Egypt cuts 2040 renewable energy target to 40%, keeps focus on natural gas
Updated 20 October 2024
Reuters
CAIRO: Egypt has revised its renewable energy target for 2040 down to 40 percent from a previous goal of 58 percent, Petroleum Minister Karim Badawi said on Sunday, underscoring that natural gas will remain a key part of the country’s energy mix for years.
Before hosting the COP27 climate summit in 2022, Egypt pledged to raise renewable energy production to 42 percent of its energy mix by 2035, later advancing that target to 2030. In June 2024, then-Electricity Minister Mohamed Shaker announced an ambitious plan to raise this to 58 percent by 2040, a target now abandoned.
“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve new discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said in the opening session of the Mediterranean Energy Conference 2024.
The continued reliance on fossil fuels comes as Egypt works to rebuild trust with foreign oil firms, whose local operations slowed after a hard currency shortage left the country with billions of dollars in arrears.
Since taking office in July, Badawi has met numerous international energy companies, including Italy’s Eni, which plans to start drilling new wells in Egypt’s largest gas field, Zohr, in early 2025 to boost production.
Zohr’s gas production peaked at 3.2 billion cubic feet per day in 2019, enabling the country to become a net exporter. But output declined to 1.9 bcf/d by early 2024, forcing Egypt to increase gas imports through a pipeline linking it with Israel as well as liquefied natural gas shipments to avoid a load shedding scheme that went on for months.
Egypt also imports high-sulfur fuel oil, with imports spiking to 255,000 barrels per day in September, the highest since at least 2016.
Saudi Arabia launches Ramlah Co. to boost tourism in Hail region
Updated 5 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia’s Ministry of Tourism is supporting private sector growth by launching Ramlah Co. for Tourist Trips and Resorts, a new initiative to attract visitors to the Hail region.
This undertaking is part of the broader Saudi Winter Season campaign, which offers unique experiences in its key destinations.
The Minister of Tourism Ahmed Al-Khateeb inaugurated the Ramlah Co. during a visit to Hail, signaling the Kingdom’s ongoing efforts to develop the tourism sector and foster private-sector participation, the Saudi Press Agency reported.
Al-Khateeb, also the chairman of the Saudi Tourism Authority, emphasized that the launch of the company aligns with Saudi Arabia’s Vision 2030 objectives to diversify the economy and promote tourism as a key growth sector.
The Saudi Winter Season, which began in October and runs through the first quarter of 2025, highlights seven key destinations, including Riyadh, Jeddah, and AlUla, as well as the Red Sea, the Eastern Province, Madinah, and Hail.
The campaign is designed to showcase the Kingdom’s cultural and natural attractions, with private companies like Ramlah Co. offering tailored experiences for visitors.
Ramlah Co. has met all licensing requirements set by the Ministry of Tourism and will offer a diverse range of activities in the region, from desert camping and sandboarding to off-road safaris and historical tours of landmarks such as Jubbah.
The company will also provide stargazing experiences and flexible tourism packages designed for families, groups, and solo travelers.
During his visit, Al-Khateeb announced several initiatives aimed at further developing the region’s tourism infrastructure. He revealed plans for 1,000 international training opportunities and 10,000 domestic training programs for Hail residents, according to the minister’s official X account.
He also highlighted efforts to enhance tourism initiatives and projects, underscored by the signing of two memoranda of understanding with the Hail Development Authority.
Speaking on future investments, Al-Khateeb noted that the Tourism Development Fund is currently evaluating support for several key projects in the Hail region.
“The fund is studying supporting a number of distinguished projects, the value of which exceeds SR1 billion and is expected to contribute to providing more than 850 hotel rooms in the area,” Al-Khateeb said.
These projects are anticipated to boost Hail’s hospitality capacity while fostering economic growth and job creation.
The minister also visited the Hail Tourism Development Authority, where he reviewed several qualitative initiatives designed to enhance the region’s tourism offerings.
The launch of Ramlah Co. reflects the government’s commitment to developing regional tourism hubs and providing a platform for private companies to play a pivotal role in the country’s tourism sector.
