Abu Dhabi-based International Holdings Company is entering into a partnership to develop and cultivate over 100,000 acres of farmland in Sudan, with a total investment of $225 million.
The agreement between its subsidiary IHC Food Holding and Sudan's Dal Group will lead to 5,000 new jobs being created and generate $1 billion in export revenues for the North African state over the next 10 years, the two companies said in a statement on Monday.
“This farming project will help secure high-quality agricultural output and drive further integration into our vertical supply chain,” Mamoon Othman, chief executive of IHC Food, said.
Dal Group is the largest private-sector conglomerate in Sudan with investments in various sectors including food, healthcare, engineering, real estate and education.
“We are excited about this partnership and what it will bring to Sudan,” Osama Daoud Abdellatif, chairman of Dal Group, said. “It will create local community development opportunities in rural areas and invest in technologies specific for our country that optimise agricultural methods.”
Sudan is currently undertaking a number of reforms to stabilise its economy. Last month, it reached an agreement with the International Monetary Fund for a staff monitoring programme, allowing the Washington-based lender to monitor proposed economic reforms. These include plans to broaden the country's tax base through the rationalisation of exemptions and to remove large fuel subsidies to boost social spending.
IHC is Abu-Dhabi based conglomerate listed on the emirate's stock exchange which has investments in a number of industries including food, finance, manufacturing, real estate, technology and utilities.
The company, which made a net profit of Dh814m ($221.6m) on revenue of Dh2.5bn in the first half of 2020, has been the standout performer on the market this year, with its share price increasing in value by 520 per cent since the start of the year. IHC's shares closed up 0.79 per cent on Monday at Dh38.44, giving it a market capitalisation of just over Dh70bn.