Saturday, May 9, 2026

UAE, Ethiopia deepen trade ties to protect supply chains

By our staff reporter

The United Arab Emirates (UAE) has unveiled a series of regional logistics and customs reforms aimed at protecting African markets, including Ethiopia, from the current maritime instability.

​A high-level coordination meeting held this week in Dubai, led by the Emirates and involving the country’s maritime authorities as well as international shipping organizations, resulted in a strategy specifically designed to ensure the continuity of import and export trade for corridor-dependent African economies amid disruptions in the Red Sea. ​This high-level coordination meeting was hosted at the headquarters of the Ports, Customs and Free Zone Corporation (PCFC) in Dubai.

The meeting brought together officials from the UAE, shipping companies and maritime authorities to address bottlenecks affecting cargo movement across the Gulf and the Horn of Africa. UAE officials described the relationship with Ethiopia as extending beyond diplomacy into a strategic economic partnership with direct implications for trade resilience.

The UAE has become one of Ethiopia’s most important economic partners in recent years. Since 2018, it has provided close to $3 billion in loan and investment support, while more than 113 UAE-backed projects are currently active in Ethiopia, with an estimated value of $2.9 billion. Trade between the two countries also exceeded $6 billion in 2023, underscoring the scale of their commercial links.

Officials said the 2024 currency swap agreement between the National Bank of Ethiopia and the Central Bank of the UAE helped ease foreign exchange pressures, but stressed that maintaining the physical flow of goods remains just as important for economic stability. Trade resilience, they said, now depends on both financial cooperation and secure logistics.

At the center of the discussion was the UAE’s “Green Corridor,” a fast-track customs and logistics channel designed to speed up cargo clearance and reduce delays. Dubai Customs Director General Abdullah Busenad said the Emirates is expanding the system to Saudi Arabia and Oman as part of broader efforts to improve regional supply chain efficiency.

The UAE is also relying on alternative maritime gateways, including the ports of Fujairah and Khor Fakkan, to reduce exposure to disruptions in sensitive sea routes. Officials said integrating these ports with land and rail transport has helped create more flexible and reliable trade routes for partners such as Ethiopia.

Executives from international maritime organizations said the UAE’s policy flexibility has helped offset rising transport costs and keep goods moving in a difficult global environment. UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi said the goal is to build a more connected and resilient trade system that ensures strategic commodities reach Ethiopia without interruption.

Hot this week

Production up, but the ‘cost’ variable weighs heavily

Production is up in 2021 for the Italian agricultural...

Luminos Fund’s catch-up education programs in Ethiopia recognized

The Luminos Fund has been named a top 10...

Well-planned cities essential for a resilient future in Africa concludes the World Urban Forum

The World Urban Forum (WUF) concluded today with a...

Private sector deemed key to unlocking AfCFTA potential

The private sector’s role is vital to fully unlock...

ESX expands trading floor with two new investment banks

The Ethiopian Securities Exchange (ESX) has admitted First Addis...

Strengthening Africa’s security architecture

Africa has been increasingly drawn into conflicts and faces...

As India, Africa Get Closer, Critical Minerals Hold Key

Second, financing mechanisms must be reimagined. Critical minerals projects...

How Football Supports Ethiopia’s Economic Growth

Football’s Role in Ethiopia’s Growth On match day, football in...

GameZone Tongits Win Like a Pro: Advanced Strategies You Need

What really separates a casual Tongits player from a...
spot_img

Related Articles

Popular Categories

spot_imgspot_img