10 min read — Analysis | Middle East | EU | Trade | Energy

Energy, Diplomacy, and Change: The EU-GCC Partnership in a New Geopolitical Era

After decades of unsuccessful attempts at building closer ties, the EU and the GCC are now entering a new era of partnership. Driven by the urgent need for energy security and stability in a changing world in today’s volatile geopolitical landscape, the EU and GCC have strengthened their bonds in order to build resilience and promote mutual growth.
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By Nagihan Toka — Middle East Correspondent

Edited/reviewed by: Sam Volkers | Damian Wollai

December 28, 2024 | 11:00

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The Gulf Cooperation Council (GCC) was founded in 1981 to foster a unified economic, military, and cultural space among its six member states: Qatar, Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates. Eight years later, in 1989, the EEC – the predecessor to the EU – and the GCC formalized their relationship, prioritizing economic cooperation, climate action, and energy collaboration. The MENA-region (Middle East and North Africa) holds strategic importance for Europe due to its energy resources, trade routes, and opportunities for security cooperation. The Gulf states, with their strategic location, strong economies, and rich energy reserves, form valuable partners for the EU in the region. Additionally, ensuring stability in the region is crucial for controlling migration flows to Europe and combating terrorism. However, despite their long-standing relationship, the development of EU-Gulf relations has remained limited, hampered by cultural and political differences. 

A difficult relationship

Efforts to strengthen EU-GCC relations, initiated periodically since the 1990s, were repeatedly hindered by instability in the Middle East and the Gulf region. Throughout the 1990s, the relationship between Europe and the Gulf states was tested by external events, notably the 1990-1991 Gulf War, which reinforced Europe’s cautious approach to security in the Gulf. In 2011, the Arab Spring provided an opportunity for renewed cooperation and highlighted the need for stronger EU engagement with the MENA-region in areas such as security, governance, and economic reform. Furthermore, while the chaotic environment also seemed to offer an opportunity for deeper collaboration with the GCC, structural differences and stalled free trade negotiations prevented significant progress. Ultimately, the Arab Spring’s political upheaval highlighted the challenges of building deeper ties. 

As a result of the substantial differences between the EU and the GCC with regards to their views on matters such as human rights and democracy, the two alliances have clashed on numerous occasions. A good example of this is the EU’s enduring uneasiness with Saudi Arabia’s controversial approach to human rights. Also, the economies of the GCC countries are largely dependent on oil and natural gas exports, while the EU has a more diversified economy and trade structure, making the alignment of trade policies challenging. In particular, disagreements over customs tariffs and taxes have stalled negotiations.

Another major challenge to the expansion of the EU’s presence in the Gulf has been its inability to establish itself as a credible security partner. This challenge stems from the EU’s limited military capacity and the absence of a unified defense strategy, as seen in the shortcomings of the Common Security and Defense Policy (CSDP) in areas such as financing, intelligence, and logistics. Moreover, Gulf states have historically relied heavily on the United States for security, leaving little space for the EU to play a meaningful role in the region’s security architecture. The EU’s security policies often diverge from U.S. strategies, with unilateral decisions by the U.S. undermining the EU’s efforts toward strategic autonomy. These factors, combined with the Gulf states’ skepticism toward EU initiatives, have significantly hindered the EU’s ability to position itself as a reliable security provider in the Gulf, reflecting broader limitations in its engagement across the MENA region. In addition, more neutral countries such as Kuwait and Oman have steered clear of deeper cooperation with the EU, preferring to focus on their role as diplomatic mediators in the region.

The impact of the Russia-Ukraine conflict

In 2022, dynamics changed after the fallout of the Russian invasion of Ukraine. Moscow’s stance toward the European Union shifted adversely in response to the material and moral support provided to Ukraine by EU member states. Following declarations of support to Ukraine from most EU nations, Russia launched a hybrid war against the EU, weaponizing its energy exports to pressure European states. In response, the EU has started looking for more reliable energy partners. The Union has made strides to improve its work in renewable energy and its relations with the Gulf countries. The Gulf countries have also found new opportunities for investment and cooperation within the scope of the EU’s energy agenda. This has led to the establishment of closer diplomatic relations between the EU and the GCC and efforts to boost cooperation in the fields of energy, economy, and security.

Furthermore, the EU has strengthened its presence in the Gulf region through its involvement in addressing the crisis in Yemen. As a result of its civil war, Yemen is now struggling with one of the world’s most serious humanitarian disasters, with millions of Yemenis facing hunger, epidemics and displacement due to violence, economic collapse and the destruction of (health) infrastructure. For the other Gulf countries, the crisis is of great importance, since it directly impacts the region’s stability and security. As the conflict in Yemen continues, it has created spillovers, spreading extremism, creating refugee flows, and disrupting trade routes, all of which pose a threat to the GCC states. The EU’s financial aid, development projects, and diplomatic engagement help mitigate these risks by addressing the humanitarian effects of the war and supporting conflict resolution. For the GCC, the EU’s involvement complements their own efforts to stabilize Yemen, ensuring that international attention and resources are directed towards shared efforts aimed at maintaining regional security.

The 2024 EU-GCC Summit: A historical milestone

The EU-GCC summit, which took place in Brussels for the first time on 16 October 2024, was of historical importance. The summit helped connect the two regions and served as a forum for increasing cooperation and coming to mutual understandings about important regional and global issues. It was argued that the relations should be strengthened and the two regions should act together internationally. One of the most pressing topics at the conference was energy security. During the conference which also addressed the climate crisis and renewable energy, the GCC and EU announced their commitment to deal with these crucial issues. Statements were also made that the violent conflicts in the regions should be resolved through the promotion of unity and peace. Emphasizing the United Nations Resolution 2735, it was discussed that the struggle between Israel and Hamas should end with a ceasefire. At the end of the summit, it was decided that the region’s heads of state and government should meet every two years, with the second EU-GCC summit to be held in Saudi Arabia in 2026. 

Conclusion: A partnership for the future

Evaluating the existing relations of these two regions, a strategic partnership is essential for both the EU and the GCC. Through the partnership with the EU, the Gulf states gain reliable diplomatic and economic partners, while simultaneously, the EU gains a close relationship with an energy-rich region, making it less dependent on Russian energy. Although cultural and political differences long hindered cooperation, both sides have now taken steps towards mutual understanding and learning. Moving forward, the parties aim to revive and strengthen their cooperation through renewed diplomatic negotiations. This partnership, strengthened by shared economic, energy, and security interests, signals a shift in East-West relations as pragmatic cooperation takes precedence over historical divides. Through continuous dialogue and joint initiatives, the EU and GCC are a model of collaboration and deepening diplomatic relations that reflects their interdependence in an increasingly interconnected world. While challenges remain, this new era of EU-GCC collaboration has the potential to reshape traditional alliances and foster resilience in the face of global instability.

Disclaimer: While Euro Prospects encourages open and free discourse, the opinions expressed in this article are those of the author(s) and do not necessarily reflect the official policy or views of Euro Prospects or its editorial board.

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