Egypt agrees deal for $23 billion high-speed rail link

Egypt agrees deal for $23 billion high-speed rail link
A view of Egypt's railway central station in Cairo. (Shutterstock photo)
Short Url
Updated 15 January 2021

Egypt agrees deal for $23 billion high-speed rail link

Egypt agrees deal for $23 billion high-speed rail link
  • Work to build the 15 stations included in the project is expected to be completed within two years

CAIRO: Egypt signed a deal with German giant Siemens on Thursday to build a $23 billion high-speed rail line linking the Red Sea and Mediterranean coasts.

The electric railway will run for more than 1,000 kilometers from Ain Sokhna on the Red Sea to New Alamein on the Mediterranean coast, passing through a new administrative capital being built east of Cairo.

Egyptian President Abdel Fattah El-Sisi reviewed the final agreement with Siemens on the project, which is expected to start immediately.

Work to build the 15 stations included in the project is expected to be completed within two years.

The announcement of the express rail link came after El-Sisi met with Joe Kaiser, president and CEO of Siemens, and Roland Bush, the company’s executive vice president, together with Egyptian Prime Minister Mostafa Madbouly and Transport Minister Kamel El-Wazir.

El-Sisi said that the new electric line “will represent a significant addition to the country’s transport network in terms of trade and passenger transport.”

El-Wazir said that the project will link the new administrative capital and new cities, carrying passengers and goods through a “fast, modern and safe means of transport.”

Soil research, surveying and route planning has been completed, and work is underway building bridges and the track, he added.

 

 


Saudi public debt up 5.6% to $240.4bn in Q1 2021

Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
Updated 14 min 58 sec ago

Saudi public debt up 5.6% to $240.4bn in Q1 2021

Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion). (Shutterstock)
  • he debt grew by 24.6 percent compared to the same period in 2020, which amounted to SR723.46 billion

RIYADH: Saudi public debt increased about 5.6 percent during the first quarter of this year nearly amounting to SR901.4 billion ($240.4 billion), compared to the end of the fourth quarter of last year.

This recorded the fastest growth rate since the second quarter of last year, which was caused by the pandemic repercussions, Al Eqtisadiah reported.

The debt grew by 24.6 percent compared to the same period in 2020, which amounted to SR723.46 billion.

About 57 percent of the debt comes from internal debt nearly amounting to SR513.74 billion, while the external debt amounted to about SR387.63 billion, Al Eqtisadiah reported citing data of the Ministry of Finance.

The volume of debt to GDP increased to 35.6 percent at the end of the first quarter of this year compared to the end of last year at 32.3 percent, based on the GDP at constant prices.  

The rise in the debt comes despite the budget recording its lowest deficit for the first quarter of this year since the third quarter of 2018 at SR7.44 billion, due to the 9 percent decline in oil revenues on an annual basis, despite the growth of non-oil revenues.

Saudi Arabia was able to raise funds to pay its deficit by about SR29.55 billion, which exceeds the actual deficit for the first quarter, as it intends to use the rest of the funding to pay the deficit for the remainder of the year. 

Saudi Arabia is trying to take advantage of the lower interest rates in the debt markets.

The Ministry of Finance previously estimated that this year's public debt reaches SR937 billion, as the Corona crisis increased the target level of public debt.


Saudi AC distributor sees 30.5% increase in Q1 revenue

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
Updated 06 May 2021

Saudi AC distributor sees 30.5% increase in Q1 revenue

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years. (Shutterstock)
  • The quarterly rebound is in contrast to a net loss of SR3.3 million in the same period last year

RIYADH: Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), a Saudi importer, manufacturer and distributor of air conditioners (ACs) and home appliances, has reported that revenue in the first three months of 2021 grew 30.5 percent year-on-year to SR288.3 million ($76.88 million), resulting in a net profit of SR4.5 million for the quarter.

The quarterly rebound is in contrast to a net loss of SR3.3 million in the same period last year.

Mohammed Ibrahim Abunayyan, CEO of Shaker, said in a press statement: “During the first quarter our team continued to demonstrate flexibility to operate in a challenging environment and deliver strong sales and earnings. At the beginning of the year, we rolled out our 2021-2023 strategy and we are pleased to already see the results of our growth plan.

“We continue to expand our footprint in our core segments – ACs and home appliances – by growing our portfolio and seeking new opportunities in the market. In the first quarter we welcomed Panasonic, a brand with which we have now entered the TV category. Meanwhile, we have pursued opportunities emerging from the government’s commitment to megaprojects across the Kingdom, and this is an area we will continue to place significant emphasis on.”

The company has also embraced new manufacturing techniques, such as robotics and artificial intelligence, at its LG-Shaker manufacturing facility in Riyadh, which has helped to increase production speed and accuracy and reduce sots, he added.

According to a report by research company Euromonitor, the Saudi AC market is set to grow by 2 percent in the next two years, while the home appliances market is expected to grow by 3 percent over the next three years

Growth will also be supported by government energy-efficiency programs including the Saudi Energy Efficiency Center’s high-efficiency AC initiative, and Tarsheed, the government’s National Energy Services Company.

