Sunday, April 19, 2026

UAE, Ethiopia deepen trade ties to protect supply chains

By our staff reporter

Ethiopia and the United Arab Emirates are strengthening logistics cooperation to shield trade flows from regional maritime instability, as concerns grow over disruptions in the Red Sea and Gulf of Aden. The latest coordination efforts, discussed at a high-level meeting in Dubai this week, were presented as a way to keep Ethiopia’s import and export corridors moving despite rising external pressures.

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.

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