The CBE (Central Bank of Egypt) reported that remittances from Egyptians abroad remained essentially flat in 7M22, rising by just 0.2% YoY. July 2022 witnessed an uncharacteristic decline of 14.7% YoY. Possible reasons for this drop include expectations of an imminent devaluation in the EGP, higher inflation in the countries in which the expatriates reside, and the end of the 18% CDs (Certificates of Deposit) that were on offer by Egyptian banks. Note that remittances increased by 1.6% in FY21/22 to reach USD31.9bn, which is the highest amount ever recorded. (Sources: Zawya (English) (Arabic), Egypt Today (English), Arab News (English), al-Maal, Hapi Journal, Aswaq Information, al-Ahram, al-Masry al-Youm, al-Shurouk, al-Watan, al-Dustour, Akhbar al-Youm, Masrawy, Middle East News Agency, al-Arabiya, al-Ain)

CAPMAS (The Center for Public Mobilization & Statistics) reported external trade data for June 2022, showing that Egypt’s trade deficit decreased by 12.4% YoY to USD3.2bn. Imports fell 7.7% YoY, while exports dipped 3.3% YoY. For exports, there were significant increases in petroleum & natural gas & LNG products in particular, as well as rises in crude oil and ready-made clothing. On the other hand, there were decreases in the exports of fertilizers, flat-rolled iron products, and food preparations. As for imports, there were drops in soybeans, pharmaceuticals, and raw iron & steel, while increases occurred in wheat, petroleum products, corn, and crude oil. For 1H22, Egypt’s total external trade increased 18.5% YoY to reach USD74.4bn. During that period, there was a 12.9% YoY drop in the trade deficit. Exports soared by 36% YoY to reach USD27.4bn, while imports increased by 10.2% YoY to USD47.0bn. (Sources: Zawya (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Sada el-Balad (English) (Arabic), Forbes Middle East (English), al-Sharq al-Awsat (English) (Arabic), al-Maal, Mubasher, Amwal al-Ghad (1) (2) (3), al-Borsa, Capital News, Aswaq Information, al-Youm al-Saabe, al-Watan, Akhbar al-Youm, Masrawy, Sky News Arabia, al-Khaleej)

The EBRD (European Bank for Reconstruction & Development) will provide up to USD1.3bn to Egypt to assist in its transformation to renewable energy sources. The EBRD will pledge up to USD1bn for the development of renewable energy sources while assisting in the decommissioning of 5GW of natural gas power plants that are deemed inefficient. The Bank will also raise sovereign financing of up to USD300mn for a number of activities related to the green transformation, such as stabilizing the power grid, developing local renewable supply chains, and increasing battery storage. (Sources: Zawya (English) (Arabic), al-Sharq al-Awsat (English), al-Arabiya (English) (Arabic), MenaFN (English), al-Maal, al-Ahram, al-Dustour, Sky News Arabia, Euronews

CAPMAS (The Center for Public Mobilization & Statistics) released inflation figures, which showed that headline (urban) inflation rose to 14.6% in August 2022 versus 13.6% in July 2022, partly due to unfavourable base effects. One of the largest annual increases was in the food & beverage component, which went up by over 23% YoY. Alternatively, on a monthly basis, food & beverage prices were stable and relatively balanced, with vegetables prices rising and fruits, meat, and poultry all declining. The increase on a monthly basis was 0.9% MoM compared to a 1.3% MoM rise in July 2022, showing signs of deceleration in inflation growth. Overall (nationwide) inflation registered 15.3% in August 2022 compared to 14.6% in July 2022. On a monthly basis, the increase was 0.5% MoM. The CBE’s (Central Bank of Egypt) core inflation measure showed a rate of 16.7% in August 2022 versus 15.6% in July 2022. In a monthly trend similar to CAPMAS’s figures, on monthly basis the CBE’s inflation measure was up only 0.6% MoM in August 2022 versus 1.5% MoM in July 2022. (Sources: Reuters (English), Zawya (English), al-Ahram (English) (Arabic), Egypt Today (English), Arab News (English), al-Maal (1) (2), Mubasher, al-Borsa, Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk (1) (2), al-Dustour, Masrawy (1) (2), Middle East News Agency, al-Sharq Business, al-Arabiya, Sky News Arabia, RT)

Egypt’s PMI has risen from 46.4 in July 2022 to 47.6 in August 2022. This is the highest reading since February 2022 and the second consecutive increase in the PMI score, which indicates a moderation in the rate of business activity contraction. Input costs rose at a slower pace than the previous month, allowing for a softer increase in output prices. The decreases in new orders and output were also at a gentler rate. Rises in employment levels were the fastest since October 2019. Despite that, business sentiment was still low due to multiple factors such as a slowing global economy, persistence of the Russia-Ukraine conflict, a weakening foreign currency exchange rate, monetary policy that is difficult to forecast, and elevated risks for the economy. (Sources: S&P Global (English) (Arabic), Reuters (English), Zawya (English) (Arabic), al-Ahram (English), Egypt Today (English), Amwal al-Ghad, Hapi Journal, Economy Plus, Capital News, Masrawy, CNBC Arabia, al-Arabiya, Sky News Arabia)

ECBM (The Export Council for Building Materials, Refractory, and Metallurgical Industries) reported that exports of Egyptian copper surged by 47% YoY during 1H22 to reach USD218mn. The largest receiver of these exports was Saudi Arabia, representing 80% of the total, followed by Algeria and Lebanon. (Sources: Zawya (English), Sada el Balad (English), Amwal al-Ghad, al-Borsa)

The Minister of Finance said that the Egyptian economy grew 6.6% in FY21/22, the highest growth rate since 2008, and far exceeding the average growth rate of 3.2% for emerging economies across the world. The Minister added that for the state budget, the deficit dropped to 6.1% of GDP, down from 6.8% in FY20/21 and 13% in FY12/13. The government expects this to decline further to 5.6% in FY22/23 and 5.0% in FY23/24. The current deficit-to-GDP ratio is below the average for emerging economies. A primary surplus was recorded for the fifth year in a row, this year coming in at 1.3% of GDP. The primary surplus is expected to rise to 1.6% in FY22/23. Budget revenues grew by 19.6%, while expenses grew by 14.8%. Remittances reached a new record level of USD32.2bn, and the Suez Canal also made a record USD7bn in revenue. Spending on education increased by 23%, and on health by 21%. Unemployment dropped to 7.2% by June 2022. The Minister continued, stating that the debt-to-GDP ratio came down significantly, reaching 87.2% from 103% at the end of FY16/17, and lower than the global average of 99%. The government is targeting a debt-to-GDP ratio of 82.5% in FY22/23, then continuing to decrease all the way to 75.0% by 2026. The exception to this trend was FY21/22, where the ratio rose to 87.4% due to the currency devaluations that occurred. The drop in the debt-to-GDP ratio in Egypt during 2016-22 contrasts with an average rise in the same ratio for emerging markets across the world. Egypt’s external debt remained stable at 19.2% of GDP, according to the Minister. (Sources: Reuters (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), Business Today (English), al-Sharq al-Awsat (English), al-Maal, Mubasher, Amwal al-Ghad, al-Youm al-Saabe, al-Masry al-Youm, Sada el-Balad, Middle East News Agency, Euronews, , RT, Xinhua)

