02 Oct

How Ethiopia Synergizes Its Economic Opportunities With Gulf’s Capital?

Ethiopia’s trade and investment relation with Gulf countries/Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates/ has though shown progress since recent years, there is a huge imbalance compared with country’s untapped economic opportunities and latter’s enormous capital.

Most of the Gulf countries have plentiful petroleum resources that have enabled them to be among world economic powers with immense potential for Foreign Direct Investment (FDI).

The price fluctuation of oil in global market has, however, posed a challenge and reduced energy exporting nations’ revenue from the sector. As a result, there is a growing demand among Gulf countries to lower their dependence on oil revenue and diversify their economies.

On the other hand, Ethiopia has offered wide investment opportunities for Gulf countries in the areas of agriculture, energy, health care, tourism and hospitality sectors which are crucial for the latter to achieve their goals of economic diversification.

In an exclusive interview with The Ethiopian Herald, Ministry of Foreign Affairs Middle East Affairs Director- General Ambassador Suleiman Dedefo says the previous government’s failure to adopt investment friendly polices coupled with the Arabs’ limited investment mentality had limited the active economic ties of the two.

Ambassador Suleiman further notes that the historical mystification of denying Ethiopia’s membership in the Middle East community and repudiating the fact that its peoples share similar cultural and religious identities with the Arabs were also hampered the two sides from making a meaningful economic engagement.

He says: “Some individuals held wrong perception towards Ethiopia and trying to portray the country as the enemy of Arabs working to block Islamization and Arabization in East Africa. In fact, our previous leaders had a tendency of accepting this mystification.”

An important milestone in boosting economic ties was Ethiopia’s adoption of Foreign Affairs and National Security Policy and Strategy that attaches due emphasis to mutual economic benefits. In this regard, relation with the Gulf countries is deeply focused to attract FDI and to make them destinations for agricultural exports, Ambassador Suleiman notes.

Read more: Ethiopia: How Ethiopia Synergizes Its Economic Opportunities With Gulf’s Capital?

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