Egypt’s PM wants to boost private sector investments

Update Egypt’s PM wants to boost private sector investments
Madbouly said that the country aims to achieve a primary surplus of about 1.5 percent in the current fiscal year that ends in June 2022
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Updated 15 May 2022

Egypt’s PM wants to boost private sector investments

Egypt’s PM wants to boost private sector investments

Egyptian Prime Minister Moustafa Madbouly said on Sunday he wanted the private sector to account for 65 percent of all investements in the country within three years, up from around 30 percent at present.

He also said in a press conference that the government aims to decrease total debt to 75 percent of gross domestic product in the next four years from 86 percent currently, and the budget deficit to 5 percent from 6.2 percent.

Madbouly said that the country aims to achieve a primary surplus of about 1.5 percent in the current fiscal year that ends in June 2022, which would rise to 2 percent of GDP over the next four years.

PM Madbouly added in the televised conference that Egypt has strategic reserves of wheat sufficient to cover its needs for four months, 

Egypt also has strategic reserves of vegetable oils to cover six months, he said.

He went on to say that Egypt expects to reach a new agreement with the International Monetary Fund (IMF) 'within month'.

In March, Egypt said it was in talks with the IMF about potential funds in addition to technical support to hedge against the economic effects of the Russia-Ukraine crisis, should it be prolonged.

During the press conference, Madbouly stated that the direct and indirect costs of the Russian-Ukrainian war on the Egyptian budget is estimated to be 465 billion Egyptian pounds ($25.3 billion) annually.

Direct impact of the war on the Egyptian budget is estimated at 130 billion Egyptian pounds annually, while the cost of the indirect effect amounted to around 335 billion Egyptian pounds annually, he explained. 

(With inputs from Reuters)


Saudi ministry begins localization of amusement parks, leisure centers

Saudi ministry begins localization of amusement parks, leisure centers
Updated 25 September 2022

Saudi ministry begins localization of amusement parks, leisure centers

Saudi ministry begins localization of amusement parks, leisure centers

RIYADH: In a bid to create more jobs for Saudi nationals, the Ministry of Human Resources and Social Development has started the implementation of its localization program at amusement parks  and entertainment centers.

The ministry aims to localize 70 percent of the jobs in that area. It also seeks to localize entertainment centers within closed commercial complexes by 100 percent. The ministry has published on its website a step-by-step guide for the implementation of its decision. Failure to comply with the decision after the grace period, which is 180 days from April 4, 2022, will result in penalties.

The ministry also said the localization decision is applicable to all leisure centers across the Kingdom.

Saudi Arabia is working to localize 18 professions over the next year, as the Kingdom steadily progresses in its efforts to create more jobs in line with Vision 2030, according to Saudi Transport Minister Saleh bin Nasser Al-Jasser.

In June, the ministry issued six decisions to localize a number of professions and activities, in cooperation with the regulatory authorities.

In a statement, the ministry said the localized professions include licensed aviation, optics, customer service, regular inspection activities, outlets of postal and parcel delivery services, and outlets of seven business activities across the Kingdom.

The move aims to provide Saudi nationals with more than 33,000 job opportunities.

The decision to localize the licensed aviation professions will be implemented in two phases: The first starts on March 15, 2023 and includes the 100 percent localization of copilots, air controllers, and dispatchers. Meanwhile, the aviation transport pilot and air host professions will be 60 percent and 50 percent localized, respectively.

The second phase will start on March 4, 2024, and includes the localization of airline transport pilot and air host professions by 70 percent and 60 percent, respectively. The decision applies to all private establishments, which have five or more employees in the specified professions.


TASI, Nomu edges down; Hail Cement leads gainers: Closing bell

TASI, Nomu edges down; Hail Cement leads gainers: Closing bell
Updated 25 September 2022

TASI, Nomu edges down; Hail Cement leads gainers: Closing bell

TASI, Nomu edges down; Hail Cement leads gainers: Closing bell

RIYADH: The Saudi main index, also known as TASI, and the parallel market, Nomu, edged down on Sunday. 

At the closing bell on Sunday, TASI was down 2.61 percent at 11,161. Nomu was down 1.91 percent at 19,875. 

Hail Cement Co. rose 8.02 percent to lead the gainers. Among the other gainers, Dallah Healthcare Co. was up 3.26 percent.

Alinma Tokio Marine Co. led the fallers, as it was down 8.92 percent at the end of today's trading session. 

