ASEAN and GCC issue joint declaration on economic cooperation

The member states of the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (ASEAN) affirmed, at the conclusion of the second summit held in the Malaysian capital Kuala Lumpur, their desire to enhance economic cooperation between the two blocs. The aim is to deepen their economic partnership and establish connections, particularly in priority areas for diversifying supply chains.

The declaration referred to the joint statement issued at the first GCC–ASEAN Summit held in Riyadh, Saudi Arabia, on 20 October 2023, where both parties agreed to explore cooperation on key economic partnership priorities. These include advancing regional market integration, sustainability and decarbonisation, digital transformation and inclusion—especially in the context of small and medium enterprises—alongside public-private sector engagement and people-to-people connectivity.

The declaration underscored the economic potential of a Free Trade Agreement between ASEAN and the GCC, and the possibility of deepening economic ties through sectoral cooperation, especially in areas of mutual economic benefit such as finance (including Islamic banking), food, and tourism.

The declaration endorsed the ASEAN–GCC Framework of Cooperation (2024–2028), which outlines joint actions and activities in areas of mutual interest across political, security, economic, social, and cultural dimensions, to unlock the full potential of cooperation between the two blocs.

It highlighted the opportunity to deepen economic partnership, noting that in 2023 the GCC was ASEAN’s seventh-largest trading partner with total trade amounting to USD 130.7 billion, and the sixteenth-largest source of foreign direct investment at USD 390.2 million. Trade volume is projected to grow by an average of 30 percent to reach USD 180 billion by 2032.

The declaration expressed a shared intention to strengthen regional economic integration and to work together in facing global challenges by promoting trade and investment flows, creating an enabling environment, and identifying mutually beneficial investment opportunities. This aligns with the cooperation framework between the two sides, including enhancing sectoral cooperation, conducting a joint feasibility study for a potential Free Trade Agreement, and launching free trade discussions.

It further stated that regional economic integration could be advanced by exploring cooperation and information exchange in the digital economy, and by expanding cooperation in areas such as agriculture and food security, hydrocarbons, green, clean and renewable energy, advanced technologies, healthcare, manufacturing, cultural tourism, standardisation, sustainable infrastructure development, fintech and services—such as Islamic finance and halal products and services—making full use of the enormous potential of ASEAN and the GCC.

The declaration also called for increased public-private sector engagement and stronger business ties between the two regions, using existing and new platforms—physical and virtual—such as trade missions, business matchmaking events, and experience sharing to foster better understanding of economic, regulatory and legal frameworks, as well as business dialogue. It encouraged greater private sector participation on both sides, especially among small and medium-sized enterprises, through economic cooperation, technical assistance, and capacity-building for entrepreneurs and start-ups, with a special focus on empowering women, youth, and marginalised communities to compete regionally and globally.

It further highlighted the need to enhance coordination and communication between governments, business associations and the private sector from both regions in the context of ASEAN–GCC economic relations. It recommended sharing expertise in the use of geographic information systems, smart transport systems, and artificial intelligence, as well as exploring the economic and social benefits of linking rail and road networks between GCC countries and ASEAN members. The declaration called for encouraging private sector participation in land transport sectors.

Finally, the declaration called for increased exchange between GCC and ASEAN member states to facilitate investment opportunities in priority sectors such as energy, advanced technologies, manufacturing, logistics, and tourism.

It expressed a shared aspiration for a more integrated and prosperous future, while stressing the importance of leveraging the ASEAN–GCC economic relationship and maximising economic opportunities to achieve sustainable growth that benefits the peoples of both regions, in line with efforts to enhance regional economic integration.

This is an unofficial English version of an Arabic report. To view the official Arabic text, click here.