Oil

Non-oil trade exchange between Egypt, UAE exceeds $3.8bn in 5 months

The volume of non-oil trade exchange between Egypt and the UAE from January to May 2022 amounted to more than 14.1 billion dirhams (over $3.8bn), a growth of 6% compared to the same period in 2021.

The volume of non-oil foreign trade between Egypt and the UAE amounted to about 27.8 billion dirhams (over $7.5bn) during 2021, with a growth rate of 7.6% compared to 2020.

Next Wednesday, Egypt will celebrate the 50th anniversary of the establishment of the Emirati-Egyptian relations.

According to recent indicators, May 2022 witnessed the announcement of an integrated industrial partnership for sustainable economic development that brings together the two countries in addition to Jordan, in order to achieve sustainable economic development in five promising industrial fields that are qualified for integration and cooperation. Moreover, an investment fund worth $10bn will be allocated to invest in relevant projects.

The UAE ranked first among the countries in the world investing in Egypt, as the value of Emirati investments in Egypt increased to $1.9bn in FY 2019/2020, compared to $712.6m in FY 2018/2019, an increase of 169.1%. The value of investments issued by the UAE to Egypt during the period from 2013 to 2021 is estimated at $16bn (59 billion dirhams).

In 2019, a joint strategic investment platform was launched between the UAE and Egypt, with a value of $20bn, to implement vital projects in economic and social fields. UAE’s support to Egypt during 2013 and 2014 amounted to more than 51 billion dirhams (equivalent to $13.9bn), and included vital sectors, such as education, training, housing, transportation, health care, food security, and energy.

In October 2013, the two countries signed an agreement to support the Egyptian development program, under which the UAE will provide $4.9bn to implement a range of development projects in Egypt.

In 2015, the UAE announced a support package worth 14.7 billion dirhams (equivalent to nearly $4bn) for Egyptians, consisting of two tranches of equal value, one of which is a deposit in the Central Bank of Egypt (CBE) and the other for various projects in several sectors.

The UAE is Egypt’s second largest trading partner at the Arab level, while Egypt is the UAE’s fifth largest Arab trading partner in non-oil trade, and accounts for 5.2% of its total non-oil trade with Arab countries.

In terms of investment, the UAE is the largest investor in Egypt at the Arab level, with a cumulative investment balance of more than $16bn (equivalent to 59 billion dirhams).

More than 1,300 Emirati companies are working in Egypt in projects and investments in various sectors. These sectors include wholesale and retail, transportation, warehousing and logistics, in addition to the financial sector and insurance activities, as well as information and communication technology, real estate and construction, tourism, agriculture and food security.

Egyptian companies also invest in various sectors in the UAE markets, and among their most prominent projects are real estate, financial, construction, wholesale and retail trade, manufacturing, communications, information technology, construction, transportation, and warehousing.

The communications and information technology sector tops the Emirati investments in Egypt with about 55 companies and investments amounting to $2bn, followed by the financing sector with investments of $1.7bn with 49 established companies. The construction sector comes third with investments of $814m and 118 companies. The investments of the industrial sector ranked fourth with 131 companies and investments worth $544m. Investments in the service sector ranked fifth, with a total of $343m and 275 companies, and finally tourism investments came in sixth place with 48 companies and investments of $260m.



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