UAE-based Dana Gas plans to pump around $43 million in investments in the Egyptian market in 2024, according to the company’s CEO Richard Hall during a meeting with Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla held in late November.
Hall explained that the planned investments come as part of the company’s drilling program for next year in the country, under which it plans to drill 11 development wells and three discovery ones.
The program aims to boost Dana Gas’ production in Egypt by about 30 million cubic feet of natural gas per day.
Hall also stressed his company’s keenness on expanding its business in Egypt and pumping additional private investments in the oil and gas exploration field.
“This step also aims to counter the natural decline of existing wells and propel the company towards sustained growth,” Hall told the minister during the meeting.
Hall also asserted the company’s firm commitment to expanding operations in the Egyptian market, injecting additional investments, and fostering stronger bilateral relations.
During the meeting, El-Molla underscored the potential Egypt’s oil and gas sector enjoys, stressing that the country’s solid infrastructure, exceptional skills, and experience, along with its vital geographical location, qualify the country to be a regional hub for natural gas.
Dana Gas’s recent announcement comes in line with the UAE’s apparent trend to increase its investments in the Egyptian market to support Egypt’s economy amid the repercussions of the ongoing global and regional tensions.
In November, Emirati Minister of Investment Mohammed Al-Suwaidy said that the UAE intends to inject new investments into the Egyptian market across a wide range of sectors under the directives of the UAE’s President Sheikh Mohamed bin Zayed Al-Nahyan.
In a bid to tackle the foreign exchange shortage crunch and to bridge its $17 billion financing gap, Egypt is actively seeking to attract Gulf investments into the local market; mainly through its initial public offering (IPO) program that offers several investment opportunities in state-owned assets.
“The Gulf states cannot afford to let Egypt’s economy collapse entirely—but their investment and assistance now come with strings attached,” according to Carnegie Middle East Center.
Recently, the UAE extended the maturity of a $1 billion deposit at the Central Bank of Egypt (CBE) for three years to be due on 1 July 2026 instead of 1 July 2023.
It is also reported that Egypt is in discussions with the Emirati side to extend the maturity of other deposits worth $2 billion. The Emirati deposits at the CBE recorded $5.65 billion at the end of June 2023, according to the bank’s data.
