Egypt has signed a USD 500 million (EGP 15.4 billion) deal with the Abu Dhabi Exports Office (ADEX) to fund wheat imports for five years, according to a statement by the State Information Service on Tuesday, 15 August.
The deal was secured following talks with the UAE in July. The funds will be used to pay for imports from both Abu-Dhabi based agricultural company Al Dahra and ADEX.
The full amount will be dispersed in five installments of USD 100 million (EGP 3 billion) each over a period of five years.
The financing package offered to Egypt by ADEX provides high quality products at a low price and with a reasonable payment plan, according to Minister of Supply and Internal Trade Ali Al-Moselhy.
“The new agreement reflects the depth of strategic relations between Egypt and the UAE and their keenness on enhancing economic integration and pushing forward joint development plans,” Minister of International Cooperation Rania Al-Mashat said.
Al-Mashat signed the framework deal, while Minister of Finance Mohamed Maait signed the guarantee deal. The signing ceremony took place at the Ministry of International Cooperation in the New Administrative Capital.
Egypt is one of the world’s foremost importers of wheat, and its primary suppliers were Russia and Ukraine. This deal with the UAE follows the war in Ukraine and several consequent devaluations of the Egyptian pound against the dollar. In July, Egypt faced record inflation rates of 38.2 percent.
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