{"id":644156,"date":"2024-09-22T00:00:00","date_gmt":"2024-09-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/22\/no-more-power-cuts-more-investments-and-more-from-madboulys-latest-presser\/"},"modified":"2024-09-22T00:00:00","modified_gmt":"2024-09-22T00:00:00","slug":"no-more-power-cuts-more-investments-and-more-from-madboulys-latest-presser","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/22\/no-more-power-cuts-more-investments-and-more-from-madboulys-latest-presser\/","title":{"rendered":"No more power cuts, more investments, and more from Madbouly\u2019s latest presser"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Madbouly talks power cuts, gas production, and FDI in weekly presser:<\/strong> Prime Minister Moustafa Madbouly\u2019s weekly presser brought us significant news regarding Egypt\u2019s long-running energy crisis and confirmed state plans to develop Ras Banas, according to cabinet statements <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0kWwwjnkd41azyN9kh2vjtJvtaL5QDkBd7CotTvY8uadLuddFDA7QBicVJzQbxiSSl\" style=\"\" rel=\"noopener\">here<\/a> and <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02YrHEybsmc2fGWJd7TGmC4wCCR7nUzt3DD3LNRMNqyQ3mNy9G6kuoTvA9StDQUhaml\" style=\"\" rel=\"noopener\">here<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- <\/strong><strong>No more load shedding:<\/strong> \u201cThe electricity will not be cut off again... and there will be no more load shedding,\u201d Madbouly said, adding that the government is working to secure the necessary energy shipments to keep the lights on 24\/7. We had been expecting power cuts to return last week, after <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8883e2e1-8006-4fd6-be3c-58d871338ead\" style=\"\" rel=\"noopener\">Madbouly indicated in July<\/a> that they would be back after an eight-week hiatus.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Gas production to return to normal levels next summer:<\/strong> Our natural gas output will return to normal levels before June 2025, Madbouly said, adding that the dip in production was due to the government\u2019s inability to pay foreign companies their dues. Oil players have been ramping up their activity in Egypt after the government started <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a32982d2-a780-4740-9669-17aced583182\/gov%25e2%2580%2599t-clears-usd-1.3-bn-oil-and-gas-arrears\" style=\"\" rel=\"noopener\">clearing its arrears<\/a> to foreign oil and gas companies operating in the country and the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b79bcd3f-c14a-41e5-9ab7-50aa37b78975\/sweetening-the-pot-for-oil-and-gas-companies\" style=\"\" rel=\"noopener\">recently-introduced incentive package<\/a> for oil and gas players helped sweeten the pot even further.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember:<\/strong> The government bought <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/da0fab5f-79e9-4d82-b4ca-ed6f42f04eeb\" style=\"\" rel=\"noopener\">20 cargoes of LNG<\/a> for some USD 907 mn to cover domestic needs between October and December. The Egyptian General Petroleum Corporation awarded the tender under a six-month deferred payment plan.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- More details on the upcoming Saudi investments: <\/strong>The Saudi government\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b037f3f4-3f02-46c6-b156-8e255c10923b\/mohammed-bin-salman-tells-pif-to-pump%253cmark%253e-usd-5-bn%253c%2Fmark%253e-in-investments-into-egypt-in-first-phase\" style=\"\" rel=\"noopener\">planned<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b037f3f4-3f02-46c6-b156-8e255c10923b\/mohammed-bin-salman-tells-pif-to-pump%253cmark%253e-usd-5-bn%253c%2Fmark%253e-in-investments-into-egypt-in-first-phase\" style=\"\" rel=\"noopener\"><\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b037f3f4-3f02-46c6-b156-8e255c10923b\/mohammed-bin-salman-tells-pif-to-pump%253cmark%253e-usd-5-bn%253c%2Fmark%253e-in-investments-into-egypt-in-first-phase\" style=\"\" rel=\"noopener\">investment of USD 5 bn in Egypt<\/a> is separate from previous deposits at the Central Bank of Egypt, Madbouly said. \u201cThe USD 5 bn investments will be in projects that will be decided mutually later in important economic sectors,\u201d Madbouly said, pointing to the tourism, industry, and renewable energy sectors. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember:<\/strong> Saudi Crown Prince Mohammed bin Salman announced last week that he has directed Saudi\u2019s Public Investment Fund (PIF) to invest USD 5 bn in Egypt as part of the \u201cfirst phase\u201d of a larger program of investment. No timeline of when we can expect to see the funds was disclosed.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And that\u2019s not all: <\/strong>Saudi private-sector companies and the PIF have expressed interest in doubling their investments over \u201cthe coming period,\u201d Madbouly said, putting the figure somewhere between USD 10-15 bn. The investments will go towards renewable projects and seawater desalination plants.