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Saudi-Egyptian Electrical Connection Improves Power Supply in the Region

The sun sets behind high-voltage power line poles (Reuters)
The sun sets behind high-voltage power line poles (Reuters)
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Saudi-Egyptian Electrical Connection Improves Power Supply in the Region

The sun sets behind high-voltage power line poles (Reuters)
The sun sets behind high-voltage power line poles (Reuters)

Mohamed Farouk, Vice Chairman of El-Gammal Group, the company implementing the Egypt-Saudi Arabia electrical interconnection project, stated that the initiative will significantly enhance electricity supply in the region and reduce power outages that many Arab countries have been grappling with.

During the past summer, at least seven Arab countries, including Kuwait—a nation known for its oil wealth—experienced recurring power cuts due to record-breaking heatwaves.

In an interview with Asharq Al-Awsat from his office in Cairo, Farouk explained that the electrical interconnection, set to launch between April and May next year, will bolster the reliability of power stations in both Egypt and Saudi Arabia.

He added that this project is expected to serve as a cornerstone for broader Arab electrical integration.

The initiative originated from a cooperation agreement signed by Egypt and Saudi Arabia in 2012, with an estimated cost of $1.8 billion, of which $600 million is Egypt’s share. Funding has been provided by the Kuwait Fund for Arab Economic Development, the Arab Fund for Economic and Social Development, the Islamic Development Bank, and internal resources from the Egyptian Electricity Transmission Company.

This project represents the first high-voltage current exchange initiative in the Middle East and North Africa. It spans from Badr City in Egypt to Madinah, passing through Tabuk in Saudi Arabia. It includes the construction of three high-voltage conversion stations: two in Saudi Arabia, located in Madinah and Tabuk, and one in Badr, east of Cairo. These stations will be interconnected by overhead transmission lines stretching approximately 1,350 kilometers, along with 22 kilometers of underwater cables across the Gulf of Aqaba.

Farouk also announced that El-Gammal Group has earmarked $200 million to establish a polyethylene manufacturing complex in Saudi Arabia, with completion planned by the end of next year.

The company is targeting a 25% market share in Saudi Arabia’s polyethylene sector within three to four years.

“We have obtained the necessary licenses for the factory and are currently in the process of selecting the most suitable location,” Farouk explained.

The group is actively engaged in infrastructure and energy projects and produces a significant portion of the materials used in these endeavors, such as pipelines for oil and gas projects. One of its notable achievements includes the monorail project, where it integrated all stations with the Greater Cairo electricity distribution network.

Farouk emphasized the significance of the Saudi market, describing it as “large and promising.”

He added: “We aim to establish a strong presence in Saudi Arabia, both in the general contracting and manufacturing sectors.”

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Business

Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port
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Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

The Saudi Ports Authority (Mawani) has announced the addition of the RSX service by Marsa Ocean Shipping to Jeddah Islamic Port, featuring a capacity of up to 372 TEUs and connecting Jeddah with the regional ports of Aden, Hodeidah, and Djibouti, SPA reported.

This expansion aligns with the National Transport and Logistics Strategy, aiming to enhance the Kingdom’s operational efficiency and its ranking in global performance indicators.

As a primary gateway, Jeddah Islamic Port utilizes its 62 multipurpose berths and specialized terminals to support a total capacity of 130 million tons, reinforcing Saudi Arabia’s position as a global logistics hub connecting three continents.

Business

China Says Hopes to Boost Trade Cooperation with US

A street cleaner walks by food delivery riders gather outside restaurants waiting for their online orders, in Beijing, China, Wednesday, March 25, 2026. (AP)
A street cleaner walks by food delivery riders gather outside restaurants waiting for their online orders, in Beijing, China, Wednesday, March 25, 2026. (AP)
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China Says Hopes to Boost Trade Cooperation with US

A street cleaner walks by food delivery riders gather outside restaurants waiting for their online orders, in Beijing, China, Wednesday, March 25, 2026. (AP)
A street cleaner walks by food delivery riders gather outside restaurants waiting for their online orders, in Beijing, China, Wednesday, March 25, 2026. (AP)

China wishes to strengthen economic cooperation with the United States to avoid "vicious competition", commerce minister Wang Wentao told US Trade Representative Jamieson Greer, according to a readout released on Friday.

