CAIRO: Egypt plans to award deals next year to build 21 water desalination plants in the first $3 billion phase of a program that will draw on cheap renewable energy, the CEO of the country’s sovereign fund said on Thursday.
Egypt, which recently hosted the COP27 UN climate talks and is trying to boost lagging investment in renewables, also aims to start production at a series of proposed green hydrogen projects in 2025-2026, Ayman Soliman told the Reuters NEXT conference.
Egypt depends almost entirely on the Nile for fresh water, and faces rising water scarcity for its population of 104 million. The desalination program aims to generate 3.3 million cubic meters of water daily in the first phase, and eventually reach 8.8 million cubic meters daily at a cost of $8 billion.
There had been expressions of interest from more than 200 developers from at least 35 countries for the first phase, Soliman said.
The Sovereign Fund was set up in 2018 with a goal of attracting private investment in state-owned assets through partnerships and co-investments.
It is currently focused on getting private consortia to develop brownfield infrastructure, and private equity to develop state-owned enterprises ahead of public listings.
Privatization plans in Egypt have been repeatedly pushed back, with the government blaming delays on economic shocks including the COVID-19 pandemic and the war in Ukraine as well as on legal obstacles. The plans have also met resistance from advocates of continued state control, analysts say.
’ECONOMIC CONSTITUTION’
Soliman said a state ownership policy that is meant to map out which parts of the economy are open to private investment would serve as the government’s “economic constitution” going forward, and as a platform to crowd in private investment despite the rising cost of capital.
“We as a fund are very sharply focused on trying to find those champions to scale up, be it in agriculture be it in tourism, be it in infrastructure, or be it in banking financial services,” he said.
At the climate talks in Sharm el-Sheikh, the government converted into framework agreements nine of 15 memoranda of understanding (MoU) for green hydrogen projects concentrated in the Suez Canal Economic Zone (SCZONE) that would produce millions of tons of hydrogen and ammonia.
At least another three or four MoUs were close to being converted, and more MoUs were planned, with cheap renewable costs and the scale of the potential fuel export market toward Europe making Egypt competitive, Soliman said.
Framework agreements give developers access to specific locations to allow them to plan production.
“This is not a competition. We are creating a pipeline or a blueprint for that process, aiming to start production in 2025-26 and all the developers are working backwards from there,” Soliman said.
So-called green or clean hydrogen is produced using electrolyzers powered by renewable energy to split water from oxygen. It is seen as a potential future power source that could reduce emissions, though to date it is largely limited to experimental projects. Analysts say challenges facing its growth include high costs and energy inputs, as well as safety concerns.
Egypt’s projects would have desalinated water built in, and quantities required would be negligible compared to those produced under the national desalination scheme, according to the Sovereign Fund.
Egypt to build 21 desalination plants in phase 1 of scheme -sovereign fund
https://arab.news/b9rq3
Egypt to build 21 desalination plants in phase 1 of scheme -sovereign fund
- Egypt also aims to start production at a series of proposed green hydrogen projects in 2025-2026
- The Sovereign Fund was set up in 2018 with a goal of attracting private investment in state-owned assets through partnerships and co-investments
Saudi Arabia explores helicopter manufacturing partnership with Airbus
RIYADH: Saudi Arabia is exploring joint manufacturing opportunities with Airbus Helicopters as part of its broader effort to localize advanced aviation technologies and strengthen the domestic industry.
The discussions were held during the “Industrial Day” event at Airbus Helicopters’ headquarters in Marignane, France, in the presence of the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef, company executives, Saudi aviation suppliers, and Airbus’s global network of partners.
The visit marks a key milestone in the Kingdom’s push to become a global hub for the aerospace industry under Vision 2030.
In a post on X, Alkhorayef said the event “emphasized the importance of localizing technology, strengthening international partnerships, and leveraging the Kingdom’s assets and mineral resources to become a pivotal hub for the aviation industry.”