The Prime Minister witnessed the signing of 7 new MoUs (Memorandum of Understanding) for the establishment of green hydrogen production industrial complexes in Ain Sokhna, part of the SCZone (Suez Canal Economic Zone). The agreements were signed with leading specialized international companies, including: - Indian ACME (investing USD13bn to produce 2.2mn tons/yr of green hydrogen) - British Globeleq (investing USD11bn to produce 2mn tons/yr of green hydrogen) - Saudi al-Fanar (investing USD4bn to produce 500k tons/yr of green fuel) - UAE’s Alcazar Energy (investing USD2bn to produce 230k tons/yr of green fuel) - British Actis (investing USD1.5bn to produce 200k tons/yr of green fuel) - American Egypt-based Mediterranean Energy Partners MEP (investing USD250mn to produce 120k tons/yr of green ammonia) - UAE’s K & K (investing an undisclosed amount to produce 230k tons/yr of green hydrogen) Previously, there were deals also signed with Norwegian Scatec, Fortescue Future Industries, Maersk, French EDF, French Total Energies, Belgian Demi, and UAE’s EMEA. This flurry of activity comes as part of the Egyptian government’s expedited policy direction to become a regional and global hub for green hydrogen production, with the agreements set to be activated during the upcoming COP global climate summit hosted in the Red Sea coastal city of Sharm el-Sheikh. Egypt is pioneering the region’s drive towards the green transition with ambitious environmental and climate preservation goals. (Sources: SCZone (English), State Information Service, Reuters (English), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), Renewables Now (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad, al-Borsa, Economy Plus, al-Youm al-Saabe, al-Shurouk, Sada el-Balad, al-Taqa, al-Sharq Business, CNBC Arabia, al-Ain, al-Arabiya, Sky News Arabia, Xinhua)

CAPMAS (The Center for Public Mobilization & Statistics) released data showing that Egypt’s cotton exports more than doubled in 2021 from the year before. By the end of the crop season in August 2021, Egyptian cotton exports had risen 102% compared to the previous season. The main reason for this large spike in exports was a surge in local cotton production, which increased by 33% in 2021. The total land area dedicated to planting cotton also increased by 20% in the same period. India imported most of Egypt’s exported cotton, receiving 87% of the total. On the other hand, domestic consumption of cotton dropped 31% in 2021. As part of the government’s domestic trade reforms, Egypt has introduced a new system for farmers to sell their crops, which involves auctions that lead to selling prices that are in line international prices. (Sources: al-Ahram (English), Egypt Today (English), Sada el-Balad (English) (Arabic), Egyptian Gazette (English), al-Maal, Amwal al-Ghad, Economy Plus, al-Youm al-Saabe, Akhbar al-Youm, Masrawy)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians working abroad increased by 1.6% during FY21/22, reaching USD31.9bn. During 4Q21/22, remittances rose by 3% YoY to register USD8.3bn. A large proportion of these remittances generally come from Egyptians working in the GCC (Gulf Cooperation Council) countries. Remittances are one of the key sources of foreign currency for Egypt. (Sources: Zawya (English) (Arabic), al-Ahram (English) (Arabic), Daily News Egypt (English), Business Today Egypt (English), Egypt Independent (English), Egyptian Gazette (English), Sada el-Balad (English) (Arabic), al-Sharq al-Awsat (English) (Arabic), Xinhua (English) (Arabic), al-Maal, Amwal al-Ghad, al-Borsa, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Shurouk, Akhbar al-Youm, Masrawy, Middle East News Agency, al-Sharq Business, al-Arabiya, RT)

CAPMAS (The Center for Public Mobilization & Statistics) reported that total investments made by the UAE in Egypt shot up by over 169% YoY to USD1.9bn during 1H21/22. Total trade between the two countries rose by over 9% YoY during 1Q22 to reach USD1.2bn. Egyptian exports to the UAE surged 70% YoY to USD577mn, while imports dropped by 19% YoY to USD643mn. During 2021, total trade between Egypt and the UAE registered USD3.6bn. On a related note, remittances from Egyptians working in the UAE reached USD3.5bn in FY21/22. (Sources: Zawya (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Sada el-Balad (English), Business Today Egypt (English), al-Arabiya (English) (Arabic), Arab News (English), The National (English), Gulf Business (English), al-Maal, Mubasher, Amwal al-Ghad, Hapi Journal, Economy Plus, al-Aalam al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, al-Watan, al-Dustour, al-Shurouk, Akhbar al-Youm, al-Ain, al-Ittihad, al-Sharq Business, CNBC Arabia, Sky News Arabia)

The CBE (Central Bank of Egypt) has opted to keep interest rates on hold in its recent MPC (Monetary Policy Committee) meeting. The rates remain unchanged, with the overnight deposit rate at 11.25%, overnight lending rate at 12.25%, main operation rate at 11.75%, and discount rate at 11.75%. The decision is mainly based on seemingly contained domestic inflation, which has been fluctuating within a tight range for the past three months. Unemployment was also stable during 2Q22 at 7.2%. Furthermore, there has been a relative slowdown in the global economy and geopolitical risks in South East Asia, on top of the ongoing Russia-Ukraine conflict. Also, global commodities prices have been stable or declining recently. This hold on rates will provide enough time to assess the impact of recent foreign exchange adjustments and past rate hikes. (Sources: Central Bank of Egypt, Reuters (English), Zawya (English) (Arabic), Amwal al-Ghad (English) (Arabic), al-Ahram (English), Egypt Today (English), Business Today Egypt (English), Sada el-Balad (English) (Arabic), Forbes Middle East (English), al-Sharq al-Awsat (English), The National (English), al-Maal, Mubasher, Hapi Journal, al-Borsa, al-Youm al-Saabe, al-Shurouk, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, Sky News Arabia, CNN, Euronews, RT, Xinhua)

DP World’s subsidiary DP World-Sokhna has agreed to establish a logistics park in Sokhna. The location is within the SCZone (Suez Canal Economic Zone), and aims to serve as a port logistics service zone. The project’s first phase, with investments of USD50mn, is expected to be operational by the end of 2023 on an area of 300k m2. When completed, the project will have involved USD80mn of investments. The project is expected to add 600 new jobs, as well as many more indirectly. The purpose of the zone is to act as a hub for a number of activities including logistics, trading & distribution, light industrial, and other value-adding activities. (Sources: SCZone (English), Zawya (English), al-Ahram (English) (Arabic), Egyptian Gazette (English), Transport & Logistics Middle East (English), al-Maal, Economy Plus, al-Dustour, Sada el-Balad, Masrawy, al-Khaleej, al-Sharq Business, al-Arabiya, Xinhua)

