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EU Pledges Egypt 1 Billion Euros in Financial Aid

A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
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EU Pledges Egypt 1 Billion Euros in Financial Aid

A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)
A boy checks the calendula flowers, usually exported and used for cosmetics, pharmaceuticals, and traditional medicine, during the annual calendula flower harvest, at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. (Reuters)

The EU on Friday said it would provide Egypt with 1 billion euros ($1.07 billion) in short-term financial aid to help stabilize the country's economy.

Egypt agreed last month to an expanded $8 billion support program with the International Monetary Fund and a deal with the EU worth billions to boost cooperation and help curb migration, as it is struggling with a prolonged economic crisis linked to chronic foreign currency shortages.

The 1 billion euros in short-term aid is part of a bigger package worth 5 billion euros in loans, the statement said. Another 4 billion euros were scheduled as longer-term assistance over the period 2024-2027, but still had to be adopted by the bloc's 27 members.

The loan is meant to address Cairo's deteriorating fiscal situation and financial needs, notably after the outbreak of the Gaza war, the Houthi militia attacks in the Red Sea and the repercussions of Russia's war of aggression against Ukraine, the statement said.

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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.