COLOMBO: Sri Lanka has ordered a corruption investigation at its national carrier, including the controversial termination of a management deal with Emirates airline, the government said Saturday.
President Maithripala Sirisena has appointed a five-member panel to investigate the financial transactions of Sri Lankan airlines from 2006 to 2008, when the deal with Emirates was ended, a statement from his office said.
Sri Lankan, founded in 1979 as Air Lanka, was profitable until the government of strongman president Mahinda Rajapaksa, who ran the country from 2005 to 2015, kicked out the Emirates management team.
The deal was canceled in 2008 after Emirates refused to bump fare-paying business class passengers to give the seats to Rajapaksa’s family, who were returning to Colombo from London.
A furious Rajapaksa removed the Emirates-appointed CEO of Sri Lankan from his post and put his brother-in-law, who had no aviation industry experience, in charge of the airline.
Since then, Sri Lankan airlines has sunk into the red, with an estimated loss of more than a billion dollars and debts of $3.2 billion.
Sirisena’s office said he ordered the five-member panel to focus on the “termination of agreements between Sri Lankan airlines and Emirates, including reasons and ramifications thereof.”
Emirates paid $70 million to buy a 43.6 percent stake in Sri Lanka’s national carrier when it was privatised in 1998 and had a contract to fully manage the airline till it was forced to leave.
Emirates’ share of the company was eventually bought by the Sri Lankan government.
A criminal investigation is already underway into the airline’s purchase of new Airbus aircraft at a cost of over two billion dollars during Rajapaksa’s decade in power.
The mounting debt crisis at Sri Lankan airlines has forced the new government to seek international partners to inject capital and manage the airline, but there have been no takers so far.
The move comes amid allegations that Sri Lanka’s new government, which came to power January 2015, has been slow to crack down on corruption under Rajapaksa.
The government last week set up special courts to investigate charges of corruption amounting to billions of dollars under the former regime.
Sri Lanka probes corruption at national carrier
Sri Lanka probes corruption at national carrier
SVC invests $15m in Vision Ventures to fuel startups
RIYADH: Startups in the Kingdom are set to benefit after Saudi Venture Capital Co. committed $15 million to Saqr 2 Fund, which targets early-stage investments across the region.
The $90 million fund, managed by Saudi-based Vision Ventures, targets businesses from pre-seed to pre-series B stages, spanning various sectors in the Kingdom and the broader Middle East and North Africa region, according to the Saudi Press Agency.
Nabeel Koshak, CEO and board member of SVC, said: “The investment in Vision Ventures’ venture capital fund is part of our fund investment program.”
He added: “It aligns with our strategy to stimulate the establishment of funds that invest in Saudi startups and small and medium-sized enterprises at various growth stages. Additionally, we aim to encourage these funds to provide added value to the startups and SMEs.”
Vision Ventures, a key player in the venture capital ecosystem, expressed confidence in the collaboration.
“SVC’s continued commitment to our venture capital funds is a privilege for us,” said Kais Al-Essa, co-founder and CEO of Vision Ventures, adding: “We are proud to have SVC as a key investor in our funds once again, reaffirming the company’s ability to provide investors with exceptional performance and returns, attracting investors alongside other leading institutional investors like SVC.”
This investment is part of SVC’s broader initiative to stimulate venture capital activity in Saudi Arabia and foster the growth of startups and SMEs in the region.
Deals worth $28bn across various sectors expected at FII8, says Attias
RIYADH: Deals worth $28 billion are expected to be announced at this year’s Future Investment Initiative, said FII Institute CEO Richard Attias.
He was speaking at a press conference held in Riyadh on Tuesday to announce details about the eighth edition of the conference.
Attias said the event will bring together entrepreneurs and startups from around the world and serve as a bridge of communication between them.
The summit is committed to fostering positive change through effective solutions across various domains, including global connectivity, mining, AI, health-tech, sports, circular economy, food, economies of the future, art, culture, and other key areas.
Saudi Arabia, Italy enhance mining ties through investment talks
- Official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy
JEDDAH: Saudi-Italian mining relations are set to strengthen following meetings between senior officials in Rome focused on sustainable solutions, clean energy, and attracting investment to the Kingdom’s expanding exploration sector.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef commenced his three-day visit on Oct. 14, meeting with Italy’s Minister of Environment and Energy Security Gilberto Pichetto Fratin.
The meeting, attended by Prince Faisal bin Sattam bin Abdulaziz, Saudi ambassador to Italy, and Saleh Al-Sulami, CEO of the National Industrial Development Center, emphasized the importance of collaborative development and the strategic partnership between the two nations across various sectors, the Saudi Press Agency reported.
The official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy.
