Estonia Pursues Bilateral Cooperation Agreement with Saudi Arabia

The Estonian Ministry of Foreign Affairs is renewing efforts to sign an economic cooperation agreement with Saudi Arabia after previous delays due to security concerns. The updated agreement focuses on educational technologies and omits youth work, addressing prior issues raised by Estonia’s Ministry of the Interior. Despite concerns over Saudi economic ties with Russia, the agreement seeks to bolster trade and cooperation in various sectors.

The Estonian Ministry of Foreign Affairs has reinitiated efforts to establish a bilateral cooperation agreement with Saudi Arabia, aimed at enhancing economic collaboration and nurturing stronger ties. Initially proposed last summer, the agreement was not signed during Saudi Foreign Minister Faisal bin Farhan Al-Saud’s visit due to concerns raised by the Ministry of the Interior regarding issues surrounding education and youth work cooperation.

The current iteration of the agreement, circulated on March 5, focuses primarily on economic cooperation rather than youth initiatives. Priit Kallakas, head of the ministry’s economic diplomacy department, has confirmed that the revised text emphasizes collaboration in educational technologies, reflecting Saudi interest in engaging with Estonian firms in this sector. The ministry opted to eliminate youth work coordination from the agreement to mitigate risks associated with internal security concerns.

Additionally, the revised draft shifts its focus from cultural cooperation to the creative economy, maintaining its commitment to economic cooperation across sectors such as ICT, green technologies, and health projects. Nonetheless, the Ministry of the Interior remains worried about Saudi Arabia’s economic ties with Russia and has proposed the inclusion of a re-export clause to preclude evasion of sanctions. Kallakas acknowledged the risks but indicated that such legal stipulations cannot be unilaterally appended within the current framework of the agreement.

Estonian companies are increasingly exploring opportunities in the Gulf region, particularly following advancements made at the Dubai EXPO in 2020. Trade with Saudi Arabia has notably increased, with exports of services rising by 40% last year. Saudi Arabia’s national initiative, “Saudi Vision 2030,” aims to reposition the country as a pivotal hub in investment and international relations, though challenges such as human rights violations persist as highlighted by U.S. reports.

Estonia’s business community recognizes the need to expand beyond traditional democratic markets, observing that neighboring countries like Finland and Sweden have successfully established business engagements in Gulf nations. Kallakas noted that Estonia is lagging behind in entering these lucrative markets and stressed the importance of diversifying export strategies to reduce dependency on European Union markets.

The agreement with Saudi Arabia is anticipated to facilitate greater access for Estonian companies to governmental contracts and procurement opportunities, fostering future cooperative agreements on investment protection and other essential treaties. Furthermore, changing government dynamics in Estonia, including shifts in party perspectives on foreign market engagement, reflect an evolving approach towards cooperation with Saudi Arabia.

As the latest agreement draft proceeds within the governmental framework, it offers a potential pathway for Estonia to engage meaningfully with Saudi Arabia while addressing internal concerns and strategic economic aims.

The Estonian Ministry of Foreign Affairs has reactivated its efforts to formalize a cooperation agreement with Saudi Arabia to enhance economic collaborations. Key changes include a specific focus on educational technologies and the omittance of youth work to alleviate security concerns. Economic ties, particularly with an eye toward Gulf markets, are becoming crucial for Estonia as it seeks to diversify its export relationships. While the agreement faces scrutiny regarding Saudi ties to Russia, its potential for fostering further economic engagement remains significant.

Original Source: news.err.ee