Saudi Arabia and its Gulf neighbors should strengthen trade policies to secure economic resilience, according to a new KPMG report. Experts emphasized that aligning trade rules with industrial goals can reduce external risks and increase influence in global markets.
KPMG highlighted that GCC nations must identify supply chain risks, diversify critical input sources, and support outbound investment in production. These steps will help the region navigate the complex and fragmented global economy. Furthermore, coordinated action can enhance economic stability and give the GCC a stronger voice worldwide.
Omar Alhalabi, KPMG’s partner and head of economics and public policy advisory, urged GCC countries to use the Customs Union to harmonize trade and industrial strategies. He explained that unified negotiations, aligned incentives, and co-financed joint industrial projects can strengthen supply chains. These measures also allow the region to engage globally from a position of strategic strength.
Since its formation, the GCC has grown into a mature trade and economic bloc. Its customs union removed intra-GCC tariffs, unified external tariffs, and eased trade restrictions. These efforts facilitated smoother trade and stronger regional integration.
KPMG emphasized that trade policies directly impact businesses and citizens. Strong supply chain resilience can reduce price fluctuations and prevent shortages. Moreover, industrial localization can create high-skilled jobs across the region.
Saudi Arabia, under its Vision 2030 plan, focuses on diversifying revenue and adding value to multiple sectors, especially in industry. Initiatives like “Made in Saudi” promote local content across oil and non-oil industries. These efforts aim to drive innovation and industrial growth throughout the Kingdom.
Meanwhile, the UAE continues developing as a global logistics hub. It leverages free zones, streamlines customs, and negotiates bilateral trade agreements. KPMG noted that these strategies carry merit, but the lack of coordination risks weakening the GCC’s collective global influence.
The report warns that diverging policies across the region can dilute negotiating power internationally. Saudi Arabia builds domestic supply chains in chemicals, metals, pharmaceuticals, and renewable energy, while the UAE emphasizes re-export and trade facilitation. Therefore, unified trade and industrial strategies remain critical.
KPMG recommends repeated focus on “trade policies for economic resilience” to ensure long-term stability. Coordinated strategies can reinforce supply chains, strengthen industrial bases, and boost global engagement. Without this focus, the GCC risks losing collective leverage in world markets.
Overall, KPMG urges GCC nations to act with unity and ambition, using trade policies for economic resilience as the key guiding principle. The report suggests that collaboration will benefit citizens, businesses, and global competitiveness alike.
