Egypt In-Focus – Investments worth $1.2bn planned for Zohr field in 2023-2024, says Petrobel chairman 

Egypt In-Focus – Investments worth $1.2bn planned for Zohr field in 2023-2024, says Petrobel chairman 
The Zohr gas field in Egypt (Shutterstock)
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Updated 09 February 2023

Egypt In-Focus – Investments worth $1.2bn planned for Zohr field in 2023-2024, says Petrobel chairman 

Egypt In-Focus – Investments worth $1.2bn planned for Zohr field in 2023-2024, says Petrobel chairman 

RIYADH: Seeking to expand production from the largest Mediterranean gas field, Khaled Mowafi, chairman of Belayim Petroleum Co., has announced Egyptian authorities will invest $1.2 billion during the fiscal year 2023-2024 in the Zohr gas field.

The company, also known as Petrobel, is a joint firm between the Italian giant ENI and the state-owned Egyptian General Petroleum Corp..

The budget for the next fiscal year includes the implementation of an ambitious plan to intensify the development activities of the field through the expansion of drilling new wells and repairing and re-completing others, Mowafi said during a meeting of the General Assembly of Petroshorouk Co., which is operating in the Zohr gas field.

He went on to say that projects will be undertaken to increase the efficiency of the facilities at the onshore production plant.

Mowafi also reviewed the amended budget of the current fiscal year 2022-2023, noting that work will continue to develop the southern region of the field, the well “Zohr-18,” which was successfully drilled, completed and placed on the production map in December 2022.

Egyptian exports jumped 19.2% in first 11 months of 2022

Egyptian exports increased by 19.2 percent to hit $46.9 billion during the first 11 months of 2022, compared to $39.3 billion during the same period a year earlier, according to government data.

Turkiye topped the countries to which Egyptian exports went during the first 11 months of 2022, with a value of $3.5 billion, followed by Spain with $3.3 billion,  Italy with of $3.1 billion, then Saudi Arabia with $2.2 billion followed, the Central Agency for Public Mobilization and Statistics said on Feb. 8.

The top 10 countries, which also include the US, the UAE, South Korea, the Netherlands, and China, accounted for 45.1 percent of the total value of Egyptian exports across the globe, at a value of $21.2 billion during the first 11 months of 2022.

Egypt’s headline inflation increased to 25.8% in January 

Egypt’s annual urban consumer price inflation jumped to a higher-than-expected 25.8 percent in January, its fastest in more than five years and up from 21.3 percent in December, data from statistics agency CAPMAS showed.

The rise followed a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and continuing delays in getting imports into the country.

January inflation was the highest since December 2017, a year after a steep devaluation.

Economists had expected a reading of 23.75 percent, according to the median forecast in a Reuters poll of 14. Five analysts had forecast that core inflation would climb to 26.6 percent from 24.4 percent in December.

Headline inflation increased across the board, but was driven especially by higher prices of food and non-alcoholic beverages, which make up 32.7 percent of the index's basket.

(With input from Reuters) 


Aramco forms JV with Chinese entities to construct refinery, petchem complex 

Aramco forms JV with Chinese entities to construct refinery, petchem complex 
Updated 15 sec ago

Aramco forms JV with Chinese entities to construct refinery, petchem complex 

Aramco forms JV with Chinese entities to construct refinery, petchem complex 

RIYADH: Global energy giant Saudi Arabian Oil Co. has inked a deal with China’s Norinco Group and Panjin Xincheng Industrial Group to form a joint venture to construct a refinery and petrochemical complex in the Asian giant’s Liaoning province. 

Saudi Aramco will own 30 percent stakes in the joint venture called Hujain Aramco Petrochemical Co., while Norinco Group and Panjin Xincheng Industrial Group will hold 51 percent and 19 percent shares respectively, said a press release.

It noted that the facility in the city of Panjin will combine a 300,000 barrels per day refinery and a petrochemical plant with an annual production capacity of 1.65 million metric tons of ethylene and 2 million metric tons of paraxylene. 

“We see a major win-win opportunity to build a world-leading, integrated downstream sector in China, with special emphasis on the high conversion of liquids directly into chemicals as part of our broader liquid-to-chemicals business expansion plans,” said Aramco CEO Amin Nasser. 

