Egypt advances 36 positions in global aviation rankings amid $626m investment outlay

Egypt advances 36 positions in global aviation rankings amid $626m investment outlay
The country’s rise from 63rd place in 2015 underscores the nation’s commitment to establishing itself as a global air transport hub. Shutterstock
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Updated 08 December 2024
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Egypt advances 36 positions in global aviation rankings amid $626m investment outlay

Egypt advances 36 positions in global aviation rankings amid $626m investment outlay
  • Egypt’s Civil Aviation Ministry had earmarked $626.7 million for projects aimed at enhancing airport facilities
  • Egypt has increased its airport capacity by 28.5%, accommodating 66.2 million passengers in 2023, up from 51.5 million

RIYADH: Egypt’s aviation sector has risen 36 positions in the Air Transport Infrastructure Index, reaching 27th place globally in 2024, highlighting significant progress in the industry.

A report from the Cabinet’s Media Center emphasizes that the country’s rise from 63rd place in 2015 underscores the nation’s commitment to establishing itself as a global air transport hub and improving its aviation infrastructure.

The analysis, released on Dec. 7, International Civil Aviation Day, stated that Egypt’s Civil Aviation Ministry had earmarked 31.3 billion Egyptian pounds ($626.7 million) for projects aimed at enhancing airport facilities, modernizing navigation systems, and strengthening safety measures, with completion targeted by June 2027.

“The Egyptian state is committed to enhancing the air transport system, a vital sector that supports the national economy,” the Cabinet said in a statement.

The report highlighted improvements in Egypt’s aviation sector. In the Air Transport Services Efficiency Index, Egypt rose to 23rd in 2024, compared to 40th in 2019. Similarly, the country advanced to 31st in the Airport Connectivity Index in 2024, up from 38th in 2019.

Since 2014, Egypt has increased its airport capacity by 28.5 percent, accommodating 66.2 million passengers in 2023, up from 51.5 million. The addition of four new travel facilities has further bolstered this growth.

Sphinx International Airport has a capacity of 900 passengers per hour, while Berenice International Airport can handle 600 passengers per hour. Both Bardawil and Capital International Airports accommodate 300 passengers per hour.

Several key projects are transforming Egypt’s aviation landscape. At Cairo International Airport, the baggage handling capacity was increased from 4,800 to 12,000 bags per hour.

Borg El Arab Airport saw the opening of a new terminal, expanding its capacity from 1.2 million to 6 million passengers annually. Sharm El Sheikh Airport’s capacity was also increased to 10 million passengers annually.

Additionally, radar systems now cover 83 percent of Egypt’s airspace, with investments totaling €206.6 million.

As part of its strategy to boost operational efficiency, Egypt began transferring the management of its airports to the private sector in March.

Civil Aviation Minister Mohamed Abbas Helmy announced plans to issue an international tender for operating major airports, including Cairo International Airport, marking a broader effort to enhance private sector involvement in logistics and transportation assets.

Egypt’s aviation development plan reflects a strategic vision to improve infrastructure, strengthen its global air transport network, and support economic growth.


ESG sukuk set to cross $50bn in 2025: Fitch Ratings

ESG sukuk set to cross $50bn in 2025: Fitch Ratings
Updated 21 January 2025
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ESG sukuk set to cross $50bn in 2025: Fitch Ratings

ESG sukuk set to cross $50bn in 2025: Fitch Ratings

RIYADH: The global issuance of environmental, social, and governance sukuk is expected to surpass $50 billion outstanding in 2025, driven by Islamic finance markets in countries including Saudi Arabia, according to an analysis. 

In its latest report, Fitch Ratings said the global value of Shariah-compliant bonds focused on ESG expanded by 23 percent year on year to $45.2 billion outstanding in 2024. This growth outpaced global ESG bonds, which saw a 16 percent increase. The analysis added that countries such as the UAE, Indonesia, and Malaysia would play a key role in driving the growth of ESG sukuk.

These bonds are investments in renewable energy and other environmental assets and are considered key debt instruments as the world moves toward a greener future. 

“The ESG sukuk market has a robust credit profile, with nearly all Fitch-rated ESG sukuk being investment grade,” said Bashar Al Natoor, global head of Islamic Finance at Fitch Ratings. 

He added: “Sukuk is now a key ESG funding tool in emerging markets, with growth expected amidst sustainability initiatives, funding needs, and a favorable funding environment. However, issuances remain concentrated in a handful of countries.”

ESG sukuk expansion also outpaced global sukuk growth, which witnessed a 10 percent increase in 2024. 

The US-based credit rating agency added that green and sustainable sukuk could help issuers opportunistically tap demand from ESG-sensitive international investors from the US, Europe, and Asia, as well as sukuk-focused Islamic investors from the Gulf Cooperation Council region. 

Several factors, including funding diversification goals, enabling regulations, sustainability initiatives, and net-zero targets pursued by sovereigns, banks, and corporations, as well as government-related entities, could boost the issuance of this debt product in 2025.

The analysis revealed that ESG sukuk is also likely to cross 15 percent of global dollar sukuk issuance in the medium term. 

