UAE’s ADQ to allocate $10b in investments in partnership with Egypt, Jordan

Abu Dhabi: The UAE, Egypt and Jordan signed an industrial partnership across key sectors on Sunday, an agreement that will also see Abu Dhabi’s sovereign fund ADQ allocate $10 billion towards its projects.

The agreement spans sectors such as agriculture, pharma, food, petrochemicals, minerals and textiles.

The deal, Dr. Sultan bin Ahmed Al Jaber Minister of Industry and Advanced Technology said, will aim to nearly double the production of wheat and corn in the three countries combined, and also increase by 30 per cent the contribution of the petrochemicals industry to their combined gross domestic product.

“The industrial sector is a key driver of our collective growth building on our capabilities and unique advantages,” said Dr. Al Jaber. “Through these partnerships, we look forward to launching a new model of integration and partnership in the Arab world and across the globe.”

With this agreement, the UAE eyes long-term strategic partnerships to enhance stability, achieve socio-economic prosperity, and harness resources.

A win-win

“Our three nations enjoy combined advantages that include a GDP of approximately $765 billion and the energy and potential of more than 60 million young people,” said Dr. Al Jaber in his speech. “We have a world-class infrastructure, such as the Suez Canal, through which about 13 per cent of the world’s trade passes, and some of the largest commercial ports such as: Jebel Ali, Khalifa Port and the Port of Aqaba.”

He said that the three Arab nations also enjoy significant resources such as oil and gas, renewable energy, mineral, food fertilizer and textile industries. Dr. Al Jaber reckons these collective advantages can be harnessed to ‘enhance multiple other sectors’.

“This is a partnership that signifies our mutual interest in building industrial partnerships, combining our advantages, expertise and capabilities to ensure we enhance our self-sufficiency as well as our food and health security,” said Dr. Al Jaber.

Key sectors

While talking about the opportunities emerging from the partnership, Dr. Al Jaber said, “In the field of agriculture and food, we have an opportunity to increase the production of wheat and corn in the three countries from 16.5 million tons to about 30 million tons annually.”

According to the Minister of Industry and Advanced Technology, the metals sector provides opportunities for projects worth $23 billion through high-value products manufacturing such as: glass, electrical wires, automotive components, and solar panels.

“Through the integration of expertise and resources, we will be able to increase production and industrial investment, create jobs, and achieve positive growth for all,” he said.

In 2019, the combined contribution of the petrochemical industry to the GDP of the UAE, Egypt and Jordan was $16 billion. With this partnership, the three nations want to shore up the numbers to $21 billion.

“We extend an open invitation of partnership to support this new Industrial partnership by encouraging private sector participation, stimulating advanced technology applications, providing smart financing solutions, and opening markets to enhance growth, said Dr. Al Jaber. “We look forward to further opportunities that will achieve sustainable industrial and economic growth.”