He added: “This important project will support China’s growing demand across fuel and chemical products. It also represents a major milestone in our ongoing downstream expansion strategy in China and the wider region, which is an increasingly significant driver of global petrochemical demand.”

Aramco will supply up to 210,000 barrels per day of crude oil feedstock to the Liaoning refinery project. The construction of this new refinery will begin in the second quarter of 2023, and it is expected to be fully operational by 2026.

Norinco Group Deputy General Manager Zou Wenchao said that the new venture will “play an important role in deepening economic and trade cooperation between China and Saudi Arabia and achieving common development and prosperity.”

“The project is of great significance for Panjin to promote increasing chemicals and specialty products, strengthening the integration of the refining and chemical industry. It is a symbolic project for Panjin as it seeks to accelerate the development of an important national petrochemical and fine chemical industry base,” said Jia Fei, Panjin Xincheng chairman of the board.


Dubai Customs’ Consultative Council approves Agenda D33 to double its economy by 2033 

Dubai Customs’ Consultative Council approves Agenda D33 to double its economy by 2033 
Updated 9 min 3 sec ago

Dubai Customs’ Consultative Council approves Agenda D33 to double its economy by 2033 

Dubai Customs’ Consultative Council approves Agenda D33 to double its economy by 2033 

RIYADH: The Dubai Customs’ Consultative Council has commended the Dubai Economic Agenda D33 which aims to double Dubai’s economy under 100 transformative projects by 2033. 

The initial set of projects includes doubling Dubai’s foreign trade volume and adding 400 cities to its global trade map. 

The council also emphasized the importance of collaboration between the public and private sectors to achieve these objectives. 

Members of the council noted that the agenda will enhance Dubai's competitiveness and reinforce its central position in the global economy, further solidifying its status as the preferred destination for businesses and traders. 

The council’s goal is to offer innovative and intelligent services to streamline customs procedures and facilitate traders in line with Dubai’s vision. 

Dubai Customs completed 26 million customs transactions in the first quarter of the year, representing huge growth, according to WAM. 

Dubai International Airport was the world's top airport for international passengers, with a 127 percent increase from 29.1 million passengers in 2021 to 66 million passengers in 2022. 


Telecom operator Zain KSA posts record profit of $147m in 2022 

Telecom operator Zain KSA posts record profit of $147m in 2022 
Updated 43 min 45 sec ago

Telecom operator Zain KSA posts record profit of $147m in 2022 

Telecom operator Zain KSA posts record profit of $147m in 2022 

RIYADH: Profits of Zain KSA, formally known as Mobile Telecommunication Co. Saudi Arabia, reached a record high of SR550 million ($146.7 million) in 2022.  

The telecom operator’s profit surged 157 percent from SR214 million in the same period a year earlier on the back of higher revenue, according to a filing to the Saudi Exchange. 

Its revenue rose from SR7.9 billion in 2021 to SR9 billion in 2022, driven by growth in business-to-business, 5G and other revenue streams.  

In addition, revenue increased due to the post-pandemic return of international visitors and the growth in Tamam revenue. 

“Zain KSA’s 2022 financial results reflect the qualitative shift in its financial, operational, and developmental performance, as well as the ongoing impact of its strategy,” said Chairman Naif Al Kabeer. 

He added that this achievement was led by enhancing customer experience and expanding in future technologies.  

It was also backed by investing in parallel markets while continuing to strengthen governance to ensure sustainable growth and earnings, noted the chairman.  

The filing added that despite a 25 percent increase in the cost of revenues during that year, the gross profit rose by SR431 million or 9 percent. 

Furthermore, the company’s operating expenses rose by SR404 million, while amortization and depreciation dropped by SR364 million.  

This was “due to the reclassification of the tower's assets to assets held for sale concerning the announced disposal plan of the telecom towers,” noted the bourse statement.  

To develop the quality of services provided to its clients, the company invested a capital expenditure of SR915 million in 2022.  

Zain KSA’s financing cost increased by SR85 million last year, due to the increase in the reference price of the financing cost in Saudi riyals known as SIBOR, and the reference price of the financing cost in US dollars known as LIBOR.  

