Egypt Signs 15-Year Contract with French Metro Line Operator

People wait to board a train at Al Shohadaa metro station in Cairo, Egypt, July 24, 2017. (Reuters)
People wait to board a train at Al Shohadaa metro station in Cairo, Egypt, July 24, 2017. (Reuters)
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Egypt Signs 15-Year Contract with French Metro Line Operator

People wait to board a train at Al Shohadaa metro station in Cairo, Egypt, July 24, 2017. (Reuters)
People wait to board a train at Al Shohadaa metro station in Cairo, Egypt, July 24, 2017. (Reuters)

Egypt on Tuesday signed a 15-year, billion-euro contract with French transport operator RATP Dev to manage Cairo's third metro line, the transport ministry said.

The government has sought to expand the run-down network in recent years to ease the burden on the traffic-choked streets of the capital, home to more than 20 million people.

In 2012 its third metro line went into operation, stretching 47 kilometers (29 miles) from east to west.

The new 1.1 billion-euro ($1.4-billion) contract between RATP Dev and the National Tunnels Authority aims "to alleviate the pressure on the Egyptian Company for the Management and Operation of the metro, which is in charge of the first and second lines," the transport ministry said.

Over three million commuters use the Cairo metro every day, but the metro company has been grappling with heavy losses and debts for years.

The government has hiked fares several times in recent years to generate funds for upkeep of the three-decade-old network.

In August, authorities raised the metro tickets covering up to nine stops from three to five Egyptian pounds ($0.32). The fare for up to 16 stops now costs seven pounds ($0.44).



S&P Reaffirms Sultanate of Oman’s Sovereign Credit Rating at ‘BBB-’

S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
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S&P Reaffirms Sultanate of Oman’s Sovereign Credit Rating at ‘BBB-’

S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat
S&P reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ Asharq Al-Awsat

Standard & Poor’s Global Ratings (S&P) has reaffirmed the Sultanate of Oman’s long-term sovereign credit rating at ‘BBB-’ with a Stable Outlook, citing the government’s ongoing efforts to reduce public debt and the continued improvement in the State’s fiscal performance.

Last September, S&P had upgraded the country’s long-term foreign and local currency sovereign credit ratings from 'BB+' to 'BBB-'.

The agency confirmed that the Sultanate’s credit rating may witness further improvement over the next two years if the government continues to manage the country’s public finances as planned, including increasing non-oil revenues and improving the efficiency of public spending.

It noted that these measures are expected to continue to boost GDP growth, supported by continued growth in non-oil GDP, in addition to continuing measures aimed at promoting the establishment and growth of companies and projects that support economic diversification activities and operations, in addition to initiatives to develop the capital market sector.

The agency noted in its report that the Sultanate has made significant progress in recent years in addressing the structural challenges it faced, including the large deficit in the state’s general budget and balance of payments.

It expected Oman’s real GDP to grow by 2% in the next three years (2025-2028), while the net public debt is expected to decrease to an average of GDP by 1.5% between 2025-2028.

This is attributed, according to the agency, to the assumption that the average price of Brent crude will reach $70 per barrel over the next two years, compared to $81 per barrel in 2024, in addition to a decline in oil production due to the Sultanate of Oman’s commitment to voluntary cuts under the OPEC+ agreement.

The agency also expects the current account to record a financial surplus averaging 1.3% of GDP during the period 2025-2028, noting that Oman has been able to cover the large deficits.

Standard & Poor’s expected inflation rates to remain at moderate levels, averaging about 1.5% annually during the period 2025-2028, after reaching about 1% in 2024.

The agency said the success of the Sultanate’s efforts to reduce total public debt from 68% of GDP in 2020 to 36% in 2024.

It also expects highly liquid assets to remain close to 40% of GDP during the period 2025-2028.

Also, the agency commended the efforts made to develop the hydrogen production sector, in light of Oman’s intention to achieve carbon neutrality by 2050, which will enable the country to become one of the leading hydrogen exporters by 2030.