Egypt and UAE Sign $3 Billion MoU for Petroleum Logistics

Overview of the MoU

Egypt’s Cabinet has signed a Memorandum of Understanding (MoU) with the United Arab Emirates related to logistics projects in the petroleum sector, with investments potentially worth USD 3 billion (EGP 147.5 billion), a press release of the Cabinet announced on 8th April.

Signing Ceremony Details

The signing ceremony, presided over by Egyptian Prime Minister Mostafa Madbouly, featured key figures from Egypt’s Ministry of Petroleum and Mineral Resources, and the Emirati-owned Fujairah Oil Industrial Zone.

Technological and Strategic Goals

Egypt wants to mirror the smart system operating in Fujairah, and has deployed it in Egypt’s Hamra oil port on the Mediterranean coast.

Infrastructure and Investment Plans

“The MoU aligns with the Ministry of Petroleum and Mineral Resources’ strategy to enhance Egypt’s role as a regional hub for trade in crude oil and petroleum products,” the Cabinet statement said.

Market and Competitive Advantages

The agreement includes plans to use the country’s infrastructure, as well as port facilities to handle and store petroleum products, with potential investments in a new logistics zone.

Implementation and Oversigh

The MoU also highlights the possibility of supplying the Egyptian market with petroleum products through Fujairah’s existing global partnership, offering a competitive advantage for Egyptian General Petroleum Corporation.

A joint bilateral working group will be established to oversee the implementation of the project and to resolve any difficulties that may arise.