UAE to add $10 billion to support investments in Egypt, Jordan

The UAE has allocated $10 billion (Dh36.7 billion) investment fund to the Industrial Partnership for Sustainable Economic Growth between UAE, Egypt, and Jordan, which was launched in Abu Dhabi on Sunday, a top government official has announced.

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology said during the launch of the partnership on May 29 that the fund, which has been allocated to the initiative based on the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, will be managed by the Abu Dhabi Holding Company.

The partnership aims to achieve sustainable economic development between the UAE, Egypt and Jordan, and will contribute to supporting industrial integration among the three nations.

"This strategic partnership is in line with the directives of the visionary leadership of our three nations, who have historically strong relations across multiple sectors," said Dr Al Jaber.

"The UAE leadership continues to be committed to expanding on these relations and partnerships to enhance sustainable development in our region as well as security, safety, and prosperity for our people. The industrial sector is a key driver of our collective growth, building on our capabilities and unique advantages."

Al Jaber pointed out that through these partnerships, the UAE look forward to launching a new model of integration and partnership with "our brothers in the Arab world and across the globe."

The three nations signed the partnership agreement in Abu Dhabi in the presence of Sheikh Mansouri bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of Presidential Affairs, Dr Bisher Al-Khasawneh, Prime Minister of Jordan and Dr Mostafa Madbouly, Prime Minister of Egypt.

UAE, Egypt, and Jordan share a long history of economic, political, and social relations. The integrated industrial partnership for sustainable development represents a continuation and further deepening of those brotherly ties.

This partnership is an opportunity for all three countries to further explore partnership and joint investment opportunities in vital areas of mutual and strategic interest.

The partnership identified five common sectors of mutual interest, which will serve as initial areas of focus to enhance economic development, and industrial integration and further integrate the value chains in the three nations. The Industrial Partnership aims to leverage the competitive advantages of each of the three countries to develop their key industries and enhance cooperation.

The mutual strategic objectives of the partnership include pursuing sustainability-led growth, achieving supply chain security and resilience, developing globally competitive industries, boosting value-added manufacturing sectors and further integrating value chains and trade among the three countries.

According to Dr Al Jaber, the three nations enjoy combined advantages that include a GDP of approximately $765 billion and the energy and potential of more than 60 million young people.

"We have a world-class infrastructure, such as the Suez Canal, through which about 13 per cent of the world's trade passes, and some of the largest commercial ports such as Jebel Ali, Khalifa Port and the Port of Aqaba," he said.

"Our countries also enjoy significant resources such as oil and gas, renewable energy, and minerals such as gold, phosphates, silica sand and others. And in addition to the food, pharmaceutical, fertilizer and textile industries, these collective advantages can be harnessed to enhance multiple other sectors."

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The three nations also benefit from the security, safety and stability, a supportive legislative and legal system, financing capabilities, as well as credibility and reliability in the international community as trusted partners.

"We have skilled labour, raw materials, a strategic geographic location, a large consumer market, and many other combined significant advantages that will enable the acceleration of our collective industrial development," added A; Jaber.

In 2019, the combined contribution of the petrochemical industry to the GDP of the UAE, Egypt and Jordan was $16 billion. "We will now create promising opportunities for the development of this sector and its related industries, which are valued at more than $21 billion," said the UAE minister.

UAE, Egypt, and Jordan represent a combined export value of $419 billion and imports value of $380 billion.

The meeting was also attended by several UAE investors who were briefed on promising investment opportunities in Egypt and Jordan and incentives offered by the governments to attract further investments.

- ismail@khaleejtimes.com

• Abu Dhabi