Saudi ADES wins contract to operate, revamp oil brownfields in Egypt
Saudi ADES wins contract to operate, revamp oil brownfields in Egypt. The Egyptian General Petroleum Corporation (EGPC) has awarded the Saudi ADES Holding Company a service contract agreement to operate and boost the production capacity of the oil brownfields of OSOCO and SOCO oil firms in Egypt. The contract’s financial impact to reflect on the company’s earnings by 2025, with a contribution to the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) estimated at 5%. (Arab Finance)
- The IPOs of Saudi broadcaster MBC and Emirati healthcare firm PureHealth have attracted a combined 86.5 billion USD in bids as investor demand for Gulf companies continues apace.
The ADQ-owned company has priced its IPO at 3.26 AED, putting it on course to raise 3.62 billion AED (986 million USD) from its share sale on the ADX. It is worth noting that PureHealth is the UAE’s second-largest IPO this year after Adnoc Gas’ 50 billion USD sale in March. MBC has priced its shares at the top of the range at 25 SAR a piece in its ongoing IPO in Riyadh, valuing the company at 8.1 billion SAR. (Zawya)
- Sky Investments seeks 3 billion EGP loan for real estate project in Egypt.
Sky Investments is seeking to borrow 3 billion EGP from Banque Misr to establish a multi-purpose real estate project in the fifth settlement. The project contracts are expected to be signed between the two parties before the end of this year. Other banks could take part in the loan. (Asharq Business)
- Polaris Parks to develop 6 billion EGP industrial zone in New October City.
Polaris Parks is looking forward to completing the industrial zone within a period ranging between two and three years. The firm also aims to attract local and foreign investments worth up to 1.5 billion USD from the first phase over the next three years. (Al Mal)
- The European Bank for Reconstruction and Development (EBRD) is loosening its purse strings with an approved 50 million USD loan to Elsewedy’s United Metals Company (UMC) and two loans in the pipeline worth a combined 35 million USD for aiBank.
United Metals Company, a subsidiary of EGX-listed Elsewedy Electric, is set to receive a 50 million USD, two-year loan from the lender to finance imports of raw materials and the company’s working capital needs. (Al Mal)
- Egypt scheduled to pay 32.8 billion in debt service in 2024.
The government is likely to restructure its debt in 2024 soon after the election amid soaring borrowing costs, according to Morgan Stanley. The annual debt service bill is expected to decline to 19.26 billion USD in 2025 before increasing to 24.88 billion USD in 2026. Egypt's total debt reached 164.73 billion USD at the end of June. (Ahram Online)
- Egypt’s total debt reached 164.73 billion USD by the end of June.
Of this total, Egypt owes 52.9 billion USD to multilateral institutions, of which the International Monetary Fund (IMF) accounts for 40%, or 21.2 billion USD. Additionally, 46.2 billion USD is owed to Arab countries, including the UAE (20.9 billion USD), Saudi Arabia (12.2 billion USD), Kuwait (7.1 billion USD), and Qatar (4.0 billion USD). (Ahram Online)
- Six banks collaborate on 2 billion EGP financing for Abd El Salam El Feky & Partners.
This financial collaboration, which includes the Housing and Development Bank (HDB), United Bank, Suez Canal Bank, MID Bank, and National Kuwait Bank (NBK), aims to fund the renovation of Alexandria Port’s main breakwater and other initiatives designed to enhance Egypt’s port infrastructure. (Daily News Egypt)
- And finally, for Gaza, the Israeli military is pumping seawater into Hamas’s tunnel network in Gaza, which could endanger Gaza’s fresh water supply.
The UAE will only help finance the reconstruction of Gaza’s infrastructure if there’s a “serious” US-backed roadmap towards a two-state solution. Netanyahu reportedly told the Knesset Foreign Affairs Committee that he will be expanding the Abraham Accords “the day after the war” and persuade the UAE and Saudi Arabia to finance the reconstruction process. (Wall Street Journal)
- More than three-quarters of the 193-member UN General Assembly voted on Tuesday in favor of a non-binding resolution calling for an “immediate humanitarian ceasefire” in Gaza.
The session, called by Egypt and Mauritania in response to the US blocking the Security Council from acting last week, saw 153 countries vote for the resolution, and just 10 countries — including Israel, the US, and Austria — vote against. Twenty-three nations — including the UK, Germany, Italy and Ukraine — abstained. A resolution requires a two-thirds majority to pass. (Bloomberg)
- Failure to apply this new resolution could “lead the region to a full-fledged war,” Egypt’s ambassador to the UN Mahmoud Abdelkhalek Mahmoud told the assembly.
He said that Israel was using genocide as a weapon of war, and accused its backers of having “despicable” double standards. The Israeli military is pumping seawater into Hamas’s tunnel network in Gaza, which could endanger Gaza’s fresh water supply. The UAE will only help finance the reconstruction of Gaza’s infrastructure if there’s a “serious” US-backed roadmap towards a two-state solution, the UAE’s ambassador to the UN said. (Wall Street Journal)
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