Cabinet approves draft decree on Arab Common Electricity Market agreements
Updated 2/27/2025 7:16:00 AM
Arab Finance: The Egyptian cabinet has approved a draft presidential decree on the "General Agreement for the Establishment of the Arab Common Electricity Market" and the "Arab Common Electricity Market Agreement," as per a statement.
This step aligns with efforts to enhance Arab electricity interconnection, a major regional integration project.
The initiative establishes a structured framework for market governance, supported by infrastructure and technical coordination among Arab countries.
This framwork includes the memorandum of understanding (MoU) signed in April 2017 to establish the Arab Common Electricity Market, which is signed by 16 Arab nations so far.
The cabinet also approved a draft presidential decree on a financing agreement for a non-refundable grant between Egypt and Spain.
The grant will fund an initial feasibility study for extending Cairo Metro’s first line from New Marg to Shubra El-Kheima.
Another presidential decree was approved for a cooperation agreement between Egypt and the European Bank for Reconstruction and Development (EBRD) to establish a project account.
This initiative aims to accelerate private sector investments by streamlining project financing and expediting contracting processes.
The account will cut the approval time for feasibility study financing from one year to two months and allow contracts with international and national consultants within not more than six weeks.
The government granted a golden license to YADA EGYPT, an Egyptian joint stock company under the private free zone system, for a €70 million furniture manufacturing project in New Alamein City.
Spanning 208,000 square meters, the project will generate 6,350 direct and indirect jobs and is set for completion by the end of October 2026.
The factory will export 100% of its production, with a local component of at least 40%.
The project aligns with Egypt’s strategy to expand exports, enhance manufacturing, and attract foreign investment.
It also includes a partnership with Poland’s Padma, a key supplier for IKEA, to transfer technology and train Egyptian workers.
The furniture industry contributes 2.2% to Egypt’s gross domestic product (GDP), with market revenues expected to reach $463.2 million by the end of the first quarter (Q1) of 2025 and grow to $796.1 million by 2029.
Another golden license was granted to Chen Sheng Industry Company for a $145 million project to manufacture ductile iron pipes in Ain Sokhna’s special economic zone.
Covering 270,000 square meters, the project is set to begin commercial operations in March 2025 and will employ 700 workers.
The company aims to export at least 80% of its production and introduce advanced industrial robotics in manufacturing.
The project supports Egypt’s strategy to strengthen local industries and attract foreign investment.
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