Egyptian Pound Stable After Devaluation, IMF Deal 

A deliveryman balances a tray of freshly baked bread while riding his bicycle along the al-Darb al-Ahmar district in the old quarters of Cairo on March 6, 2024. (AFP)
A deliveryman balances a tray of freshly baked bread while riding his bicycle along the al-Darb al-Ahmar district in the old quarters of Cairo on March 6, 2024. (AFP)
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Egyptian Pound Stable After Devaluation, IMF Deal 

A deliveryman balances a tray of freshly baked bread while riding his bicycle along the al-Darb al-Ahmar district in the old quarters of Cairo on March 6, 2024. (AFP)
A deliveryman balances a tray of freshly baked bread while riding his bicycle along the al-Darb al-Ahmar district in the old quarters of Cairo on March 6, 2024. (AFP)

Egypt's currency was stable at around 49.5 pounds to the dollar as the market opened on Thursday, a day after the central bank let the currency plunge and pledged to shift to a more flexible exchange rate system as the country secured an expanded $8 billion program with the International Monetary Fund.

The pound stayed in the same range it had settled at near closing on Wednesday, LSEG data showed. Before Wednesday's devaluation and a steep interest rate hike, the central bank had held the currency for about a year at just under 31 pounds to the dollar.

A more flexible exchange rate, long a key demand from the IMF, is seen as crucial for restoring investor confidence in an economy that has been hobbled for the last two years by a foreign currency shortage.

Egypt has promised such a move in the past, only to resume holding the currency at a fixed rate.

The central bank says sufficient funding has been secured to ensure foreign exchange liquidity. Its governor told reporters on Wednesday that it would still have the ability to intervene, as in other countries, in the case of "illogical movements".

The IMF, which agreed to add $5 billion to its existing $3 billion loan program with Egypt, has said it is looking for a sustainable, unified, and market determined exchange rate.

Under the program, Egypt has committed to undertake structural reforms to stabilize prices, manage the debt burden and encourage private-sector growth.

The pound's de-facto devaluation and the agreement with the IMF come two weeks after Egypt signed a deal with Emirati sovereign fund ADQ that it said will bring $35 billion of investments over two months, including the conversion of $11 billion in existing deposits.

The foreign currency shortage has curbed local business activity and led to backlogs at ports and delays in commodity payments.

Remittances from Egyptians working abroad, the country's top single source of foreign currency, slowed sharply last year amid expectations that the pound would fall.

Since early 2022, when the foreign currency shortage worsened, the pound has now lost more than two-thirds of its value against the dollar in a series of staggered devaluations.



Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
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Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 

Saudi Arabia’s ambitious economic diversification drive under Vision 2030 continues to deliver solid results, with the National Industrial Development and Logistics Program (NIDLP) reporting a significant contribution of $262 billion to the Kingdom’s non-oil GDP in 2024.

According to NIDLP’s annual report, the program’s activities contributed 986 billion Saudi riyals ($263 billion), representing 39% of the non-oil GDP. This marks a rise from 949 billion riyals ($253 billion) in 2023. Overall, non-oil activities accounted for about 55% of the Kingdom’s total GDP.

The report highlights substantial growth in core NIDLP sectors. The manufacturing sector expanded by 4%, while mining, transportation, and storage sectors saw a 5% increase.

Non-oil exports surged to 514 billion riyals ($137 billion), reflecting a 13.2% year-on-year increase. These exports included 217 billion riyals ($58 billion) in goods, 91 billion riyals ($24.3 billion) in re-exports, and 207 billion riyals ($55.2 billion) in service exports. Among the leading manufactured exports were chemical products at 78.5 billion riyals ($20.9 billion), metals and metal products at 23.3 billion riyals ($6.2 billion), food and beverages at 10.5 billion riyals ($2.8 billion), and electrical equipment exports reaching 42.9 billion riyals ($11.4 billion).

Employment in sectors under the NIDLP umbrella reached 2.43 million workers in 2024, with 508,000 new jobs created, 81,000 of which were taken up by Saudi nationals.

Private sector investment in NIDLP industries totaled 665 billion riyals ($177.3 billion). The Saudi Industrial Development Fund approved loans worth 198 billion riyals ($52.8 billion), while the Saudi Export-Import Bank provided credit facilities valued at 69.14 billion riyals ($18.4 billion).

By the end of 2024, the number of industrial facilities in the Kingdom reached 12,500, while ready-built factories totaled 1,511. Cumulative investments in industrial cities and special economic zones reached 1.412 trillion riyals ($376.5 billion).

Domestic military industries also recorded notable gains, with local sales totaling 34.32 billion riyals ($9.15 billion). The Kingdom continues to push for localization across value chains, including sectors like medical supplies, automotive manufacturing, energy products, and petrochemicals.

Saudi Arabia launched renewable energy projects with a combined capacity of 20 gigawatts in 2024. New solar power agreements were signed for an additional 3.7 GW, while 3.6 GW of new capacity was brought online. A record-low global price for wind energy was achieved, contributing to an annual reduction of 1.7 million tons in carbon emissions.

In the mining sector, exploration spending rose to 228 riyals ($60.8) per square kilometer. Competitive bidding for mining sites increased by 380% compared to the previous year. The sector is targeting a GDP contribution of 176 billion riyals ($46.9 billion) and the creation of 219,000 jobs by 2030.

Logistics continues to emerge as a strategic pillar of the Saudi economy. In 2024, the government issued 1,056 logistics licenses and expanded re-export centers from just 2 in 2019 to 23. Port utilization rose to 64%, while customs clearance times dropped to a mere two hours, strengthening Saudi Arabia’s bid to become a global logistics hub.

The program also exceeded key 2024 benchmarks. The localization rate of the defense industry reached 19.35%, surpassing the 12.5% target. Local content reached 1.23 trillion riyals ($328 billion), above the targeted 1.11 trillion riyals ($296 billion). Emerging industries recorded exports worth 135.6 billion riyals ($36.2 billion), with 3,100 final licenses issued, well above the target of 845 licenses.

The NIDLP currently oversees 284 initiatives, 163 of which have been completed, marking a 57% completion rate. This reflects the program’s strong progress in driving forward Vision 2030’s industrial and economic goals.