CAPMAS (The Central Agency for Public Mobilization & Statistics) released foreign trade data for May 2022. The figures indicated that Egypt’s trade deficit decreased by an impressive 36% YoY in May 2022, dropping to USD2.6bn. Exports increased by over 18% YoY, while imports went up by 11%. Exports rose on increases in petroleum and LNG products, up 44%, crude oil up 31%, fertilizers up 34%, and ready-made garments up 48%. As for imports, their rise was driven by crude oil, up 9%, petroleum products up 24%, plastics in primary form up 18%, and medicines & pharmaceuticals up 17%. (Sources: Zawya (English) (Arabic), al-Ahram (English) (Arabic), Daily News Egypt (English), Business Today Egypt (English), al-Maal, Amwal al-Ghad, Economy Plus, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, Masrawy, CNBC Arabia, Forbes Middle East, al-Arabiya, Sky News Arabia, Euronews)

The SCA (Suez Canal Authority) has signed an agreement with the global shipping giant Maersk to build a new USD500mn berth at the Suez Canal Container Terminal in East Port Said. The signing of the deal was witnessed by the head of the SCA during his foreign visit to the Netherlands and Denmark. The new berth will be 1km long, with the deal including increasing the number of cranes to 30. These will be powered by electricity as opposed to diesel, contributing towards the terminal’s target of becoming net-zero by 2030. Part of the deal’s goals is to transform the Suez Canal Container Terminal into a smart terminal. The greater goal is to establish the terminal as a global hub in the Eastern & Southern Mediterranean region for container handling. (Sources: SCA (English), Port Technology (English), Marine Insight (English), al-Ahram, al-Masry al-Youm, al-Dustour, Sada el-Balad, MenaFN)

EY (Ernst & Young) issued a report detailing M&A (mergers & acquisitions) activity in the MENA region in 1H22. The data revealed that Egypt was the second largest target country for M&A deals based on deal values, which totalled USD3.2bn over 65 deals. The UAE led the region with 105 deals worth USD14.2bn. Furthermore, Egypt’s inbound deal activity was tripled YoY in 1H22, pointing to Egypt’s rising attractiveness as an M&A destination, partly due to encouraging government reforms and initiatives. In total, there were 359 deals in the MENA region worth a combined USD42.6bn. The top industries in the MENA region by deal value were transportation, consumer goods, telecom, real estate, and power & utilities. (Sources: Ernst & Young (English), Zawya (English), Gulf Business (English), Khaleej Times (English), al-Maal, Mubasher, Amwal al-Ghad, Hapi Journal, Masrawy, al-Sharq Business, Forbes Middle East)

CAPMAS (The Center for Public Mobilization & Statistics) released inflation data for July 2022. The figures show that headline (urban) inflation climbed to 13.6% versus 13.2% in June 2022. Driving the increase was a significant increase in the transportation component as well as some food items, although vegetable prices declined considerably. The rise in transportation costs comes in light of the national fuel pricing committee’s recent decision to raise gasoline prices by 2.3% this quarter. Diesel prices were also raised by the committee. On a monthly basis, inflation went up by 1.3% MoM in July 2022. Overall (nationwide) inflation registered 14.6% in July 2022, down marginally from 14.7% in June 2022. Monthly, the increase was 0.9% MoM. As for the CBE’s (Central Bank of Egypt) measurement of core inflation, that came in at 15.6% in July 2022, up from 14.6% in June 2022. On a monthly basis, the rise was 1.5% MoM. (Sources: Reuters (English), Zawya (English) (Arabic), Daily News Egypt (English), Egypt Today (English), al-Sharq al-Awsat (English) (Arabic), al-Maal, Amwal al-Ghad [1] [2], al-Borsa, Hapi Journal, Economy Plus, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia [1] [2], al-Arabiya, Sky News Arabia [1] [2], RT

GOEIC (The General Organization for Export & Import Control) reported that Egypt’s non-oil exports jumped 20% YoY in 1H22 to reach USD19.4bn. The fertilizers & chemicals sector represented the biggest share of these exports at 22% of the total, and grew by 35% YoY in 1H22. This was followed by the building materials sector’s exports with a 19% share and an increase of 20%. Almost all other export sectors also witnessed increases. (Sources: Zawya (English) (Arabic), Mubasher (English), Daily News Egypt (English), Business Today Egypt (English), Amwal al-Ghad, al-Borsa, Economy Plus, Sada el-Balad, Masrawy, CNBC Arabia, al-Ain)

Saudi Arabia’s PIF (Public Investment Fund), the nation’s sovereign wealth fund, has set up an investment company in Egypt. The company is called SEIC (The Saudi Egyptian Investment Company), and is eyeing investments in promising sectors in Egypt such as infrastructure, food & agriculture, health, pharmaceuticals, manufacturing, financial services, and real estate development. The company will also will work to improve access to investments in Egypt for the PIF as well as the Saudi private sector. Note that current Saudi investments in Egypt amount to over USD32bn, and the two countries recently signed 14 agreements to invest a further USD7.7bn, with that figure potentially rising to USD30bn. (Sources: State Information Service (English), BNN Bloomberg (English), al-Ahram (English), Zawya (English) (Arabic), Saudi Gazette (English), al-Sharq al-Awsat (English) (Arabic), Arab News (English), Gulf News (English), al-Maal, Amwal al-Ghad, al-Borsa, Economy Plus, al-Shurouk, Akhbar al-Youm, Masrawy, al-Sharq Business, al-Arabiya, Sky News Arabia, al-Riyadh, al-Ain, al-Roeya, Xinhua, Sputnik, RT)

The CBE (Central Bank of Egypt) released the balance of payment figures for 3Q21/22. The numbers show the current account deficit widening marginally to USD5.8bn from USD5.7bn in 3Q20/21. The key driver of this increase is the Russia-Ukraine conflict which, among other things, resulted in massive portfolio outflows. Another consequence of the conflict was a small increase in the trade deficit caused by rising commodity prices, with the deficit increasing from USD11.4bn in 3Q20/21 to USD11.8bn in 3Q21/22. Countering this was a steep increase in net FDI (foreign direct investment), which shot up from USD1.43bn in 3Q20/21 to USD4.08bn in 3Q21/22. Also, tourism rebounded considerably, with tourism receipts rising to USD2.38bn from USD1.32bn in 3Q20/21. Remittances from Egyptians abroad also increased to USD8.05bn from USD7.85bn in 3Q20/21. On top of that, Suez Canal revenues rose as well, from USD1.45bn in 3Q20/21 to USD1.71bn. As for 9M21/22, the overall balance of payments recorded a deficit of USD7.3bn versus USD1.8bn in 9M20/21. The current account deficit increased marginally in the same period, rising to USD13.6bn from USD13.3bn in 9M20/21. The trade deficit was highly affected by rising commodities prices, rising 23% YoY in 9M21/22 to reach USD37.7bn. On the other hand, the oil trade surplus rose dramatically to reach USD4.1bn versus only USD175mn in 9M20/21, mainly due to a large increase in natural gas exports. The services surplus also increased significantly to reach USD7.9bn compared to USD3.1bn in 9M20/21 due to increases in revenue from tourism and the Suez Canal. On the other hand, the capital & financial account saw net inflows decrease from USD17.1bn in 9M20/21 to USD10.8bn in 9M21/22. Despite all that, net international reserves remained almost stable, down to USD33.1bn in July 2022 from USD33.4bn in June 2022. (Sources: Reuters (English), Zawya (English) (Arabic), al-Ahram (English), Daily News Egypt (English), Egypt Today (English), Sada el-Balad (English), al-Arabiya (English), al-Maal, Mubasher, Amwal al-Ghad, al-Borsa, al-Masry al-Youm, al-Shurouk, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, RT)

