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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.
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Opinion
Opinion: In the South Caucasus, connectivity should help build trust

Opinion: In the South Caucasus, connectivity should help build trust

All transport and communication lines in the South Caucasus remain closed. This failure can largely be attributed to the shift of connectivity from a concept intended to build trust to one tied up with security arrangements in the post-2020 era. "Instead of fostering closeness between the parties, concepts that were supposed to enhance cooperation were perceived as threats to territorial integrity and sovereignty", writes Shujaat Ahmadzada in this op-ed for commonspace.eu. "One should not overlook the fact that the November 10 statement and many of its components have been fundamentally and operationally Russia-centric, implying that the Armenian-Azerbaijani disagreements have to be settled around a third party – albeit not an ordinary one but one with hegemonic ambitions."

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German President Steinmeier visits Kazakhstan, holds talks with Kazakh President Tokayev

German President Steinmeier visits Kazakhstan, holds talks with Kazakh President Tokayev

The German President Frank-Walter Steinmeier has held talks with the Kazakh President Kassym-Jomart Tokayev during an official visit to Kazakhstan on 20 June. President Tokayev said that Frank-Walter Steinmeier's state visit "opens up good opportunities for further strengthening of comprehensive cooperation between Kazakhstan and Germany", according to an official read-out from the Presidential Administration.  "We have been anticipating your visit, which is regarded as a very important one in terms of giving additional boost to the development of cooperation between Kazakhstan and Germany. Germany is considered here in Kazakhstan as a key partner in Europe. And we will be doing our utmost in order to enhance our cooperation in a variety of domains," said President Tokayev. On his part, President Steinmeier said that Germany is "not only looking back to the past 30 years of diplomatic relations, we are looking to the presence of our especially but not only economic growing relations, you are mentioning that many German companies are heavily invested in the meanwhile, here in Kazakhstan, and, you know, beyond economic relations."
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Commentary
Commentary: Kazakhstan throws a lavish party in honour of multilateralism

Commentary: Kazakhstan throws a lavish party in honour of multilateralism

"Such big jamborees as the Astana International Forum happen often, and are – more often than not – considered as talking shops with limited results. They are usually a part of a branding exercise by countries that can afford them. Most participants forget about them the moment they leave, and the impact beyond that is often negligible," writes commonspace.eu in this commentary. However, "the Astana International Forum marks the emergence of a new Kazakhstan on the international stage. This year’s event was the first. Future forums will be a good gauge for how this new Kazakhstan is performing." Writing for a blog on Al Jazeera on the eve of the opening of the forum, Kazakh Deputy Prime Minister, Serik Zhumangarin described the Astana International Forum as “a global event aimed at renewing the culture of multilateralism”, and said that it was a part of Kazakhstan’s multi-vector foreign policy which seeks to engage countries in the north, south, east and west.
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Arab countries and China sign 30 deals worth $10bn at business conference in Riyadh

Arab countries and China sign 30 deals worth $10bn at business conference in Riyadh

Arab League countries and China have signed some 30 deals that total $10bn. This came on the first day of the 10th Arab-China Business Conference taking place in the Saudi capital Riyadh, on 11-12 June. The 30 investment agreements cover a wide range of areas, including technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare. According to the Saudi Investment Ministry, the Saudi government also signed deals with a number of Chinese entities in areas such as automotive research, development, manufacturing and sales, development of tourism and other apps, and production of rail wagons and wheels in Saudi Arabia. The biggest deal reached totalled $5.6bn, and was struck between Saudi Arabia's Investment Ministry and Human Horizons, a Chinese developer of autonomous driving technologies and manufacturer of electric cars. Saudi Arabia and Hong Kong-based Android developer Hibobi Technology Ltd signed a $266 million deal to develop tourism and other apps.
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First Astana International Forum taking place in Kazakhstan on 8-9 June

