Post Pandemic Integration: US and UK Build Relationships in the Middle East

In recent years, even prior to the global Covid-19 pandemic, there have been ongoing integration efforts between Middle Eastern countries and the US, UK and Europe. The pandemic, with its shared economic concerns for all nations, has served to highlight the importance of this integration and to illustrate the power of cooperation between nations.

The island nation of Bahrain, for instance, has continued to focus on economic reforms aimed at reducing the budget deficit. In this process, ties to the United States have been highlighted and emphasized in official policy actions. His Royal Highness, Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister of Bahrain recently met with the Vice President of the United States, Kamala Harris at the White House in Washington, DC. The purpose of this meeting was to emphasize the long-standing alliance between the two nations. This is, perhaps, best illustrated by a five-decade diplomatic relationship, and the presence of the United States’ Fifth Fleet headquarters-the largest US base in the region- in Bahrain. In fact, the US established a naval presence in 1948, making their military presence on the island more than 75 years old. During his meeting with the Vice President, Prince Salman bin Hamad Al Khalifa stressed his nation’s commitment to an international rule-based order which serves to protect global security. The leaders discussed the newly developed US Trade Zone in the Kingdom of Bahrain, the growing relationship between the two countries, as well as a set of new strategic efforts focused on economic growth and development.

Perhaps another way to illustrate the historical cooperation between these nations is an examination of Prince Salman’s own educational background. His Royal Highness Prince Salman was educated in Bahrain at an American school (named the “Bahrain School”), and he subsequently attended the American University in Washington DC, graduating with a BA in Public Administration. He then went on to pursue postgraduate studies at the University of Cambridge, where he earned a Masters in Philosophy and History. As such, Prince Salman’s extensive educational background is a testament to the economic and social integration between the US and Bahrain, as well as the US and Gulf/GCC region as a whole.

In addition, Bahrain maintains a comprehensive free trade agreement with the United States. This allows for “free trade” across an extensive category of goods and services. In addition, US citizens can establish companies and work in Bahrain with almost no restrictions, with the same rights as most local citizens. In addition to this free trade agreement between the two nations, Bahrain signed six agreements on industry, logistics and space sciences with the United States during the aforementioned visit of Bahrain’s Crown Prince to Washington, DC. The agreements included partnerships and memoranda of understanding between several government bodies and companies in both countries.

Prior to independence, Bahrain was a “British Protectorate”, and was subject to British rule. As such, the United Kingdom also maintains extensive ties with Bahrain till date, operating a naval base on the island, while also maintaining extensive trade agreements with the small island nation.

The United Arab Emirates, similarly, has astutely recognized the vital need for economic and social integration with the US, Europe and the UK, in particular. Abu Dhabi is the only city in the world outside North America, where US Customs and Border clearance is completed at the airport outside of the United States. After you have cleared customs and immigration for the US in Abu Dhabi, there is no need for further checks when you arrive in the US. This illustrates the extent of the UAE’s integration with the United States.

The UAE also maintains significant ties to the UK as well. Through bilateral platforms such as the UK-UAE Business Council, the Joint Taskforce, and the Joint Economic Committee, the UAE and UK have identified and leveraged joint opportunities for economic growth. Over 5,000 UK businesses operate within the UAE to date, bringing billions into the economy. The UK is the UAE’s largest source of foreign direct investment, further illustrating the significance of the UAE’s relationships with the United Kingdom. As this positive trend toward integration continues, both socially and economically, it is foreseeable that this type of expansion will continue to reap vast benefits for the Middle East and its growing list of economic partners for decades to come. The UAE is also a former British Protectorate, like Bahrain.

Lastly, since the pandemic years began, the UAE and Bahrain signed on to the “Abraham Accords”,  and thereby established official relations with Israel. Through these bilateral arrangements, the UAE and Bahrain have established diplomatic, trade, transportation and other cooperative ties with the State of Israel-another close ally of the United States and the UK. As such, it can only be assumed that social and economic integration between the English-speaking west, namely the United States and the United Kingdom, (along with other predominantly English speaking allied countries) will continue. English is already a widely spoken language in most Gulf/GCC countries, and this makes the region an attractive prospect for businesses based in former commonwealth nations and common law jurisdictions in particular.

It should also be noted that both Abu Dhabi and Dubai have specialized commercial courts established for the adjudication of disputes in accordance with an English common law legal framework, where proceedings are also held in English. These courts are often the jurisdiction of choice in commercial disputes between international businesses trading or investing in the region. The UAE also maintains world renowned arbitration halls, such as the Dubai International Financial Center-London Court of International Arbitration.

Overall, the region is becoming more integrated with the English speaking West, and has maintained a high degree of such social and economic integration for a great deal of time. Therefore, the region does offer significant opportunities for US and UK businesses in particular, who are looking for a hub to manage investments or operations in the Middle East, Africa, the wider Asian regions, or even Europe.