Egypt Post says investments exceed $6.3bn as IPO nears

More than 6 billion Egyptian pounds have been invested in new projects. (Shutterstock)
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Updated 09 June 2021
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Egypt Post says investments exceed $6.3bn as IPO nears

  • Post For InvestmentsCo. IPO is imminent, says chairman
  • Timing and size of IPO will depend on investor appetite

RIYADH: The Egyptian Post Authority said its assets exceed 100 billion Egyptian pounds ($6.3 billion) as it prepares to list its investment arm.

More than 6 billion Egyptian pounds were allocated to investments in new projects, including the sports sector, which will be announced soon, Chairman Sharif Farouk told CNBC Arabia.

Egypt’s Post For Investments Co. share offering on the Egyptian Stock Exchange is imminent after completing processing of the company and its subsidiaries during the current fiscal year, he said.

Market appetite and the interest from foreign capital will determine the timing and size of the offering.


Saudi minister stresses energy security importance amid climate concerns

Updated 19 min 45 sec ago
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Saudi minister stresses energy security importance amid climate concerns

RIYADH: Energy security does not need to be sacrificed to deal with climate concerns, one of Saudi Arabia’s top ministers has insisted.

The Kingdom’s Energy Minister Prince Abdulaziz bin Salman flagged made the comments at a dialogue session titled “Energy Security, Future of Energy, and Sustainable Development” during the 2024 IsDB Group Annual Meetings in Riyadh.

His warning come as climate change discussions now include a focus on innovative solutions such as renewables and advanced technologies while ensuring energy security and economic growth.

Prince Abdulaziz stated: “We believe in the reality of the climate crisis, but we support dealing with it according to the priorities of each country.”

He added: “Our issue is not recognizing the existence of the problem of climate change, but rather how to deal with it in a fair and direct manner, taking into account the differences in the national circumstances of countries.” 

The minister stressed the importance of collaboration and collective action, noting Saudi Arabia’s proactive engagement on global warming.

“The Kingdom has the second lowest intensity of carbon dioxide and methane emissions in the world, and countries that occupy lagging positions must follow our approach,” he emphasized, urging nations to unite and work together toward effective solutions.

“The discussion on the issue of climate change must be realistic and logical to enable all parties to cooperate in confronting this global issue,” the minister added.

The energy minister joined a growing chorus of high-profile figures discussing the trade-offs between energy security and climate concerns. 

In March, President and CEO of Aramco Amin Nasser called for a new approach to the energy transition that incorporates oil and gas, saying the current strategy “is visibly failing on most fronts.” 

Speaking at the same meeting as Prince Abdulaziz in Riyadh, Muhammad Al-Jasser, president of the Islamic Development Bank, highlighted the institution’s commitment to green projects through innovative financing mechanisms. 

“Anytime you have a green project, you can issue sukuk against it. Once you have those green sukuks, you can create green assets against it and then you have a virtual cycle triggered into the process and we’re already there,” he explained.

Al-Jasser emphasized the bank’s proactive approach to catalyzing change rather than waiting for it.

“This year is going to be a bumper year for us, we’re going to be issuing $6 billion of sukuk; some of it will be green. This is our way of helping and not waiting too long to bring about that change,” he said.

Addressing the financing challenges associated with the energy transition, he emphasized the progress made by IsDB in increasing funding for sustainable projects. 

“We will provide financing within our abilities and we do it with also all of the other Arab lending institutions,” he explained.

He continued: “There’s the Arab Coordination Group, we compare notes and we go out and we finance some of these projects like the hydro dams that we have financed together and that helps a lot with the transition and with the creation of sufficient energy to fuel these economies.”

However, he acknowledged the financial constraints and emphasized that the  transition must be realistic and inclusive, stating: “We will never have enough money, and therefore the transition has to take that into account.”


Malaysia to witness $10bn investment from ACWA Power in renewable energy sector: prime minister

Updated 55 min 3 sec ago
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Malaysia to witness $10bn investment from ACWA Power in renewable energy sector: prime minister

RIYADH: Saudi utility firm ACWA Power has expressed interest in investing $10 billion in Malaysia over the next 10 years to develop renewable energy projects. 

According to a report by the Malaysian National News Agency Bernama, ACWA Power will collaborate with Cypark Resources Bhd on the developments.

