A view of Jebel Ali port in Dubai. In 2023, UAE imports from america reached $25.9 billion, up from $21.3 billion in 2022. — File photograph
The futuristic $20 billion transcontinental India-Center East Europe Financial Hall (IMEC) plan, marking a “new period of worldwide connectivity”, obtained a consequential fillip with leaders of the UAE and the US reaffirming their dedication to the strategic initiative.
President Sheikh Mohamed mentioned the progress of this landmark hall and underscored its potential to usher in a “new period of worldwide connectivity” throughout his simply concluded assembly with US President Joe Biden on Tuesday.
Work on the India-UAE leg of the IMEC, envisaged as a counter to China’s intercontinental Belt and Highway Initiative, is on monitor to begin with the approaching launch of a digital platform to trade data between ports of the 2 nations.
The bold undertaking was launched on the G20 Leaders’ Summit in New Delhi final yr. When full, it will join India by ship-to-rail connections by way of the UAE, Saudi Arabia, Jordan, Israel, and Europe by way of Greece.
On the assembly held on the White Home on Monday, Sheikh Mohamed and Biden reaffirmed that the hall will generate financial progress, enhance efficiencies, decrease greenhouse fuel emissions, and allow the transformative integration of Asia, Europe, and the Center East, based on a joint assertion.
The 2 leaders underscored that the transformative partnership had the potential to usher in a “new period of worldwide connectivity” to facilitate international commerce and clear vitality distribution, develop dependable entry to electrical energy, and strengthen telecommunication. They emphasised the significance of joint initiatives to advertise a round economic system and advance sustainable practices, underscoring their dedication to innovation for useful resource effectivity and environmentally accountable progress.
The IMEC, a proposed 4,800 km lengthy route comprising a railroad, ship-to-rail networks, and highway transport routes extending throughout two corridors, consists of two commerce corridors: the East Hall, which connects India to the Arabian Gulf, and the Northern Hall, which connects the Gulf to Europe. IMEC goals to offer an economical and dependable cross-border ship-to-rail transit community to bolster current maritime delivery. It was introduced in September 2023 in New Delhi on the sidelines of the G20 Summit. This adopted a gathering between the leaders of India, the US, the UAE, Saudi Arabia, Italy, France, Germany, and the European Fee.
The bold undertaking intends to extend effectivity, scale back prices, safe regional provide chains, enhance commerce accessibility, improve financial cooperation, generate jobs, and decrease greenhouse fuel emissions, leading to a transformative integration of Asia, Europe, and the Center East.
Strategically, the IMEC is considered as a counter to China’s BRI, though its scale and scope are comparatively restricted.
In line with analysts, the robust financial ties between the UAE and the US are mirrored within the substantial rise in non-oil overseas commerce (excluding companies), which surged to $39.5 billion in 2023 from $23.8 billion in 2022.
In 2023, UAE imports from america reached $25.9 billion, up from $21.3 billion in 2022. In the meantime, UAE exports to the U.S. elevated from $3.2 billion in 2022 to $3.9 billion in 2023. Moreover, UAE re-exports to the U.S. rose to $9.6 billion in 2023, in comparison with $8.2 billion the earlier yr.
Between 2018 and 2023, UAE investments within the U.S. totaled $3.7 billion, whereas U.S. investments within the UAE amounted to $9.5 billion. Key sectors for UAE funding within the U.S. embody renewable vitality, telecommunications, vitality, actual property, software program companies, and knowledge know-how.
This yr, a number of collaborative agreements in know-how and synthetic intelligence have been fashioned. In June, World Broad Expertise (WWT), a outstanding U.S. know-how integration agency, partnered with NXT World to determine the UAE’s first AI Integration Centre in Masdar Metropolis, Abu Dhabi, which is about to be one of the vital sustainable city developments globally.