Hail, known for its UNESCO-listed Hail Rock Art and Fayd Historic City, is one of the Kingdom’s most culturally rich regions. The area also features natural attractions like Al-Adham Park, offering tourists a range of recreational activities.
Al-Khateeb continues his tour as part of the Winter Season campaign, with AlUla being his next stop.
Saudi Arabia permits flour mills to export surplus production
Updated 11 min 42 sec ago
MOHAMMED Al-KINANI
JEDDAH: Saudi Arabia has approved a plan allowing licensed flour mills to export surplus production to international markets, provided local supply remains secure.
The General Food Security Authority issued the approval, requiring mills to repay the full value of the wheat subsidies provided by the government for the quantities they intend to export, the Saudi Press Agency reported.
Ahmed bin Abdulaziz Al-Faris, governor of the GFSA, emphasized that this decision aligns with Saudi Arabia’s Vision 2030, which supports national industries and fosters competition based on high product quality.
Under Article 14 of the Kingdom’s Wheat Flour Production Law, issued in 2018, flour mills are prohibited from exporting wheat, flour, or derived products without prior approval from the relevant authority. Mills must repay the subsidy granted for these products intended for export. Additionally, exports must not disrupt the local supply of these products.
Saudi Arabia has developed a strategic plan for its agricultural sector, focusing on sustainability, food security, and welfare for farmers, as well as economic contributions and preventative measures.
Despite its desert climate and limited water resources, the Kingdom’s national policies address critical issues such as food and water security, sustainable agricultural development, and ecological balance.
These efforts reflect Saudi Arabia’s commitment to enhancing agricultural productivity while ensuring the responsible management of its natural resources.
In 2023, Saudi Arabia’s grain production reached 1.75 million tonnes, harvested from 323,000 hectares of a total of 331,000 hectares planted, according to the figures released by the General Authority for Statistics.
Wheat was the leading crop, accounting for 63.4 percent of the total area, with production reaching 1.314 million tonnes.
Formerly known as the Saudi Grains Organization, the GFSA plays an important role in driving economic development and meeting the food needs of Saudi citizens.
Established in 1972, the GFSA was created as part of the government’s efforts to ensure national development. Its objectives include establishing and operating flour mills, production facilities, and animal feed factories, as well as developing complementary food industries.
The authority is also responsible for marketing products, purchasing grains, and maintaining an adequate reserve stock for emergencies, in line with the government’s political-agricultural policy.
Saudi Arabia forms new committee to spur private sector role in petrochemicals
Updated 24 November 2024
Nadin Hassan
RIYADH: Saudi Arabia has launched its first-ever national committee for energy and petrochemicals under the Federation of Saudi Chambers to bolster private sector participation.
This comes as investments in the petrochemical sector are projected to reach $600 billion by 2030, with the council set to collaborate with ministries, authorities, and major companies to unlock opportunities for local and foreign investors.
This initiative marks a significant step in fostering closer ties between the private sector and government to shape policies and accelerate investment in energy and petrochemicals.
Jaber bin Ayed Al-Fahad was elected chairman, with Saad bin Ajlan Al-Ajlan as vice chairman.
Saudi Arabia’s non-oil exports surge 16.8% in Q3: GASTAT
Updated 24 November 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s non-oil exports reached SR79.48 billion ($21.17 billion) in the third quarter of 2024, a rise of 16.76 percent compared to the same period in 2023, according to official data.
As reported by the General Authority for Statistics, the Kingdom exported non-oil goods worth SR19.58 billion to the UAE, followed by India and China at SR6.78 billion and SR6.48 billion.
Chemical products led Saudi Arabia’s non-energy exports in the third quarter, accounting for 25.5 percent of total shipments, marking a 5.3 percent annual rise. Plastic and rubber products followed, comprising 24.9 percent of the total, with an 8.9 percent increase compared to the third quarter of 2023.
Strengthening the non-oil private sector is a key objective under Saudi Arabia’s Vision 2030 as the Kingdom works to diversify its economy and reduce reliance on crude oil revenues.
