EconSource: Gulf Ministers Say Low Oil Price is Opportunity for Reforms
The sharp drop in the price of oil is an opportunity to end subsidies and introduce reforms, Gulf ministers said Friday. “With low prices… it is the right time” to cut subsidies on oil products, Kuwait’s Finance Minister and Acting Oil Minister Anas al-Saleh said at the World Economic Forum in Davos.

He said that record low oil prices would make the lifting of subsidies on fuel products easier on consumers. “We saw an opportunity to have people do the right thing, which is to pay the right cost of energy,” said Emirati Energy Minister Suhail al-Mazrouei. “We need to rethink about major reforms that make our budgets independent from oil revenues,” he added. After liberalizing fuel prices in June, al-Mazrouei said the United Arab Emirates is looking to lift subsidies on other products and services, including on electricity. Meanwhile, Head of Bahrain’s Economic Development Board Khalid al-Rumaihi described the sharp drop in oil revenues as a “blessing in disguise,” because it provides an “opportunity for reforms.” [AFP, 1/22/2016]
 
Oil revenues that supply the vast majority of Iraqi government funds are “very limited,” with crude oil trading at half the value projected in the budget, Finance Minister Hoshyar Zebari said Thursday. He told a news conference that oil is selling between $21 and $25 per barrel. Iraq’s 2016 budget is based on a projected oil price of $45 a barrel. “Projections indicate a continued collapse of oil prices,” Zebari said. “It will be a difficult and harsh year for all of us.” Meanwhile, Iraqi Oil Minister Adel Abdul Mahdi told Reuters that Iraq is in talks with foreign oil companies to link the fees they receive for developing its fields to oil prices and have them share the burden when markets go down. According to current service agreements, the government pays oil companies a fixed fee for increasing production at ageing fields. “We are still in the process of agreeing on a new model. The talks seek to establish a correlation between the remuneration fee and the movement of oil prices,” he said. [AFP, 1/21/2016]
 
Turkey has indicated that it wants more assistance from the European Union (EU), a few months after the EU agreed to grant Turkey EUR 3 billion ($3.2 billion) in a deal aimed at stemming the flow of migration. Turkish Prime Minister Ahmet Davutoglu said Thursday that there needs to be a larger commitment to burden-sharing, as Turkey is most affected by the current migration crisis. “We are not exporting a crisis; a crisis has been exported to Turkey,” he said. He emphasized that Turkey has spent close to $10 billion on refugees within its borders. While Davutoglu stressed that Turkey is not “begging for money from the EU,” he emphasized that Turkey should not carry the burden alone. He added, “There are many things to be done, together with the EU, together with the international community.” Germany’s Die Welt newspaper suggested that Germany could provide additional bilateral funds to Turkey. [The Telegraph, Anadolu Agency, AFP, 1/22/2016]
 
The World Bank will finance infrastructure development for industrial zones in Upper Egypt governorates of Qena and Sohag, Industry and Foreign Trade Minister Tarek Kabil said Thursday. The $500 million program aims to raise the economic and competitive capacity and efficiency of the two governorates, according to Minister of Local Development Ahmed Zaki Badr. It will also address challenges to institutional and administrative coordination and strengthen the role of information and communication technology in the governorates. According to state statistics body CAPMAS, Qena and Sohag are two of the poorest governorates in Egypt. [Ahram Online, DNE, 1/21/2016]
 
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Egypt negotiates with Kuwait to renew contract to supply 3 million barrels per month | DNE
Egypt signs deal with Werner International to restructure textile sector | Ahram Online
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The sharp drop in the price of oil is an opportunity to end subsidies and introduce reforms, Gulf ministers said Friday. “With low prices… it is the right time” to cut subsidies on oil products, Kuwait’s Finance Minister and Acting Oil Minister Anas al-Saleh said at the World Economic Forum in Davos. He said that record low oil prices would make the lifting of subsidies on fuel products easier on consumers. “We saw an opportunity to have people do the right thing, which is to pay the right cost of energy,” said Emirati Energy Minister Suhail al-Mazrouei. “We need to rethink about major reforms that make our budgets independent from oil revenues,” he added. After liberalizing fuel prices in June, al-Mazrouei said the United Arab Emirates is looking to lift subsidies on other products and services, including on electricity. Meanwhile, Head of Bahrain’s Economic Development Board Khalid al-Rumaihi described the sharp drop in oil revenues as a “blessing in disguise,” because it provides an “opportunity for reforms.” [AFP, 1/22/2016]

Minister says Iraq faces harsh year due to oil price fall
Oil revenues that supply the vast majority of Iraqi government funds are “very limited,” with crude oil trading at half the value projected in the budget, Finance Minister Hoshyar Zebari said Thursday. He told a news conference that oil is selling between $21 and $25 per barrel. Iraq’s 2016 budget is based on a projected oil price of $45 a barrel. “Projections indicate a continued collapse of oil prices,” Zebari said. “It will be a difficult and harsh year for all of us.” Meanwhile, Iraqi Oil Minister Adel Abdul Mahdi told Reuters that Iraq is in talks with foreign oil companies to link the fees they receive for developing its fields to oil prices and have them share the burden when markets go down. According to current service agreements, the government pays oil companies a fixed fee for increasing production at ageing fields. “We are still in the process of agreeing on a new model. The talks seek to establish a correlation between the remuneration fee and the movement of oil prices,” he said. [AFP, 1/21/2016]

Turkey seeking more aid from EU after EUR 3 billion migration deal
Turkey has indicated that it wants more assistance from the European Union (EU), a few months after the EU agreed to grant Turkey EUR 3 billion ($3.2 billion) in a deal aimed at stemming the flow of migration. Turkish Prime Minister Ahmet Davutoglu said Thursday that there needs to be a larger commitment to burden-sharing, as Turkey is most affected by the current migration crisis. “We are not exporting a crisis; a crisis has been exported to Turkey,” he said. He emphasized that Turkey has spent close to $10 billion on refugees within its borders. While Davutoglu stressed that Turkey is not “begging for money from the EU,” he emphasized that Turkey should not carry the burden alone. He added, “There are many things to be done, together with the EU, together with the international community.” Germany’s Die Welt newspaper suggested that Germany could provide additional bilateral funds to Turkey. [The Telegraph, Anadolu Agency, AFP, 1/22/2016]

World Bank to loan Cairo $500 million to develop industrial zones in Upper Egypt
The World Bank will finance infrastructure development for industrial zones in Upper Egypt governorates of Qena and Sohag, Industry and Foreign Trade Minister Tarek Kabil said Thursday. The $500 million program aims to raise the economic and competitive capacity and efficiency of the two governorates, according to Minister of Local Development Ahmed Zaki Badr. It will also address challenges to institutional and administrative coordination and strengthen the role of information and communication technology in the governorates. According to state statistics body CAPMAS, Qena and Sohag are two of the poorest governorates in Egypt. [Ahram Online, DNE, 1/21/2016]

Also of interest
Aramco chairman says Saudi Arabia can withstand low oil prices | WSJ
Egypt’s EGAS says BP LNG cargo postponed, denies payment trouble | Reuters
Egypt negotiates with Kuwait to renew contract to supply 3 million barrels per month | DNE
Egypt signs deal with Werner International to restructure textile sector | Ahram Online
Germany may take part in Egypt new capital city projects | Amwal Al Ghad
Iraq to sell local bonds to public for first time since 2003 | Reuters