Al Dahra to potentially acquire 500K feddans in Egypt

CAIRO - 19 October 2023: Al Dahra is currently in talks to acquire additional agricultural land in Egypt, according to Reuters citing sources familiar with the matter. The potential deal holds the promise of reducing Cairo's reliance on imported staple crops, but it also raises concerns regarding water usage in the region.

One of the sources indicated that the deal could encompass the acquisition of 500,000 feddans potentially executed in phases through either a purchase or a long-term lease agreement.

The second source suggested a slightly smaller quantity of land, around half of the previously mentioned figure.

While the exact status of the negotiations remains undisclosed, the investment could involve hundreds of millions of dollars, which would be instrumental in reclaiming desert areas for agricultural purposes and cultivating essential crops like wheat and corn.

Earlier in August, Egypt had signed an agreement worth $500 million, with the Emirati Al Dhahira Company, an international agricultural firm based in Abu Dhabi. The deal established a partnership between the two entities, with the aim of supplying Egypt with wheat over a period of five years, commencing from 2023.

The agreement is set to address Egypt's need for high-quality imported wheat, with an annual value of $100 million and a total value of up to $500 million.