Egypt signs International Finance Corp. deal to expand private sector role in airports

Prime Minister Mostafa Madbouly oversaw the signing ceremony. Facebook/Egyptian Prime Minister’s Office
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Updated 25 March 2025
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Egypt signs International Finance Corp. deal to expand private sector role in airports

RIYADH: Egypt’s airport sector is set for increased private sector participation thanks to a new agreement with the International Finance Corp., which aims to modernize infrastructure, boost capacity, and attract foreign investment. 

Prime Minister Mostafa Madbouly oversaw the signing ceremony at the government’s new administrative capital, where Egypt’s Planning Minister Rania Al-Mashat, Civil Aviation Minister Sameh Al-Hefny, and IFC Vice President for Africa Sergio Pimenta formalized the deal. 

The agreement builds on Egypt’s ongoing partnership with the World Bank’s private sector arm, extending advisory services that support the country’s privatization efforts. 

“The agreement signed today ... is an extension to strengthen cooperation with the International Financing Corp. to provide advisory services for the governmental proposals program,” Madbouly said in a statement posted on the government’s official Facebook page. 

He added that the IFC “will provide consultative services to expand the participation of the private sector of the airport sector” in the Egyptian market.

“This is an important partnership that will contribute to the improvement of the services provided and the capacity of Egyptian airports,” Madbouly added. 

The agreement aligns with Egypt’s broader strategy to leverage the IFC’s expertise in attracting both local and foreign investments, providing technical support to national agencies, and fostering public-private partnerships, the prime minister highlighted. 

Planning Minister Al-Mashat noted that “the government is aiming to expand private sector partnerships in the airport sector, coinciding with strong growth in the tourism, transport, and storage sectors during the first quarter of the current financial year.” 

She highlighted that private sector investments now account for a record 63 percent of total investment, driven by a surge in tourism in 2024, bolstered by Egypt’s preparations for the Grand Egyptian Museum’s opening — a reflection of rising airport traffic and growing opportunities for private sector involvement.

Al-Mashat noted that the government has paved the way for these steps by enhancing macroeconomic stability, implementing measures to control public finances, enacting structural reforms to stimulate the private sector, and fostering an investment climate to attract both local and foreign investors. 

Civil Aviation Minister El-Hefny stated that under the agreement, the ministry aims to develop a strategic plan to identify airport projects suitable for private sector partnerships. 

IFC’s Vice President for Africa Pimenta said that enhancing Egypt’s airport infrastructure through public-private partnerships will drive economic growth. He added that the program will help attract global investors to build modern, high-efficiency airports, strengthening Egypt’s position as a global hub for travel and trade. 

Between July 2023 and May 2024, Egypt saw an influx of $900 million in investments from the IFC — a testament to the sustained momentum of financial inflows into the country’s economic landscape, Al-Mashat said during the “IFC Day in Egypt” event held in May. 


Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

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Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

RIYADH: Saudi Arabia launched the May issuance of its Sah savings sukuk, offering retail investors a fixed return of 4.66 percent as the government continues to push savings participation. 

The sukuk, part of the country’s broader local bond program, is issued by the Ministry of Finance and managed by the National Debt Management Center. It is available for subscription from May 4 at 10:00 a.m. until May 6 at 3:00 p.m. local time, the NDMC said in a statement. 

As part of the Vision 2030 Financial Sector Development Program, the initiative aims to boost personal savings by encouraging regular fiscal habits, expanding product access, and promoting financial literacy to support future goal planning. 

The offering, denominated in riyals, also supports the goal of raising the national savings rate from 6 percent to 10 percent by the decade’s end. 

The sukuk carries a one-year maturity and can be purchased in increments of SR1,000 ($266), with a cumulative cap of SR200,000 per individual across all program issuances.  

Allocation is scheduled for May 13, with redemption occurring between May 18 and 20. Payments will be disbursed on May 25.   

The Sah sukuk is accessible through digital platforms operated by SNB Capital, Al Rajhi Capital, and AlJazira Capital, as well as Alinma Investment and SAB Invest. 

