Abu Dhabi Exports Office (ADEX), the export-financing arm of the Abu Dhabi Fund for Development (ADFD), has signed an agreement with the Egyptian Ministry of International Cooperation, the Ministry of Finance, and the General Authority for Supply Commodities.
The agreement between ADEX & Egyptian Ministry entails a revolving financing program valued at $100 million, with annual renewals, planned over a 5-year term, ultimately reaching a total of $500 million. This initiative aims to facilitate the provision of wheat and essential commodities to the General Authority for Supply Commodities through Al Dahra Agriculture, an Emirati company.
The agreement was signed by Mr. Mohamed Saif Al Suwaidi, the Director General of ADFD and Chairman of the Exports Executive Committee at ADEX, and Dr. Rania Al Mashat, Minister of International Cooperation, who signed the framework agreement, in the presence of Dr. Mohamed Moait, Minister of Finance.
Mr. Ahmed Youssef Mansour, Vice President of the General Authority for Supply Commodities, completed the proceedings by signing the financing agreement.
Mr. Al Suwaidi, emphasized that the agreement exemplified the exceptional relations between the UAE and Egypt, showcasing the commitment of both nations’ leadership to mutual growth and development across various sectors. The agreement further demonstrates the efforts of ADFD to maintain strategic cooperation with the Egyptian government, ultimately facilitating an increase in trade exchange to foster economic benefits for both countries.
“The collaboration among the Abu Dhabi Exports Office, the General Authority for Supply Commodities, and Al Dahra will play a pivotal role in fortifying the strategic reserves of essential agricultural commodities, thereby ensuring the food security of the Egyptian market. Through this agreement, ADEX is committed to facilitating credit that will further bolster the export landscape.”
Dr. Rania Al Mashat elucidated that the new agreement signifies the profoundness of the strategic ties between Egypt and the UAE. The two nations are committed to augmenting economic integration and advancing joint development endeavors.
Dr. Al-Mashat further clarified that the agreement’s revolving financing mechanism aims to fulfill the local wheat market’s requirements in line with the measures adopted by the Egyptian government to bolster food security through soft development funds.
Dr. Al-Mashat added that upcoming discussions will focus on exploring further areas of cooperation aligned with Egypt’s developmental priorities and the realization of Egypt’s Vision 2030.
“Al Dahra works towards sustainably feeding our growing world, and this agreement aligns with our purpose in one of the key markets in the region, Egypt. This agreement highlights our commitment to food security in the countries we operate in and complements our efforts from our farms in Egypt. Over the past 3 years, we have supplied over 180,000 tonnes of wheat at the prevailing local market price making us the largest local private sector local supplier of wheat to the General Authority for Supply Commodities (GASC),” said Mr. Arnoud van den Berg, Group CEO of Al Dahra.
Mr. Berg noted that Al Dahra already farms 28,000 hectares of land in Egypt that help sustain the country’s food security by producing staple crops. It is the largest private sector producer of wheat and corn in Egypt in addition to the production of onions, sugar beet, sesame, citrus, sorghum as well as forage for the livestock. Nearly 85 percent of all food produce outputs from Al Dahra’s Egyptian farms are supplied locally, helping reduce the import burden for the government. Globally, Al Dahra’s production output of grains and oilseeds output is approximately 600,000 metric tons.