Ghana-Saudi Relations: Analysis of Bilateral Trade and Development Aid

Abstract

This research analyses the relations between Ghana and Saudi Arabia with particular attention to the bilateral relations of the two countries from 2010 to 2022. To reach the required goal both primary data and secondary data were used. It was observed that Ghana had a long-standing relation with Saudi Arabia dating back to 1960 and that it has so far inured into fruitful cooperation in various field with more room for improvement. In theorizing the relations between the two countries, the theory of cooperation was used to conceptualize Ghana–Saudi Arabia relations. Weber (1991) posits that cooperation materializes when states adjust their policies in a coordinated manner so that each state would be able to pursue its goals and aspirations. The theory is relevant to the study in a sense that it answers what underlines cooperation among states and provides guidelines to ensure win-win situation among nations. Trade relations between the two countries tilt in favour of Saudi Arabia. The research examines the causes of the Trade imbalance and established that some of the causes of trade imbalance between the two countries are; Ghana's low export capacity and Saudi Arabia's export of raw materials needed in the manufacturing of plastics to Ghana. As a remedy, it has been observed that serious efforts be made through collaborative programs by both countries on all bilateral issues especially pertaining to needed agreements to provide a suitable framework to improve foreign direct investments (FDIs). On development aid, it has been observed that Saudi Arabia's aid to Ghana has been very instrumental in improving good relations between the two countries as well as cement the peaceful co-existence between the adherents of the Islamic and Christian faiths, as Saudi aid has not been biased. However, Saudi aid to Ghana lacks proper and efficient implementation mechanisms. As a measure, the study recommended the establishment of specialized Saudi agency in Ghana to coordinate Saudi aid in the country and neighboring countries