Egypt’s government on Wednesday approved a regulation that would grant many tax breaks and payments to state-owned enterprises, fulfilling a key condition set through the IMF in a $3 billion deal signed a year ago.
The cabinet approved the law in June but has not yet drafted the executive regulations needed to put it into effect.
The International Monetary Fund, in a $3 billion monetary deal signed in December 2022, suggested Egypt tick the box between the private and public sectors.
The deal was put on hold after Egypt failed to meet other commitments, including allowing its currency to move in reaction to market forces, temporarily promoting state assets, and cutting the government’s role in the economy.
The new regulations “apply to all investments or economic activities conducted through state agencies. “These include “units of the state administrative apparatus, local management units, national public, service and economic bodies and agencies that have special budgets,” the cabinet said. in one sentence.
The regulations do not apply “to military jobs and needs similar to the defense of the country or the coverage of national security,” the cabinet said.
Ratings firm Fitch reported on Tuesday that the Sultanate of Oman’s budget for the current fiscal year indicates that the government will continue to repay public debt. This is helping the state’s resilience in case of potential shocks.
Fitch noted, however, that the trajectory of debt relief in 2024 will be moderated by higher social spending.
“We now expect the surplus to fall to 1. 8% of GDP in 2024, from an estimated 3. 3% in 2023, based on fiscal data and our latest oil price assumptions. In our December sovereign data comparator, we had forecast that the surplus would remain broadly strong at 2. 1% of GDP in 2024, up from 2. 2% in 2023,” Fitch said.
“The smaller surplus in 2024 will partly reflect a projected 1% drop in oil output, in line with the recent reduction of the country’s OPEC+ production quota, as well as a modest weakening in international oil prices, which will weigh on revenues.
The budget projects non-oil revenue growth to be driven by stronger economic activity, with no significant new revenue-raising measures being announced,” according to Fitch.
The overall effect on Oman’s credit metrics should be broadly in line with the assumptions we made when we upgraded the sovereign’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB+’ from ‘BB’, with a Stable Outlook, in September 2023.
The government plans to expand the social safety net, which will add about 1% of GDP to spending, as reflected in our September assessments. The costs of fuel subsidies will remain substantial, at around 0. 7% of GDP in 2024, we expect the government to remove those subsidies if global energy costs fall.
The government also plans to keep public investment broadly robust in 2024.
“Overall, we expect spending to remain cautious and existing primary spending to expand in line with nominal GDP.
The budget offers no indication of a significant reversal of recent fiscal consolidation measures, and we expect more modest progress on power value reform. At the same time, public finances will benefit from a lower debt service rate in 2024 due to liability control operations that the government has been wearing down since 2022. “
The government will use part of the surplus to continue debt repayment. Oman’s use of the revenue windfall from high oil prices to reduce debt and spread maturities was a driver of our decision to upgrade its ratings in September.
“However, we expect the speed of debt relief to slow in 2024, with public debt/GDP falling to around 33% in 2024 from 36% in 2023. This is due not only to a lower surplus , but also to the authorities’ willingness to reduce its debt. It plans to channel part of the surplus to the Oman Future Fund towards economic development.
The report concluded, “Economic diversification efforts will face significant hurdles and it will take time for us to assess their record. In the meantime, Oman’s public finances will remain vulnerable to global oil price shocks – albeit less than they were before the Covid-19 pandemic.
External debt maturities remain high, at $6 billion a year for the government and state-owned enterprises combined, less burdensome than in recent years.
Global air freight rates have risen for the first time in seven weeks as attacks on Red Sea shipping trigger corporations to get more beloved air shipping space.
The Baltic Air Freight Index, which shows weekly transaction rates for general freight on various routes, rose 6. 4% in the week to Monday, price assessment firm TAC Index said, reversing declines from a seasonal peak in mid-December.
Attacks by Yemen’s Iran-aligned Houthi organization on ships in the Red Sea, introduced in solidarity with Palestinians in Gaza, have forced shippers to take longer routes that can increase delivery times by weeks, it reported. Reuters.
“The increase is in line with expectations that rates could rise following the disruption of shipping in the Red Sea, although resources also note that rates are rising in the run-up to the Chinese New Year,” TAC Index said.
Many factories in China are closing their doors for the eight days that begin this year on February 10, and corporations are scrambling to get their stock to consumers before then.
Air freight rates from Shanghai rose 8. 8% week-on-week on Monday, driven strongly toward Europe. Hong Kong’s rates increased by 5. 9% and Southeast Asia’s increased by 10%.
