UAE private equity firm Abraaj Capital said it had bought a stake in Egyptian sugar company Al Nouran Holding.

Abraaj, which did not give the value of the deal, said the investment would help Al Nouran build a beet-sugar mill and a raw sugar refinery with a total annual production capacity of 514,000 tonnes.

Abraaj bought Egyptian Fertilisers Company earlier this month for $1.41 billion.

Mustafa Abdel-Wadood, managing director of Abraaj Capital, said:

“The addition of a manufacturing facility to its existing trading and distribution capabilities will make Al Nouran Holding into a vertically integrated group capable of servicing the entire value chain. Led by an expert management team and benefiting from Egypt’s competitive labour and production costs, Al Nouran Holding is poised to greatly increase its share of both local and export markets.”

He added: “Al Nouran Holding is precisely the kind of efficient, integrated private-sector firm that is driving Egypt’s ongoing economic growth – and also represents our third significant investment in the country.

“By helping to meet domestic demand while also targeting export opportunities, Al Nouran Holding will make a substantial contribution to the economic well-being of Egypt and the wider region.”

Ashraf Mahmoud, chief executive officer of Al Nouran Holding, said:

“Abraaj Capital’s investment will provide us with the capital necessary to realise our ambitious plans for growth.

“While remaining firmly committed to our employees, customers, suppliers and trade partners, we are aiming to become the world’s leading supplier of refined sugar and sugar byproducts.”

The acquisition of a strategic stake in Al Nouran Holding was made by the Dubai-based investment firm through its Infrastructure and Growth Capital Fund (IGCF), which seeks to address the infrastructure requirements of the MENASA region in various sectors, including transportation, healthcare, water, manufacturing, petrochemicals, power and utilities, and education.

Abraaj Capital is currently one of the largest foreign investors in Egypt. Earlier this month, the firm acquired 100 per cent of Egyptian Fertilizers Company for $1.41 billion, the largest private equity transaction in the history of the Middle East and North Africa region.

In September 2006, Abraaj became the single largest shareholder in leading investment bank EFG-Hermes by way of a capital increase bringing Abraaj’s own issued share capital to US$1 billion. The company also owns controlling stake in Spinneys Egypt.