Egypt’s PMI for July 2022 has shown notable improvement, rising to 46.4 from 45.2 in June 2022. The survey showed that output and new orders fell at a slower pace, while input and output prices also rose at a more moderate rate. Furthermore, employment levels showed stability. Businesses saw a softening in commodities prices, which alleviated inflationary pressures and led to fewer companies experiencing higher input costs. Yet, demand has still not picked up, resulting in a negative outlook from businesses for the coming year, as well as low output forecasts. While the overall picture of business conditions is still in a phase of decline, the lowest point might have passed. (Sources: S&P Global (English) (Arabic), Reuters (English), Zawya (English) (Arabic), al-Ahram (English), Egypt Today (English), Business Today Egypt (English), Sada el-Balad (English), Mubasher, Amwal al-Ghad, al-Borsa, Hapi Journal, Economy Plus, al-Masry al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya)

The SCA’s (Suez Canal Authority) Chairman announced that the Canal has achieved its highest monthly revenue on record, reaching USD704mn in July 2022, an increase of over 32% YoY. This was driven by record net tonnage and transit rates. On the 29th of July, 2022, the Suez Canal registered its highest ever daily revenue, at USD31.8mn. At an earlier date, the SCA had announced that revenues for FY21/22 were up about 21%, recording USD7bn. (Sources: State Information Service, Reuters (English), Zawya (English) (Arabic), Business Today Egypt (English), al-Ahram (English) (Arabic), Egypt Independent (English), Sada el-Balad (English) (Arabic), Forbes, al-Sharq al-Awsat (English) (Arabic), Arab News (English), al-Maal, Amwal al-Ghad, Mubasher, Hapi Journal, al-Youm al-Saabe, al-Watan, al-Dustour, Akhbar al-Youm, Masrawy, Middle East News Agency, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Taqa, Euronews)

The CBE (Central Bank of Egypt) reported that net FDI (Foreign Direct Investment) has shot up by 183% YoY in 1Q22, reaching USD4.1bn. This is the highest level for net FDI since 1Q18. During 9M21/22, net FDI rose by 53% YoY to USD7.3bn. The Minister of Finance had said earlier that Egypt is targeting USD10bn/year in FDI. A recent report by UNCTAD (U.N. Conference on Trade & Development) ranked Egypt as the second-highest recipient of FDI in Africa in 2021 and the top recipient in 2020. Also, the IDSC (Egyptian Cabinet’s Information & Decision Support Center) revealed that Egypt was the third most popular Arab country for FDI in 2021. They said that Egypt represented over 16% of all FDI inflows in the Arab region in 2021. (Sources: State Information Service (English), al-Ahram (English), Egypt Today (English) [1] [2], Business Today Egypt (English) [1] [2], Sada el-Balad (English) [1] [2], Mubasher, al-Borsa [1] [2], Amwal al-Ghad, Economy Plus, al-Youm al-Saabe, al-Shurouk, al-Watan, Akhbar al-Youm, Masrawy [1] [2], CNBC Arabia, Xinhua)

The Egyptian Prime Minister and the Indian Ambassador to Egypt witnessed the signing of an MoU (Memorandum of Understanding) between Egyptian authorities and Indian ReNew Power to build a green hydrogen industrial complex in the SC Zone (Suez Canal Economic Zone). The project will involve total investments of USD8bn and is slated to produce 220,000 tons/year of green hydrogen. The project will be implemented over two phases. The first phase will cost USD0.7bn to build over the years 2023-25 and targets the production of 20,000 tons/year of green hydrogen and 100,000 tons/year of green ammonia. The second, bigger phase will cost USD7.1bn and will be built over the years 2025-29, targeting the production of an additional 200,000 tons/year of green hydrogen and 1mn tons/year of green ammonia. This will bring the total production of the facility to 220,000 tons/year of green hydrogen and 1.1mn tons/year of green ammonia by the year 2029. It is worthy to note that the SC Zone has signed 8 MoUs so far in the field of green fuel with global leaders such as the Danish Maersk, Norwegian Scatec, French EDF Renewables, and German H2. Egypt is also hosting the next global climate conference, COP 27, in November 2022 in the city of Sharm el-Sheikh. All this comes as part of Egypt’s accelerated green transition and environmentally responsible policy direction. (Sources: SC Zone (English) (Arabic), Reuters (English), Egypt Today (English), Sada el-Balad (English) (Arabic), al-Maal, Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, Akhbar al-Youm, Middle East News Agency, al-Sharq Business, al-Arabiya, Sky News Arabia, al-Ain, Xinhua, Sputnik, RT)

The Egyptian Cabinet’s IDSC (Information & Decision Support Center) reported on relevant highlights from the Global Energy Monitor’s recent report, indicating that Egypt is the top producer of electricity from renewable sources among all Arab countries. Egypt currently has 3.5GW of solar and wind power generation capacity. Following Egypt was the UAE with 2.6GW, Morocco with 1.9GW, Jordan with 1.7GW, and Saudi Arabia with 0.8GW. Egypt targets 6.8GW of solar and wind energy generation capacity by the year 2024, and has an ultimate goal of generating 42% of its total electricity needs from renewable sources by 2035. Egypt has been a regional pioneer in the field of renewable energy generation, building wind plants since the year 2000, and is home to Benban Solar Park, one of the world’s largest solar energy generation projects. Egypt’s plan is to become a regional energy hub, especially in renewable and transitional energy. Numerous new renewables projects are in the pipeline, including a green hydrogen plant in Ain Sukhna with a capacity of 100MW in conjunction with the Norwegian Scatec. (Sources: State Information Service (English), Sada el-Balad (English), Egypt Today (English), al-Ahram (English) (Arabic), al-Youm al-Saabe, al-Shurouk, Akhbar al-Youm, Masrawy, Middle East News Agency)

The Minister of Finance revealed in an official statement that the UHIS (Universal Healthcare Insurance System) will now be fully implemented nationwide within 10 years, down from the previous 15-year timetable. The system will provide integrated, comprehensive medical insurance coverage for all Egyptian citizens. The system is planned to be implemented in six phases. The implementation process is currently in the first phase, which will be completed before the end of FY22/23. Already covered in this phase are the Port Said, Luxor, and Ismailia governorates, with the Suez, Aswan, and South Sinai governorates remaining. Beneficiaries of the system can choose where to receive medical services out of all the medical facilities participating in the system. The insurance coverage includes over 3,000 health services. (Sources: State Information Service (English), Ministry of Finance, al-Ahram (English) (Arabic), Mubasher, Amwal al-Ghad, Hapi Journal, al-Borsa, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Masrawy)

Government Targets 5.5% Growth in FY22/23 The Minister of Planning & Economic Development said in a press statement that the government plans to achieve 5.5% GDP growth in FY22/23. She added that total investments are expected to amount to EGP1.4tn, compared to EGP1.2tn in FY21/22. The figures announced represent highlights from the Ministry’s annual report on the data and foundations of the government’s economic and social plan for FY22/23. (Sources: Ministry of Planning & Economic Development (English) (Arabic), Sada el-Balad (English), al-Borsa, al-Ahram, al-Youm al-Saabe, al-Dustour)

