UAE and Egypt Forge Economic Partnership: A Story of Collaborative Success and Strategic Growth

Thndr Expands UAE Market Access Thru ADX Partnership, Bolstering Regional Investment

abu Dhabi, UAE – Investment platform Thndr has announced a landmark partnership with the Abu Dhabi Exchange (ADX), substantially expanding access to the UAE stock market for both local and international investors. the collaboration, facilitated by the Financial Services regulatory Authority (FSRA) and supported by Hub71, Emirates NBD, and e&, aims to bridge trading gaps across the region’s capital markets.

This move allows Thndr’s users to directly invest in companies listed on ADX, including prominent entities like ADNOC Drilling. ADX CEO abdullah Alnuaimi hailed the onboarding of Thndr as a “transformative step” in fostering regional capital market connectivity.

Thndr, already operating in the UAE, Egypt, and the U.S., offers a diverse portfolio of investment options, encompassing stocks, gold, mutual funds, and savings products. In 2024 alone, the platform processed over $13 billion in trading volume, executing 12 million trades, demonstrating its growing influence in the fintech investment space.

“Retail investors deserve access to a grade-A investment service,” stated Ahmad Hamouda, Co-founder and CEO of thndr, emphasizing the personal importance of the partnership given his egyptian heritage and the strengthening ties between Egypt and the UAE. He highlighted the opportunity for investors to tap into the historically strong performance of the UAE market and gain exposure to the wider MENA region through partnerships like Tabadulhub.

The partnership isn’t simply about expanding market reach; it’s a testament to the UAE’s progressive financial landscape.Seif Amr, Thndr’s Co-founder and Board Member, underscored the collaborative effort required to overcome regulatory hurdles, positioning the UAE, and particularly ADGM, as a regional leader in financial innovation.

Beyond the headlines: The Rise of Retail Investment in the MENA Region

This collaboration arrives at a pivotal moment for investment in the Middle East and North Africa. Historically, access to capital markets in the region has been limited for individual investors. However, a confluence of factors – increasing smartphone penetration, a growing digitally native population, and supportive regulatory frameworks – are driving a surge in retail participation.

Platforms like Thndr are democratizing investment, lowering barriers to entry and empowering a new generation of investors. The ADX partnership is a clear signal of intent from both organizations to capitalize on this trend, fostering financial inclusion and contributing to the diversification of the UAE economy.

The success of this venture will likely serve as a blueprint for similar collaborations across the MENA region, further solidifying its position as an increasingly attractive destination for global investment. Investors should monitor the evolving regulatory landscape and the continued innovation within the fintech sector to fully leverage the opportunities presented by this dynamic market.

How might the Ras El Hekma city development project impact Egypt’s overall economic growth and foreign investment landscape?

Deepening Bilateral Ties: A New Era of Cooperation

the United Arab Emirates (UAE) and Egypt are significantly strengthening their economic partnership, marking a pivotal moment for both nations.This collaboration extends beyond traditional trade, encompassing considerable investments, joint ventures, and strategic projects designed to foster lasting growth. Understanding the UAE – officially the United Arab Emirates – and its relationship with egypt is crucial for investors and businesses looking to capitalize on emerging opportunities in the Middle East and North Africa (MENA) region.

Key Sectors Driving the Partnership

Several key sectors are at the forefront of this burgeoning economic alliance:

Infrastructure Development: Major projects like the development of the Ras El Hekma city in Egypt, backed by significant UAE investment, exemplify the commitment to modernizing egyptian infrastructure. This includes ports, roads, and urban centers.

Real Estate: The UAE has consistently been a major investor in Egypt’s real estate market, especially in new cities and tourism-focused developments. This investment boosts Egypt’s housing supply and attracts foreign capital.

Energy: Collaboration in the energy sector is expanding, with a focus on renewable energy projects like solar and wind farms. Both countries aim to diversify their energy sources and reduce carbon emissions.

Tourism: Egypt’s tourism industry benefits from UAE investment in hotels, resorts, and tourism infrastructure. Increased flight connectivity and joint marketing initiatives further promote tourism between the two nations.

Financial Services: The UAE’s financial institutions are playing a growing role in supporting Egyptian businesses through loans, investments, and financial expertise.

Logistics & Transportation: Investments in port infrastructure and logistics networks are streamlining trade and enhancing Egypt’s position as a regional trade hub.

Investment Landscape: Recent Developments & figures

Recent years have witnessed a surge in UAE investment into Egypt. In early 2024, a $35 billion deal was signed for the development of Ras El Hekma, representing one of the largest foreign investments in Egypt’s history. This project alone is expected to generate significant economic activity and employment opportunities.

Here’s a breakdown of key investment trends:

1. Direct Investment: UAE direct investment in Egypt has increased by over 20% year-on-year for the past three years.
2. Joint Ventures: Numerous joint ventures are being established in sectors like manufacturing, agriculture, and technology.
3. Sovereign wealth Fund Collaboration: The UAE’s sovereign wealth funds are actively partnering with Egyptian entities to invest in strategic projects.
4. Focus on SMEs: Initiatives are underway to support small and medium-sized enterprises (SMEs) in Egypt through funding and mentorship programs.

Benefits for Egypt: Economic Diversification & Growth

The UAE-Egypt economic partnership offers substantial benefits for Egypt:

Foreign Exchange Reserves: Inflows of UAE investment bolster Egypt’s foreign exchange reserves, strengthening its financial stability.

Job Creation: Large-scale projects like Ras El Hekma are creating thousands of jobs across various sectors.

Infrastructure Modernization: Investment in infrastructure is improving Egypt’s competitiveness and attracting further foreign investment.

Technology Transfer: Collaboration with UAE companies is facilitating the transfer of technology and expertise to Egypt.

Tourism Revenue: Increased tourism from the UAE and investment in tourism infrastructure are boosting Egypt’s tourism revenue.

Benefits for the UAE: Expanding Regional Influence & Investment Opportunities

The partnership also provides significant advantages for the UAE:

Access to a Large Market: Egypt’s large population and strategic location provide the UAE with access to a significant consumer market.

Investment Diversification: investing in Egypt diversifies the UAE’s investment portfolio and reduces its reliance on oil revenue.

regional Stability: Strengthening economic ties with egypt contributes to regional stability and security.

Strategic Partnerships: Collaboration on infrastructure and energy projects enhances the UAE’s regional influence.

New Business Opportunities: The partnership creates new business opportunities for UAE companies in various sectors.

Navigating the Business Habitat: Practical Tips

For businesses looking to engage in the UAE-Egypt economic partnership, consider these practical tips:

Due Diligence: Conduct thorough due diligence on potential partners and projects.

Legal Framework: Understand the legal and regulatory frameworks in both countries.

Cultural Sensitivity: Be mindful of cultural differences and business etiquette.

Local Partnerships: Consider partnering with local companies to navigate the business environment.

*