EGYPT – UAE-based Arab Authority for Agricultural Investment and Development (AAAID) plans to invest US $100 million into Egypt’s agricultural and livestock production sectors over the next three years.

The announcement was made by the chairman of the AAAID, Mohammed Bin Obaid Al-Mazrooei, during the first Gulf-Egyptian Business Forum held in Cairo on November 22.

According to him, the primary objective of AAAID is to support Egypt in increasing agricultural productivity and achieving food security.

These investments will be directed towards the development of Egypt’s agricultural and livestock sectors, with a focus on sugar, oils, dairy, and grains, Al-Mazrooei added during an interview with Asharq Business.

AAAID’s total assets amount to approximately US$1.3 billion, its portfolio consists of 55 companies and projects, including 30 existing companies, 13 projects in various stages of completion, and 12 companies currently being established.

These companies and projects are spread across 12 Arab countries.

At the same forum, Jamal Al-Jarwan, Secretary General of the UAE International Investors Council (UAEIIC), highlighted that Emirati investments in Egypt have reached US$29 billion.

Al-Jarwan suggested that injecting dollar liquidity between US$10 and US$15 billion could significantly help close Egypt’s financing gap, which is estimated at US$17 billion through 2026.

He also stressed that Egypt’s decision to use local currencies in trade with its partners could expedite the resolution of the crisis.

“The UAE is keen to pump more investments into Egypt during the next five years, as it serves as a gateway to African and European markets,” Al-Jarwan disclosed.

The AAAID investments are spread across three companies including; Faiyum Sugar, in which the authority holds a 27 percent stake; the Arab Company for Production and Preservation of Crops, in which it holds an 82 percent stake; and the Middle East for Veterinary Vaccines Company (MEVAC), in which it holds a 5 percent stake.

These recent developments align with Egypt’s broader objective of attracting foreign investments, particularly from Gulf countries, to strengthen its declining US dollar reserves.

To achieve this goal, Egypt has been selling state-owned assets through its IPO program offering strategic investors stakes in 35 state-owned companies.

Furthermore, despite concerns about a potential exchange rate fluctuation in the Egyptian pound next year, the Saudi private sector has recently increased its investments in Egypt.

Moreover, Saudi Arabia is seeking to increase bilateral trade with Egypt to US$100 billion, said Second Vice Chairman of the Federation of Saudi Chambers, Fayez Al-Harbi during the forum.

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