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Egypt’s Unemployment Falls to Lowest Levels in 14 Years

A man sells candyfloss on a bridge over the Nile in Cairo. (Reuters)
A man sells candyfloss on a bridge over the Nile in Cairo. (Reuters)
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Egypt’s Unemployment Falls to Lowest Levels in 14 Years

A man sells candyfloss on a bridge over the Nile in Cairo. (Reuters)
A man sells candyfloss on a bridge over the Nile in Cairo. (Reuters)

Egypt’s unemployment rate fell to 5.7 percent in FY 19/20, its lowest in 14 years, after it recorded 13.9 percent in the previous fiscal year, announced the Minister of Planning and Economic Development, Hala el-Saeed.

In 2016, Egypt floated its currency as part of an economic reform program that Cairo pursued to overcome the budget deficit and imbalances in the economic sectors.

During her statement to the parliament, the minister pointed out that Egypt’s inflation rate fell to 7.3 percent in the first quarter of FY 20/21, compared to 9.6 percent in Q4 of FY 19/20, while the annual unemployment rate dropped from 13 percent in 2014 to 7.9 percent in 2019.

Said confirmed the decrease in Egypt’s poverty rate to 29.7 percent, for the first time since 1999, compared to 32.5 percent in FY 2017/18, as the poverty rate declined across the country.

The decline was greater in rural areas of Lower Egypt, reflecting a decrease of 4.73 percent, followed by the rural areas of Upper Egypt at 3.79 percent.

“This is one of the fruits of the serious reform steps taken by the Egyptian state,” Said noted, adding that since November 2016, this has strengthened the Egyptian economy and its ability to confront crises.

Public investments increased by 66 percent in general during FY 18/19-20/21 compared to the previous three years, which resulted in the implementation of many development initiatives, according to the minister.

Public investments in major sectors, such as infrastructure, transportation and electricity, amounted to about EGP 500 billion, 32 percent of public investments and 20 percent growth compared to the three preceding years.

The minister added that a growth rate of 5.6 percent was achieved in the first half of 19/20 before the repercussions of the novel coronavirus pandemic were felt.

Despite the crisis, the economy achieved a growth rate of 3.6 percent during FY 19/20, making Egypt one of a limited number of countries that achieved positive growth amid the pandemic. It was projected to achieve a growth rate of 5.8 percent in FY 19/20 and 6 percent in FY 20/21, she revealed.

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Head of International Data Center Authority to Asharq Al-Awsat: Saudi Arabia Leads AI Race

A Microsoft data center. (Microsoft)
A Microsoft data center. (Microsoft)
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Head of International Data Center Authority to Asharq Al-Awsat: Saudi Arabia Leads AI Race

A Microsoft data center. (Microsoft)
A Microsoft data center. (Microsoft)

Saudi Arabia is leading the Middle East in attracting artificial intelligence (AI) data center investment, thanks to its abundant energy resources, economic scale and long-term diversification strategy, according to Mehdi Paryavi, founder and CEO of the International Data Center Authority (IDCA).

In an interview with Asharq Al-Awsat, Paryavi said the Kingdom is expected to attract the largest share of regional data center investment, followed by the UAE.

He described data centers as the backbone of the digital economy - “the refineries of the modern era” that process humanity’s most valuable resource: data.

Saudi Arabia, home to the world’s largest oil production facilities, is therefore well positioned to lead the next generation of AI data centers, he stated.

His remarks came shortly after the release of the IDCA’s 2026 Global Energy Report on July 15, which identifies the Middle East as one of the world’s biggest growth opportunities for AI data centers. While data centers account for about 2 percent of global electricity consumption, they represent just 0.5 percent of electricity use in the Middle East, leaving significant room for expansion.

Paryavi said Saudi Arabia and the UAE currently dominate the regional market, with data centers consuming about 440 megawatts and 340 megawatts of electricity, respectively. Together, they account for nearly 80 percent of the Middle East’s total data center electricity consumption of roughly 1 gigawatt.

