In recent years, relations between the Gulf Cooperation Council (GCC) and Caribbean countries have experienced significant and rapid development. This development aligns with the GCC countries' efforts to diversify their international partnerships, particularly on the economic level, and to enhance their global standing within the existing global system. This article offers insight into the growth of these relations, highlighting indicators of their increasing strength, the motivations driving this development, its significance, and future prospects.
The Association of Caribbean States (ACS) was established in 1994 to promote collaboration and regional integration among Caribbean countries, while also advancing sustainable development in the greater Caribbean region. The Caribbean Community (CARICOM), on the other hand, was founded in 1973 and includes the following members: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Suriname, and Trinidad and Tobago. Additionally, CARICOM includes Venezuela, Cuba, Mexico, Panama, Costa Rica, Colombia, Nicaragua, El Salvador, Honduras, Guatemala, and the Dominican Republic, making it a larger association in terms of membership.
The main distinction between the Association of Caribbean States and the Caribbean Community lies in their respective focuses. While ACS primarily aims to promote cooperation and consultation on common interests in the greater Caribbean region as a whole, CARICOM seeks economic integration and the establishment of a common market, and is comprised of English-speaking Caribbean countries.
Strengthening Relations
Many indications of the growing relationship between GCC and Caribbean countries have emerged in recent years. The most prominent of which are as follows:
1. Approval of the GCC countries and the Association of Caribbean States' joint action plan (2023-2027):
During a joint meeting of foreign ministers held on September 18, 2023, in. New York, the GCC countries and the Association of Caribbean States approved a joint action plan for the period 2023-2027. This plan outlined the key goals and processes for political discussion, trade facilitation, investment promotion, and tourism cooperation.
2. The first UAE-Caribbean Cooperation Forum:
The first UAE-Caribbean Cooperation Forum, organized by the UAE Ministry of Foreign Affairs and the Dubai Chamber of Commerce and Industry, took place in November 2018. The event saw the participation of over 400 senior government officials, business leaders, decision-makers, and investors from the UAE and Caribbean countries, including more than 40 Caribbean ministers. The forum aimed to evaluate new possibilities and potential for strengthening cooperation between the UAE and Caribbean countries. As a result, a framework cooperation agreement was signed by both parties.
During the Abu Dhabi Sustainability Week in 2017, the UAE-Caribbean Renewable Energy Fund was announced. Valued at USD 50 million, this fund implements clean energy projects in Caribbean countries to help reduce reliance on traditional fuels, contribute to providing sustainable energy, and improve climate resilience. Since its inception, the fund has played an active and effective role in strengthening energy security and developing local skills and capabilities in the renewable energy sector. In 2017, the UAE became an observer member of the Association of Caribbean Nations.
3. Saudi Arabia and CARICOM Summit:
The Kingdom of Saudi Arabia and the Caribbean Community (CARICOM) convened their inaugural summit on November 16, 2023, with the aim of strengthening their alliance and forging new frontiers for cooperation, particularly across the domains of economy, investment, trade, tourism, and more. Both sides expressed their commitment to fostering cooperation at all levels.
4. Expansion in trade volumes:
Expansion in the volume of trade exchange between the Gulf states and the Association of Caribbean States. In 2020, goods trade between the two sides amounted to USD 5.8 billion, which increased to $6.5 billion in 2021. Trade between the Gulf Cooperation Council (GCC) and the Association of Caribbean States resulted in a trade deficit of approximately USD 3.7 billion for the Gulf countries. In 2021, the GCC’s exports to the Association of Caribbean States was approximately USD 1.4 billion in 2021, while imports amounted to approximately USD 5.1 billion.
The most important items exported from Gulf countries to the Association of Caribbean States included plastic and its products, aluminum and its products, tobacco and cigarettes, automobiles, and machinery and equipment. On the other hand, the items imported from ASEAN countries primarily consisted of gold, precious metals, precious stones, automobiles, machinery and electrical appliances, and medical, optical, and photographic devices.
