UAE’s Al Dahra, Abu Dhabi fund sign $500 million deal to supply wheat to Egypt
By alexandreFinance
UAE’s Al Dahra, Abu Dhabi fund sign $500 million deal to supply wheat to Egypt
The United Arab Emirates (UAE) agricultural company, Al Dahra, has signed a $500 million deal with the Abu Dhabi Fund for Development to supply wheat to Egypt. This agreement will enhance Egypt’s food security and contribute to its efforts to become self-sufficient in wheat production.
With a population of over 100 million, Egypt is the largest consumer of wheat in the Middle East. However, due to limited arable land and water resources, the country relies heavily on imports to meet its domestic demand.
Boosting Wheat Production
Under the terms of the deal, Al Dahra will engage in wheat cultivation projects in Egyptian lands, aiming to boost the country’s wheat production. The UAE agricultural company will provide the necessary expertise, technology, and investment to develop these projects.
By increasing domestic wheat production, Egypt can reduce its reliance on imports and improve food security. It is estimated that the projects implemented through this agreement will produce around one million tons of wheat annually, helping Egypt move closer to self-sufficiency.
This partnership also aligns with the UAE’s Vision 2021, which aims to enhance food security in the country. By investing in agricultural projects overseas, the UAE is diversifying its food sources and reducing its dependence on imports.
Enhancing Food Security
The UAE’s investment in Egypt’s wheat production not only benefits both countries but also contributes to regional food security. The Middle East region heavily depends on wheat imports, making it vulnerable to fluctuations in international prices and supply disruptions.
By increasing local production, countries like Egypt can reduce their exposure to such risks and ensure a stable supply of affordable food for their populations. Strengthening agricultural ties between countries in the region promotes collaboration and contributes to long-term food security.
This deal between Al Dahra and the Abu Dhabi Fund for Development is just one example of the UAE’s efforts to support food security initiatives globally. The country has been investing in agricultural projects in several countries, including Serbia, Morocco, and Sudan, to secure its food supply and contribute to global food stability.
The $500 million deal between Al Dahra and the Abu Dhabi Fund for Development to supply wheat to Egypt is a significant step towards achieving food security in the country. By increasing domestic wheat production, Egypt can reduce its reliance on imports and ensure a stable supply of this essential commodity.
Moreover, this partnership highlights the UAE’s commitment to supporting food security not only within its borders but also in the wider region. By investing in agricultural projects overseas, the UAE is diversifying its food sources and contributing to long-term food stability globally.
