The UAE, Egypt, and Jordan announced in Abu Dhabi a new phase of economic relations by launching an integrated industrial partnership to achieve sustainable economic development across five promising industrial sectors that encompass food and agriculture, fertilizers, pharmaceuticals, textiles, minerals, and petrochemicals.
According to the UAE Minister of Industry and Advanced Technology Sultan Al Jaber, a $10 billion investment fund administered by Abu Dhabi state holding firm ADQ has been allocated to invest in initiatives arising from this agreement in the agreed-upon industries. He claims that the economic alliance will increase wheat and corn production to 30 million tons per year.
The combined capacity of the three countries accounts for about 22 percent of the MENA region’s GDP, or $765 billion, according to World Bank statistics in 2019.
The UAE, Egypt, and Jordan represent 22 percent of the gross domestic product (GDP) in the MENA region, with $765 billion annually.
The three countries also account for 26 percent of the population in the MENA region, with a combined population of about 122 million people, 49 percent of whom are in their youth, implying a vast market and a young workforce.
The three countries have abundant sources of minerals that will contribute significantly to value-added products, as the iron, metals, aluminum, and steel market in the three countries is anticipated to be worth $13 billion, with a 2 percent annual growth rate.
The agreement was signed in the presence of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Jordanian Prime Minister Bisher Al-Khasawneh, Egyptian Prime Minister, and Mostafa Madbouly.
Mansour bin Zayed
“This partnership embodies the vision of Sheikh Mohamed bin Zayed Al Nahyan, President of the State, to promote industrial integration with Arab countries and the rest of the world in order to achieve a qualitative leap in the industrial sector and make it a major lever for the economy,” Sheikh Mansour bin Zayed said.
He stated that “Developing the industrial sector in the participating countries will enable industrial development in the three countries, diversifying the economy, and increasing the contribution of industry to the domestic product.”
Al-Khasawneh
For his part, Bisher Al-Khasawneh said in his speech at the signing ceremony that this partnership establishes great industrial opportunities between these countries, in a way that enhances integration, protects supply chains, and enhances sustainable economic development, which is reflected in economic growth figures, job creation, among other prospects.
Madbouly
Madbouly said, “The crisis of the Corona pandemic, and the subsequent Russian-Ukrainian crisis, revealed beyond any doubt the need for integration between our Arab countries, in a way that contributes to achieving the interests of our peoples, in Egypt, the Emirates, and Jordan, which could become the nucleus of strong for more comprehensive cooperation between our Arab countries.”
Prior to this agreement, the UAE ADP Holding Company invested $266 and $391 million, respectively, in the two Egyptian enterprises MOPCO and Abu Qir Fertilizers, demonstrating the importance of economic cooperation between the three nations. ADQ also made a $987 million investment in Egypt’s Commercial International Bank. In addition, $186 million was invested in the Alexandria Company for Container and Cargo Handling with the goal of improving the river transportation system and building ports.
Jordan has received around $17 billion in UAE investments in infrastructure, transportation, tourism, agriculture, manufacturing, and renewable energy. According to the Emirates News Agency, there are also investment projects and cooperative projects in financial technology, health, and agriculture.
Strong economies and booming industries
The economies and industries of the three countries represent a unique model in the region.
Jordan’s industrial sector is an important aspect of the country’s economic objectives, contributing 25 percent of GDP, the highest percentage among Arab countries. The industrial sector generates $25 billion in annual output and employs around 250,000 people over 17,000 establishments.
In the UAE, the industrial sector’s contribution to GDP increased to 150 billion dirhams, and industrial exports surpassed 116 billion dirhams, up more than 50 percent from the previous year, with more than 220 new industrial production units licensed, and 41.4 billion dirhams directed Emirati back to the UAE market through the National Value Added Program.
Meanwhile, the Egyptian industrial sector is active, with industrial output reaching 982 billion pounds in 2020-2021, accounting for nearly 15 percent of the country’s GDP. From 2020 to 2021, industrial investments were valued at 48.8 billion pounds, accounting for around 5.9 percent of total public investments.
According to data from 2021, the Egyptian economy’s GDP is estimated at $394.3 billion.
