Ain Sokhna industrial zone launches two factories worth combined USD 210 mn

Good afternoon, friends. We hope this finds you well and that your air filters are earning their keep today. We come with glad tidings of two new industrial zone factories breaking operational ground in Ain Sokhna, alongside details on Trump’s Mideast tour, and Google’s rough week.

THE BIG STORY TODAY

Two factories worth a combined USD 210 mn are launching operations in Ain Sokhna: China’s state-owned Xinxing Ductile Iron Pipes Company is inaugurating a USD 150 mn ductile iron pipes plant in the Ain Sokhna industrial zone today, while Turkish sanitary product company Hayat’s local subsidiary Hayat Egypt is launching a USD 60 mn project in the zone, according to a cabinet statement. The projects are part of ongoing efforts to develop the Suez Canal Economic Zone’s four industrial zones and six ports.

Xinxing broke ground on the iron pipes factory in May of last year. The project, which is located in Sokhna’s TEDA industrial park, was projected to manufacture 250k tonnes of cast iron pipes per year with an annual production value of USD 1.2 bn.

And Hayat Egypt is launching a tissue factory: Hayat Egypt in November 2023 inked a EUR 30mn medium-term loan agreement with Emirates NBD Egypt to finance plans for a tissue factory in Ain Sokhna that was at the time estimated to be worth USD 70 mn.

THE BIG STORY ABROAD

Trump kicks off Mideast tour with Saudi Arabia visit: US President Donald Trump has arrived in Riyadh to begin a four-day Middle East trip focused on securing tns of USD from the Gulf, marking his first scheduled overseas trip since taking office. Trump is seeking USD 1 tn from Saudi Arabia alone — an amount equivalent to the Kingdom’s gross domestic product last year and well beyond the USD 600 bn it pledged. The presidential itinerary includes visits to Qatar on Wednesday and the UAE on Thursday, but notably omits Israel, raising questions about shifting US priorities in the region.

Trump is expected to announce an agreement that would give Saudi Arabia access to semiconductors imports from tech giants like Nvidia and Advanced Micro Devices, allowing it to secure components that are necessary for developing AI models and potentially giving a significant boost to the Kingdom’s technological capabilities. (Reuters | Bloomberg | New York Times | AP News)

☀️ TOMORROW’S WEATHER- We’re seeing relatively mild weather tomorrow in the capital ahead of the weekend spike, with the mercury settling at a sunny 30°C throughout the day and cooling to 19°C at night, according to our favorite weather app.