Abu Dhabi Exports Office (Adex), the export-financing arm of Abu Dhabi Fund for Development (ADFD), has signed a loan agreement with the Egypt-based Emirati firm Jenaan Pipes & Irrigation Systems SAE to disburse a credit facility of $6m.
Jenaan will use the funds to build a polyethylene extrusion plant in Egypt that will manufacture and supply irrigation systems to one of the world’s largest sugar refineries, which is to be built in Egypt.
The sugar refinery will cover 76,000 hectares of reclaimed desert land that is being prepared for cultivation.
The loan will also enable the company to import high-density polyethylene as a raw material from Abu Dhabi petrochemicals company Borouge for manufacturing products at its new Egypt plant.
“The polyethylene extrusion plant provides Jenaan with a new strategic manufacturing foothold in Egypt to expand across the [Middle East and North Africa] region, while greatly reducing shipping and logistics costs,” ADFD said in a press release on 17 February.
The irrigation systems produced by Jenaan will support a new beet farm and the refinery that will produce 900,000 tonnes a year (t/y) of sugar, reducing Egypt’s reliance on sugar imports by 80 per cent.
Jenaan 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 t/y of sugar beet.
Adex was established in 2019 by ADFD with a mandate to drive the diversification and growth of the UAE export economy.
“Adex provides direct financing and guarantees to overseas buyers from the public and private sectors seeking to import goods and services from UAE companies,” ADFD said in the press release.
“Its funding and guarantees are designed to support national businesses across the UAE in all non-crude oil sectors.”
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.