Mon 24-10-2022 17:04 PM
ABU DHABI, 24th October, 2022 (WAM) -- The economic relations between the UAE and Egypt have developed significantly over the last 50 years through bilateral cooperation and many significant investments.
These relations were crowned this year by the signing of the Industrial Partnership for Sustainable Economic Growth.
The UAE is Egypt’s second leading trade partner in the region while Egypt is the fifth leading trade partner of the UAE in terms of non-oil trade, accounting for seven percent of the total Emirati non-oil trade with Arab countries.
The UAE is also the largest international investor in Egypt, with cumulative investments worth over AED55 billion.
Over the past 22 years, UAE-Egypt non-oil trade has totalled over AED247.68 billion, rising by 3,635 percent since 2000, according to data by the Federal Competitiveness and Statistics Centre.
The non-oil trade exchange between the two countries surged to over AED27.79 billion in 2022 while their total trade exchange in H1 of 2022 increased by over AED14.1 billion compared to AED13.2 billion, an increase of 6.4 percent.
Their trade from 2000 until the end of the H1 of 2022 was distributed between imports at AED83.3 billion, exports at AED61.3 billion, and re-exports at AED102.9 billion.
The top three commodities imported from Egypt in 2021 included crude gold valued at AED1.39 billion, postal and financial stamps worth AED1.23 billion, and display screens worth AED1.01 billion. The leading commodities exported to Egypt were crude gold valued at AED2.83 billion, ethylene polymers worth AED1.2 billion, and propylene polymers worth AED822 million.
The top three commodities that were re-exported to Egypt were communication devices worth AED4.03 billion, data processing equipment worth AED1.96 billion, and petroleum oils and oils obtained from continental mineral resources other than crude oil valued at AED450 million.
The value of Emirati investments in Egypt from 2003 to 2019 totalled some AED110 billion while the country was ranked first globally in terms of the number of companies operating in Egypt with nearly 1,250 companies, with capital amounting to US$17 billion.
The UAE is the largest investor in Egypt, with cumulative investments exceeding AED55 billion. More than 1,250 Emirati companies are operating in Egypt with projects in the wholesale and retail sectors, as well as in the transport, warehousing, logistics, financial, insurance, information and communication technology, real estate, construction, tourism, agricultural and food security sectors.
Egyptian companies have invested over AED4 billion in the UAE in the real estate, financial, construction, wholesale and retail sectors.
In May 2022, the two countries, along with Jordan, announced the signing of the Industrial Partnership for Sustainable Economic Growth, as well as the creation of a US$10 billion investment fund.
In 2019, the two countries launched a joint strategic investment platform valued at US$20 billion, to help implement vital economic and social projects.
In 2021, Sky AD announced its intention to invest EGP15 billion in launching real estate projects in Egypt over two years. The AD Ports Group also highlighted its plan to invest between US$23 billion and US$35 billion in Ain Sokhna Port over three years.
In June 2022, the Al Futtaim Group announced its plan to inject investments worth US$700 million to US$1 billion over the next three years.
The investments of ADQ in Egypt include stakes in the Commercial International Bank (CIB), one of the largest Egyptian banks, the Fawry payment platform, a pioneer in digital transformation and payments in Egypt, the Alexandria Container and Cargo Handling Company, the Misr Fertilisers Production Company (MOPCO) and the Abu Qir Fertilisers and Chemicals Company.