For the fiscal year 2022, the company’s board of directors recommended the distribution of a 5 percent cash dividend, or SR0.5 per share.  

The Saudi telecom company also suggested SR449.4 million of cash dividends distributed to shareholders, for 898.7 million shares.  

Zain KSA succeeded in achieving the targets it set five years ago, making 2022 a year of qualitative transformation in the telco's operations and profits, noted its CEO Sultan Al-Deghaither. 


Saudi Arabia welcomed 2.5m foreign visitors in February 

Saudi Arabia welcomed 2.5m foreign visitors in February 
Updated 26 March 2023

Saudi Arabia welcomed 2.5m foreign visitors in February 

Saudi Arabia welcomed 2.5m foreign visitors in February 

RIYADH: The number of foreign visitors who arrived in Saudi Arabia increased to 2.5 million in February from 2.4 million in January, according to the minister of tourism. 

Speaking at the fifth monthly virtual meeting with investors and citizens in the tourism sector, Ahmed Al-Khateeb stated that the Kingdom has recorded “historical figures,” in terms of occupancy rates and the number of visitors.  

He said that the ministry had trained over 100,000 young Saudi men and women with SR400 million ($106.48 million) spent to upskill them. He added that “their employment is the responsibility of the ministry and hence everyone should cooperate to achieve this goal.”  

Al-Khateeb highlighted the importance of industry players to adhere to new regulations set by the ministry, adding that “the ministry will play its role in terms of monitoring and imposing penalties on violators, especially violations of tourist guides.”  

“The ministry is keen to have qualified guides working in this field, who must have acquired correct, sufficient, accurate and flawless information,” he stated.  

Om Dec. 26, the Ministry of Tourism launched 10 new regulations to develop the tourism sector to keep pace with the growth that Saudi Arabia is witnessing in diverse fields.  

The new regulations encompass the tourism hospitality facility, travel and tourism services, tourist guides, tourism hospitality facilities management, tourism consultancy, private tourist hospitality facility, experimental activities, an inspection of tourism activities, and the committees to consider violations of the tourism law and tourist destinations.  

Al-Khateeb stressed that the regulations issued by the ministry are clear, and must be adhered to by all workers in the sector without exception.   


Saudi Arabia allocates over $80bn for water projects 

Saudi Arabia allocates over $80bn for water projects 
Updated 26 March 2023

Saudi Arabia allocates over $80bn for water projects 

Saudi Arabia allocates over $80bn for water projects 

RIYADH: Saudi Arabia has allocated a budget of more than $80 billion to implement hundreds of water projects in the coming years, revealed a top minister.

The allocation is part of efforts to achieve universal access to safe and affordable drinking water for all, according to the Deputy Minister for Water at the Ministry of Environment, Water and Agriculture. 

The Kingdom's water requirements, estimated at 24.8 billion cubic meters in 2015, are witnessing a steady annual increase of 7 percent. The agricultural sector represents the largest consumer of water in the Kingdom, accounting for 84 percent of the total water demand. 

Deputy Minister Abdulaziz Al-Shaibani affirmed that Saudi Arabia is on track to meet the UN Sustainable Development Goals by 2030 due to water sector reorganization and the formulation of the National Water Strategy. 

The national strategy aims to maintain water resources, protect the environment, and deliver high-quality, efficient services. Its objectives are consistent with SDG6 in terms of ensuring global access to clean and safe water. 

"The Kingdom aspires to provide sanitation services to all by increasing the percentage of the population covered by sanitation services to be more than 95 percent by 2030. Saudi Arabia also established the National Water Efficiency and Conservation Center,” Al-Shaibani said at the UN 2023 Water Conference in New York. 

The Deputy Minister also highlighted that sustainable and resilient water management was on the G20 agenda. He emphasized that the Kingdom is on track to enhance agricultural water demand management to meet SDG6. 

The strategy has 10 programs, including the involvement of the private sector in production and wastewater treatment, which focuses on pooling production and wastewater treatment assets to privatize them. 

Furthermore, Saudi Arabia allocated $40 billion for water projects within the five-year capital portfolio of the environment in July last year. The five-year capital portfolio includes 1,335 projects.