This comes on the back of Saudi Arabia’s increasing non-oil exports to Italy, which reached SR2.8 billion ($747 million) in 2023, while total non-oil imports from Italy amounted to SR21.8 billion.
In a post on his X account, Alkhorayef said: “At the beginning of my visit to Italy, I met the minister of environment and energy security, and we talked about the important partnership between Saudi Arabia and Italy in various sectors.”
He underscored the “mutual desire” to strengthen collaboration for the benefit of both countries.
During the talks, Alkhorayef outlined the promising prospects within the Kingdom’s mining sector, detailing all stages from exploration to processing. He highlighted Saudi Arabia’s untapped mineral resources, estimated at approximately $2.5 trillion, and emphasized the availability of 80 years’ worth of geological data to support informed investment decisions.
The minister also explored opportunities to enhance collaboration, share expertise, and attract joint investments in renewable energy, stressing the need for improved supply chain integration to meet local, regional, and global demands. He encouraged Italian companies to expand their operations in the Kingdom, urging the private sector to leverage significant developmental projects.
Alkhorayef extended an invitation to Fratin to attend the International Mining Conference in Riyadh in early 2025, anticipating substantial participation from Italy given its crucial role in the global mining sector.
The Italian Ministry of Environment and Energy Security expressed its commitment to supporting the transition to a low-carbon economy while promoting sustainable mineral resource management, SPA reported.
On the same day, Alkhorayef engaged in bilateral meetings with major Italian and global companies, focusing on localizing electric vehicle manufacturing opportunities, enhancing cooperation in the aviation and shipbuilding sectors, and exploring smart manufacturing solutions.
Discussions highlighted the unique opportunities presented by 12 strategic sectors central to the National Industrial Strategy and incentives designed to attract global investors, facilitating value creation for the national economy.
In his meeting with the founder and CEO of Swiss electric vehicle manufacturer Piech, Alkhorayef discussed the potential for transferring advanced automotive manufacturing technologies to the Kingdom.
He emphasized the country’s commitment to nationalizing this industry, referencing the Lucid project, which aims to produce 155,000 electric vehicles annually by 2027, and the Ceer company, targeting 170,000 vehicles by 2034.
The minister outlined Arabian Tiger Holding Co.’s plans to localize aviation manufacturing technologies in the Kingdom during discussions with its CEO, focusing on establishing a facility for aircraft component production after acquiring Piaggio Aerospace, a leader in commercial and drone aircraft.
Alkhorayef also met with officials from Fincantieri, an Italian shipbuilding firm, to explore collaboration in the maritime industry, addressing all stages of the value chain from design to delivery.
In a meeting with the international market director at AlmavivA, he discussed the latest automation solutions for industrial facilities aimed at enhancing productivity and promoting smart manufacturing cooperation between the Kingdom and Italy, with a particular focus on integrating robotics into manufacturing processes.
Alkhorayef also engaged in talks with Yousef Al-Mimni, vice chairman of the Saudi-Italian Business Council, commending the Council’s role in strengthening trade and economic ties between the Kingdom and Italy.
He encouraged Italian private sector companies to invest in promising sectors in Saudi Arabia, particularly in industrial and mining.
Saudi-South African Business Forum sees $25m credit agreement signed to help exporters
RIYADH: A $25 million credit agreement involving the Saudi Export-Import Bank and a major South African financial institution was among the deals struck at a special business forum in Johannesburg.
The arrangement with Standard Bank Group will see companies in the Kingdom given extra funding support to trade with the African country.
The deal was signed during the Saudi-South African Business Forum, which saw 420 business leaders and officials discuss how to boost economic ties between the nations – with an emphasis on the mining sector, the Saudi Press Agency reported.
Bloomberg cited Naif Al-Shammari, Saudi EXIM’s deputy CEO, as saying that the agreement with Standard Bank Group will bolster trade links between the two countries.
Another memorandum of cooperation was signed between the Saudi Export Development Authority and Skytower Development Co.
Commerce between Saudi Arabia and South Africa was estimated at about $3.5 billion in 2023. The Kingdom also ranks first among South Africa’s trading partners in the region.
The high-level Saudi delegation attending the forum was led by the Minister of Commerce and Chairman of the National Competitiveness Center, Majid bin Abdullah Al-Qasabi, and was organized by the NCC in collaboration with the Federation of Saudi Chambers and the South African Ministry of Trade and Industry, according to SPA.
One panel at the event addressed cooperation in the mining sector, while the another discussed expanding the economic partnership between the Kingdom and South Africa in light of promising opportunities.
It also introduced the mechanisms used by relevant authorities to resolve challenges facing the business sector.
The forum also falls in line with the Kingdom’s commitment to strengthening its trade and economic relations with the African continent, which was announced by the Crown Prince and Prime Minister of Saudi Arabia at the Saudi-African Summit held in Riyadh last November.
