Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development (ADFD), has signed an AED22 million ($6 million) loan agreement with top Emirati company Jenaan Pipes & Irrigation Systems based in Egypt.
The funds will enable the company to import raw material from Borouge, a leading petrochemicals company, to manufacture and supply irrigation systems to one of the world’s largest refineries situated in Egypt.
Additionally, the amount will help Jenaan to produce irrigation systems that will contribute to building the world’s biggest sugar refinery in the country, said the company in a statement.
The projects will not just lead to growth and expansion of the two Emirati companies, but they will also bolster Egypt’s food security.
The polyethylene extrusion plant provides Jenaan with a new strategic manufacturing foothold in Egypt to expand across the Mena region, while greatly reducing shipping and logistics costs, it stated.
The irrigation system will support a new beet farm and the refinery that will produce 900,000 tonnes of sugar annually, reducing Egypt’s reliance on sugar imports by 80 per cent it added.
Commenting on the deal, Mohamed Saif Al Suwaidi, the ADFD Director General, said: "The accord exemplifies the vision behind the formation of ADEX as a strategic financing partner of national exporters so they can expand their operations abroad."
"That, in turn, will help the UAE to expand its export economy, a critical component of our national economic diversification strategy. As for the current agreement, it not only delivers economic impact for the two UAE companies, but it provides significant benefits for the Egyptian economy and food security needs," he added.
He added that the transaction served as a model for other national firms that can leverage ADEX as a strategic partner to drive international business development.
Mohammed Al Falasi, President, Investments and Business Group, Jenaan Investments, said: "As a member of Abu Dhabi Food Security Alliance, we are determined to make a significant contribution to the cause in the region. From this perspective, this agreement is a crucial one for Jenaan."
Jenaan Pipes & Irrigation Systems (JPIS) will produce polyethylene pipes ranging from 32mm to 600mm in diameter for more than 700 pivot systems. The water will be drawn from wells drilled into the Nubian aquifer to irrigate land to produce 2.5 million tonnes of sugar beetroot annually.
The amount will be used to fund Borouge’s export of high-density polyethylene for the new Jenaan irrigation system, which will cover a 76,000-hectare reclamation and cultivation project on desert land, noted Al Falasi.
Khalfan AlMuhairi, Senior VP (Middle East and Africa) Exports at Borouge said: "This partnership with ADEX is a major step towards unlocking further export opportunities for Borouge, to supply local and global partners with our made-in-the-UAE polymers and to promote our innovative solutions to converters."
"We ensure collaboration with worldwide partners across the value chain to fulfil their demands and to introduce new solutions for their production requirements that meet the qualified standards," added AlMuhairi.-TradeArabia News Service
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