UAE, Algeria sign various deals

ABU DHABI: The United Arab Emirates and Algeria have signed various agreements recently on the sidelines of the Algerian-Emirati Investment Forum in the presence of Abdel Malek Sellal, Prime Minister of Algeria and Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister of the UAE.

Emarat Dzayer Group, a Dubai-based diversified business conglomerate and Groupe Imetal, a Government of Algeria undertaking, has signed an agreement to develop a $1.6 billion (Dhs5.87 billion) steel plant in Algeria’s Annaba Province.Meanwhile, Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development (ADFD), signed a Memorandum of Understanding (MoU) to the tune of Dhs12 million with Hadidi Amer, Naama Province Section Chief at the Ministry of Health, Population and Hospital Reform in Algeria.

Later,The Central Bank of the UAE said it had signed a memorandum of understanding (MoU), with the Bank of Algeria for supporting and developing the financial and banking sector in the UAE and People’s Democratic Republic of Algeria. The first agreement will create Emarat Dzayer Steel Company, a joint venture in which Groupe Imetal will hold 51 per cent stake through its two subsidiaries – Naftal (41%) and Asimdal (10%) – and the rest 49 per cent will be held by Emarat Dzayer Group.

The announcement is part of a series of ten agreements between Algerian and UAE firms, both public and private sector organisations, which creates a win-win situation for both the countries. Emarat Dzayer Steel Company will produce 1.5 million tonnes of directly reduced iron (DRI) per year and 1 million tonnes of steel in the form of rails, steel structures and seamless pipes. The total cost of the project is estimated to be around $1.6 billion (Dhs5.87 billion). The value added products of this plant will generate and save foreign exchange reserve, and thereby support the local economic growth.

The technology will be sourced from highly specialised international technology companies from countries such as Germany, Italy, USA and Japan, and will generate jobs for local population. Ahmed Yazid Touati, Chairman and Chief Executive Officer of Groupe Imetal, expressed his gratitude for the venture. “The peoples of Algeria and the UAE enjoy a very close relationship. I strongly feel that this value-added steel plant will be self-sufficient to meet the local demand and help our national economy,” he said.

The companies have also signed a second agreement for oil distribution with Naftal – a state-owned company for oil distribution and Asmidal – a government-owned manufacturing company for petrochemicals. The joint venture will set up a state-of-the-art manufacturing, blending and packaging facilities of lubricants and industrial lube oils catering auto, aviation, marine and industrial sectors. This project will be first of its kind in Algeria and will meet the growing local demand and will export to the Middle East and North Africa (MENA) region. According to Ajay Sethi, Vice Chairman of Emarat Dzayer Group, Emarat Dzayer Steel Company will support Algeria’s fastest growing infrastructure projects, as well as export for sustainable development.

Addressing the close ties between the UAE and Algeria, “Both nations have enjoyed historic ties dating back decades. These profound bi-lateral ties are possible due to the keenness of both governments to cultivate strategic partnerships.”

The second MoU stipulates that the UAE government grant is managed by ADFD to fully refurbish, renovate and restore 10 hospitals in the Algerian province of Naama. Moreover, the grant will ensure state-of-the-art medical equipment and upgrades to therapeutic systems for the hospitals. Re-affirming ADFD’s commitment towards improvements in health care services His Excellency Al Suwaidi said: “At the Fund we aim to provide developments that in-turn greatly benefits the mass public.

The banking cooperation underscores the importance of the sector as a major pillar for supporting expansion of trade exchange between the two countries and increasing mutual investments, especially in the private sector.

The agreement was signed by Mubarak Rashed Al Mansoori, Governor of Central Bank of the UAE, and Muhammad Loukal, Governor of Bank of Algeria. A number of senior officials were also present at the event. The MoU aims to set up a proper framework to encourage banks and financial institutions in both countries to define their areas of co-operation.