Saudi Arabia has made a bold decision to strengthen regional economic integration and promote private sector collaboration throughout the Arab world by doubling its financial contribution to the Union of Arab Chambers (UAC).
The UAC will be much better equipped to deliver programmes and initiatives that empower the Arab private sector and promote closer economic ties among member states thanks to the increased support, the Federation of Saudi Chambers announced.
The decision coincides with growing calls for greater intra-Arab cooperation and highlights the Kingdom’s expanding leadership role in regional economic affairs.
Arab nations were urged to diversify and boost intraregional trade in a 2023 report by the United Nations’ Economic and Social Commission for Western Asia, which cautioned against dwindling exports and excessive dependence on small markets.
Despite having similar economic interests, intra-Arab trade accounted for only 13% of the region’s overall foreign trade by the end of 2024. FSC President Moejeb Al-Hwaizy called this percentage “modest” when compared to other international economic blocs. The UAC elected Al-Hwaizy as its first vice president during its 135th session in Qatar.
Saudi Arabia’s increased contribution, according to the FSC, is a reflection of its “strategic responsibility” as the Union of Arab Chambers’ biggest financial backer and incoming president.
“This is an extension of the federation’s role in providing local, regional, and global support to the private sector,” the statement read.
The Kingdom’s leadership in the Union of Arab Chambers, which was established in 1951 and consists of chambers from every Arab League member state, demonstrates its larger goal of encouraging coordination among leaders of the private sector, facilitating cross-border investment, and advancing joint Arab economic action.
Through strategic cooperation and business partnerships, the FSC and UAC are attempting to increase intra-Arab trade and increase access to third markets, with a number of joint initiatives already in progress.
Saudi Arabia, the only Arab nation in the G20 and the largest economy in the region, is demonstrating its continued commitment to promoting solidarity and resilience in a rapidly changing global trade environment by increasing its influence in Arab economic institutions.