However, competition is intensifying as Oman, Kuwait and Qatar pursue ambitious projects, while Syria and Iraq undergo major transformations.

He also highlighted Egypt’s national AI strategy, which aims for artificial intelligence to contribute 7.7 percent of GDP by 2030, Jordan’s digital transformation plans, and Iraq’s efforts to attract data center developers and investors.

Returning to Saudi Arabia, Paryavi said the Kingdom’s advantages include the region’s largest economy, political stability, a strategic location, a larger population than other Gulf Cooperation Council countries, a substantial sovereign wealth fund and a clear commitment to economic diversification.

Saudi Arabia, the region’s only G20 member, ranks 44th in the IDCA’s 2026 Global Digital Readiness Index and plans to develop AI data centers with a combined capacity of 6 gigawatts by 2034.

He distinguished between conventional small- and medium-sized data centers, which are expanding across the Gulf, and hyperscale facilities, where Saudi Arabia has emerged as the region’s leading contender.

He cited the Public Investment Fund’s HUMAIN initiative, along with operators including Center3, Mobily and DataVolt, as key drivers of the Kingdom’s ambitions.

He also highlighted Oman’s Oman Digital Triangle (ODT) project and the UAE’s Khazna Data Centers, whose entire portfolio was recently certified by the IDCA.

Paryavi said that the Middle East combines abundant, scalable energy, a strategic geographic location, financial strength and agile decision-making, giving it a competitive edge as energy shortages and grid constraints slow AI expansion in established markets such as the United States, Singapore, Germany and South Korea.

Energy - not chips or capital - is the biggest constraint on AI growth, followed by workforce availability and public policy, he added. Every AI model ultimately runs in a data center, and data centers require reliable electricity.

As power shortages increasingly limit AI expansion in both advanced and developing economies, the Middle East remains one of the few regions with the capacity to support the next generation of AI infrastructure, he stressed.

The IDCA’s 2026 Global Energy Report stated that AI is driving a profound shift in the data center industry. It projects that AI-powered data centers will increase their electricity consumption by 50 percent by 2025, placing unprecedented pressure on power grids worldwide and making access to energy the decisive factor in determining where future AI investment will flow.

Business

Critical Minerals Drive Billion-Dollar Saudi-Canadian Partnership

Saudi and Canadian officials attend the recent Saudi-Canadian Investment Forum in Jeddah. (Asharq Al-Awsat)
Saudi and Canadian officials attend the recent Saudi-Canadian Investment Forum in Jeddah. (Asharq Al-Awsat)
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Critical Minerals Drive Billion-Dollar Saudi-Canadian Partnership

Saudi and Canadian officials attend the recent Saudi-Canadian Investment Forum in Jeddah. (Asharq Al-Awsat)
Saudi and Canadian officials attend the recent Saudi-Canadian Investment Forum in Jeddah. (Asharq Al-Awsat)

Economic ties between Saudi Arabia and Canada are entering a new phase. After a year of intensified diplomatic and investment engagement, Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and Canadian Prime Minister Mark Carney launched a new strategic partnership focused on high-value, future-oriented sectors during official talks in Jeddah earlier this month.

The momentum was immediately reinforced by the signing of 15 agreements and memorandums of understanding at the Saudi-Canadian Investment Forum, laying the groundwork for broader cooperation that reflects both countries’ shared commitment to expanding economic ties.

The mining and critical minerals sector is expected to be the first major beneficiary. Canada offers abundant mineral resources and longstanding engineering expertise, while Saudi Arabia brings substantial industrial and investment capacity to develop its estimated $2.5 trillion in untapped mineral wealth.

The sector is expected to deliver the earliest returns from the newly signed agreements before expanding into energy, advanced technology and data centers, strengthening value chains and creating globally competitive industrial and investment opportunities.

Mohammed Nasser Al-Dulaim, chairman of the Saudi-Canadian Business Council, told Asharq Al-Awsat that more agreements will be announced “at the appropriate time” and that implementation of the signed deals would be closely monitored.

Both countries are planning an exchange of trade delegations and regular meetings between companies throughout this year and into 2027, he added.

