Egypt to Lift Subsidy on Electricity in 2025

The sun is seen behind high-voltage power lines and electricity pylons at a highway northeast of Cairo, Egypt, March 13, 2019. (Reuters)
The sun is seen behind high-voltage power lines and electricity pylons at a highway northeast of Cairo, Egypt, March 13, 2019. (Reuters)
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Egypt to Lift Subsidy on Electricity in 2025

The sun is seen behind high-voltage power lines and electricity pylons at a highway northeast of Cairo, Egypt, March 13, 2019. (Reuters)
The sun is seen behind high-voltage power lines and electricity pylons at a highway northeast of Cairo, Egypt, March 13, 2019. (Reuters)

Egypt’s Ministry of Electricity and Energy announced on Tuesday a new increase in electricity prices ranging between 17 and 26.7 percent based on consumption.

The new prices will be applied on July 1, the first day of the country’s fiscal year 2020-21.

It will raise electricity prices for homes and shops that use up to 250 KWH (kilowatt hour) per month by 4.3 percent.

“Given the current economic conditions resulting from the coronavirus outbreak and to ease the economic burdens on Egyptian citizens, the deadline for the plan to lift subsidies on electricity prices to the domestic sector has been extended to fiscal year 2024-25 instead of 2021-22,” the Ministry announced in a press statement.

The middle and lower classes in Egypt have been suffering during the past five years from a sharp hike in the prices of goods and services since the government liberalized the exchange rate in late 2016.

Over the past few years, army trucks have spread across the country to sell food products at cheap prices, which increased the police and armed forces’ sales outlets, easing hikes.

According to the statement, for those who consume between 0 and 50 KWH, the price will be 38 piasters per kilowatt instead of 30 piasters.

“From 51 to 100 KWH, the price will be 48 piasters per kilowatt instead of 40 piasters, and for consumers of between 100 and 200 KWH, the price per kilowatt will be 65 instead of 50 piasters.”

From 201 to 350 KWH, the price per kilowatt will be 96 instead of 82 piasters, and for consumers from 351 to 650 KWH, the price of kilowatt will be 128 instead of 100 piasters.

While consumers of more than 1,000 KWH, will pay the same amount, which is 145 piasters per kilowatt.

For commercial use, the Ministry decided to fix the price of those who consume up to 100 KWH per month at 65 piasters.

Consumers of up to 1,000 KWH will be charged 155 piasters, and 160 piasters for consumers of more than 1,000KWH.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.