Cooperation key to revival of global trade

The application of technology, growth of cross-border services, innovation in trade policy and trade-related infrastructure development can serve as catalysts for global trade, which was battered by protectionism and COVID-19, according to a report released by Dubai’s DMCC free zone on Thursday.

According to the “Future of Trade” report, geopolitical tensions and economic recovery from the COVID-19 pandemic will define the trade landscape of the 2020s.

“While the pandemic has caused the fastest and deepest economic shock in history, it has already significantly shaped the future of trade by accelerating trends such as digitalization, the recalibration of global supply chains and a reconsideration of the role of national security in trade policy,” it said.

Ahmed Bin Sulayem, executive chairman and chief executive officer of DMCC, said global trade needs cross-border cooperation for a revival, which can be facilitated by technologies.

“Despite the evident economic uncertainty of the time, one thing is certain – the future of trade, and indeed the future of the economic recovery, relies heavily on global cooperation. Finding common ground and collectively making the case for international trade will be key determining factors of success,” he said.

Feryal Ahmadi, chief operating officer at DMCC, said global trade order is at a tipping point in 2020 that will define the decade ahead.

“If businesses and governments are willing to collaborate to overcome some of the barriers at hand, the outcome will be a positive one. Innovation, not just in supply chains, but in the way trade policies are shaped and partnerships are formed, also has a crucial role to play here,” Ahmadi said. “Ultimately, the key to boosting global trade comes down to collaboration and the willingness to forge new ways of working together.”

DMCC is an entity owned by the Dubai government which runs the DMCC Free Zone in Dubai. So far, more than 540 Chinese companies have established a presence in Dubai’s free trade zone, including industry leaders such as Hisense, China Petroleum and Chemical Corp, China Harbour Engineering Co and Power Construction Corp of China.

In January, the China Business Center was established under the DMCC, with a dedicated mandarin-speaking team to assist Chinese companies set up in the zone.