According to Jamal Bin Saif Al Jarwan, secretary-general of the UAE International Investors Council (UAEIIC), the UAE has solidified its position as a leading regional and global player in foreign direct investment. As of the beginning of 2024, the estimated total value of Emirati investments abroad, spanning both the government and private sectors, is an astounding $2.5 trillion. This substantial financial presence establishes the UAE as a significant economic force with strong potential for further growth. The UAE’s focus on emerging markets and the formation of strategic partnerships contribute to this momentum, opening up new avenues for investment opportunities.
Read more: UAE investments in Egypt increase by 169 percent in H1: Data
The UAE’s commitment to international economic engagement is evident through its recent involvement in various strategic partnerships, alliances, cross-border deals, and acquisitions. This proactive approach has established the UAE as a strong and influential presence on the global economic stage.
UAE and Egypt
Al Jarwan highlights the historic $35 billion investment agreement between the UAE and Egypt for the development of Ras Al Hekma as a significant milestone. This groundbreaking partnership represents the largest direct investment in Egypt’s history and symbolizes confidence and a transformative shift in the regional investment landscape. Despite global economic challenges, this ambitious project presents a unique opportunity for both nations.
Al Jarwan estimates that the UAE’s total investment in Egypt will reach approximately $65 billion once the Ras Al Hekma project is completed. He explains that this $35 billion project, spearheaded by Abu Dhabi’s ADQ investment and holding company, offers significant short, medium, and long-term benefits to the Egyptian economy.
In addition to immediate advantages, such as strengthening the Egyptian pound, stabilizing supply chains, and normalizing prices, Al Jarwan emphasizes that the deal positions Egypt as a leading destination for foreign direct investment in the upcoming UNCTAD report. This signifies international confidence in Egypt’s potential and sets the stage for increased foreign investment in the years ahead.
Deepening of strategic and economic partnership
Al Jarwan points out that the UAE-Egypt deal signifies a deepening of strategic and economic partnership, enhancing cooperation in investment and infrastructure. It aligns with the UAE’s strategy of leveraging foreign investments for global leadership and sustainable regional development, while also expanding the presence of Emirati companies in Egypt.
The joint investment in the Ras Al Hekma project aims to stimulate economic activity, create job opportunities, and foster knowledge exchange in smart city development and tourism, contributing to mutual prosperity and technical cooperation between the two countries. The project entails the development of a vast “city of the future” spanning 170 million square meters (over 40,600 acres), making it one of the largest new city development projects. It is anticipated to attract over $150 billion in investments for Egypt over its lifespan.
Regarding the future of UAE investments in Egypt, Al Jarwan expresses optimism as economic relations between the two countries continue to evolve positively. He emphasizes the importance of specificity and a deep understanding of the Egyptian economy for successful investments, highlighting factors that encourage injecting foreign currency and stimulating the economy in emerging markets.
Al Jarwan explains that the UAE is a leading investor in Egypt, with approximately 2,000 Emirati companies operating across various sectors such as telecommunications, real estate, oil and gas, agriculture, and more. He underscores the global strategic interest in UAE investments due to positive factors, confidence in UAE leadership, and professional investors.
Furthermore, he mentions that the UAE operates in 90 countries and expects interest in investments from countries like India, Indonesia, ASEAN nations, Egypt, Morocco, as well as certain European countries and Türkiye.
For more news on the economy, click here.
