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Saudi Energy Minister, Iraqi Counterpart Discuss Connecting Electricity Grids

The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
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Saudi Energy Minister, Iraqi Counterpart Discuss Connecting Electricity Grids

The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)

Saudi Minister of Energy Prince Abdulaziz bin Salman and Iraqi Minister of Oil Ihsan Ismail discussed on Thursday connecting their electricity grids.

The ministers explored issues of common interest in various energy fields.

The meeting discussed ways to strengthen cooperation in the energy fields in order achieve shared leadership through the Saudi-Iraqi Coordination Council.

They also discussed the oil market and joint cooperation between their countries to support and maintain market stability and their active role within OPEC+.

Saudi Arabia and Iraq had signed a memorandum of understanding in January to connect their electricity grids.

The agreement aims to share the electricity-generating reserves and exchange electricity between the neighbors for emergency use in case of a power cut.

“We aim to achieve optimal investment in the electrical connection with Iraq,” said Prince Abdulaziz, adding that this project comes within the framework of the Kingdom's Vision 2030 and its executive programs.

“The project came after a study that showed that the linkage provided promising opportunities between the two countries,” he added.

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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)
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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.