14 November 2018 05:01 AM

Economic Relations

Monday، 30 October 2017 - 12:00 AM

After June 30 Revolution, economic relations between Egypt and the UAE witnessed a significant development. United Arab Emirates has been at the head of the Arab states that supported the Egyptian revolution and offered a great support in order to revive the Egyptian economy. The UAE provided $ 3 billion-financial aid in the framework of a Gulf aid package to Egypt amounted to twelve billion dollars.

In October 2013, Egypt and the UAE have signed an agreement for supporting the Egyptian development program. Under the agreement, the UAE would extend a sum of $ 4.9 billion for carrying out projects for upgrading the services sector, enhancing the living standards and human resources in Egypt.

The UAE also supported the Egyptian economy after the decision of floating the pound as Dubai Port World, the largest port company in the world, started on February 1, 2016 to deal with dollar on land services provided to owners and recipients of goods instead of dealing with the Egyptian pound.

The United Arab Emirates has deposited a $ 1 billion in the  Central Bank of Egypt (CBE) for a period of six years to support the Egyptian exchange market.

On 21/4/2016, Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and UAE Deputy Supreme Commander provided $ 4 billion to support Egypt, two billions of which were directed to investment in a number of development areas in Egypt and two billions were deposited in the CBE to support the Egyptian cash reserve.

The UAE ranks first among international and Arab countries in terms of foreign direct investment in Egypt, reaching 6.2 billion dollars compared to 6 billion dollars in 2016.

According to the recent data from the CBE, the volume of trade exchange between Egypt and the UAE during the first nine months of the FY 2016/2017 increased by 300 million dollars to reach 4.6 billion dollars. The volume of Egyptian exports to the UAE increased by 14% during the period from June 2016 to March 2017 to reach about 2.3 billion dollars compared to about 1.8 billion dollars during the same period of last year.

According to the CBE, Egyptian imports from the UAE decreased to reach $ 2.2 billion in the first nine months of FY 2016/2017compared to $ 2.7 billion during the same period of FY 2015/2016.

Egypt's main exports: smart cards, copper products, electrical connectors and cables, furniture, clothing, marble.

Contractual Framework

- Agreement on trade exchange and economic and technical cooperation 19/07/1988

- Memorandum of Understanding in the fields of trade, customs and exhibition management and communications and information technology 23/4/2000

- Agreement on avoidance of double taxation and prevent tax evasion 12/04/1994

- Agreement on the Encouragement and Protection of Investments 05/11/1997

- Cooperation Agreement between the General Union of Chambers of Commerce and the Federation of Chambers of Commerce and Industry Abu Dhabi 03/15/1988

- Agreement to establish a joint businessmen council between the General Union of Chambers of Commerce And the Federation of Chambers of Commerce and Industry of Abu Dhabi 12/07/1993

- Agreement for joint cooperation between the UAE Consumer Cooperative Union and the General Union of Cooperatives in Egypt

- Agreement on the scientific and technical cooperation in the fields of agriculture 2/10/1973

- Agreement on the Joint Arab Investment 15/10/1975

- Trade Agreement, trade and economic and technical cooperation and investment promotion 07/19/1988

- Agreement on regulating the use of Egyptian manpower in the UAE 15/03/1988

- Agreement on cultural, educational and scientific cooperation 09/22/1988

- Agreement on the Establishment of a high joint committee 22/09/1988

- Memorandum of Understanding for cooperation in the field of electricity and energy 10/03/1990

- Agreement to avoid double taxation 12/04/1994

- Cooperation Protocol between the Ministries of Awqaf in the two countries 13/04/1992

- Agreement on the Encouragement and Protection of Investments 05/11/1997

- Agreement on the legal and judicial cooperation 05/02/2000

- Airline Agreement between their respective territories 01/31/2002

- Memorandum of Understanding for the exemption of visas for diplomatic passports

- Memorandum of understanding on political consultations 21/07/2008

- Memorandum of Understanding between the Centre for Information and Decision Support and the Department of Planning and Economy in Abu Dhabi 08/02/2009

- Memorandum of Understanding between the Abu Dhabi Future Energy Company (Masdar) and the General Authority for Investment 02/18/2009

- Cooperation Agreement between the Islamic Affairs and Awqaf 26/03/2009

The most prominent economic agreements signed between the two countries include the following:

On 15/3/2015, Minister of Electricity Mohamed Shaker and Hussein al-Nowais of al-Nowais Investments attended the signing of an agreement to produce energy from a coal-operated power plant between Egypt Electricity Holding Company and al-Nowais Investment. The plant is operated by non-polluting coal with a production capacity of 2,640 megawatt in Oyoun Moussa area in conformity with global environment standards. The project, whose investment costs amount to around 4.5 billion dollars, will contribute to adding new capacity to the electricity sector and diversify resources of energy in the near future.

On 18/4/2014, Egypt and the UAE signed a 250 million pound cooperation protocol to train 100,000 youth of both genders on the latest technological and technical programs to meet the Egyptian market's needs of workforce.

On 26/10/2013, Egypt and the United Arab Emirates have signed an agreement for supporting the Egyptian development program. Under the agreement, the UAE would extend a sum of $ 4.9 billion for carrying out projects for upgrading the services sector, enhancing the living standards and human resources in Egypt.

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