UAE, Egypt, Jordan, Bahrain Sign $2 Bn Industrial Agreements

Jordan's Prime Minister Bishr al-Khasawneh, surrounded by ministers of Egypt, UAE, Jordan, and Bahrain at the signing ceremony in Amman (Asharq Al-Awsat)
Jordan's Prime Minister Bishr al-Khasawneh, surrounded by ministers of Egypt, UAE, Jordan, and Bahrain at the signing ceremony in Amman (Asharq Al-Awsat)
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UAE, Egypt, Jordan, Bahrain Sign $2 Bn Industrial Agreements

Jordan's Prime Minister Bishr al-Khasawneh, surrounded by ministers of Egypt, UAE, Jordan, and Bahrain at the signing ceremony in Amman (Asharq Al-Awsat)
Jordan's Prime Minister Bishr al-Khasawneh, surrounded by ministers of Egypt, UAE, Jordan, and Bahrain at the signing ceremony in Amman (Asharq Al-Awsat)

Egypt, the UAE, Jordan, and Bahrain signed 12 agreements and partnerships in nine integrated industrial projects with an investment value of more than $2 billion at the third Higher Committee meeting of the Industrial Partnership for Sustainable Economic Growth in Amman, Jordan.

The projects are expected to boost the national GDP in the partnering countries by more than $1.6 billion and create approximately 13,000 job opportunities.

Jordan's Prime Minister Bishr al-Khasawneh, Egypt's Minister of Industry and Trade, Ahmed Samir, UAE Minister of Industry and special envoy for climate change Sultan bin Ahmed Al Jaber, Jordan's Minister of Industry Yousef al-Shamali, and Bahrain's Minister of Industry Abdulla Adel Fakharo attended the signing ceremony.

Diverse agreements

The Egyptian company Soda Chemical Industries announced an investment of $500 million to produce sodium carbonate, 'soda ash,' the primary raw material in many industries, such as the glass and detergent sector.

The facility will have a production capacity of 500,000 tons annually.

A Memorandum of Understanding (MoU) was signed for a strategic partnership with the Emirates Float Glass Company, owned by Dubai Investments, to purchase the final product.

UAE-based automotive manufacturer M Glory Holding announced the launch of a large manufacturing project with an investment of $550 million to establish three electric vehicle factories with specialized production and assembly lines in the UAE, Jordan, and Egypt.

Production capacity will reach 40,000 compact crossover SUVs during the first three years of operation.

M Glory Holding signed another MoU with the Jordan Design and Development Bureau and Egypt's Arab Organization for Industrialization as manufacturing partners and with Bahrain's GARMCO to supply aluminum sheets.

The agreement exemplifies how the partnership aligns with sustainability objectives and the UAE's presidency of COP28.

Emirati investor-owned CFC Group announced it would invest $400 million to establish an industrial complex for fertilizers and chemicals in Egypt.

It signed MoUs with Jordan-based Arab Potash and Egypt's Misr Phosphate Company to supply raw materials.

The industrial complex will have an annual production capacity of half a ton of fodder, potash fertilizers, and 1.1 tons of chemicals.

Emirates Global Aluminum (EGA) announced a $200 million investment to establish a silicon metal plant in the UAE with a production capacity of 55,000 tons annually.

The company signed an MoU with Jordan's Manaseer Group to supply the required crystalline silica.

Manaseer Group announced the expansion of a $70 million magnesium oxide plant in Jordan. Once completed, the plant will have a total production capacity of 270,000 tons annually, which will be exported to the UAE.

It will sell its product to EGA., and production is set to commence in 2024.

UAE's Globalpharma partnered with Egypt's Nerhadou International to develop advanced technology for manufacturing medicines and food supplements.

An agreement was also signed to transfer technology to two Jordanian companies: Savvy Pharma and Triumph. Both projects will commence in 2023 with a total investment value of $60 million and a production capacity of five million packages annually per product.

Jordanian company Itqan announced a technology transfer partnership and contract manufacturing agreement with Globalpharma and ADCAN Pharma to manufacture syringes, aerosols, and inhalers.

It also signed an MoU with Egypt's Marcyrl to transfer technology in manufacturing biosimilars in Jordan with an investment value of $10 million to launch products by Q4 2024.

Bahrain-based Alpha Biotic signed two MoUs for knowledge and technology transfer and contracted manufacturing with Jordan's Dar Al Dawa and Egypt's EIPICO to produce generic, oncology, medical solutions, and other pharmaceutical products.

