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.



US Economy Grows at 3.1% Pace in 3rd Quarter, an Upgrade from Previous Estimate

FILE PHOTO: A sailboat passes by the Statue of Liberty in New York Harbor, in New York City, US, September 20, 2024.  REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A sailboat passes by the Statue of Liberty in New York Harbor, in New York City, US, September 20, 2024. REUTERS/Brendan McDermid/File Photo
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US Economy Grows at 3.1% Pace in 3rd Quarter, an Upgrade from Previous Estimate

FILE PHOTO: A sailboat passes by the Statue of Liberty in New York Harbor, in New York City, US, September 20, 2024.  REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A sailboat passes by the Statue of Liberty in New York Harbor, in New York City, US, September 20, 2024. REUTERS/Brendan McDermid/File Photo

The American economy grew at a healthy 3.1% annual clip from July through September, propelled by vigorous consumer spending and an uptick in exports, the government said in an upgrade to its previous estimate.
Third-quarter growth in US gross domestic product — the economy's output of goods and services — accelerated from the April-July rate of 3% and continued to look sturdy despite high interest rates, the Commerce Department said Thursday. GDP growth has now topped 2% in eight of the last nine quarters.
Consumer spending, which accounts for about two-thirds of US economic activity, expanded at a 3.7% pace, fastest since the first quarter of 2023 and an uptick from Commerce’s previous third-quarter estimate of 3.5%, The Associated Press reported.
Exports climbed 9.6%. Business investment grew a lackluster 0.8%, but investment in equipment expanded 10.8%. Spending and investment by the federal government jumped 8.9%, including a 13.9% surge in defense spending.
American voters were unimpressed by the steady growth under Democratic President Joe Biden. Exasperated by prices that remain 20% higher than they were when an inflationary surge began in early 2021, they chose last month to send Donald Trump back to the White House with Republican majorities in the House and Senate.
Trump will inherit an economy that looks healthy overall. The unemployment rate remains low at 4.2% even though it is up from the 53-year low 3.4% reached in April 2023. Inflation hit a four-decade high 9.1% in mid-2002. Eleven interest rate hikes by the Federal Reserve in 2022 and 2023 helped bring it down — to 2.7% last month. That is above the Fed's 2% target. But the central bank still felt comfortable enough with the progress against inflation to cut its benchmark rate Wednesday for the third time this year.
Within the GDP data, a category that measures the economy’s underlying strength rose at a solid 3.4% annual rate from July through September, an upgrade from the previous estimate and up from 2.7% in the April-June quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Wednesday’s report also contained some encouraging news on inflation. The Federal Reserve’s favored inflation gauge — called the personal consumption expenditures index, or PCE — rose at just a 1.5% annual pace last quarter, down from 2.5% in the second quarter. Excluding volatile food and energy prices, so-called core PCE inflation was 2.2%, up modestly from the previous estimate but down from 2.8% in the April-June quarter.
Thursday's report was the Commerce Department's third and final look at third-quarter GDP. It will publish its initial estimate of October-December growth on Jan. 30.