Cairo

Source: Elwatannews

Dr.. Ali Mohamad Al-Khouri

Dr. Ali Mohamad Al-Khouri, President of the Arab Union for the Digital Economy, and Advisor to the Economic Unity Council of the League of Arab States, said that the process of transferring currencies between countries is considered an important part of the global financial system and plays a vital role in enhancing trade and investment, and from this standpoint, financial cooperation between Egypt The UAE enhances trade between the two countries, as the Central Bank of the United Arab Emirates signed a bilateral currency exchange agreement with Egypt, which stipulates efficient currency exchange and a mechanism to facilitate financial operations between the two countries, according to the Governor of the Central Bank of Egypt, announcing that the cooperation agreement with the Central Bank of Egypt The UAE will work to increase the volume of trade exchanges between the two countries and support continued cooperation between the two countries in various fields, especially since the local currency exchange process is considered the cornerstone of financial cooperation between the two countries.

The President of the Arab Union stressed that the UAE is considered  Egypt’s most important economic partner  , as it invests in various sectors, including infrastructure, tourism, and energy.

A report by the Central Agency for Public Mobilization and Statistics in Egypt showed an increase in the volume of trade between Egypt and the UAE, reaching $4.9 billion in 2022, compared to $4.8 billion in 2021, an increase of 2.5%. The report indicated that Egypt’s exports to the UAE amounted to $1.9 billion in 2022, compared to $1.8 billion in 2021, an increase of 10.6%. The value of the UAE’s exports to Egypt in 2022 is about $2.9 billion. This represents a decrease of 2.3% in 2022 compared to $3.0 billion in 2021.

Fruitful financial cooperation between the two countries

He explained that the financial cooperation relationship between Egypt and the Emirates is one of the important strategic relationships that enhances cooperation between the two countries in the field of economy and investment. This cooperation goes back many years, as the two countries enjoy a strong and professional financial system. Cooperation has witnessed remarkable development in recent years, and the Egyptian relationship is also distinguished. Emirates trust and stability in the financial field. This trust enhances the possibility of exchanging experiences and knowledge in the field of financial business and investment. The relationship was represented in the signing of many agreements and memorandums in various fields such as banking, insurance and investment.

Main destinations for Egyptian investment

The Emirates is considered one of the main destinations for Egyptian investment, as it provides various investment opportunities. Egyptian businessmen invest in the Emirates in various fields such as real estate, tourism, energy and industry. The governments of the two countries are encouraged to strengthen this cooperation by providing support and flexibility in financial procedures and legislation. For its part, it seeks Egypt seeks to attract more Emirati investments, by providing an encouraging investment environment and facilitating legal and administrative procedures. The Egyptian government is strengthening these efforts by launching several major projects in the fields of infrastructure, energy, and tourism.

Exchange currencies and increase trade

He pointed out that currency exchange deals play a vital role in increasing trade between countries, through economic cooperation and enhancing confidence between countries, and also contribute to providing cash liquidity and achieving economic growth. By enhancing the volume of trade, sustainable economic development is achieved and the economic progress of participating countries is enhanced. It also allows countries to exchange and convert currencies at specific interest rates and for a specific period of time. One of the most important roles that these deals play is achieving a balance in trade transactions between countries. Through it, countries are able to exchange their local currencies and obtain the local currency of the other country, which contributes to enhancing the volume of trade between them. Thus, leading to increased economic growth and enhanced economic cooperation among participating countries.

This type of deal also enhances the ability to deal jointly and reduces the consequences of  price fluctuations in currencies . Therefore, increased confidence and stability enhance investments and encourage the development of trade relations between countries. Moreover, it also contributes to providing monetary liquidity to countries and enhances their ability to finance commercial operations and investments. It also works to enhance economic growth and promote economic development in the participating countries.

A nucleus for achieving Arab economic integration

He stressed that the Egyptian-Emirati currency exchange agreement is a nucleus for achieving Arab economic integration, and an effective tool that contributes to strengthening economic cooperation between Arab countries, which contributes to improving monetary and financial policies, enhancing trade and investment, and economic and financial stability in the region in the region, and it also contributes to Facilitating import and export operations, reducing costs associated with currency conversion, and expanding the customer base and markets for Arab companies.

It also provides investment opportunities in Arab financial markets and enhances the flow of capital between Arab countries. Thus, it contributes to enhancing economic growth and providing new job opportunities for Arab citizens. By enhancing economic cooperation, Arab countries can achieve sustainable development and achieve their common economic interests.