The Red Sea, which flows into the Suez Canal, lies on the main industrial route from east to west, connecting the production centers of Asia with Europe and then with the east coast of America.
In recent weeks, shipping companies have secured more air freight area and some consumers have begun shipping their goods fully or partially by air in the face of delays.
However air freight prices had remained relatively stable as the shipping crisis coincided with a post-Christmas lull in demand.
As Tunisians face economic hardship and their government is mired in debt, medical tourism has flourished and the government must further expand this successful sector.
At a fertility clinic in Tunisia, Bintou Yunoussa from Niger hopes doctors can finally help her conceive — one of more than two million foreigners who travel to Tunisia each year for medical procedures.
Yunoussa told a relative that he visited her at her personal clinic in the Tunisian capital after three years of failed treatment.
“My sister-in-law had twins after an insemination in Tunisia,” the 25-year-old told AFP. “That’s why I came here. “
He accompanied her through her sister Khadija, 32, who had her eggs frozen five months ago at the same assisted replication clinic.
Nadia Fenina, an official at the Ministry of Health, said Tunisia’s highly specialized personal and professional clinics make it a leading destination for medical tourism.
“Tunisia is the first country in Africa in terms of demand and physical care,” Fenina told AFP.
Medical tourism has recovered from the end of the coronavirus era, with the sector generating about 3. 5 billion dinars ($1. 1 billion) in annual profits, roughly part of Tunisia’s overall tourism earnings last year.
“Medical tourism is similar to the general tourism sector, because a foreign patient is also a tourist who does not come alone,” Fenina explained.
“The promotion of medical tourism influences the progression of the tourism sector” as a whole, he added.
Tourism, which accounts for nine per cent of Tunisia’s gross domestic product, is aimed at an indebted country whose economy has slowed; the World Bank estimates an expansion for 2023 at a modest 1. 2 percent.
Last year, the small Mediterranean country of 12 million people attracted about nine million tourists, according to official figures.
Among them were more than 500,000 foreign patients hospitalized in Tunisia and about two million more who got care on the same day, according to authorities.
The Tunisian clinic where Yunoussa treated gained 450 patients last year, many of them from sub-Saharan African countries where some remedies would possibly be unavailable or difficult to access, Dr. Fethi Zhiwa said.
Others came from North Africa and Western countries such as Britain, Switzerland and Canada, the doctor said, citing Tunisia’s affordable rates and “world-renowned fertility specialists” as the main draws.
Many European medical tourists come for cosmetic surgery, which accounts for 15 percent of all treatments offered to foreigners in Tunisia, Fenina said.
Mohamed, a 59-year-old Libyan who gave his first name only, visits Tunisia twice a year to see his cardiologist for regular check-ups following an operation.
“This saved my life, I will never replace it,” he said.
Traveling with his wife, the couple planned to use the latter to “spend a few relaxing days in Tabarka,” a town on Tunisia’s northwest coast, Mohamed said.
Tourism has “great potential” in Tunisia and can grow “if we overcome certain obstacles and limitations,” Fenina said.
Direct flights to more African destinations and visa procedures can help, he said, “which is why we are working to implement a medical visa. “
The health ministry is also working on better coordination between medical tourism agencies, healthcare providers and other stakeholders, and collaborating with the private sector to set up facilities geared towards an elderly European clientele.
Gold demand will receive a “pronounced” boost due to geopolitical uncertainty this year, an industry report predicted on Wednesday, after investments in valuable metals and safe-haven assets hit record costs in 2023.
The World Gold Council said the commodity would continue to gain advantages in 2024 thanks to large purchases by central banks, which would help offset slowing customer demand due to emerging costs and slowing economic growth.
The price of gold hit an all-time high of $2,135. 39 per ounce at the end of 2023, causing demand to plummet.
Gold demand retreated 12 percent in the final quarter — and by five percent over the year to 4,448 tonnes, WGC said.
The record high reached in December is largely due to the war between Israel and Hamas, according to analysts.
It has also benefited from investors betting on a U. S. interest rate cut through the Federal Reserve this year, which has hurt the dollar.
A weaker green back makes dollar-denominated gold less expensive for holders of other currencies.
“Unwavering demand from central banks has supported gold,” said Louise Street, senior market analyst at WGC.
“In addition to financial policy, geopolitical uncertainty is a key driving force in gold demand, and in 2024 we expect it to have a pronounced effect on the market.
“Ongoing conflicts, trade tensions and over 60 elections taking place around the world, are likely to encourage investors to turn to gold for its proven track-record as a safe haven asset.”
However, digging up gold can be safe.
More than 70 people were killed earlier this month when a tunnel collapsed at a Malian gold mine, local sources told AFP.