“The ratio of non-oil exports (including re-exports) to imports increased to 36.6 percent in the third quarter of 2024 from 34.9 percent in the third quarter of 2023. This was due to a 16.8 percent increase in non-oil exports and an 11.4 percent increase in imports over that period,” said GASAT.
In October, Moody’s projected the Kingdom’s non-hydrocarbon real gross domestic product would grow between 5 percent and 5.5 percent from 2025 to 2027, driven by increased government spending.
The International Monetary Fund projected the Saudi economy would expand by 4.6 percent in 2025, supported by diversification efforts to strengthen the non-oil private sector.
However, GASTAT highlighted that overall merchandise exports decreased by 7.3 percent year on year in the third quarter, primarily due to a 14.9 percent drop in oil exports.
Consequently, oil exports as a share of total exports fell to 71.3 percent in the third quarter from 77.3 percent recorded during the same period last year.
To stabilize the market, Saudi Arabia implemented a production cut of 500,000 barrels per day in April 2023, a reduction extended until December.
Key trade partners
China remained Saudi Arabia’s top export destination in the third quarter, receiving SR41.94 billion worth of goods. Japan and South Korea followed at SR25.62 billion and SR25.50 billion, respectively, while India received SR24.35 billion.
GASTAT data revealed that imports to the Kingdom increased by 11.4 percent year on year in the third quarter, reaching SR217.25 billion, while the nation’s surplus of the merchandise trade balance decreased by 43.4 percent.
In the third quarter, China accounted for the largest share of imports at SR53.78 billion, followed by the US and India at SR17.58 billion and SR11 billion, respectively.
King Abdulaziz Sea Port in Dammam was the primary entry point for goods in the third quarter, with imports valued at SR64.88 billion, representing 29.9 percent of the total inbound shipments.
Among the other major terminals of entry for imports was Jeddah Islamic Sea Port, which handled 20.1 percent of the incoming shipments, followed by King Khalid International Airport in Riyadh and King Abdulaziz International Airport, which handled 12.6 percent and 6.4 percent of the imports to the Kingdom.
September figures
In a separate report, GASTAT revealed that Saudi Arabia’s non-oil exports increased by 22.8 percent year on year in September, reaching SR25.95 billion.
The authority revealed that the Kingdom sent non-energy goods valued at SR6.54 billion to the UAE in September, while India and China received inbound shipments worth SR2.35 billion and SR1.73 billion, respectively.
Plastic and rubber products comprised 25.7 percent of non-oil exports in September, a 19.5 percent annual rise, while chemical products accounted for 25.3 percent, marking a 4.4 percent increase.
The ratio of non-oil exports to imports rose to 37.1 percent in September, compared to 34.8 percent during the same month in 2023.
Despite the growth in non-oil exports, overall merchandise exports dropped 14.9 percent in September due to a 24.5 percent decline in oil exports. Consequently, the share of oil exports in total exports fell from 79.7 percent in September 2023 to 70.7 percent in September 2024.
China remained the leading trade partner, receiving SR13.91 billion in exports, followed by Japan at SR7.98 billion and the UAE at SR7.49 billion.
Other major destinations for Saudi Arabia’s exports include India, South Korea, the US, and Egypt, as well as Singapore, Bahrain and Poland.
In September, Saudi Arabia’s exports to the Gulf Cooperation Council countries stood at SR12.08 billion, while the value of outbound shipments to Islamic non-Arab nations was SR6.71 billion.
According to GASTAT, the Kingdom’s imports increased by 15 percent year on year in September, reaching SR69.88 billion, while the surplus of the merchandise trade balance decreased by 56.9 percent during the same period.
China held the first position in the Kingdom’s imports, constituting 25.8 percent of total imports in September, valued at SR17.99 billion.
In September, Saudi Arabia received incoming shipments valued at SR5.39 billion and SR3.45 billion from the US and Germany, respectively.
The report revealed that the Kingdom handled inbound shipments valued at SR19.65 billion or 28.1 percent of the overall imports at the King Abdulaziz Sea Port in Dammam in September.
