RIYADH: The Gulf-EU partnership is entering a new economic phase that extends beyond traditional trade to focus on investment in technology, artificial intelligence, and clean energy, as well as digital infrastructure and supply chains.
The second EU-GCC Summit will be held in Riyadh on Oct. 24, according to the European Commission’s official spokesperson, who spoke to Al-Eqtisadiah.
The statement came in response to questions Al-Eqtisadiah posed to European Council President Antonio Costa on the occasion of the second EU-GCC Summit, which could serve as a platform to push the relationship toward a new economic model built on long-term, implementable projects and partnerships.
The spokesperson said the EU sees the summit as an opportunity to give a fresh political and economic push to relations with the GCC states, at a time when goods trade between the two sides reached €165.7 billion ($188.2 billion) in 2025, up 1.1 percent from the previous year.
He said the EU’s agenda extends beyond increasing trade volumes, with priorities for the coming phase including investment and cooperation in digital connectivity, energy, industry and innovation. The EU also aims to build more resilient supply chains and trade routes.
AI enters the heart of the partnership
According to the European Commission spokesperson, one of the key shifts in the coming phase could be greater EU-GCC cooperation in the artificial intelligence economy, with the EU’s current direction pointing toward increased investment in AI-related infrastructure, including cloud computing and data centres.
He added that this opens a wide scope for potential EU-GCC partnerships in building and operating data centers, high-performance computing, and developing AI applications, as well as cybersecurity and cloud services.
In July, the EU Commission launched a call to establish up to seven AI gigafactories in Europe, with European and national funding of up to €10 billion.
The initiative is expected to mobilize at least €20 billion in private investment, potentially creating opportunities for joint Gulf-European investment in areas such as cloud computing, data centres, AI applications and digital industries.
This is particularly relevant given the Gulf states’ substantial financing capacity and broad digital transformation plans, while Europe brings a strong research and technology base, along with companies specializing in a range of advanced fields.
Digital infrastructure: a new bridge between the Gulf and Europe
According to the EU spokesperson, the commission is proposing, within the connectivity agenda, cooperation covering digital connectivity, transport and energy.
He explained that this approach would broaden the concept of linkage between the two regions from traditional trade corridors to cross-border digital infrastructure, including telecommunications networks, data centers, cloud services, cybersecurity and data exchange.
The commission stresses that digitalization and connectivity are already one of the pillars of its strategy for partnership with the Gulf, alongside trade, investment, energy and the green transition.
Clean energy projects poised to expand
Clean energy is at the forefront of the areas that could see larger investment partnerships between the Gulf states and Europe in the coming years.
The EU needs enormous levels of investment to support the transformation of its energy sector. The commission estimates investment needs at roughly €660 billion per year during 2026–2030, rising to €695 billion per year during 2031–2040.
Here, EU expertise and technology could intersect with Gulf investment in solar energy, wind power, and green hydrogen, as well as energy storage and smart grids, in addition to developing emissions-reduction technologies.
Cooperation could also extend to projects outside the two sides’ markets, particularly in the Middle East and North Africa region.
From factories to value chains
The EU Commission spokesperson said future opportunities are not limited to technology and energy, as the summit agenda points to potential in advanced industries, logistics and finance.
This could gradually shift the relationship from a “trade between markets” model to a more integrated approach based on building joint value chains, with European and Gulf companies partnering on production, development, financing and distribution.
Sectors that could benefit from this direction include advanced industries, industrial equipment and technologies, and logistics, as well as financial technology, health technologies, cybersecurity, telecommunications and energy.
Free trade agreement: the biggest file
He stated that although technology and energy have risen to the forefront of the partnership, the free trade agreement between the EU and the GCC remains one of the main economic files.
The EU Commission says it wants an ambitious, balanced agreement with real commercial value, providing new market access opportunities and clear rules for trade and investment.
In an important development, the commission is currently conducting a consultation with companies, investors and chambers of commerce on assessing the economic impact of the proposed free trade agreement. The consultation period runs until Oct. 19.
This development gives the Riyadh summit added significance, as the free trade agreement moves from a long-running negotiation toward a more practical discussion, with European institutions seeking greater input from the business sector.
Saudi Arabia: where trade and investment meet
For the Kingdom, the new Gulf-European agenda could align with the goals of Saudi Vision 2030, particularly its focus on economic diversification, attracting investment and technology, and developing non-oil sectors.
Saudi Arabia and the EU also support the India-Middle East-Europe Economic Corridor, which aims to develop integrated transport, energy and digital infrastructure links.
This opens the door to a broader vision for future projects, in which the partnership extends beyond investment in individual countries or markets to regional initiatives connecting the Gulf with Europe and Asia through transport, energy and digital infrastructure networks.
Business forum: from data to projects
The spokesperson revealed that the business forum scheduled to follow the summit carries particular importance, as it could be the space where political priorities turn into direct talks between companies and investors.
Discussions are expected to focus on implementable projects in clean energy, AI, data centers, and digital services, as well as advanced industries, logistics, supply chains and financing.
However, it is important to distinguish between potential opportunities arising from the summit agenda and projects that have been officially announced. The European Commission’s responses do not identify any specific joint investment projects in AI or other sectors at this stage.
The spokesperson said European data indicates that the next phase of Gulf-European relations may take shape around three interlinked pillars: more open trade, larger investment, and a deeper technological and industrial partnership.
While trade worth €165.7 billion is an important economic foundation for the relationship, the space for future growth may lie in sectors beyond oil and traditional goods, from AI and data centers to clean energy, advanced industries and logistics.
Earlier preparatory consultations
Consultative meetings between the Gulf and European sides took place recently on the sidelines of the UN General Assembly in New York, where preparations for the upcoming summit between the two sides were discussed.
European Commissioner for the Mediterranean, Dubravka Suica, met with Jasem Mohamed Albudaiwi, secretary-general of the GCC.
Suica said at the time that the EU was seeking to deepen its strategic partnership amid a challenging geopolitical environment and growing cooperation across areas ranging from trade and investment to energy, transport and digital connectivity.
Luigi Di Maio, the EU special representative for the Gulf region, also said the EU-GCC strategic partnership requires distinguished, frank and results-oriented dialogue.