The May issuance of the Sah savings product follows the fourth round issued in April, which offered a 4.88 percent return under the Ijarah sukuk structure. Available through the digital platforms of approved financial institutions, the bonds featured a one-year savings term with fixed returns payable at maturity. The minimum subscription was SR1,000, with a maximum cumulative limit of SR200,000 per user across all issuances during the program period.

Sah is Saudi Arabia’s first Shariah-compliant savings instrument for individuals. Structured under the Ijarah model — where returns are derived from leasing-based assets — the product is designed to offer a low-risk, fixed-income alternative with no fees and exemption from Zakat.  

Returns are paid upon maturity, with early redemptions allowed during set windows but without profit entitlement. 

NDMC CEO Hani Al-Madini said in March that Sah that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.  

In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions. 


Saudi fintech startup Nqoodlet secures $3m in seed funding

Updated 19 min 26 sec ago
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Saudi fintech startup Nqoodlet secures $3m in seed funding

RIYADH: Saudi fintech firm Nqoodlet has announced the successful closure of a $3 million seed funding round aimed at accelerating its mission to streamline financial operations for small and medium-sized enterprises.

The round was led by Waad Investments, with participation from Omantel, Sanabil 500 Investment, OQAL, Seed Holding, and a group of strategic investors.

Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet offers an integrated digital platform that includes smart corporate cards, real-time expense tracking, and financial automation tools. The startup is focused on transforming financial management for SMEs across Saudi Arabia and the wider Gulf Cooperation Council region.

According to the company, more than 600 SMEs have already adopted the platform, resulting in reported gains such as an 80 percent improvement in process efficiency and average annual cost savings of SR200,000 ($53,330) per business.

“This funding gives us the rocket fuel to scale faster, go deeper with banks, and bring financial clarity to thousands of businesses who deserve better,” said Milyani.

Yaser Al-Ghamdi, chief investment officer at Waad Investment, said the firm backed Nqoodlet because “they are not just building a product — they are building an entirely new future for financial technology.” 

With the new capital, Nqoodlet plans to enhance its technology infrastructure, launch open banking integrations, develop automated tax solutions, and expand strategic partnerships within the regional fintech ecosystem.

“This isn’t just a funding round. It’s a statement: GCC is ready for the next generation of fintech,” said Ghouth.


Saudi insurance firm Al-Etihad retains Moody’s A3 rating with stable outlook 

Updated 34 min 15 sec ago
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Saudi insurance firm Al-Etihad retains Moody’s A3 rating with stable outlook 

RIYADH: Saudi-based Al-Etihad Cooperative Insurance Co. has retained its A3 financial strength rating from Moody’s, reflecting the firm’s strong market position and disciplined underwriting. 

Moody’s cited several key strengths supporting the rating, including Al-Etihad’s solid market position as the Kingdom’s eighth-largest insurer, its conservative investment strategy — where high-risk assets represent just 28.2 percent of equity — and its strong capital adequacy.  

The agency also highlighted the company’s five-year average return on capital of 7.7 percent and a healthy combined ratio of 95.2 percent. 

“However, these strengths are partially offset by Al-Etihad’s concentration to the Saudi insurance market which has an elevated level of competition, as well as Al-Etihad’s concentration to motor and medical insurance, which are the Saudi insurance market’s most competitive lines of business,” Moody’s said. 

This marks the second consecutive A3 rating for Al-Etihad since August, when Moody’s initially assigned the grade, citing similar strengths such as asset quality and profitability. At the time, the agency emphasized the insurer’s ability to navigate competitive pressures while maintaining financial resilience. 

Al-Etihad, a mid-tier property and casualty insurer, offers a range of commercial and personal insurance products. The A3 rating places the company in the upper-medium grade category, indicating low credit risk and a strong capacity to meet its financial obligations. In its August update, Moody’s also affirmed Al-Etihad’s Governance Issuer Profile Score of G-2, reflecting its conservative risk management practices and experienced leadership.  

