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Egypt Reinforces Strategic Position as Telecom Hub through Subsea Cable with Greece

Signing ceremony between Telecom Egypt and Grid Telecom to build a subsea system (Egyptian Government)
Signing ceremony between Telecom Egypt and Grid Telecom to build a subsea system (Egyptian Government)
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Egypt Reinforces Strategic Position as Telecom Hub through Subsea Cable with Greece

Signing ceremony between Telecom Egypt and Grid Telecom to build a subsea system (Egyptian Government)
Signing ceremony between Telecom Egypt and Grid Telecom to build a subsea system (Egyptian Government)

Egypt concluded an agreement with Greece Tuesday to establish a subsea cable linking the two countries across the Mediterranean.

Telecom Egypt, the first integrated telecom operator, and Grid Telecom, a wholly-owned subsidiary of the Independent Power Transmission Operator (IPTO) in Greece, signed a collaboration agreement to build a subsea system connecting the two countries.

Egypt’s Minister of Telecommunications and Information Technology Amr Talaat witnessed the signing ceremony in Cairo.

The Managing Director and CEO of Telecom Egypt, Adel Hamed, and the Chairman and CEO of IPTO, Manos Manousakis, signed the agreement.

The deal is a testimony of the strategic cooperation between Telecom Egypt and Grid Telecom.

It comes in line with Telecom Egypt’s strategy of strengthening its infrastructure, expanding its international network, and increasing its entry points to Europe by providing an eastern gateway via Greece through the new subsea system.

Talaat said that more than 90 percent of the data flow between East and West passes via Egyptian territorial waters and lands, pointing out that the agreement is the culmination of ten months of hard work since the start of the negotiations during his February visit to Greece.

During his previous visit, Talaat witnessed the signing of a Memorandum of Understanding (MoU) between Telecom Egypt and Grid Telecom to connect the two countries using subsea cable systems.

The system will connect Port Said in Egypt to Crete island.

The Managing Director and CEO of Telecom Egypt, Adel Hamed, said that the new agreement would give additional value to the company’s worldwide reach to more than 140 destinations in over 60 countries.

Chairman and CEO of IPTO Manos Manousakis explained that IPTO Group is taking the initiative to transform Greece into a binding energy and data hub of high geopolitical value at the crossroads of Europe, Africa, and Asia.

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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat

The Saudi-Yemeni Business Council is leading the initiative "Saudi Vision and Yemeni Development 2030," which aims to enhance economic ties between Saudi Arabia and Yemen by developing border crossings, establishing economic zones, and creating smart food cities. This contributes to facilitating the movement of goods and people, as well as increasing the volume of trade.

Official data indicates that the trade exchange between Saudi Arabia and Yemen reached approximately 6.3 billion riyals (1.6 billion dollars) in 2023, with Saudi exports accounting for the largest share. Despite this, Yemeni imports are still below the available potential, particularly in the agriculture, fisheries, and mining sectors.

The main projects of this initiative, which is led by the council under chairman of the Saudi-Yemeni Business Council Dr. Abdullah bin Mahfouz, include "the establishment of joint economic zones, development of infrastructure and logistics services, and strengthening investment in the agricultural and renewable energy sectors."

The project also involves creating advanced laboratories for testing livestock, fruits, and vegetables, contributing to improving the quality of goods and increasing Yemen's agricultural and livestock exports to Saudi Arabia.

These efforts aim to enhance food security for Saudi Arabia and achieve economic growth for Yemen.

As part of the future plans to enhance economic partnership, an exhibition titled "Reconstruction and Development of Yemen" will be held in Riyadh next year. This exhibition aims to attract investors from various sectors and strengthen partnerships between Saudi and Yemeni companies.

"Yemeni investments in Saudi Arabia have witnessed significant growth, reaching approximately 18 billion riyals (4.8 billion dollars) by the end of 2023, ranking 13th in terms of investment volume."

These investments focus on wholesale and retail trade, particularly in food products, clothing, and household goods, as well as in sectors such as construction, manufacturing, and logistics services.

Bin Mahfouz explained that "this investment expansion is due to the support provided by the Saudi government to Yemeni investors through streamlining licensing procedures, offering investment incentives, and ensuring a stable investment environment. These factors have contributed to attracting Yemeni capital to Saudi Arabia, while enhancing investors' benefits from available economic opportunities."

Despite the noticeable progress, Yemeni investments face significant challenges. According to bin Mahfouz, the main challenges include "the instability of the Yemeni local currency, the banking restrictions that hinder money transfers, the weak infrastructure in Yemen, and the ongoing armed conflicts that increase investment risks."

He said that the council’s future plans focus on promising projects, including the cultivation of agricultural land in Yemen, the establishment of packaging centers for agricultural products and fishery resources, in addition to developing livestock projects.

Bin Mahfouz emphasized that Yemen is considered a key market for Saudi Arabia in providing agricultural and livestock products that have comparative advantages over similar goods from other countries. According to economic data from 2022, animal production ranks second after agricultural production in terms of its contribution to Yemen's total GDP, accounting for more than 20 percent.