Egypt Says India Wheat Deal Agreed but Not Signed Yet

A worker sifts wheat before filling in sacks at the market yard of the Agriculture Product Marketing Committee (APMC) on the outskirts of Ahmedabad, India, May 16, 2022. (Reuters)
A worker sifts wheat before filling in sacks at the market yard of the Agriculture Product Marketing Committee (APMC) on the outskirts of Ahmedabad, India, May 16, 2022. (Reuters)
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Egypt Says India Wheat Deal Agreed but Not Signed Yet

A worker sifts wheat before filling in sacks at the market yard of the Agriculture Product Marketing Committee (APMC) on the outskirts of Ahmedabad, India, May 16, 2022. (Reuters)
A worker sifts wheat before filling in sacks at the market yard of the Agriculture Product Marketing Committee (APMC) on the outskirts of Ahmedabad, India, May 16, 2022. (Reuters)

Egypt's supply minister said on Tuesday a deal with India to directly purchase 500,000 tons of wheat outside the usual tender system had been agreed but not signed yet.

Supply Minister Aly Moselhy told Reuters about the deal earlier this week, shortly after India announced a ban on wheat exports because of a heatwave curtailing local production.

India's government confirmed on Tuesday that it would still allow shipments awaiting customs clearance and exports to Egypt, often the world's largest importer of wheat.

"We have agreed but we haven't made the contract," Moselhy told reporters in Cairo on Tuesday when asked about the deal to procure 500,000 tons from India. He repeated an earlier statement that deals between governments would not be affected by the ban.

Egypt was currently focused on collecting wheat from the local harvest, which typically runs until July or August, rather than imports, Moselhy added.

Egypt's wheat imports, usually secured through tenders, have been thrown into doubt by Russia's invasion of Ukraine in late February due to heavy dependence on Black Sea wheat.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.