Egypt, Kuwait and Saudi Arabia cooperate on fertalizer project

Egypt, Kuwait and Saudi Arabia agreed on setting up a joint project to produce fertilizers and other chemical derivatives with a cost of $256 million.

The Egyptian Minister of Agriculture and Deputy Prime Minister Dr. Youssef Wali stated that the issued capital of the first phase of this project is $188 million, its total capital is $336 million. The project's duration is scheduled to be 25 years, which could be extended with the approval of the Investment Authority.

The Egyptian Minister added that the project will be implemented in two phases; the first includes setting up a factory in Suez that will produce ammonia as an intermediate product and ammonia nitrate as a final product.

He also mentioned that the project will be a joint stock company and working under the laws of the private free zones. The project will be financed by a number of personages and Egyptian, Kuwaiti and Saudi companies. The Arab contribution in the first phase of the project will be 35% while the Egyptian contribution will be 65%.

Dr. Wali added that the project should meet increasing local needs for special fertilizers as part of the government’s attempts to enlarge agrarian lands and to implement the project in the southern area of the valley. The project will also increase the Egyptian exports of fertilizers.