The insurer’s 2023 financial performance further strengthened its standing, with net profits surging 639 percent year-on-year to SR93.89 million ($25.02 million), driven by increased revenues in the motor insurance segment. 

Looking ahead, Al-Etihad’s ability to sustain profitability while effectively managing market risks will be critical to maintaining its current rating. 

Moody’s review did not incorporate explicit support from Al-Etihad’s largest shareholder, Kuwait’s Al Ahleia Insurance, but acknowledged governance benefits from the partnership. The agency’s following assessment will evaluate any material changes in the company’s credit profile. 

For now, the stable outlook signals confidence in Al-Etihad’s strategic direction, even as it faces sector-specific challenges in Saudi Arabia’s evolving insurance landscape. 

The Kingdom’s insurance sector has experienced robust growth, with revenues surging 16.9 percent year on year in the third quarter of 2024, driven by strong demand for motor, medical, and property insurance.  

According to a KPMG report, this expansion is fueled by Vision 2030-driven regulatory reforms, including mandatory health coverage and stricter auto insurance requirements.  

The sector’s net profit before zakat and tax jumped 25.9 percent to SR3.90 billion, while total assets grew 20 percent to SR84.91 billion, reflecting deepening market maturity.  

The Insurance Authority’s 2023 establishment and adoption of IFRS 17/9 standards have further strengthened governance and transparency. 

With S&P Global projecting 10-15 percent revenue growth in 2025, the sector remains a key pillar of Saudi Arabia’s economic diversification. 


Oman inflation inches up by 0.56% in March

Updated 44 min 34 sec ago
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Oman inflation inches up by 0.56% in March

RIYADH: Oman’s inflation rate inched up by 0.56 percent in March, reflecting overall price stability despite notable movements in select consumer categories, official data showed. 

According to data from the National Centre for Statistics and Information, the biggest year-on-year gain was recorded in the miscellaneous goods and services segment, which rose 6.11 percent, followed by health, up 3.22 percent, and transport, which advanced 1.74 percent.  

In contrast, prices for vegetables and fish and seafood fell sharply, declining 10.23 percent and 6.95 percent, respectively. 

Oman’s inflation remains one of the lowest in the region, thanks to government measures, prudent fiscal policies, high oil prices, and rising non-oil exports, with the rate easing in recent months. 

Across the region, Saudi Arabia recorded a 2.3 percent annual rise in consumer prices in March, with inflation largely driven by housing and utility costs, while Dubai’s rate moderated to 2.8 percent, down from 3.15 percent in February, supported by lower transport and food costs. 

On a monthly basis, Oman’s general index dropped by 0.36 percent in March compared to February.    

Despite the decline, the fruit category saw a 3.25 percent increase, followed by the miscellaneous goods and services group which saw a 0.72 percent increase.   

In contrast, transport prices fell 1.86 percent month on month, while the fish and seafood group dropped 3.53 percent.  

The food and beverages category, which holds the highest weighting in the consumer price index basket, fell 0.74 percent year on year and 0.58 percent month on month.   

Within this group, milk, cheese and eggs posted a 2.97 percent annual increase, while bread and cereals and meat fell by 0.55 percent and 0.44 percent, respectively.  

Oman has continued to consolidate its fiscal position, building on the momentum of recent surpluses. 

The Ministry of Finance recently reaffirmed its 2025 budget outlook, underpinned by sustained oil revenue and ongoing diversification initiatives. 

The sultanate recorded a real gross domestic growth of 1.3 percent in 2023, supported by a robust non-oil sector, and projects GDP to reach 44.1 billion Omani rial ($114.66 billion) in 2025.  

Non-hydrocarbon activities are expected to account for 70.5 percent of this total, reflecting progress in the country’s Vision 2040 goals. 

Additionally, public revenues are projected at 11.2 billion rial, with a continued focus on reducing public debt and boosting private sector participation. 


MENA’s exposure to US tariffs mostly indirect, says Moody’s 

Updated 04 May 2025
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MENA’s exposure to US tariffs mostly indirect, says Moody’s 

RIYADH: The Middle East and North Africa’s exposure to the latest US tariffs will be largely indirect, driven by weaker global growth prospects and softening energy prices rather than direct trade effects, a new analysis showed. 

