Ethiopia and UAE trade increases by 180% as UAE President visits Addis Ababa to discuss deepening ties.
As Ethiopia and UAE strengthen their economic alliance, trade between the two states has surged by an impressive 180%, leading to a remarkable influx of investments amounting to USD 2.9 billion. The recent visit of UAE President Sheikh Mohamed to Ethiopia signifies a pivotal juncture in their partnership, with both nations poised to reap the rewards of this flourishing collaboration.
UAE President’s visit amplifies bilateral ties
The recent visit of Sheikh Mohamed to Ethiopia and his meetings with Dr. Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, marks a diplomatic milestone, underscoring the commitment of both nations to elevate their partnership to new heights. The UAE’s pledge to invest USD 2.9 billion in Ethiopia’s economy is a testament to this commitment.
Ethiopia and UAE witness 180% surge in bilateral trade
Ethiopia and the UAE have witnessed a remarkable surge in their bilateral trade, with figures soaring by an astounding 180%. This unprecedented growth underscores the synergistic nature of their economic engagement, with both nations capitalizing on each other’s strengths to foster mutually beneficial trade relations.
In 2022 alone, the two countries recorded AED5.113bn in non-oil trade, more than double the figure from ten years previously. The UAE exported non-oil products worth AED773m to Ethiopia, with re-exports reaching AED2.033bn, and imports totaling AED2.307bn.
Ethiopia’s top imports from the UAE were:
- Mineral oils with a total value of AED183m
- Raw gold at AED58m
- Pulses at AED48m
- Pre-fabricated buildings at AED38m
- Iron and steel structures and parts at AED28m
The UAE re-exported certain goods to Ethiopia, such as automobiles (AED334m), jewelry and ornaments (AED225m), medical vaccines (AED199m), self-processing information and communication machinery (AED159m), and communication devices and equipment (AED125m).
The UAE’s top three imports from Ethiopia in the previous year were raw gold, meat and coffee.
The UAE’s substantial investment commitment of USD 2.9 billion in Ethiopia reflects its faith in the nation’s economic trajectory. This infusion of capital is set to propel Ethiopia’s growth, unlocking new avenues of development and fortifying bilateral ties.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that Ethiopia and the UAE have strong trade and investment relations and noted that the UAE has invested USD 2.9 billion in Ethiopia.
These investments cover four main sectors:
- Food and beverages
Al Zeyoudi said the UAE also invests in other sectors with potential, such as ports, logistics services, storage, warehouses and real estate. The UAE can help Ethiopian exports reach new markets through its global network of trade partners, while Ethiopia can act as a key entry point for Emirati exports and re-exports to East Africa and other African countries, he added.
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