Egypt to import wheat from UAE’s Al Dahra in a $500M agreement

Egypt has signed a $500 million agreement to purchase wheat from Al-Dahra, a global agribusiness leader based in Abu Dhabi, in partnership with Abu Dhabi Exports Office (ADEX), to supply Egypt with wheat in a 5-year deal starting 2023.

Through the 5-year agreement, Egypt will import milling wheat worth $100 million per year.

The signing event was held at the headquarters of the Ministry of International Cooperation in the New Administrative Capital. International cooperation minister, Rania Al-Mashat highlighted the development cooperation relations with the Abu Dhabi Fund for Development, which began in 1971 and resulted in the financing of more than 20 projects worth AED 4 billion in various priority sectors such as: water, health, housing, transportation and agricultural development.

In a Monday meeting with Prime Minister Mostafa Madbouly, Ali Al Moselhi, Egypt’s minister for supply and internal trade announced that Egypt currently has enough wheat in reserve to last 4.7 months.

 “This agreement solidifies our commitment to establishing long term supply deals with key producers across the world, aiming to provide the people of Egypt with access to essential food supplies and strengthen our food grain supply chain buffer to withstand any unexpected shocks in the global markets,” Ali Al Moselhi, the Egyptian minister for supply and internal trade, said.

Al Moselhi assured that Egypt has plans to buy more wheat when supply stabilizes in the global market, reviewing the global price expectations in light of the Russian-Ukrainian crisis. The minister stressed that Egypt has reassuring reserves, and the necessary measures are being taken to provide sufficient stock in the future.

Egypt is the world’s largest wheat importer and was impacted by the conflict in Ukraine which disrupted global food markets and triggered a foreign currency shortage in Egypt.

The Ministry of International Cooperation has been exerting efforts in light of Egypt’s development vision to stimulate food security.

Egypt signed a number of development financing agreements over the past period such as the signing of a concessional development financing agreement of $500 million from the World Bank Group, to enhance the resilience of the agricultural sector in Egypt and support food security efforts. In addition to this, an agreement worth $271 million was signed with the AfDB as part of its Program to Support Food Security and Economic Resilience in Egypt.

The European Union’s support program for food security in Egypt was also launched through a grant of €100 million to enhance food security efforts and reduce the negative effects of global challenges.

Tags: Ukraine, Egypt, импорт, wheat, Al-Dahra, Abu Dhabi Exports Office