The fund will be run by Abu Dhabi Development Holding (ADQ) to support and accelerate the projects arising from the initiative, according to Emirati Minister of Industry and Advanced Technology Sultan Ahmed Al-Jaber, who made the announcement during the launch of the tripartite partnership.
Earlier on Sunday, Egypt, the UAE, and Jordan launched a joint initiative of integrated industrial partnership for sustainable economic development in the Emirati capital of Abu Dhabi.
The initiative focuses on several strategic sectors, most importantly pharmaceuticals, agriculture, food, petrochemicals, metals, minerals, and textiles with the aim of achieving economic sustainable development and contribute to supporting industrial integration between the three Arab nations.
The partnership aims to achieve self-sufficiency in the three countries and ensure food and health security, he noted, expecting that it will provide industrial opportunities with added economic value estimated at billions of dollars in the near future.
The combined GDP of Egypt, the UAE, and Jordan is approximately $800 billion, the minister said, adding that the three countries are rich in different resources that can be promoted through this new partnership.
Furthermore, he indicated that the three countries enjoy a wealth of human resources amounting to 60 million youths; the world-class advanced infrastructure of the Suez Canal in Egypt, through which about 13 percent of the world’s trade passes; and a number of the largest commercial ports, such as Jebel Ali Port, Khalifa Port, and Aqaba Port.
They also possess key resources of oil, gas, renewable energies, and minerals such as gold in Egypt and phosphates in Jordan, in addition to ultra-modern capabilities in the food, pharmaceutical, fertiliser, and textile industries.
It is also worth noting that Al-Jaber indicated that this partnership opens the door to increasing the production of wheat and corn in the three countries to about 30 million tonnes annually, up from the current 16.5 million tonnes.
Additionally, he explained that the minerals within the trinity — notably aluminium, iron, silica, and potash — can be utilised in projects worth $23 billion to manufacture high-value products such as glass, electrical wires, car components, and solar panels.
As for the petrochemical industry, he said that the sector’s contribution to the aforementioned combined GDP added up to about $16 billion in 2019, suggesting that new opportunities brought about by this partnership can foster growth in this sector and other related industries to over $21 billion.
The launch of this tripartite agreement was attended by Egyptian Prime Minister Mostafa Madbouly, Deputy Prime Minister of the United Arab Emirates Mansour bin Zayed Al-Nahyan, Jordanian Prime Minister Bisher Khasawneh, in addition to number of senior officials from the three countries.
Ahead of the launch event, a document outlining the sectors of cooperation between the three nations was inked by Egyptian Minister of Trade and Industry Nevine Gamea, Jordanian Minister of Industry Trade and Supply Yousef Al-Shamali, and Al-Jaber.
For his part, PM Madbouly thanked the UAE’s president for his decision to establish the ADQ’s $10-billion-fund to implement the initiative’s projects.
He also called for expediting the implementation of the initiative’s projects according to the specified due dates, according to a statement by the Egyptian Cabinet that was issued following the event.
Such a step, Madbouly noted, will promote integration and interdependence among Arab countries, representing an “inspiring” example for how to optimally allocate resources to create opportunities amid the current unfavourable economic and geopolitical conditions.
He added that this measure seeks to achieve economic integration between Arab countries, which was a goal that the founding fathers of the League of Arab States have aspired to since the 1940s.
In terms of the partnership’s goals, it seeks to develop internationally competitive industries to lure investments and achieve flexibility, self-sufficiency, and economic diversification in the three countries.
It also focuses on securing flexible supply chains to improve economic security and spare the three countries the price fluctuations, a separate statement by an Egyptian cabinet said.
Furthermore, it seeks to achieve sustainable growth by capitalising on renewable and low-carbon energy sources, using natural resources more efficiently — including water and raw materials — and creating a circular economy to recycle waste.
Additionally, it aims to promote growth and integration of value chains and trade among Egypt, UAE, and Jordan in a way that is flexible, self-sufficient, and develops local and external trade, added the statement.
A high tripartite committee co-headed by the signatories of the initiative’s document will be established to follow up on the progress of the partnerships and help achieve the agreed-upon goals.