Cairo, 22 June 2022. (TDI): The UAE is planning to invest in and develop the Red sea port in Sudan, a $6 billion investment deal.
According to DAL group chairman, Osama Daoud Abdellatif, the investment package contains free trade port, agriculture-related projects, and a $300 million deposit to Sudan’s central bank.
It is important to note that this deposit is the first one since the military takeover in October.
Sudan’s Political Situation
The World Bank and Western donors suspended aid and investment after the military takeover in Sudan.
Due to the regime change, the struggling economy of Sudan deprives the government of the need for foreign currency.
People across Sudan have joined mass protests due to the political turmoil and the military takeover.
On Wednesday, Saudi Businessman Waleed Bin Ibrahim Al Ibrahim said a memorandum was signed with the Gulf State to build the port along with an agricultural project.
The chairperson Abdullatif said the local conglomerate between DAL group and Abu Dhabi ports is owned by Abu Dhabi’s holding company (ADQ), worth $4 billion.
The port handles all commodities, materials, and products and can compete with the major domestic ports.
Abdullatif further mentioned that The Gulf State’s main port, located about 200km (124miles) north of Port Sudan, includes free trade, an industrial zone, and a small international airport modeled after Dubai’s Jabel Ali.
Moreover, the chairperson also said that the ongoing project is in “Advanced Stages” with complete project studies and designs.
Sudan port plays a vital role in the country’s export and import trade. But it has long been affected by infrastructure challenges and issues.
Because of the political unrest, many international shippers were reluctant to trade with the country. Subsequently, such a volatile political situation caused significant economic problems.
Port Sudan, the state capital of the Red Sea, is a port city in eastern Sudan. It is acknowledged as the principal seaport for Sudan and the origin of 90percent of its foreign commerce.