A recent poll of 19 economists conducted by Reuters found they expect Egypt’s economy to grow at a steady pace over the next three years. Also, inflation is expected to decline gradually and the Egyptian Pound will probably lose some value in the short-term horizon. The median GDP growth rate predicted by economists is 5.5% for FY22/23, which is up from a 5.2% forecast three months ago. In FY23/24, growth is expected to be 4.9%, and then to accelerate again to 5.4% in FY24/25. Note that the Egyptian economy grew at an impressive rate of 6.2% in FY21/22. Economists also predicted that inflation will decelerate to 10.0% in FY22/23, rise to 10.4% in FY23/24, and then drop to 8.0% in FY24/25. (Sources: Reuters (English), al-Sharq al-Awsat (English) (Arabic), al-Maal, Amwal al-Ghad, al-Youm al-Saabe, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, al-Arabiya, Sky News Arabia)

Fitch Solutions has upgraded Egypt’s GDP growth forecast for 2022 by 0.2% to become 6.2%. This new projection appeared in its recent report titled “MENA Key Themes 2022: Mid-Year Review.” The report predicts that the EGP/USD exchange rate will sit at 19.11 by the end of 2022. Fitch also see inflation in Egypt in 2022 averaging 13.2%. Overall, the report holds a positive outlook on the MENA region, with oil-exporting countries naturally witnessing the highest growth and prosperity due to higher oil prices. (Sources: Fitch Solutions (English), al-Ahram (English))

CAPMAS (The Center for Public Mobilization & Statistics) released inflation figures for June 2022, showing that headline (urban) inflation receded in June 2022 to 13.2%, down from 13.5% in May 2022. This was the first decline in inflation in the past seven months. On a monthly basis, inflation retreated 0.1% MoM in June 2022 versus an increase of 1.1% MoM in May 2022. The main driver behind the drop in monthly inflation was a decrease in the prices of the food and beverage category. Overall (nationwide) inflation also dropped to 14.7% in June 2022, compared to 15.3% in May 2022. Also, the CBE (Central Bank of Egypt) released core inflation figures, which exclude volatile items such as food and energy. Core inflation rose to 14.6% in June 2022 versus 13.3% in May 2022. On a monthly basis, core inflation increased 1.2% MoM in June 2022, a decline from the 1.6% MoM registered in May 2022. (Sources: Reuters (English), al-Ahram (English) (Arabic), Zawya (English) (Arabic), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, Masrawy, Middle East News Agency, al-Sharq Business, CNBC Arabia, al-Arabiya, Sky News Arabia, al-Sharq al-Awsat, al-Ain)

S&P Global reported PMI data for June 2022, showing that Egypt’s PMI dropped to 45.2 from 47.0 in May 2022. The survey reported a considerable decline in new business, mainly due to rising inflation and tighter monetary policy. The CBE’s (Central Bank of Egypt) recent devaluation of the Egyptian Pound made matters more challenging for businesses as it raised the cost of importing goods. There were also difficulties reported with securing raw materials, and with a sizeable drop in output, meant that businesses considerably decreased their purchases. With hopes dashed for an imminent recovery in demand, businesses raised their selling prices significantly in order to pass on to customers a bigger proportion of their increasing costs than they did before. Despite the contracting business activity, the sentiment reported by businesses was at a five-month high, with managers hopeful that a recovery in business activity will occur within the coming twelve months. (Sources: S&P Global (English) (Arabic), Nasdaq (English), Mubasher (English), Zawya (English) (Arabic), al-Ahram (English), Egypt Today (English), Sada el-Balad (English), The National (English), Gulf News (English), al-Maal, Amwal al-Ghad, Hapi Journal, Masrawy, al-Arabiya, al-Sharq al-Awsat, Sky News Arabia)

CAPMAS (The Central Agency for Public Mobilization & Statistics) released external trade data for April 2022, showing that Egypt’s trade deficit dropped by a stunning 53% YoY to sit at USD1.7bn. Exports shot up by over 54% YoY, mainly attributable to increases in outbound shipments of petroleum products, crude oil, fertilizers, and ready-made garments. Imports went up by only 2.7%, with increases witnessed in petroleum products, wheat, pharmaceuticals, and chemicals. (Sources: Daily News Egypt (English), Egypt Today (English), Amwal al-Ghad, Zawya, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad, Masrawy, CNBC Arabia, al-Arabiya)

The Minister of Planning & Economic Development revealed that the Egyptian economy achieved an impressive 6.2% GDP growth rate in FY21/22. She said that all sectors in the economy recorded positive growth. The performance of the economy came in stronger than expected during 9M21/22, while the Russia-Ukraine conflict’s repercussions weighed on 4Q21/22. (Sources: Reuters (English), Zawya (English), The National (English), al-Dustour, CNBC Arabia)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians living abroad increased 7.7% YoY during 4M22 to reach USD11.1bn. April 2022 recorded a stunning growth in remittances of over 24% YoY to reach USD3.1bn. March 2022 also witnessed a massive increase of 13% YoY to register USD3.3bn. February 2022 remittances had also skyrocketed by over 44% YoY. (Sources: Egypt Today (English), Sada el-Balad (English) (Arabic), al-Maal, Amwal al-Ghad, Zawya, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, al-Arabiya, al-Ain)

The Egyptian President reviewed the performance of the government’s FY21/22 state budget with the Ministerial Economic Group based on the preliminary data that is currently available. The budget deficit shrank to 6.1%, down from 6.8% in FY20/21. Revenues increased by 20%, while expenditures increased by 15%. The budget achieved a primary surplus of 1.3% of GDP, becoming the fourth year in a row where a primary surplus is recorded. The value of debt service payments was reduced to 33%, down from 36% in FY20/21. The President directed the government to reduce the debt-to-GDP ratio and continue to exercise discipline with public finances, while also encouraging investments in order to maintain and increase economic growth. At the same time, The President also urged the government to continue to spend on healthcare and education, as well as social protection programs. (Sources: al-Ahram (English) (Arabic), Egypt Today (English), Daily News Egypt (English), Xinhua (English), Amwal al-Ghad, Zawya, al-Youm al-Saabe, al-Masry al-Youm, Masrawy, Middle East News Agency, CNBC Arabia, al-Arabiya, Sky News Arabia, CNN, Euronews, RT

The CBE (Central Bank of Egypt) decided in its latest MPC (Monetary Policy Committee) meeting to keep all its rates unchanged. The overnight deposit rate remained at 11.25%, the overnight lending rate at 12.25%, the rate of main operation at 11.25%, and the discount rate at 11.25%. The CBE justified its decision based on slowing global economic activity due to the Russia-Ukraine conflict, with trade sanctions disrupting supply chains leading to higher commodities prices. Tightening monetary conditions globally as well as China Covid lockdowns also contributed to their decision. Domestically, the CBE says that the economy is still growing, albeit at a slower pace than the previous quarter. The CBE attributes that to the reasons mentioned above as well as a diminishing favourable base effect that was present in the previous three quarters. Unemployment declined in 1Q22, and while inflation is rising, the rate of its increase is decelerating. (Sources: Reuters (English), Zawya (English) (Arabic), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat, Sky News Arabia, CNN)