During the gathering, the Saudi delegation met with Airbus Helicopters CEO Bruno Even, reviewed the company’s advanced aircraft production technologies, and explored potential areas for investment and joint manufacturing in helicopters and related sectors.
Alkhorayef emphasized the strategic importance of the aviation industry to Saudi Arabia’s industrial development plans, calling it one of the most promising advanced sectors for localizing capabilities and developing high-value technologies.
He added that Saudi Arabia is focused on building a globally competitive manufacturing base, highlighting the country’s commitment to localizing the aviation sector through industrial partnerships and foreign investment.
The minister said the Kingdom offers robust fundamentals for industrial growth, including mineral wealth, energy resources, skilled labor, and a business-friendly investment environment.
He stated that Saudi Arabia’s aerospace strategy includes the localization of helicopter production, unmanned aerial vehicles, and the development of maintenance, repair, and overhaul services.
The market for these capabilities is projected to exceed $10 billion.
By 2035, the aerospace sector is expected to contribute $88 billion to the Kingdom’s gross domestic product and support more than 377,000 jobs, according to a statement from the ministry.
During the meeting, Airbus Helicopters executives presented the company’s manufacturing capabilities and expressed interest in deepening collaboration in areas such as assembly, aviation maintenance, and innovation in rotorcraft technology.
The discussions also addressed opportunities for technology transfer and industrial training to support Saudi Arabia’s ambition of becoming a regional aerospace center.
The Saudi delegation included senior officials such as the National Industrial Development Center CEO Saleh Al-Sulomi and was part of a broader official visit to France.
The visit aimed to strengthen bilateral ties and explore strategic cooperation in mining, aviation, and industrial development. Meetings were also held with French government representatives and business leaders to discuss expanding investment flows and industrial partnerships.
Alkhorayef stressed that the Kingdom’s long-term goal is to diversify its economy by accelerating the growth of high-tech industries and integrating into global manufacturing value chains.
The nation’s unique competitive advantages — including its strategic location, mineral reserves, energy capacity, and logistics infrastructure — position it as a compelling destination for industrial investment.
Oman sovereign wealth authority in preliminary pact with Algeria for investment fund
CAIRO: The Oman Investment Authority signed a preliminary agreement with Algeria’s Finance Ministry to establish an investment fund worth 115 million Omani riyals ($298.79 million).
The fund, announced by the sultanate’s sovereign wealth fund, will focus on mining, food security and pharmaceutical industries, according to a statement by the OIA.
The agreement was signed on the sidelines of an official visit by Oman’s Sultan Haitham bin Tariq Al-Said to the North African country.
Several agreements were signed during the visit, including a term sheet between Algeria’s state oil and gas firm Sonatrach and Oman’s oil and gas drilling services firm Abraj Energy Services to evaluate setting up a joint venture for oil services.
The term sheet outlines the technical, legal and economic and commercial conditions to evaluate establishing an oil services joint venture company in Algeria between the two companies, Sonatrach said in a statement on Monday.
The joint venture will focus on drilling, well services and management of integrated projects in the Algerian market, according to the statement.
Oil Updates — crude climbs $1 as price drop triggers buying; oversupply worries weigh
SINGAPORE: Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted.
Brent crude futures rose $1.15 to $61.38 a barrel by 9:23 a.m. Saudi time, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel.
Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month.
“Today’s slight rebound in oil prices appears more technical than fundamental,” said Yeap Jun Rong, a market strategist at IG. “Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement.”
Driven by expectations that production will exceed consumption, oil has lost over 10 percent in six straight sessions and dipped over 20 percent since April when US President Donald Trump’s tariff shocks prompted increased bets on a slowdown in the global economy.
The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday.
“China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Also lending some support was data showing a pick-up in services sector’s growth in the US, the world’s major oil consumer, as orders increased.
The Institute for Supply Management said on Monday its nonmanufacturing purchasing managers index increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.
The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook.
Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing “a rocky road ahead for fundamentals” amid escalating trade tensions and OPEC+’s pivot in its production strategy.
Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.