The two met on Thursday on the sidelines of a World Trade Organization (WTO) ministerial conference in Cameroon's capital, less than two months ahead of US President Donald Trump's planned visit to Beijing.

"China is willing to strengthen multilateral and regional economic and trade cooperation with the United States," Wang told Greer, according to a statement by the Beijing's Ministry of Commerce.

The two powers must "properly handle the relationship between competition and cooperation" and "avoid vicious competition," he said.

The world's two largest economies were locked in a bitter trade battle last year before agreeing to a truce in October.

High-level talks in Paris this month between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng also helped to ease tensions.

Nevertheless, issues including US tariffs, a trade balance in China's favor, and US restrictions on exports of advanced technologies continue to threaten relations.

Wang expressed "grave concerns" on Thursday regarding recently announced US trade investigations signaling the possibility of fresh tariffs.

Washington's trade investigations target 60 economies, including China, and will look into "failures to take action on forced labor" and whether these burden or restrict US commerce.

The White House has said Trump will visit Beijing on May 14-15, with the timing postponed by several weeks as a result of the war in the Middle East.

Business

Dollar Rides Haven Demand as Middle East Talks Ring Hollow

An electronic panel displays US Dollar currency symbol at an exchange office in Podolsk, outside Moscow, Russia, 26 March 2026. (EPA)
An electronic panel displays US Dollar currency symbol at an exchange office in Podolsk, outside Moscow, Russia, 26 March 2026. (EPA)
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Dollar Rides Haven Demand as Middle East Talks Ring Hollow

An electronic panel displays US Dollar currency symbol at an exchange office in Podolsk, outside Moscow, Russia, 26 March 2026. (EPA)
An electronic panel displays US Dollar currency symbol at an exchange office in Podolsk, outside Moscow, Russia, 26 March 2026. (EPA)

The dollar hovered near multi-month peaks on Friday as investors sought safety in the shadow of an intensifying Middle East war and mounting doubts over any path to de-escalation.

Markets were on edge following another rollercoaster week as US President Donald Trump again extended a deadline for striking Iran's energy facilities into April, even as Washington and Tehran offered starkly conflicting accounts of diplomatic progress.

The Pentagon is also looking at sending up to 10,000 additional ground troops to the Middle East, the Wall Street Journal reported on Thursday, doing little to bolster investor hopes ‌of an imminent ‌end to the war.

That kept the dollar bid ‌as ⁠investors flocked to ⁠the safe-haven currency and ramped up expectations of a US rate hike by the year-end, owing to the inflationary pulse from higher-for-longer energy prices.

The yen, on the other hand, was left on the cusp of 160 per dollar and stood at 159.58. The euro was nursing losses and tacked on 0.1% to $1.1540, while sterling was little changed at $1.3339.

"It doesn't look like the conflict will end anytime soon," said Carol Kong, a ⁠currency strategist at Commonwealth Bank of Australia. "The dollar is king while ‌this conflict lasts."

"If we're right about this ‌conflict being protracted, I think oil prices will just keep rising and it will ‌push the dollar higher, at the expense of net energy importers like the Japanese ‌yen and the euro," she added.

The darkening market mood sent the risk-sensitive Australian dollar down to a two-month trough, though it later rebounded and traded 0.2% higher at $0.6903. The New Zealand dollar languished near its lowest level since January and last stood at $0.5769.

Against a basket ‌of currencies, the dollar was marginally weaker at 99.83, but still on track for a 2.2% rise this month, which would ⁠mark its ⁠biggest gain since July last year.

Investors are now pricing in an over 40% chance of a 25-basis-point rate hike from the Federal Reserve by September, according to CME Fedwatch tool, in a sharp reversal from more than 50 bps worth of easing expected before the war.

The Bank of England and the European Central Bank are also seen tightening policy, with the hawkish sea change in rate expectations hammering bonds and sending yields rising.

"A more prolonged disruption to energy supplies would deliver a larger hit to activity that would meet most definitions of a global recession and prompt a broader monetary tightening cycle," said analysts at Capital Economics in a note.

Yields on US Treasuries edged slightly higher on Friday, following a sharp rise overnight, with the two-year yield at 3.9899%. The benchmark 10-year yield was up about 1 bp to 4.4278%.