20% Milestone Reached in Egypt-Saudi Electrical Link Project

Technicians lay a submarine cable. (Reuters)
Technicians lay a submarine cable. (Reuters)
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20% Milestone Reached in Egypt-Saudi Electrical Link Project

Technicians lay a submarine cable. (Reuters)
Technicians lay a submarine cable. (Reuters)

Dr. Ahmed Mohina, the First Undersecretary at Egypt’s Ministry of Electricity, revealed that the progress on the Egypt-Saudi Arabia electrical connection project has crossed the 20% mark.

The project aims to kick off operations by the second half of 2026 and is poised to lay the groundwork for a shared electricity market among Arab nations.

The collaboration between Egypt and Saudi Arabia on this project, initiated in 2012 is worth $1.8 billion, with Egypt contributing $600 million.

Funding comes from sources like the Kuwaiti Fund for Arab Economic Development, the Arab Fund for Economic and Social Development, the Islamic Development Bank, and Egypt's own resources.

Mohina assured that there are no financial obstacles, with each party funding its share. He highlighted ongoing work, including specialized studies for the submarine cable route.

This initiative represents a milestone for high-voltage power exchange in the Middle East and North Africa, linking Badr City in Egypt to Madinah via Tabuk in Saudi Arabia.

Mohina explained that Egypt’s peak power demand occurs at night, while Saudi Arabia’s peaks during the day. By connecting the two, they can exchange up to 3,000 megawatts, potentially extending the linkage to other Gulf countries.

The project involves building three high-voltage conversion stations and connecting them with overhead transmission lines and submarine cables in the Gulf of Aqaba.

According to the Egyptian government, the project promises a return on investment of over 13%, with an 8-year cost recovery period for participating in electricity generation reserves.

However, using the connection for energy exchange during peak periods could yield a return of around 20%, with additional benefits like facilitating electricity trade, especially during winter, enabling surplus electricity export from Saudi Arabia to Egypt.



Egypt's Headline Inflation Almost Halves in February

Birds fly at sunset in Cairo, Egypt, 09 March 2025.  EPA/MOHAMED HOSSAM
Birds fly at sunset in Cairo, Egypt, 09 March 2025. EPA/MOHAMED HOSSAM
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Egypt's Headline Inflation Almost Halves in February

Birds fly at sunset in Cairo, Egypt, 09 March 2025.  EPA/MOHAMED HOSSAM
Birds fly at sunset in Cairo, Egypt, 09 March 2025. EPA/MOHAMED HOSSAM

Egypt's annual urban consumer price inflation plunged to 12.8% in February from 24.0% in January, decelerating even faster than analysts had expected, official data showed on Monday.
The drop was amplified by a statistical base effect, as exceptionally fast price increases of the past two years were no longer reflected in the statistics, analysts said.
Fifteen analysts polled by Reuters last week had expected inflation to cool to a median 14.5%.
Month on month, prices were 1.4% higher in February than in January.
Food and beverage prices were up by an annual 3.7% after rising 0.2% from January.
Core inflation also plunged more than expected to 10% on year-on-year basis in February, from 22.6% in January, the central bank said.
Inflation climbed following the Russian invasion of Ukraine in early 2022, which prompted foreign investors to withdraw billions of dollars from Egyptian treasury markets. Headline inflation reached a record high of 38.0% in September 2023.
The price rises were fueled in part by rapid growth in the money supply. M2 money supply expanded by an all-time high of 32.1% in the year to end-January, central bank data showed.
Egypt devalued its currency a year ago, raised interest rates by 600 basis points and signed an $8 billion financial support package with the International Monetary Fund, helping to bring its finances under control.