UAE-Jordan trade deal targets non-oil growth

Wam

The UAE’s comprehensive economic partnership agreement (Cepa) with Jordan, its first with an Arab nation, is poised to strengthen economic ties and drive non-oil trade, which reached $4.2 billion in 2023.

The agreement intends to foster investment, accelerate growth in key industries and bolster supply chains, the UAE state-run Wam news agency reported.

The Cepa was signed on Sunday in the presence of the UAE president Sheikh Mohamed bin Zayed Al Nahyan and Jordan’s King Abdullah II.

Several UAE ministers have hailed the agreement, which will support collaboration in the industrial, energy, agriculture and food security sectors.

Minister of energy and infrastructure Suhail bin Mohammed Al Mazrouei said the Cepa aligns with Jordan’s energy strategy for 2020-2030, mainly supporting renewable energy development.

Nearly 29 percent of Jordan’s electricity comes from solar and wind power, he added.

Dr Sultan bin Ahmed Al Jaber, minister of industry and advanced technology, said this partnership offers new investment opportunities and developmental enablers in diverse industrial sectors, including textiles, metals, pharmaceuticals and petrochemicals.

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Abdulla bin Touq Al Marri, minister of economy, said the partnership will solidify the UAE’s position as a global economic hub.

Jordan is a significant economic and trade partner and its real GDP is projected to reach $54 billion in 2024, growing by 3 percent annually over the next five years, he said.

There are numerous opportunities in the new economy, tourism, renewable energy, financial services and agriculture, the minister added.

Mohamed Hassan Alsuwaidi, minister of investment, said that Jordan stands out as a promising partner in areas such as energy, manufacturing, tourism, healthcare and real estate, with bilateral investments exceeding $22.5 billion.

Dr Amna bint Abdullah Al Dahak Al Shamsi, minister of climate change and the environment, said the Cepa opens doors for strategic investments and joint projects in sustainable agriculture, enhanced food production, improved land use and optimised resource consumption.

Dr Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade, said Jordan remains a key trade partner for the UAE, adding that non-oil trade between the two countries exceeded $4 billion last year, rising 46 percent compared with pre-pandemic levels in 2019.

Ahmed Abdullah bin Lahej Al Falasi, director-general of customs at the Federal Authority for Identity, Citizenship, Customs and Port Security, said the Cepa will facilitate increased bilateral trade flows by reducing tariffs, removing trade barriers, and aligning customs procedures, including re-exports.

Jordan is the UAE’s third-largest Arab trade partner outside of the GCC.