Egypt Raises Minimum Wage by 50% as Part of ‘Urgent’ Package

 People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
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Egypt Raises Minimum Wage by 50% as Part of ‘Urgent’ Package

 People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)
People attend to the 55th edition of Cairo International Book Fair, at Egypt's International Exhibition Center, in Cairo, Egypt, February 6, 2024. (Reuters)

Egyptian President Abdel Fattah al-Sisi has raised the monthly minimum wage by 50% to 6,000 pounds ($194) to take effect in March, part of a 180 billion pound "urgent social protection package", the presidency said on Wednesday.

The move comes at a time when Egypt is on a pound devaluation watch. Some analysts said a 200 basis point interest rate hike by the central bank last week may indicate a devaluation is on the way.

The Egyptian pound, fixed at 30.85 to the dollar since March, traded on the black market earlier this month as low as 71 to the dollar, but has strengthened since then to about 60.

Sisi also directed the government to raise the tax threshold by 33%, from 45,000 pounds to 60,000 pounds, for all employees in the public and private sectors, the presidency statement said.

The social package included an added increase in the wages of state workers by a minimum ranging from 1,000 to 1,200 pounds per month, as of March.

The International Monetary Fund said on Thursday it had agreed with Egypt on the key policy components of an economic reform program, in a further sign that a final deal to augment a $3 billion loan is nearing completion.

Egypt has been suffering from a slow-burning economic crisis and chronic shortage of foreign currency and has been in talks with the IMF for the last two weeks to revive and expand the loan agreement signed in December 2022.

The agreement included pledges that Egypt would move to a flexible exchange rate regime and reduce the state's footprint in the economy while boosting the private sector.

However, disbursements under the program are subject to eight reviews, the first and second of which were scheduled last year but postponed as the exchange rate has remained steady.

The IMF mission chief for Egypt, Ivanna Vladkova Hollar, said last Thursday that the two sides made "excellent progress" in discussions of a comprehensive policy package needed to reach a Staff Level Agreement for the combined first and second reviews.

The Egyptian government in January raised prices of several services including electricity, metro tickets and telecommunication services as it tries to contain a budget deficit.

Egypt's already weak economy has suffered from the Gaza crisis, which dampened tourism and decreased shipping through the Suez Canal, a major source of foreign currency.

The country's net foreign reserves saw a slight rise to $35.25 billion in January from $35.22 billion in December, the central bank said on Monday, while annual headline inflation slid to 33.7% in December from 34.6% in November and a historic high of 38.0% in September, according to the state statistics agency CAPMAS. 



Saudi Arabia Signs New Port Contracts Worth Over $586 Million

Acting President of Mawani Mazen Al-Turki (Asharq Al-Awsat) 
Acting President of Mawani Mazen Al-Turki (Asharq Al-Awsat) 
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Saudi Arabia Signs New Port Contracts Worth Over $586 Million

Acting President of Mawani Mazen Al-Turki (Asharq Al-Awsat) 
Acting President of Mawani Mazen Al-Turki (Asharq Al-Awsat) 

Saudi Arabia’s General Authority for Ports (Mawani) has signed a series of new build-operate-transfer (BOT) contracts worth more than SAR 2.2 billion ($586.6 million) to develop multi-purpose cargo terminals at eight of the Kingdom’s ports.

Acting President of Mawani, Mazen Al-Turki, announced the deals during a signing ceremony held on Monday, describing the move as another milestone in Saudi Arabia’s continued infrastructure development under government leadership.

These 20-year contracts are part of a strategic public-private partnership, bringing together local and international investors to enhance operational capabilities and increase the handling capacity of Saudi ports. The initiative aligns with the objectives of the National Transport and Logistics Strategy, which seeks to position the Kingdom as a global logistics hub.

Al-Turki emphasized that these new agreements build upon previous privatization deals, including the development of container terminals at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with investments exceeding SAR 16 billion. The Authority has also signed agreements to develop 20 logistics zones across the country, backed by over SAR 10 billion in investments.

He added that the latest contracts reflect the significant transformation and strategic evolution of Saudi Arabia’s ports, contributing to improved international performance indicators and reinforcing the Kingdom’s role as a key player in the global maritime industry.

Minister of Transport and Logistics Services and Chairman of Mawani, Eng. Saleh Al-Jasser, noted that the growing flow of private-sector investment demonstrates the attractiveness of Saudi ports and the logistics sector. He highlighted recent advancements in operational efficiency and maritime connectivity, supported by major global and national companies.

Al-Jasser affirmed that the Kingdom’s transport ecosystem will continue expanding its partnerships with the private sector across all regions and domains, with the new contracts marking the continuation of strategic collaborations with leading global and local port operators.

Under the newly signed contracts, the Saudi Global Ports Company will develop, manage, and operate multi-purpose terminals at east coast ports, including King Abdulaziz Port in Dammam, Jubail Commercial Port, King Fahd Industrial Port in Jubail, and Ras Al Khair Port.

Meanwhile, Red Sea Gateway Terminal will handle similar operations on the west coast, covering Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port in Yanbu, and Jazan Port.

At King Fahd Industrial Port in Yanbu, the agreements include modernizing cargo handling with state-of-the-art STS and RTG cranes, reach stackers, trucks, and trailers, aimed at reducing truck turnaround times, vessel berthing durations, and boosting overall efficiency.