UAE, Egypt activate five-year wheat supply agreement to secure grain buffer
The agreement is designed to provide Egypt with a reliable and sustained supply of imported wheat, a critical commodity for the country’s food-security system.
EGYPT – Al Dahra Agriculture Trading (ADAT) and Egypt’s General Authority for Supply Commodities (GASC) have signed a five-year wheat supply agreement worth US$500 million, moving a partnership first established in 2023 from framework into active operation.
The landmark deal transitions a broader strategic framework established between the two nations into an active operational arrangement aimed at boosting food security in one of the world’s largest wheat-importing markets.
Under the terms of the agreement, the Abu Dhabi Exports Office (ADEX) will provide the necessary financing structure, allocating approximately US$100 million annually to GASC over five years to procure high-quality imported milling wheat directly from Al Dahra.
ADAT is part of Al Dahra Holding, headquartered in Abu Dhabi, United Arab Emirates, and a global agribusiness focused on sustainable food and feed production.
The signing ceremony took place at the Cabinet of Ministers Headquarters in El Alamein and was attended by key leaders, including Dr Sherif Mohamed Farouk, Egypt’s Minister of Supply and Internal Trade, and Khadim Abdullah Al Darei, Co-Founder and Managing Director of Al Dahra.
The initiative is designed to establish a dependable long-term procurement buffer for Egypt, reducing the nation’s reliance on volatile short-term spot market transactions.
Securing stable grain streams remains a top national priority for Cairo, as imported wheat forms the backbone of the state’s massive subsidized bread program.
The competitive financing package provided by ADEX allows GASC to lock in essential agricultural imports while maintaining manageable payment terms amid global supply chain shifts.
Al Dahra, which operates extensive commercial farming infrastructure across more than 40 countries, brings substantial local experience to the agreement.
Having operated in Egypt since 2007, the company manages major agricultural projects in Toshka and East Oweinat and serves as the country’s largest private-sector supplier of locally produced wheat and corn.
Company representatives emphasized that this operational milestone reflects a joint commitment to building agricultural resilience and supporting global commodity access.
By supporting the reliable, sustainable supply of wheat from Al Dahra to Egypt, ADEX is helping strengthen trade between the United Arab Emirates and Egypt, while supporting UAE exports and expanding its presence in global markets.
In a recent report, the Foreign Agricultural Service of the US Department of Agriculture projected Egypt’s wheat imports for marketing year 2026-27 at 12.5 million tonnes, a 1.6% decrease from the previous year due to a forecasted increase in domestic production at 9.8 million tonnes.
Egypt, with a population of about 120 million, is perennially the world’s largest importer of wheat. Total consumption of wheat in 2026-27 is expected to reach 20.3 million tonnes.
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