UAE, Pakistan ink key investment pacts on rail and marine projects at Davos summit

The UAE and Pakistan have signed a series of important investment agreements exceeding $3 billion at the Davos summit in Switzerland, focusing on collaboration in different fields such as railways, economic zones and infrastructure, reported Gulf News Business.

The countries have inked two Inter-Governmental Framework Agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a Dedicated Freight Corridor and Economic Zone near Karachi, as per Emirates news agency.

Pakistan’s Shahid Ashraf Tarar, Federal Minister of Communication, Railways and Maritime Affairs, and Sultan Ahmed bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation (PCFC), Government of Dubai, signed the pacts on Thursday.

Enduring partnership between the UAE and Pakistan

DP World, a Dubai-based multinational logistics company, is set to act on behalf of the Dubai government, and state-run Pakistan Railways and Port Qasim Authority is expected to act on behalf of the Pakistan government, for the development of the projects.

Tarar emphasised the enduring partnership between the UAE and Pakistan. The pacts represent a significant step in deepening economic relations between the two countries, indicating a commitment to collaborative development in the region.

Sultan Ahmed bin Sulayem, also the Chief Executive of DP World, expressed pride in contributing to Pakistan’s trading capabilities and underscored the country’s role as a growing market and important trade corridor to Central Asia.

MoUs usher in a new era of economic partnership

The latest investment agreements follow the signing of Memorandums of Understanding (MoU) in November between the UAE and Pakistan, pertaining to investment cooperation that can unlock “multi-billion dollars” in funding from the Gulf state.

The development had come in a bilateral meeting between the caretaker Prime Minister of Pakistan, Anwar ul Haq Kakar, and the President of the UAE, Sheikh Mohamed bin Zayed, during the former’s trip to the Middle East.

The Prime Minister termed the move as “a historic event” that is expected to lure a new era of Pak-UAE economic partnership.” The PMO had said the deals can unlock “multi-billion dollars of investment from the UAE into Pakistan” and help realise several initiatives.

During the discussions, PM Kakar expressed profound gratitude for the Emirates’ strong support to Pakistan in the economic domain. He also reiterated his nation’s full support to the UAE’s presidency for the recently concluded COP28 summit.