Modern Gas company, affiliated with Egypt’s Ministry of Petroleum and Mineral Resources, has set up a new subsidiary in Saudi Arabia with a seed capital of SAR2 million ($533,270), according to a statement by the ministry.
Read more: Egypt oil and gas sector gets boost with new $1.4 billion investment
The new firm, dubbed Modern Gas Saudi Arabia, is 30 percent owned by Modern Gas, with Fajr Egypt owning a 30 percent stake in the company, while Alexandria Petroleum Maintenance Co (Petromaint) and the Saudi Baseera Group holding a 20 percent stake each.
The establishment of the new company is part of the petroleum ministry’s strategy and Modern Gas’ plan to expand abroad, especially in the Gulf countries.
Moreover, the company succeeded in registering and licensing its branch in the UAE as a main contractor for Abu Dhabi National Oil Company (ADNOC).
In terms of key indicators, Chairman Mohamed Kandil said during the company’s general assembly that Modern Gas generated revenues of EGP2.6 billion ($55.2 million) in 2023. Moreover, he added that the company serves 1.6 million customers across nine governorates in Egypt.
Egypt’s agreement with the IMF
Egypt is actively seeking to attract foreign currency inflows to address the shortage of foreign currency that has hindered local business activities and caused delays in payments for commodities.
Recently, Egypt successfully finalized a comprehensive agreement with the International Monetary Fund (IMF) to secure additional funds. This expanded deal amounts to $8 billion, and an additional $1.2 billion loan has been obtained specifically for environmental sustainability initiatives. With this development, Egypt’s total borrowing from the IMF exceeds $9 billion.
Egypt also managed to secure a substantial investment deal worth $35 billion with the Emirati sovereign fund ADQ. This investment will primarily focus on the development of a peninsula located along Egypt’s Mediterranean coast, as well as other significant projects. The agreement plays a crucial role in alleviating the foreign currency crunch that Egypt has been facing.
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