The report also highlighted the impact of the adoption of Accounting and Auditing Organization for Islamic Financial Institutions’ Sharia Standard 62. 

“Risks facing ESG sukuk market growth include Shariah-compliance complexities, such as linked to AAOIFI Sharia Standard No. 62, weakening sustainability drives, geopolitical risks, and oil volatilities,” said Fitch Ratings. 

This AAOIFI guideline, which was published as an exposure draft in late 2023, aims to standardize various aspects of the sukuk market, including asset backing, ownership transfer, and trading procedures.

Earlier this month, S&P Global said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as the Kingdom and Indonesia. 

In December, a report by Kamco Invest projected that Saudi Arabia would face the largest share of bond maturities in the GCC region from 2025 to 2029, reaching an estimated $168 billion.


WEF panel explores ways to drive economic growth in uncertain times  

WEF panel explores ways to drive economic growth in uncertain times  
Updated 21 January 2025
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WEF panel explores ways to drive economic growth in uncertain times  

WEF panel explores ways to drive economic growth in uncertain times  

DUBAI: The World Bank Group’s forecast suggests that between 2024 and 2026, countries that collectively account for more than 80 percent of the world’s population and global GDP will still be growing more slowly than they did in the decade before COVID-19.

Moreover, new trade barriers introduced have nearly tripled since 2019, according to the UN.

In this environment, how do global economies find growth? That was the question being explored by a World Economic Forum panel “Finding Growth in Uncertain Times” in Davos.

Moderated by WEF President and CEO Borge Brende, the panel featured Ngozi Okonjo-Iweala, director-general of the World Trade Organization; David Rubenstein, co-founder and co-chairman of global investment firm Carlyle; Marcus Wallenberg, chairman of Swedish bank Skandinaviska Enskilda Banken and Khaldoon Khalifa Al-Mubarak, group CEO, Mubadala Investment Company.

Okonjo-Iweala laid out four requirements for growth: maintaining or restoring macroeconomic stability and good management including fiscal consolidation; openness and predictability of global markets, which requires strengthening resilience in economies; “re-globalization,” which means decentralizing and diversifying supply chains; and lastly, adopting technology and AI, which will increase productivity and lower trade costs in a way that allows for double-digit growth in trade from now until 2040.

There are many questions about US policy with President Donald Trump stepping into office on Monday. Rubenstein addressed some of these questions and concerns saying that in just a day, Trump has issued several executive orders.

“I think you will see him (Trump) doing a lot of fairly robust things that might not have been anticipated before,” he said.

He went on to explain some of the new administration’s policies, such as tax cuts, aimed at spurring growth; imposing tariffs as a negotiation tool for greater trade cooperation; and increasing production of natural gas and oil, which is already at its highest in the country.

“The biggest impediments to growth,” not just for the US but globally, are the wars in the Middle East, Rubenstein said.

He added: “The US’s problems are not the biggest problems. The biggest challenge for economic growth around the world is the Global South, which, because of the challenges of the last 15 years went further behind the developed markets than desired.”

The US is feeling “fairly bullish” about the economy for the near future, and so, it has to ensure it is helping out other countries in terms of wars and access to technology, Rubenstein added.

Europe, on the other hand, is lagging behind with weak growth forecasts. This is partly due to Europe not being as competitive, according to Wallenberg.

He said: “Over the years, Europe has tended to perhaps not understand our competitive situation and the strategic position that we find ourselves (in) with a very strong United States and a very strong China, and therefore our competitiveness has been challenged.”

Wallenberg pointed out that Europe is a rather larger market, which means there is potential for scale. But first, it needs to revive its confidence as well as that of its consumers along with “a singular capital market that is unified” and “a number of institutions that can provide more risk capital,” among other things.

“We have all the ingredients to make it happen,” he said. “Now, we just have to stand up and get it done.”

Turning to the Middle East, Mubadala’s Al-Mubarak underlined the importance of sovereign wealth funds.

Because they are “highly capitalized” and have a “high liquidity position” as well as the ability to think and invest long term, sovereign funds are becoming more and more important to support global growth, he said.

He explained why the UAE is a good example of a growth story. For example, its capital Abu Dhabi was rated the safest city in the world for the seventh year running; it ranked fifth globally in AI competitiveness according to a Stanford study; and it recorded the largest inflow of high-net-worth individuals globally in 2024, he said.

The UAE sets the example of “growth in this new world,” particularly “how to create growth and diversify from one sector to a multi-faceted economy,” Al-Mubarak said.

 


Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 
Updated 21 January 2025
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Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

Closing Bell: Saudi Arabia’s Tadawul ends slightly lower at 12,370 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly lower on Tuesday, dipping 0.08 percent, or 9.91 points, to settle at 12,369.63.  

Trading turnover on the main market reached SR6.92 billion ($1.84 billion), with 133 stocks advancing and 97 declining.  

The Kingdom’s parallel market, Nomu, also shed 27 points to close at 31,317.97, while the MSCI Tadawul Index slipped 0.17 percent to 1,549.08. 

