What the ASEAN–GCC Summit in Kuala Lumpur means

Economic and Geopolitical Realignment at the core of the meeting that took place in Malaysia, at the side of the ASEAN summit

By Luca Menghini

The ASEAN–GCC Summit held in Kuala Lumpur on May 27–28, 2025, marked a turning point in interregional diplomacy between two of the world’s most dynamic and strategically important regions: the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC). Taking place alongside the first-ever ASEAN–GCC–China Summit and the 46th ASEAN Summit, this event underscored the growing importance of cross-regional cooperation in a world defined by economic uncertainty, strategic fragmentation, and the accelerating erosion of long-established global alliances. The summit offered a comprehensive vision for deepening political, economic, and strategic ties between the Gulf and Southeast Asia while also highlighting the increasing assertiveness of regional actors in shaping global affairs.

The summit built on the momentum established during the inaugural ASEAN–GCC Summit in Riyadh in October 2023, where leaders laid the groundwork for a structured partnership through the endorsement of the ASEAN–GCC Framework of Cooperation 2024–2028. That framework had already identified a wide array of priority areas for cooperation, ranging from energy and digital transformation to Islamic finance, education, and people-to-people exchanges. The Kuala Lumpur meeting elevated these ambitions by providing new political direction, stronger institutional mechanisms, and a clearer alignment of strategic interests between the two regions.

At the heart of the summit was a shared recognition that ASEAN and the GCC are at a critical juncture. For ASEAN, recent global trade tensions including a dramatic escalation in tariffs imposed by the United States under its reactivated protectionist agenda have amplified the need to diversify economic partnerships. The new U.S. tariffs, introduced in April 2025 and affecting a wide range of ASEAN exports, have placed particular pressure on regional manufacturing hubs such as Vietnam, Thailand, and Malaysia. These developments have accelerated ASEAN’s pivot toward emerging markets and partners that offer more predictable and mutually beneficial trade relationships.

Meanwhile, the GCC states are undergoing their own transformation. Long reliant on hydrocarbons, Gulf countries are pursuing aggressive economic diversification strategies under national development plans such as Saudi Arabia’s Vision 2030, the UAE’s Centennial 2071, and similar initiatives in Bahrain, Oman, and Qatar. These plans emphasize the growth of non-oil sectors such as technology, finance, logistics, tourism, and clean energy. ASEAN, with its young population, fast-growing consumer markets, digital innovation ecosystems, and increasing demand for investment, presents itself as an ideal partner in this transformation.

Against this backdrop, the summit’s discussions were wide-ranging and forward-looking. One of the key announcements was the intent to explore a formal ASEAN–GCC Free Trade Agreement. While trade between the two blocs already surpassed $130 billion in 2024, leaders expressed the ambition to grow this figure to $180 billion by 2032. The proposed FTA would not only aim to reduce tariffs and non-tariff barriers, but also address regulatory alignment, logistics facilitation, and investment protection, which are crucial elements for promoting long-term private sector engagement and regional value chain integration.

Beyond trade, energy cooperation emerged as a central theme. The two regions discussed scaling up collaboration on energy security and energy transition, including the joint development of clean hydrogen, the establishment of long-term LNG supply agreements, and potential investment in electricity interconnection projects. The Gulf countries, rich in capital and increasingly committed to carbon neutrality, are keen to partner with ASEAN countries pursuing ambitious decarbonization targets and renewable energy goals. Such cooperation could include financing solar and wind power projects, exchanging best practices on energy regulation, and co-investing in regional energy infrastructure.

Digital transformation was another strategic pillar of the summit. Leaders emphasized the potential of a joint digital economy agenda, covering areas such as smart cities, e-commerce regulation, data governance, cybersecurity, and artificial intelligence. The prospect of jointly developing digital infrastructure such as undersea fiber-optic cables, cloud computing facilities, and cross-border digital payment systems was identified as an area with vast untapped potential. This digital cooperation could support both regions’ efforts to strengthen economic resilience, improve productivity, and expand access to technology across urban and rural communities.

Food security and agricultural trade also figured prominently in the discussions. GCC countries, many of which face limited agricultural capacity due to arid climates, are increasingly investing in food imports and agri-tech innovation. ASEAN, as a major food-producing region, offers supply stability and opportunities for investment in value-added production. Plans for joint research initiatives, supply chain modernization, and the promotion of Halal-certified food exports were discussed as part of broader food system resilience strategies.

Connectivity, both physical and institutional, was another key focus. The summit emphasized the need to enhance air, sea, and land linkages between ASEAN and GCC ports and cities. Leaders endorsed efforts to harmonize customs procedures, promote maritime cooperation, and explore joint investments in port infrastructure and transport corridors. Such initiatives would help reduce trade frictions, facilitate tourism, and improve regional integration. On the institutional front, the summit committed to strengthening ASEAN–GCC coordination mechanisms, including through more frequent diplomatic consultations, annual policy dialogues, and high-level exchanges between secretariats, ministries, and think tanks.

Cultural cooperation and people-to-people exchanges were also highlighted as vital components of the growing partnership. Both regions pledged to expand academic mobility programs, university partnerships, tourism promotion campaigns, and platforms for interfaith and intercultural dialogue. The development of ASEAN–GCC scholarship initiatives, cultural festivals, and youth exchanges was presented as a way to strengthen mutual understanding and long-term ties between societies.

Notably, the summit was also shaped by the presence of China during the trilateral ASEAN–GCC–China discussions. While ASEAN and the GCC maintained a strong emphasis on bilateral cooperation, China’s participation added a layer of geopolitical complexity and opportunity. China remains ASEAN’s largest trading partner and a major energy partner for the GCC. Leaders welcomed deeper trilateral dialogue and emphasized the importance of multipolar cooperation that does not exclude traditional partners but seeks to create new, complementary alliances.

The broader message emerging from the Kuala Lumpur summit is clear: ASEAN and the GCC are determined to take greater control of their own economic destinies. Faced with global instability, unpredictable U.S. trade policy, and rising geopolitical tensions in Europe and the Indo-Pacific, both regions are moving toward a more strategic form of regionalism. Rather than relying on traditional institutions or alliances, they are seeking pragmatic, sector-specific partnerships that deliver tangible benefits for their populations and reduce strategic dependencies.

The summit also reflected the growing confidence and capability of regional organizations like ASEAN and the GCC to serve as platforms for diplomatic innovation and economic coordination. Their ability to convene not only their member states but also major powers such as China speaks to a new reality in global affairs: the center of gravity in trade, finance, and strategic engagement is shifting steadily toward Asia and its surrounding regions.

In sum, the 2025 ASEAN–GCC Summit in Kuala Lumpur was more than a ceremonial gathering. It was a strategic convergence rooted in shared interests and shaped by a changing global environment. As the two regions implement the joint decisions and frameworks laid out at the summit, their cooperation could become a model for how middle powers and regional blocs can shape a more stable, prosperous, and multipolar global order on their own terms and in pursuit of shared futures.