Al Dahra announces US$30M investment to boost agricultural sector in Egypt
EGYPT – Al Dahra Agriculture Egypt, a subsidiary of the Emirati agribusiness group Al Dahra, has announced a US$30 million investment plan to enhance its operations in Egypt’s agricultural sector over the next three years.
Agriculture is a cornerstone of Egypt’s economy, contributing 10% to the national GDP and employing 19% of the active population. The sector’s promising growth potential has attracted increasing attention, with companies like Al Dahra taking significant steps to expand their footprint.
Speaking during the announcement, Raouf Tawfik, Al Dahra’s CEO highlighted that the investment will focus on bolstering its production and processing capacities for key crops, including cereals like wheat and corn, as well as citrus fruits and sugar beets.
The company plans to modernize machinery, upgrade irrigation systems, and increase the acreage of cultivated land to achieve these goals.
“Our current strategy focuses on producing strategic crops, supporting exports, and adopting sustainable agricultural practices to achieve the highest productivity per acre,” said Tawfik.
He noted that the company would continue to invest in modernizing machinery and irrigation systems while increasing our cultivated areas.”
In October, sources announced that Al Dahra is discussing purchasing additional agricultural land in Egypt in a deal that could reduce Cairo’s dependence on imports of staple crops but also reignite water use concerns.
According to the undisclosed reports, negotiations were taking place between the group’s local subsidiary, Al Dahra Egypt, and the Egyptian Army’s National Service Projects Organization (NSPO).
However, the sources did not specify how close a deal would be. Still, the investment may encompass hundreds of millions of dollars in much-needed funds for desert reclamation and cultivating important commodities like wheat and corn.
According to the agreement prospects, the arrangement might call for the gradual purchase of 500,000 feddans (210,000 hectares) through a purchase or a long-term lease in Toshka in the governorate of New Valley.
Currently, Al Dahra operates approximately 27,000 hectares of farmland across the New Valley and Ash Sharqiyah governorates, employing sustainable farming techniques to maximize yield and efficiency.
The investment is poised to contribute significantly to Egypt’s agricultural production and export capacity.
According to the Ministry of Agriculture, the country’s agricultural exports generated US$4.1 billion in revenue in the first 10 months of 2024, a 32% increase compared to the same period in 2023.
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