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Egypt Underlines Growth in Activities, Economic Returns of Public Sector Oil Companies

Egypt’s Petroleum Minister Tarek el-Molla attends meetings of the general assemblies of public sector oil companies. (Asharq Al-Awsat)
Egypt’s Petroleum Minister Tarek el-Molla attends meetings of the general assemblies of public sector oil companies. (Asharq Al-Awsat)
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Egypt Underlines Growth in Activities, Economic Returns of Public Sector Oil Companies

Egypt’s Petroleum Minister Tarek el-Molla attends meetings of the general assemblies of public sector oil companies. (Asharq Al-Awsat)
Egypt’s Petroleum Minister Tarek el-Molla attends meetings of the general assemblies of public sector oil companies. (Asharq Al-Awsat)

Egypt's Minister of Petroleum and Mineral Resources Tarek el-Molla chaired on Sunday the meetings of the general assemblies of public sector oil companies, via video conference, to discuss and approve the results of FY 2021/22.

He affirmed that the public sector oil companies have developed remarkably in recent years, citing the modernization in their facilities and growth in their activities, economic returns and capital.

Molla further underlined these companies’ success in achieving outstanding results during the last fiscal year, despite the circumstances and challenges the world is going through and their repercussions.

“The economic reform policies and rationalization of subsidies have helped the public sector oil entities meet their requirements, develop their performance and increase the added value thereof for the benefit of the Egyptian economy,” Molla explained.

The Minister highlighted the continued development of the butane system in Egypt to keep pace with the comprehensive development in the petroleum sector and the work of raising efficiency, digitization, governance and enhancing safety.

He noted that the average consumption of butane has dropped from 4.2 million tons to 3.6 million tons annually despite the population increase.

Egypt wants to generate $8.5-10 billion in natural gas revenues in FY 2022/23, up from $6.5 billion in 2021, Molla told Al-Arabiya Channel on Sunday.

For his part, Chemist Majid al-Kurdi, head of Assiut Petroleum Refining Company, reviewed the most important results of the company’s work during the fiscal year 2021/22.

He said the company refined about 3.4 million tons of crude to supply petroleum products to the local market at a value of EGP47 billion.

Kurdi pointed out that the volume of investments that were pumped amounted to about 1.3 billion pounds to implement replacement and renewal programs and projects, enhance the requirements of occupational safety and health, protect the environment, and start implementing new production units.

Meanwhile, Eng Ayman Abdel Badie, President of the Petroleum Pipelines Company, reviewed the most important projects implemented to develop the national network for transporting crude and petroleum products through pipelines.

He highlighted the unprecedented investments amounting to about EGP3.3 billion to implement replacement and renewal projects, raise efficiency of the pipelines, industrial security and environmental protection.

Abdel Badie stressed that the Damietta-Tanta gas pipeline is considered one of the most important projects within the ministry’s strategy to transform Egypt into a regional hub for the trade and circulation of petroleum products.

President of Petrogas Company Nabawi Mahmoud, for his part, reviewed the most important results of the work.

He said that about 3.6 million tons of butane gas were supplied to the local market during the fiscal year 2021/22, down 1.6%.

Mahmoud said 309 million cylinders of butane were filled in 49 factories and distributed through 3093 distribution centers, while 3.9 million cylinders were rehabilitated for consumers.

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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.