UAE investments in Ethiopia totalled $2.9b at end of 2022

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 over 120 million people, and is a major market for the UAE’s non-oil exports and re-exports, he added.

Al Zeyoudi told the Emirates News Agency (WAM) that Ethiopia and the UAE have strong trade and investment relations and noted that the two countries traded non-oil goods worth $1.4 billion in 2022, and the UAE invested $2.9 billion in Ethiopia.

These investments cover four main sectors, which are chemicals, food and beverages, aluminium and pharmaceuticals, he added, affirming that 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 $210.3 million 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 per cent year-on-year to $553.3 million 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 percent compared to 2020 and 2019, respectively, he further added.

Al Zeyoudi also stressed 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 UAE 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.

Ethiopia also plays a vital role in the stability and development of the African continent, and the UAE aims to strengthen its bilateral relations based on its developmental role through working with partners around the world on projects that promote sustainable development and mutual interests, Al Zeyoudi said in conclusion.

Non-oil trade exchange: 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 Dhs34 billion between 2013 to 2022.

In 2022 alone, the two countries recorded Dhs5.113 billion in non-oil trade, more than double the figure in 2013.

Breakdown of UAE-Ethiopia trade in 2022

The UAE exported non-oil products worth Dhs773 million to Ethiopia, with re-exports reaching Dhs2.033 billion, and imports totalling Dhs2.307 billion.

Ethiopia’s top imports from the UAE included mineral oils with a total value of Dhs183 million, raw gold at Dhs58 million, pulses at Dhs48 million, pre-fabricated buildings at Dhs38 million, and iron and steel structures and parts at Dhs28 million.

The UAE also re-exported certain goods to Ethiopia, such as automobiles (Dhs334 million), jewellery and ornaments (Dhs225 million), medical vaccines (Dhs199 million), self-processing information and communication machinery (AED159 million), and communication devices and equipment (Dhs125 million).

The UAE’s top three imports from Ethiopia in the previous year were raw gold, meat and coffee. Raw gold imports amounted to more Dhs2 billion, while meat and coffee imports were valued at Dhs207 million and Dhs43 million, respectively.

In March this yaer, the Abu Dhabi Chamber of Commerce and Industry has organised, in cooperation with the Embassy of Ethiopia, a virtual webinar on the available investment opportunities in Ethiopia.

Mohamed Helal Al Mheiri, Director-General of the Abu Dhabi Chamber, and Suleiman Dedefo, Ambassador Extraordinary and Plenipotentiary of Ethiopia to the UAE, attended the meeting.

Lelise Neme Sori, Commissioner of the Ethiopian Investment Commission, and Assefa Mulgeta, Director-General of Export Marketing and Promotion Department at the Ministry of Trade and Industry of Ethiopia and Deputy Commissioner-General for Expo 2020, Dubai, attended the webinar as well.

During the meeting, the speakers previewed some information related to the potential investment opportunities in several priority sectors including the textile, leather and leather products, pharmaceuticals, agro-processing, mining, ICT and tourism, in addition to various new sectors such as transportation, railways, healthcare, consultation services and e-commerce.

In his welcome remarks, Al Mheiri expressed the hope that the webinar would open new doors for investment, trade and cooperation and strengthen the partnerships in diverse sectors of mutual interest.

WAM