Abu Dhabi Firm Partners On $225m Sudan Agriculture Deal

Via Arabian Business, a report on the UAE’s continued investment in overseas agriculture:

IHC Food Holding joins forces with the largest private sector conglomerate in Sudan to develop over 100,000 acres of farmland
Abu Dhabi firm partners on $225m Sudan agriculture deal 
The joint agreement will see a five-year investment plan put into the transformation and development of over 100,000 acres.
IHC Food Holding, a subsidiary of Abu-Dhabi-based listed holding company International Holding Company (IHC), on Monday announced plans to develop and cultivate farmland in Sudan in a $225 million deal.
The partnership with DAL Group, which is the largest private sector conglomerate in Sudan, will focus on farmland in Abu Hamad, River Nile State, Sudan.
The joint agreement will see a five-year investment plan put into the transformation and development of over 100,000 acres.
The farm is expected to reach a maximum annual output of over 400,000 metric tons of agricultural crops for consumption and export purposes.
Once fully developed, this will help generate about $1 billion in export revenues for Sudan over the next 10 years. It is also expected to create new employment for more than 5,000 people in Sudan, including on the farm as well as part of the ancillary services to support the farm.
The partnership will focus on farmland in Abu Hamad, River Nile State, Sudan
Mamoon Othman, IHC Food CEO, said: “The agriculture sector has become very important for our business. We need to ensure our long-term goal of safeguarding farm-to-fork supply chains in an efficient and sustainable manner, and this type of impact capital will get us there. This farming project will help secure high-quality agricultural output and drive further integration into our vertical supply chain.”
Osama Daoud Abdellatif, chairman, DAL Group, added: “We are excited about this partnership and what it will bring to Sudan. It will create local community development opportunities in rural areas and invest in technologies specific for our country that optimize agricultural methods.
“Our main focus is to protect the environment and ensure sustainability by minimizing water wastage and creating a sustainable, long-term future.”
The project will use modern technology including automated pivots using drip-irrigation, which will minimize water wastage, while the latest farming technology will maximise productivity.
The farm has scope to expand further in terms of size and scale, the companies said in a statement.
IHC Food Division incorporates four businesses – fishery, animal feed, poultry and distribution.
International Holding Co has operations in the UAE, Middle East, Europe, and North America through 12 subsidiaries. In the first half of 2020, it posted revenues of AED2.5 billion and net profit of AED814 million.

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Seeds Of A Revolution is committed to defining the disruptive geopolitics of the global Farms Race.  Due to the convergence of a growing world population, increased water scarcity, and a decrease in arable land & nutrient-rich soil, a spike of international investment interest in agricultural is inevitable and apt to bring a heretofore domestic industry into a truly global realm.  Whether this transition involves global land leases or acquisitions, the fundamental need for food & the protectionist feelings this need can give rise to is highly likely to cause such transactions to move quickly into the geopolitical realm.  It is this disruptive change, and the potential for a global farms race, that Seeds Of A Revolution tracks, analyzes, and forecasts.

Educated at Yale University (Bachelor of Arts - History) and Harvard (Master in Public Policy - International Development), Monty Simus has long held a keen interest in natural resource policy and the geopolitical implications of anticipated stresses in the areas of freshwater scarcity, biodiversity reserves & parks, and farm land.  Monty has lived, worked, and traveled in more than forty countries spanning Africa, China, western Europe, the Middle East, South America, and Southeast & Central Asia, and his personal interests comprise economic development, policy, investment, technology, natural resources, and the environment, with a particular focus on globalization’s impact upon these subject areas.  Monty writes about freshwater scarcity issues at www.waterpolitics.com and frontier investment markets at www.wildcatsandblacksheep.com.