By: Ramy Sameeh
Abu Dhabi – Mubasher: The UAE’s Jenaan Investment is considering pumping several new investments in the Egyptian market; however, these are bound by certain condition that the company put forward before the Egyptian government at a previous time, said CEO Mohamed Al-Falasi.
We have asked the Egyptian government for three main demands, which are guaranteeing the energy supply, providing diesel fuel to operate machinery and lifting taxes implemented on exports, Al-Falasi told Mubasher in an interview, adding that the government made several promises to meet these requests but no further steps were taken.
Jenaan’s total investments in the Egyptian market have surpassed $150 million, the CEO told Mubasher, adding that the company’s investments are expected to increase once the government provides some facilities to help the company with its project success.
The Abu Dhabi-based company bought nearly 160,000 feddan in east Owainat (southwest Egypt) and in Minya governorate (southern Egypt) in 2007.
The CEO excluded that his company would pull out its investments from the North African country and to redirect it to other markets such as Ethiopia and Sudan, which have major agriculture investment opportunities.
“Our expansions in Egypt will continue but slowly. We have no plans to increase our investments until our conditions are met,” Al-Falasi stressed.
Jenaan’s entire produce is sold locally, as the company seeks to avoid an export tax, the UAE firm’s CEO told Mubasher on the sidelines of the UAE-Sudan Investment Forum held in Abu Dhabi.
Jenaan used to produce animal feed in Egypt and export it to Abu Dhabi; however, it incurred losses due to an export tax and decided to change its policy and invest in the production of wheat instead of animal feed only.
Established in 2005, Jenaan Investment works closely with the Abu Dhabi government to support food security in the UAE. The firm has investments in the UK, Spain, Sudan, Ethiopia, and Egypt. It primarily operates in the field of animal feed, rice, wheat and corn.
Translated by: Nada Adel Sobhi
