ADEX signs Dhs22 million deal to finance strategic project in Egypt
The deal will help Jenaan to produce irrigation systems that will contribute to build the world’s biggest sugar refinery and the project will also bolster Egypt’s food security
The Abu Dhabi Exports Office (ADEX), the exportfinancing arm of Abu Dhabi Fund for Development (ADFD), on Wednesday signed a Dhs22 million ($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 growth and expansion of the two Emirati companies, but they will 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. 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.
Commenting on the agreement, Mohamed Saif Al Suwaidi, Director General of ADFD and Chairman of the Exports Executive Commitee 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. 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 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.”
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 export sat bo rouge .“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.”
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.
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”.
He said that the financing agreement would help Borouge to further expand its business, apart from enabling JPIS, the newly established UAE company in Egypt, to meet its working capital requirement. “Such a model of export financing by ADEX will benefit many more UAE companies and their overseas customers in the future.”.
The agreement is an integral part of ADEX’S core strategy to help national companies to expand their footprint and support the UAE’S economic diversification effort.
Abu Dhabi Exports Office was established in 2019 by ADFD with a mandate to drive 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. Its funding and guarantees are designed to support national businesses across the UAE in all non-crude oil sectors.