During his visit to Egypt, Saudi Arabia’s Crown Prince announced the signing of 14 investment deals worth USD7.7bn. The investments will be made in various industries such as food, fintech, renewable energy, and petroleum. Some of the agreements include a USD1.5bn project to build a wind power plant and another project to develop the multi-purpose terminal at Damietta Port. Also included is a project located in Saudi Arabia, where an Egyptian pharmaceutical company will establish a pharmaceutical city there worth USD150mn. In an official statement, Saudi Arabia said it intends to have investments in Egypt worth USD30bn, although no clear timeline was given to reach that figure. Egypt and Saudi Arabia have strong relations, with over 150 bilateral agreements between them. (Sources: Reuters (English), Associated Press (English), Saudi Gazette (English), al-Ahram (English), al-Arabiya (English) (Arabic), Khaleej Times (English), Forbes Middle East (English), Zawya (English) (Arabic), Xinhua (English), MenaFN (English), Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business, Sky News Arabia, al-Sharq al-Awsat, al-Ain, CNN, RT)

A recent report by Fitch Solutions took on a pessimistic view of the economic prospects of North African countries. The report predicted that surging inflation due to the Russia-Ukraine conflict will weigh on private consumption, and higher energy and food prices will weaken nations’ fiscal and external positions. Fitch expects North Africa’s GDP growth to decelerate to 4.6% in 2022 and 3.8% in 2023, down from 5.4% in 2021. Fitch cautiously sees Egypt as a seeming exception to this regional trend, although economic conditions will still weaken, albeit at a slower pace than most of its neighbors. They forecast GDP growth of 6.2% in FY21/22, reflecting the 9.1% growth rate witnessed in 1H21/22 and a 3.6% rate projected for 2H21/22. Fitch also lowered their forecast for FY22/23 GDP growth from 5.5% down to 4.4%. They cite double-digit inflation that is burdening household incomes, a decrease in public investments, and incomplete recovery in the tourism sector as the main contributing factors to their revised projections. (Sources: Fitch Solutions (English), Zawya (English), al-Ahram (English), Akhbar al-Youm

CAPMAS (The Central Agency for Public Mobilization & Statistics) released external trade data for March 2022, indicating that Egypt’s trade deficit dropped by 40% YoY in March 2022 to sit at USD2.3bn. Exports increased by a whopping 44% YoY, with petroleum products, crude oil, fertilizers, and ready-made garments leading the surge. Imports increased by only 2.5% YoY, with the minor increase led by raw iron & steel, crude oil, plastics, and corn. (Sources: Zawya (English) (Arabic), Mubasher (English), Daily News Egypt (English), Egypt Today (English), al-Borsa, al-Youm al-Saabe, al-Dustour, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya)

The Ministry of Petroleum & Mineral Resources announced that a MoU regarding natural gas exports to Europe was signed between Egypt, Israel, and the E.U. at the East Mediterranean Gas Forum. Israel is already exporting LNG to Europe by shipping the natural gas through a pipeline to Egypt, where it is liquefied and shipped to Europe. The new agreement involves increasing the quantity of gas provided by Israel. The deal will continue for 3 years, with an automatic 2 year extension. The European Commission president, who attended the signing ceremony, also pledged EUR100mn in relief for food security in Egypt. She said that this agreement marks a key milestone for Egypt in becoming a regional energy hub. She highlighted that "we want to diversify to trustworthy suppliers, and Egypt is a trustworthy partner," praising Egypt for contributing to Europe’s energy security, and appreciating the strengthening EU-Egypt relations. (Sources: European Commission (English), Reuters (English), AP (English), BBC (English) (Arabic), France 24 (English) (Arabic), DW (English) (Arabic), Xinhua (English), Zawya (English), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), Egypt Today (English), al-Arabiya (English) (Arabic), al-Sharq al-Awsat (English) (Arabic), Amwal al-Ghad, al-Borsa, al-Masry al-Youm, al-Dustour, Masrawy, al-Sharq Business, Sky News Arabia, Euronews, CNN, RT, Sputnik)

A recent report by the UNCTAD (The United Nations Conference on Trade & Development) indicated that Egypt was the second largest recipient of FDI in Africa with USD5.12bn. South Africa came in first place, and Mozambique ranked third. Egypt’s FDI was down 12% in 2021 due to lower investments in exploration and production projects for energy and minerals. FDI in the North African region declined by 5% in 2021. The report pointed to bright prospects for investment in Egypt, citing announcements for new projects worth USD5.6bn in 2021. On top of that, Egypt has also received commitments from Arab Gulf countries such as Saudi Arabia and the U.A.E. for investments of around USD22bn in a variety of sectors. On a related note, a report by the Arab Investment & Export Credit Guarantee Corporation (Damaan), which studies FDIs in the Arab region, also painted an optimistic picture for Egypt. This report showed Egypt ranking third in attracting FDI in the Arab region, following the U.A.E. and Saudi Arabia. (Sources: UNCTAD (English), Econostrum (English), al-Sharq al-Awsat (English), Sada el-Balad, Capital News Egypt, al-Arabiya, al-Rooya, Euronews, Sputnik)

CAPMAS (The Central Agency for Public Mobilization & Statistics) released inflation figures for May 2022, showing headline (urban) inflation registering 13.5% versus 13.1% in April 2022. Although inflation is still rising, the pace of the increase comes slower than most had forecasted. On a monthly basis, headline inflation increased by 1.1% MoM in May 2022. Nationwide inflation reached 15.3% in May 2022 versus 14.9% in April 2022, and went up by 0.9% MoM on a monthly basis. The main drivers of inflation were increases in the prices of some food items, despite others seeing some declines. (Sources: Reuters (English), Mubasher (English), Zawya (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), al-Arabiya (English) (Arabic), Xinhua (English), al-Maal, al-Borsa, Economy Plus Me, al-Masry al-Youm, al-Shurouk, al-Dustour, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Sharq al-Awsat, RT)

The World Bank has raised its projection for Egypt’s GDP growth in FY21/22 to 6.1%, up from a previous 5.9% forecast that was made in April 2022. As for the coming years, the World Bank expects GDP to grow by 4.8% in FY22/23 and 5.0% in FY23/24. The projections were published in their June 2022 Global Economic Prospects report. The Egyptian economy’s strong performance in 1H21/22 was the main reason behind the upgraded forecast. On the other hand, the FY22/23 projection was lowered due to the negative repercussions of the Russia-Ukraine conflict, which include high food and energy inflation as well as a decline in tourism activity. The World Bank’s forecast for average growth in the overall MENA region for 2022 is 5.3%, which is below Egypt’s expected growth, despite the figure including the boost received by the oil-exporting GCC (Gulf Cooperation Council) countries. As for oil-importing countries in the region, a category which includes Egypt, their expected growth is 4.1% in 2022 and 4.4% in 2023, far below Egypt’s forecast growth. (Sources: World Bank (English) (Arabic), State Information Service (English) (Arabic), Egypt Today (English), Daily News Egypt (English), Business Today Egypt (English), Egypt Independent (English), Sada el-Balad (English) (Arabic), Arab News (English), al-Maal, Amwal al-Ghad, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Masrawy, Middle East News Agency)

