The signing took place in Kuwait following a visit by DED’s Logistics Committee, under the auspices of His Excellency Abdulwahab Al-Rushaid, Minister of Finance and Minister of State for Economic Affairs and Investments – Kuwait and in presence of His Excellency Dr. Matar Hamed Al Neyadi, Ambassador of the United Arab Emirates to Kuwait. The agreement was signed by Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, and Suleiman AbdulAziz Al-Fahd, Director of the General Administration of Customs – Kuwait
Abu Dhabi’s AD Ports Group has signed a Memorandum of Understanding (MoU) with the Kuwait General Administration of Customs to establish a new virtual trade corridor between the UAE and Kuwait, under the supervision of Department of Economic Development – Abu Dhabi (ADDED).
Building on existing cooperation between the UAE and Kuwait, the MOU provides for Maqta Gateway, AD Ports Group’s digital arm, to develop the new virtual trade corridor based upon its Advanced Trade & Logistics Platform (ATLP). It will establish new policies, procedures and systems integrations to support a virtual trade corridor that will further simplify and facilitate cross-border trade.
With the establishment of the new virtual trade corridor and implementation of more integrated solutions, 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. The MoU will also provide for accelerated procedures for expediting shipments of perishable goods, reducing dwell time at borders.
The digital integration is expected to have significant safety and security benefits as well, improving visibility for authorities over any possible risks associated with goods that move between the two nations, as well as reducing the inspection rate and simplifying procedures for authorisation holders.
Dr. Noura Al Dhaheri, CEO of Maqta Gateway, said: “Building upon the bilateral trade ties that have long existed between Kuwait and the UAE, the newly announced virtual trade corridor aims to realise a host of enhanced policies, procedures, and system integrations that will accelerate cross-border movements of goods traded between the two countries. By digitalising clearance and shipment delivery through this virtual trade corridor, we will be able to deliver real benefits for importers and exporters in Kuwait and the UAE, while simultaneously enhancing security and realising new levels of efficiency.”
The long-standing bilateral trade ties enjoyed between the two GCC countries in recent years has seen the rapid growth of several key commodity markets. In 2021, the UAE imported more than two million tonnes of petroleum oil products valued at an estimated AED 3.79 billion from Kuwait, as well as 143,408 tonnes of petroleum coke and tar valued at AED 213 million.
During the same period, the State of Kuwait imported over 18.94 million tonnes of pebbles and stones for use in construction projects from Abu Dhabi, valued at AED 650 million. It also imported 16 and 18 tonnes of gold and jewellery that were valued at AED 3.16 billion and AED 2.8 billion, respectively.
Other notable goods exchanged between the two countries include electronics, medicines, food products, copper scraps, and ethylene polymers.
