Egypt Looks Forward to Arab Industrial Integration

The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
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Egypt Looks Forward to Arab Industrial Integration

The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 

Egypt’s Minister of Trade and Industry Ahmed Samir inaugurated on Tuesday the 13th Kuwait Week Exhibition in Cairo. 

More than 60 major Egyptian and Kuwaiti companies have taken part in the two-day event, which is held under the theme “Kuwait in Egypt” and organized by the Kuwaiti embassy in Cairo and Jabriya Exhibition Group.

Ministers of supply, finance, civil aviation, immigration and public business sector also attended the opening ceremony.

Samir said Cairo is keen to bolster economic cooperation and integration among Arab states, which would contribute to achieving food security and launching an industrial system based on exchanging expertise, technologies, and production inputs to reach the level of Arab industrial integration.

“Egypt and Kuwait enjoy strong economic relations at the bilateral and multilateral levels, in line with the Greater Arab Free Trade Area (GAFTA) agreement,” Samir said, noting that the two countries also play an important role within the joint Arab action system.

He pointed to the investment opportunities available in Egypt for Kuwait’s business community in various productive and service sectors to provide the needs of the Egyptian market and export to foreign markets,

Samir indicated that the products manufactured in Egypt have free access to many markets and major economic blocs across the world thanks to the preferential free trade agreements signed between Egypt and these countries and blocs.

He said that the event represents an economic bridge that helps boost bilateral economic cooperation in various fields and at different levels.

“Both governments are keen to take advantage of the great potentials and capabilities enjoyed by Egypt and Kuwait and translate them into tangible cooperation projects that serve their people’s interests.”

He underlined the common visions between Kuwaiti and Egyptian officials that stress the importance of strengthening joint efforts to address the negative repercussions of the current global economic crisis resulting from the coronavirus pandemic and the Russian-Ukrainian crisis.

The volume of trade exchange between Egypt and Kuwait amounted to about $306 million in 2021, compared to about $252 million in 2020, up 21.4%.

Meanwhile, the volume of trade exchange between the two countries amounted to about $401 million during the first 11 months of 2022.

Kuwait's Ambassador to Egypt Ghanim al-Ghanim, for his part, said holding the event in Cairo underscored the importance of boosting joint cooperation in various fields and at various levels.

He said the event is an expo of Kuwaiti and Egyptian industry, trade, investment, banking, medicine, tourism, media, culture and communication businesses and government bodies.



S&P Upgrades Italy in Surprise Boost for PM Meloni

 Italian Prime Minister Giorgia Meloni waits for the arrival of Queen Rania of Jordan at Villa Doria Pamphili in Rome, Italy, 09 April 2025. (EPA)
Italian Prime Minister Giorgia Meloni waits for the arrival of Queen Rania of Jordan at Villa Doria Pamphili in Rome, Italy, 09 April 2025. (EPA)
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S&P Upgrades Italy in Surprise Boost for PM Meloni

 Italian Prime Minister Giorgia Meloni waits for the arrival of Queen Rania of Jordan at Villa Doria Pamphili in Rome, Italy, 09 April 2025. (EPA)
Italian Prime Minister Giorgia Meloni waits for the arrival of Queen Rania of Jordan at Villa Doria Pamphili in Rome, Italy, 09 April 2025. (EPA)

Credit ratings agency S&P Global upgraded Italy on Friday in a surprise move just days after Rome halved its economic growth forecast amid global market turmoil and said its huge public debt would rise this year and next.

S&P Global raised Italy's sovereign debt rating to BBB+ from BBB, citing its falling budget deficit, resilient exports and high domestic savings rate, and confidence that the European Central Bank will keep any inflationary pressures in check.

It said the new rating carried a stable outlook.

"The upgrade reflects Italy's improved economic, external, and monetary buffers amid rising global headwinds, and the gradual progress it has made in stabilizing public finances since the (COVID-19) pandemic's onset," S&P Global said.

Earlier this month Fitch affirmed its BBB rating with a positive outlook, while Moody's rates Italy Baa3 with a stable outlook.

S&P's upgrade is a boost for Italian Prime Minister Giorgia Meloni ahead of a meeting with US President Donald Trump in Washington on Thursday expected to focus on US trade tariffs which have hit financial markets worldwide and clouded economic prospects.

S&P Global noted that Italy's net external creditor position had strengthened over the last five years to around 15% of gross domestic product, compared with close to balance just before the pandemic.

"S&P's judgment rewards the seriousness of the Italian government's approach to budget policy," said Economy Minister Giancarlo Giorgetti. "In the general uncertain climate, prudence and responsibility will continue to be our course of action."

The agency had made no change to Italy's rating or outlook since July 2022, when it revised the outlook to stable from positive following the collapse of the government of former Prime Minister Mario Draghi.

STAGNANT ECONOMY

On Wednesday, Italy committed to keeping its budget deficit in check even as it slashed its economic growth forecasts against a backdrop of mounting uncertainty connected to the US trade tariffs.

Yet even before Trump's tariff announcements, the euro zone's third largest economy has posted virtually no growth since mid-2024.

Italian GDP edged up by 0.1% in the fourth quarter of last year from the previous three months after stagnating in the third quarter. No pick-up is expected in the near term.

In its multi-year economic framework issued on Wednesday, the government cut its forecast for 2025 GDP growth to 0.6% from a projection of 1.2% made in September, and lowered its 2026 forecast to 0.8% from 1.1%.

The Treasury confirmed its previous 2025 budget deficit estimate at 3.3% of national output and also confirmed its goal of bringing the fiscal gap below the European Union's 3% of GDP ceiling in 2026, maintaining a 2.8% target.

However, it said the public debt - the second highest in the euro zone after Greece's - would climb from 135.3% of GDP last year to 137.6% by 2026, before edging down marginally the following year.

S&P also forecast Italy's GDP growth at 0.6% this year, in line with Meloni's government, and said the country's rising debt would not stabilize until 2028.

Nonetheless, it said Trump's latest decision to suspend previously announced 20% tariffs on European Union goods for three months, and to impose a milder 10%, meant the hit to Italy's economy would be "manageable".