Egypt and the UAE have signed a memorandum of understanding (MoU) to establish a new logistics zone for trading in the Mediterranean region with investments that may reach $3 billion, subject to increases.
The agreement seeks to leverage the integrated system in the Fujairah Petroleum Zone and apply it to the Hamra Petroleum Port, which is located on the Mediterranean coast. The agreement also leverages the strong ties between the Fujairah company and key global oil and gas suppliers to meet Egypt’s growing demand for petroleum products. In addition, it focuses on optimizing resources within the petroleum sector to boost the trade of these vital commodities.
Boosting Egypt’s petroleum trade
In a statement, Egypt’s Cabinet said that the agreement with the UAE includes the possibility of supplying petroleum products to the local market through Fujairah’s current partnerships with international oil and gas companies. This will give a competitive advantage to the Egyptian General Petroleum Corporation. The agreement also aims to effectively use the current facilities in the petroleum sector for trading petroleum products.
The agreement with the UAE falls in line with the Ministry of Petroleum and Mineral Resources’ strategy to enhance Egypt’s position as a regional hub for trading crude oil and petroleum products. It aims to utilize the ports, storage capacities and sea berths to efficiently receive and trade these petroleum products.
UAE, Egypt establish joint task force
To ensure the efficient execution of this partnership, the two countries formed a joint task force. The task force includes representatives from both Egypt and the UAE. The agreement signing ceremony, which saw the attendance of Prime Minister Mostafa Madbouly and Minister of Petroleum and Mineral Resources Karim Badwi, marks a significant step towards realizing the mutual goals of both Egypt and the UAE in their transformative journeys.
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