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The UAE has emerged as a key player in a new diplomatic initiative launched by US President Donald Trump, joining what he calls a “Board of Peace” alongside Saudi Arabia, Egypt, Israel and Turkey. The move reflects a broader shift toward personalized, transactional diplomacy as traditional institutional frameworks face mounting strain.
Middle East at Center of New Diplomatic Order
Trump’s invitation to Middle Eastern powers to participate in his alternative diplomatic platform comes as he backed away from earlier threats to seize Greenland by force. The initiative also includes Russian President Vladimir Putin and involves former British Prime Minister Tony Blair, signaling a departure from conventional diplomatic channels toward personality-driven international relations.
The inclusion of the UAE and Saudi Arabia in this select group underscores the growing geopolitical weight of Gulf states as global power dynamics shift away from rules-based institutions toward more direct, transactional arrangements.
Global Trade Realignment Benefits Region
Meanwhile, sweeping changes in global trade patterns are creating new opportunities for Middle Eastern economies. China reported a record $1.2 trillion trade surplus in 2025, with Chinese exports to the US falling 20% as Beijing redirected commerce toward Africa (up 26%), Southeast Asia (up 13%) and Europe (up 8%).
This geographic reorientation of Chinese trade flows positions the Middle East as an increasingly important transit hub and destination market. The EU’s recent trade agreements with India and South America’s Mercosur bloc, both widely interpreted as hedging against US tariffs, further emphasize the region’s strategic value as trade routes diversify.
Economic Indicators Show Adaptation
The broader pattern reveals how the global economy is adapting to political pressures rather than collapsing under them. In the automotive sector, China’s BYD sold 2.3 million electric vehicles in 2025 (up 28%) while Tesla deliveries fell 9% to 1.6 million, demonstrating how industrial competition is reshaping around geopolitical lines.
Boeing managed 1,075 net aircraft orders in 2025, surpassing Airbus’s 1,000 for the first time since 2018, while Porsche sales dropped 10% – the German luxury carmaker’s steepest decline since the 2008 financial crisis.
What’s Next
The twin developments of the UAE’s inclusion in Trump’s diplomatic initiative and the broader trade realignment suggest the region is positioning itself at the center of an increasingly fragmented global order. As traditional Western-dominated institutions face challenges, Middle Eastern powers are gaining influence in both diplomatic and economic spheres, with the potential to benefit from continued trade diversification away from US-dominated routes.
Sources: Fairobserver, Globenewswire, The Hindu Business Line
