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Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development (ADFD), said on Wednesday that it is extending a 22 million UAE dirhams ($6 million) loan to Egypt-based Jenaan Pipes & Irrigation Systems to finance the procurement of high-density polyethylene (HDPE) from UAE-based petrochemical company Borouge.
ADEX said in a statement Jenaan Pipes & Irrigation Systems’ (JPIS) polyethylene extrusion plant will manufacture irrigation systems for an integrated beet sugar refinery, one of the world’s largest, with an annual production capacity of 900,000 tonnes, reducing Egypt’s reliance on sugar imports by 80 per cent.
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 76,000 hectares of desert land to produce 2.5 million tonnes of sugar beetroot annually.
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 statement noted.
Saif Al Suwaidi, Director General of ADFD and Chairman of the Exports Executive Committee of ADEX, said the deal “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.”
Mohammed Al Falasi, President, Investments and Business Group, Jenaan Investments, said the loan agreement is a crucial one for Jenaan.
“As a member of Abu Dhabi Food Security Alliance, we are determined to make a significant contribution to the cause in the region,” he said.
Khalfan AlMuhairi, Senior Vice President, Middle East and Africa Exports at Borouge said the 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.”
Saeed Al Dhaheri, Acting Director General of ADEX, said the 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.
ADEX provides direct financing and guarantees to overseas buyers from the public and private sectors seeking to import goods and services from UAE companies.
(Writing by Syed Ameen Kader; Editing by Anoop Menon)
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