UAE-Ethiopia trade exchange exceeds $6 billion, says envoy

Mohammed Salem Al Rashidi, UAE Ambassador to the Federal Democratic Republic of Ethiopia, affirmed that the historical relations between the UAE and Ethiopia have witnessed remarkable progress over the past few years. This reflects the distinguished friendship between the leaderships of the two countries, and the exchange of visits and meetings between President His Highness Sheikh Mohamed Bin Zayed Al Nahyan and Dr Abi Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, and the expansion of cooperation in various fields and at various levels, which have enhanced relations and progress between the two nations.

Al Rashidi said in a statement to the Emirates News Agency (WAM), “The UAE is one of the key trading partners of Ethiopia, and trade exchange has witnessed steady growth in the past few years, as the Ethiopian Ministry of Trade estimates indicate that the volume of trade exchange between the two countries amounted to $6 billion,” stressing that the number of UAE investment projects in Ethiopia is estimated at more than 113.

He added, “The UAE and Ethiopia are cooperating in the field of renewable energy, which is an area of common interest for the two countries, especially since the UAE is a major international leader in the field of clean energy. The Ethiopian government seeks to implement its strategy to develop its renewable energy sector and the Abu Dhabi Future Energy Company, Masdar, signed a joint development agreement with the Ethiopian government in January 2023 in Abu Dhabi to develop two solar power plants with a combined generating capacity of 500 megawatts.

Masdar previously signed a similar agreement with the Ethiopian government in March 2021 in Addis Ababa to develop solar energy projects in multiple locations in Ethiopia, advancing their efforts to diversify energy sources and achieve economic growth.

Al Rashidi emphasised that Ethiopia is a key investment partner for the UAE in East Africa, as it has a large and emerging consumer market of more than 100 million people, and enjoys diverse resources and economic potential in several sectors such as health, clean energy, technology, communications and others. Ethiopia has also become an attractive destination for foreign investment, as UAE companies have undertaken 113 investment projects in the country, with growing interest on the part of UAE companies to invest in Ethiopia in sectors related to food security, agriculture, livestock and logistics.

He stressed that the UAE is also a strategic partner for Ethiopia in its efforts to achieve growth, as UAE relief and humanitarian organisations contribute to efforts in various sectors through the implementation of many humanitarian and development activities and programmes in Ethiopia.

Development cooperation is one of the main areas of cooperation between the two countries, the most important of which is in the health field and health capacity building, as well as in empowering women and youth through supporting and financing small and medium projects in Ethiopia, in addition to providing scholarships for Ethiopian students to study in UAE universities.

Emirati companies: Humaid Mohammed bin Salem, Secretary-General of the Federation of UAE Chambers of Commerce and Industry, affirmed that the public and private sectors in the UAE and Ethiopia have been keen during recent years to enhance economic cooperation, which has resulted in an increase in mutual investments and intra-trade values.

Salem said there are more than 121 Emirati companies operating in the Ethiopian market, contributing to enriching relations between the two countries in the economic aspect, including Julphar Gulf Pharmaceutical Industries Manufacturers, Jenaan Investment, Masdar, Emirates Steel Arkan, DP World, Al Ghandi Auto, Al Ghurair Group, Albwardy Investment, Lootah Group, Eagle Hills Properties, and other leading Emirati companies.

He explained that the UAE Chambers Of Commerce And Industry, especially the representative office of the Dubai Chambers, have contributed in recent years to building a strong network of relations between the public and private sectors to provide Emirati and Ethiopian companies with distinguished support in the field of events and business platforms, as well as holding bilateral business meetings, identifying sources of supply and distribution and trade missions, in addition to supporting the development and promotion of business in Ethiopia.

Secretary-General Salem stressed that increased coordination between the two sides gives Emirati companies a greater impetus to invest in various sectors in Ethiopia, emphasising the attractiveness of Ethiopia’s investment in many fields, especially agriculture, pharmaceutical and cosmetic industries, as well as renewable energy, transportation, logistics and real estate and wholesale trade, in addition to retail and rental of machinery and heavy equipment.