Emirates, Jordan and Egypt seal major industrial partnership agreement
The United Arab Emirates, Jordan and Egypt have taken a remarkable step forward in their economic cooperation thanks to the latest industrial partnership agreement initialled after a meeting in Abu Dhabi between Emirati President Mohamed bin Zayed al-Nahyan, Jordanian Prime Minister Bisher al-Khasawneh and Egyptian Prime Minister Mostafa Madbouly.
The three leaders announced an "industrial partnership for sustainable economic growth'' between the UAE, Jordan and Egypt, leading countries in the Arab world.
Sheikh Mohammed bin Zayed al-Nahyan duly received the Prime Ministers of Jordan and Egypt and conveyed warm messages to King Abdullah II of Jordan and Egyptian President Abdel Fattah al-Sisi. After the formal reception, the Emirati leader highlighted this industrial partnership aimed at sustainable economic growth and praised it as a major step forward in the progress of the three nations.
As reported by the official Emirati news agency WAM, Sheikh Mohammed bin Zayed pointed out that the current context makes it necessary to strengthen economic alliances between Arab countries, in addition to seeking new forms of cooperation, applying integrating initiatives and taking advantage of the characteristics of each country to seek a remarkable economic and industrial development within the standards of sustainability and guaranteeing economic and productive independence, something that is very important in times of global crises, such as the latest ones experienced with the coronavirus pandemic or the Russian invasion of Ukraine.
In this case, the aim is to strengthen the capacities of the three countries in various sectors such as food, energy, industrial production, health and national security.
An indication of the significance of this partnership is that the combined industrial capacity of these three countries accounts for 26% of the total of the entire MENA region. The combined capacity of the three countries makes up around 22% of the Gross Domestic Product of the Middle East and North Africa, with a value of around $765 billion, according to World Bank statistics in 2019.
The United Arab Emirates, the Arab Republic of Egypt and the Hashemite Kingdom of Jordan seek through this industrial partnership for sustainable economic growth to bring about an improvement in the industrial fabric and promote a sustainable economy in various sectors.
Sheikh Mansour bin Zayed al-Nahyan, Deputy Prime Minister and Minister of Presidential Affairs of the Emirates, was present at the signing of the agreement at the working meeting in the Emirati capital, which served to outline the partnership's objective of pursuing sustainable economic growth in the food, agriculture, pharmaceutical, textile, mineral and petrochemical sectors. The Prime Ministers of Egypt and Jordan were present at this working and signing session along with Mansour bin Zayed al-Nahyan.
The partnership agreement was initialled by Sultan bin Ahmed al-Jaber, Emirati Minister of Industry and Advanced Technology, Nevein Gamea, Egyptian Minister of Industry and Trade, and Yousef al-Shamali, Jordanian Minister of Industry, Trade and Supply.
To realise this pact, a $10 billion investment fund was established and will be managed by ADQ Holding. ADQ has become the leading vehicle for Abu Dhabi's outbound investments, managing around $110 billion in assets, according to Global SWF. The three nations in the partnership have a number of unique resources and competitive advantages, including access to raw materials. In particular, they enjoy strong capabilities in the pharmaceutical industries, with a clear ambition to develop and expand them further and increase their production capacity. They also wish to strengthen manufacturing capabilities in the steel, aluminium, petrochemicals and derivatives sectors.
It should also be noted that these countries also have an important logistical capacity that allows for a high level of distribution thanks to their airports, ports and transport corridors, with the Suez Canal as a prime example. In addition, the Emirates, Egypt and Jordan have an important business network and great access to sources of financing. All of which allows for the development of an important industrial field that, with the three countries together, provides an industrial and development platform to be taken into account.
Sheikh Mansour bin Zayed al-Nahyan said: "The partnership embodies the vision of President Sheikh Mohammed bin Zayed al-Nahyan to enhance industrial integration with Arab nations and the rest of the world so that we can achieve a quantum leap in the industrial sector and transform its potential into an economic engine". "Industry is the backbone of the world's largest economies. Through its capabilities, effective policies and current focus on developing advanced technology and logistics infrastructure, we are confident that the UAE can build a global economic powerhouse by leveraging industry and partnerships across the region," said the Emirati deputy prime minister, who also added that "advancing the industrial sector in the UAE, Egypt and Jordan will help strengthen and diversify the economy in each nation and increase the contribution of industry to national GDP." "This partnership is also a testament to the ability of its signatories to strengthen their relationships and introduce new projects and industries within an integrated industrial ecosystem, while opening up promising opportunities for future generations," Mansour bin Zayed al-Nahyan explained.
For his part, Bisher al-Khasawneh said the partnership enhances integration, protects supply chains, boosts import substitution and promotes sustainable economic development, all of which will facilitate economic growth, job creation and other economic benefits, as reported by WAM.
Meanwhile, Egyptian Prime Minister Mostafa Madbouly thanked the leaders of Egypt, Jordan and the United Arab Emirates for reaching this partnership agreement, which allows for great economic and industrial development that serves to address current challenges. "The pandemic and the Russian-Ukrainian crises undoubtedly revealed the need for integration between our Arab countries in a way that helps achieve the interests of our peoples in Egypt, the UAE and Jordan, and this could become the seed of a stronger and broader cooperation," Madbouly remarked.
"The projects that have been agreed will create added value for all three countries and will have a positive impact on national security, local industry and supply chain activities. There will be continuous monitoring of the implementation of these projects, facilitating procedures and overcoming obstacles. Our aim is to quickly reap the benefits of these projects, especially as the first phase allows for many achievements in terms of improving food and pharmaceutical safety. The projects will also attract foreign investment and provide job opportunities for our youth," added the Egyptian prime minister.