The United Arab Emirates (UAE) has solidified its position as one of the leading foreign investors in Jordan. It poured nearly $22.5 billion into various sectors of Jordan’s economy over the past ten years. The revelation was made by the Jordanian Energy and Mineral Resources Ministry. This underscores a remarkable surge in bilateral economic ties.
A recent report from Jordan’s daily Al-Ghad highlights the rapid growth of UAE investments in Jordan over the past decade. The main focus of the investments has been on renewable energy projects. This strategy aligns with the UAE’s global commitment to sustainable development and green energy initiatives.
Jordan’s renewable energy landscape
Abu Dhabi-based Masdar is among the key investors from the UAE. It now controls nearly 31 percent of the Jordan Wind Projects Company (JWPC). Masdar’s substantial investment of almost $90 million in the JWPC project showcases a commitment to advancing Jordan’s renewable energy goals. Furthermore, Masdar’s contribution extends to a noteworthy $240 million investment in a 200MW solar power project in Jordan.
Meanwhile, another example of collaborative investment is the Sheikh Zayed Solar Park in the southern port of Aqaba. This project was funded by the Abu Dhabi Development Fund with a cost of nearly $150 million. Notably, the project contributes to the renewable energy landscape in Jordan and also symbolizes the shared commitment of both countries to sustainable development.
UAE investments in Jordan gained additional thrust last month with a groundbreaking agreement. The Emirates pledged $400 million to fund various projects in Jordan, encompassing critical initiatives. This includes the construction of a $70-million gas network in select industrial zones, further reaffirming the UAE’s commitment to Jordan.
Strengthening the partnership
Earlier this month, Jordan and the UAE also signed memoranda of understanding worth an impressive $6 billion. These agreements include partnerships such as the one between Abu Dhabi Developmental Holding Company (ADQ) and the Jordan Investment Fund. Additionally, the UAE government granted Jordan finances for key development projects.
Moreover, the UAE Ministry of Investment further solidified that relationship by signing another $2 billion memorandum of understanding with Jordan. This agreement focused on infrastructure and development projects.
Read: Dubai’s non-oil private sector economy hits 4-year peak
Non-oil trade surge
In the past decade, non-oil trade between the UAE and Jordan has surged by an impressive 138 percent. It reached a total of 4.47 billion by the end of 2022. This surge continued in the past year, growing by 46.4 percent. This reinforces the UAE’s position as one of Jordan’s top non-oil trading partners.
The total mutual investments between the two states are estimated at $22.5 billion, reflecting the depth of economic cooperation. Jordanian registered trademarks in the UAE total 1,908. Moreover, 20 commercial agencies and 34 companies operate in seven main sectors in the UAE. Thus, the economic ties between the two nations are diverse and robust.
Furthermore, the Joint Economic Committee between the UAE and Jordan plays a pivotal role in enhancing trade and investment flows. It contributes to the growth of vital economic sectors in both countries. Both, Jordan and the UAE, focus on innovation, technology, and digital transformation applications. Therefore, this committee is instrumental in fostering increased trade flows and the development of economic cooperation between them. Thus, the joint will to enhance cooperation and increase trade channels sets the stage for continued prosperity and mutual success.
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