EXCLUSIVE UAE to build Red Sea port in Sudan in $6 billion investment package

A person stands reverse the fashionable port on the harbour in Port Sudan at Crimson Sea State February 24, 2014. REUTERS/Mohamed Nureldin Abdallah

CAIRO, June 20 (Reuters) – The United Arab Emirates will construct a brand new Crimson Sea port in Sudan as a part of a $6 billion funding bundle, DAL group chairman Osama Daoud Abdellatif, a associate within the deal, advised Reuters.

Abdellatif stated the bundle features a free commerce zone, a big agricultural undertaking and an imminent $300 million deposit to Sudan’s central financial institution, which might be the primary such deposit since an October army takeover.

Western donors suspended billions in help and funding to Sudan after the coup, plunging an financial system that was already struggling into additional turmoil and depriving the federal government of a lot wanted international foreign money.

Ibrahim advised Reuters on Wednesday {that a} memorandum of understanding had been signed with the UAE for a port and agricultural undertaking, however the particulars haven’t beforehand been reported.

The finance ministry didn’t instantly reply to a request for touch upon particulars of the deal.

The $4 billion port, a joint undertaking between DAL group and Abu Dhabi Ports, owned by Abu Dhabi’s holding firm ADQ, would have the ability to deal with every kind of commodities and compete with the nation’s primary nationwide port, Port Sudan, Abdellatif stated.

Situated about 200 km (124 miles) north of Port Sudan, it might additionally embrace a free commerce and industrial zone modelled after Dubai’s Jebel Ali, in addition to a small worldwide airport, he stated. The undertaking is in “superior phases,” with research and designs full, he stated.

Rumours of Gulf investments in Port Sudan, and in agricultural initiatives elsewhere within the nation, have previously stirred opposition and generally protests.

Port Sudan has lengthy been plagued with infrastructure challenges and was shut by a political blockade for six weeks late final 12 months, shedding enterprise from main worldwide shippers.

The UAE deal additionally consists of the $1.6 billion enlargement and improvement of an agricultural undertaking by Abu Dhabi conglomerate IHC and DAL Agriculture within the city of Abu Hamad in northern Sudan, Abdellatif stated.

Alfalfa, wheat, cotton, sesame, and different crops could be grown and processed on the 400,000 acres of leased land, he stated. A $450 million, 500 km (310 mile) toll highway connecting the undertaking to the port could be constructed as effectively, financed by the Abu Dhabi Fund for Growth.

Below the settlement, the Fund would additionally make a deposit of $300 million to the Central Financial institution of Sudan, Abdellatif stated.

Abdellatif stated the settlement was reached initially in July 2021, beneath a civilian-led transitional authorities.

Two sources from the previous cupboard, who requested to not be named, stated a special model of the deal had been reviewed final 12 months however in the end didn’t transfer to a vote resulting from reservations.

Two high-level present Sudanese officers advised Reuters the outlines of the brand new deal had been agreed between Sudanese chief Common Abdelfattah al-Burhan and UAE President Sheikh Mohamed bin Zayed throughout a current go to to the Gulf state.

A consultant for Abu Dhabi Ports stated the corporate had no remark, whereas representatives for ADQ, the Abu Dhabi Fund, IHC, and the Abu Dhabi and UAE governments didn’t instantly reply to requests.

“Ourselves and our companions within the UAE, we have now already invested in a financial institution, a resort, mining,” stated Abdellatif, whose conglomerate has additionally bid for management of certainly one of Sudan’s largest telecom corporations, Zain Sudan. learn extra

“The UAE needs a steady Sudan to allow them to do an increasing number of of those investments, however we aren’t ready for every part to be excellent,” he added.

After the army ousted Omar al-Bashir in 2019 following common protests, the UAE and Saudi Arabia pledged a mixed $3 billion in grants and in-kind help to Sudan, which army and civilian leaders say was not delivered in full.

Reporting by Nafisa Eltahir and Khalid Abdelaziz; Further reporting by Yousef Saba in Dubai, Enhancing by Aidan Lewis, William Maclean and Richard Pullin

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