Two years ago, at least 59 other people died in southwestern Burkina Faso after a stockpile of dynamite exploded in an artisanal gold mine.
WGC said mining production rose to 1 last year.
Metal recycling increased by as much as 9%, which is lower than expected given the price cap.
Despite record prices, “the global jewelry market has proven remarkably resilient. . . while demand has increased by three years per year,” WGC said.
“China played an important role, recording a 17-percent increase in demand for gold, as it recovered from Covid-19 lockdowns.”
This offset a 9% drop in Indian demand for gold jewellery, it adds.
Saudi EXIM Bank on Tuesday signed an agreement with the International Islamic Trade Finance Corporation (ITFC) to put into effect a $25 million financing facility for Habib Bank Limited (HBL) in Pakistan to expand export opportunities for the Kingdom’s small and medium-sized enterprises. (SME) exports non-oil products to the Pakistani market.
The agreement comes within the framework of the “Enabling Export Activities of SMEs” program, which aims to increase export opportunities for Saudi SMEs and attract new importers of Saudi goods in Pakistan.
The ITFC and the Saudi EXIM Bank are working to enhance the competitiveness of Saudi non-oil exports to expand in international markets by providing credit facilities to financial institutions in the target markets.
ITFC is also cooperating with the General Authority for Small and Medium Enterprises (Monsha’at) under the program to organize business meetings for Saudi corporations with potential partners in various countries and sectors such as pharmaceuticals, food industries and others.
The agreement was signed in the presence of the President of the Islamic Development Bank (IDB), Dr. Mohammed bin Sulaiman Al-Jasser, at an assembly of program partners at the ITFC headquarters in Jeddah to expand the 2024 paint plan, with the participation of Eng. Saad bin Abdulaziz Al-khalb, CEO of Saudi EXIM Bank, eng. Hani Salem Sonbol, Executive Director of ITFC and Governor of the General Authority for Small and Medium Enterprises, Monsha’at, Sami bin Ibrahim Al-Husseini.
This cooperation is a step towards selling foreign industry and expanding the contribution of SMEs to GDP, in line with the objectives of the Saudi Vision 2030, which is one of the objectives of the “Enabling SME Export Activities” program.
On April 19, 2022, a tripartite Memorandum of Understanding (MoU) was signed between ITFC, Saudi EXIM Bank, and Monsha’at to launch the Export Facilitation Program for SMEs in Saudi Arabia.
The programme aims to stimulate Saudi non-oil exports through financing, training, consultancy and capacity building for SMEs. In addition, it focuses on the willingness of SMEs to obtain financing from monetary establishments with the option for local personal banks to participate in the programme.
The program focuses on four key spaces to help SMEs grow and expand their businesses, adding capacity building, export markets, advisory services, and export financing (credit facilities).
Tuesday’s agreement represents an important milestone in implementing the program’s objectives to promote exports of Saudi products and enable them to reach global markets by providing the necessary support in accordance with the Kingdom’s Vision 2030, as SMEs in different sectors will be able to export their products to international markets.
The chairman of the Suez Canal Authority (SCA), Ossama Rabie, discussed the current situation in the Red Sea region and Bab el-Mandeb and its effect on the sustainability of global supply chains.
Rabie met with Secretary General of the International Chamber of Shipping (ICS) Guy Platten and Head of Marine and Aviation at Lloyd’s Market Association (LMA) Neil Roberts via video conference.
Rabie stressed the Authority’s keenness to promote cooperation with all the international maritime organizations and institutions.
He said the SCA has discussed the effect of the existing crisis with its clients and presented ideas on how to deal with related demanding situations to minimize its effect on global trade.
The official explained that the current crisis requires the consolidation of all efforts, the exchange of perspectives on its impact and the identification of its tangible effects on global chains and on all sectors related to maritime transport, including the marine insurance sector. emerging prices for ships transiting the Red Sea and the Bab el-Mandeb Strait.
For his part, Platten expressed his appreciation of the SCA’s efforts to achieve effective communication with all the key players in the maritime community.
It highlighted the positive effect of the Communication on the understanding of the situations in the maritime transport market and the consequent variables it witnessed.
Also, the LMA chief clarified that the ongoing tensions in the Red Sea region have led to numerous concerns among ship owners and shipping lines regarding the safety of the vessels and crews, eventually leading to increased maritime insurance costs.
Roberts that in order for things to return to normal, it is necessary for the situation to be reduced and the confidence of the foreign maritime community to be restored.
