Mutual investments between the UAE and Jordan, which currently exceed $22.5 billion, are set for a significant expansion following the Comprehensive Economic Partnership Agreement (CEPA).
Following the agreement signing, several UAE ministers and officials highlighted the importance of the CEPA with Jordan in fostering economic growth, prosperity, and cooperation between the two nations. The agreement paves the way for new opportunities in vital sectors and facilitates trade and investment flows, boosting collaboration in key areas including industry, energy, agriculture, and food security.
CEPA supports renewable energy development
For his part, Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, said that the UAE-Jordan CEPA aims to stimulate bilateral trade and enhance the competitiveness of the business ecosystems in both countries, which are key pillars of their economic visions. He noted that Jordan, as a fast-growing economy with a strategic location at the heart of the Arab world, is an ideal regional partner for these efforts.
“The CEPA aligns closely with Jordan Energy Strategy for 2020-2030 and supports the development of renewable energy, with 29 percent of Jordan’s electricity already coming from solar and wind power,” stated Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure.
Industrial sector boost
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, stated that the agreement aligns with the UAE leadership’s vision of continuously strengthening cooperation with both regional and international partners in support of sustainable economic and social development efforts.
He added that the UAE-Jordan CEPA complements the Industrial Partnership for Sustainable Economic Growth launched in 2022 with Jordan and Egypt. Since then, the partnership has expanded to include more countries. It offers new investment opportunities and developmental enablers in diverse industrial sectors, including textiles, metals, pharmaceuticals, petrochemicals, among others.
Jordan’s GDP to rise 3 percent over the next five years
Commenting on the UAE-Jordan CEPA, Abdulla bin Touq Al Marri, Minister of Economy, said: “This partnership is central to our vision of positioning the UAE as a global economic hub, expanding into new markets, and boosting our competitiveness.”
Jordan is a significant economic and trade partner in these efforts, with its real GDP projected to reach approximately $54 billion in 2024 and grow by 3 percent over the next five years. Al Marri also highlighted numerous opportunities to enhance cooperation in key sectors, particularly the new economy, tourism, renewable energy, financial services, and agriculture.
“As the UAE embarks on an ambitious growth agenda focused on strategic investments in high-potential sectors globally, Jordan stands out as a promising partner in areas such as energy, manufacturing, tourism, healthcare, and real estate,” added Mohamed Hassan Alsuwaidi, Minister of Investment.
Read: UAE, Jordan sign CEPA, set to boost growth in key sectors
Non-oil trade exceeds $4.1 billion
Meanwhile, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, noted that Jordan is a key regional trade partner for the UAE. In 2023, non-oil trade between the two countries exceeded $4.1 billion, marking a 46.1 percent increase compared to pre-pandemic levels in 2019.
“This agreement enhances bilateral economic cooperation and provides new investment opportunities in energy, manufacturing, agriculture, and transportation,” added Khalifa Shaheen Al Marar, Minister of State.
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