Egypt’s vulnerability risk rises on capital outflows triggered by Ukraine war: Moody’s 

Egypt’s vulnerability risk rises on capital outflows triggered by Ukraine war: Moody’s 
Higher exposure to non-resident creditors in the domestic debt market increases external vulnerability risks, says Moody's (Shutterstock)
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Updated 22 April 2022

Egypt’s vulnerability risk rises on capital outflows triggered by Ukraine war: Moody’s 

Egypt’s vulnerability risk rises on capital outflows triggered by Ukraine war: Moody’s 

RIYADH: Egypt’s external vulnerability risk has increased amid non-resident capital outflows triggered by the Russian invasion of Ukraine, according to Moody’s.

Egypt’s net foreign asset position fell by $13.7 billion to negative $5.1 billion in March amid non-resident capital outflows, according to data from the central bank. 

With liquid foreign exchange reserves at $29 billion by the end of March, a similar reduction of $13.7 billion would reduce the reserve stock to around $15 billion.

That level would undermine external debt service coverage over the next 12 months, which Moody’s estimated at about $30 billion in fiscal year 2022 ending on 30 June. 

Recently, Egypt has officially requested an International Monetary Fund program, which Moody’s expects will close the country’s wider account deficit, estimated at 5.4 percent of gross domestic product in fiscal year 2022, versus 4.6 percent in the previous 12 months.

Higher exposure to non-resident creditors in the domestic debt market increases external vulnerability risks, unless it is backed by a commensurate foreign exchange reserve buffer, the credit rating agency explained.


Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 
Updated 14 sec ago

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

RIYADH: Kuwaiti supply chain firm Agility Public Warehousing Co. has committed $60 million to build a customs and logistics center in Egypt's Suez Canal Economic Zone.

Agility will work with SCZone on implementing its strategic vision in service, logistics, and support by setting up a technical and logistics arm that will automate customs processes and operations, according to a statement by the company.

The project is scheduled for implementation in the second half of 2023, and the statement added that the return on the investment “cannot be assessed at this time.”


PIF-backed Marafiq eyes 80% dividend by 2024 as it plans listing on TASI

PIF-backed Marafiq eyes 80% dividend by 2024 as it plans listing on TASI
Updated 34 min 22 sec ago

PIF-backed Marafiq eyes 80% dividend by 2024 as it plans listing on TASI

PIF-backed Marafiq eyes 80% dividend by 2024 as it plans listing on TASI

RIYADH: The Public Investment Fund-backed utility firm Saudi Power and Water Utility Co. for Jubail and Yanbu, known as Marafiq, expects dividends to reach 80 percent by 2024, as it plans listing on Tadawul soon. 

The utility company has witnessed stable financial results in the last three years. In 2021, its revenues amounted to about SR6.2 billion ($1.65 billion), while profits before taxes came to about SR2.2 billion, Marafiq CEO Mohammed Al-Zuabi told CNBC Arabia.

Last week, the Capital Market Authority approved the listing of the company’s 73.09 million shares on the Saudi Stock Exchange, which is equivalent to 29.24 percent of its total capital.

The company’s prospectus will be published before the start of the subscription period, according to the CMA.

The CMA’s approval will be valid for six months from the date on which the decision was made. 

This offering will enable Marfiq to diversify its investor base, and provide them an opportunity to be part of the company’s future growth, Al-Zuabi said.

Al-Zuabi expects the company to pay semi-annual dividends for shareholders following the offering.

For the current year, the company will pay dividends totaling SR550 million, and expects to pay the same amount for 2024.

A joint stock company established under a royal decree issued in October 2000, Marafiq is owned by four major shareholders, namely Saudi Aramco, the Royal Commission for Jubail and Yanbu, the Saudi Basic Industries Corp., and the Public Investment Fund, each holding 24.81 percent of the company. 

Private investors also hold a 0.76 percent interest in the firm.

With a capital share of SR2.5 billion, Marafiq began operations in January 2003.

This company is primarily concerned with providing electricity to the cities of Jubail and Yanbu, as well as providing electricity to oil and petrochemical facilities owned by companies such as Saudi Aramco and SABIC, as well as providing electricity to the national grid.


Kuwait’s Gulf Investment House to list 4 firms on Tadawul, ADX in 2 years

Kuwait’s Gulf Investment House to list 4 firms on Tadawul, ADX in 2 years
Updated 03 October 2022

Kuwait’s Gulf Investment House to list 4 firms on Tadawul, ADX in 2 years

Kuwait’s Gulf Investment House to list 4 firms on Tadawul, ADX in 2 years

RIYADH: Kuwait-listed Gulf Investment House, one of the leading investors in real estate properties, targets the listing of four firms on the Saudi Stock Exchange and Abu Dhabi Securities Exchange in the next two years, its chairman told CNBC Arabia.