Aramco, the largest player in the Saudi oil market, was down 2.64 percent at the end of Sunday's session.

In the banking sector, Alinma Bank and Al Rajhi Bank went down 3.27 percent, and 3.31 percent respectively. 

In the food and beverage sector, Almarai Co. went down 2.78 percent.

Oil prices had plunged about 5 percent on Friday. Brent crude is currently priced at $86.15 per barrel, while West Texas Intermediate is at $78.74 a barrel.


Analysts divided about TASI direction after it starts the week down 2.61%

Analysts divided about TASI direction after it starts the week down 2.61%
Updated 25 September 2022

Analysts divided about TASI direction after it starts the week down 2.61%

Analysts divided about TASI direction after it starts the week down 2.61%

RIYADH: Saudi stocks started and ended sharply lower on Sunday, in response to the Saudi Central Bank raising interest rates in line with the Fed's steep rate hike and forecast for further hikes to curb inflation, but analysts believe the impact on the market will be short-lived.

Hesham AbouJamee anticipated that the market will remain stable for the remainder of this week, and will turn positive next week.

“What’s happening today is a reflection of what is happening in the global markets and currencies. I think the shock will be only today,” the founder and CEO of Mekyal Financial Technologies, told Arab News.

However, Fawaz Al-Fawaz, a Saudi-based independent economist and columnist, argues that the market will continue to shift. 

“The markets are likely to continue to be volatile and in jittery mode until inflation is under control.”

At the end of Sunday’s session, the Tadawul All Share Index declined 2.61 percent to end at 11,161, while the parallel market Nomu declined 1.92 percent to finish at 19,875.

Speaking to Arab News, Saudi economist Ali Alhazmi said that the rate hike is not the only factor for this decline.

“The decline is also from the uncertainty about the global economics, or also the decline of growth and the existence of recession in major economies, especially the US and the EU.”

“We cannot avoid the continued closure in China, which affects supply chains. We also have the ongoing war between Russia and Ukraine.”

Ultimately, he concluded that the market direction is unpredictable, but he anticipated the decline to continue this week.


UAE In Focus — UAE, US sign MoU to lower trade barriers and promote economic growth

UAE In Focus — UAE, US sign MoU to lower trade barriers and promote economic growth
Updated 25 September 2022

UAE In Focus — UAE, US sign MoU to lower trade barriers and promote economic growth

UAE In Focus — UAE, US sign MoU to lower trade barriers and promote economic growth

RIYADH: The UAE Ministry of Industry and Advanced Technology has signed an initial agreement with the American National Standards Institute to lower trade barriers and promote economic growth.

The memorandum of understanding was signed during the ISO Annual Meeting 2022, which is taking place in Abu Dhabi this week, according to a statement. 

This comes in line with the ministry’s efforts to collaborate with global partners in the field of standardization as part of its work to align with international standards and best practices.

In the first half of 2022, the US was one of UAE’s largest trading partners, with non-oil trade between the two countries reaching almost $14.5 billion. 

Energy agreement 

UAE’s president Mohammed bin Zayed Al-Nahyan has signed an agreement with German Chancellor Olaf Scholz that covers accelerating energy security and industrial growth, according to Emirates News Agency.

As part of the agreement, Abu Dhabi National Oil Co. has entered into an Liquid Natural Gas supply agreement with RWE AG.

ADNOC will be providing LNG cargo for delivery in late 2022, to be used in the commissioning of Germany’s floating LNG import terminal at Brunsbüttel. 

Air defense

Israel has agreed to sell an advanced air defense system to the UAE, Reuters reported citing two sources familiar with the matter.

This constitutes the first such known deal between both countries since they forged ties in 2020.

 


Saudi Grains Organization buys 5k tons of wheat for $2.4m 

Saudi Grains Organization buys 5k tons of wheat for $2.4m 
Updated 25 September 2022

Saudi Grains Organization buys 5k tons of wheat for $2.4m 

Saudi Grains Organization buys 5k tons of wheat for $2.4m 

RIYADH: The Saudi Grains Organization has deposited SR9 million ($2.4 million) to 15 local wheat farmers who supplied quantities allocated for this season.

Purchasing an amount of 5,058 tons, the payment constitutes the fifteenth batch, according to SAGO’s statement. 

It noted that the total amount spent this season so far has reached SR814.6 million.