The Abu Dhabi Exports Office (ADEX), which serves as the export-financing arm of the Abu Dhabi Fund for Development (ADFD), has entered into a financing agreement with the National Bank of Egypt (NBE). This agreement aims to strengthen trade and economic relations between the United Arab Emirates (UAE) and Egypt. This collaboration marks a significant milestone, highlighting the enduring bond between the two nations and their shared dedication to fostering mutual prosperity and growth.
As per the agreement’s provisions, a revolving loan facility worth $100 million has been established. The main objective of this facility is to facilitate transactions related to UAE exports to Egypt. This initiative aims to strengthen economic activities and foster cross-border trade relations, building upon the already thriving trade landscape between the two nations.
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Mohamed Saif Al Suwaidi, director-general of ADFD and chairman of the Exports Executive Committee of ADEX, stated that the agreement with the National Bank of Egypt is in line with the vision of the leadership. He emphasized the commitment to enhancing national exports. Al Suwaidi highlighted that the financing provided by ADEX is a significant step forward, contributing actively to the growth of the national economy. He also emphasized the strategic partnership that enriches trade relations between the two countries.
Strengthening competitiveness
The agreement would support ADEX’s aspirations to access emerging regional and global markets. The aim is to enable Emirati exporters to broaden their international reach and strengthen their competitiveness on a global level. This, in turn, would lead to an increased contribution to the economy, according to Al Suwaidi.
The agreement represents a significant achievement in ADEX’s continuous endeavors to enhance cooperation with Egypt and other nations. The partnership was established through separate signings by each party, which were later consolidated to solidify the foundation of the collaboration.
To support the economy and facilitate the global expansion of Emirati exporters, ADEX provides loans and guarantees. The agreement signifies a strategic collaboration aimed at fortifying the export sector and aligning with shared interests.
AED 247.6 billion
According to a report from the Emirates News Agency, the trade between the UAE and Egypt has reached a total of AED 247.6 billion ($67.4 billion) over a span of 22 years.
The UAE is Egypt’s second-largest trade partner in the region, and Egypt ranks fifth in terms of non-oil trade partners for the UAE among Arab countries. The UAE is also the largest international investor in Egypt, with investments exceeding AED 55 billion.
Additionally, the non-oil trade between the two countries has experienced significant growth, increasing by 3,635 percent since 2000.
In 2022, the trade exchange between the UAE and Egypt amounted to over AED 27.79 billion.
Moreover, the UAE and Egypt have established significant investment projects and partnerships, including the Industrial Partnership for Sustainable Economic Growth and a $10 billion investment fund. Egyptian companies have also invested over AED4 billion in the UAE.
Trade growth
The trade between the UAE and Egypt witnessed a 6.5 percent growth, reaching $4.6 billion during the first 11 months of 2022. This indicates an increase compared to the trade volume of $4.3 billion recorded during the same period in 2021.
In the specified period, the UAE saw an increase in its investments in Egypt, with a surge of 300.8 percent to reach $5.7 billion during FY2021/2022, compared to $1.4 billion in FY2020/2021.
Furthermore, Egyptian exports to the UAE experienced a year-on-year growth of 14.4 percent, reaching $1.8 billion, while imports from the UAE reached $2.8 billion, up from $2.7 billion in the same period of the previous year. Furthermore, remittances from Egyptian expatriates working in the UAE rose to $3.5 billion in FY2020/2021, surpassing the $3.4 billion recorded in FY2019/2020.
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