Abu Dhabi, United Arab Emirates, – 27 March 2021: AD Ports Group today announced the signing of 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).
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, and 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.
The MoU builds on existing cooperation between the UAE and Kuwait. Under its terms, Maqta Gateway, AD Ports Group’s digital arm will develop the new virtual trade corridor based upon its Advanced Trade & Logistics Platform (ATLP), under the supervision of the Department of Economic Development- Abu Dhabi, establishing 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 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.
digital integration also has significant safety and security benefits, 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.
Ambassador Dr. Matar Hamed Al Neyadir of the United Arab Emirates to Kuwait, said: “The UAE and Kuwait have a vast cooperation opportunity as they both have exceptionally promising markets. We are confident that the cooperation between AD Ports Group and Kuwait General Administration of Customs to establish the first virtual trade corridor between The United Arab Emirates and Kuwait, will enhance trade exchange between the two countries, and will support their efforts in achieving digital transformation goals, streamlining shipping procedures to reduce transportation and shipping costs, as well as expanding economic cooperation, facilitating the development of the supply chains, and encouraging business investment, by building on the best digital solutions and logistics services provided by the virtual trade corridor.”
H.E. Rashid Abdul Karim Al Balooshi, Undersecretary, Abu Dhabi Department of Economic Development, Chairman of the Higher Committee of Logistics Development, said: “This MoU sets the stage for deeper cooperation with our trade partners. By establishing this virtual trade corridor, we will generate positive impact on the UAE and Kuwaiti economies and support the wider efforts of our wise leadership to promote trade and fraternal bonds between our nations, establishing Abu Dhabi as a leading trade and logistics hub in the region.”
Suleiman AbdulAziz Al-Fahd, Director of the General Administration of Customs of Kuwait, said: “We are pleased to sign the MoU with AD Ports Group, which comes within the framework of our strategic plan to develop the capabilities of the customs ecosystem in Kuwait with the aim of facilitating business, reducing manual reviews for completion of administrative and customs procedures, and facilitating the trade community in both countries through an agreement that benefits from the advantages of Global Logistics Passport.”
"The signing of this agreement comes as a result to cooperation efforts and mutual visits between the logistic committees in the two countries, hoping that it will provide high-level facilities for both customs authorities and business partners.”
Dr. Noura Al Dhaheri, CEO of Maqta Gateway, Head of the Digital Cluster, AD Ports Group, 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.
“Since its founding, Maqta Gateway has committed its efforts towards advancing the digitalisation of the region’s trade, logistics, and industrial landscape through the implementation of novel solutions that are transforming industry.
“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 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.
About Department of Economic Development – Abu Dhabi (DEDAD):
Established according to Law No. (7) of 2018, Abu Dhabi Department of Economic Development (ADDED) regulates the business sector in the emirate of Abu Dhabi and leads economic initiatives to achieve a knowledge-based, diversified, and sustainable economy.
ADDED proposes policies and best practices based on the latest research and statistics from local, regional, and global indicators to drive growth and diversity across various sectors in line with the Abu Dhabi Economic Vision 2030.
ADDED also prepares strategic programs by adopting the best economic and administrative practices, employing the best human resources, and using the latest global technology and expertise. It advances the economic interests of Abu Dhabi by cooperating with regional and international partners, creating innovative synergies built on transparency, innovation, and knowledge exchange. All this benefits the business ecosystem and makes Abu Dhabi’s investment globally attractive. A competitive investment climate is further enhanced by promoting the emirate’s business-friendly strengths worldwide.
Kuwait General Administration of Customs:
The General Administration of Customs was established in 1899 during the reign of the late Sheikh Mubarak Al Sabah and is considered the first governmental authority established in Kuwait. The General Administration of Customs is the authority that is responsible for all the works related to customs and executes all the decrees issued by the country’s ministries and governmental institutions. It is also considered frontline defense that protects the country’s security and economy from criminals and outlaws. Besides the major responsibilities that the General Administration of Customs is handling, it executes all the decrees and regulations issued by official authorities, since it is considered an executive authority. As soon as the administration receives the decrees and regulations, it issues the necessary circulars to the documentation administrations to execute such decrees according to the followed system.
About AD Ports Group:
Established in 2006, AD Ports Group today serves as the region’s premier facilitator of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade.
Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones within KIZAD and ZonesCorp, the largest integrated trade, logistics, and industrial business grouping in the Middle East.
AD Ports Group is rated A+ by S&P and A+’ Affirmed – Outlook Stable by Fitch.
For more information, please visit: adportsgroup.com
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About Maqta Gateway:
Established in 2016, Maqta Gateway - a wholly owned subsidiary of AD Ports Group - is a facilitator of advanced, innovative solutions for trade and logistics sectors, designed to enable integrated digital global trade. Maqta Gateway supports AD Ports Group in its strategy of digitalisation and is spearheading the digital mandate of Abu Dhabi’s maritime, trade and government services.
As a founding partner of the Abu Dhabi-led HOPE Consortium, Maqta Gateway is leveraging its digital technology and supply-chain expertise to facilitate the emirate’s drive to deliver large quantities of COVID-19 vaccines around the world.
For more information, please visit: https://www.maqta.ae/
Also, please contact:
Abdelrahman Al Echla
External Communications Manager – AD Ports Group