The UAE is to fund the construction of 25 wheat silos in Egypt, as part of a $4.9bn aid package to the North African state.

The total capacity of the facilities will be 1.5 million tonnes and the project is being initiated to attempt to store the vast majority of Egyptian wheat that is lost each year. Estimates state that 1.6 million tonnes of wheat, worth $500m, is lost every year.  

News reports in Egypt have stated that the contracts to build two silos, in Amiriya and Damietta, have already been awarded to local contractors. More are expected to be awarded shortly as aid is ramped up.

The silos represent one of the largest industrial projects in the past three years in Egypt. There are currently no industrial schemes at the design or main contract bid stages in Egypt and a total of $789m are at the execution phase, according to regional projects tracker MEED Projects.

Prior to 2011, there were several large projects planned across several heavy industrial sectors including steel and manufacturing. However, almost all were cancelled in the wake of the Arab uprising that ousted former president Hosni Mubarak in 2011.

Several GCC states, including Saudi Arabia and the UAE, are ploughing money into Egypt in an attempt to kick-start its economy after three years of stagnation brought about by Mubarak’s departure.