Suez Canal revenue hits record monthly high of $594m in boost to Egypt’s economy

Suez Canal revenue hits record monthly high of $594m in boost to Egypt’s economy
The income from the canal was about 25 percent higher than the $6.3 billion netted in 2021 (Shutterstock)
Short Url
Updated 21 February 2023

Suez Canal revenue hits record monthly high of $594m in boost to Egypt’s economy

Suez Canal revenue hits record monthly high of $594m in boost to Egypt’s economy

CAIRO: Egypt’s Suez Canal revenue saw a record high of 18.2 billion Egyptian pounds ($594 million) in December 2022, according to data released by the Central Agency for Public Mobilization and Statistics.

The figures come after the Suez Canal Authority announced 2022 delivered an all-time annual revenue record for the waterway, earning $8 billion in transit fees.

The income from the canal was about 25 percent higher than the $6.3 billion netted in 2021, following a series of toll hikes to help pad Egypt’s siphoned foreign reserves.

The canal is a source of much-needed foreign currency for Egypt, with global investors pulling billions out of the import-dependent economy during the current crisis triggered by Russia’s invasion of Ukraine last year.

Annual inflation hit 21.9 percent in December and the local currency has lost around half its value in less than a year in successive devaluations demanded as part of a $3 billion loan agreement with the International Monetary Fund.

Osama Rabie, chairman of the canal authority, said an average of 93 ships traversed the vital waterway daily during the aforementioned period carrying 1.41 billion tons of cargo.

The official attributed the boom in the canal’s traffic to the New Suez Canal project that helped increase the capacity of the waterway to receive giant ships and increased number of vessels.

Rabie said the North African country is steadily working to further expand the canal’s navigational course through the southern sector development project, which will improve navigational safety by 28 percent and increase the canal’s capacity.

This is in conjunction with the efforts to develop and modernize the fleet of marine units affiliated with the authority and adopt environmentally friendly procedures and policies, he added.

Connecting the Red Sea and the Mediterranean, the canal accounts for roughly 10 percent of global maritime trade and the majority of oil transported by sea.

Tolls were hiked three times last year for vessels traversing the man-made waterway, which is the fastest crossing from the Atlantic Ocean to the Indian Ocean.


SAMA grants Saudi firm license for finance aggregation services 

SAMA grants Saudi firm license for finance aggregation services 
Updated 16 sec ago

SAMA grants Saudi firm license for finance aggregation services 

SAMA grants Saudi firm license for finance aggregation services 

RIYADH: The Saudi Central Bank has granted Creative Future for Digital Brokerage a license to carry out finance aggregation services in the Kingdom.

The Saudi-based company will provide services through its platform that connects financing companies with clients based on credit obligation and solvency to offer them customized finance solutions. 

This is part of an initiative by the central bank – also known as SAMA – to entice a new segment of investors and companies that can bring added value to the sector while maintaining full adherence to the regulations and guidelines set by the bank. 

“SAMA reiterates its commitment to support the financial sector and FinTech for enhancing operational efficiency to promote financial inclusion for the various segments of the society in the Kingdom,” said a statement on the bank’s website. 

The licensing terms fall under SAMA’s Rules of Licensing Finance Support Activities that control and monitor related activities. 

The granting of licenses comes after Creative Future for Digital Brokerage successfully passed testing its digital solutions in SAMA’s regulatory sandbox – an experimental environment dedicated to innovative financial products and services in Saudi Arabia. 

“Granting licenses to Finance Aggregation Service Providers is a step towards achieving the objectives of the FinTech Strategy in its pursuit to be among the leading countries in FinTech,” SAMA’s website stated.

The bank’s licensing of fintech companies contributes to achieving the objectives of the Financial Development Sector strategy aligned with Vision 2030. 

The strategy, published last year, aims to bring the total number of operating fintech companies to 150 by the end of 2023 and to 525 by 2030. 

Last month, Riyadh-based fintech firm Raqamyah received a license from SAMA, to offer its debt-based crowdlending solutions to small and medium enterprises.  

The bank has been keen to promote financial stability in the Kingdom and drive economic growth through the development of the fintech sector. 

The strategy also pointed out that fintech is set to contribute to 20 percent of total foreign investments in the Kingdom. 

“The Kingdom's aspirations to become a global leader in the financial technology sector must be supported by a strategy that focuses on managing the financial transformation of the financial sector to achieve a long-term economic impact,” the strategy stated. 