The best-performing stock on the main market was Rasan Information Technology Co., with its share price rising 9.99 percent to SR88.10. 

Other top gainers included Saudi Cable Co., which rose 9.97 percent to SR128, and Walaa Cooperative Insurance Co., up 6.24 percent to SR22.80. 

Conversely, ACWA Power Co.’s share price fell 3.49 percent to SR420. 

On the announcements front, Al Jouf Cement Co. said it has signed a SR38 million agreement with Mohammed Shahi Al-Ruwaili Contracting to export various types of cement and clinker to Syria. 

According to a statement on Tadawul, the contract will be effective from Feb. 1 to Feb. 28, 2026. 

The company noted that the agreement's financial impact will be reflected in its performance from the first quarter of 2025 through the first quarter of 2026. 

Al Jouf Cement Co.’s share price rose 1.42 percent to SR11.46. 

Scientific and Medical Equipment House Co., known as Equipment House, announced securing a SR105.07 million tender to maintain and repair medical devices and equipment in hospitals and health centers under the Riyadh First Health Cluster. 

According to a Tadawul statement, the contract covers King Salman Hospital, Al Iman Hospital, and Imam Abdulrahman Al Faisal Hospital, as well as the Convalescent Hospital, and various dental complexes. 

The company noted that the financial impact of the deal will be reflected starting in the second quarter of this year. 

Scientific and Medical Equipment House Co.’s share price edged up by 0.19 percent to SR52.20.  

Aldrees Petroleum and Transport Services Co. reported a net profit of SR338 million for 2024, marking a 20.37 percent increase compared to the previous year.

The company attributed the profit growth to a 30 percent rise in revenues driven by stronger sales in its petrol and transport segments. 

Aldrees, listed on Saudi Arabia’s main index, also announced that its shareholders recommended a cash dividend of SR1.5 per share for 2024. 

The company’s share price rose 4.20 percent to close at SR129. 


Crude falls on US tariff reprieve, stronger dollar

Crude falls on US tariff reprieve, stronger dollar
Updated 21 January 2025
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Crude falls on US tariff reprieve, stronger dollar

Crude falls on US tariff reprieve, stronger dollar

LONDON: Oil prices fell on Tuesday as investors assessed US President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the US.

Brent crude futures were down $1.42, or 1.77 percent, to $78.73 per barrel at 1116 GMT. US West Texas Intermediate crude futures were down by $1.97, or 2.53 percent, at $75.91. There was no settlement in the US market on Monday due to a public holiday.

Pressuring prices on Tuesday was a stronger US dollar, as its strengthening makes oil more expensive for holders of other currencies.

Trump did not impose any sweeping new trade measures right after his inauguration on Monday, but told federal agencies to investigate unfair trade practices by other countries.

The US president also said his administration would “probably” stop buying oil from Venezuela.

Trump also promised to refill strategic reserves, a move that could be bullish for oil prices by boosting demand for US crude oil.

Also weighing on prices on Tuesday was the potential end to the shipping disruption in the Red Sea. Yemen’s Houthis on Monday said they will limit their attacks on commercial vessels to Israel-linked ships provided the Gaza ceasefire is fully implemented.


Aramco chief expects additional oil demand of 1.3m bpd this year

Aramco chief expects additional oil demand of 1.3m bpd this year
Updated 21 January 2025
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Aramco chief expects additional oil demand of 1.3m bpd this year

Aramco chief expects additional oil demand of 1.3m bpd this year
  • Asked about US sanctions on Russian crude tankers, he said the situation was still at an early stage

DAVOS, Switzerland: Saudi oil giant Aramco’s Chief Executive Amin Nasser said on Tuesday he sees the oil market as healthy and expects an additional 1.3 million barrels per day of demand this year.
Speaking to Reuters on the sidelines of the World Economic Forum in Davos, Nasser was responding to a question on the impact of US President Donald Trump’s energy decisions, which could increase US hydrocarbon output.
Oil demand this year will approach 106 million barrels per day after averaging about 104.6 million barrels per day in 2024, he said.
“We still think the market is healthy ... last year we averaged around 104.6 million barrels (per day), this year, we’re expecting an additional demand of about 1.3 million barrels ... so there is growth in the market,” he said.
Asked about US sanctions on Russian crude tankers, he said the situation was still at an early stage.
“If you look at the impacted barrels, you’re talking about more than 2 million barrels,” he said. “We will wait and see how would that translate into tightness in the market, it is still in the early stage.”
Asked if China and India have sought additional oil volumes from Saudi Arabia on the back of the sanctions, Nasser said Aramco is bound by the levels the kingdom’s energy ministry allows it to pump. Saudi Arabia has been pumping at about three quarters of its output capacity, as part of agreements with OPEC+ to support the market.
“The kingdom and the Ministry of Energy is always looking at balancing the market. They take that into account when they give us the target of how much we should put in the market,” he said.
Aramco is working with MidOcean, an LNG firm in which it took a 51 percent stake, and “looking at expanding our position globally in LNG,” without giving details, Nasser said.