Egypt’s Trade Deficit Narrows by 13.3%

The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
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Egypt’s Trade Deficit Narrows by 13.3%

The Great Pyramids in Giza in Egypt. March 2020. (Reuters)
The Great Pyramids in Giza in Egypt. March 2020. (Reuters)

Egypt’s trade deficit narrowed by 13.3 percent YoY to $3.1 billion in April from $3.5 billion, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Sunday.

The North African nation’s exports surged by 47.4 percent to $2.84 billion in April. The rise was ascribed to higher exports of medicines and pharmaceuticals, by 77.2 percent, and fresh fruits, by 60.2 percent.

Egypt's imports increased by 8.1 percent to $5.92 billion in April, with higher imports of passenger cars by 58.9 percent, and iron raw materials and condensates by 58.6 percent.

On another note, Egypt’s Suez Canal revenue rose to a record $5.84 billion in its 2020-21 financial year, up from $5.72 billion in the previous year.

The Suez Canal Authority said the revenues in the first six months of this year increased to about $3 billion compared with $2.76 billion in the same period last year.

In the meantime, an Egyptian government official told Reuters that Egypt withdrew in one year around 2 million square meters of lands from tourism companies over their failure to meet their commitments.

The lands are located in Marsa Alam, which overlooks the Red Sea.

The official, who preferred to remain anonymous, said that more withdrawals are expected in the future.

He added that the country withdrew around 27 million square meters of the Red Sea lands and Quseer in the period between June 2013 and June 2021.

The reason behind this decision is the companies’ failure to commit to the timeline of the projects. This means that any company that implemented 10 percent or less of the project had its land withdrawn.

Major Egyptian investors whose lands were withdrawn are Hamada Abo El Enein, chairman and managing director of Sharm Dreams Company for Tourist Investment, the Egyptian Resorts Company SAE (ERC), and businessman Mohammed Al-Baker.



Non-oil Private Sector Growth Boosts Saudi Arabia’s Economic Expansion

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)
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Non-oil Private Sector Growth Boosts Saudi Arabia’s Economic Expansion

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)

Saudi Arabia’s non-oil private sector continued to witness steady improvements in operating conditions during May, mainly driven by an expansion in new business and a recovery in customer demand.

This strong performance underscores the resilience of Saudi Arabia’s non-oil economy and its capacity to achieve sustainable growth.

The Riyad Bank Purchasing Managers’ Index (PMI) rose in May, reaching 55.8 points, indicating a strong improvement in business conditions, though still below the peak recorded earlier this year.

These positive figures reflect growing confidence in the sector’s future, with output expectations reaching an 18-month high, signaling operational readiness for continued growth in the second half of the year.

Key findings of the PMI show a notable acceleration in new order growth during May, following a slowdown in April. Companies attributed this increase to stronger demand, robust sales performance, and new marketing initiatives. New orders from abroad also grew, although at the slowest pace in the past seven months.

This positive momentum was mirrored in employment levels, as companies increased their workforce to meet rising production requirements, marking one of the fastest hiring rates in over a decade.

The workforce growth was accompanied by a surge in purchasing activity, which saw its fastest rise since March 2024, reflecting improved supply chain flexibility.

The Kingdom’s non-oil private sector is showing strong confidence in the future, with business expectations reaching their highest level since late 2023.

Business activity rose in May, driven by increased customer demand and production needs, although the overall rate of growth was the slowest since last September. The construction sector played a key role in this growth, recording the strongest increases in both activity and new business.

Despite this strong performance, non-oil firms faced a sharp rise in input costs during May. However, inflation slowed compared to April due to reduced wage pressures.

Conversely, selling prices declined in May, driven by a sharp drop in service sector prices, with companies citing competitive pressures impacting their pricing power.

Commenting on these results, Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, affirmed that Saudi Arabia’s non-oil economy maintained its strong momentum in May.

He noted that improving demand, robust economic activity, the launch of new projects, and increased labor productivity all contributed to continued growth, despite the pace slowing to its lowest level since September 2024.