The Saudi Data and Artificial Intelligence Authority (SDAIA) will host Saudi Arabia’s first Global Smart Cities Forum in Riyadh on February 12-13, with speakers from more than 40 countries.
The event will bring together global urban experts, specialists in knowledge, artificial intelligence, virtual solutions, smart urban engineers, investors and economic decision-makers.
The forum aims to shape the future of cities using smart solutions and draw up basic rules that support city development plans to achieve sustainable urban development and enhance the quality of life.
It is expected to be held in 8 countries: Brazil, Argentina, Mexico, Colombia, Qatar, Saudi Arabia, Spain and the United States.
According to the Global Smart City Forum, the world population is expected to grow to 10 billion by 2050, and 70% of these people will live in the smart urban cities that countries aim to establish.
SDAIA said on its website that the forum seeks, through 80 foreign speakers, to enrich the theme of the long history of wise cities in all its aspects, basically to the efforts of governments in adopting cutting-edge models of wise solutions.
He noted that wise responses help strengthen the power and environmental sustainability and quality of life of residents.
The occasion also aims to motivate entrepreneurs to invest in smart cities by creating smart responses that innovate and striking a balance between human desires and the economic prosperity of cities.
The forum will include sessions and workshops with international experts in building and planning smart cities, investors, major universities, innovators, economic policymakers, and non-profit organizations.
It will also include discussion sessions on the future of smart cities, the demanding situations facing their infrastructures and the search for cutting-edge answers to meet the desires of a developing population.
The forum aims to identify a global platform for smart cities in Riyadh, where the world’s leading experts in smart city structure and artificial intelligence will meet to discuss topics similar to the future of these cities, naming the future of urban mobility. , sensible public services and green urbanism.
The World Smart Cities Forum was first held in Barcelona, its main venue since 2011, and has expanded to cities around the world to address the demanding situations facing the urban future and spur progress and innovation in city-building.
“India continues to be a key market for ADNOC Gas, and this latest supply agreement underscores our ongoing dedication to fostering long-term partnerships that promote responsible energy consumption,” Ahmed Mohamed Alebri, ADNOC Gas chief executive said.
Saudi Aramco said on Tuesday it would not seek to increase its peak oil production to 13 million barrels a day after receiving a directive from the kingdom’s mini-energy regulator.
Carbon emissions in flynas operations during 18 months were cut by more than 161,000 tons of carbon dioxide (CO2), equivalent to planting 6.44 million trees, according to a statistical report on sustainability in the air carrier.
Flynas, a leading Saudi low-cost airline in the Middle East and around the world, revealed that the relief is due to the adoption of several projects and practices with a lasting impact on the preservation of the environment, in line with the Kingdom’s goals of achieving 0 neutrality in terms of greenhouse fuels. fuel emissions until 2050.
The company’s sustainability functionality has advanced in three areas: maximizing energy efficiency, virtual transformation, and adopting projects that have a sustainable impact on the environment, society, and the economy.
In the first area, fuel power has been maximised with the modernisation of Flynas’ fleet of 64 aircraft, with the next generation of the A320neo, the world’s most complex and efficient single-aisle aircraft in terms of engine performance and fuel consumption, which now makes up 74% of the fleet.
Consequently, CO2 emissions were cut by an average of 7,200 tons per month, equal to the planting of 288,000 trees a month.
The new aircraft are characterized by their power by reducing fuel consumption by 18% and CO2 emissions by 8% in one hundred cycles compared to state-of-the-art aircraft.
By phasing out the old generation of classic-engine A320 (CEO) aircraft by the end of 2024, flynas aims to double its sustainability and environmental protection performance while reducing a significant additional amount of CO2 emissions.
On the second track, the company focused on adopting digital transformation as a strategic basis in the operational and commercial operations of flynas since it was established.
It is the first airline in the Kingdom to factor virtual price tickets and boarding passes in 2007, allow online payment and offer installment payment of ticket prices.
On the third track, flynas works to enhance sustainability by launching initiatives that have a sustainable impact on the environment, society, and the economy in partnership with the most critical institutions in Saudi Arabia and the world in recycling and enhancing dependence on the most environmentally friendly consumer products.
Flynas recently joined the United Nations Global Compact. The airline will seek to integrate the United Nations Sustainable Development Goals (SDGs) into its strategy, culture and operations.
The national airline would be the first LCC in the Middle East to sign up for the world’s largest sustainability initiative.
Flynas has also joined the United Nations World Tourism Organization (UNWTO), enhancing the leading LCC capabilities to contribute to sustainable global tourism. It comes in line with flynas’ sustainability strategy and the Kingdom’s vision and commitment to shaping the future of international travel.