Fujairah to Develop $3 Billion Petro Logistics Zone in Egypt

Fujairah, one of the seven Emirates in the UAE, has inked a Memorandum of Understanding (MOU) with Egypt to build a $3 billion petroleum logistics zone at Al Hamra Port on the Mediterranean coast in Egypt.

The construction of the project is expected to take three years after kicking off in the first half of 2025, after completion of technical studies. Egyptian Prime Minister Dr Mustafa Madbouli witnessed the signing of the MOU between the two Governments on Thursday.

The project will benefit from the integrated system in the Fujairah oil region, and its implementation of the Red Petroleum Port on the Mediterranean coast. Egyptian Minister for Petroleum and Mineral Resources Karim Badawi and other dignitaries were present.

The MOU was signed by Karim Badawi and Muhammad Saeed Al-Dhanhani, Director of the Amiri Diwan in the Emirate of Fujairah and Mahmoud Naji, Head of the Central Department for Transport and Marketing Affairs in the Ministry of Petroleum and Mineral Resources.

The agreement is part of the Ministry of Petroleum and Minerals’ strategy to maximise Egypt’s role as a regional hub for crude oil and petroleum products trading, and utilise infrastructure and facilities for ports, storage hours and seafront to receive and trade crude oil and oil products.

The MOU includes the possibility of supplying petroleum products to the local market through the partnerships that Al-Fujairah Oil Company has with global suppliers from oil and gas companies, by providing advantage to the Egyptian General Petroleum Authority, as well as taking advantage of the facilities available by the petroleum sector to trade petroleum products, and also the creation of a new logistics area for trading in the region.

Joint Working Team Formed

A joint task team has been formed between the Egyptian government and the Fujairah to follow up the implementation of the articles of the agreement in order to clear any impediments.

Speaking on the occasion, Badawi affirmed the strength of the extended relationship between Egypt and the UAE, and he pointed out that the two countries have an advanced infrastructure, especially in the fields of storing and trading oil and petroleum products.

Badawi also said that Egypt enjoys the presence of international oil companies working in the fields of production and trading of petroleum products, which contributes to accelerating the achievement of cooperation and joint projects in these fields.

Al Dhanhani emphasised the importance of cooperation between the two countries and building on the successes already achieved in the fields of storage, petroleum trading, and ship supply.

He said that the UAE is home to the second-largest port for storing and trading petroleum products in the world and has advanced infrastructure. He suggested that both countries could benefit from exchanging expertise in these areas.