Mohammed Karim is currently pursuing masters in government & diplomacy at Harvard University.
Diplomacy plays a paramount role in commercial globalisation. For corporations to expand internationally, there must be secure trade relations between nations. Many agreements that create open international trade relations depend on the involvement of corporations that want to expand to other nations.
Since great business negotiators seek to harmonise interests, it is no surprise that diplomacy is the best methodology to create this mutualistic relationship between political agreements and commercial success. Also, since globalisation is the key to the future for corporations and national governments, leaders of companies and nations alike use commercial diplomacy to create profitable gains between nations.
Many commercial and political collaborations will be seen at the upcoming Expo 2020 Dubai, whose themes of opportunity, mobility, and sustainability present ideals that all nations can agree to aspire to create. Examples from the 1960s to today, across multiple generations of diplomatic brokers, it is clear that the UAE has continuously found that commercial diplomacy is the best way to provide business opportunity for its citizens, establish the free mobility of goods, services, and ideas for companies across international borders, and sustainably create growth opportunities for international business in today’s globally connected world.
In general, diplomacy is the practice of international relations, focused around conducting negotiations between nations. Just as an artist uses painting techniques to make abstract visions into tangible realities on canvas, diplomats use diplomacy methods to establish and bolster international relations. More specifically, commercial diplomacy focuses on negotiation between corporations from different countries, resulting in mutually advantageous and profitable trade relations. Executives rarely view themselves as international diplomats; however, entrepreneurs and managers must use diplomacy to make commercial globalisation a reality.
In the 1960s, Mohammed Mahdi Al Tajir acted as liaison to Dubai’s petroleum affairs, brokering extraction deals with many foreign companies. Critical to his success, Al Tajir carried out his business strategies with commercial diplomacy, discussing Dubai’s need for vertical integration in the oil supply chain, more production lines to lower costs and improve efficiency, and more capital to fund oil operations. One of the most pivotal milestones of Al Tajir’s commercial diplomacy was when he negotiated mutually beneficial partnerships with the US and the UK, creating robust trade ties with these superpower nations. Al Tajir moved forward from these commercial moves toward political agreements, and in the 1960s, Al Tajir worked closely with Mana Al Otaiba as advisors to the rulers of Abu Dhabi and Dubai to officially unite the Emirates into the UAE. In 1971, when the UAE was officially established, Al Tajir was appointed the first UAE ambassador to the UK and France, a position he held until 1987. Since the 1960s, Al Tajir’s commercial diplomacy, business acumen, and negotiation skills have made profitable deals between Dubai and many other nations, helping to establish the UAE during its foundation as a nation. In this way, commercial diplomacy was at the heart of political relations to help establish the UAE as an important, integrated, and well-respected nation of the world.
One of the most momentous political developments happening now is the signing of the Abraham Accords. In September 2020, the UAE, Israel, and Bahrain signed the Abraham Accords to formally normalise diplomatic relations, exchange embassies and ambassadors, and begin cooperation in many areas including trade, technology, mobility, sustainability, education, healthcare, tourism, and security. In addition, inspired by the success of new open international relationships, many other nations have expressed interest in signing similar agreements soon. By negotiating bilateral relationships, all of these nations aspire to unlock the great potential of the Middle East.
Due to the Abraham Accords, companies are already now building profitable international partnerships to improve the mobility of people, goods, and ideas across international borders. Prior to this year, only about five percent of exports from Middle East countries went to their regional neighbors. By negotiating the Abraham Accords, diplomats have removed international trade barriers, allowing goods and people to move freely throughout the region. The newly enabled bilateral mutual trade support between the UAE and other nations could boost all Middle Eastern economies with profitable synergistic business alliances, creating new political foundations and commercial growth opportunities.
A day after the Abraham Accords were signed, the UAE’s two largest airlines, Emirates Airlines and Etihad Airways, announced the addition of new flight routes between the UAE and nations signing the agreement. On October 19, 2020, Etihad Airways flew the nation’s first commercial flight from UAE to Israel. By conveniently and directly flying between newly connected nations, mobility will enable business owners to generate more international commercial opportunities. Political diplomacy and commercial diplomacy work hand in hand to establish a political foundation and create commercial growth opportunities for each nation.
