The Estonian Ministry of Foreign Affairs has revived efforts to sign a bilateral cooperation agreement with Saudi Arabia, shifting the focus mainly to economic cooperation and educational technologies, while omitting sensitive youth work elements. Despite concerns about Saudi-Russian economic ties, increased interest from Estonian companies in the Gulf markets reflects a desire to diversify exports amidst a strategic pivot in foreign relations.

The Estonian Ministry of Foreign Affairs has revitalized its endeavor to establish a bilateral cooperation agreement with Saudi Arabia, aimed at enhancing economic collaboration between the two nations. Originally proposed last summer, the signing was postponed due to several concerns raised by the Ministry of the Interior, particularly regarding cooperation in education and youth work linked to the ultra-conservative views of Wahhabism.

On March 5, the Ministry of Foreign Affairs circulated a revised version of the agreement, emphasizing economic cooperation over educational and youth interactions. Priit Kallakas, head of economic diplomacy, indicated that the new focus will be on educational technology, reflecting Saudi Arabia’s interest in Estonian initiatives in this sector. The aspect of youth work has been omitted, with the Ministry suggesting that NGOs may pursue relationships independently.

Additionally, concerns persist regarding Saudi Arabia’s economic ties with Russia. The Ministry suggested incorporating a re-export clause into the agreement to prevent any circumvention of sanctions, although Kallakas pointed out that such measures must comply with existing EU regulations and could not be unilaterally added.

Estonian companies are increasingly recognizing opportunities within Gulf markets, particularly after participation in the Dubai EXPO 2020. Kallakas noted a significant growth of 40% in service exports to Saudi Arabia last year, highlighting the Kingdom’s strategic shift under its “Saudi Vision 2030” initiative.

Emphasizing the need for Estonia to diversify its economic partnerships, Kallakas pointed out that 71% of Estonia’s exports currently target the EU, contrasting with the 50-55% seen in neighboring countries like Finland and Sweden. Strengthening ties with Gulf nations will be critical for Estonia to alleviate its reliance on a narrow export market.

The cooperation agreement is expected to lay a foundation for future bilateral treaties, such as investment protection and double taxation agreements. Moreover, with recent changes in the Estonian government, previous skepticism towards engaging the Saudi market may no longer impede the signing of the agreement, representing a potential shift in Estonia’s diplomatic strategy.

In conclusion, Estonia’s renewed efforts to secure a bilateral cooperation agreement with Saudi Arabia signify a strategic pivot towards enhancing economic relations. By focusing on educational technology and omitting sensitive issues related to youth work, Estonia aims to foster a more favorable collaboration. Despite concerns regarding Saudi-Russian relations, the potential for Estonian companies to benefit from Gulf markets remains substantial, underscoring the necessity for Estonia to broaden its economic partnerships beyond the EU.

Original Source: news.err.ee

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