UAE-Saudi Border Delays: Bad for Business

Over the past month, trucks heading into Saudi Arabia from the UAE have faced new border checks that have resulted in a 24-kilometer tail back and long delays in the summer heat, reported Gulf News today.

This situation is not good for business. Delays cost money and goods may perish in the interminable heat. Drivers are also seriously inconvenienced and left without proper facilities as they dare not leave their vehicles.

New border checks

At the heart of the problem is said to be the finger-printing of drivers and more extensive document checks, something that has not been seen as an issue until now.

There is seemingly no connection between this border situation and the refusal by the UAE to join the GCC single monetary union last month. A pact creating the zone was finally signed earlier this week between the Kingdom, Bahrain, Kuwait and Qatar, but neither the UAE nor Oman.

The UAE rejected monetary union after failing to secure the headquarters of the new central bank for Abu Dhabi. It has gone to Riyadh instead.

However, it is not good for trade when neighboring countries can not arrange the smooth functioning of customs processes and leaving trucks full of goods standing in the heat of the sun is surely to be avoided with the mercury touching 50C at this time of year.

Common sense should surely prevail. In trade it is in the interest of neither party to interrupt the free flow of goods and services. Both lose out in the long run.

Summer heat

If there are genuine security concerns then these should be addressed without delay and transportation companies informed of the necessary procedures. There should be no need for long queues of trucks under the blaze of the summer sun.

For in fact the GCC is supposed to already have a common market with a unified external tariff allowing the free flow of goods and services inside the borders of the region. That is principally for the benefit of consumers as much as business.

Larger markets permit economies of scale and efficient distribution networks that deliver goods to consumers for the lowest price and in the quickest time. Let markets function and they will deliver the results.

Comments

[OldLimey:]

That something geopolitically significant will kick-off in the Gulf later this year is far from given, but neither is it a zero-probability event. The border issue should be seen in this context, rather than as the Saudis throwing their toys out of the pram.

Jun 11 02:49 PM

[one eye:]

Why would the UAE documentation checks be surprising since they started issuing identification cards to its own people months ago.

There has been a steady rise in such measures to make sure that Jobs are delegated to a given country's citizens first and if a Job is going to be cancelled, Foreigners get axed first.

I like that attitude.

This is week 14 Peter, Have you withdrawn that article on your website yet?

You know 13 weeks, 13 weeks, doo dah day.

Jun 12 05:14 AM

[Peter Cooper:]

This has nothing to do with the ID cards which are a separate issue. They are nothing to do with securing jobs for citizens - it would be hard to do that in the UAE where we are 80% expats.

As for the 13 weeks - well 14 or 15 what does it matter?

Jun 14 03:57 AM