• EGAS establishes “Modern Gas” Saudi Arabia: EGAS, with an 80% ownership, launches a subsidiary in Saudi Arabia with an initial capital ofUSD 530,000, signaling a strategic move for offshore expansion.
• Addressing Foreign Currency Shortage: Egypt aims to attract foreign currency inflows to mitigate a persistent shortage that has hindered local business activities, resulting in port congestion and delays in commodity payments.
• IMF Agreement to Alleviate Economic Challenges: Egypt secures an expanded $8 billion deal with the IMF, supplemented by a $1.2 billion loan for environmental sustainability, reflecting proactive measures to address economic difficulties.

Egypt’s Ministry of Petroleum announced that the Egyptian Natural Gas Holding Co. (EGAS) has initiated a subsidiary in Saudi Arabia, commencing operations with an initial capital of USD 530,000. 

This newly established venture, named “Modern Gas” Saudi Arabia, is predominantly owned by EGAS, holds an 80% stake. 

The move aligns with EGAS’s overarching strategy for offshore expansion, particularly targeting Gulf Cooperation Council (GCC) nations, intending to bolster foreign currency inflows into Egypt.

Egypt’s endeavor to attract foreign currency inflows is motivated by the imperative to alleviate a persistent shortage that has impeded local business activities, resulting in congestion at ports and payment delays for essential commodities. 

The severity of the shortage was accentuated since early 2022, prompting a series of gradual devaluations that have seen the Egyptian pound lose more than two-thirds of its value against the dollar. In recent developments, Egypt has secured a substantial $8 billion agreement with the International Monetary Fund (IMF), augmented by a $1.2 billion loan earmarked for environmental sustainability efforts.

With this, Egypt’s cumulative borrowing from the IMF surpasses $9 billion, reflecting the nation’s proactive measures to address its economic challenges.