Overview of Egypt-UAE thriving economic relations

CAIRO – 7 January 2018: Egypt and the United Arab Emirates (UAE) enjoy solid economic relations that have particularly developed following the 30 June revolution in 2013.

The UAE was among the top Arab states that scrambled to support Egypt’s economy after the June revolution and had offered great financial support.

Trade Minister Tarek Kabil said Sunday that trade relations between Egypt and the United Arab Emirates (UAE) is developing significantly in the current period, with the trade balance tilting in favor of Egypt to reach $1.5 billion in 2017, compared to $1.4 billion in 2016,

Egyptian exports to the UAE have increased significantly during the first half of 2017 to hit $1.204 billion, up from $1.126 billion during the same period of 2016, marking a seven percent increase.

According to data from the Central Bank of Egypt (CBE), the volume of trade exchange between Egypt and the UAE during the first nine months of the fiscal year 2016/17 increased by $300 million to reach $4.6 billion.

The volume of Egyptian exports to the UAE increased by 14 percent during the period from June 2016 to March 2017 to stand at about $2.3 billion, up from $1.8 billion during the same period a year earlier.

Meanwhile, Egyptian imports from the UAE decreased to reach $2.2 billion in the first nine months of 2016/17, compared to $2.7 billion during the same period of 2015/16, according to the CBE.

Egypt's main exports to the UAE include appliances, furniture, fruits and vegetables, medical supplies, copper products, clothing, marble and cables.

The UAE is ranked first on the list of countries that have established investments in the Egyptian market with $6.2 billion in total investment, distributed over 868 projects in the fields of communication, banking, real estate, tourism and information technology.

Signaling a strong economic relationship, both countries signed many cooperation agreements that kept this relationship thriving.

Among the most prominent agreements between both countries are the agreement signed between Egyptian Minister of Electricity Mohamed Shaker and Hussein al-Nowais of al-Nowais Investments, an investment company headquartered in Abu Dhabi, in March 2015 to produce energy from a coal-operated power plant between Egypt Electricity Holding Company and al-Nowais Investment.

The plant is operated by non-polluting coal with a production capacity of 2,640 megawatt in Oyoun Moussa area in compliance with global environment standards.

The project costs around $4.5 billion and will contribute to adding new capacity to the electricity sector and diversify resources of energy in the near future.

Another significant agreement is the signing of a LE 250 million cooperation protocol between Egypt and the UAE in April 2014 to train 100,000 youth of both genders on the latest technological and technical programs to meet the Egyptian market's needs of workforce.

Further, both countries signed an agreement In October 2013 for supporting the Egyptian development program. Under the agreement, the UAE would extend $4.9 billion for carrying out projects to upgrade the services sector, enhance the living standards and human resources in Egypt.