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By Prof. Khalid Wassef Al-Wazani

Professor of Economics and Public Policy

Mohammed Bin Rashid School of Government

Globalization, in the form we have known since the 1990s, is today taking a new turn. Some believe this shift signals its demise. Yet the current landscape is better understood not as the end of globalization, but as a process of reengineering—reshaping it according to new political and economic realities and the growing geopolitical interplay between the two. Although the early foundations of globalization appeared decades ago and were reinforced by the global order that emerged after the Second World War, the concept in its modern form entered political and economic discourse during the 1980s. This coincided with the rise of overt neoliberalism, financial liberalization, and trade deregulation. Globalization reached its peak in the 1990s following the end of the Cold War, the decline of the Soviet Union, and the consolidation of a unipolar world order that institutionalized the World Trade Organization.

During that decade, globalization was promoted as an inevitable pathway for survival in global markets—one that promised gains through the free movement of goods, capital, and information, alongside the reduction of the state’s productive role in favor of market forces. This model, once presented as universally optimal, began losing its luster after the global financial crisis of 2008. It then faced deeper tests, fueled by major trade wars, the COVID-19 pandemic, and the accelerating geopolitical shifts of recent years.

What the world is witnessing today is not necessarily the end of globalization, but rather the beginning of its redefinition within a more selective framework. Openness and integration are being recalibrated according to considerations of economic security and political stability, alongside traditional criteria of efficiency, optimal resource allocation, and technological leadership—particularly in fields such as artificial intelligence and its applications.

Selective globalization today is built upon strategic choice: selecting partners, competitive sectors, and value chains carefully. It prioritizes the optimal utilization of available resources, guided not solely by economic efficiency, but by broader national security considerations—economic, political, and social—including food security, cybersecurity, and social stability. It also requires prudent risk assessment and management, anticipating potential disruptions and preparing mechanisms to mitigate them.

This emerging form of globalization is increasingly visible in regional and global integration models. It appears clearly within groupings such as BRICS, ASEAN, and the Shanghai Cooperation Organization. It is also evident in global climate and energy alliances, and in major agreements such as the EU–India “Mother of All Deals,” the multiple agreements between Canada and strategic partners including China, and the comprehensive economic partnership agreements, over 30 of them signed by the United Arab Emirates with countries across both the developed and emerging world.

The monetary and financial dimensions of selective globalization are equally telling. The growing use of local currencies in bilateral trade, the development of parallel payment systems, increased accumulation of gold and strategic reserves, and the integration of digital currencies into global trade platforms all point toward a parallel form of financial selectivity. The objective is not to dismantle the existing global system entirely, but to reduce dependency upon it and hedge against its vulnerabilities.

The central question, however, is what this transformation means for the Arab region?

With its strategic geographic position, youthful demographic structure, logistical capabilities, and vast natural and material resources, the Arab world stands at the heart of these transformations rather than at their margins. The region faces a rare opportunity to position itself as a vital bridge within the emerging global order. It can either become a central actor in shaping and influencing this transition, or risk becoming merely a zone of exploitation and external control.

The strategic path forward requires the region to act as an integrated and coordinated economic bloc. This choice demands clarity of vision: do we aspire to be merely a transit corridor, or an active partner within the new global value chains? Selective globalization compels Arab states to move from reactive policies toward proactive, anticipatory, and integrative strategies—diversifying partnerships, carefully selecting high-value sectors, investing decisively in human capital through education and knowledge formation, and building institutional environments capable of attracting high-quality investment while expanding joint national and regional ventures.

In conclusion, globalization has not ended; it is evolving in a different direction. Recognizing its new selective nature is essential, and policies must be recalibrated accordingly. Those who insist on engaging globalization through its outdated framework will struggle to remain resilient and competitive in a world that no longer tolerates the old hierarchies and unilateral rules that once defined it.

Prof. Khalid W. Al Wazani

khwazani@gmail.com

Submitted for publication on Feb. 23rd, 2026

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