Revenues of Libya’s Ports Decline Due to Unrest

Revenues of Libya’s Ports Decline Due to Unrest
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Revenues of Libya’s Ports Decline Due to Unrest

Revenues of Libya’s Ports Decline Due to Unrest

Libya’s commercial seaports have been affected by the ongoing conflict in the country and their revenues have largely declined.

Like many other Libyan institutions and facilities, these ports have been divided between the east and the west, and their maintenance has been neglected. Not to mention, rumors have spread on ports located in the west being exploited to smuggle weapons and mercenaries from Turkey.

Head of Libyan Ports and Maritime Transport Authority (PMTA) in the interim government Hassan Goueli stressed that “the armed conflict has resulted in a dramatic decrease in maritime commercial traffic, exceeding 70 percent in some years.”

He told Asharq Al-Awsat that it is not over yet. “Annual maintenance has stopped along with strategic planning to develop and establish new ports.”

“Ports run by the interim government are nine among 15 all over Libya, including the commercial, oil and industrial,” he noted.

Head of the Libyan Ports Company Yazid Bouzrida highlighted the “significant damage caused by the conflict, particularly during the war on terror years in both Benghazi and Derna a few years ago.”

Bouzrida told Asharq Al-Awsat that there are five commercial ports in the country’s eastern region. These are Benghazi, Brega, Ras Lanuf, Tobruk and Derna.

That in Benghazi is a main port in the east and is considered the country’s second-largest port. It was one of the most affected facilities since its infrastructure, mechanisms, and equipment were 90% destructed during the period when the militias took over the city.

Smuggling arms through commercial ports has been taking place for years now, he noted.

“Before 2014, we were all working in the port and we were monitoring the militias’ attempt to hide the arms smuggling process through cargo containers,” Bouzrida explained, adding that these arms were later shipped by cars to different sites in the city.

However, as the army advanced in the battle to liberate Benghazi, weapons were being smuggled through fishing vessels on the seashore, he stressed.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.