Egypt Joins UAE And Bahrain To Promote Clean Industrial Initiatives In The MENA Region

In a significant move to boost clean industrial initiatives, the Industrial Transition Accelerator (ITA) has joined forces with the Industrial Modernization Center (IMC) of Egypt. This collaboration underlines Egypt's pivotal role in advancing sustainable industrial practices within the Middle East and North Africa (MENA) region.

The partnership aligns with the Arab Republic of Egypt's Ministry of Industry's efforts to propel the region towards a greener, more sustainable future, emphasizing the reduction of carbon emissions in high-impact sectors.

The formal agreement ceremony saw the participation of distinguished guests, including Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and ITA Co-Chair, and Lieutenant General Engineer Kamel Al-Wazir, Egypt's Deputy Prime Minister for Industrial Development and Minister of Industry and Transport. Other notable attendees were Dr. Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade. Omar Suwaina Al Suwaidi, representing the ITA, and Duaa Salima, on behalf of Egypt's IMC, were the signatories of this landmark agreement.

Omar Suwaina Al Suwaidi highlighted the unique position of the MENA region to lead in sustainable industry, spurred by its rapidly growing industrial sector and rich natural and human resources.

"The MENA region has a unique opportunity to become a world leader in sustainable industries, driven by a rapidly expanding industrial sector and abundant human and natural resources. The ITA's new partnership with Egypt marks the beginning of an exciting chapter, where we can strengthen regional cooperation to advance industrial sustainability, and reduce carbon emissions. Lastly, to benefit from advanced technologies in developing innovative solutions to achieve sustainable goals while enhancing industrial competitiveness," he said.

Duaa Salima expressed her approval of the MoU, which is set to bolster collaboration in reducing carbon emissions from the heavy-emitting industry and transport sectors. This agreement also aims to enhance the exchange of technical knowledge and expertise. Salima emphasized the MoU's role in supporting carbon emissions reduction projects, which are crucial in achieving final investment decisions swiftly.

The ITA's primary goal is to unite leaders across industry, finance, and government spheres to hasten the decarbonization of key sectors like aluminium, cement, chemicals, steel, aviation, and shipping. This collaborative effort marks a vital step towards diminishing the carbon footprint of the industrial sector across the MENA region. Egypt's involvement signifies a critical advancement, positioning it as the third member of the ITA's MENA Programme, after the UAE and the Kingdom of Bahrain.

Egypt's strategic location, coupled with its accessibility to both conventional and renewable energy sources, places it as a significant industrial hub within the MENA region. The country's industrial sector contributes notably to its economy, with aims to increase its GDP contribution from 14% to 20% by 2030, highlighting the sector's role in fostering green economic development. With the ITA's support, Egypt is set to become a key supplier for Europe's demand for low-carbon commodities, further strengthening its industrial position in the region.

The ITA, together with the UAE Ministry of Industry and Advanced Technology (MoIAT), plans to identify and expedite key industrial projects within the next two years, aiming for them to be operational before 2030. This initiative aligns with the climate goals outlined in the Paris Agreement, showcasing the commitment to a sustainable industrial future.

"This partnership with Egypt builds on the growing momentum of ITA's MENA Programme. With its established energy infrastructure, growing renewable energy capacity, and close trade ties to the EU, Egypt is well-positioned to become a leader in supplying low-carbon industrial goods," remarked Faustine Delasalle, Executive Director of the ITA.

In 2024, the ITA revealed its Project Support Programmes, extending its reach to include partnerships with the governments of Brazil, the UAE, and Bahrain. These programmes have cultivated a pipeline of over 45 projects, representing investment prospects exceeding USD100 billion. The ITA's specialized support aims to ensure the successful completion of these projects, focusing on regulatory and policy alignment, developing low-emission value chains, and establishing risk mitigation mechanisms to attract investments towards regional industrial decarbonisation.