Sudan, Arab fund to invest $200 mln in agricultural development
Nov 10, 2006 (BEIRUT) — Bank of Sudan and the Sudan-based state-owned Arab Organization for Agricultural Development signed a memorandum of understanding to invest $200 million in agricultural development projects in Sudan, the London-based Asharq Al Awsat reported Friday.
The memorandum was signed at the Khartoum Economic Forum that was held on Wednesday and Thursday.
The Forum is part’s of the Sudanese government plans to encourage foreign investment in the Sudan and by all indicators, Arab and western interest in the country appears to be serious. During the Forum Sudanese officials and Gulf Arab countries reached an agreement to remove investment impediments for the oil-rich states in the vast African country.
According to Sudan’s Minister of Finance, al-Zubair Ahmed al-Hassan foreign investments in the country are expected to reach $3 billion in 2006.
Sudan’s economy has been growing at a fast pace and macroeconomic conditions have been stable. Real GDP grew at an estimated rate of 8% in 2005, owing mainly to a recovery in agriculture and robust activity in construction and services.
The Forum, according to the paper, witnessed a number of deals including an agreement between investors from the GCC and local bankers to form a joint Gulf-Sudan investment bank. Officials did not provide any details as to the size of the capital and principle activities of the bank.
Gulf investors also agreed to set up a joint Gulf-Sudan reinsurance company, and a MoU between the Central Bank of Qatar and Bank of Sudan was signed to provide credit facilities.
Sudanese President Omar Al Bashir said during his remarks, that Sudan was ready and prepared to accommodate Arab investors and invited them to take part in the development of both the public and private sectors in the country.
(Dow Jones)