KHALED AL KHAWALDEH (ABU DHABI)
Jordan became the first Arab country to join the UAE’s Comprehensive Economic Partnership Agreement (CEPA) programme following a signing ceremony that was attended by the heads of both states on Sunday.
Wajdi Makhamreh, a Jordanian Investment and Economic expert, said the agreement represented more than just an economic partnership, but the deepening of a strategic relationship.
“This agreement reflects the special relationship between Jordan and the UAE, but also reflects the UAE’s support for Jordan during the troubles that are facing the region, and the economic slowdown experienced by Jordan,” Makhamreh told Aletihad on Monday.
“I predict this partnership will support various sectors, and facilitate investment in Jordan which is the cornerstone of the economic reforms suggested by the King recently.”
The agreement, which comes into effect later this year, will reduce tariffs and trade restriction and is expected to increase bilateral trade to $8 billion by 2032 and create substantial avenues for cooperation between various sectors.
Trade between the two countries has increased 47.7 percent between 2019-2023, with mutual investments worth $22.5 billion.
The UAE is already the largest international investor in Jordan, with investments exceeding $4 billion by the end of last year, accounting for 14 percent of the Kingdom’s total foreign direct investment.
The deal builds on agreements signed in November last year which will see $5.5 billion worth of investments by the UAE in Jordan in various projects, including a railway connecting the port of Aqaba to various mining regions in the Kingdom.
“This agreement comes at the right time following the economic troubles the Kingdom is facing as a result of the regional deterioration following the war in Gaza and its expansion to Lebanon… I believe this is an affirmation of the UAE’s commitment to seeing economic prosperity in Jordan and the rest of the region,” Makhamreh said.
Makhamreh said he also believed there were various benefits for the UAE economy as well, particularly in the fields of healthcare and logistics.
Mohamed Hassan Alsuwaidi, the UAE’s Minister of Investment, lauded Jordan as a “standout” country, with promising investment opportunities for the UAE.
“As the UAE embarks on an ambitious growth agenda focused on strategic investments in high-potential sectors globally, Jordan stands out as a promising partner in areas such as energy, manufacturing, tourism, healthcare, and real estate,” he said.
Moreover, Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, highlighted the opportunities for renewable energy projects, with 29 percent of Jordan’s electricity already coming from solar and wind power.
Abdulla bin Touq Al Marri, Minister of Economy, said the agreement was in line with the UAE’s strategic aim to position itself as a global logistics hub.
“This partnership is central to our vision of positioning the UAE as a global economic hub, expanding into new markets, and boosting our competitiveness,” he said.