Egypt’s business activity remained in contractionary territory according to the latest S&P Global PMI survey. Egypt’s PMI score for May 2022 was 47.0, up marginally from 46.9 in April 2022, but still below the 50.0 neutral mark. High inflation that is accelerating led to both a steep drop in demand as well as an increase in business expenses. The strengthening U.S. Dollar caused even more damage, adding to the already exceptionally high commodities prices due to the Russia-Ukraine conflict and the persistent Covid pandemic’s negative effects. As a result of these conditions, the outlook of firms for future business activity declined. Despite that, businesses did remain positive that circumstances will become brighter over the coming twelve months and that output will increase. (Sources: S&P Global (English) (Arabic), Reuters (English), Business Today Egypt (English), Arab News (English), al-Maal, Zawya, al-Borsa, Economy Plus Me, Masrawy, al-Sharq Business)

SCZone (The Suez Canal Economic Zone) signed a MoU with H2 Industries, a German company, to build a waste-to-hydrogen facility within the economic zone. The plant will be located in East Port Said, and will cost around USD4bn. The project aims to produce 300,000 tons/year of green hydrogen by recycling 4mn tons of waste. H2 Industries will commence with the feasibility studies, which should conclude with the signing of the final contract in November 2022. This will coincide with the COP27 global climate conservation meeting hosted by Egypt. The project serves a double purpose by handling the issue of organic waste management, including plastic, while producing green, environmentally-friendly hydrogen to be used as a fuel. This facility will be added to a number of other renewable energy projects that the Egyptian government is implementing to accelerate its sustainable energy transition. The ultimate goal is to become a regional exporter of green hydrogen and a global leader in the field. (Sources: State Information Service (English), Reuters (English), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), Business Today Egypt (English), Sada el-Balad (English) (Arabic), Arab News (English), al-Arabiya (English), al-Sharq al-Awsat (English), Xinhua (English), Renewables Now (English), Hydrogen Central (English), al-Maal, Amwal al-Ghad, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Middle East News Agency, al-Sharq Business, CNBC Arabia, al-Taqa, Sputnik)

Egypt’s natural gas export revenues, including LNG (liquefied natural gas), shot up by 98% YoY during 4M22. This steep increase brought revenues up to USD3.8bn. Also, export revenue in 2021 grew by over 84% versus 2020 to reach USD13bn. The Minister of Petroleum & Mineral Resources had recently stated that Egypt’s exports of natural gas and LNG were expected to increase to 7-8mn tons by the end of the current FY21/22. For next year there are plans to implement 33 new wells that will add 450mn cubic feet of gas and over 17,200 barrels of condensate. The Minister added that total investments in the Egyptian gas sector in the next couple of years should exceed USD1.6bn, and that exported quantities should reach 1.5bcf/day by the end of that period. The ultimate goal is to raise Egypt’s gas export capability to 12mn tons/year within three years. (Sources: Reuters (English), Zawya (English), Business Today Egypt (English), Sada el-Balad (English), al-Maal, Amwal al-Ghad, al-Borsa, Economy Plus Me, al-Shurouk, Masrawy, al-Taqa, al-Sharq Business, CNBC Arabia, al-Arabiya, Sky News Arabia, al-Ain, Euronews)

Moody’s Investors Service, one of the leading global credit rating agencies, has affirmed Egypt’s long-term foreign- and local-currency credit rating at B2. This vote of confidence comes despite the negative economic shocks witnessed by the global economy, and emerging economies in particular. According to Moody’s, the rating affirmation is based on the success of Egypt’s fiscal and economic reforms over the past years, as well as its pro-active crisis policy response. Tighter global financing conditions can be countered by Egypt’s diverse, reliable sources of funding. As for economic performance, Egypt’s impressive GDP growth, even during global economic turmoil, gives confidence to prospective foreign investors while giving Egypt the resilience to maneuver around a changing global economic landscape. On the other hand, Moody’s also downgraded Egypt’s outlook from ‘stable’ to ‘negative’, but is  awaiting improvements in the economic and financial situation to restore their outlook back to ‘stable’. The current tightening in global financing conditions risks diminishing recurrent inflows despite considerable financial commitments from Arab Gulf countries such as Saudi Arabia. On top of that are food import issues faced by Egypt due to the Russia-Ukraine conflict and its negative effects on global food supplies, especially wheat, which is a key Egyptian staple. (Sources: Moody’s (English), State Information Service (English), Ministry of Finance, Zawya (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), Sada el-Balad (English), Xinhua (English), Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, RT)

The Minister of Planning & Economic Development reported that the Egyptian economy grew at an impressive rate of 7.8% during 9M21/22, compared to 1.9% a year earlier in 9M20/21. Growth during 3Q21/22 was 5.4%. The Minister expected that growth for the full FY21/22 should reach 6.2%. (Sources: State Information Service, Zawya (English), Egypt Today (English), Sada el-Balad (English) (Arabic), Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Dustour, Masrawy, al-Arabiya, Sky News Arabia, al-Ain, Xinhua)

The CBE (Central Bank of Egypt) has decided to raise interest rates by 2%, which is the largest increase in the last five years. Rates have risen to 11.25% and 12.25% for the overnight deposit and lending rates respectively, while both the discount and credit rates are now 11.75%. The rates increase was implemented to combat rising inflation as well as making the yields on treasury bonds more attractive to foreign investors. Most central banks around the world are currently raising rates to tighten monetary conditions in response to high inflation. (Sources: Reuters (English), Euronews (English), Xinhua (English), Forbes (English), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Arab News (English), al-Maal, Amwal al-Ghad, Zawya, al-Borsa News, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Masrawy, Middle East News Agency, CNBC Arabia, al-Arabiya, Sky News Arabia, al-Sharq al-Awsat, RT)

The Minister of Petroleum & Mineral Resources revealed that investments in the Egyptian energy sector should total USD7-8bn in the current FY21/22. The Ministry is seeking to increase oil output through attracting more investments in the sector, in response to higher global oil prices. This should trim the gap between local consumption and production, as oil imports have surged in 2022. (Sources: Zawya (English), Arab News (English), Hapi Journal, Akhbar al-Youm, Sada el-Balad, alArabiya)

According to the CBE (Central Bank of Egypt), remittances from Egyptians abroad increased by 13% YoY in March 2022 to reach USD3.3bn. On a monthly basis, remittances in March 2022 surged by over 44% MoM from February 2022. As for the full 9M21/22, the increase was 1.1% YoY to bring it up to USD23.6bn. The World Bank, in its most recent Migration & Development Brief report, expected that remittances from Egyptians abroad will grow by 8.0% in 2022 versus 6.4% in 2021. On the other hand, the same report forecasted remittances to decline in the MENA region from 7.6% in 2021 to 6.0% in 2022. The prediction for remittances growth in low- and middle-income countries is 4.2% in 2022 versus 8.6% in 2021. The report also stated that Egypt is one of the top five remittance recipient countries in the world. (Sources: World Bank (English), Reuters (English), Zawya (English), al-Ahram (English) (Arabic), Egypt Today (English), Egypt Independent (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, alShurouk, al-Watan, al-Dustour, Sada el-Balad, Masrawy, CNBC Arabiya, al-Arabiya, Sky News Arabia, al-Ain, Euronews, RT) 2. Trade Deficit Drops 29% Y