Malaysian Prime Minister Anwar Ibrahim confirmed this news on his Facebook page following a meeting with ACWA Power Chairman Mohammad Abunayyan on the sidelines of the World Economic Forum in Riyadh. 

Ibrahim said that the Saudi firm is prepared to collaborate with strategic partners in Malaysia to develop multiple renewable projects across various states in the nation. 

“I express my appreciation for ACWA Power’s commitment to increasing its investments in Malaysia and informing that the country always welcomes any effort that contributes to the economic growth of the country and the prosperity of the people,” Ibrahim wrote on his Facebook page.  

He added that ACWA Power has already presented several investment proposals, which include developing renewable sites in Kelantan, Perlis, and Johor, as well as in Terengganu and Sarawak. 

The prime minister said Malaysia will continue to implement investment-friendly policies, with a focus on initiatives ensuring that every deal is simplified and expedited. 

Earlier this month, ACWA Power signed a new agreement with SOCAR, the state oil company of Azerbaijan, to accelerate the development of renewable projects in the nation. 

“The primary directive of the agreement will be to enhance SOCAR’s carbamide fertilizer facility, striving toward more value-added low-carbon products,” said ACWA Power in a statement at that time.  

In the same month, the Saudi-listed firm also signed another deal with the International Renewable Energy Agency to accelerate the adoption of clean energy worldwide. 

Under the deal, the utility developer will work closely with IRENA to share crucial insights on infrastructure investment in renewable energy, green hydrogen advancement, solar energy, and the intersection of energy and water.  

ACWA Power and IRENA will also investigate avenues to mobilize finance and investment for renewable projects, along with supporting infrastructure for the development, storage, distribution, and transmission of clean energy. 


Saudi Arabia open to readjusting 150m tourists Vision 2030 target if goal achieved early, official reveals 

Updated 30 April 2024
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Saudi Arabia open to readjusting 150m tourists Vision 2030 target if goal achieved early, official reveals 

RIYADH: Saudi Arabia is open to readjusting its goal of attracting 150 million visitors by 2030 if those numbers are achieved ahead of time, according to the deputy minister of destination enablement at the Ministry of Tourism. 

Speaking in an interview with Arab News on the sidelines of the first day of the Future Hospitality Summit taking place in Riyadh from April 29 to May 1, Mahmoud Abdulhadi explained that targets are adjusted based on performance.

“As we hit our target seven years ahead of target, our 100 million target, we therefore now have a new target,” Abdulhadi said. 

“I’m sure if we were to hit that new target with a significant overperformance in terms of the timeline, our targets would also be adjusted,” he added. 

The deputy minister went on to stress that this does not affect the ministry’s plans significantly as the entity works to ensure the sector is sustainable and can grow.

“The fact that we’ve been able to absorb the 100 million tourists in the last year, and we will continue to see growth in that figure, it just means that some of our plans may need to be accelerated, some of them may need to be modified a little bit,” Abdulhadi highlighted. 

“But we’ve always been planning to make sure that that sustainability and that growth is embedded in everything that we do,” he affirmed. 

The deputy minister clarified that there will be no change in terms of how the entity will deliver. Instead, there may be some modifications regarding its tactical priorities as well as delivery timelines. 

Regarding the ministry’s secondary role as the sector’s regulator, Abdulhadi underlined that the organization is working to promote the industry from an investment perspective to create a visitable and sustainable field.

“In order to do this, that enablement means that we are cascading down our national tourism strategy and our national targets onto and through our partners in the government, be they the other ministries, because, as you know, tourism is a very horizontal sector; we cover a lot of of other industries,” he empathized.

Abdulhadi also mentioned that the ministry is working with the regional development authorities to help ensure that they are delivering on the promise made at the national level to conceive these destinations correctly. 

“So again, we are the regulator, and we are there to make sure that the environment is in the right place, it is in the right regulations, and it is in the right attractiveness to investors and visitors alike,” the deputy minister said. 

“We are definitely working with the private sector to help facilitate for them, where investors come in and they bring in operators. We try and assist both parties on making sure that the product that is delivered meets our ambitions,” he added.

Discussing the pledge to create one million additional jobs in the sector, Abdulhadi explained how the ministry is currently engaging with several international operators and providers of training facilities and education.

“We’ve committed to train over 100,000 Saudis a year, and in order to do this, we’ve teamed up with with the best people globally and domestically in order to deliver on those training programs,” Abdulhadi concluded. 