The listing consists of companies with a capital of between 15 million Kuwaiti dinars ($48 million) and 50 million Kuwaiti dinars.

While global markets are facing challenging conditions, this will positively affect the region's markets, as it will be a destination for foreign companies, not just local companies, Abdulaziz Alsanad said.

The first and main benefit that GIH is trying to achieve by diversifying its listing in other markets is that the company will be able to create other opportunities for investors in the company, as well as its subsidiaries and associates.

This will in turn increase the investor's share value as well as the company’s value, the chairman stated.

GIH has received the approval of its shareholders for the listing of the firm's shares on the Tadawul as well as the ADX in May of this year.

As of Sep. 30, the company announced the successful dual listing of its shares on the ADX.

GIH has become the first Kuwaiti company to be listed on the ADX since the Kuwait Boursa was established.

Asserting the importance of the Kuwait group’s move, ADX noted that GIH will benefit from a broader investor base and increased liquidity because of the dual listing.

With GIH having subsidiaries and associates covering various economic activities, the Kuwaiti group has the ability to offer flexibility and openness to a wide range of economic sectors in Abu Dhabi and benefit from keeping pace with the effective transformation plan in the country’s economic foundation.

Founded in 1998, GIH has been listed on Kuwait’s bourse since May 2002 with a subscribed and paid-up capital of 40.6 million Kuwaiti dinars.

GIH has access to significant capital for private equity, real estate, and direct investments which constitute the core business activities of the company. GIH has investments in the Gulf Cooperation Council, the US, and other selected markets.

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PIF-owned real estate company extends mortgage benchmark maturity to 30 years

PIF-owned real estate company extends mortgage benchmark maturity to 30 years
Updated 03 October 2022

PIF-owned real estate company extends mortgage benchmark maturity to 30 years

PIF-owned real estate company extends mortgage benchmark maturity to 30 years

RIYADH: Public Investment Fund wholly owned Saudi Real Estate Refinance Co., has extended the maturity on its benchmark for mortgages in Saudi Arabia to 30 years, the Saudi Press Agency reported on Monday. 

The long-term fixed rate benchmark previously had a maximum eligible tenure of 25 years.

SRC said the move will further support the development of a robust mortgage market in the Kingdom, providing longer term liquidity to primary originators.

The company will allow lenders in Saudi Arabia more flexibility and the ability to offer additional sustainable mortgage solutions to borrowers.

The increased tenor will allow mortgage originators to accelerate the delivery of affordable home financing thereby increasing homeownership among Saudi citizens, SRC’s CEO Fabrice Susini said.

The LTFR confirms the commitment of SRC aligning with the Kingdom's Vision 2030 policies which aim for 70 percent of Saudi families to own homes by 2030, he added.

Speaking to Reuters last March, Susini said around 62 percent of Saudi citizens were homeowners.  


KPMG to add non-Saudi senior directors as shareholders

KPMG to add non-Saudi senior directors as shareholders
Updated 03 October 2022

KPMG to add non-Saudi senior directors as shareholders

KPMG to add non-Saudi senior directors as shareholders

RIYADH: Global accounting firm KPMG Professional Services has introduced a new shareholding structure to include non-Saudi senior directors as shareholders of the company. 

The proposal was approved in the company’s extraordinary general meeting held on Oct. 1.

The move comes as KPMG obtained the license from the Kingdom’s Ministry of Investment, the company said in a statement. It added that the capital increase associated with this expansion of the ownership will be used to support the firm's future growth.

KPMG revealed that its headcount in Saudi Arabia has grown to over 2,000, with people from different nations working across all levels.

The accounting firm has prioritized diversity and inclusion strategy, focusing extensively on developing Saudi nationals and attracting talent from around the world, the press release added.

“The establishment of this new shareholding structure is part of our strategy and commitment to the Saudi market, and will enable us to further our growth trajectory and attract more talent and expertise to support our clients,” said Abdullah Hamad Al-Fozan, chairman and CEO of KPMG.

Abdullah Hamad Al-Fozan, chairman and CEO of KPMG. (Supplied)

Earlier in August, KPMG became the first professional services organization to join as an official observer in Saudi Arabia’s Digital Cooperation Organization, the intergovernmental organization established to enable digital prosperity.