Back to the complete issue
Tuesday, 23 January 2018

UAE’s Al Ghurair to invest USD 1 bn in sugar agriculture project

INVESTMENT WATCH- UAE’s Al Ghurair Group will invest USD 1 bn in a massive sugar cultivation and processing project, which some are already calling the largest foreign direct investment in Egypt since the EGP float. The project will see the company develop 181k feddans of reclaimed desert land west of Minya to grow 1 mn tonnes of beets per year, Investment Minister Sahar Nasr announced in a press conference on Monday. The company will also develop a USD 400 mn sugar production facility, she added, according to Al Masry Al Youm. The project is expected to cover 80% of Egypt’s sugar supply deficit, which runs between 25-30%, said Agriculture Minister Abdel Moneim El Banna. The project is expected to be completed in four years.

Meeting the demands of our collective sweet tooth appears to have become a top economic priority for the government, which on Sunday approved raising the price it pays local farmers for sugarcane to EGP 720 per tonne, up from EGP 700 per tonne. The new price will be applied retroactively to all sales to the government so far this season, Supply Minister Ali El Moselhy announced. The government has purchased 1.2 mn tonnes of sugarcane from farmers during the current harvest season, which runs from January until May. Egypt is forecast to produce around 1 mn tonnes of sugar from sugarcane, in addition to 1.3 mn tonnes from sugar beets, Reuters reports. Domestic consumption stands at around 3 mn tonnes each year.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.