Egypt, UAE join forces to establish $3bln logistics zone

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Egypt - Mostafa Madbouly, Egypt’s Prime Minister, witnessed the signing of a memorandum of understanding (MoU) between the governments of Egypt and the UAE in New Alamein City.

The two countries inked a deal to establish a new logistics zone for trading in the Mediterranean region by pumping investments that may reach $3 billion, subject to increase.

Egypt and the UAE plan to leverage the integrated system in the Fujairah Petroleum Zone and implement it in the Hamra Petroleum Port on the Mediterranean coast.

The joint agreement aligns with the Egyptian Ministry of Petroleum and Mineral Resources' strategy to maximise Egypt's role as a regional centre for trading crude oil and petroleum products. It also aims to exploit the infrastructure and facilities of ports to receive and trade crude oil and petroleum products.

The project covers supplying petroleum products to the local market through the existing partnerships of the Fujairah Company with global suppliers from oil and gas companies, by providing a competitive advantage to the Egyptian General Petroleum Corporation.

Meanwhile, a joint working team was formed between the Egyptian and Emirati sides to follow up on the implementation of the agreement’s provisions and to overcome any obstacles.

Last July, Dragon Oil Company deployed AI technology to develop the Morgan and Badri fields in Egypt.