UAE agribusiness in talks to acquire land in Egypt: Report

UAE agribusiness in talks to acquire land in Egypt: Report

Image credit: Getty Images

Emirati agribusiness Al Dahra is in talks to acquire more agricultural land in Egypt, two sources with direct knowledge of the matter said, in a deal that could reduce Cairo’s dependence on imports of staple crops but also reignite water use concerns.

The sources did not say how close a deal might be, but the investment could potentially involve hundreds of millions of badly-needed dollars to reclaim desert and grow key crops such as wheat and corn.

Egypt leverages its agriculture industry

Al Dahra, half owned by Abu-Dhabi sovereign wealth fund ADQ, is in talks via its subsidiary Al Dahra Egypt with the Egyptian military’s National Service Projects Organisation (NSPO) to buy land in Toshka in southern Egypt, but is also considering other areas, the sources said, speaking on condition of anonymity.

One said a deal could involve the acquisition of 500,000 feddans (210,000 hectares) in phases, either through a purchase or long-term lease agreement. The second source indicated around half that quantity of land.

Egypt, a top importer of basic commodities, has been trying to reduce its import bill as it grapples with a foreign currency shortage that caused it to defer wheat payments.

Wheat imports are used to make heavily