Dubai conglomerate ploughs $333m into Egypt sugar factory project
Subsidiary Canal Sugar Co. will hold a 33% stake in the project, which will built around 265km south of Cairo.
This stake will increase rising to 51% when it is completed in three years’ time, according to the Egyptian government.
Egyptian companies, including Al Ahly Capital Holding, will hold the remaining interest.
The plant will cost $450 million in total and will produce around one million tonnes of sugar each year – a volume that would cover about 80% of Egypt’s sugar production gap.
The deal has been touted as Egypt’s biggest non-oil foreign direct investment deal since it floated the pound in November 2016.
“Sugar is a priority sector, and this deal is the result of close cooperation across ministries,” finance minister Sahar Nasr said, adding it would receive a three-year a tax break because of its location in in Upper Egypt.
Al Ghurair Group’s food interests span ingredients, packaging and finished products, with its Jenan brand of flour, pasta, oats, eggs and noodles popular in the Gulf, Africa and Asia.
