UAE and Ethiopia Relations: Trade and Diplomacy

Since the current President of the UAE HH Sheikh Mohamed bin Zayed al Nahyan stepped into position in May 2022, many diplomatic bilateral relations have taken place.

Just yesterday, In Addis Ababa, UAE President Sheikh Mohamed and Ethiopian Prime Minister Dr. Abiy Ahmed held talks to discuss trade and diplomacy. The UAE and Ethiopia have seen a remarkable rise in their non-oil trade over the past ten years, reaching 180%. 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 totaling AED2.307bn. Ethiopia’s top imports from the UAE included mineral oils, raw gold, pulses, pre-fabricated buildings, iron and steel structures and parts, and certain goods.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the UAE’s leadership 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. The UAE invested $2.9 billion in Ethiopia, covering four main sectors: chemicals, food and beverages, aluminum, and pharmaceuticals.

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. 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. 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.

As an expat in the UAE, seeing the UAE and Ethiopia’s expanding commerce and diplomatic ties is extremely motivating. Since the current President, HH Sheikh Mohamed bin Zayed al Nahyan, took office in 2022, it is clear that the UAE is taking serious initiatives to strengthen bilateral relations.

The recent talks in Addis Abeba between UAE President Sheikh Mohamed and Ethiopian Prime Minister Dr. Abiy Ahmed highlight both countries’ willingness to working together on commerce and diplomacy. Non-oil commerce between the two nations has increased by an astounding 180% in the last decade, highlighting their shared goal for economic progress and mutual benefit.

The fact that the UAE’s non-oil trade with Ethiopia will exceed AED5.113 billion in 2022, more than double the level in 2013, demonstrates the potential of this partnership. It’s about generating opportunity for both countries to prosper, not simply statistics. The UAE’s $2.9 billion investment in Ethiopia across critical areas such as chemicals, food and beverages, aluminum, and medicines indicates a commitment that goes beyond trade statistics — it’s about establishing a long-term collaboration.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign commerce, has stated that the UAE and Ethiopia have a solid foundation for expanding mutual commerce.

The strategic location of Ethiopia as a gateway to East Africa and beyond makes it a vital entry point for Emirati exports and re-exports to other African countries. At the same time, the UAE’s global network of trade partners may assist Ethiopian exports in finding new markets.

It is apparent that this collaboration extends beyond transactions; it is about using the assets of both countries to lift their economies and secure long-term progress. As an expat, I am encouraged to see the UAE’s dedication to expanding ties with African states, as well as Ethiopia’s rise as a key participant in this initiative. This relationship helps both countries and acts as an example of international cooperation, paving the road for growth and prosperity.