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Deal between Kuwaiti Firm, ‘Suez Canal’ on Logistics Center in Egypt

People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
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Deal between Kuwaiti Firm, ‘Suez Canal’ on Logistics Center in Egypt

People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh

The Suez Canal Authority has signed a protocol of cooperation with Kuwait’s Agility, a leading global logistics provider, to establish a logistic center in Egypt’s East Port Said Governorate.

Under this protocol, Agility will develop a hub with international standard logistics infrastructure to enhance the importing and warehousing of raw materials, as well as the export and distribution of intermediate and final goods through the Suez Canal Ports, it said.

The company will also provide world-class solutions for Egyptian customs, including the modernization and automation of the customs processes.

Head of Suez Canal Authority Admiral Mamish noted that the protocol aims to study the investment in the development and marketing of both the logistics and industrial areas. It also includes the development of a ‘green’ logistics hub for value-added services, in addition to applying advanced customs technology solutions that facilitate trade.

On his part, Agility executive manager Tarik Sultan said that signing this protocol goes in tandem with Agility strategy for the African continent and reinforcement of Egypt’s position in the regional economy.

“Being present in the Suez Canal Economic Zone and, in particular, working in the East Port Said area will give companies access to world-class infrastructure as well as fast, easy and efficient logistics and customs services in terms of time and cost,” Sultan added.

Admiral Abd El Kader Darwish, vice chairman of the Suez Canal Economic Zone for the Northern Sector, said that the establishment of a logistics center in East Port Said is set to provide logistical and technological solutions for investors in the region.

It will also provide a secure electronic customs system to facilitate the movement of goods in a safe manner that will in turn contribute to more job opportunities in East Port Said.

Darwish added that the protocol also includes studying the possibility of establishing a company between the Economic Authority and Agility, he added.

The Suez Canal Authority is planning to obtain an EUR 300 million loan from GCC banks to buy two new drilling rigs, three banking sources said to Reuters.

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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)
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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)

Saudi Arabia has long followed a clear and transparent approach to preserving stability in global energy markets. Historically, it has consistently adhered to all decisions issued by the OPEC+ alliance and played a leading role alongside other producers to ensure compliance and promote the collective good.

Recently, the Kingdom briefly increased production volumes. However, the additional output was neither marketed domestically nor exported abroad. Instead, it was directed as a precautionary measure to strengthen strategic reserves, improve supply flows between the country’s eastern and western regions, and rebalance stocks held in overseas storage facilities.

Asharq Al-Awsat reached out to energy specialists to understand the significance of this move for energy security. Experts explained that building strategic reserves allows Saudi Arabia to respond swiftly to customer needs in the event of political crises, regional wars, adverse weather, or other unforeseen disruptions.

Fouad Al-Zayer, former head of data services at OPEC and an energy expert, said the Kingdom maintains millions of barrels in storage both inside and outside its borders. These reserves serve as a buffer during emergencies, enabling the country to compensate for supply shortfalls within a short timeframe. He emphasized that this stored crude is strategically critical in the face of geopolitical tensions and conflicts.

According to Al-Zayer, Saudi Arabia relies on an extraordinary reserve capacity unmatched by any other producer. The country currently produces more than 9 million barrels per day, with the capability to pump even higher volumes if needed. He noted that Saudi reserves alone account for 3 million barrels per day out of roughly 5 million barrels in global spare capacity, underscoring Riyadh’s central role in stabilizing markets and upholding its commitments under OPEC+ agreements.

He added that Saudi Arabia also hosts the International Energy Forum, which works to improve data quality and transparency in the sector. In June, the Kingdom’s output reached about 9 million barrels per day, with the modest increase attributed to logistical considerations. Al-Zayer stressed that it is common for producers to temporarily boost production to support maintenance operations or replenish storage, without impacting the broader market, since these barrels are not immediately traded.

He reiterated that Saudi Arabia has always honored OPEC+ production targets and has played a pivotal role in encouraging other members to meet their quotas.

Meanwhile, Dr. Mohammed Al-Sabban, former senior adviser to the Saudi Minister of Petroleum, explained that the Kingdom has consistently proven itself a reliable and secure supplier to global energy markets. He noted that Saudi Arabia’s recent statement clarified the reasons behind the June production uptick, emphasizing that the additional oil was neither destined for local consumption nor for export but was solely intended to refill domestic and foreign storage. He said such measures do not represent any breach of commitments, unlike the practices of some other countries.

Al-Sabban pointed out that Saudi Arabia has often gone beyond required cuts to help stabilize markets. Even the recent production increases, he said, fall within the scope of voluntary adjustments agreed upon by OPEC+ members. He noted that in July, Saudi Arabia raised production in line with credible studies indicating the market could absorb these volumes without disruption.