United Arab Emirates member Fujairah has launched a grains storage project costing 1 billion dirhams ($272.3 million) in a bid to boost food security, an Arabic daily said on Tuesday.

The project is expected to reach capacity of 100 million tonnes, Sharief Al-Awadhi, director of the Fujairah Free Zone Authority (FFZA), told the Al-Bayan newspaper.   

The UAE is aiming at more infrastructure investment in its less developed northern emirates such as Fujairah and creating more jobs for nationals this year, its economy minister said on Monday.

The project in Fujairah would transform Fujairah into a future investment hub for grains storage, Al-Awadhi said.   

It follows an agreement between Fujairah port and Abu Dhabi's investment company to build wheat storage silos at the port, covering an area of 100,000 sq m or more.   

Figures vary, but Fujairah is now poised to rival the world's top two oil bunkering hubs, Singapore and Rotterdam, thanks to booming demand from the Middle East and Asia.

Oil storage capacity in Fujairah is estimated at between 2.5 million and 3 million cubic metres, and future expansions could raise it to up to 6.5 million-7 million cubic metres. - Reuters