Introduction

THE AGRICULTURAL INVESTMENTS AND CONCEPT OF SECURED NUTRITION

AT THE TOP OF THE LIST OF CHALLENGES THE ARAB COUNTRIES FACE AND JOINT ARAB ACTION

Investing in agriculture is considered one of the most popular and most common economical activities among nations and businessmen in the Arab region and other countries of the world, especially after the understanding of the nutritional security became on top of the list of challenges that the Arab countries and the Arab joint ventures face.

Even though Arab countries have plenty of natural resources, such as land, water and human resources. They did not achieve the required production to meet nutritional demand. Therefore, the agricultural gap has increased, which led to importing half of the primary products in the Arab countries.

During the international crisis of 2007 and 2008, Arab countries were concerned about providing primary products, as prices of food commodities reached the peak. Importation then, fell short at the expense of basic needs of consumers. The matter that led the Arab countries to undergo several drastic measures, such as increasing governmental support on nutritional products, cutting down the exportation of nutritional products demanded by local markets, decreasing the taxes on importation and increasing the rates of the workers.

This situation allows many promising investment opportunities for the private sector as it relates to a very vital field with major impact on the national security for these countries, especially in the Gulf Cooperation Council, where it lately encouraged the private sectors to provide tangible support for the nutritional projects in the countries that contain necessary resources to build this project.
We would like to mention here the initiative taken by the Custodian of the Two Holy Mosques, calling for the strengthening and diversification of agriculture by encouraging investments in foreign countries enriched with agricultural resources, administrations, and governmental incentives encouraging projects that are built externally by exporting crops at reasonable rates; In addition investing in a long-term agricultural through the process of ownership or long-term contracts, with the freedom of choosing the cultivated crops.
This initiative also encourages the sovereign investment funds to support agricultural investment initiatives through external loans and credit facilities for these investments. Islamic financial institutions such as the Islamic Development Bank have also provided loans to establish some investments in agriculture in foreign Islamic countries as a contribution to the reduction of distress in providing food in Muslim countries.
And that’s how the idea for Taba Agriculture came to appear in the state of the Nile river in northern Sudan by Alrawabi Development Co. Ltd. to make use of the support to the agricultural investment, locally and internationally.

Also, the investment climate in Sudan supporting the investment initiative, such as exemption of business profits tax, customs for machinery and equipment, and agricultural products, as well as allow the re-localization of funds.

Republic of Sudan

GENERAL INFORMATION AND INVESTMENT OPPORTUNITIES

The Republic of Sudan is a country in North Africa, bordered by Ethiopia and Eritrea to the east, Egypt and Libya to the north, Chad and the Central African Republic to the west, and South Sudan to the north. The Nile river divides the country into eastern and western sections. The capital Khartoum is located at the confluence of the Blue and White Niles, and the Nile Valley mediates Sudan.

The primary and official language is Arabic; in addition to some local languages reaching up to more than 300, including Beja languages in Eastern Sudan and Nubian languages in the south.

96% of the population in different states of Sudan abides by Islam, and 4% abide by Christianity that is distributed as small minorities.

Transportation in Sudan in the early 1990s depended on a rail system that links urban areas, except in parts of the south, and on road networks, natural water canals, such as the Nile river and its tributaries, and on domestic and international airlines.

Sudan has a lot of various touristic elements and that is because of its diversified geography, history and culture. In the north, there are pyramids and Pharaonic temples that date back to the ancient Nubian kingdoms. And in the east, unique coral islands are home to colorful fish and a paradise for diving in the waters of the sea.

In the West, sandy deserts and volcanic peaks form an atmosphere similar to the atmosphere of the Mediterranean Sea. And in the south and southeast, herds of deer, elephants, and lions graze amid swarms of birds.

Furthermore, cultural tourism is portrayed in multi-ethnic tribes and what they represent in models of traditional music and folkloric clothes.

Education in Sudan:

The history of education in Sudan goes way back, and Koranic schools have contributed in its spread. Nevertheless, the first orderly Western-style school was inaugurated in the year 1855 A.D. in Khartoum during the Turkish Egyptian era. This school involved prominent scientists, like Refaah Tahtawi. Education has undergone several reforms in the post- independence

times, most recently in 1986 A.D., which led to an educational ladder that consists of three phases. The pre-school phase, set for children aged four to six. The second phase is basic education, from the age of six up to eight years. Then comes the secondary education phase which extends up to three years. At the end of those phases, students sit for an exam that

qualifies them for higher education in universities and specialized institutes.

