Estonia Revives Cooperation Agreement Efforts with Saudi Arabia
The Estonian Ministry of Foreign Affairs is renewing efforts to finalize a bilateral cooperation agreement with Saudi Arabia, shifting focus to economic collaboration, specifically in educational technologies. Previous drafts faced scrutiny and concerns regarding Wahhabism and Russian economic ties. Recent political changes and growing business interest in Gulf markets signal a commitment to enhancing bilateral relations and economic opportunities.
The Estonian Ministry of Foreign Affairs has resumed initiatives to finalize a bilateral cooperation agreement with Saudi Arabia, originally proposed last summer to enhance economic collaborations and bilateral relations. Previous discussions with Saudi Foreign Minister Faisal bin Farhan Al-Saud did not result in a signed agreement due to concerns from the Ministry of the Interior, raising issues about importing attitudes connected to Wahhabism, which underpins Saudi governance.
The ministry has reissued the draft, emphasizing economic cooperation, particularly in educational technology, while omitting earlier stipulations related to educational and youth work collaborations that caused security concerns. Priit Kallakas, the head of the economic diplomacy department, indicated the new focus reflects significant Saudi interest in Estonian educational technology without government oversight in youth relations.
The updated draft also adopts a narrower definition of the creative economy, distinguishing it from cultural cooperation. Even though the initial agreement proposed comprehensive cooperation across various sectors, concerns about Saudi economic ties with Russia remain prominent. The Ministry of the Interior proposed adding a clause to mitigate risks of circumventing EU sanctions against Russia.
Kallakas acknowledged the risks faced by the foreign ministry, but clarified that such legal adjustments could not be unilaterally incorporated without EU consensus. He highlighted the increasing interest of Estonian companies in Gulf markets, particularly since the Dubai EXPO in 2020, with notable export growth to Saudi Arabia, which expanded by 40% last year.
Saudi Arabia is actively pursuing its “Vision 2030” program to reshape its international image and role as a global investment center. Despite facing significant concerns regarding human rights violations, it remains a crucial partner for countries like the U.S. Estonia, having identified the need to diversify its export markets beyond the EU, seeks to establish stronger economic connections with the Gulf states, as other nations such as Finland and Sweden have successfully done.
The cooperation agreement with Saudi Arabia aims to facilitate Estonian companies’ access to procurement opportunities, which are anticipated to enhance participation in significant future projects such as the 2030 Riyadh EXPO. Moreover, the agreement provides a foundation for subsequent treaties related to investment protection and double taxation.
Recent shifts in the Estonian government have changed the landscape regarding the agreement. Previous skepticism expressed by former Social Democratic Party vice-chair Riina Sikkut regarding prioritizing ties with the Saudi market has diminished. The government’s revised approach now appears to embrace the potential opportunities that such cooperation could offer, emphasizing the importance of this agreement in fostering future economic relations.
The Estonian Ministry of Foreign Affairs is actively working to finalize a revised cooperation agreement with Saudi Arabia, focusing on economic collaboration and educational technology, while addressing previous concerns. With growing trade relations and increased interest from Estonian businesses in Gulf markets, this agreement is crucial for facilitating further economic opportunities and strengthening bilateral ties. The evolving political landscape in Estonia appears to favor this partnership, recognizing the necessity for diversification beyond traditional European markets.
Original Source: news.err.ee
