Industrial partnership to focus on 5 key sectors: food agriculture and fertilizers; pharmaceutical; textiles; minerals; and petrochemicals
A US$10 billion investment fund has been allocated to accelerate the partnership objectives and will be managed by ADQ Holding
Abu Dhabi, UAE – The United Arab Emirates, the Arab Republic of Egypt and the Hashemite Kingdom of Jordan have announced an Industrial Partnership for Sustainable Economic Growth in Abu Dhabi today to unlock new industrial opportunities and enhance sustainable economic growth in the three countries, across 5 sectors.
His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Minister of Presidential Affairs, witnessed the signing of the partnership, which is designed to achieve sustainable economic growth across food and agriculture, fertilizers,, pharmaceuticals, textiles, minerals, and petrochemicals. In order to accelerate the partnership objectives, a US$10bn investment fund has been allocated and will be managed by ADQ Holding.
H.E. Dr. Mostafa Madbouly, Prime Minister of Egypt, and H.E. Dr. Bisher Al Khasawneh, Prime Minister of Jordan, witnessed the signing alongside His Highness.
The partnership agreement was signed by H.E. Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, H.E. Dr. Nevein Gamea, Egyptian Minister of Industry and Trade, and H.E. Yousef Al Shamali, Jordan Minister of Industry, Trade and Supply.
H.H. Sheikh Mansour bin Zayed Al Nahyan stated: “The partnership embodies the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to enhance industrial integration with Arab nations and the rest of the world so we can achieve a major leap in the industrial sector and transform its potential an economic driver. 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 industrial partnerships across the region.”
H.H. Sheikh Mansour added: “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 the national GDP. This partnership is also a testament to its signatories’ ability to strengthen their relations and introduce new projects and industries within an integrated industrial ecosystem, while unlocking promising opportunities for future generations.”
The three nations who are party to this partnership have diverse resources and unique competitive advantages, including access to raw materials. In particular, they enjoy robust capabilities in the pharmaceutical industries, with clear ambition to develop and expand them further and increase their production capacity. They also wish to strengthen manufacturing capabilities in the steel, aluminum, petrochemicals and derivatives sectors.
The three nations’ combined industrial capacity represents around 26% of the total industrial capacity of the MENA region. These countries also enjoy a highly developed logistical infrastructure, including airports, ports and strategic transport corridors such as the Suez Canal; major companies with distinct capabilities in the main focus areas of the partnership; and access to capital and smart financing solutions. Almost half the total population of the partner countries comprising 122 million people are young people, who represent both a large market and an emerging workforce.
His Excellency Dr. Bishr Al-Khasawneh delivered remarks at the signing ceremony highlighting that the partnership is a testament to the depth of the historic relationship between the 3 countries; emphasizing that that the partnership enhances integration, protects supply chains, empowers import substitution, and promotes sustainable economic development; all of which will result in economic growth, job creation and other benefits.
Dr. Al-Khasawneh thanked the leadership of the UAE for their efforts towards strengthening relations and economic cooperation in the region.
Al-Khasawneh said, “The continued active interaction and coordination at the leadership level confirms the strength of these relations with the industrial sector at the center of the partnership. In Jordan, an attractive investment destination, industry contributes to 24% of the GDP, and account for 21% of the countries employment. Jordan exports to many countries around the world and is empowered by supportive laws and regulations.
Jordan is eager to expand its global trade as the world recovers from the Covid 19 pandemic and continues to address global challenges.
For his part, Egyptian Prime Minister His Excellency Mostafa Madbouly thanked the leaders of Egypt, Jordan and the UAE for a significant partnership that embodies the depth of relations between the countries. He stressed that the support of the leadership in the three nations facilitated effective consultations and discussions between the stakeholders and specialists, resulting in the conclusion of these important agreements.
His Excellency Mostafa Madbouly said: “The pandemic and the Russian-Ukrainian crises revealed beyond any doubt 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 could become the seed for a stronger and broader cooperation.”
Dr. Madbouly stressed that the current regional and international conditions make it imperative for Arab countries to maximize opportunities for integration, especially since each country has its unique competitive advantage and its capabilities.
He added, “The projects that have been agreed upon will create an added value for the three countries and will have a positive impact on national security, local industry, and supply chain activities. There will be a continuous follow-up to the implementation of these projects, facilitating procedures, and overcoming obstacles. We aim to quickly reap the benefits of these projects, especially as the first phase achieves many gains in terms of enhancing food and drug security. The projects will also attract foreign investment and provide job opportunities for our youth.”
In his speech at the beginning of the signing ceremony, His Excellency Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, said: “In line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, the Ministry of Industry and Advanced Technology focuses on developing and empowering the industrial sector, enhancing its contribution to the GDP and on economic diversification.”
He added, “We extend an open invitation to our partners to support this collaboration by encouraging private sector participation, enhancing advanced technology applications, providing smart financing solutions, and opening markets to encourage the growth of the industrial sector in these and other countries.”
He continued: “In line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and with the aim of accelerating the objectives of this partnership between the three nations, a US$10 billion investment fund has been allocated to accelerate the partnership objectives and will be managed by ADQ Holding.”