There are 19 universities in Sudan, of the most prominent is the University of Khartoum. Women’s education has also gained great interest in Sudan whereby the Grandchildren School in Omdurman was the first to educate women. One third of Sudan’s public schools are for girls.

Investing in Sudan

WHY INVEST IN SUDAN?

Sudan has been selected for several reasons that include, but are not limited to:

Natural Resources:

Sudan has a variety of natural resources including rivers, groundwater, water bodies, rainwater, fertile agricultural lands with high production rates, and the availability of energy sources.

Climate variability:
The varying climate helps in cultivating different kinds of crops.

Geographical Location:
Sudan’s strategic location has linked it to Africa and the Arab States.

Proximity to the Arabian Gulf region:
That possesses high buying power.

Sudan’s membership in international economic communities:
Sudan is a member of many economic organizations, global and regional; which allows it to take advantage of opportunities in marketing operations.

Sudan’s link to excellent communication networks:
Sudan is the portal to Africa.

Trained manpower is highly available.

About Al-Rawabi

Alrawabi Development Company Ltd. is a Sudanese company with a Saudi-Yemeni capital with limited liability as per the Act of Companies for the year 1925 A.D. It was registered in Sudan under the record number (39 599) on September 29, 2011 A.D.

The company acquired the privilege to an area of investment of 226 thousand acres in the Nile river state. It is locally managed by (Taba Agriculture), which is considered a leader in the field of agriculture, greenhouses, and irrigation pivots.

In terms of agro-industrial integration, the company aims to make the most of the resources available due to its proximity of the largest consumer market in the Middle East.

Projects of Al-Rawabi

Taba agricultural project newly allocated Alrawabi Development Co. Ltd. in the state of the Nile River, with an area of 226,000 acres, bordered by the Northern state, Khartoum state and the State of North Kurdufan.

The project’s location is characterised by its closeness to the main cities on the course of the Nile, also its closeness to the port of Port Sudan, the only available seaport. And Ports of the old Halfa, the only available river port, and a conduit for electric transmission lines to water dams. The company implementing the project (Alrawabi Development Co. Ltd.) has adopted implementation at different and successive stages, according to a logical sequence and it will employ all local and international resources and provide all required qualifications to achieve the objectives of the project.

Also, a discretionary period of time has been set to complete most components of the infrastructure and many various development activities (Agricultural, industrial and logistical), and each component is considered an investment unit, each one studying the technical feasibility, economic, social and environmental independence. And shall be flexible keeping pace with modernization and development. It is expected that the total value of the project would be more than 500 million Euros.

Alrawabi Development Co. Ltd. has also invited many local and inner nation companies that specialize in different areas for the implementation of this project and the resettlement of modern technologies. The project also includes new visions in the production and use of sources for the production of clean energy, such as biomass and direct electricity; to the project economic rewards that enhance the rates of production and productivity by strengthening the export of horticultural, crops and animals. And strengthen the food industry and reduce the importing of products.
And enhance production rates in support of nutritional security; improve the value of the national currency and the empowerment of settling international green economic system. As for the social side, the project intends to secure employment opportunities for national cadres and curb unemployment, it is also intends to improve the standard of living and fights against poverty and the promotion of rural communities and promotes and builds human capacity.
The environmental impact is considered one of the important aspects set by the project at the heart of its concerns, which includes maintaining the sustainability of agricultural resources (water and soil), and the protection of agricultural resources from pollution and organic food production to protect consumers from carcinogens and localization of the eco-tourism system and the use of clean energy sources.

This project is the embodiment of the initiative of the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud to provide nutritional security for the Arab region, this initiative that was adopted by His Excellency Sudanese President Omar Al-Bashir -may God protect him, and prepared all the means and ways to achieve it on the land of Sudan, which God has given abundant natural resources.

Also, his wise government has prepared regulations and laws that support investors in his land, and also this project applies the values and principles of Alrawabi Development Co. Ltd., these values and ideals, God willing, will lead to achieve a high rate of desired success of the Taba agricultural project.

Where it contributes in establishing close relationships with the local community and the environment surrounding the project, the company gives great attention and importance to the interactions that occur in such projects between development and preservation of the environment.

Site Selection Rationale:

The site allocated for the project is unique because:
It is located on the largest groundwater basin, the Nubian sandstone aquifer, where its renewable water’s depth does not exceed 500 - 600 feet and an average production (150 - 250) cubic meters per hour, the water quality is suitable for irrigation and drinking. It is also close to essential infrastructures. (Electricity, railways, and asphalt roads).
The project’s soil is soft, doesn’t have a coherent build, and flat, making it easier for agricultural operations. It can also be cultivated with organic improvements.
Climatic conditions provide an opportunity to the diversity of plant and animal production, as well as the diversity of food processing and recycling of agricultural waste, to achieve environmental sustainability of agricultural.
All these ingredients make up the attractive fundamental pillars of the largest agro-industrial complex integrated system accompanied by tourism and agricultural as a relative additional advantage to the project, especially since the state is also rich in cultural and tourism.

