The UAE and Ethiopia are looking to enhance trade and investment as relations between the countries continue to blossom.
President Sheikh Mohamed bin Zayed Al Nahyan and Dr. Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, held talks on various aspects of bilateral relations, in addition to broader regional and international issues of mutual interest.
During the meeting held in Addis Ababa, the Prime Minister of Ethiopia welcomed Sheikh Mohamed, emphasising the warm relations between the two countries.
UAE-Ethiopia trade and investment
Sheikh Mohamed and the Prime Minister of Ethiopia discussed enhancing various areas of cooperation, including economic, investment, and development ties, across all sectors to serve joint aspirations to support the development and prosperity of both nations.
It comes as the UAE and Ethiopia have seen a remarkable rise in their non-oil trade over the past ten years reaching 180 per cent, with the total value of their non-oil trade exceeding AED34bn between 2013 to 2022.
In 2022 alone, the two countries recorded AED5.113bn in non-oil trade, more than double the figure in 2013.
The UAE exported non-oil products worth AED773m to Ethiopia, with re-exports reaching AED2.033bn, and imports totalling AED2.307bn.
Ethiopia’s top imports from the UAE included:
- 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 also re-exported certain goods to Ethiopia, such as automobiles (AED334m), jewellery 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.
Raw gold imports amounted to more AED2bn, while meat and coffee imports were valued at AED207m and AED43m, respectively.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the UAE’s leadership had directed the country to strengthen its relations with African nations, especially Ethiopia.
Ethiopia is the second-largest country in Africa by population, with more than 120 million people, and is a major market for the UAE’s non-oil exports and re-exports, he added.
Al Zeyoudi said that Ethiopia and the UAE have strong trade and investment relations and noted that the UAE invested $2.9 billion in Ethiopia.
These investments cover four main sectors:
- Chemicals
- Food and beverages
- Aluminium
- Pharmaceuticals
Al Zeyoudi said the UAE also invests in other sectors with potential, such as ports, logistics services, storage, warehouses and real estate.
The UAE’s non-oil exports to Ethiopia expanded by 4.5 per cent year-on-year to reach $210.3m in 2022, showing a robust recovery from the COVID-19 pandemic-induced slump in 2020, when they fell by 22 per cent, while the figure in 2022 also exceeded the pre-pandemic level of 2019 by 8.5 per cent, he explained.
Meanwhile, the UAE’s re-exports to Ethiopia grew by 8.6 percent year-on-year to $553.3m in 2022, continuing a strong upward trend since 2018, when they increased by 22.5 per cent, while re-exports rose by 39 per cent and 9.6 per cent compared to 2020 and 2019, respectively, he further added.
Al Zeyoudi said that the UAE and Ethiopia have a strong base for boosting their mutual trade, given their friendly relations and the variety of products and services they can offer each other, which could lead to a more comprehensive trade partnership.
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.
The United Arab Emirates values its trade and investment ties with Ethiopia and wants to take them to new heights, as Ethiopia is a key trade partner in Africa and a promising place to invest, with many opportunities in its fast-growing emerging economy, he further added.
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