South-South cooperation UAE strategy drives trade gains as GSEF 2025 highlights a US$6.4 trillion development shortfall.
Abu Dhabi: South-South cooperation UAE initiatives took centre stage at the Global South Economic Forum (GSEF) 2025, as global leaders addressed a projected US$6.4 trillion development financing gap by 2030. Held at the Anwar Gargash Diplomatic Academy in Abu Dhabi, the forum called for deeper partnerships among developing nations to unlock shared prosperity.
According to the OECD, while external finance to developing countries reached US$5.24 trillion in 2022, it falls short of the US$9.24 trillion needed annually to meet global development goals. Without structural reforms, this shortfall could surge to US$6.4 trillion by 2030.
UAE Minister of State Ahmed Al Sayegh emphasised that the Global South is no longer peripheral but central to shaping global frameworks. “The Global South today holds unmatched potential as engines of growth and innovation,” he said, calling for stronger trade corridors, digital finance adoption, and inclusive partnerships.
The UAE’s Comprehensive Economic Partnership Agreements (CEPAs) were presented as a successful blueprint of South-South cooperation. These pacts have helped the UAE boost foreign trade by 49%, from Dh3.5 trillion (US$949 billion) in 2021 to Dh5.23 trillion (US$1.42 trillion) in 2024, according to WTO data.
Nickolay Mladenov, AGDA Director General, remarked, “Through CEPAs, the UAE is building bridges where others erect walls.” This sentiment echoed the forum’s spirit of collaboration, with over 100 delegates in attendance from across Asia, Africa, and Latin America.
The Boston Consulting Group estimates that the Global South now contributes 40% of global GDP (including China) and comprises 65% of the world’s population. Trade within this bloc is projected to reach US$14 trillion annually by 2033, growing faster than traditional North-North trade.
Speakers also addressed FDI trends, noting a 7% drop in flows to developing nations. However, greenfield projects remain robust, particularly in Southeast and West Asia.
COGGS Convenor Mohammed Saqib stated, “The world is on the cusp of a new economic order, with the Global South as a driving force.”
