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  • Tuesday, 15 August 2023

The 1st Cooperation of its Kind with the Abu Dhabi Exports Office | Egypt and the UAE Sign a Financing Program Agreement to Finance Wheat Imports at a Value of $500 Million for 5 years

● H.E. Dr. Rania A. Al-Mashat: The new agreement reflects the depth of Egyptian-Emirati relations and stimulates food security efforts through international partnerships

● H.E. Dr. Mohamed Maait: We are deepening the cooperation with the Emirates to support the path to economic recovery.

● H.E. Dr. Ali El-Moselhi: The new agreement enhances the existing cooperation with the UAE side in the field of food security.

● Director General of the Abu Dhabi Fund for Development: The agreement reflects the keenness of the two countries to develop their relations in various fields and to enhance the volume of trade exchange.

In light of the close relations between the Arab Republic of Egypt and the United Arab Emirates and to enhance development efforts and government measures to support food security, the Ministries of International Cooperation, Finance, and the General Authority for Supply Commodities signed with the Abu Dhabi Exports Office (ADEX), affiliated to the Abu Dhabi Fund for Development, a financing program agreement. The roundabout is worth $100 million for a period of five years, with a total of $500 million, with the aim of financing wheat imports. The agreement is the first of its kind with the ADEX of the Abu Dhabi Fund for Development.

The signing events were held at the headquarters of the Ministry of International Cooperation in the New Administrative Capital, where the Ministry of International Cooperation, H.E. Dr. Rania Al-Mashat, signed the framework agreement, the Minister of Finance, H.E. Dr. Mohamed Maait, signed the financing guarantee agreement, and H.E. Ahmed Youssef Mansour, Vice President of the General Authority for Supply Commodities signed the financing agreement. H.E. Mohamed Saif Al Suwaidi, the Director General of the Abu Dhabi Fund for Development and Chairman of the Executive Committee of the Abu Dhabi Office for Exports, signed the financing agreements on behalf of the Emirati side, in the presence of senior officials from the Egyptian and Emirati sides.

Al-Mashat explained that the new agreement reflects the depth of the strategic relations between Egypt and the UAE, and the keenness to enhance economic integration and advance joint development efforts, explaining that through revolving financing, the needs of the local market for wheat will be met in light of the procedures that are being taken by the Egyptian state to enhance food security through soft development funds, pointing to cooperation, continuous coordination and technical cooperation between the ministries of international cooperation, finance and supply to complete the agreement.

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 that benefit the citizen, especially in the sectors of water, health, housing, transportation and agricultural development. The UAE supported the inauguration of 25 silos in 17 governorates to increase the storage capacity of wheat by 1.5 million tons, adding that the coming period will witness discussions on more future areas of cooperation in light of Egypt's development priorities and the implementation of Egypt's Vision 2030.

Al-Mashat continued: “Food security is one of the vital issues that represent national security for the Arab Republic of Egypt. In this regard, the Ministry of International Cooperation has worked through strategic relations with multilateral and bilateral development partners to enhance and push these efforts through a number of programs and financing agreements. Among which is the agreement recently signed with the World Bank Group (WBG), the African Development Bank (AfDB) and the International Islamic Trade Finance Corporation (ITFC). In addition to that, many programs are being implemented to support agricultural and rural development and support small farmers in cooperation with the United Nations.

For his part, Minister of Finance, H.E. Dr. Mohamed Maait, noted the Government of Egypt’s commitment to enhance cooperation with regional and international development partners. In order to accelerate sustainable development, especially the backdrop of geopolitical challenges and the disruption to supply chains, more cooperation is required to provide the necessary development finance. This is especially the case when realizing the magnitude of external challenges, and the financing burdens they impose to meet the basic needs of citizens, especially in light of the high cost of financing from international markets.

H.E. referred to the momentum in the historical relations between Egypt and the UAE, which enriches the areas of cooperation and elevates them to broader horizons in facing global challenges, contributes to deepening development partnerships, and pushes efforts to stimulate investments between both countries, explaining the Egyptian side's keenness to strengthen cooperation with the UAE, exchanging experiences at the economic level, and in the field of developing financial policies, optimal use of artificial intelligence in the professional management of the state’s public finances, raising the efficiency of public spending and achieving financial, economic and development goals in a way that enhances the path of economic recovery from the current challenges.

Moreover, H.E. added that we look forward to consolidating development cooperation with the Abu Dhabi Fund for Development to support development in Egypt, towards economic and social development, providing a decent life for citizens, effectively contributing to improving their standard of living, and upgrading the services provided to them.

Minister of Supply and Internal Trade, H.E. Dr. Ali El-Moselhi, said “Today's agreement builds on the existing relations and partnership between the UAE and the Ministry’s side to implement a project to increase storage capacities for wheat by about 1.5 million tons through the implementation of 25 silos, and today we are witnessing new cooperation in the field of financing wheat imports for stimulating food security efforts undertaken by the country, which reflects the depth and strength of the joint relations between the two countries,” thanking the UAE side for the continued fruitful cooperation.

On this occasion, H.E. Mohamed Saif Al Suwaidi, Director General of the Abu Dhabi Fund for Development, said: “This agreement represents a pioneering model for the distinguished relations between the UAE and Egypt, which reflects the keenness of the leadership of the two brotherly countries to develop and develop them in various fields. The agreement comes in light of the efforts made by the Abu Dhabi Fund for Development to sustain strategic cooperation with the Egyptian government, noting that the agreement contributes to expanding the volume of trade exchange to achieve economic benefit for both countries.”

H.E. stated, "The partnership between the Abu Dhabi Office for Exports, the General Authority for Supply Commodities and Al Dahra Agricultural Company will contribute to strengthening the strategic stock of grain and providing sufficient quantities of agricultural crops to meet the Egyptian market's need for these basic commodities. The Abu Dhabi Office for Exports will work through this agreement to provide credit facilities that enhance the presence of UAE export companies in regional and global markets, which contributes to diversifying the UAE’s economy and increasing its growth opportunities.”

It is worth noting that the Ministry of International Cooperation worked in light of Egypt's development vision to stimulate food security and achieve the SDGs through a number of development financing agreements over the past period, including the signing of a concessional development financing agreement of $500 million from the WBG, to enhance the resilience of the agricultural sector in Egypt and support food security efforts, in addition to an agreement worth $271 million with the AfDB to support the "Program to Support Food Security and Economic Resilience in Egypt". Additionally, the European Union's support program for food security in Egypt was launched through a grant of €100 million to enhance food security efforts and reduce the negative effects of global challenges.