Iraqi Finance Minister Hoshiyar Zebari has said that Iraq is willing to take part in emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC) in order to lift oil prices.
OPEC said it was considering a request from Venezuela to hold a meeting. Venezuela has also called for a meeting of OPEC and non-OPEC nations in February. Zebari stressed that the policy “needs to be a collective one, otherwise it will not work.” However on Tuesday, Iraqi Oil Minister Adel Abdel Mahdi said Saudi Arabia and Russia were showing signs of flexibility. “We have seen some flexibility from the brothers in Saudi and a change in tone from Russia,” he said. Mahdi and Acting Kuwaiti Oil Minister Anas al-Saleh said they were willing to back an emergency OPEC meeting if an agenda were agreed in advance. Meanwhile, Zebari said there are “encouraging signs” that oil prices could rebound in the coming months on lower output from higher-cost US shale oil producers. [Reuters, 1/27/2016]
The dollar surged against the Egyptian pound on the black market on Wednesday after the Central Bank of Egypt (CBE) raised a cap on foreign currency deposits. The CBE raised the cap on dollar-denominated deposits from $50,000 a month to $250,000 for essentials. “Speculators used the confusion caused by the central bank decision to push the pound lower … A huge wave of demand on dollars hit the market after raising the cap,” one trader said. “The market is also expecting the central bank to amend the official exchange rate of the pound,” he said. Before the CBE’s announcement, the black market rate for the dollar was around 8.62 pounds, far from the official rate of 7.7301 pounds per dollar. “There is no supply and there is higher demand after they raised the caps… We sold at this (8.75 pound) price and now we are unable to find dollars to buy,” another trader said. [Reuters, 1/27/2016]
Tunisia and the Arab Fund for Economic and Social Development (AFESD) signed two loan and technical support agreements worth 332 million dinars on Tuesday in Kuwait amid a visit by President Beji Caid Essebsi. Tunisian Finance Minister Slim Chaker said the first loan, worth 330 dinars, will be allocated to building two dams in the governorates of Sousse and Manouba. The two dams will be used to store water from the north and transfer it to treatment plants. Chaker said the loan, which includes a six-year grace period and 3 percent interest rate, will be repaid over 22 years. The second loan of 2 million dinars will be allocated to a pilot program in Beja to create jobs. Chaker signed the agreements with AFESD President and CEO Abdellatif Youssef al-Hamad. [TAP, 1/26/2016]
The developer of one of Saudi Arabia’s biggest industrial city projects says it will speed construction of infrastructure and broaden the range of industries it accommodates as part of efforts to diversify the economy. King Abdullah Economic City (KAEC), a state-backed business zone on the Red Sea coast near Jeddah, is part of the effort. The zone is being developed by Emaar the Economic City (EEC). Chief Executive of KAEC and EEC Fahd al-Rasheed said construction of infrastructure in the zone—including housing, commercial space, hotels and roads—would accelerate. While 40 projects have been developed since the government-backed zone was launched in 2005, 170 projects are planned for the next ten years, he said. Rasheed did not say where KAEC would find investors for the new sectors, but the government has said it is willing to spend billions of dollars to jump-start growth in new areas by awarding contracts and procuring services from companies. [Reuters, 1/26/2016]
Also of interest
Saudi races to attract investment, create jobs in overhaul | AP
Kuwait minister sees 2016-17 budget with $25/barrel oil price | Reuters
Bahrain’s Banagas signs deal with Japan’s JGC Corp for gas plant | Reuters
Algeria’s 2015 grain import volumes up 11.2 percent | Reuters
Egyptian-American investors’ alliance buys hotels in South Sinai, Red Sea | DNE
Minister says Turkey working to slash gas prices | Hurriyet
Israeli Defense Minister accuses Turkey of buying ISIS oil | BBC
Iraq says would consider deal on global oil cuts