In addition, immediately after the Abraham Accords were signed, UAE logistics company DP World signed agreements with companies located in several other nations to establish direct trade routes across international borders. By physically forming supply chain infrastructures between nations, these businesses are strengthening international trade relations. Commercial diplomacy helped create a political landscape that is more open to free international trade ties, and businesses are jumping on board with these growth opportunities.
Nevertheless, the UAE has politically and economically strengthened relations with many nations through various business ventures. Not long ago, H.H Sheikh Mansour bin Zayed Al Nahyan purchased Manchester City, an English football club that had been below mediocre in the premier league. Since then, not only has the club prospered drastically with its numerous titles and achievements, but so did the city of Manchester become an enthralling destination for investors, tourists and football fans. Furthermore, business dignitaries like Majid Al-Futtaim, Khalaf Al-Habtoor and Mohammed Al-Abbar have expanded their national business interests abroad by investing heavily in real estate, shopping malls and education in numerous countries across Asia, Europe and North America. This very much springs economic relations and aids in developing brighter political business affairs between both governments.
Commercial diplomacy is a uniquely important tool for nations and businesses to think about and use in their globalisation strategies. Political diplomats know that the key to building relationships lies in understanding each nation’s concerns and priorities, and great business negotiators try to harmonise everyone’s interests in a deal. Commercial diplomacy combines these very similar ideas to align corporate needs and national concerns.
Since the 1960s, UAE business leaders and political diplomats alike have found that they must use commercial diplomacy to compose political agreements and negotiate trade agreements that work together to establish a political foundation that creates commercial growth opportunities mutually beneficial to all stakeholders involved.
From UAE’s founding to the most recent international agreements, commercial diplomats include trade ties as critical components to political agreements to increase their chances of successfully creating more unity across a globally connected and business-aligned world.
Mohammed Karim is currently pursuing masters in government & diplomacy at Harvard University
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By ITP
More of this topic
Why diplomacy is important in the business world
Mohammed Karim, 24, diplomatic protocol personnel at Expo Dubai 2020, discusses how diplomacy and trade have worked hand in hand in the UAE
Mohammed Karim is currently pursuing masters in government & diplomacy at Harvard University.
Diplomacy plays a paramount role in commercial globalisation. For corporations to expand internationally, there must be secure trade relations between nations. Many agreements that create open international trade relations depend on the involvement of corporations that want to expand to other nations.
Since great business negotiators seek to harmonise interests, it is no surprise that diplomacy is the best methodology to create this mutualistic relationship between political agreements and commercial success. Also, since globalisation is the key to the future for corporations and national governments, leaders of companies and nations alike use commercial diplomacy to create profitable gains between nations.
Many commercial and political collaborations will be seen at the upcoming Expo 2020 Dubai, whose themes of opportunity, mobility, and sustainability present ideals that all nations can agree to aspire to create. Examples from the 1960s to today, across multiple generations of diplomatic brokers, it is clear that the UAE has continuously found that commercial diplomacy is the best way to provide business opportunity for its citizens, establish the free mobility of goods, services, and ideas for companies across international borders, and sustainably create growth opportunities for international business in today’s globally connected world.
In general, diplomacy is the practice of international relations, focused around conducting negotiations between nations. Just as an artist uses painting techniques to make abstract visions into tangible realities on canvas, diplomats use diplomacy methods to establish and bolster international relations. More specifically, commercial diplomacy focuses on negotiation between corporations from different countries, resulting in mutually advantageous and profitable trade relations. Executives rarely view themselves as international diplomats; however, entrepreneurs and managers must use diplomacy to make commercial globalisation a reality.
