Egypt to Receive $100 Million Annual Wheat Supply from UAE

Two leading Abu Dhabi businesses have struck a deal to supply wheat to Egypt for the next five years, in a partnership that is expected to significantly boost the country’s food security and economy.

Al Dahra, a global agricultural business, and the Abu Dhabi Exports Office (ADEX) have partnered to supply wheat to Egypt for five years in a deal worth $100m per year, starting this year.

Commenting on the deal, the Egyptian minister for supply and internal trade, Ali Al Moselhi, said: “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.”

He continued: “We’re glad to partner with Al Dahra and ADEX, who are committed to our objectives. The low-cost financing package from ADEX helps us procure high quality wheat at the lowest financing cost available, with comfortable payment terms. This is a successful milestone in our mission to ensure food security to the Egyptian people. All three parties have been working hard over the past few months to bring this to fruition.”

Al Dahra already farms more than 28,000 hectares in Egypt, and is the largest private sector producer of wheat and corn in the country. It also produces onions, sugar beet, sesame, citrus, sorghum as well as forage for livestock.

Its global output of grains and oilseeds stands at approximately 600,000 tonnes.

Al Dahra group CEO, Arnoud van den Berg, added: “This agreement highlights our commitment to food security in the countries we operate in and complements our efforts from our farms in Egypt.”

He added: “Over the past three years, our farms in Egypt have supplied over 180,000 tonnes of wheat at the prevailing local market price, making us the largest local private sector supplier of Egyptian wheat to the General Authority for Supply Commodities.”

According to Abu Dhabi Fund for Development director general and chairman of the Exports Executive Committee of the Abu Dhabi Exports Office, Mohamed Saif Al Suwaidi, the deal will help “UAE businesses expand their global exports.”