Sudan signs agreement with Saudi Arabia to finance imports

September 29, 2015 (KHARTOUM) – The Sudanese government and the Saudi Fund for Development (SFD) signed two agreements on Tuesday to finance imports of petroleum products worth $100 million and fertilizers for $71 million.

The Sudanese capital Khartoum and other cities have witnessed several fuel shortages in recent years especially in gasoline which affects public transportation and the agricultural season in a number of states.

The agreement was signed from the Sudanese side by finance Minister Badr al-Din Mahmoud while SDF was represented by its Vice Chairman and Managing Director Youssef Ibrahim al-Bassam in the presence of the Saudi ambassador.

The Sudanese minister of Oil and Gas Mohammed Zayed addressed the signing ceremony by noting that the agreement will contribute to the provision of petroleum products for the agriculture and industrial sector.

Zayed praised SDF role in financing many development projects in Sudan and treasured the relations between Sudan and Saudi Arabia in the economic sphere, pledging commitment to implementing the terms of the agreement.

For his part, the minister of finance pointed out that the agreement was inked in accordance with Islamic financing rules for the benefit of the two countries.

It is worth noting that South Sudan’s independence in July 2011 enabled the new state to retain 75% of the oil reserves that existed under the united Sudan.

Sudan currently produces approximately 113,000 barrels per day (bpd) and fills the deficit through oil imports despite the severe scarcity in hard currency. It has sought to import gasoline from several countries in the past few years including Iraq.

The Sudanese minister of Agriculture and Forestry Ibrahim al-dikhairi hailed the support provided by SDF in obtaining fertilizers which he described as the engine of growth in the five-year economic program.

SDF Vice Chairman said that the fund is a developmental partner to Sudan and has funded many projects over the last 40 years in different areas including Merowe and Atbara dams.

He expressed SDF’s readiness to provide all Sudan’s needs in terms of Saudi exports to develop bilateral trade.


Author: W:Sudan News