During his speech at the session titled “Clean Energy, Competitiveness, and Trade in Arab Economies”, held within the 19th Annual Scientific Conference of the Arab Society for Economic Research — the largest gathering of Arab economists — hosted by the Lebanese capital Beirut on December 5–6 under the theme “Strengthening the Competitiveness of Arab Economies Amid Regional and Global Developments”, and under the patronage of Lebanon’s Prime Minister Dr. Nawaf Salam, with the attendance of Lebanon’s Minister of Economy and Trade Amer Al-Basat, President of the Arab Society for Economic Research Mahmoud Mohieldin, Secretary-General of the Society and General Coordinator of the Conference Dr. Ashraf Al-Arabi, and Economic Advisor to the Egyptian Prime Minister Dr. Gehan Saleh — in addition to the participation of more than 100 academic and research figures from across the Arab world — the Secretary-General of the Union of Arab Chambers, Dr. Khaled Hanafy, stated that Arab countries can advance strongly within regional and global value chains if they approach the ongoing transformation in energy and technology markets as a strategic opportunity rather than merely an environmental pathway.
The Secretary-General explained that “statistics clearly highlight the importance of increasing the added value of Arab exports and strengthening the region’s integration into value chains in ways that support competitiveness and industrial transformation toward more sustainable production models. Achieving this requires developing manufacturing industries linked to clean energy (green hydrogen, photovoltaic components, energy storage, batteries), and supporting industrial innovation so that the Arab contribution to global markets goes beyond supplying energy materials or raw energy to offering products that directly feed into final industries.”
Dr. Hanafy called for “building productive and technological partnerships to support integration into international value chains by establishing joint Arab production alliances within green value chains; entering manufacturing and technology-transfer agreements with major global companies; and encouraging foreign direct investment in sectors related to renewable energy and low-carbon technologies. This would allow Arab integration into global markets from the position of producer and contributor — not merely importer or receiver.”
He emphasized “the importance of accelerating economic and logistical reforms to ensure the right investment climate, since enhancing competitiveness depends on improving the business environment and supporting industrial transformation — a fundamental requirement for integrating into global value chains linked to clean energy and technology. Required measures include digitizing customs; establishing non-traditional exchanges; boosting port and supply-chain efficiency; adopting green industrial policies; simplifying licensing for production and technology localization; and providing incentives for investment in R&D and the circular economy.”
The Secretary-General stressed that “with the global transition toward clean energy, competitiveness is no longer measured only by production cost, but by the speed of movement across supply chains and the efficiency of logistical infrastructure. Countries that build smart ports and manage trade flows efficiently will lead global green-product flows. To achieve this, we must develop green ports equipped with electric-charging stations and hydrogen terminals for processing and export. This includes creating regional port alliances linking Arab ports with global ports — particularly with South America and especially Brazil, which is a pivotal country. It also requires establishing industrial logistics free zones dedicated to assembling and manufacturing renewable-energy equipment; adopting digital tracking systems for goods from origin to destination; and connecting cross-border transport networks to facilitate intra-Arab trade — in addition to linking ports to railways and regional transport corridors and harmonizing technical standards for green products among Arab countries.”
Dr. Hanafy revealed that digital transformation will reduce trade costs by 10–20% in the medium term and will double competitiveness in major markets. He noted that building storage and transport networks capable of supporting green industries will transform the Arab region from a raw-material exporter into a manufacturing and re-export hub. “Smart ports, regional connectivity, digital transformation, and specialized storage tools are what will make the Arab region a major player in green value chains in the coming years.”
The Secretary-General called for establishing an “Arab Industrial Bloc for Clean Energy” based on joint production and value-chain integration, rather than individual competition. He added that “the world is moving fast, and any delay means losing the opportunity. The global shift toward clean energy is happening now, and value chains are already being rebuilt. Those who do not enter early will find no place in the market and will become permanent importers of technology instead of participants in producing it.”
Source (Union of Arab Chambers)