Iraqi Finance Minister Hoshiyar Zebari has said that Iraq is willing to take part in emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC) in order to lift oil prices. OPEC said it was considering a request from Venezuela to hold a meeting. Venezuela has also called for a meeting of OPEC and non-OPEC nations in February. Zebari stressed that the policy “needs to be a collective one, otherwise it will not work.” However on Tuesday, Iraqi Oil Minister Adel Abdel Mahdi said Saudi Arabia and Russia were showing signs of flexibility. “We have seen some flexibility from the brothers in Saudi and a change in tone from Russia,” he said. Mahdi and Acting Kuwaiti Oil Minister Anas al-Saleh said they were willing to back an emergency OPEC meeting if an agenda were agreed in advance. Meanwhile, Zebari said there are “encouraging signs” that oil prices could rebound in the coming months on lower output from higher-cost US shale oil producers. [Reuters, 1/27/2016]
Dollar surges against Egyptian pound after CBE raises cap on deposits
The dollar surged against the Egyptian pound on the black market on Wednesday after the Central Bank of Egypt (CBE) raised a cap on foreign currency deposits. The CBE raised the cap on dollar-denominated deposits from $50,000 a month to $250,000 for essentials. “Speculators used the confusion caused by the central bank decision to push the pound lower … A huge wave of demand on dollars hit the market after raising the cap,” one trader said. “The market is also expecting the central bank to amend the official exchange rate of the pound,” he said. Before the CBE’s announcement, the black market rate for the dollar was around 8.62 pounds, far from the official rate of 7.7301 pounds per dollar. “There is no supply and there is higher demand after they raised the caps… We sold at this (8.75 pound) price and now we are unable to find dollars to buy,” another trader said. [Reuters, 1/27/2016]
Arab fund provides Tunisia with 332 million dinars in loans
Tunisia and the Arab Fund for Economic and Social Development (AFESD) signed two loan and technical support agreements worth 332 million dinars on Tuesday in Kuwait amid a visit by President Beji Caid Essebsi. Tunisian Finance Minister Slim Chaker said the first loan, worth 330 dinars, will be allocated to building two dams in the governorates of Sousse and Manouba. The two dams will be used to store water from the north and transfer it to treatment plants. Chaker said the loan, which includes a six-year grace period and 3 percent interest rate, will be repaid over 22 years. The second loan of 2 million dinars will be allocated to a pilot program in Beja to create jobs. Chaker signed the agreements with AFESD President and CEO Abdellatif Youssef al-Hamad. [TAP, 1/26/2016]
Saudi industrial city says to speed up, broaden investment
The developer of one of Saudi Arabia’s biggest industrial city projects says it will speed construction of infrastructure and broaden the range of industries it accommodates as part of efforts to diversify the economy. King Abdullah Economic City (KAEC), a state-backed business zone on the Red Sea coast near Jeddah, is part of the effort. The zone is being developed by Emaar the Economic City (EEC). Chief Executive of KAEC and EEC Fahd al-Rasheed said construction of infrastructure in the zone—including housing, commercial space, hotels and roads—would accelerate. While 40 projects have been developed since the government-backed zone was launched in 2005, 170 projects are planned for the next ten years, he said. Rasheed did not say where KAEC would find investors for the new sectors, but the government has said it is willing to spend billions of dollars to jump-start growth in new areas by awarding contracts and procuring services from companies. [Reuters, 1/26/2016]
Also of interest
Saudi races to attract investment, create jobs in overhaul | AP
Kuwait minister sees 2016-17 budget with $25/barrel oil price | Reuters
Bahrain’s Banagas signs deal with Japan’s JGC Corp for gas plant | Reuters
Algeria’s 2015 grain import volumes up 11.2 percent | Reuters
Egyptian-American investors’ alliance buys hotels in South Sinai, Red Sea | DNE
Minister says Turkey working to slash gas prices | Hurriyet
Israeli Defense Minister accuses Turkey of buying ISIS oil | BBC