In its latest report, Moody’s Investors Service noted that the Trump administration’s exclusion of oil and gas from the tariff scheme limits the immediate impact on MENA economies. 

This comes as US President Donald Trump imposed a 10 percent universal import tariff and duties of up to 145 percent on Chinese goods — prompting Beijing to retaliate with tariffs of up to 125 percent — while granting a 90-day pause on steeper tariffs for dozens of other countries. 

Moody’s views align with an April report by global consulting firm PwC, which stated that Middle Eastern economies will not face a direct impact from the tariffs, but will be affected through indirect channels. 

“Exemption of oil and gas from the new US tariff scheme limits the size of the region’s affected exports to a relatively small share of GDP (gross domestic product), except for Jordan,” Moody’s said. 

The report added that second-order consequences, such as declining demand, lower investor risk appetite, and cheaper oil, are more likely to weigh on credit conditions. 

“The second-round impact, due to weaker global demand, will be tempered by a relatively limited reliance of the MENA region’s growth on non-energy exports,” it added. 

The analysis further noted that the oil market has already priced in expectation of weaker global growth. Brent crude declined to around $65 per barrel in April — about 20 percent below the average price recorded in 2024. 

Moody’s cautioned that if significantly low oil prices persist, they could strain the fiscal and external balances of oil and gas-exporting countries in the GCC region. 

Prolonged low oil prices could also force Gulf Cooperation Council governments to slow the rollout of infrastructure projects tied to economic diversification efforts, dampening near-term growth prospects for the domestic non-hydrocarbon sector. 

“The sovereigns that are most exposed to lower oil prices are those with the largest government oil revenue as a share of GDP and the highest (fiscal break-even) oil price that balances their government budgets, especially Kuwait, Iraq, Saudi Arabia and Bahrain,” Moody’s said.

It added: “While the starting point for Saudi Arabia and Kuwait, which has virtually no government debt, will be a very strong government balance sheet, Bahrain’s debt already exceeds 130 percent of GDP and, unlike its higher-rated GCC neighbors, it has no significant government financial assets and very limited foreign-currency reserves to buffer the impact of lower oil prices.”  

The US-based agency added that issuers in the Middle East with weak credit quality, substantial financing needs, and limited buffers may face heightened liquidity pressures amid increased market volatility and tighter credit conditions. 

Amid ongoing uncertainties surrounding global growth prospects, the International Monetary Fund noted earlier this month that short-term growth in the Middle East will be driven by expansion in the non-oil sector, projecting regional economic growth of 2.6 percent in 2025 and 3.4 percent in 2026. 

Banking sector 

According to the latest study, growth prospects for the banking sector could come under pressure if economic activity slows and lending margins are compressed. 

Should the new US tariffs weigh on the global economy and drive down oil prices, regional business confidence may weaken and government spending could decline, ultimately dampening loan growth prospects for GCC banks. 

“Weaker growth could also erode asset quality as GCC banks have a large concentration in real estate and contracting. Both sectors are sensitive to investor confidence and government spending,” said Moody’s.

The report further noted that a potentially faster decline in global interest rates could squeeze banks’ margins. 

GCC banks’ loan books remain heavily weighted toward the corporate sector, where loans are typically floating-rate, which could exert pressure on bottom-line profitability. 

“Saudi Arabia is an exception with an evenly split book between corporate and retail. However, GCC banks in general and large banks in particular are well-positioned to withstand market volatility given their resilient financial profiles, diversified balance sheet, strong market access and healthy capital buffers,” said Moody’s.  

The analysis added that corporates will also feel the impact of weaker global demand, lower energy prices, and potentially reduced government spending. 

A significant global slowdown could further dampen demand for real estate in the GCC, particularly in the UAE, which has seen a sustained property market boom over the past four years. 

The agency concluded that sovereign wealth funds in the region may need to increase borrowing to preserve their capacity to finance and implement economic diversification mandates.