Greece as a “gateway” for the United Arab Emirates to the European Single Market for investment focused on energy, defence, technology and artificial intelligence (AI) was the pitch made by Minister of National Economy and Finance Kyriakos Pierrakakis, speaking at the Investopia Mediterranean – Athens conference during a discussion with UAE Minister of Investment Mohamed Hassan Al Suwaidi on the panel “Connecting Markets in a Time of Global Change”.
The discussion focused on the effects of geopolitical instability on trade, investment and supply chains, as well as the areas in which Greece and the Emirates can develop closer partnerships.
According to Kyriakos Pierrakakis, the new environment is shaped by high energy costs, geopolitical instability, increased fiscal pressures, the need for defence investment and social spending linked to an ageing population.
Greece as a gateway to the EU
Speaking about the development of cooperation between Greece and the Emirates, Mr Pierrakakis described a “natural partnership” based on geography, shipping, infrastructure and human capital. “We can be your gateway to the European Single Market; you can be our gateway not only to the Middle East, but more broadly to some very important and strategic Asian economies,” the minister said.
He referred to investments already made in energy, healthcare, technology and tourism, noting that Greece was seeking more. “In 2024, you were our most important trading partner. We have seen investments in energy, healthcare, technology and tourism. We want to see more of these investments coming,” he said.
Mr Pierrakakis also highlighted opportunities for cooperation under the IMEC, as well as in shipping and logistics. “We are an investment force, a force in logistics, a maritime nation. Natural synergies can emerge here too,” he said.
Resilience in a crisis
Mr Pierrakakis described a global economy operating in significantly more challenging conditions than a decade ago.
As he noted, the era of cheap money is over. “The average yield on 10-year bonds in Europe was 1.1% a decade ago; now it is 4.4%. By definition, that shows that an era of cheap capital is over and behind us,” Mr Pierrakakis said. At the same time, “the average deficit in Europe is twice what it usually was,” he said, noting that countries are being called on to invest simultaneously in defence, infrastructure and growth.
Against this backdrop, the minister stressed the strength of Greece’s fiscal position, presenting it as a foundation for attracting investment. “Of the 27 EU member states, only five have fiscal surpluses. Four of them had IMF programmes in the previous decade; the other is Denmark,” he said. “Greece is in a very sustainable and strong fiscal position, and we also have the fastest rate of debt reduction in the world,” he added.
A change in mindset
According to Mr Pierrakakis, Greek debt has fallen by 80% in seven years. He stressed that “political stability and fiscal stability are the foundation on which you build”.
Mr Pierrakakis argued that, in addition to stability, Greece has a skilled workforce and a changed approach to investment.
“We have very talented people and a stable environment, but I would also argue that a change in mindset has emerged since the crisis. We are open to investment,” he noted.
AI as a macroeconomic force
He referred to the banking system, the stock market and strategic sectors, arguing that Greece’s approach is to seek partners and leverage synergies.
Mr Pierrakakis gave particular attention to artificial intelligence, treating it not only as a technological development but also as a force reshaping the international capital market. “AI is not just a technological disruptor and a technological force; I would argue that it is also a macroeconomic force,” he said.
He explained that governments are now competing with major technology companies for capital and computing power, putting pressure on yields and funding costs. “At this point, if you look at what governments are doing, countries are competing with the technology giants for capital and computing power, and this is pushing yields higher,” he stressed.
Greece-UAE cooperation is of strategic importance
Mr Pierrakakis stressed that addressing these challenges requires collective action and closer cooperation, making the bilateral relationship between Greece and the UAE strategically important. “That is why our prime minister and government place such great emphasis on our bilateral relationship with the UAE,” he said.
He also acknowledged that the government must create the conditions for investment interest to be turned into projects. “We have to create the space, we have to create the environment, we have to remove the obstacles, and then it is up to businesses and investors to decide which specific companies and sectors can unlock the potential,” he said.
In his assessment of artificial intelligence, Mr Pierrakakis argued for seizing the opportunities quickly without underestimating the risks.
AI: speed and unknown risks
“We need to unlock its productive potential. There is an obvious downside, which is managing the risks, but that is our job,” he said. He called for “moving fast enough to unlock the technology’s potential. And we have to do it at unprecedented speed, because technological change is unfolding on a timescale of weeks,” he added.
The minister described technological change as “exponential”, in contrast to the way public policy is shaped. “We think linearly, while this is highly exponential. So it is a major challenge not only for businesses but also for policymakers around the world,” he stressed.
“We need to have the mindset to tackle both yesterday’s challenges—all the accumulated problems, all the reforms we have failed to implement for decades—and, at the same time, the flexibility, speed and resilience to implement all the reforms,” he concluded.
Al Suwaidi: Investment in ports, shipping and infrastructure
For his part, UAE Minister of Investment Mohamed Hassan Al Suwaidi placed Greece at the centre of a wider reshaping of trade flows between Europe, the Middle East, Africa and Asia.
“We need more shipping, which we have not relied on as much as we have on pipelines,” he said, stressing the need to invest in ports, shipping and new infrastructure at a time when supply-chain disruptions are becoming increasingly significant.
“Greece is extremely well positioned,” Mr Al Suwaidi stressed, highlighting the country’s proximity to the Suez Canal, which enables it to be an important trading partner for the Arab Gulf states—Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman—“if it invests more vigorously in logistics, energy and infrastructure”, he said.
The private sector and red tape
Focusing specifically on Greece, he stressed that the country could make use of cooperation with the Emirates in technology, defence, healthcare, logistics and tourism. “Greece has an opportunity today to attract a large influx of tourists, given what is happening in the world,” Mr Al Suwaidi said. “AI, defence and healthcare will bring change to people’s lives, followed by tourism, which provides people with entertainment,” he stressed.
“I believe the biggest opportunity for our companies in Greece today is to bring the experience we have in AI and technology and work together in shared areas. That applies to defence and healthcare, as well as modern logistics,” he said. “In my view, these are the biggest areas for cooperation between the UAE and Greece,” he added.
Mr Al Suwaidi also highlighted tourism, which he described as a “great opportunity”, noting that the Emirates had experience in the sector. “Tourism is a great opportunity, and we have learned a lot over the years. I think Greece has an opportunity today to attract a large influx of tourists,” he stressed.
Mr Al Suwaidi put the private sector’s role at the centre of his remarks, arguing that governments alone cannot turn strategic agreements into investment. He also called for less red tape and adjustments to environmental procedures, particularly for infrastructure, ports and tourism facilities.
“There is a great deal of bureaucracy around what can be done with infrastructure, with restrictions imposed on historical or environmental grounds. How do we change that in a world where supply-chain disruption has become increasingly critical?” he said. “We need to let the private sector thrive, we need to support it, remove the bureaucracy and make life easy,” Mr Al Suwaidi stressed, also pointing to the need for one-stop services to operate quickly.
In closing, the UAE’s investment minister expressed optimism about artificial intelligence but warned that the greatest risk was delay.