LONDON: Egyptian stocks tumbled to their lowest level this year on Wednesday as retail investors took flight.
A sharp rise in Suez Canal revenues, a major foreign exchange earner for the country, was not enough to quell investors concerns about the strength of the currency.
The main Egyptian stock index lost 3.8 percent which some fund managers blamed on generally negative sentiment toward emerging markets worldwide as well as more local speculation about possible currency devaluation.
“Our channel checks suggest the sell-off in the Egyptian market is local retail and institutions driven, on currency fears and speculation over a further round of devaluation,” said Vrajesh Bhandari, portfolio manager at Al Mal in Dubai, Reuters reported.
“Selling is further intensified as margin calls are triggered and technical support levels break down. The country canceled three consecutive Treasury auctions, citing investors’ unrealistic yield demands.”
Egypt’s Suez Canal revenues rose to $502.2 million in August up 6.7 percent from a year earlier according to official data released on Wednesday.
Elsewhere regional stock markets closed mostly lower with the exceptions of Abu Dhabi which edged 0.2 percent higher and Saudi Arabia, the best regional performer, which rose by 1.1 percent.
Saudi stocks are benefiting from the strong oil price which eased slightly yesterday but still hovered just under $79.
OPEC and some other oil producers including Russia will meet in Algeria on Sept. 23 to discuss how to allocate supply increases within their quota framework to offset the loss of oil exports from Iran following the introduction of sanctions by the US.
Those measures will come into force on Nov. 4 and data suggests that buyers are already retreating from Iranian crude purchases.
A key question for the oil price as well as regional stock markets in the weeks ahead will be the extent to which other Gulf oil exporters can compenaste for the loss of Iranian supplies by pumping more.
Egypt stock market plunges as retail investors take flight
Egypt stock market plunges as retail investors take flight
- Biggest index drop in Egypt since mid-2016
- Saudi Arabia outperforms in Gulf
Industry minister inaugurates advanced factories in Sudair
SUDAIR: Minister of Industry and Mineral Resources and Chairman of the Board of the Saudi Authority for Industrial Cities and Technology Zones, known as MODON, Bandar Alkhorayef, on Feb. 16, inaugurated several advanced factories to produce food, pharmaceuticals, medical equipment, and construction materials in Sudair City for Industry and Businesses.
The move is part of the ministry’s efforts to localize high-value industries and enhance the Kingdom’s health and food security.
The minister inaugurated the Sierra Life factory, the first facility in the Middle East specializing in producing medical foods for metabolic disorders.
This strategic investment aims to localize advanced therapeutic food production and integrate the industrial and health sectors to meet medical needs previously heavily reliant on imports.
Alkhorayef reviewed precise production lines for patients with metabolic disorders such as phenylketonuria, or PKU, and urea cycle disorders, as well as gluten-free and low-protein products for celiac patients.
The facility employs advanced manufacturing technologies and global quality standards, establishing a unique medical-industrial hub serving specialized medical cases in the region.
The minister also inaugurated the Sudair Warehouses project, representing an important step in developing logistics and industrial infrastructure.
The project reflects the industrial sector’s commitment to supporting industrial investors, stimulating high-value investments, and enabling national supply chains, thereby contributing to the achievement of Saudi Vision 2030 objectives.
Among the facilities inaugurated was Qomel Pharmaceutical Industries, supporting the localization of biopharmaceutical production in Saudi Arabia.
During his tour, the minister also reviewed the fully integrated industrial environment for producing solid pharmaceutical forms, such as tablets and capsules, advanced manufacturing operations, robust quality systems, high-level regulatory compliance procedures, and modern technologies that enhance production efficiency according to international standards. These measures help ensure product quality, reliability, and safety.
Alkhorayef also inaugurated Al-Hatab Foods Factory, the largest chilled food facility in the Middle East and a pioneering national project supporting the growth of the Kingdom’s food industry.
The minister reviewed advanced manufacturing methods that reduce bacterial growth and prolong shelf life without preservatives or heat treatment, maintaining nutritional value and high quality.
Al-Hatab operates 15 production lines for a wide range of fresh foods, including juices, salads, and sandwiches, with a capacity exceeding 6 million units per week, meeting growing domestic demand and reflecting the evolution of the Saudi food industry.
Alkhorayef also inaugurated the Industrial Orthopedic Co., which focuses on localizing the production of orthopedic medical devices. He reviewed production processes and technologies for manufacturing rods and screws for limb and spinal fracture treatment, artificial joints, and patient-specific products using 3D printing.
The project is currently undergoing operational testing, qualification, and workforce training, while quality, documentation, and traceability systems are being finalized ahead of full-scale production and regional and global expansion.
Additionally, the minister inaugurated a factory specializing in construction panels and industrial building solutions, providing sustainable insulation products that support the Kingdom’s construction sector.
The facility represents an investment of SR100 million ($27 million), incorporates 80 percent industrial automation across its production lines and operations, and has an annual capacity of 200,000 linear meters of insulating panels.
During his visit to Sudair City for Industry and Businesses, the minister also inaugurated the ready-made factories project, developed by Pan Kingdom Co.
This initiative is a key step in developing logistical and industrial infrastructure, supporting industrial investors, promoting strategic investments, and enabling national supply chains, contributing to the objectives of Saudi Vision 2030.
The project provides advanced operational spaces, fosters the growth of the manufacturing sector and creates quality jobs, as well as enhances local content and strengthens industrial sector efficiency.
The minister’s visit underscores the ministry’s commitment to creating a competitive investment environment in the industrial sector, developing infrastructure in industrial cities, and expanding the localization of industries related to food and health security, further positioning the Kingdom as a leading industrial hub regionally and globally.
