Director of Arab Planning Institute Calls for More Flexible Arab Policies to Face Trade and Finance Transformations

Dr. Adel Al-Waqian, Director General of the Arab Planning Institute in Kuwait, called on Arab countries to move beyond merely monitoring the transformations occurring in the global economy to anticipating them and preparing early through more flexible policies, more adaptable institutions, and more productive, diversified, and competitive economies.

This came during Al-Waqian’s opening address at the scientific conference on “Finance and International Trade under the New Protectionism,” held at the Mohammed bin Rashid School of Government in Dubai. The event is a collaboration between the Arab Planning Institute, the school, and the Gulf Consultant for Consulting and Training in the UAE.

Al-Waqian stated that the global economy is undergoing profound and rapid transformations that have impacted trade and investment flows, capital movements, and global supply chains. He pointed to the resurgence of trade protectionist policies and considerations related to economic security at the forefront of the international landscape.

He clarified that the value of imports by the Group of Twenty (G20) countries subject to trade restrictions reached approximately 22% of their total imports, exceeding four trillion dollars, according to estimates by the World Trade Organization. Meanwhile, growth in global goods trade is expected to slow from 4.6% in 2025 to 1.9% this year.

He added that foreign direct investment (FDI) rose to 1.6 trillion dollars in 2025; however, more than 80% of it was concentrated in just 20 countries, reflecting an uneven recovery and a widening gap between advanced and developing economies.

Al-Waqian explained that protectionism in its new form is no longer limited to tariffs and direct import restrictions. It now includes technical, environmental, and health standards, regulatory measures, support for local industries, restrictions on investment and technology, data flow controls, as well as regulations related to supply chains and security considerations.

He noted that Arab economies are not immune to these transformations, pointing out that intra-Arab exports accounted for only about 14% of total goods exports in 2024. This makes a significant portion of Arab trade dependent on external markets and vulnerable to the restrictions and changes affecting them.

He highlighted that FDI inflows to Arab countries declined by approximately 10% in 2025, reaching nearly 119 billion dollars, while global inflows rose by 6%. Conversely, he emphasized that these transformations present opportunities that Arab economies can leverage to enhance their competitiveness.

Al-Waqian stressed that the issues discussed at the conference are no longer isolated academic topics disconnected from reality; they have become part of the economic environment in which countries, institutions, and companies operate. This requires rethinking policies, tools, and mechanisms for engaging with the global economy.

Al-Waqian expressed his hope that the conference’s proceedings would yield practical, actionable insights and recommendations for policymakers and relevant institutions, enhancing the ability of Arab economies to respond to transformations, anticipate the future, and convert current challenges into opportunities for development, integration, and competitiveness.

In a statement to KUNA after the conference’s opening, Al-Waqian said the scientific conference, organized by the Institute in collaboration with the Mohammed bin Rashid School of Government, focuses on “new economic protectionism” and its impact on trade and commercial exchanges between countries.

He added that the conference discusses, over two days, the resilience of Arab economies in the face of new protectionism, trade financing, export diversification, and new forms of trade barriers, alongside the role of governments in supporting productive sectors and adapting to declining external demand.

He noted that discussions also cover the differing impacts of these transformations on Maghreb and Mashreq Arab countries and Gulf Cooperation Council (GCC) states, as well as trade diplomacy, economic integration, and the possibility of reaching solutions that help mitigate protectionist restrictions.

Regarding the conference outcomes, Al-Waqian said that recommendations resulting from dialogue sessions would be made available via the website, affirming the Institute’s readiness to cooperate with Arab countries to benefit from them.