International Trade

The United Arab Emirates (UAE) is intending to establish a new trade bloc, a strategic and interconnected initiative aimed at achieving multiple goals on both the national and the international level. This trade block should not be interpreted in isolation, rather as part of the UAE’s wider economic and geopolitical strategy, which reflects the changing and evolving dynamics of the global trade landscape.     In a fragmented globalization era, where competition and integration attempt significantly increase between the regional trade networks and the multilateral systems, the UAE is poised to maintain its influence and relevance by positioning itself at the forefront of the global landscape. This approach will benefit the UAE on different levels, including advancing domestic priorities while simultaneously enhancing its leverage within the evolving global economic power. Nevertheless, the bloc’s success is not completely guaranteed, as it will need to navigate significant regulatory, infrastructural, and political barriers to translate its potentiality into tangible outcomes.

The Strait of Hormuz – a narrow, indispensable artery through which nearly a fifth of the world’s oil and a third of its liquefied natural gas (LNG) flows– stands on a cliff. As geopolitical tensions intensify across the Middle East, fuelled by escalating Iran-Israel tensions and the shadow of direct United States (U.S.) involvement, the once-unthinkable threat of its closure looms larger than ever with Iran’s threat to close or block the Strait. In spite of the catastrophic global implications of such an act, the volatile depths of this potential crisis will be explored, unravelling the motives that could push Iran to choke this global lifeline, exposing the monumental security and geopolitical fallout, and revealing the catastrophic economic shockwave that would consume nations far beyond the region.