It is always a candidate for growth and holds promising prospects in various fields

Emirati-Egyptian economic relations: history, present and future

The Egyptian-Emirati economic relations have been characterized by strength and durability since the first day of the establishment of the Federation of the Emirates, and these relations are always candidates for growth, and bear promising prospects in various fields, as these strong relations were based on several axes, foremost of which is the vision of the founding father, the late Sheikh Zayed bin Sultan Al Nahyan, may he rest in peace, who finds in Egypt a pillar of political and security stability in the Middle East, and the beating heart of the Arab nation, while the Arab Republic of Egypt considers the UAE the first supporter and historical support for Egypt and the Arab nation in general in various forums.

Throughout the ages, the Egyptian belief has been steadfast towards the United Arab Emirates, in that it is a symbol of brotherhood and tolerance among Arab brothers, and an “integral part” of the security, stability and peace of the region.

Based on this vision, the relations between the UAE and Egypt were based on the idea and philosophy of support and support at all times, regardless of circumstances and events.

This reflected positively on the deep economic ties between the two countries.

From an economic and investment perspective, an observer of the dimensions of economic relations between the two countries will find that the UAE sees Egypt as the largest market in the Middle East, and a fertile ground for establishing quality investment projects in various sectors.

On the other hand, since the discovery of oil in the UAE, and the start of the renaissance and construction movement in it, the Union State has become the first destination for Egyptian labor, and today it has become the second homeland and closest to the hearts of millions of Egyptians.

The UAE and Egypt link a comprehensive strategic partnership, and on the economic level, the UAE contributes to activating foreign direct investments in Egypt, creating new stimulating sources for the Egyptian economy, creating new jobs, and employing a greater number of workers, in a way that represents an important share of the sources of remittances that constitute a pillar important of the foreign currency balance of the Egyptian economy.

Proceeding from the foregoing, it can be said that the relations between the two countries mixed politics and the economy, and the permanent political support between them was reflected in most of the economic partnerships.

The relationship between the late Sheikh Zayed bin Sultan Al Nahyan, may he rest in peace, and Egypt began since the era of the late Egyptian President Gamal Abdel Nasser.

Egypt also took the initiative to send missions that included teachers, engineers and doctors to the Emirates before the emergence of oil in the mid-fifties, and received those wishing to learn and transfer knowledge and expertise to their country.

The late Sheikh Zayed bin Sultan Al Nahyan contributed to the reconstruction of the cities of the Suez Canal, which were destroyed by wars.

During the era of the late Egyptian President Mohamed Anwar El-Sadat, Egypt’s relationship with the UAE maintained its distinction, due to the many positions of the late Sheikh Zayed bin Sultan Al Nahyan, may God rest his soul, in support of Egypt, including declaring his support for Egypt in its war to restore its occupied lands in October 1973.

And the late Sheikh Zayed bin Sultan Al Nahyan, may his soul rest in peace, honored the late Egyptian President Muhammad Anwar Sadat, by giving him the "Al Nahyan scarf", during his visit to Cairo, where Sadat always saw in the person of Sheikh Zayed the loyal ally, and the direct link between Arab leaders.

The position of the late Sheikh Zayed bin Sultan Al Nahyan remained steadfast in his support for Egypt in all situations, and he said his famous sentence: "The Arab nation cannot exist without Egypt, just as Egypt cannot in any way dispense with the Arab nation."

During the era of former President Mohamed Hosni Mubarak, the two countries had mutual trade and investment relations, as 18 agreements regulating economic and trade relations were linked between them, and the volume of trade exchange increased continuously.

Non-oil foreign trade between the UAE and Egypt during the period from January to May 2022 reached more than 14.1 billion dirhams (more than 3.8 billion dollars), with a growth rate of 6%, compared to the same period in 2021. In 2021, trade reached The non-oil foreign affairs between Egypt and the UAE amounted to nearly 27.8 billion dirhams (more than 7.5 billion dollars), with a growth rate of 7.6% compared to 2020.

May 2022 also witnessed the announcement of the integrated industrial partnership for sustainable economic development that brings together the two countries, in addition to the Hashemite Kingdom of Jordan, in order to achieve sustainable economic development in five promising industrial fields that are qualified for integration and cooperation, and the allocation of an investment fund worth $10 billion, to invest in the projects emanating from it. .

The UAE ranked first among the countries in the world investing in Egypt, and the value of Emirati investments in Egypt rose to $1.9 billion during the 2019-2020 fiscal year, compared to $712.6 million during the 2018-2019 fiscal year, an increase of 169.1%.

While the value of investments issued by the UAE to Egypt during the period from 2013 to 2021 is estimated at about 16 billion US dollars (59 billion dirhams).

In 2019, a joint strategic investment platform was launched between the UAE and Egypt, with a value of $20 billion to implement vital projects in economic and social fields, while the UAE support to Egypt during 2013 and 2014 amounted to more than 51 billion dirhams (equivalent to $13.9 billion), which included vital areas. 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 $4.9 billion to implement a range of development projects in Egypt.

In 2015, the UAE announced a support package worth 14.7 billion dirhams (more than four billion dollars) for the brotherly Egyptian people, consisting of two tranches of equal value, one of which is a deposit in the Central Bank of Egypt, and the second is for the benefit of various projects in several sectors.

■ Throughout the ages, the Egyptian belief has been firm towards the United Arab Emirates, in that it is a symbol of brotherhood and tolerance among Arab brothers.

■ In 2019, a joint strategic investment platform was launched between the UAE and Egypt, worth $20 billion, to implement vital projects.

UAE-Egypt economic relations in numbers

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

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

More than 1,300 Emirati companies operate in Egypt in projects and investments that include various sectors of wholesale and retail, transportation, warehousing and logistics, the financial sector and insurance activities, information and communication technology, real estate and construction, tourism, agriculture and food security.

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

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