UAE President Sheikh Khalifa bin Zayed Al Nahyan issued on Monday a resolution forming a Joint Cooperation Committee between the United Arab Emirates and Saudi Arabia.
The committee will be chaired by Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohamed bin Zayed Al Nahyan, and deputized by Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed Al Nahyan.
In its first article, the resolution stipulates the establishment of a joint committee for cooperation and coordination between the United Arab Emirates and the Kingdom of Saudi Arabia.
The second article specifies that the chairman of the committee shall issue a decision appointing its members from representatives of a number of federal and local government bodies and sectors in the country. The committee is assigned to cooperate and coordinate between the UAE and Saudi Arabia in all military, political, economic, trade and cultural fields, as well as others, in the interest of the two countries. It shall have all the powers necessary for carrying out and executing its work.
The resolution is effective from its date of issuance and will be published in the official gazette.
Trade exchange between the two countries has witnessed a big leap over the past six years. Total non-oil trade between the two countries increased from $15 billion in 2011 to $19.5 billion during 2016 with a growth rate of 29.8 percent.
UAE's imports from Saudi Arabia is about $4.4 billion, while non-oil exports accounted for 32 percent with $2.9 billion, while re-exports accounted for 20 percent equivalent to $1.7 billion of the value of trade exchange between the two countries.
UAE is among the top investors in Saudi Arabia with investments exceeding $9 billion in 16 of the most important sectors and economic activities, which are contracting and real estate.
There are about 32 UAE companies and investment groups investing projects in Saudi Arabia.
By the end of 2015, Saudi investments reached $4.4 billion.
The Saudi Ministry of Economy recorded 3,041 companies, agencies and brands in the UAE, including 26 companies, 73 commercial agencies and 2942 brands. By the end of 2015, number of licenses granted for Saudi economic activities in the UAE amounted to 7,769 licenses including: 6,279 commercial licenses, 246 professional licenses, 949 professional licenses, 183 industrial licenses and 111 tourist licenses.
According to the Ministry of Economy's database, non-oil direct trade and free trade in the two countries have witnessed significant increases over the past years.
The value of free zone trade between the two countries increased from $7.7 billion to $10.2 billion, an increase of $2.5 billion and a growth rate of 32.4 percent.