Mutual Motives
The Gulf and Caribbean blocs' shared desire to deepen relations is driven by a variety of factors, the most prominent of which are as follows:
1. Taking advantage of both blocs' significant potential and position:
Despite their small size in terms of economy and population, the Caribbean countries hold significant importance for the Gulf countries, seeing how they form an influential voting bloc that can support Gulf efforts in voting on events affecting the Gulf Cooperation Council countries. For instance, during the first summit between Saudi Arabia and the Caribbean Community in Riyadh this November, the latter announced its support for the Kingdom's bid to host Expo 2030. The support represents a significant support element for Riyadh in this endeavor.
Caribbean countries also play an important role in promoting regional cooperation and advancing collective action on issues of mutual interest, such as trade, climate change, and sustainable development. This was emphasized by Saudi Foreign Minister, Prince Faisal bin Farhan, during a ministerial meeting of the group in Guatemala last May.
2. Strengthening joint economic cooperation:
In 2022, the GDP of the Association of Caribbean States (ACS) reached approximately USD 2,491 billion, accounting for roughly 2.4% of the global economy. However, there is a significant disparity in the size of the economies within the ACs. For instance, Mexico's GDP alone amounts to USD 1,425 billion, making up around 57% of the size of the ASEAN economy as a whole. The economic size of the ASEAN countries remains crucial in the Gulf countries' pursuit of diversifying economic partners and international investment prospects.
The Arab Gulf states, on the other hand, hold great importance for Caribbean countries, given their huge potential. In 2021, the gross domestic product for the GCC countries increased by approximately 18.5%, reaching about USD 1.68 trillion, compared to USD 1.42 trillion in 2020. Consequently, their share of the global economy rose to 1.75% this year, ranking 12th globally. Moreover, the GCC countries occupy a unique position as the world's largest provider of fossil energy supplies and have a substantial volume of foreign investment. Their global economic and strategic positions have led to invitations to join significant global economic groups such as BRICS and the G20.
The Arab Gulf states are also among the world's leading suppliers of economic and development aid, with the Caribbean region being a significant recipient of such assistance. For instance, the UAE has provided significant development and humanitarian aid to Caribbean countries, particularly those affected by crises or disasters. The King Salman Humanitarian Aid and Relief Center has contributed over USD 1.3 billion in aid to these countries, while the Saudi Fund for Development is involved in various projects worth USD 242.6 million in the Caribbean region across multiple sectors.
Promising Prospects
The joint action plan (2023-2027) between the Gulf Cooperation Council countries and the Association of Caribbean States provides an important framework for increasing the volume of trade, investment, and future cooperation, as well as the participation with businessmen and regional and international organizations, to meet investment needs and business opportunities, including transportation and logistics services.
The final statement issued by the joint ministerial meeting of the Gulf Cooperation Council and the Association of Caribbean States in September highlighted the strong desire to strengthen relations between the two regions, particularly in the economic and climate fields. The statement emphasized the growing significance of the GCC and ASEAN regions in the global economy and the potential contribution of their relationship to this trend.
At the Saudi Caribbean Summit, the participating countries agreed to enhance bilateral and multilateral relations by exploring sustainable development opportunities, boosting trade and investment flows, and providing mutually beneficial opportunities for joint investments. The focus areas include sustainable infrastructure, renewable energy sources, trade, tourism, logistics, and communication.
In the field of climate action, the joint ministerial meeting between the Gulf Cooperation Council and the Association of Caribbean States in September commended the UAE for hosting COP28. The ministers endorsed the COP28 presidency's strategy, which aims to accelerate the achievement of a just and orderly transition, reform climate finance, prioritize lives and livelihood, and provide comprehensive and integrated support.
The Gulf countries, particularly the UAE, are actively working to support the Caribbean countries' efforts in the field of climate action. In September 2018, the UAE announced a donation of grants and financing worth $34.5 million for the implementation of renewable energy projects in the Caribbean countries. These projects were designed to withstand Category 5 hurricanes.
The outcomes of recent meetings between the Gulf Cooperation Council and the Association of Caribbean States, as well as their joint action plan for 2023-2027, indicate that Gulf-Caribbean relations will continue to expand in the near future.