Saudi Arabia hosts 120m event visitors as entertainment industry gains momentum  

Saudi Arabia hosts 120m event visitors as entertainment industry gains momentum  
Updated 52 sec ago

Saudi Arabia hosts 120m event visitors as entertainment industry gains momentum  

Saudi Arabia hosts 120m event visitors as entertainment industry gains momentum  

RIYADH: Saudi Arabia is fast becoming one of the leading entertainment hubs in the region, with the Kingdom hosting over 120 million people at events in the last four years, according to the chairman of the General Entertainment Authority.

Turki Al-Sheikh acknowledged that the backing received from the Crown Prince and Prime Minister Mohammed bin Salman for this crucial sector has resulted in GEA receiving numerous Guinness World Records certificates. 

He added that this paved the way for a significant number of employment opportunities in the Kingdom’s entertainment sector.    

This comes as the authority issued 11,136 licenses for a range of entertainment and supporting events following the launch of the new licensing system in August 2019, reported the Saudi Press Agency.   

Saudi Arabia’s new online system was created to simplify the process of applying for entertainment licenses.   

“The purpose of offering this range of licenses is to encourage investment in the entertainment sector, which is a vital and promising sector,” Sultan Al-Fakeer, the GEA’s chief operations officer said at the time of the launch.  

He added that the novel platform offers a clear and simple system through which to apply for the licenses.  

The permits are part of the efforts the Kingdom is making to stimulate investment in the entertainment sector and enhance economic activity to help achieve the strategic objectives of Vision 2030. 

The authority also put together the second edition of the International Qur’an and Adhan Competition — the largest of its kind in the world — during that period, stated Al-Sheikh.   

The event saw over 50,000 contestants, from 165 countries of the world, registering to participate in the competition when registration was opened in January this year.   

The GEA has provided prizes worth a total of SR12 million ($3.19 million), the largest prize money for such a competition globally.   

The chairman further noted that the total activities, taking in events, entertainment shows and live shows in restaurants and cafes, was around 8,732 from 2019 to the first quarter of 2023. As for the number of event days, they exceeded 76,000 with more than 1,381 concerts.   

He also added that a total of 470 entertainment destinations have been licensed in 42 cities and governorates around the country. This is in addition to around 1,402 restaurants with at least 3,728 permits that have been licensed in 50 cities and governorates in Saudi Arabia.   

Also, during that period, around 3,738 institutions regarding recreational and support activities have been issued licenses, 82 plays were held with 350 theatrical performances, and over 6,610 talented performers were permitted to take part in events. 


Saudi National Bank says its Credit Suisse investment has ‘no impact’ on growth plans or profits

Saudi National Bank says its Credit Suisse investment has ‘no impact’ on growth plans or profits
Updated 20 March 2023

Saudi National Bank says its Credit Suisse investment has ‘no impact’ on growth plans or profits

Saudi National Bank says its Credit Suisse investment has ‘no impact’ on growth plans or profits

RIYADH: Credit Suisse's largest shareholder Saudi National Bank has confirmed there is “no impact” on its growth plans or profitability after the troubled Swiss lender was bought out by UBS.

The SNB made a SR5.5 billion ($1.4 billion) investment in the bank in November 2022, but as of a month later it only represented 0.5 percent of the Saudi firm’s total assets and approximately 1.7 percent of its investments portfolio.

Banking giant UBS is buying Credit Suisse for almost $3.25 billion, in a deal orchestrated by regulators in an effort to avoid further market-shaking turmoil in the global banking system.

Swiss authorities pushed for UBS to take over its smaller rival after a plan for Credit Suisse to borrow up to 50 billion francs ($53.76 billion) failed to reassure investors and the bank’s customers.

In a statement to the Saudi stock exchange, SNB said: “Changes in the valuation of SNB's investment in Credit Suisse have no impact on SNB's growth plans and forward-looking 2023 guidance.”

Shares of Credit Suisse and other banks plunged after the failure of two banks in the US sparked concerns about other potentially shaky institutions in the global financial system.

Credit Suisse is among the 30 financial institutions known as globally systemically important banks, and authorities are worried about the fallout if it were to fail.

As of December 2022, the impact on SNB’s Capital Adequacy Ratio from the Mark-to-Market decline in Credit Suisse was an estimated 15 basis points with zero impact with regards to profitability.

However, with the new announcement, the potential impact to SNB’s Capital Adequacy Ratio is around 35 basis points also with zero impact when it comes to profitability.