Informational needs of the project:

1. Update primary maps on a scale of 1:10.000 to locate areas suitable for agriculture without any constraints, such as: Hydrogeological maps, contour maps (topographic maps), and land use maps.
2. Preparation of master plans for the project’s implementation, whether agricultural, industrial or other services.

The time period for the infrastructures:

It is expected that the project would need not less than 10 years for most of the components to be completed. Including infrastructure and many of the various development activities (agricultural, industrial or other services).

Each component is considered a unique investment unit, where each one has its own feasibility, technical, economical, social and environmental study and shall be flexible to keep pace with modernization and development.
Also with financial estimates of not less than 500 million Euros during that phase of the project, where it is to be confirmed after preliminary feasibility studies.

Steps to achieve the program:

This program stems from a desire to support the development and prosperity of the economy. These objectives can be achieved by transferring; developing and localizing advanced technologies, including agricultural techniques.

It is achieved through several steps:

1. Transfer, develop and localize competitive agricultural techniques that are environmentally friendly and directed towards serving sustainable development and the achievement of a nutritional security.
2. Development of human knowledge in urgent agricultural issues, as well as technical ways to reduce and solve its impact.
3. Find a competitive infrastructure for research and development in the field of agricultural technology.
4. Create an ambitious environment to manufacture competitive agricultural technologies that are competitive in the global markets.
5. Direct applications of modern technology and research to support primary agricultural production.

Energy sources:

The production and use of biofuels, as well as providing an important option for the global energy, are linked to many issues, such as nutritional security, land use and rural development, conservation of biodiversity, and climate change mitigation.

Biofuel, if used excessively, and properly managed can help in providing cleaner energy, at the same time where it contributes to the achievement of sustainable development and mitigation of environmental concerns.

A number of agricultural industries, such as sugar mills, are converting bagasse into electricity and heat for industrial purposes, where if has become self-sufficient in energy.
Others in these industries are producing ethanol and are working on the electricity supply network. Also, the ability of bio-energy for agro-industries that are made of bananas, rice, wheat, sorghum, cassava, and many other crops is considered enormous.

Moreover, the technologies for industrial production of fuels from biomass and their applications in fuel cells bring attention to the use of energy crops as rotating crops in high-density agriculture, with the use of starches and other forms of carbohydrates as a base for the production of biodiesel instead of manufacturing easier processes based on sugars.

The Taba agricultural project includes a new vision in production and its sources:
Clean energy such as Biomass
Direct current
Direct use of sun rays
Wind energy (wind turbines)
The use of undeveloped waste energy and establishing energy plantations and crops may help in the treatment of other existing environmental concerns. Energy crop plantations (especially perennial crops) can help preventing soil erosion by providing a cover that reduces the impact of rain and transport residues. Annual energy crops, can also help in the diversification and expansion of the crops.

Also, deforested, degraded or marginal lands could be rehabilitated as farms for the production of bio-energy, which could combat desertification and increase food production.

And with the increase in the use of biomass in the production of energy, its waste will have an economic value.


Investment Opportunities in Al-Rawabi

PROMISING OPPORTUNITIES FOR THE DEVELOPMENT OF MAJOR AND PIONEERING PROJECTS VERY CLOSE TO THE GULF MARKET IN GENERAL AND SAUDI ARABIA IN PARTICULAR.

Based on what was presented:

1. There are plenty of promising opportunities for the development of major and pioneering projects very close to the Gulf market in general and Saudi Arabia in particular that counts a lot on providing the nutritional needs for its residents from abroad.

2. According to the published statistics, there is a small number of similar projects targeting regional markets of products targeted by the Taba project.

3. Finally, there are both short and long-term specialised projects that aim to provide the needed nutritional security for the increasing number of the area’s residents.

Participation rights:

Taking part as founders and strategic partners hold the right to vote, enter the Board of Directors, share profits and any distribution of the assets of the Company upon liquidation in accordance with the official system.

Encouraging investment factors:

1. Taking part/contributing to Alrawabi will give you new chances to achieve rewarding returns on both the short and long-term in accordance to investment goals and market’s situation in the meantime, and the foreseen future.

