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Egypt, UAE Sign Deal to Produce Electricity with $10b Worth of Investments

A microbus passes between giant blades to generate electricity with the wind in the Egyptian Red Sea Governorate. (Reuters) 
A microbus passes between giant blades to generate electricity with the wind in the Egyptian Red Sea Governorate. (Reuters) 
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Egypt, UAE Sign Deal to Produce Electricity with $10b Worth of Investments

A microbus passes between giant blades to generate electricity with the wind in the Egyptian Red Sea Governorate. (Reuters) 
A microbus passes between giant blades to generate electricity with the wind in the Egyptian Red Sea Governorate. (Reuters) 

Egypt and the UAE signed a deal Tuesday for a wind energy project to produce electricity, with direct investments of more than $10 billion.

Middle East News Agency reported that Egyptian Prime Minister Mostafa Madbouly and Emirati Minister of Industry and Advanced Technology Sultan Al Jaber attended the signing of the project.

The project has a production capacity of 10 gigawatts.

It will be developed by a consortium led by Masdar and including Infinity Power and Hassan Allam Utilities.

CEO of Masdar Mohammed Al-Ramahi said during a press conference broadcast by the Egyptian state channel, that the project would bring direct investments of more than $10 billion and would save $5 billion worth of gas used annually to generate electricity.

Ramahi added that fossil fuel would contribute to providing energy sources, noting that renewable energy transmission needs decades.

This transmission would occur in phases to ensure energy security and the economic feasibility of using the energy sources within a diverse portfolio that protects the environment, he added.

This agreement is part of the MoU signed between the two countries during COP27 which was held in Sharm Sheikh in November.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.