Shaker also sees potential growth due to the launch of megaprojects such as NEOM and the Red Sea Project.


Bahrain’s Investcorp targets larger North American deals

Bahrain’s Investcorp targets larger North American deals
Updated 06 May 2021

Bahrain’s Investcorp targets larger North American deals

Bahrain’s Investcorp targets larger North American deals
  • Investcorp is the region's largest private equity and alternative asset manager
  • Investcorp plan to increase assets under management to $50 billion

RIYADH: Investcorp Holdings BSC is targeting larger private equity deals in North America as it seeks to boost assets under management to $50 billion, Bloomberg reported.

The biggest private equity and alternative asset manager in the Middle East sees buyouts in that region representing one of its best avenues to growth, David Tayeh, head of North America private equity, said in an interview.

The firm is also looking at more co-investments as a way of participating in bigger deals, he said.

“We want to grow our capacity to invest and broaden the top of the funnel of investments that we can look at from a size perspective,” said Tayeh. “At the moment there are deals that we really like that we don’t pursue because they’re outside our size range.”

Investcorp, which counts Abu Dhabi sovereign wealth fund Mubadala Development Co. as a major investor, outlined a plan to double its assets under management from about $25 billion in 2018 within seven years. It is targeting a combination of acquisitions and boosting its existing private equity, real estate and alternative investments units.


Abu Dhabi National Hotels first quarter profit more than doubles

Abu Dhabi National Hotels first quarter profit more than doubles
Updated 06 May 2021

Abu Dhabi National Hotels first quarter profit more than doubles

Abu Dhabi National Hotels first quarter profit more than doubles

DUBAI: Abu Dhabi National Hotels Company reported a more than doubling of net profit year over year in the first quarter as its financing costs fell.
First-quarter net profit was 40.7 million dirhams ($11.1 million), up from 16 million dirhams in the year earlier period, ADNH said in a filing to the Abu Dhabi Securities Exchange.
Revenue fell to 224.7 million dirhams from 344.3 million dirhams, while costs dropped to 201.8 million dirhams from 294.1 million dirhams.
While financing costs fell to 9.5 million dirhams from 19 million dirhams, the big difference from a year ago was the 41.9 million dirhams settlement of a legal claim in Q1 2020 that was not repeated in 2021.
The legal claim related to construction of one of its hotels. The total settlement amount was 200 million dirhams against available accrual of 158 million dirhams, resulting in a loss of 42 million dirhams, ADNH said.
Profit from joint ventures, including ADNH Compass Middle East, was 44.3 million dirhams, up from 39.6 million dirhams a year earlier.
The company, which owns 12 hotels in the UAE, including two Radissons, a Sheraton, a Park Hyatt and a Ritz Carlton, ended the quarter with 89.5 million dirhams less cash or equivalents at 264.9 million dirhams.


Dubai’s SHUAA sells 20% stake in Mirfa International Power and Water Company to Japanese investor

Dubai’s SHUAA sells 20% stake in Mirfa International Power and Water Company to Japanese investor
Updated 06 May 2021

Dubai’s SHUAA sells 20% stake in Mirfa International Power and Water Company to Japanese investor

Dubai’s SHUAA sells 20% stake in Mirfa International Power and Water Company to Japanese investor
  • MIPCO operates a power and desalination plant in Abu Dhabi
  • SHUAA invested in MIPCO in 2015

RIYADH: SHUAA Capital has sold its 20 percent equity stake in Mirfa International Power and Water Company (MIPCO), to Japan’s Sojitz Corporation (Sojitz).
MIPCO was established in 2014 under the Department of Energy’s privatization program.
The company developed and operates a power generation and seawater desalination plant in the Al Dhafra region of Abu Dhabi, with a 1600MW net power capacity and a 52.5 MIGD net water capacity. SHUAA did not disclose the purchase price.
“In addition to acquiring shares in the project which has successfully achieved commercial operation, this transaction is also important for us from the perspective of establishing a business relationship with SHUAA which has a large presence in the financial sector in the Middle East,” said Masakazu Hashimoto, COO of Sojitz’s infrastructure and health care unit.
“Sojitz is aiming to continue and further expand its business in the Middle East,” he added.
Having originally invested in MIPCO in 2015 to support the development phase of the project, this divestment is in line with the group’s planned exit strategy, it said in a stock exchange filing.
MIPCO’s shareholders also include the Abu Dhabi National Energy Group (TAQA) and Engie, the French low carbon energy and services group, both of which will remain shareholders (with 60 percent and 20 percent stakes respectively).
Sojitz is a multinational trading and investment group, listed on the Tokyo Stock Exchange, with assets of about $21 billion across a number of sectors.
SHUAA has appointed Standard Chartered Bank as financial adviser on the transaction and Linklaters as legal adviser.