First Astana International Forum taking place in Kazakhstan on 8-9 June

The first Astana International Forum (AIF) is taking place in Kazakhstan on Thursday and Friday (8-9 June). An initiative of the Kazakh President Kassym-Jomart Tokayev, the Astana International Forum writes that it will "serve as a platform for high-level delegates from foreign governments, international organizations, businesses and academic circles to engage in dialogue and seek solutions to problems such as climate change, food shortages and energy security". Over 1,000 people will participate in the conference, which is running under the theme "Tackling Challenges Through Dialogue: Towards Cooperation, Development & Progress". There will be several keynote speeches and over 40 panel sessions, discussions, and side events. The decline of Russia in Central Asia as a result of its ongoing full-scale invasion of Ukraine has propelled the region into a new geopolitical reality. Especially on trade, difficulties trading via Russia as a result of sanctions have given Central Asia a renewed, critical position in facilitating east-west trade. To that end, Central Asian connectivity is also high on the agenda at the AIF.
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Oil prices rise as OPEC+ announces output cuts after Vienna meeting

Oil prices rise as OPEC+ announces output cuts after Vienna meeting

The group of oil producing countries, OPEC+, has pledged oil output cuts amid flagging global oil prices. Following the announcement made on Sunday (4 June) after a meeting of OPEC+ in Vienna, Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel in Asia trading on Monday. In accordance with the agreement struck, Saudi Arabia announced that they would cut daily barrel production from 10 million barrels per day (bpd) to 9 million bpd in July, as well as extending their volunatary cut in oil production of 500,000 bpd until December 2024. Russia's 2023 quota currently stands at around 10.5 million bpd, but in 2024 will reduce to approximately 9.3 million bpd, consisting of a reduction of 650,000 barrels per day as well as the voluntary cut of 500,000 bpd. Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel. Global oil prices spiked following Russia's full-scale invasion of Ukraine in February 2022. Since then, however, prices have fallen to pre-February 2022 levels. In an attempt to shore up global oil markets, OPEC+ have announced a couple of rounds of cuts in oil production. In October 2022, OPEC+ agreed to cut production by two million bpd, about 2% of global demand.
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Georgia and Qatar to sign agreement on innovation and technology cooperation after leaders meet in Doha

Georgia and Qatar to sign agreement on innovation and technology cooperation after leaders meet in Doha

Georgia and Qatar are to sign an agreement on innovation and technology cooperation, the Georgian Economy Minister Levan Davitashvili announced on Tuesday (23 May). The announcement came after the Georgian Prime Minister Irakli Garibashvili and the Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al Thani met in Doha on the sidelines of the Qatar Economic Forum that is running from 23-25 May. Davitashvili said that the Georgian delegation had meetings with a number of sectoral ministries in which they discussed opportunities for cooperation between Georgia and Qatar. Transport, logistics, and Georgia's key role in the Middle Corridor facilitating east-west trade were emphasised in the meetings, according to Davitashvili, who said that there is an increased interest in the country from "many states of the world, including Qatari investors", amid geopolitical challenges. The meetings also touched on trade and economic issues, as well as the the agreements on Mutual Support and Protection of Investments and on Economic, Trade and Technical Cooperation, signed last year between Georgia and Qatar.
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Kazakhstan to host EU-Central Asia Economic Forum on 18-19 May

Kazakhstan to host EU-Central Asia Economic Forum on 18-19 May

The Kazakh capital of Almaty will be hosting the 2nd European Union-Central Asia Economic Forum next week on 18-19 May. Building on the 1st EU-Central Asia Economic Forum that took place in Bishkek in 2021, next week's forum will "take stock of progress made so far and discuss ways forward on policy, programmes, and investment needed to develop a more integrated and interconnected regional market engagement". "The Forum will allow to strengthen sustainable connectivity and promote regulatory approximation in the economic area between the EU and Central Asia countries, which is so vital for a better business environment and a safe investment climate," a statement from the EU Central Asia Invest Programme says. "The Forum will gather high-level government officials, the European Investment Bank, the European Bank for Reconstruction and Development, other bilateral and international financial institutions, representatives of the private sector and members of civil society. It is organised in partnership with the Organisation for Economic Co-operation and Development," the statement adds. The forum will focus on three priority areas: a green and digital transition, a better business environment, and trade and connectivity. Next week's forum follows the 4th EU-Central Asia civil society forum that took place in the Uzbek capital of Tashkent in March.