UAE and Kuwait set up virtual trade corridor to simplify procedures and boost trade

UAE imported more than two million tonnes of petroleum oil products valued at Dh3.79bn from Kuwait last year

AD Ports Group signed a preliminary agreement with the Kuwait General Administration of Customs to set up a new virtual trade corridor between the UAE and Kuwait. Photo: AD Ports Group

AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, signed a preliminary agreement with the Kuwait General Administration of Customs to set up a virtual trade corridor between the UAE and Kuwait to boost trade between the two countries.

As part of the agreement, AD Ports Group’s digital arm Maqta Gateway will develop the corridor under the supervision of the Department of Economic Development — Abu Dhabi that will further simplify and help cross-border trade, according to a statement from AD Ports on Sunday.

Customs authorities in both countries will be able to access pre-arrival information for international cargo movements, making cross-validation of information significantly faster and promoting pre-clearance of goods.

“By establishing this virtual trade corridor, we will generate a positive impact on the UAE and Kuwaiti economies and support the wider efforts of our wise leadership to promote trade and fraternal bonds between our nations, establishing Abu Dhabi as a leading trade and logistics hub in the region,” said Rashid Al Balooshi, Undersecretary of the Abu Dhabi Department of Economic Development and chairman of the Higher Committee of Logistics Development.

In 2021, the UAE imported more than two million tonnes of petroleum oil products valued at Dh3.79 billion ($1.03bn) from Kuwait, as well as 143,408 tonnes of petroleum coke and tar valued at Dh213 million.

During the same period, Kuwait imported more than 18.94 million tonnes of pebbles and stones for use in construction from Abu Dhabi, valued at Dh650m. It also imported 16 tonnes and 18 tonnes of gold and jewellery worth Dh3.16bn and Dh2.8bn, respectively.

Other goods exchanged between the two countries include electronics, medicines, food products, copper scraps and ethylene polymers.

AD Ports Group, which made its debut on the Abu Dhabi Securities Exchange last month, raised Dh4bn from its share sale. It is looking to expand its operations around the world.

Last year, the company signed multiple partnership agreements with Jordan’s Aqaba Development Corporation to develop tourism, logistics, transport and digital infrastructure in Aqaba.

It also signed an agreement with the Egyptian Group for Multipurpose Terminals, the commercial arm of the Egyptian Ministry of Transportation, to develop and operate a multipurpose terminal in Safaga Port on the Red Sea.

Updated: March 27, 2022, 2:56 PM
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