The gathering included a presentation on the key reforms implemented to enhance the Kingdom’s competitiveness, delivered by the Vice Minister of Commerce and NCC CEO Iman bint Habas Al-Mutairi.
Al-Mutairi reviewed the positive outcomes witnessed in Saudi Arabia’s economy and business environment, such as implementing more than 820 economic reforms carried out by 65 government entities since 2016 across nine key sectors.
About 1,200 regulations and laws have been issued or updated, boosting the legal framework and contributing to making the Kingdom’s business environment one of the leading global destinations for companies and entrepreneurs.
She further underlined that Saudi Arabia allows 100 percent of foreign ownership in most business sectors and has established the Saudi Business Center, which has helped re-engineer procedures for starting and operating enterprises, reducing licensing requirements by 55 percent.
During the visit, Al-Qasabi participated in the inauguration of the operations center of SMSA Express in South Africa, which will contribute to providing logistical solutions for the business sectors in the two countries.
He also held discussions with several South African ministers, including Parks Tau of trade, industry, and competition; Stella Ndabeni-Abrahams of small business development; Patricia de Lille of tourism; and John Steenhuisen of agriculture.
Key topics included ways to strengthen trade relations, promising business opportunities in both countries, facilitating trade in goods and services, and South African companies’ participation in the Biban24 forum.
The meetings also addressed initiatives aimed at supporting and empowering small-and medium-sized enterprises and proposed collaboration in areas of common interest.
Egypt’s external debt drops to $152.9bn by end of June
- Long-term external debt decrease to $126.9 billion by the end of June
- External debt decreased to $80.2 billion from $84.8 billion in December
RIYADH: Egypt’s external debt decreased to $152.9 billion by the end of June, a significant reduction from $160.6 billion at the end of March and $168 billion at the close of December 2023, official data showed.
The country, which has a fiscal year running from July 1 to June 30, saw long-term external debt decrease to $126.9 billion by the end of June, down from $138.6 billion the previous year. Short-term debt also dropped to $26.02 billion, compared to $29.5 billion before, according to the Central Bank of Egypt.
The Egyptian government’s external debt decreased to $80.2 billion from $84.8 billion in December. The CBE’s own debt also saw a significant reduction, falling to $34.67 billion from $45.3 billion at the end of 2023. However, debt owed by Egyptian banks rose slightly to $20.67 billion by the end of June, up from $20.1 billion at the close of last year.
The overall decline in external debt highlights the Egyptian government’s ongoing efforts to manage its financial obligations amid a challenging global economic environment.
The country’s economic challenges, including inflation and fiscal deficits, have necessitated a careful balance between managing external obligations and sustaining growth.
The reduction in overall external debt is viewed as a positive signal to international markets and may bolster future creditworthiness, particularly as Egypt seeks international assistance and investment.
In a push to further boost the country’s economic growth, Prime Minister Mostafa Madbouly stated that the government is aiming to offer several airports and banks to the private sector soon.
In an official meeting on Oct. 14, Madbouly emphasized the government’s commitment to its privatization program, underlining that significant announcements will be made in the near future as part of the initiative, which is being implemented in cooperation with the International Finance Corp.
The meeting of the Coordinating Council for Monetary and Financial Policies, which included CBE Governor Hassan Abdalla, focused on strategies to stabilize the economy amid regional conflicts.
Abdalla highlighted the success of efforts to stabilize the exchange rate of the US dollar, supported by steady remittances from Egyptians abroad.
The council also reviewed initiatives aimed at encouraging further remittances, including the successful “Beit Al-Watan” program, which has contributed to a stable inflow of foreign currency into the banking system.
According to the report released by the Central Agency for Public Mobilization and Statistics in September, Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion due to falling prices for wheat and other commodities. Imports fell by 3.3 percent to $6 billion during the month.
The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent.
This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values.
In its fiscal year for 2023/24, Egypt achieved a primary budget surplus of 6.1 percent, bolstered by a landmark sale of coastal land to the UAE, said the country’s finance minister.
At a press conference in August, Ahmed Kouchouk disclosed that Egypt’s total expenditure amounted to 3.016 trillion Egyptian pounds ($61.3 billion), with a budget deficit of 3.6 percent.
In February, the UAE, through a consortium led by Abu Dhabi’s sovereign wealth fund ADQ, signed an agreement to invest $35 billion in Ras El-Hekma, a Mediterranean region 350 km. northwest of Cairo. This deal represents the largest foreign direct investment in Egypt’s history.
The minister highlighted that no new taxes were imposed last year, and tax revenues increased by 30 percent year on year for the financial year 2023/24.
This aligns with the International Monetary Fund’s objective for Egypt to boost tax revenue in its 2025/26 budget.