In the 1960s, Mohammed Mahdi Al Tajir acted as liaison to Dubai’s petroleum affairs, brokering extraction deals with many foreign companies. Critical to his success, Al Tajir carried out his business strategies with commercial diplomacy, discussing Dubai’s need for vertical integration in the oil supply chain, more production lines to lower costs and improve efficiency, and more capital to fund oil operations. One of the most pivotal milestones of Al Tajir’s commercial diplomacy was when he negotiated mutually beneficial partnerships with the US and the UK, creating robust trade ties with these superpower nations. Al Tajir moved forward from these commercial moves toward political agreements, and in the 1960s, Al Tajir worked closely with Mana Al Otaiba as advisors to the rulers of Abu Dhabi and Dubai to officially unite the Emirates into the UAE. In 1971, when the UAE was officially established, Al Tajir was appointed the first UAE ambassador to the UK and France, a position he held until 1987. Since the 1960s, Al Tajir’s commercial diplomacy, business acumen, and negotiation skills have made profitable deals between Dubai and many other nations, helping to establish the UAE during its foundation as a nation. In this way, commercial diplomacy was at the heart of political relations to help establish the UAE as an important, integrated, and well-respected nation of the world.
One of the most momentous political developments happening now is the signing of the Abraham Accords. In September 2020, the UAE, Israel, and Bahrain signed the Abraham Accords to formally normalise diplomatic relations, exchange embassies and ambassadors, and begin cooperation in many areas including trade, technology, mobility, sustainability, education, healthcare, tourism, and security. In addition, inspired by the success of new open international relationships, many other nations have expressed interest in signing similar agreements soon. By negotiating bilateral relationships, all of these nations aspire to unlock the great potential of the Middle East.
Due to the Abraham Accords, companies are already now building profitable international partnerships to improve the mobility of people, goods, and ideas across international borders. Prior to this year, only about five percent of exports from Middle East countries went to their regional neighbors. By negotiating the Abraham Accords, diplomats have removed international trade barriers, allowing goods and people to move freely throughout the region. The newly enabled bilateral mutual trade support between the UAE and other nations could boost all Middle Eastern economies with profitable synergistic business alliances, creating new political foundations and commercial growth opportunities.
A day after the Abraham Accords were signed, the UAE’s two largest airlines, Emirates Airlines and Etihad Airways, announced the addition of new flight routes between the UAE and nations signing the agreement. On October 19, 2020, Etihad Airways flew the nation’s first commercial flight from UAE to Israel. By conveniently and directly flying between newly connected nations, mobility will enable business owners to generate more international commercial opportunities. Political diplomacy and commercial diplomacy work hand in hand to establish a political foundation and create commercial growth opportunities for each nation.
In addition, immediately after the Abraham Accords were signed, UAE logistics company DP World signed agreements with companies located in several other nations to establish direct trade routes across international borders. By physically forming supply chain infrastructures between nations, these businesses are strengthening international trade relations. Commercial diplomacy helped create a political landscape that is more open to free international trade ties, and businesses are jumping on board with these growth opportunities.
Nevertheless, the UAE has politically and economically strengthened relations with many nations through various business ventures. Not long ago, H.H Sheikh Mansour bin Zayed Al Nahyan purchased Manchester City, an English football club that had been below mediocre in the premier league. Since then, not only has the club prospered drastically with its numerous titles and achievements, but so did the city of Manchester become an enthralling destination for investors, tourists and football fans. Furthermore, business dignitaries like Majid Al-Futtaim, Khalaf Al-Habtoor and Mohammed Al-Abbar have expanded their national business interests abroad by investing heavily in real estate, shopping malls and education in numerous countries across Asia, Europe and North America. This very much springs economic relations and aids in developing brighter political business affairs between both governments.
Commercial diplomacy is a uniquely important tool for nations and businesses to think about and use in their globalisation strategies. Political diplomats know that the key to building relationships lies in understanding each nation’s concerns and priorities, and great business negotiators try to harmonise everyone’s interests in a deal. Commercial diplomacy combines these very similar ideas to align corporate needs and national concerns.
Since the 1960s, UAE business leaders and political diplomats alike have found that they must use commercial diplomacy to compose political agreements and negotiate trade agreements that work together to establish a political foundation that creates commercial growth opportunities mutually beneficial to all stakeholders involved.
From UAE’s founding to the most recent international agreements, commercial diplomats include trade ties as critical components to political agreements to increase their chances of successfully creating more unity across a globally connected and business-aligned world.
Mohammed Karim is currently pursuing masters in government & diplomacy at Harvard University
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