The industrial partnership is vital to counter the economic impact of global crises and underscores the importance of private sector engagement in sustainable development for the Arab world.
A bloc of four Arab countries with 122 million people, all of which are also peace partners of Israel, have joined together as part of a unique and large new partnership.
Bahrain has joined the UAE, Egypt and Jordan in this new partnership that will focus on a range of economic investments in the region, designed to bolster Arab economic integration. The fact that the countries all have peace with Israel illustrates new possibilities for the Abraham Accords because trade is a key building block of the new peace.
The National in the UAE reported Monday that “Bahrain has joined the Industrial Partnership for Sustainable Economic Development, boosting the industrial manufacturing value add of the alliance to more than $112.5 billion.”
The report says that Foreign Direct Investment “in the UAE, Egypt and Jordan reached $151bn between 2016-2020, accounting for about 42 percent of new FDI in the Middle East. The total value of the countries’ exports stood at $433bn in 2019, while imports amounted to approximately $399bn, according to the statement.”
Key officials such as Egypt’s Minister of Train, the UAE Minister of Industry and Advanced Technology, and the Jordanian Minister of Industry attended the meeting this week alongside Zayed Al Zayani, Minister of Industry and Commerce of Bahrain.
“Bahrain, a major producer of raw aluminum and iron ore, boasts a strong industrial sector with more than 9,500 companies and 55,000 employees and $4.3bn in industrial foreign direct investment. The partnership aims to establish large joint industrial projects, create job opportunities, contribute to increasing economic output, diversify the economies of the partner countries, support industrial production and increase exports,” the statement said, according to the National.
With global markets in chaos due to ramifications of COVID-19 and now the Ukraine war; supply chains threatened, gas prices rising, inflation rising and other sectors affected; this partnership could help anchor the region. Alongside other groupings such as the Israel-India-US-UAE group and the Negev Summit framework, there is much work to be done to increase trade and stability.
Sustainable development is key
The industrial partnership is vital to counter the economic impact of global crises and underscores the importance of private sector engagement in sustainable development for the Arab world, Dr. Nevin Gamea, Egypt’s Minister of Trade and Industry, said. “The industrial partnership is expected to boost the gross domestic product of member countries by $809 billion,” the National reported. “The partnership identified five sectors of mutual interest, including petrochemicals; metals, minerals and downstream products; textiles; pharmaceuticals; and agriculture, food and fertilizers.”
This builds on a pact signed between the UAE, Egypt and Jordan in May. Egypt is also working with Jordan and Iraq on new initiatives.
“Bahrain is an ideal center for operations in the Arabian Gulf region.”
Al-Ain media
Al-Ain media noted how important this is for food security in the region. Russia’s foreign minister visited Egypt on Sunday to discuss grain exports from Ukraine. “The integrated industrial partnership will enable the four countries to enhance food and drug security in a manner that ensures the sustainability of the provision of goods and prevents any interruptions or imbalances and the resulting price distortions, and even stimulates growth and economic diversification, reduces import costs and facilitates finding alternative sources of goods,” Al-Ain noted.
The group will work on innovative solutions to expand agricultural production. This will include, chemical industry investment, manufacturing capabilities, modern logistics, skilled labor and access to the global market that can be used to expand the production of alternative medicines and active ingredients, the reports say.
The countries will combine experiences in the field of pharmaceutical industries with the focus on expanding the manufacture of alternative medicines in Egypt, Jordan and the Emirates and Bahrain, reports say. Bahrain’s accession will increase the partnership’s contribution to the industrial value added of the Middle East from $106.26 billion to $112.56 billion. “Bahrain is an ideal center for operations in the Arabian Gulf region,” Al-Ain says.