Egypt Opens Door to Local, Foreign Investments

Egypt's Forum for International Cooperation and Development Finance (Asharq Al-Awsat)
Egypt's Forum for International Cooperation and Development Finance (Asharq Al-Awsat)
TT

Egypt Opens Door to Local, Foreign Investments

Egypt's Forum for International Cooperation and Development Finance (Asharq Al-Awsat)
Egypt's Forum for International Cooperation and Development Finance (Asharq Al-Awsat)

Egypt's robust infrastructure and supportive political will that supports the private sector has opened its doors to local and foreign investments to achieve comprehensive and sustainable development, said the country's Finance Minister.

Mohamed Maait met with the CEO of the International Islamic Trade Finance Corporation (ITFC) and Islamic Corporation for the Development of the Private Sector (ICD), Hani Sonbol, on the sidelines of Egypt's Forum for International Cooperation and Development Finance in the New Administrative Capital.

The Minister asserted that Egypt seeks to increase its efforts to diversify sources and financing tools which would reduce the cost of development investments, especially with the current global economic crisis.

He pointed to the growing opportunities for cooperation with the ICD in many projects, and benefited from its experiences in Egypt's issuance of green Sukuk in a way that attracts new investors, helps sustain the economy, creates job opportunities, and boosts living standards and services provided to them.

The Minister explained that Egypt is studying with Japan the issuance of green Samurai bonds during the coming period.

Egypt successfully offered the first Samurai bonds in the Japanese market, valued at 60 billion Japanese yen, which attracted many Japanese investors.

He indicated that Egypt is also on ongoing joint venture with China to issue Panda bonds in the Chinese market.

Sonbol stressed that ICD's work is based on its significant experience in issuing sovereign Sukuk, noting that the Organization's work was praised by international institutions, explaining that there is an opportunity to cooperate with Egypt in this field.

"We look forward to working together to issue sovereign Sukuk or green Sukuk in Egypt," said Sonbol, adding that the Organization is experienced in the water, energy, and food sectors and can offer ambitious programs that support the national platform for green projects.

Later, Maait discussed with the co-chair of the High-Level Expert Group on Climate Finance, Vera Songwe, establishing a mechanism for exchanging commodities between African countries, primarily wheat and fertilizers.

During their meeting, Maait and Songwe exchanged views and ideas on mechanisms for achieving food security at the continental level to optimize the available resources, especially in light of the severe disruption in supply chains.

The Minister lauded Songwe's achievement during her tenure as Under Secretary of the United Nations Economic Commission for Africa, wishing her success in her new duties.

Maait invited Songwe to attend the "Finance Day" and adopt African visions to facilitate development funds that support green transformation and contribute to combating climate change.



Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
TT

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.