Jeddah Islamic Sea Port handled 17.9 percent of the overall inbound shipments, while King Khalid International Airport managed 13.1 percent of the total incoming goods.
Saudi Arabia’s non-oil sector is a key focus of its Vision 2030 plan to reduce reliance on oil and diversify the economy.
Initiatives like giga-projects, renewable energy investments, and expanding industries such as manufacturing, logistics, and tourism aim to drive growth and boost job creation.
These efforts are strengthening the Kingdom’s global trade position and attracting foreign investment, with the non-oil sector playing an increasingly vital role in its economic transformation.
Startup Wrap – International venture capital interest in MENA rises despite global challenges
Updated 24 November 2024
Nour El-Shaeri
RIYADH: International venture capital investors have increased their presence in the Middle East and North Africa region despite a challenging global economic climate, according to a new report by MAGNiTT.
The study highlights significant growth in global participation, with their share of MENA-based startup investments rising from 28 percent in 2020 to 51 percent in 2024.
The global economic climate in recent years has been marked by persistent challenges, including rising inflation, geopolitical tensions, supply chain disruptions, and tightening monetary policies by central banks.
These factors have created a volatile environment for investors, prompting cautious capital deployment and heightened scrutiny of high-risk markets.
In particular, the venture capital landscape has faced headwinds due to declining valuations, slower funding cycles, and a shift toward profitability over rapid growth.
Despite these challenges, regions like MENA, Southeast Asia, and Africa have demonstrated resilience, attracting both local and international capital due to their untapped potential and strategic efforts to foster innovation.
This 23-percentage-point increase underscores MENA’s growing appeal as a destination for venture capital.
The ecosystem continues to be shaped by strong regional investor engagement, driven largely by sovereign wealth fund mandates such as Saudi Arabia’s Saudi Venture Capital Co.
Local investors accounted for 49 percent of the 1,361 unique investors in the region’s startups, with 62 percent of all disclosed capital invested in MENA coming from within the region, MAGNiTT revealed.
However, international interest has surged, with the first nine months of this year marking a 60 percent increase in global investors compared to the previous year.
Philip Bahoshy, CEO of MAGNiTT, attributed the region’s growth to the role of regional Limited Partner programs and high-profile events that spotlight opportunities in emerging markets.
“If you recently attended events like FII in Riyadh, GITEX in Dubai, or Web Summit in Qatar, you would have seen firsthand the growing presence of international investors interested in Emerging Markets. Many of these investors are exploring opportunities but are yet to make substantial commitments,” Bahoshy said.
The UAE has been a standout in the region’s venture growth, with international investor participation climbing from 25 percent in 2020 to 62 percent in 2024, positioning the market as a global hub akin to Singapore.
Saudi Arabia has also seen notable progress, with international investor participation rising from 18 percent in 2020 to 25 percent in 2024, reflecting the Kingdom’s increasing focus on venture capital.
Events such as LEAP and the Future Investment Initiative have played a key role in attracting global attention to Saudi Arabia’s burgeoning venture ecosystem.
In Africa, international development finance institutions have helped foster a growing local investment base.
African investors’ share of total capital deployment increased from 15 percent in 2021 to 35 percent in 2024. This upward trend reflects efforts to strengthen regional ecosystems while still leveraging international expertise.
Internationally, US-based firms such as 500 Global and Y Combinator emerged as the most active of these investors across MENA, Africa, and Southeast Asia between 2020 and 2024.
The influence of American venture capital remains dominant, with US investors topping deal counts in all three regions. However, Southeast Asia attracted the largest capital deployment, with $11.65 billion invested by top international players, compared to $1.177 billion in Africa and $947 million in MENA.
Saudi Arabia-based EdfaPay secures $5m to scale tap-to-pay solution
Fintech startup EdfaPay has closed a $5 million pre-Series A funding round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.
Founded in 2022 by Ghormallah Al-Ghamdi and Nedal Sabbah, EdfaPay offers a tap-to-pay solution that allows small and medium-sized enterprises to use smartphones as point-of-sale devices.
