China to Invest $5 Bn in Egypt

Officials touring the Chinese projects in Egypt (Suez Canal Economic Zone)
Officials touring the Chinese projects in Egypt (Suez Canal Economic Zone)
TT

China to Invest $5 Bn in Egypt

Officials touring the Chinese projects in Egypt (Suez Canal Economic Zone)
Officials touring the Chinese projects in Egypt (Suez Canal Economic Zone)

Egypt's Suez Canal Economic Zone is in negotiations with Chinese companies to implement investment projects worth $5 billion, according to an official statement from the Suez Canal Authority.

The deputy chairman of the southern part of the Zone, Walid Youssef, visited the Chinese industrial zone TEDA in Ain Sukhna on the Red Sea coast.

Youssef met with several directors of Chinese companies operating in the region to follow up on developments in implementing investment projects.

The meeting discussed some Chinese projects to be implemented through the ongoing negotiations with TEDA-Egypt.

In a press release, the Suez Canal Economic Zone indicated that Chinese companies intended to implement industrial projects in Egypt for the first time, with total investments of $5 billion, providing at least 5,000 direct and indirect jobs.

The meeting discussed cooperation during the coming period and mechanisms for attracting more Chinese investments to the region, especially after the expansions and new production lines.

The meeting addressed some outstanding issues and problems facing investors in light of global and political changes affecting global supply chains.

According to the statement, the official affirmed that the administration is determined to attract the largest possible amount of investments in the industrial sectors to meet the needs of local and regional markets.

For his part, Vice Minister and Deputy Chairman for Investment Ibrahim Abdelkhalek described the trade and economic relations between Egypt and China as "strong," referring to efforts to attract more Chinese investments in the region as part of the Belt and Road Initiative (BRI).

The UN determines the Belt and Road Initiative as a global development strategy adopted by the Chinese government, which includes infrastructure development and investments in 152 countries and international organizations in Europe, Asia, the Middle East, Latin America, and Africa.

The meeting discussed requests for new projects from developers and investors for approval under the Authority's regulations.

The Zone announced that during the coming period, the largest Chinese factory to manufacture electrical appliances would begin operations and exportation to global markets.



Oil Prices Ease as Markets Weigh China Stimulus Hopes

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT

Oil Prices Ease as Markets Weigh China Stimulus Hopes

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil edged lower on Thursday in light holiday trade as the dollar's strength offset hopes for additional fiscal stimulus in China, the world's biggest oil importer.

Brent crude futures settled down 32 cents, or 0.43%, at $73.26 a barrel. US West Texas Intermediate crude closed at $69.62, down 0.68%, or 48 cents, from Tuesday's pre-Christmas settlement.

Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive a faltering economy.

"Injecting a stimulus into a nation's economy creates increased demand, and increased demand pushes prices higher," said Tim Snyder, chief economist at Matador Economics, Reuters reported.

The World Bank on Thursday raised its forecast for China's economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would keep weighing it down next year.

The US dollar continued to edge up higher after hitting a milestone last week. A stronger dollar makes oil more expensive for holders of other currencies.

The latest weekly report on US inventories, from the American Petroleum Institute industry group, showed crude stocks fell last week by 3.2 million barrels, market sources said on Tuesday.

Traders will be waiting to see if the official inventory report from the Energy Information Administration confirms the decline. The EIA data is due at 1 p.m. EST (1800 GMT) on Friday, later than normal because of the Christmas holiday.

Analysts in a Reuters poll expect crude inventories fell by about 1.9 million barrels in the week to Dec. 20, while gasoline and distillate inventories are seen falling by 1.1 million barrels and 0.3 million barrels respectively.

Elsewhere, southbound traffic in Turkey's Bosphorus Strait was set to resume on Thursday, having been halted earlier in the day after a tanker suffered an engine failure, shipping agent Tribeca said.