The promise and Global-South’s plan for faster, cost effective trade flows is not just a theoretical aspiration, but a practical necessity. Picture: AFP
As MENA (Middle East and North Africa) nations join BRICS+, the region’s strategic position and ambitious infrastructure projects are revolutionising global trade routes.
The global trade landscape, like the global world order is undergoing a tectonic shift and the inclusion of MENA into BRICS with the 2024 expansion which welcomed Iran and The United Arab Emirates (UAE), with Saudi Arabia as an unofficial member has positioned the region at the nexus of global trade corridors. MENA is home to 20-30% of the world’s vital trade routes and chokepoints, solidifying the region's role as a cornerstone in the emerging global economic order.
MENA’s strategic geography is unparalleled. From the Strait of Hormuz to the Suez Canal and Bab-el-Mandeb, these vital chokepoints underscore the region’s indispensable role in connecting continents. Recent developments like the International Multi-Model Transport Economic Corridor (IMEC), have only amplified its significance. This ambitious initiative, announced during the 2023 G20 Summit, envisions a seamless rail, road and maritime network linking the UAE, Saudi Arabia, India and Europe, bypassing traditional routes that run through Iraq and Turkey. The promise and Global-South’s plan for faster, cost effective trade flows is not just a theoretical aspiration, but a practical necessity.
Agreements like the one inked with the UAE and India in early 2024 reflect India’s urgency to operationalise IMEC, turning vision into reality. For India, this corridor is more than a logistical marvel, it’s a gateway to Europe and the Middle East as it pivots towards becoming a global manufacturing hub.
The UAE and Saudi Arabia through integrating their expansive port networks and burgeoning transport infrastructures, position themselves as central nodes in a corridor, minimising reliance on the congested Suez Canal. Beyond logistics, this collaboration highlights a new era of intra-regional cooperation, highlighting an exciting departure from traditional competition. With both nations pursuing ambitious economic diversification plans, the IMEC framework offers a roadmap for shared prosperity.
The trade renaissance however isn’t limited to the IMEC. The broader MENA region is flexing its geopolitical and economic muscles through participation in trade blocs like the Gulf Cooperation Council (GCC), the Greater Arab Free Trade Area (GAFTA) and the Organisation of Islamic Cooperation (OIC). These alliances, coupled with BRICS+ membership, amplify the region’s influence in shaping global trade policy.
One cannot ignore the transformative potential of China’s Belt and Road Initiative (BRI) either. China’s massive infrastructure led vision has already found eager partners in the Middle East. The International North-South Transport Corridor (INSTC), which links India, Iran and Russia, offers alternatives to Europe and Central Asia. Although geopolitical hurdles have delayed its full realisation, the corridor underscores the region’s commitment to diversifying trade routes and partnerships.
Statistics reveal the region’s rising prominence. Trade within Asia, the Middle East and Africa is projected to propel global commerce from $21 trillion today to $32,5 trillion by 2030, according to research from Standard Chartered. Intra-regional trade in the Silk Road could soar up to and account for 70% of global trade once complete, highlighting the growing interconnectedness of these emerging economies.
The inclusion of MENA countries in BRICS+ injects further momentum into this shift. With their vast resources, advanced infrastructure and strategic locations, countries like Saudi Arabia, the UAE and Iran are poised to redefine the trade map. Their active participation in global forums is more than symbolic. It’s a declaration that the economic centre of gravity is tilting decisively towards the Global-South.
As the Middle East and North Africa rise, their ambitions reflect more than just economic aspirations. They embody a new world order where trade is a tool for unity, collaboration, and mutual prosperity. Politics, as they say, shapes markets, but for the first time in decades, the markets are being shaped by regions long considered peripheral.
The pendulum of global trade has swung, and the BRICS+ and MENA partnership is leading the charge. For nations and investors alike, the message is clear: the future is being forged in the corridors of MENA, where ancient trade routes meet modern ambition. The time to engage with this dynamic, forward-looking region is now.
* By Chloé Maluleke: Associate at The BRICS+ Consulting Group Russian & Middle Eastern Specialist