ENERGY-

The Madbouly government cleared up USD 1 bn in arrears owed to foreign oil companies in the first week of January, Asharq Business reports citing an unnamed government source. A new schedule to settle the accumulated USD 6.5 bn in arrears had been agreed with companies, with repayments set to run from next month until June 2025.

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Remember: Following a costly few months of energy imports to bridge the gap between local production and demand, the Oil Ministry has been on a mission to start increasing local energy production starting in 2025. In addition to partially clearing arrears to international oil companies since the EGP float in March, the Oil Ministry is offering new incentives to energy players that include increasing production sharing ratios with foreign companies in exchange for new investments, enhancing exploration efforts, and increasing extraction rates with the aim of boosting local production.

EXPANSION-

Three Egyptian pharma players are reportedly planning to set up factories in Saudi Arabia during 1Q 2025, Egyptian Businessmen's Association’s Engineering Consulting Committee President Waleed Sweida told Al Arabiya. The companies have already purchased the land plots and plan to set up specialized facilities for the manufacture of cancer treatment drugs and medications for other chronic diseases.

Another seven local companies are looking into setting up plants in Saudi Arabia, Sweida said, adding that he expects the final contracts for these projects to be inked late 2025-early 2026.

Remember: The pharma sector was one of key sectors — alongside petrochemicals and automotive — included in the Egyptian-Saudi agreement on streamlining mutual investments and providing investment guarantees.

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