That said, SNB also assured that any changes in the valuation of its investments in Credit Suisse will have no impact on SNB’s 2023 guidance nor its growth plans in the future.

With assets surpassing SR945 billion, SNB continues to have healthy capitalization and liquidity that remains above the prudential thresholds.


Wheat falls 1.3 percent, corn down as Black Sea grain export deal extended

Wheat falls 1.3 percent, corn down as Black Sea grain export deal extended
Updated 20 March 2023

Wheat falls 1.3 percent, corn down as Black Sea grain export deal extended

Wheat falls 1.3 percent, corn down as Black Sea grain export deal extended

SINGAPORE: Chicago wheat and corn futures slid on Monday, with prices under pressure after a deal to export grains from war-torn Ukraine was extended over the weekend, easing some of the concerns over global supply, according to Reuters

Soybeans ticked lower on ample supplies from newly harvested record crop in Brazil.

“There wasn’t huge amount of doubt about the Black Sea deal but as far as today’s market action goes, I think the extension of the deal is putting pressure on prices,” said Phin Ziebell, an agribusiness economist at National Australia Bank.

The most-active wheat contract on the Chicago Board of Trade was down 1.3 percent at $7.01 a bushel, as of 0342 GMT, and corn lost 1 percent to $6.28 a bushel.

Soybeans eased 0.3 percent to $14.71-3/4 a bushel.

The deal allowing the safe Black Sea export of Ukrainian grain was renewed on Saturday for at least 60 days — half the intended period — after Russia warned any further extension beyond mid-May would depend on the removal of some Western sanctions.

The pact was brokered with Russia and Ukraine by the United Nations and Turkiye in July and renewed for a further 120 days in November. The aim was to combat a global food crisis that was fueled in part by Russia’s Feb. 24, 2022, invasion of Ukraine and Black Sea blockade.

Brazil’s National Energy Policy Council on Friday raised the country’s mandatory blend of biodiesel in diesel to 12 percent starting in April, Mines and Energy Minister, Alexandre Silveira said.

The measure is expected to favor mainly the soybean processing industry, since about 65 percent of the total biodiesel was produced with soyoil in 2022.

Brazil’s record soybean crop this season will allow the nation to boost exports to China while also increasing domestic soybean processing, Andre Nassar, the chief of Brazil’s oilseed lobby Abiove, told Reuters.

Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week to March 7, regulatory data released on Thursday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans. 

Related


Saudi retail pharmacy chain Nahdi posts $236m profit for 2022 

Saudi retail pharmacy chain Nahdi posts $236m profit for 2022 
Updated 20 March 2023

Saudi retail pharmacy chain Nahdi posts $236m profit for 2022 

Saudi retail pharmacy chain Nahdi posts $236m profit for 2022 

RIYADH: Nahdi Medical Co., one of Saudi Arabia's leading retail pharmacy chains, recorded SR888 million ($236.40 million) in net profit for the fiscal year 2022, recording a 9.3 percent rise over the previous year. 

The company recorded revenue of SR8.6 billion for 2022, representing a 6.8 percent increase over the previous year. The company said the growth was primarily driven by the strong performance of the pharma segment, the return of religious tourism to normal levels, and other strategic initiatives. 

Commenting on the strong set of operational and financial results, CEO Yasser Joharji said: “2022 will be remembered as a landmark year in which we set new benchmarks, accelerated the delivery of our strategy, became a publicly listed company, grew our regional footprint, and added beats to the lives of more guests than ever before.” 

Nahdi’s gross profit for 2022 increased by 6.5 percent to reach SR3.52 billion, compared to last year. This helped the company deliver a gross margin of 40.9 percent maintaining the same level in 2021.   

During 2022, Nahdi maintained a zero-debt position and strong cash generation, with cash and cash equivalents sitting at over SR1 billion as of year-end. 

Its total assets increased to SR4.9 billion, a rise of 15.1 percent from SR4.3 billion at the end of 2021.   

“We remain on track to deliver on our medium-term financial guidance of achieving mid-single digit revenue growth and maintaining bottom-line margin in our core pharmaceutical retail business, while pursuing exponential growth in our emerging healthcare business, expanding our regional footprint, and launching our state-of-the-art IMDAD distribution center,” said Mohammed Alkhubani, the chief financial officer at Nahdi.   

Nahdi Medical Co.’s board of directors also declared a 30 percent cash dividend for the second half of 2022, at SR3 per share, the company said in a statement to Tadawul.