The funding will be used to strengthen the company’s market position in Saudi Arabia and expand its footprint across the MENA region and Pakistan.
The startup previously raised $1.6 million in a pre-seed round in early 2022 and has since entered several new markets, including Tunisia and Morocco.
Social networking app Bubbl raises $350k pre-seed
Saudi social networking platform Bubbl has raised $350,000 in a pre-seed funding round led by angel investor Abdullah Al-Dosari.
Launched in 2024 by Aya Al-Hammoud, the app has already attracted 60,000 daily active users.
The funds will support Bubbl’s plans to scale its user base, with a goal of reaching 1 million daily active users in the near future.
The Public Investment Fund’s Jada Funds of Funds has announced a commitment to invest in SEEDRA Ventures Fund II. (Supplied)
PIF’s Jada commits investment in SEEDRA Ventures Fund II
The Public Investment Fund’s Jada Funds of Funds has announced a commitment to invest in SEEDRA Ventures Fund II, a newly launched venture capital fund managed by SEEDRA Ventures.
The fund aims to invest in early-stage startups with a sector agnostic approach, which coincides with Jada’s strategy.
Bandr Al-Homaly, managing director and CEO of Jada, said: “Our commitment to SEEDRA Ventures Fund II underscores our focus on enabling early-stage businesses that contribute to the Kingdom’s economic transformation in alignment with Vision 2030.”
EFG Hermes launches $300m Saudi education fund
EFG Hermes’s private equity arm has unveiled a $300-million Saudi Education Fund to develop a world-class K-12 operator in Saudi Arabia.
The fund seeks to capitalize on the growing demand for private education, fueled by an expanding student population.
SEF will also acquire a portfolio of international schools in Saudi Arabia, the UAE, and Bahrain, currently managed by GFH under the Britus Education brand.
Amenli secures $2.3m to expand insurtech offerings
Egypt-based insurance tech company Amenli has closed a $2.3 million funding round led by the European Bank for Reconstruction and Development’s Venture Capital arm, with additional participation from Y Combinator.
Founded in 2020 by Adham Nauman, Omar Ezz El-Din, and Shady El-Tohfa, Amenli provides accessible insurance solutions tailored for individuals, families, and SMEs.
The funding will support technology upgrades, product innovation, and market expansion.
Qara raises $2.6m to advance supply chain traceability
Supply chain startup Qara, based in Egypt, has raised $2.6 million from undisclosed investors to fuel its expansion.
Founded in 2021 by Hassan Abouzeed and Khaled Hassan, Qara provides a digital platform enabling product authentication and full traceability for producers.
The company, already active in Egypt, Saudi Arabia, and Kenya, plans to use the funding to expand further into Saudi Arabia under the National Technology Development Programme’s Relocate Initiative.
Logistics startup Locad secures $9m for global growth
Singapore-based logistics platform Locad has raised $9 million in a pre-series B funding round co-led by Global Ventures and Reefknot Investments.
Other participants included Sumitomo Equity Ventures and existing investors such as Antler Elevate and Febe Ventures.
Founded in 2020 by Constantin Robertz, Jannis Dargel, and Shrey Jain, Locad provides a cloud-based logistics engine that helps e-commerce businesses optimize their supply chains.
The funds will support Locad’s international expansion, with a focus on launching in the UAE and Saudi Arabia by the end of 2024.
Egypt-based furniture and home decor e-commerce platform ariika has raised $3 million in a series A extension round. (Supplied)
Furniture e-commerce platform ariika secures $3m to expand
Egypt-based furniture and home decor e-commerce platform ariika has raised $3 million in a series A extension round led by Beltone Venture Capital and Citadel International Holdings.
Founded in 2016 by Khaled Attallah and Shahir Arslan, ariika collaborates with artisans worldwide to design and curate modern home décor products.
Having recently launched in Iraq, ariika plans to enter the Saudi market by January 2025. This follows a previous series A round in which Beltone acquired a 20 percent equity stake.
