UAE, Egypt, Jordan Sign Industrial Partnership in 5 Sectors for Sustainable Economic Growth

Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
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UAE, Egypt, Jordan Sign Industrial Partnership in 5 Sectors for Sustainable Economic Growth

Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)

The United Arab Emirates, Egypt and Jordan announced on Sunday an integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi.

The partnership agreement aims to unlock new industrial opportunities and enhance sustainable economic growth in the three countries, across five promising industrial sectors, namely food and agriculture, fertilizers, pharmaceuticals, textiles, minerals, and petrochemicals.

In order to accelerate the partnership objectives, a $10 billion investment fund has been allocated and will be managed by Abu Dhabi state holding firm ADQ.

The UAE Minister of Industry and Advanced Technology, Dr. Sultan bin Ahmed Al Jaber, Egyptian Minister of Industry and Trade Dr. Nevein Gamea, and Jordan’s Minister of Industry, Trade and Supply Yousef al-Shamali signed the partnership agreement.

Egyptian and Jordanian Prime Ministers Mostafa Madbouly and Dr. Bisher al- Khasawneh attended the signing event, along with UAE’s Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed Al Nahyan.

Sheikh Mansour said the partnership reflects President Sheikh Mohamed bin Zayed Al Nahyan’s vision to enhance industrial integration with Arab and world countries for the UAE to be able to achieve a major leap in the industrial sector to become an economic driver.

“Industry is the backbone of the world’s largest economies. Through its capabilities, effective policies and current focus on developing advanced technology and logistics infrastructure, we are confident that the UAE can build a global economic powerhouse by leveraging industrial partnerships across the region.”

He pointed out that advancing the industrial sector in the three countries will help boost and diversify their economy and increase the industry’s contribution to the national GDP.

This partnership further affirms the three countries’ ability to bolster their ties and introduce new projects and industries within an integrated industrial ecosystem, while unlocking promising opportunities for future generations.

According to the information obtained, Abu Dhabi, Cairo and Amman have diverse resources and unique competitive advantages, including access to raw materials.

They enjoy robust capabilities in the pharmaceutical industries, with clear ambition to develop and expand them further and increase their production capacity.

They also wish to strengthen manufacturing capabilities in the steel, aluminum, petrochemicals and derivatives sectors.

Their combined industrial capacity represents around 26% of the total industrial capacity of the MENA region.

They also enjoy a highly developed logistical infrastructure, including airports, ports and strategic transport corridors such as the Suez Canal, major companies with distinct capabilities in the partnership’s focus areas, as well as access to capital and smart financing solutions.

Almost half the total population of the partner countries comprising 122 million people are young and represent both a large market and an emerging workforce.

Khasawneh said that the partnership is an evidence of the depth of the historic ties among the three countries, noting that it enhances integration, protects supply chains, empowers import substitution, and promotes sustainable economic development, resulting in economic growth, job creation and other benefits.

“The continued active interaction and coordination at the leadership level affirms the strong political and economic ties.”

He revealed that the industrial sector in Jordan contributes to 24% of the GDP and accounts for 21% of the country’s workforce.

Jordan exports to many countries around the world and is empowered by supportive laws and regulations.

Madbouly, for his part, said the pandemic and the Russian-Ukrainian crises underlined the importance of this integration to achieve the interests of the three countries’ peoples, adding that it could become the cornerstone for a stronger and broader cooperation among Arabs.

He stressed that the current regional and international conditions make it imperative for Arab countries to maximize opportunities for integration, especially since each country has its unique competitive advantage and capabilities.

The projects that have been agreed upon will create an added value for the three countries and will have a positive impact on national security, local industry, and supply chain activities, the PM noted.



World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
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World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP
WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP

The World Bank on Thursday warned that US across-the-board tariffs of 10% could reduce already lackluster global economic growth of 2.7% in 2025 by 0.3 percentage point if America's trading partners retaliate with tariffs of their own.
Such tariffs, promised by US President-elect Donald Trump, could cut US growth - forecast to reach 2.3% in 2025 - by 0.9% if retaliatory measures are imposed, the bank said, citing economic simulations. But it noted that US growth could also increase by 0.4 percentage point in 2026 if US tax cuts were extended, it said, with only small global spillovers.
Trump, who takes office Monday, has proposed a 10% tariff on global imports, a 25% punitive duty on imports from Canada and Mexico until they clamp down on drugs and migrants crossing borders into the US, and a 60% tariff on Chinese goods.
The World Bank's latest Global Economic Prospect report, issued twice yearly, forecast flat global economic growth of 2.7% in 2025 and 2026, the same as in 2024, and warned that developing economies now faced their weakest long-term growth outlook since 2000, Reuters said.
The multilateral development bank said foreign direct investment into developing economies was now about half the level seen in the early 2000s and global trade restrictions were five times higher than the 2010-2019 average.
It said growth in developing countries is expected to reach 4% in 2025 and 2026, well below pre-pandemic estimates due to high debt burdens, weak investment and sluggish productivity growth, along with rising costs of climate change.
Overall output in emerging markets and development economies was expected to remain more than 5% below its pre-pandemic trend by 2026, due to the pandemic and subsequent shocks, it said.
"The next 25 years will be a tougher slog for developing economies than the last 25," World Bank chief economist Indermit Gil said in a statement, urging countries to adopt domestic reforms to encourage investment and deepen trade relations.
Economic growth in developing countries dropped from nearly 6% in the 2000s to 5.1% in the 2010s and was averaging about 3.5% in the 2020s, the bank said.
It said the gap between rich and poor countries was also widening, with average per capita growth rates in developing countries, excluding China and India, averaging half a percentage point below those in wealth economies since 2014.
The somber outlook echoed comments made last week by the managing director of the International Monetary Fund, Kristalina Georgieva, ahead of the global lender's own new forecast, to be released on Friday.
"Over the next two years, developing economies could face serious headwinds," the World Bank report said.
"High global policy uncertainty could undercut investor confidence and constrain financing flows. Rising trade tensions could reduce global growth. Persistent inflation could delay expected cuts in interest rates."
The World Bank said it saw more downside risks for the global economy, citing a surge in trade-distorting measures implemented mainly by advanced economies and uncertainty about future policies that was dampening investment and growth.
Global trade in goods and services, which expanded by 2.7% in 2024, is expected to reach an average of about 3.1% in 2025-2026, but to remain below pre-pandemic averages.