The second Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development kicked off in Cairo on Monday.
The committee, which includes Egypt the United Arab Emirates and Jordan, announced and welcomed Bahrain as a new member, represented by Minister of Industry and Commerce Zayed bin Rashid al-Zayani.
Egyptian Minister of Commerce and Industry Nevine Gamea, UAE Minister of Industry and Advanced Technology Sultan bin Ahmed al-Jaber and Jordan's Minister of Industry, Trade and Supply Yousef al-Shamali co-chaired the meeting.
The committee shortlisted 12 projects worth $3.4 billion to move into feasibility studies.
The event was a continuation of the executive committee meetings held over the past two days and a culmination of weeks’ long sectoral workshops of experts in the fields of pharmaceuticals, agriculture, fertilizers and food.
The Executive Committee received 87 industrial project proposals focused on fertilizers, agriculture and food.
In the next phase, the Partnership will focus on the metals, chemicals, plastics, textiles and clothing sectors.
The Committee held its first meeting in early June and discussed mechanisms for expanding the partnership by welcoming new members.
It tackled accelerating the pace of economically feasible opportunities under the umbrella of the industrial sector in the participating countries.
The meeting also focused on the importance of the private sector’s participation and its key role in activating this industrial partnership that focuses on five sectors: agriculture and food, fertilizers, pharmaceuticals, textiles, minerals, and petrochemicals.
Gamea underscored the importance of the industrial partnership in addressing the economic consequences of global crises and highlighted the importance of the private sector’s engagement in sustainable development for the Arab World.
“This partnership is key to ensuring value and supply chains, reaching industrial self-sufficiency, and creating more jobs,” said Gamea, who welcomed Bahrain to join this partnership, “which will help maximize the benefit of the industrial capabilities of the four countries.”
“To make use of this initiative, partners will exchange science and technology expertise, set up industrial partnerships, and take advantage of the partners’ markets to promote multilateral trade.”
She stressed that her country is keen to do what it takes to support this partnership and pave its way to achieve its targets.
Jaber, for his part, said the UAE underscored its commitment to the partnership by allocating 10 billion investment in the projects it will yield and is managed by ADQ Holding.
“We welcome Bahrain as a vital and dynamic addition to the partnership,” he said, noting that the kingdom’s industrial sector plays a crucial role in sustainable economic development.
He called on companies to leverage the competitive advantages and opportunities for partnership available in each of the participating nations and to conduct their own feasibility studies to maximize their projects’ chances of success.
“As government agencies, we must identify the key enablers these projects require to succeed and do everything in our power to help companies overcome potential obstacles,” he remarked.
This combination of government support with private sector commitment will help the partnership achieve maximum sustainable economic and social benefits, Jaber added.
Shamali said Jordan is keen to support all aspects of joint Arab work, adding that the meeting shows how the leaders of the three countries share a common vision about joining efforts to create a comprehensive economic project.
“The meeting highlighted the political and economic ties binding our nations, and ushers in a new era of joint action and effective economic integration with tangible impacts,” the minister stated.
For his part, Zayani said Bahrain has achieved continuous success and growth in the industrial sector over the past decades.
This is a result of the policies adopted by the government since the 1960s that sought to reduce reliance on oil and natural gas, and diversify the industrial sector by setting up factories in the fields, such as aluminum.
It also established new industrial zones and attracted foreign investments by encouraging industrial projects and providing the necessary infrastructure.
In order to advance the industrial sector, Bahrain’s government launched the Industrial Sector Strategy (2022-2026) on December 30 as a pivotal part of the post-pandemic economic recovery plan.
The strategy, according to Zayani, aims to increase the industrial sector's contribution to GDP, increase exports, and provide jobs for citizens.
It is based on adopting the Fourth Industrial Revolution, implementing the concept of a circular carbon economy along with effective environmental and social governance policies, encouraging investment in technological infrastructure and manufacturing automation, and increasing the efficiency of supply chains to build a developed and sustainable industry.
In 2019, UAE, Egypt, Jordan, and Bahrain accounted for 30% of the Middle East and North Africa’s industrial contribution to GDP, totaling $65 billion worth of industrial exports.
The countries’ combined population is 122 million, representing 27% of the MENA region and 49% of the region’s youth population under 24.
The value of foreign direct investment in the UAE, Egypt and Jordan reached $151 billion between 2016-2020, comprising 42% of new foreign direct investment in the Middle East.
The total value of the countries’ exports stood at $433 billion in 2019, while imports amounted to approximately $399 billion.
Adding Bahrain, which has a GDP of $39 billion, will greatly enhance the Partnership and contribute significantly to its results.
The Partnership is expected to increase the GDP of member countries by $809 billion by unlocking billions worth of opportunities across sectors, including $1.7 billion in the food and agricultural sector, $4 billion in the minerals sector, $1.7 billion in chemicals and plastics, and $0.5 billion in medical products.
