Egypt and the United Arab Emirates (UAE) signed a Memorandum of Understanding (MoU) on Thursday to enhance collaboration in the petroleum sector, especially aiming at leveraging the integrated system in the Fujairah Petroleum Zone and applying it to Egypt's Hamra Petroleum Port on the Mediterranean. The agreement, which aligns with Egypt's strategy to become a regional hub for trading crude oil and petroleum products, aims to utilise the country's infrastructure, port facilities, storage capacities, and marine berths for the reception and handling of these products. Under the MoU, there is also the potential for supplying petroleum products to the local market through existing partnerships between Fujairah and global oil and gas suppliers. Notably, this is expected to provide a competitive edge to the Egyptian General Petroleum Corporation (EGPC). Additionally, the agreement includes plans to utilise available facilities in the petroleum sector for trading purposes and to establish a new logistics zone on the Mediterranean, with investments potentially reaching up to $3 billion. A joint working group has been formed between Egypt and the UAE to oversee the implementation of the agreement and address any challenges that may arise during its execution.