Saudi Arabia leads MENA startup funding in April with $158.5m
RIYADH: Saudi Arabia led startup funding across the Middle East and North Africa in April 2025, attracting $158.5 million across eight deals — accounting for more than two-thirds of the region’s total investment for the month.
The Kingdom’s dominant performance was largely driven by iMENA Group’s $135 million pre-initial public offering round, placing it ahead of the UAE, which followed with $62 million raised across nine startups.
In total, MENA startups secured $228.4 million in April through 26 deals, marking a 105 percent increase from March and nearly triple the amount raised in April 2024, according to Wamda’s monthly report.
Notably, the month’s funding activity featured no debt financing.
“Interestingly, the absence of debt-financed deals in April highlights growing investor confidence in equity-based funding — a trend reflecting a healthier capital environment,” the report stated.
Morocco ranked third regionally, raising $4 million across two startups, while Egypt lagged behind with just $1.5 million secured by four companies.
Early-stage ventures led in deal volume, bringing in $49 million through 20 transactions. Late-stage activity was concentrated entirely in iMENA’s pre-IPO round.
By sector, fintech remained the top draw for investors, attracting $44 million across seven transactions. Traveltech also gained momentum, driven by HRA Experience’s deal, while e-commerce startups raised $2.5 million across three deals.
Software-as-a-service ventures made a comeback after a quiet first quarter, securing $1.8 million from three transactions.
In terms of business models, business-to-business startups dominated, raising $180 million across 12 deals.
Business-to-consumer ventures followed with $43 million from seven transactions, while six companies operating both B2B and B2C models accounted for the rest of the disclosed funding.
Gender disparities in startup funding persisted in April. Female-led startups secured less than $500,000 in total, while male-founded ventures captured 97 percent of all disclosed capital. Startups co-founded by men and women raised an additional $6.5 million.
Closing Bell: Saudi main index closes in green at 11,422
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 11.45 points, or 0.10 percent, to close at 11,422.95.
The total trading turnover of the benchmark index was SR5.21 billion ($1.39 billion), as 153 stocks advanced, while 84 retreated.
The Kingdom’s parallel market, Nomu, also rose, gaining 129.67 points, or 0.46 percent, to close at 28,142.99. This comes as 41 of the listed stocks advanced, while 33 retreated.
The MSCI Tadawul Index increased by 4.27 points, or 0.29 percent, to close at 1,455.44.
The best-performing stock was Mouwasat Medical Services Co., with its share price surging 9.97 percent to SR78.30.
Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise 9.92 percent to SR14.18, and Saudi Reinsurance Co., which posted a 9.71 percent gain to reach SR53.10.
Umm Al Qura for Development and Construction Co. recorded the day’s steepest decline, with its share price slipping 3.47 percent to SR25.05.
Sahara International Petrochemical Co. and Saudi Steel Pipe Co. also saw declines, with their shares dropping by 2.82 percent and 2.58 percent to SR17.90 and SR52.90, respectively.
On the announcements front, Ades Holding Co. reported interim financial results for the first three months of the year, posting a net profit of SR196.6 million — a 6.3 percent decline compared to the previous quarter. It said that the drop in net profit reflects an increased ratio of depreciation and tax costs to revenue in this period.
The company’s total comprehensive income saw a 45.7 percent quarter-on-quarter decrease in the first quarter of 2025 to reach SR170.8 million.
Ades Holding Co.’s share price traded 0.94 percent lower on the main market during today’s session to reach SR14.78.
In another announcement, Makkah Construction and Development Co. reported a 32.7 percent year-on-year increase in net profit for the same period, reaching SR150 million.
The company credited the growth to higher revenues from the hotel and towers this quarter, driven by the inclusion of the last nine days of Ramadan, increased mall revenues, and gains from financial assets classified at fair value through profit or loss.
Similarly, the company’s total comprehensive income rose to SR758 during the quarter, up from SR576 last year.
The MCDC’s share price traded 1.5 percent higher to reach SR108.20.
