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Saudi Arabia Signs Energy MoUs with Egypt, Oman

The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
    Sharm el-Sheikh - Lamia Nabil
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Saudi Arabia Signs Energy MoUs with Egypt, Oman

The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)
The signing of the MoU between Saudi Arabia and Egypt (Asharq Al-Awsat)

Saudi Arabia signed two separate memoranda of understanding in the energy field with Egypt and the Sultanate of Oman on Monday, on the sidelines of the 2022 United Nations Climate Change Conference and the second edition of the Green Middle East Initiative summit, which were held in the Egyptian city of Sharm el-Sheikh.

Saudi Minister of Energy Prince Abdulaziz bin Salman and the Egyptian Minister of Electricity and Renewable Energy, Dr. Muhammad Shaker, signed an MoU for bilateral cooperation, which aims to enhance cooperation in the production and export of electricity from renewable energy, transport of clean hydrogen transport, and electrical interconnection.

The agreement also encourages digital transformation, innovation, cyber-security, and artificial intelligence, as well as the efforts to develop qualitative partnerships in localization, services and supply chains.

Moreover, the MoU supports joint research with universities, research centers and others, in addition to the holding of conferences, seminars and work sessions, as well as building human capacities through training and exchanging information and experiences, with the aim to deepen and expand cooperation between the two countries.

The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.

The memorandum also encourages digital transformation, innovation, cooperation between specialized companies, and the development of qualitative partnerships for the localization of materials, products, services, supply chains and technologies, in all fields of energy.

The memorandum includes exchanging training courses and experts’ visits, and conducting scientific research on energy, which would contribute to strengthening cooperation between the two countries.

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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.