At an investment value of $174 million over two phases, the project's production capacity is expected to reach 350 million pills annually.

Gulf Biotech, another Bahraini company, announced plans to establish a plant to manufacture raw materials for vaccines and other products at an investment value of $103 million and a production capacity of 105 doses per year.

Gulf Biotech signed a technology transfer agreement with Egypt's BioGeneric Pharma earlier this month.

Developments in the industrial partnership

During the meetings, the Undersecretary of the UAE Ministry of Industry and Advanced Technology Head of the Partnership's Executive Committee, Omar al-Suwaidi, presented an update on the partnership's progress, the findings of the partnership's workshops, investment opportunities, and plans for developing the partnership.

Suwaidi noted that more than 100 companies have participated in the metals, textiles, and petrochemical workshops held over the past six months.

The partnership has also received 35 proposals for new projects, discussed during workshops held by the Executive Committee in Amman.

The workshops also helped to prepare an implementation plan for enablers in the agriculture, food, fertilizers, and pharmaceutical sectors.

The official announced that the UAE and Jordan made a pharmaceutical mutual recognition agreement.

The committee studies the feasibility and economic impact of projects in various sectors and partnership opportunities with the private sector.

The committee will continue to search for new projects and evaluate and enable projects, including a fertilizer factory in Jordan at an estimated cost of $800 million.

The Executive Committee of the Integrated Industrial Partnership for Sustainable Economic Growth submitted recommendations and a report to the Higher Committee for approval.

It also discussed several potential projects and listened to representatives of industrial companies who presented project proposals.

Egypt's President of the Industrial Development Authority, Mohamed Abdel Kareem, briefed the committee on agricultural, fertilizer, and food developments.

Jordan's Secretary General of the Ministry of Industry, Trade, and Supply, Dana al-Zoubi, gave a presentation on developments in the pharmaceutical sector in her country.

Bahrain's Undersecretary of the Ministry of Industry, Iman al-Dosari, also briefly discussed the developments in minerals, petrochemicals, and textiles.



Oil Up, Heads for 4th Weekly gain as US Sanctions Hit Supply

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
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Oil Up, Heads for 4th Weekly gain as US Sanctions Hit Supply

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo

Oil prices rose on Friday and headed towards a fourth consecutive weekly gain as the latest US sanctions on Russian energy trade hit supply and pushed up spot trade prices and shipping rates.
Brent crude futures rose 44 cents, or 0.5%, to $81.73 per barrel by 0443 GMT, US West Texas Intermediate crude futures were up 62 cents, or 0.8%, to $79.3 a barrel.
Brent and WTI have gained 2.5% and 3.6% so far this week.
"Supply concerns from US sanctions on Russian oil producers and tankers, combined with expectations of a demand recovery driven by potential US interest rate cuts, are bolstering the crude market," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
"The anticipated increase in kerosene demand due to cold weather in the US is another supportive factor," he added.
The Biden administration last Friday announced widening sanctions targeting Russian oil producers and tankers, followed by more measures against Russia's military-industrial base and sanctions-evasion efforts.
Moscow's top customers China and India are now scouring the globe for replacement barrels, driving a surge in shipping rates.
Investors are also anxiously waiting to see any possible more supply disruptions as Donald Trump takes office next Monday.
"Mounting supply risks continue to provide broad support to oil prices," ING analysts wrote in a research note, adding the incoming Donald Trump administration is expected to take a tough stance on Iran and Venezuela, the two main suppliers of crude oil.
Better demand expectations also lent some support to the oil market with renewed hopes of interest rate cuts by the US Federal Reserve after data showed easing inflation in the world's biggest economy.
Inflation is likely to continue to ease and possibly allow the US central bank to cut interest rates sooner and faster than expected, Federal Reserve Governor Christopher Waller said on Thursday.
Meanwhile, China's economic data on Friday showed higher-than-expected economic growth for the fourth quarter and for the full year 2024, as a flurry of stimulus measures came into effect.
However, China's oil refinery throughput in 2024 fell for the first time in more than two decades barring the pandemic-hit year of 2022, government data showed on Friday, as plants pruned output in response to stagnant fuel demand and depressed margins.
Also weighing on the market was that Yemen's maritime security officials said the Houthi militia is expected to announce a halt in its attacks on ships in the Red Sea, after a ceasefire deal in the war in Gaza between Israel and the Palestinian group Hamas.
The attacks have disrupted global shipping, forcing firms to make longer and more expensive journeys around southern Africa for more than a year.