Uganda has officially signed an agreement with UAE-based Alpha MBM Investments granting the company a 60 percent stake in a new crude oil refinery located in Kabaale, Hoima District. This significant development was announced by President Yoweri Museveni’s office in a statement released on Saturday.

The refinery is designed to process 60,000 barrels of oil per day, and the remaining 40 percent stake will be held by the state-run Uganda National Oil Company. This project is a key component of Uganda’s emerging hydrocarbons industry and is central to the country’s broader energy strategy.

In addition to the refinery agreement, Uganda and UAE investors have entered into five other agreements across various sectors, further solidifying their partnership. Earlier this year, Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, indicated that negotiations regarding the $4 billion oil refinery had been in progress since January 16, with expectations for completion within three months.

Alpha MBM Investments is led by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family, as noted on the firm’s official website. The establishment of this refinery marks a pivotal step in Uganda’s efforts to enhance its energy sector and capitalize on its oil resources.