Morocco Inaugurates Extension to Africa's Already Biggest Port

Morocco's King Mohammed VI arrives for a lunch at the Elysee Palace as part of the One Planet Summit in Paris, France, December 12, 2017. REUTERS/Philippe ...
Morocco's King Mohammed VI arrives for a lunch at the Elysee Palace as part of the One Planet Summit in Paris, France, December 12, 2017. REUTERS/Philippe ...
TT
20

Morocco Inaugurates Extension to Africa's Already Biggest Port

Morocco's King Mohammed VI arrives for a lunch at the Elysee Palace as part of the One Planet Summit in Paris, France, December 12, 2017. REUTERS/Philippe ...
Morocco's King Mohammed VI arrives for a lunch at the Elysee Palace as part of the One Planet Summit in Paris, France, December 12, 2017. REUTERS/Philippe ...

Moroccan King Mohammed VI on Friday, June 28, will oversee the inaugural of the Tanger Med 2 extension at the country’s top cargo port. The expansion is officially opening for business after completing a months-long operations trial.

The new berth extends over 1,600 meters and has an estimated capacity of 4.2 million iron containers. This expansion will increase the total capacity of the whole port complex to 9 million containers. The project also includes the construction of an additional 400-meter extension, which will also accommodate about one million containers.

Overall cost of the expansion totaled around $ 2.8 billion.

The extension to Africa's already biggest port, will further develop the facility after it had already adopted digital processing, an upgrade which has reflected positively on its performance, especially in terms of duration of processing.

Tanger Med cargo port, lying on the coasts of Tangier and off Mediterranean waters, consists of 4 berths, the first of which was inaugurated in 2007.

It is worth noting that last April, DHL Global Forwarding, a leading international provider of air, sea and road freight services, signed a deal with Tanger Med to set up its new Africa-Europe Logistics Hub in the Tanger Med port.

“The strategic location of Tanger Med presents a huge opportunity for us. Its ability to support multi-modal connectivity, especially its maritime, as well as road connections to Casablanca and the South, will allow us to expand and enhance our customer service offering,” said Christelle Fadel, General Manager, DHL Global Forwarding, in a press release.



Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
TT
20

Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee

The new Islamic banking entity resulting from the merger of Kuwait’s Warba Bank and Gulf Bank will be able to grow for about ten years without raising capital, Warba’s chief executive said.

Shaheen al-Ghanem told Reuters that Gulf Bank’s 7 billion dinars ($22.9 billion) in assets would grow significantly once brought under the Islamic banking framework.

"This gives us a larger market share in Kuwait," he added.

Warba Bank, which has assets of about 6 billion dinars, acquired a 32.75% stake in Gulf Bank in April for about $1.63 billion, and the two began initial steps the following month towards a merger.

Kuwait's central bank on Monday gave Gulf Bank preliminary approval to convert into a sharia-compliant bank.

Al-Ghanem said that the merger with Warba would speed up Gulf Bank's process of converting into an Islamic lender, as systems, procedures, a sharia board, products and staff were already in place.

Warba, meanwhile, is set to gain from Gulf Bank's strong retail business and its more than 50 branches, taking the combined network to about 70 and creating what al-Ghanem said was an institution with the largest branch network in Kuwait.

He said that Gulf Bank has yet to use its capacity to issue Tier 1 or Tier 2 instruments, a "hidden advantage" that the new entity must use to issue sukuk after the merger.

Kuwait hosts ten local banks – five conventional, four Islamic and one specialized lender - and local branches of foreign banks.

Al-Ghanem expects there to be more mergers among Kuwaiti banks, something he views as a healthy development.

"Many bank owners are currently thinking about their next move: remain independent or merge," he said.

In 2024, Kuwait Finance House, Kuwait’s largest Islamic bank, merged with Bahrain’s Ahli United Bank, which also owns a Kuwaiti subsidiary of the same name.