2. Legislative financial and economical reform policies pursued by the government of Sudan provide excellent situations to take advantage of the full market opportunities.

3. The possibility of exiting (end of investment) the company, if necessary, through primary and secondary market mechanism after completion of the project’s stages.

4. Achieve revenues for the project during the development period, by cultivating cash crops with a monetary return to finance part of the project’s costs and cover some expenses for operations.

Financial indicators of the project:

Financial indicators that has been drawn from the financial model, which covers a period of 10 years of study of agricultural crops yielding quick cash, show the expected return of agricultural activity is estimated at about 27%

Also, the initial manufacturing study shows that the expected return on manufacturing, based on the market’s indicators for this industry, in between 20% and 30% depending on the type of activity and factory.

Competitive advantages:

1. Benefit the most from the experience of the founders in the field of services and products of the project.

2. Benefit the most from the opportunities provided by the founding partners, and supporting companies.

3. Attract qualified and capable leaders.

4. the project is typical and considered one of the biggest 7 projects in the world, in terms of space and investment components.

Opportunities for success:

1. Alliances that the company plans to set up will increase the company’s ability to develop the project and its products seamlessly and efficiently.

2. It is planned that the company will make use of the positive investment climate prevailing in the Republic of the Sudan and the directions backed up by the government in terms of providing complete financial support to the projects aiming to provide nutrition.

3. The experience of the founding partners and financial trust the biggest impact in attracting and administrative and executive management to manage to company efficiently.

4. the project will adopt the best available practices and techniques to develop, run and implement the project.

5. High financial indicators.


Al-Rawabi Project Components

PLANT PRODUCTION

Production of crops (Wheat - Grain) forage
Production of gardening (producing trees - fruit) Jatropha and Morinqa
Palm trees
Vegetables (exposed and protected)
Medical and aromatic plants

ANIMAL PRODUCTION

Animal production
Domestic production (whiteness - carnivorous) chicken, turkey, ostrich
Cows (dairy - fattening)
Goats (dairy - fattening)
Camels (dairy - meat)
Bees and honey production
Fish farms

PLANT MANUFACTURING

Slaughterhouse (chicken - cattle, beef)
Tanneries
Meat industry and their derivatives
Fertilizer industry and organic improvers
Forage industry

ANIMAL MANUFACTURING

Dairy industry and its dried derivatives
Spices industry
Timber and coal industry
Peanut butter and soybeans industry
Biodiesel industry

TABA ENGINEERING COMPANY

A company fully owned by Alrawabi Development, bearing the name Taba Engineering. It was founded to be an integrated source in meeting the needs of Alrawabi Development, such as infrastructure, services and constructions through delivery and provision of engineering solutions and technical and business execution for projects through a highly qualified dedicated team that includes a group of engineers and workers, and also harness financial capabilities and high-tech machinery and modern equipment, taking into account the application of the highest standards and specifications of global engineering.

ALRAWABI CHARITY ORGANIZATION

Alrawabi Development’s strategy begins with the values of the Islamic faith and the need to cooperate in righteousness and piety, and from its responsibilities towards the community and towards the areas where investment projects are implemented and allocating the proceeds of an annual budget or returns for charity in those areas under the slogan: “building human capacity to promote sustainable development in socially, economically and environmentally”. This strategic vision and moto as a lofty job (build human capacity to promote sustainable development) are two sides of the same coin, to set the pace on the charity work in coordination with the competent authorities to identify priorities and align them with the available funds.

SUPPORT SERVICES

The company will build the needed infrastructure to provide all aspects of a good living, warehouses, irrigation and septic networks. As it will also provide a laboratory for plant tissues, microbial vaccines and periodic analysis, also an airport and a mosque, road networks, to facilitate work. Also, the company will provide all supporting services, such as schools, administrative buildings, warehouses and hangars, refrigerators and freezers.

A central laboratory (plant tissue production factory, microbial vaccines, periodic analysis)
Airport
Veterinary hospital
Species conservation unit
Workers housing
Power plant
Road network
Warehouses, hangars, refrigerators and freezers
Maintenance workshop
Mosque
School
Administration building
Irrigation network
Water network
Septic network

TOURISTIC AND AGRICULTURAL SERVICES

Tourism is considered an important type of activity in terms of profitability. It has become a major industry on a global scale, it is expected to grow sustainably, whereas the number of tourists has increased 3 times in the past two decades. Also, travel and tourism are the largest sources of employment in the world.

Hunting track
Camel and horses race tracks
Gold courses
water bodies
Hotel
Bazar for organic products
Restaurant


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