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Egypt Signs 30-year Concession Agreement with AD Ports to Operate Safaga Port

Egypt’s minister of transport and the ambassador of the UAE witness the signing of agreements in maritime transport on Saturday in Cairo. (Asharq Al-Awsat)
Egypt’s minister of transport and the ambassador of the UAE witness the signing of agreements in maritime transport on Saturday in Cairo. (Asharq Al-Awsat)
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Egypt Signs 30-year Concession Agreement with AD Ports to Operate Safaga Port

Egypt’s minister of transport and the ambassador of the UAE witness the signing of agreements in maritime transport on Saturday in Cairo. (Asharq Al-Awsat)
Egypt’s minister of transport and the ambassador of the UAE witness the signing of agreements in maritime transport on Saturday in Cairo. (Asharq Al-Awsat)

Egypt's transport ministry signed on Saturday several agreements in maritime transport with AD Ports Group to manage, operate, and maintain the port of Safaga, and to allow for expanded access to multipurpose terminals and cruise routes in Hurghada and Sharm El Sheikh.

AD Ports Group signed a 30-year concession agreement worth $200 million to develop and operate Egypt's Safaga port, according to a statement released by AD Ports on Saturday.

Two additional agreements and four head terms concerning ports located in Egypt's Red Sea region and the Mediterranean Sea were also signed, the statement said.

"AD Ports Group will invest a total of up to $200 million in superstructure and equipment, buildings, and other real estate facilities and utilities’ network inside the concession area," the statement added.

Furthermore, two 15-year agreements for the development of two cement terminals in Al Arish Port and West Port Said Port were signed between AD Ports Group and the General Authority for the Suez Canal Economic Zone requiring a combined investment of around $33 million.

AD Ports Group will construct silos with a storage capacity of up to 60,000 tons in Al Arish Port and 30,000 tons in West Port Said.

Each terminal will be able to handle 1-1.5 million tons annually.

Both terminals, which will be operational in Q4 2023, are expected to contribute to doubling Egypt's cement exports to global markets.

Egyptian Minister of Transport of Egypt Kamel al-Wazir affirmed that this contract is the beginning of a huge cooperation plan between the ministry and AD Ports Group to carry out several projects in logistics services in Egypt.

The multipurpose terminal in Safaga Port will be developed over an approximate area of 810,000 square meters and it will boast a quay wall of up to 1,000 meters.

The agreements were signed in Cairo in the presence of Lieutenant-General Kamel al-Wazir and Mariam Al Kaabi, Ambassador of the UAE to Egypt.

Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, and Major General Osama Saleh, Vice-Chairman of the Board of Directors of the Red Sea Port Authority, signed the agreement.

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Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.