H.E Dr Al Jaber added: “This partnership will contribute to strengthening relations and cooperation with our brothers in Jordan and Egypt, and are in line with the goals of the Principles of the Fifty that were announced by the UAE with the aim of building a better future. Developing distinguished economic partnerships is one of the most important priorities of the UAE leadership and government. The partnership will help diversify our economies and promote growth by increasing the in-country value of industrial products, especially in priority industries such as petrochemicals, pharmaceuticals, agriculture, food, and others. Through collaboration across expertise and resources, we will be able to add industrial value and reduce production costs, create more jobs, and achieve positive results for all parties.”
He concluded: “This partnership reflects our efforts to build constructive development partnerships that enhance our national economies, promote sustainable economic growth, support the knowledge sharing, deepen integration of the unique advantages of each participating country, boost self-sufficiency, enhance food and health security, integrate value chains, and develop more joint industrial ventures.”
During his remarks, His Excellency Mohamed Hassan Al-Suwaidi, Managing Director and CEO of ADQ, said: “In line with the directives of His Highness Sheikh Mohamed bin Zayed, President of the United Arab Emirates, the US10billion investment fund allocated and managed by the Abu Dhabi Holding Company will catalyze the projects identified in this partnership across the agreed sectors and will strengthen the economic infrastructure in the 3 countries.
He added: “The allocation of this fund confirms ADQ’s commitment to industrial investment, directly or through its portfolio of companies, to enhance and enable the partnership and achieve sustainable economic benefits for the three participating nations and their people and is aligned with our objective of solidifying the UAE and Abu Dhabi’s position as a leading global investment and partnership destination across various critical sectors; and particularly in the industrial sector.”
His Excellency Al-Suwaidi continued: “ADQ is committed to driving further investments and infrastructure, specifically in the industrial sectors agreed to in this partnership, which are of vital importance and will enhance the industrial GDP contribution for all three countries and result in significant positive impact on their efforts of economic diversification and development as well as job creation in the years to come.”
Industry is the backbone of economy
The partnership is based on enhancing investment opportunities in each country’s industrial sector, developing the three nations’ human and natural capital, and exploring a collective consumer market that offers opportunities for both the local private sector and international investors. The partnership includes launching joint industrial projects between the countries to promote economic growth and industrial integration, achieve self-sufficiency, and integrate value chains across the UAE, Egypt and Jordan.
Regional and Global Industrial Partnerships
The Integrated Industrial Partnership For Sustainable Economic Growth reflects the UAE’s commitment to creating key partnerships at the regional and global levels, especially in the industrial sector. This is in line with its vision to enhance the industrial sector’s role in the national economy, integrate advanced technology, and utilize the competitive advantages and capabilities of each country. This makes the UAE a leading global destination for the industries of the future and a hub that attracts the most prominent industries. The UAE is a launching pad for industrial investors targeting global markets due to its advanced logistical services and infrastructure, modern transportation networks, and the availability of raw materials. Taken together, these ensure supply-chain flexibility in, increase sustainable economic growth, and enhance value-added industries.
The partnership also embodies the close relations between the three countries, their common vision and mutual trust. This partnership provides a platform for cooperation in the future, and is based on the importance of integration and openness, and the shared commitment to developing the industrial sector, exchanging economic benefits, and utilizing human resources and experiences through the establishment of major joint industrial projects in more than one country.
Agriculture, Food and Fertilizers
Food security is a key objective of this partnership. The participating countries possess all the key elements across the food value chain to scale up investment in fertilizers, cereal, animal protein, and food production capacity. The UAE, Egypt and Jordan have the required combination of renewables and mineral resources to produce the basic materials to ensure sustainable development. Egypt, for instance, enjoys a global leading position as a producer and processor of food and agricultural processes that can meet the growing needs of the populations. The Jordan Valley is blessed with diversity of agricultural areas, bio-climatic and environmental conditions, and a variety of agricultural products with high technical specifications, thanks to the application of modern production technology. The innovative technologies, fertilizer components and basic plastic products available in the UAE will be harnessed in agriculture and irrigation, with recent cross-border transactions reflecting these sectors’ growing strength and influence.
The value of the agricultural and food products market in the three countries was estimated at US$52 billion in 2019, with an annual growth rate of 11 percent. The value of imports such as wheat, fodder, fruits, vegetables, meat and fish reached US$37 billion in 2019.
There are opportunities for promising projects to increase fertilizer production and agriculture, especially wheat and corn, and feed production to meet the growth needs in the dairy, meat, poultry, food processing and food packaging sectors. The value of wheat and corn imports for the three countries reaches US$5.8 billion annually (21 million tons), which represents a great opportunity to increase production. Wheat and maize increased from 16.5 million tons to about 30 million tons annually to meet demand, and the value of meat and fish imports amounted to US$4.9 billion (1.8 million tons).
The three countries also have a high potential in fertilizer production, estimated at 7.6 million tons annually, which offers an important platform for expansion projects in fertilizer production to meet the increasing demand.