Uganda has signed an agreement with UAE-based Alpha MBM Investments to develop a crude oil refinery in Kabaale, Hoima District, securing a 60% stake for the firm.
The remaining 40% will be held by the state-run Uganda National Oil Company, according to a statement from President Yoweri Museveni’s office.
The deal marks a significant step in Uganda’s energy ambitions, with the 60,000-barrel-per-day refinery set to become a cornerstone of the country’s emerging hydrocarbons industry.
The agreement was accompanied by five additional deals with UAE investors across various sectors, further strengthening bilateral ties.
Earlier this year, Uganda’s energy minister revealed negotiations with Alpha MBM Investments over the planned $4 billion refinery project.
Discussions on key commercial terms began on January 16, with expectations of concluding within three months, according to Energy Minister Ruth Nankabirwa.
Alpha MBM Investments, led by Sheikh Mohammed bin Maktoum of Dubai’s royal family, brings substantial financial and technical expertise to the project.
Uganda sees the refinery as a strategic asset in its broader economic development, aiming to reduce reliance on imported petroleum products and enhance domestic energy security.
This latest agreement underscores Uganda’s push to capitalize on its oil reserves and establish itself as a key player in Africa’s energy sector.