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Market reax: <\/strong>Madbouly\u2019s statements pushed our sovereign USD bonds to two-year highs, meanwhile bills went as high as 99.52 cents, according to <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/africa\/egypt-pm-says-saudis-planned-5-bln-investment-independent-cenbank-deposit-2024-09-19\/\" style=\"\" rel=\"noopener\">Reuters<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s all about FDI:<\/strong> Madbouly pointed to a number of meetings that took place between Egyptian representatives and their foreign counterparts during recent weeks, including <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7ebd5819-5408-42d6-8ac7-4d04010ac604\/germany%25e2%2580%2599s%253cmark%253e-president%253c%2Fmark%253e-lands-in-cairo-in-the-first-of-kind-visit-in-25-years\" style=\"\" rel=\"noopener\">President Abdel Fattah El Sisi\u2019s recent meeting with German President Frank-Walter Steinmeier<\/a> in Cairo, as well as the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/78b9247c-e3ea-40e2-8b60-117d6727695a\/madbouly,-kouchouck,-el-khatib-land-in-riyadh-on-diplomatic-mission-to-boost-trade,-investment.-plus:-egypt,%253cmark%253e-kuwait%253c%2Fmark%253e-ink-ten-mous-during-joint-committee\" style=\"\" rel=\"noopener\">Egypt-Kuwait Joint Committee<\/a> and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5d08d662-8f2e-484f-b796-c6028d7a0062\/madbouly%25e2%2580%2599s-investment-charm-offensive-in-riyadh-continues-to-dominate-the-talk-show-circuit\" style=\"\" rel=\"noopener\">Madbouly\u2019s own visit to Riyadh<\/a> alongside Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib. Madbouly emphasized that these meetings come against the backdrop of state efforts to \u201cincrease direct investment rates and attract more foreign investments.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#4- It\u2019s not just Ras Banas that\u2019ll get the Ras El Hekma treatment:<\/strong> Madbouly confirmed Housing Minister Sherif El Sherbiny\u2019s statement last week that the government is working on an investment plan to offer the Red Sea\u2019s Ras Banas to private sector players in a transaction similar to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6279e7a2-c821-416e-b98b-046943892ea7\/is%253cmark%253e-ras-banas%253c%2Fmark%253e-the-new-ras-el-hekma%3F\" style=\"\" rel=\"noopener\">ADQ\u2019s Ras El Hekma USD 35 bn agreement<\/a>, adding that the area is one of four to five large areas along the Red Sea that the government has earmarked for Ras El Hekma-esque investments \u2014 all in an effort to boost foreign direct investment, he said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We may already know one of those areas:<\/strong> The Madbouly government set up a ministerial committee <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2493b4d0-5f98-4348-ba5d-16053210a875\/blinken-is-landing-in-egypt-soon\" style=\"\" rel=\"noopener\">earlier this year<\/a> to select a consultant to manage, evaluate, and market Sharm El Sheikh\u2019s Ras Gamila \u2014 a plot that is \u201cfar smaller\u201d than Ras El Hekma, but one that will still bring in USD bns nonetheless. Saudi Arabia\u2019s Ajlan &amp; Bros Holding <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/77a58763-228f-4aeb-b95d-9ace7ef378ae\/ajlan-&amp;-bros-could-invest-usd-1.5-bn-in-tourism-project-in%253cmark%253e-ras-gamila%253c%2Fmark%253e\" style=\"\" rel=\"noopener\">in April<\/a> reportedly put in an offer to secure a land plot at Ras Gamila for the establishment of ten hotels with 3k keys in the first phase of a bigger development plan.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The story also got ink in the international press:<\/strong> <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/egypt-aims-restore-normal-output-gas-fields-by-summer-2025-2024-09-19\/\" style=\"\" rel=\"noopener\">Reuters<\/a> | <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-09-19\/egypt-earmarks-red-sea-spots-in-search-of-more-tourism-megadeals\" style=\"\" rel=\"noopener\">Bloomberg<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our natural gas output will return to normal levels before June 2025<\/p>\n","protected":false},"author":1,"featured_media":644157,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7306],"tags":[282,93,72,125,281,91,219],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-644156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet-watch","tag-cabinet-watch","tag-energy","tag-enterpriseam","tag-investment-watch","tag-moustafa-madbouly","tag-oil-and-gas","tag-saudi-arabia","wpautop","entry"],"acf":{"mongo_id":"bc540e2b-9caa-4ccd-a33e-d0a659abe617","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/1612.jpg","photo_position":"above","homepage_title":"","full_issue_title":"No more power cuts, more investments, and more from Madbouly\u2019s latest presser","related_issue":[644151],"teaser":"Our natural gas output will return to normal levels before June 2025","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/9\/.a327b140-e198-44ae-9ada-077f00c11698.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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