Saudi-Egyptian Electrical Connection Improves Power Supply in the Region

The sun sets behind high-voltage power line poles (Reuters)
The sun sets behind high-voltage power line poles (Reuters)
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Saudi-Egyptian Electrical Connection Improves Power Supply in the Region

The sun sets behind high-voltage power line poles (Reuters)
The sun sets behind high-voltage power line poles (Reuters)

Mohamed Farouk, Vice Chairman of El-Gammal Group, the company implementing the Egypt-Saudi Arabia electrical interconnection project, stated that the initiative will significantly enhance electricity supply in the region and reduce power outages that many Arab countries have been grappling with.

During the past summer, at least seven Arab countries, including Kuwait—a nation known for its oil wealth—experienced recurring power cuts due to record-breaking heatwaves.

In an interview with Asharq Al-Awsat from his office in Cairo, Farouk explained that the electrical interconnection, set to launch between April and May next year, will bolster the reliability of power stations in both Egypt and Saudi Arabia.

He added that this project is expected to serve as a cornerstone for broader Arab electrical integration.

The initiative originated from a cooperation agreement signed by Egypt and Saudi Arabia in 2012, with an estimated cost of $1.8 billion, of which $600 million is Egypt’s share. Funding has been provided by the Kuwait Fund for Arab Economic Development, the Arab Fund for Economic and Social Development, the Islamic Development Bank, and internal resources from the Egyptian Electricity Transmission Company.

This project represents the first high-voltage current exchange initiative in the Middle East and North Africa. It spans from Badr City in Egypt to Madinah, passing through Tabuk in Saudi Arabia. It includes the construction of three high-voltage conversion stations: two in Saudi Arabia, located in Madinah and Tabuk, and one in Badr, east of Cairo. These stations will be interconnected by overhead transmission lines stretching approximately 1,350 kilometers, along with 22 kilometers of underwater cables across the Gulf of Aqaba.

Farouk also announced that El-Gammal Group has earmarked $200 million to establish a polyethylene manufacturing complex in Saudi Arabia, with completion planned by the end of next year.

The company is targeting a 25% market share in Saudi Arabia’s polyethylene sector within three to four years.

“We have obtained the necessary licenses for the factory and are currently in the process of selecting the most suitable location,” Farouk explained.

The group is actively engaged in infrastructure and energy projects and produces a significant portion of the materials used in these endeavors, such as pipelines for oil and gas projects. One of its notable achievements includes the monorail project, where it integrated all stations with the Greater Cairo electricity distribution network.

Farouk emphasized the significance of the Saudi market, describing it as “large and promising.”

He added: “We aim to establish a strong presence in Saudi Arabia, both in the general contracting and manufacturing sectors.”



Egypt Imposes Business Curfew to Counter Soaring Fuel Costs

Cairo was forced to raise fuel prices by more than 30 percent, after strikes on regional oil infrastructure and threats against the Strait of Hormuz (File Photo)
Cairo was forced to raise fuel prices by more than 30 percent, after strikes on regional oil infrastructure and threats against the Strait of Hormuz (File Photo)
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Egypt Imposes Business Curfew to Counter Soaring Fuel Costs

Cairo was forced to raise fuel prices by more than 30 percent, after strikes on regional oil infrastructure and threats against the Strait of Hormuz (File Photo)
Cairo was forced to raise fuel prices by more than 30 percent, after strikes on regional oil infrastructure and threats against the Strait of Hormuz (File Photo)

Egypt has ordered shops, restaurants and shopping malls to close from 9:00 pm from Saturday, hoping to curb energy bills that have more than doubled because of the Iran war.

Prime Minister Mostafa Madbouly announced the curfew and said it would last for a month initially.

"Shops, shopping centers, restaurants and cafes will all close at 9:00 pm on weekdays," he said, adding that on Thursdays and Fridays at the weekend they will be allowed to stay open until 10:00 pm, Reuters reported.

The premier said that before the war, Egypt's monthly energy bill was $560 million. Today, for the same quantity, he said Egypt is paying $1.650 billion.

Madbouly said Cairo must work on the "worst-case scenario" in the face of a war whose outcome is unpredictable.

Tourism Minister Sherif Fathy said the new restrictions "will not affect tourists" or flagship destinations, a statement from his office said.

At the beginning of March, Cairo was forced to raise fuel prices by more than 30 percent, after strikes on regional oil infrastructure and threats against the Strait of Hormuz, the crucial shipping route now virtually paralysed by the war.

Around a fifth of global crude oil and liquefied natural gas passes through the waterway in peacetime.

The rerouting of shipping away from the Suez Canal is also depriving Cairo of a vital source of foreign currency.


Turkish Central Bank Forex Sales since Start of Iran War Close to $45 Billion

Turkish Central Bank (official website)
Turkish Central Bank (official website)
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Turkish Central Bank Forex Sales since Start of Iran War Close to $45 Billion

Turkish Central Bank (official website)
Turkish Central Bank (official website)

The Turkish Central Bank's balance sheet for this week will show foreign exchange sales amounting to near $20 billion, bringing the total forex sales since the beginning of the Iran war to nearly $45 billion, bankers said, Reuters reported.

According to calculations made by four bankers, based on preliminary data for the first part of the week and their estimates for the rest of the week, the central bank's balance sheet will show $18-21 billion in foreign exchange sales.

Bankers said that although $8 billion of the total $20 billion was made before a public holiday last week, this figure will be reflected in the balance sheet on the first day of this week.

The central bank sold $26 billion in foreign exchange in the first three weeks of the war, using its gold reserves as well, resulting in a $35 billion decrease in its net reserves.


Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port
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Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

Mawani Adds Marsa Ocean Shipping's RSX Service to Jeddah Islamic Port

The Saudi Ports Authority (Mawani) has announced the addition of the RSX service by Marsa Ocean Shipping to Jeddah Islamic Port, featuring a capacity of up to 372 TEUs and connecting Jeddah with the regional ports of Aden, Hodeidah, and Djibouti, SPA reported.

This expansion aligns with the National Transport and Logistics Strategy, aiming to enhance the Kingdom’s operational efficiency and its ranking in global performance indicators.

As a primary gateway, Jeddah Islamic Port utilizes its 62 multipurpose berths and specialized terminals to support a total capacity of 130 million tons, reinforcing Saudi Arabia’s position as a global logistics hub connecting three continents.