DUBAI/HAMBURG: Egypt, the world’s largest wheat importer, will go back to paying its grain suppliers within 180 days instead of immediately, a government source and traders said on Monday.
Egypt’s state grain buyer GASC had said in January it would start immediate on-sight payment after obtaining financing from Islamic Trade Finance Corp. for its international purchasing tenders.
Before that announcement, GASC had for years used a deferred payment system introduced at a time when foreign-exchange shortages plagued Egypt’s economy, pushing up wheat prices offered to the state buyer at its international tenders.
“We can switch between the two payment methods if we don’t have the financing available,” the government source, who is close to the matter, said.
“The next tender to be announced will be with 180-day facilities,” he said.
GASC was not immediately available for comment.
The state buyer secured $1 billion of a $3 billion Islamic Trade Finance Corp. deal to fund its wheat purchases in January.
Prior to that deal, GASC’s letters of credit — banking guarantees for on-time payment to sellers — were being issued prior to shipment, with payment guaranteed within 180 days.
GASC is reverting to that deferred payment system for its upcoming tender, the government source said on Monday.
A senior government source told Reuters in January that the financing from Islamic Trade Finance could be renewed when the initial $1 billion tranche was used up, so deferred payments would no longer make purchases more expensive for GASC.
Egypt said at the end of February it had used $213 million in funding from Islamic Trade Finance for wheat purchases so far, buying 1.02 million tons.
This latest reversal indicates that more funding from that facility is not now readily available, traders said.
“The question being asked is how much money Egypt has,” a European trader said.
“I think this (delayed payment) would add $6 to $7 a ton to the cost of buying wheat compared to immediate payment,” he said.
On-sight payment means cheaper offers by suppliers because the cost of financing deferred payment would be taken out of traders’ calculations when making offers to GASC at international tenders.
Cairo pays around $1.5 billion annually for the grain as part of a bread subsidy program on which many of Egypt’s almost 100 million people depend.
Egypt’s GASC to pay for wheat within 180 days instead of immediately
Egypt’s GASC to pay for wheat within 180 days instead of immediately
- GASC announced in January they will start immediate on-sight payments for grains
- The state grain buyer was not available for a comment
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
