Egypt Signs MoU to Localize Electric Cars Industry

Electric cars being charged on a street (AFP)
Electric cars being charged on a street (AFP)
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Egypt Signs MoU to Localize Electric Cars Industry

Electric cars being charged on a street (AFP)
Electric cars being charged on a street (AFP)

Egypt’s Nasr Automotive Manufacturing Company, of the Ministry of Public Enterprise, signed two agreements with China's Dongfeng Motor Corporation to reconstruct its factory to produce the first electric car in Egypt.

Egypt’s Public Enterprise Minister Hisham Tawfik and the Chinese Ambassador to Cairo Liao Liqiang attended the online ceremony, which also included top officials from Nasr and Dongfeng.

Speaking at the ceremony, Tawfiq stressed that the agreements mark the launch of Nasr towards the project of localizing the electric car industry in Egypt.

Earlier, President Abdel Fattah el-Sisi issued directives to relevant authorities on localizing and using national capabilities to manufacture electric vehicles.

Tawfik explained that the project aims to preserve the environment by reducing dependence on fossil fuels and thermal emissions that have negative impacts on people and the economy.

He explained that the agreements included a framework agreement for the production of the electric car in Nasr factories in cooperation with Dongfeng.

Dongfeng is one of the four largest car manufacturers in China that produces about 3.5 million cars annually with its main partners in the auto industry worldwide, he mentioned.

The two companies also signed an agreement to renew the Nasr factory with the latest technologies and production methods.

The project comes within the framework of the automobile manufacturing strategy adopted by the political leadership, which takes into account all the associated factors, according to the Minister.

Tawfik indicated that all relevant authorities and ministries are cooperating to ensure the success of this strategic project.

They will deploy fast chargers in the streets and parking lots all over the country and prepare electricity networks to accommodate the expected increase in consumption.

The authorities will also launch the necessary support policies which help encourage consumers to shift to new methods of transportation.

He pointed out that the ministry relied on technical and commercial studies which led to choosing China’s Dongfeng, as well as the “E70” model.

E70 electric vehicles will be used to reduce emissions and ensure successful sustainability while keeping pace with the increasing global trend of electric transport.

In light of the President’s directives, Nasr Company will start its production of electric cars at a localization rate of 50 percent. At a later stage, the plan will include a research and development center, with the participation of national cadres and specialized Egyptian companies.

An agreement is currently underway to establish a research and development center with Dongfeng and Egyptآ's Brightskies Technologies company.

The Minister also reported that the project aims to produce 25,000 cars annually in one shift, and according to market studies, the volume of demand is expected to increase with the anticipated governmental support and incentives to double this amount.



Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
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Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).

Saudi Arabia has raised $12 billion from global debt markets in its first international bond issuance of the year, attracting bids worth nearly $37 billion. This demonstrates strong investor appetite for Saudi debt instruments.

The issuance comes just two days after the approval of the 2025 annual borrowing plan by Minister of Finance Mohammed Al-Jadaan. The plan estimates financing needs for the fiscal year at SAR 139 billion ($37 billion). The funds will be used to cover the projected SAR 101 billion ($26.8 billion) budget deficit for 2025, as well as repay SAR 38 billion ($10 billion) in principal debt obligations due this year.

The National Debt Management Center (NDMC) announced on Tuesday that the issuance includes three tranches: $5 billion in three-year bonds, $3 billion in six-year bonds, and $4 billion in ten-year bonds. Total demand for the bonds reached $37 billion, exceeding the issuance size by three times and reflecting robust investor interest.

The NDMC emphasized that this issuance aligns with its strategy to broaden the investor base and efficiently meet Saudi Arabia’s financing needs in global debt markets.

According to IFR, a fixed-income news service, the initial price guidance for the three-year bonds was set at 120 basis points above US Treasury yields. The six-year and ten-year bonds were priced at 130 and 140 basis points above the same benchmark, respectively.

Strong demand allowed Saudi Arabia to lower yields on the shorter-term bonds, further demonstrating investor confidence. Economists noted that the pricing above US Treasuries is attractive in the current market, showcasing trust in Saudi Arabia’s economic stability and financial strategies.

International confidence

Economic experts view this successful bond issuance as a testament to international confidence in Saudi Arabia’s robust economy and financial reforms. Dr. Mohammed Al-Qahtani, an economics professor at King Faisal University, said the move underscores Saudi Arabia’s commitment to diversifying financing tools both domestically and internationally. He added that the funds would support Vision 2030 projects, reduce pressure on domestic resources, and attract strong international investor interest.

The issuance strengthens Saudi Arabia’s ability to meet financial needs, expand its investor base, and establish a global financing network, he said, noting that it also facilitates entry into new markets, enabling the Kingdom to accelerate infrastructure projects and capital expenditures.

Dr. Ihsan Buhulaiga, founder of Joatha Business Development Consultants, described the 2025 budget as expansionary, aimed at meeting the financing needs of economic diversification programs. He stressed that the budget deficit is an “optional” one, reflecting a deliberate choice to prioritize Vision 2030 initiatives over immediate fiscal balance.

Buhulaiga explained that the Kingdom’s approach balances two options: limiting spending to available revenues, which would avoid deficits but delay Vision 2030 initiatives, or borrowing strategically to fund Vision 2030 goals. He said that the annual budget is just a component of the larger vision, which requires sustained funding until 2030.

He continued that Saudi Arabia’s fiscal space and creditworthiness allow it to borrow internationally at competitive rates, explaining that this flexibility ensures financial sustainability without compromising stability, even during challenges like the COVID-19 pandemic.

Saudi Arabia’s debt portfolio remains balanced, with two-thirds of its debt domestic and one-third external. As of Q3 2024, public debt stood at approximately SAR 1.2 trillion, below the 30% GDP ceiling. According to the Ministry of Finance, the budget deficit is expected to persist through 2027 but remain below 3% of GDP.

Buhulaiga highlighted the importance of capital expenditure, which reached SAR 186 billion in 2023 and is projected to rise to SAR 198 billion in 2024, a 6.5% increase.

He emphasized the government’s pivotal role in economic diversification, supported by investments from the Public Investment Fund (PIF), the National Development Fund, and its subsidiaries, including the Infrastructure Fund.

The PIF recently announced a $7 billion Murabaha credit facility, facilitated by Citigroup, Goldman Sachs International, and JPMorgan. Meanwhile, the NDMC arranged a $2.5 billion revolving credit facility earlier in January, compliant with Islamic principles, to address budgetary needs.

In November, Moody’s upgraded Saudi Arabia’s credit rating to Aa3, aligning with Fitch’s A+ rating, both with a stable outlook. S&P Global assigns the Kingdom an AA-1 rating with a positive outlook, reflecting a high ability to meet financial obligations with low credit risk.

The IMF estimates Saudi Arabia’s public debt-to-GDP ratio at 26.2% in 2024, describing it as low and sustainable. This is projected to rise to 35% by 2029 as foreign borrowing continues to play a key role in financing deficits.