Egypt’s Trade Balance Deficit Drops 12.4%

The value of Egypt’s trade balance deficit reached $3.21 billion in June, down from $3.66 billion for the same month of the previous year. (Asharq Al-Awsat)
The value of Egypt’s trade balance deficit reached $3.21 billion in June, down from $3.66 billion for the same month of the previous year. (Asharq Al-Awsat)
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Egypt’s Trade Balance Deficit Drops 12.4%

The value of Egypt’s trade balance deficit reached $3.21 billion in June, down from $3.66 billion for the same month of the previous year. (Asharq Al-Awsat)
The value of Egypt’s trade balance deficit reached $3.21 billion in June, down from $3.66 billion for the same month of the previous year. (Asharq Al-Awsat)

Egypt’s trade deficit declined by 12.4% year-on-year (YoY) in June, according to data released on Monday by the Central Agency for Public Mobilization and Statistics (CAPMAS).

The monthly bulletin revealed that the deficit value of trade balance reached $3.21 billion in June, down from $3.66 billion for the same month of the previous year.

The country’s exports dropped by 3.3% YoY in June to $3.75, versus $3.88 billion for the same month of the previous year.

The value of imports also decreased by 7.7 % to $6.96 billion during June 2022, versus $7.54 billion in June 2021.

Separately, the European Bank for Reconstruction and Development’s (EBRD) Managing Director for the Southern and Eastern Mediterranean, Heike Harmgart, said that bank will help finance the decommissioning of 5GW of inefficient gas-fired power plants in Egypt from 2023 while pledging up to $1 billion for renewables.

EBRD would raise up to $300 million in sovereign financing for projects including work to stabilize Egypt's grid, adding battery storage, developing the local supply chain for renewables, and retraining workers, Harmgart added.

She explained that a separate $1 billion pledged for renewables would be about one tenth of the private funding needed for 10GW of mainly wind-powered projects planned by the government by 2028.

Egypt is a natural gas producer that is trying to cut down on domestic consumption so that it can export more to Europe at a time of high prices and demand resulting from Russia's invasion of Ukraine.

It has a power surplus after installing three huge gas-fired power plants built by Siemens from 2015.

The government is hoping gas exports can help contain pressure on Cairo’s currency after the Ukraine war triggered the latest dip in dollar inflows from portfolio investment and tourism.

The role of gas is set to be an issue of dispute at the COP27 climate summit in Egypt in November.

Climate activists say there should a rapid transition away from gas. As host of COP27, Egypt is giving a voice to some African states that want to continue using gas as a transition fuel to develop their economies.

About 3GW of the planned 10GW of new renewable power would be made available for a pilot phase in the production of green hydrogen in Egypt's Red Sea port of Ain Sokhna, Harmgart said.

Some would go to replacing capacity lost through the decommissioning of the thermal power plants.

Egypt has announced a string of memoranda of understanding for green hydrogen and ammonia projects at Ain Sokhna.



Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
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Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer revealed that spending on exploration in Saudi Arabia’s mining sector has seen a significant rise, increasing from approximately SAR 100 million ($26.6 million) in 2018 to over SAR 500 million ($133.3 million) annually.

Al-Mudaifer stated that these funds are being invested in local service companies, including drilling and laboratory services, as well as employing Saudi and international professionals.

The deputy minister made these remarks during a press conference held to unveil details of the fourth edition of the International Mining Conference, scheduled to take place in Riyadh from January 14-16.

Al-Mudaifer described the conference as a key platform for addressing challenges in the mining sector and finding practical solutions. The event will host representatives from 85 countries, including mineral producers and consumers, alongside over 50 international organizations, trade unions, and community organizations.

The conference will feature more than 75 sessions with over 250 speakers, including ministers and senior local and international officials, covering pressing topics such as project financing, promoting future mining zones, the role of minerals in community development, and the impact of technology on the sector.

Al-Mudaifer emphasized Saudi Arabia’s ambition to establish international cooperation frameworks in mining, driven by its historical significance and geographic location as a trusted energy supplier. He highlighted the need for a unified global effort to address the sector’s growing challenges, including insufficient exploration spending, which currently falls short of the level required to achieve sustainable growth.

The deputy minister noted that increased exploration investment, technological innovation, and attracting further investment are essential for overcoming these challenges. Despite these obstacles, he remains optimistic, citing the rising global demand for minerals as a significant economic growth driver.

Saudi Arabia is experiencing significant opportunities in mining, particularly in exploration. Al-Mudaifer pointed out that new mineralized zones, covering areas between 2,000 and 4,000 square kilometers, have been announced for 2024—a tenfold increase compared to 2023.

Previously, only 1,000 square kilometers were allocated annually for exploration, but this year, approximately 10,000 square kilometers were offered, he remarked. Several major international companies have entered the latest investment competitions, committing to exploration spending, employing young Saudi geologists, and supporting local communities near exploration sites.

Investments and Regulatory Advancements

According to Al-Mudaifer, Saudi Arabia has seen substantial investments in the mining and minerals sectors, particularly in iron, aluminum, electric vehicle batteries, copper, and chemicals. Current investments exceed SAR 120 billion ($32 billion) and are projected to reach SAR 300 billion ($80 billion) by 2035.

He also noted that the Kingdom, is one of the fastest-advancing countries in developing mining regulations and infrastructure. This progress is attributed to the comprehensive strategies under Saudi Vision 2030, which seek to position the Kingdom as a global leader in all sectors, with a strong focus on sustainability.

Aramco Fields

Al-Mudaifer disclosed that Saudi Arabia successfully extracted lithium from brine samples in Aramco’s fields and is planning to launch a commercial pilot program for direct lithium extraction soon. The project will be led by Lithium Infinity (LihyTech), a startup from King Abdullah University of Science and Technology, in collaboration with Aramco and the Saudi Arabian Mining Company (Ma’aden).

Sustainable Development

Ali Al-Mutairi, General Supervisor of the International Mining Conference, stated that inclusivity will be a cornerstone of the event, which aims to bring together all stakeholders in the global mining industry, including governments, international policy-making organizations, NGOs, and investors with the financial capacity to support major projects.

One of the primary goals of the sector, he added, is to foster community development, aligning with the focus of rights of organizations on environmental sustainability and talent development to create job opportunities and promote sustainable growth.

Global Networks

The upcoming conference will spotlight G20 nations and other resource-rich countries, drawing participation from 85 nations and various organizations, including UN-affiliated ones.

A notable new event on the conference’s sidelines will be a meeting of global centers of excellence and technology to establish a regional and international network aimed at building human capacity, accelerating the adoption of advanced technologies, and transferring expertise from developed to less-developed countries.

The conference will also introduce the Investment Pathway, a two-day program designed to address one of the mining industry’s critical challenges: financing, particularly for early-stage exploration projects.

Knowledge Exchange

The accompanying three-day exhibition will focus on modern mining technologies, Al-Mutairi said, adding that it will feature national pavilions from leading mineral-producing countries, including Australia, Canada, Brazil, and India, fostering technological and knowledge exchange.

For the first time, the conference will host a Knowledge Exchange Day, providing a dedicated platform to share the latest developments in mineral information, geology, technology, sustainability, and talent development, with the aim to enhance collaboration and expertise-sharing among global specialists.