DUBAI: Egypt will issue a streamlined guide on wheat imports within two weeks that will detail all specifications, procedures, and regulations for traders selling to the world's largest buyer, Supply Minister Ali Moselhy told Reuters on Wednesday.
Egypt is looking to calm nervous suppliers who have been adding risk premiums of up to $500,000 per cargo because of what they said are inconsistent import rules and erratic inspection procedures.
Two cargoes were halted in recent months for containing poppy seeds and dozens have been delayed for costly addit-
ional procedures.
Speaking at an event in Dubai, Moselhy said a committee that includes the agriculture ministry has been putting together the compiled guide, which will not include new regulations but will combine all relevant rules and specifications, publishing them in one place to avoid uncertainties.
“It is our duty to publish this, and send it to all suppliers. When you know what should be done, you will be immune to any abuse of power,” Moselhy said.
Wheat shipments to Egypt have been disrupted in recent months after inspectors were stripped of travel benefits related to inspecting cargoes abroad, part of an inspection system introduced this year after a nearly year-long row over import rules.
But traders said government inspectors at Egyptian ports, angered over the loss of the travel benefits, are now applying inconsistent rules in protest and driving up the cost of doing business.
“We cannot bury our head in the sand. What happened is an abuse of power at an inconvenient time. This led to a misunderstanding between suppliers and the government,” Moselhy said of recent trade disruptions.
Suppliers have responded with hefty risk premiums on cargoes. And with Egypt's state grain buyer expecting to import around 7 million tonnes of wheat in the fiscal year that began in July, that threatens to add millions of dollars to the government's food subsidy bill.
“How will they actually apply the rules? That's what will matter,” said one Cairo-based trader.
Moselhy said Egypt's state buyer aims to keep wheat imports stable at around 7 million tonnes in the 2018-2019 fiscal year and that current reserves suggest there is no need for additional stockpiling.
“We are not a wealthy nation that can increase its stocks more than that level, so a three-month stock is more than sufficient as long as you have that amount already in-country,” said Moselhy.
— REUTERS
Egypt pledges to tackle wheat crisis
Egypt pledges to tackle wheat crisis
Closing Bell: Saudi main market closes the week in red at 10,526
RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.
The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.
Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.
Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).
On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.
Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.
On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.
Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.
Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.
On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.
The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.
Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.
Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.
The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.
