Agency, the declaration builds on the commitments made during the First ASEAN-GCC Summit in Riyadh, Saudi Arabia, on 20 October 2023. The focus is on exploring cooperation in key economic areas such as regional market integration, sustainability, decarbonisation, digital transformation, and inclusivity. The summit also highlighted the potential of an ASEAN-GCC Free Trade Agreement (FTA) and explored ways to enhance sectoral cooperation in financial sectors, halal food and beverages, and tourism.
The ASEAN-GCC Framework of Cooperation (2024-2028) outlines joint measures in political-security, economic, and socio-cultural areas, aiming to realise the full potential of collaboration between ASEAN and GCC. In 2023, the GCC was ASEAN's 7th largest trading partner, with total trade amounting to USD130.7 billion and being the 16th largest source of foreign direct investment at USD390.2 million. The trade value is anticipated to grow by an average of 30 percent.
The declaration includes commitments to enhance trade and investment flows, explore digital economy cooperation, strengthen ties in agriculture, food security, hydrocarbons, green energy, health care, manufacturing, and cultural tourism. It encourages public-private sector engagement, business-to-business relations, and greater involvement of the private sector, particularly MSMEs. The declaration also emphasizes the importance of technical assistance and capacity building for entrepreneurs and start-ups.
Further, the declaration calls for networking among governments, business associations, and the private sector, and the exchange of experiences in geographic information systems, intelligent transport systems, and artificial intelligence. It also recognizes the role of sovereign wealth funds in advancing investment cooperation and looks forward to a more integrated and prosperous future for both regions.