EGYPT: Abu Dhabi Exports Office signs USD 6 million deal to finance UAE’s Jenaan polyethylene pipe project in Egypt
Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development, on Wednesday (17 February 2021) signed a AED 22 million (USD 6 million) loan agreement with the Egypt-based Emirati firm Jenaan Pipes & Irrigation Systems SAE.
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. The projects will not just lead to the 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 foothold in Egypt to expand across the Middle East & Northern Africa (MENA) region, while greatly reducing shipping and logistics costs. The irrigation system will support a new beet farm and the refinery that will produce 900,000 tons of sugar annually, reducing Egypt’s reliance on sugar imports by 80 percent.
Commenting on the agreement, Mohamed Saif Al Suwaidi, Director-General of ADFD and Chairman of the Exports Executive Committee of ADEX, 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."
Mohammed Al Falasi, President, Investments and Business Group, Jenaan Investments LLC, 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." 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.
"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," said Khalfan AlMuhairi, Senior Vice President, Middle East and Africa Exports at Borouge.
Jenaan Pipes and Irrigation Systems (JPIS) will produce polyethylene pipes ranging from 32 mm to 600 mm 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 tons of sugar beetroot annually.
Saeed Al Dhaheri, Acting Director-General of ADEX, described the agreement as "a perfect example of how the export-financing entity can directly drive growth for UAE companies while expanding our national export economy".
Source: Daily “The Saudi Gazette”, Jeddah; 17 Feb 2021
(Syed Rashid Ali, Karachi, Pakistan)