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)
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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.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.