Al Dahra aims to open UAE's Fujairah grain silos by Jan
GENEVA, November 13, 2015
Private agribusiness group Al Dahra plans to start operating grain silos in Fujairah in the UAE by January, after taking over a site built by the authorities for strategic food supplies, a senior manager said.
The UAE chose to develop the silos in Fujairah as it has a coastline that lies beyond the Strait of Hormuz, a scene of tension between Iran and other countries, but the storage site has been empty while the authorities have sought a partner to take it on.
"Etihad Mills, a subsidiary of Al Dahra Holding, has taken over the management of the grain silos located in Fujairah," Houssam Mahmoud, head of Al Dahra's food division, told Reuters.
"Our intention is to develop the silos operations into a grains trading hub for the UAE and the ... Middle East and Africa regions, ensuring the availability and accessibility of key grain commodities," he said on the sidelines of this week's Global Grain conference in Geneva.
He declined to disclose the terms of the agreement with the authorities to run the silos.
The UAE which imports over 90 per cent of its food needs sees Fujairah's strategic location outside the strait as vital for ensuring the security of its food supplies.
In 2013, Abu Dhabi's Food Security Centre said it had picked a private firm to manage the silos, which have capacity of about 300,000 tonnes, but did not subsequently announce any deal.
Al Dahra is a privately held Abu Dhabi firm that trades and processes grains, and has also invested in farmland in a number of countries. - Reuters
