Egypt has entered into a $500 million agreement with UAE-based agribusiness firm Al Dahra and the Abu Dhabi Exports Office (ADEX) to secure wheat supplies, as reported by Reuters.
Under the five-year deal, Egypt will receive imported milling wheat at competitive prices, with an annual value of $100 million.
The agreement includes a low-cost financing package from ADEX, enabling Egypt to procure high-quality wheat at the lowest financing cost and favorable payment terms. Al Dahra, which already supplies locally produced wheat through its Egyptian subsidiary, cultivates 28,000 hectares of land in Egypt.
This deal comes as Egypt aims to address the impact of increased grain prices on its economy following Russia's invasion of Ukraine.
Egypt has deferred payments for wheat purchases, but the majority of deferred payment shipments have been unloaded without disruption.
Despite Russia's withdrawal from the UN grain-export deal, Egypt intends to continue importing Ukrainian wheat.
The finance ministry estimates that Egypt will require 8.25 million tons of wheat in the current fiscal year. Additionally, Egypt has seen a record-high annual headline inflation rate of 36.5% in July, driven by a renewed increase in food prices, while core inflation dropped slightly to 40.7%.