More than 1,200 global investors are expected to partake in FHS. The event, which is being held at Al-Faisaliah Hotel, will focus on sustainable tourism and technology-driven hospitality under the theme, “Invest in Tomorrow: Today, Together.”   

Industry leaders are projected to discuss sustainable development, investment prospects, entrepreneurship, and human capital, as well as gain insights into the continued expansion of the Kingdom’s hospitality and tourism sectors.   


Saudi Arabia and Mauritania forge energy pact, emphasizing expertise exchange 

Updated 30 April 2024
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Saudi Arabia and Mauritania forge energy pact, emphasizing expertise exchange 

RIYADH: Saudi Arabia and Mauritania have signed a framework agreement aimed at exploring opportunities and fostering expertise exchange in the fields of electricity, renewable energy, and clean hydrogen.

The memorandum of understanding was signed during the recently concluded World Economic Forum Special Meeting in Riyadh, where Saudi Minister of Energy Prince Abdulaziz bin Salman and Mauritania’s Minister of Petroleum, Mines, and Energy, Nany Ould Chrougha, met. 

The MoU encompasses promoting the exchange of expertise and exploring partnership opportunities in renewable energy sectors such as solar, wind, waste-to-energy, and geothermal energy, according to the Saudi Press Agency. 

Moreover, the deal focuses on enhancing the reliability and security of the electricity system through development and improvement initiatives. 


Ma’aden strengthens phosphate business through share purchase agreement with Mosaic

Updated 30 April 2024
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Ma’aden strengthens phosphate business through share purchase agreement with Mosaic

RIYADH: Saudi Arabian Mining Co. has entered into a share purchase and subscription agreement with the Mosaic Co. with the aim of expanding its phosphate business.  

Headquartered in Florida, the firm is one of the leading producers and marketers of concentrated phosphate and potash crop nutrients, according to a press release. 

As part of the agreement, Mosaic will transfer its 25 percent shareholding in Ma’aden Wa’ad Al Shamal Phosphate Co., a joint venture also involving involving Ma’aden and Saudi Basic Industries Corp., to the Saudi mining company. 

This deal will effectively raise Ma’aden’s stake in MWSPC to 85 percent. 

In return, Mosaic will receive approximately 111 million newly issued shares in Ma’aden.

Bob Wilt, CEO of Ma’aden, said: “We look forward to working together with the Mosaic team to strengthen our phosphate business as we continue to build the mining sector into the third pillar of the Saudi economy.” 

Ma’aden Wa’ad Al Shamal Phosphate Co. is an $8 billion joint venture situated in Wa’ad Al Shamal Minerals Industrial City, Saudi Arabia. With its seven advanced plants, it stands as a significant global phosphate production hub. 

Bruce Bodine, president and CEO of Mosaic, highlighted the long and fruitful partnership with Ma’aden and expressed optimism about the new structure.  

“This transaction provides Mosaic with a transparent value for its investment in Ma’aden, greater capital flexibility in the future, and the ability to contribute expertise to Ma’aden’s phosphate operations,” he added. 

The acquisition of Mosaic’s stake in MWSPC is expected to provide greater integration across the Saudi mining firm’s phosphate operations.

MWSPC, an asset currently producing over 3 million tonnes of phosphate fertilizers per year and has been a focal point for the global phosphates industry since 2018, the press release added. 

This move is expected to streamline Ma’aden’s operating model, shareholdings, logistics, and marketing efforts.  

Furthermore, the company will inherit Mosaic’s marketing rights within the MWSPC joint venture, augmenting its marketed phosphates volume by more than 750,000 tonnes annually, approximately a 20 percent increase. 

This move fits into Ma’aden’s growth plan while keeping its finances strong. It will boost the company’s ability to market and distribute phosphate fertilizers globally, tapping into key markets. 

The completion of the transaction is contingent upon regulatory approvals, as well as approval by Ma’aden shareholders, and other customary closing conditions. It is anticipated to be finalized in the third quarter of 2024. 

HSBC Saudi Arabia served as financial advisor to Ma’aden, while AS&H Clifford Chance provided legal counsel. Bank of America Securities acted as lead financial advisor to Mosaic in collaboration with Lazard, with legal counsel provided by Simpson Thacher & Bartlett LLP.