The New Era Of The Saudi-Emirati Relationship

The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are the dominant economic players in the Middle East and North Africa (MENA) region. UAE and Saudi Arabia, which share a 300-mile border, have a long history of friendship.

DP World, an Emirati multinational logistics company based in Dubai, will operate a logistics park at the Saudi Arabian port of Jeddah in 2022, according to the UAE’s port authority.

The Kingdom’s port authority on Monday invited the media to the contract signing on June 19. According to the invitation, it was DP World’s first logistics park in Saudi Arabia.

In 2021, DP World was awarded a 30-year concession by the Saudi Ports Authority, Mawani, for the management and development of the Jeddah South Container Terminal at Jeddah Islamic Port, the largest of nine ports in Saudi Arabia.

DP World operates a container terminal in Jeddah Islamic Port
DP World is owned by the government of Dubai and is one of the world’s largest port operators. DP World already operates a container terminal in Jeddah Islamic Port where the park will be located. Jeddah Islamic Port can handle 2.4 million shipping containers each year. It is also the main import destination for the UAE.

Global success
Developing the logistics park at Jeddah will contribute to global success and achieving Saudi Vision 2030. It will also be instrumental in facilitating greater access to local and international markets.

The current project of logistics parks is in line with Saudi Arabia’s strategy to develop its port infrastructure and expand the maritime logistics and transportation potential. Saudi Vision 2030 was inspired at least in part by the UAE’s successful diversification into areas like tourism and transportation logistics.

The Global Entrepreneurship Monitor (GEM) also ranked the UAE 1st globally in its Global Entrepreneurship Index 2022, which means the UAE is the best country to start a business.

UAE-Saudi Arabia relations
The UAE and Saudi Arabia’s friendship grew after the Arab Spring uprisings of 2011 when monarchs on both sides recognized the threat posed by popular pro-democracy movements.

Saudi Arabia and the UAE are also simultaneously seeking to develop tourism, financial services, petrochemicals, and technological sectors. Both countries have built their economies on oil and expatriate labor.

In recent months, both countries have been at odds with the United States over Washington’s request for them to increase oil production and help counter the negative effects of the US ban on Russian oil imports.