Is the establishment of an Arab economic block easy on the ground?

In the previous article, we talked about the importance of the Strait of Hormuz for international commercial vessels, as well as for the countries bordering the Arabian Gulf, as well as the proposed and alternative solutions to the Strait of Hormuz. And also the political weight and the weight of the Kingdom of Saudi Arabia economically, politically and religiously, and it is possible that the Kingdom leads regional or Arab blocs. Observers of Arab affairs note that there is a great deal of literature and research on Arab integration in all its aspects since the creation of the League of Arab States, but what worries me is whether the creation of is an Arab economic bloc project easy on the ground?

Economist Béla Alexander Balassa defined economic integration as “the process of total elimination of tariff barriers between different national economic units”. As for the economist “Hoffman”, he says that for economic integration there must be equality of prices of goods and factors of production in the integrative region. The definitions of integration are numerous and depend on the schools to which the economist belongs.

Economic blocs are important in our world today, as integration, production and open markets between member states contribute to the prosperity of peoples and continue to be steadfast and competitive in the face of fierce global economic blocs . We also know that the League of Arab States was established in 1945 AD, and under its umbrella, the Arab Economic Council was established in AD 1950, as well as the idea of ​​establishing the Arab Common Market in AD 1964. , as well as the conclusion of the Treaty of Common Defense and Economic Cooperation in 1990 AD, which refers to the achievement of the objectives of common defense of Arab countries and cooperation between them to strengthen their economies. If you follow the agreements made between the member states, you will find that there is a desire for economic cooperation, and the proof is the number of trade agreements between the Arab countries, and this comes due to the geographical or cultural proximity, or the similarity or homogeneity of economic structures, but the most important thing is that they have a desire for economic cooperation and the work of an economic force that rivals other blocs.

It is easy, if the Arab economic bloc is realized, to compete with all existing global blocs and to have advantages which are not limited to such as abundance of production, increased demand for products, increase in number consumers, creating more employment opportunities, protecting against global economic crises, improving competitiveness, increasing foreign direct investment opportunities and offsetting strengthening of negotiating power in international economic forums.

It is possible that the Arab economic bloc will take serious steps, such as the path of the European Union. The European Union has not been united day and night. On the contrary, political leaders worked to unite it, including the unification of the economic unit, until it became one of the most powerful economic blocs in the world and has grown over the years. from coal, steel, mines and other unions to a customs union then to a free trade area then to an economic unit which depends on the implementation of clear and unified policies in the productive, financial and monetary policy, then political orientation to support European economic integration. We see today that there is a currency and a central bank in Germany, which was established in 1998 AD.

I hope that there will be an Arab economic bloc even in the near future, because the wishes can come true if there is a desire and the creation of an Arab political will for unity and development, because our The situation is much better than that of the countries of Europe and the components and the common points that we have are multiple for an effective integration and competition on a global scale where we have a common language, interests and history. I hope, at least now, and before addressing the issue of Arab economic integration, which consists of working on a free trade area like NAFTA, to expand the establishment of free trade areas. between Arab countries, to work on electricity interconnection projects, natural gas transport, and establish essential ports that contribute to world trade and support Arab investors A review of some Arab investments and interest in the industrial sector and agricultural.

Finally, establishing an Arab economic bloc is not easy on the ground for a simple reason which is the absence of a policy, a clear vision and a unification of political efforts. If you want to have an economic bloc, there has to be a political consensus. support the process of any economic integration.

I hope and wishes are legitimate and can come true to see an economic union, consensus and cooperation among the Arab countries, which help and accelerate the development and rebirth of each country, as well as help the Arab peoples and the Arab countries. render in the best conditions. I am going to address a wider circle and move towards an Islamic bloc, the question is: is establishing an Islamic economic bloc project easy on the ground?

* Quoted from Saudi Mall newspaper