His remarks echoed those of Canadian Minister of Energy and Natural Resources Tim Hodgson, who said deeper cooperation with Saudi Arabia - Canada’s largest trading partner in the region - is a cornerstone of Ottawa’s strategy to attract $500 billion in private investment and double non-US exports over the next decade.

Earlier this year, Canadian engineering firm Hatch signed a strategic agreement worth up to $700 million with Saudi mining company Maaden to develop its portfolio of gold, phosphate and aluminum projects.

Another partnership between Canada’s Northern Graphite and Saudi Arabia’s Obeikan Investment Group will establish an advanced battery anode materials processing plant in the Kingdom, helping secure and diversify clean energy supply chains.

Al-Dulaim said mining and critical minerals would form the backbone of the partnership, describing the model as: “Canada supplies, Saudi Arabia transforms, and the world benefits.”

He added that energy, advanced technology and data centers would follow as complementary sectors.

Following the Jeddah forum, he said, the council’s immediate priority is to turn the 15 agreements into operational projects through implementation plans, timelines and performance indicators, supported by sector-specific working groups that will coordinate with government agencies and investors in both countries.

The forum also highlighted investment opportunities in Saudi Arabia’s nearly $1.3 trillion economy, where non-oil activities account for more than 50 percent of GDP.

Gatherers identified priority sectors including financial services, mining, advanced industries, artificial intelligence, data centers, education and innovation, while discussions continue on additional projects that have yet to be announced.

Business

Conflicts, Aircraft Orders in Focus as Farnborough Airshow Kicks Off

The British Red Arrows display team fly at the Farnborough International Airshow, in Farnborough, Britain, July 22, 2024. (Reuters)
The British Red Arrows display team fly at the Farnborough International Airshow, in Farnborough, Britain, July 22, 2024. (Reuters)
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Conflicts, Aircraft Orders in Focus as Farnborough Airshow Kicks Off

The British Red Arrows display team fly at the Farnborough International Airshow, in Farnborough, Britain, July 22, 2024. (Reuters)
The British Red Arrows display team fly at the Farnborough International Airshow, in Farnborough, Britain, July 22, 2024. (Reuters)

The Farnborough Airshow opens on Monday with Boeing and Airbus pursuing aircraft deals and defense firms vying for a share of booming military budgets fueled by wars in Ukraine and the Middle East.

Planemakers are expected to announce a string of deals during the week, although industry sources say total orders are likely to fall well short ‌of some ‌analyst forecasts of 800 aircraft or more, reflecting ‌supply-chain ⁠constraints that continue to limit ⁠production.

At the same time, defense companies are arriving in force as governments boost military spending and seek lessons from conflicts that have highlighted the importance of drones, missile defense systems and artificial intelligence.

Monday's opening also coincides with the first day in office of Prime Minister-in-waiting Andy Burnham, who could make an appearance at the July 20 to ⁠24 event.

Organizers say defense companies will make ‌up half of a record 1,600 exhibitors ‌at the show, highlighting a shift from the commercial aviation roots of ‌an event that began in 1948 as a showcase for British ‌aerospace technology.

The shift reflects how conflicts from Ukraine to the Middle East have transformed spending priorities and accelerated demand for new defense technologies, including unmanned fighter jets, kamikaze drones and autonomous AI software.

On the eve of the ‌event, the head of Boeing's commercial airplane unit said the company is focused on increasing and improving ⁠aircraft production, "not order ⁠announcement."

Sources told Reuters Airbus and Boeing are together expected to secure a little over 300 aircraft orders unless last-minute negotiations produce additional deals.

Among the expected announcements is an order for around 100 narrowbody aircraft from each manufacturer by Irish leasing company SMBC Aviation Capital, the sources said. Bloomberg News first reported the potential deal. None of the companies involved commented.

However, there were no immediate signs of a breakthrough in talks between Turkish Airlines and engine makers over long-term maintenance agreements that the carrier has linked to a planned purchase of 150 Boeing 737 MAX jets.