A Ministry of Planning & Economic Development report revealed that Egypt has retained its title as the top recipient of Egypt's Top African Recipient of FDI for 5th Year in a Row for the fifth year in a row. Egypt received USD5.9bn of FDI in FY20/21, representing 53% of all FDI flowing into North African countries. The report said that FDI increased by 4% in 1Q21/22, led by the U.K. with 34% of total FDI, followed by the U.S.. An improved local business environment encouraged these investments due to an extensive reforms program. (Sources: Ministry of Planning & Economic Development (English) (Arabic), Egypt Today (English), Egypt Independent (English), al-Maal, al-Ahram, al-Youm al-Saabe, al-Watan, Sada elBalad, Emarat News)

The EBRD (European Bank for Reconstruction & Development) has upgraded its forecast for Egypt’s GDP growth to 5.7% for the current FY21/22, up from a 4.9% projection made in November 2021. For FY22/23, the forecast is 5.0%. The forecasts appeared in the EBRD’s Regional Economic Prospects report. When the numbers are reconfigured to match calendar years, the forecasts become 3.1% for 2022 and 6% for 2023, making Egypt one of the highest growing countries in the SEMED (Southern & Eastern Mediterranean) region. The EBRD’s forecast for the entire SEMED region is 2.5% in 2022, revised down from a 4.3% projection made in November 2021. (Sources: EBRD (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English) (Arabic), Daily News Egypt (English), State Information Service, al-Maal, al-Youm al-Saabe, al-Shurouk, Akhbar al-Youm)

Inflation Rises to 13.1% in April 2022 CAPMAS (The Center for Public Mobilization & Statistics) released inflation figures for April 2022. The numbers showed that urban (headline) inflation rose to 13.1%, up from 10.5% in March 2022. On a monthly basis, inflation was 3.3% MoM in April 2022. Food price surges were the key driver of higher inflation. Nationwide inflation registered 14.9%, up from 12.1% in March 2022. Core inflation, reported by the CBE (Central Bank of Egypt), came in at 11.9% versus 10.1% in March 2022. Globally, food and energy prices have been rising significantly, affecting all countries worldwide. This comes as a result of the Russia-Ukraine conflict, supply chain disruptions, and strong demand post-pandemic. (Sources: State Information Service (English), Reuters (English), Zawya (English) (Arabic), Mubasher (English), Daily News Egypt (English), Egypt Today (English), Business Today Egypt (English), al-Maal, Amwal al-Ghad, al-Borsa, Hapi Journal, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, Akhbar al-Youm, Masrawy, Middle East News Agency, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat, CNN, France24, Sputnik)

The Finance Minister has presented the government’s FY22/23 budget to Parliament. The budget indicates that government expenditures are expected to rise by 16%, while revenue is expected to rise by 17%. A primary surplus of 1.5% should be achieved, up from 1.2% in FY21/22, while the overall budget deficit will represent 6.1% of FY22/23 GDP. The debt-to-GDP ratio is projected at 84%, down from 85% in FY21/22. Some of the assumptions in the budget are that GDP growth will be 5.5%, revised down from 5.7%, and that inflation will average 9%. The Minister highlighted that this budget has been drafted in the midst of the severe negative economic fallout from the Russia-Ukraine conflict, and that the strength of the economy will mitigate some of the conflict’s repercussions. (Sources: Ministry of Finance, Reuters (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), Amwal al-Ghad, al-Borsa, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, Akhbar al-Youm, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq alAwsat, Sky News Arabia, al-Ain, Euronews, RT)

S&P Global’s PMI (Purchasing Managers’ Index) for April 2022 registered 46.9, a modest increase from 46.5 in March 2022. The figure is still below the 50.0 neutral threshold, signalling continued business activity contraction. Companies were facing more increases in the prices of raw materials and energy due to the Russia-Ukraine conflict. The devaluation of the Egyptian Pound in late March 2022 added to these cost pressures. Customers also continued to ration their spending, leading to a reduction in new orders as well as lower employment levels. Positive PMI data appeared for the construction sector, which showed an increase in new work. On the other hand, manufacturers were the hardest hit by the input price increases and supply chain disruptions, which led to lower production. Retailers and wholesalers also witnessed declining activity. As the Russia-Ukraine conflict drags on, price and supply issues are expected to persist, leading to a negative outlook for business activity. Companies are not passing on the cost increases to customers yet as they await demand to recover. (Source: S&P Global (English), Reuters (English), Mubasher (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), Arab News (English), al-Maal, Hapi Journal, Economy Plus Me, al-Masry al-Youm, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat)

The Egyptian Prime Minister attended the signing of a USD3bn MoU (memorandum of understanding) between the SCZone (Suez Canal Economic Zone) and the Green Fuel Alliance to build a 350,000 ton/year green ammonia production facility. The Alliance is led by EDF Renewables, a French global renewable energy player, and includes UAE-based Zero Waste. The green ammonia will be used as bunker fuel for the Suez Canal’s traffic. The first phase of the project should commence operations in 2026, and the second phase by 2030, bringing the total production up to 740,000 tons/year. The Alliance will build 650MW of solar and wind energy generation capacity in order to power the production facility with renewable energy. A similar agreement was signed with the U.A.E.’s AMEA Power Company to establish a facility that produces 235,000 tons/year of green ammonia. Production can also be increased up to 390,000 tons/year. Trial operations will begin by the end of 2025. These projects serve as another step in the Egyptian government’s comprehensive plan to diversify its energy mix away from carbon-based fossil fuels towards renewable energy and its derivatives. (Sources: EDF Renewables (English), SC Zone (English), State Information Service (English), Reuters (English), Port Technology (English), Renewables Now (English), Zawya (English), Daily News Egypt (English), Egypt Today (English), Business Today Egypt (English), Arab News (English), al-Arabiya (English) (Arabic), Xinhua (English), Amwal al-Ghad, al-Aalam al-Youm, al-Ahram, alYoum al-Saabe, Masrawy, al-Taqa, al-Sharq al-Awsat, Sputnik)

The IMF (International Monetary Fund) has raised its projection for the Egyptian economy’s 2022 GDP growth to 5.9%, up from 5.2% in October 2021 and 5.6% in January 2022. The forecast for 2023 is 5%. These forecasts represent the highest growth rate among all oil-importing countries in the Middle East. From a regional perspective, the IMF expects the MENA (Middle East & North Africa) region’s GDP to grow at 5% in 2022, a downgrade from a 5.8% forecast made in 2021. For 2023, growth is projected at 3.6%. Global GDP growth is also forecast at 3.6% in both 2022 and 2023. The revised projections appeared in the IMF’s latest World Economic Outlook report, which was released during the annual meeting between the IMF and the World Bank. The Egyptian government has recently slightly reduced its expectation for FY22/23 GDP growth down to 5.5% in light of the negative global economic repercussions of the Russia-Ukraine conflict. (Sources: IMF (English) (Arabic), State Information Service (English) (Arabic), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), See News (English), al-Maal, Amwal al-Ghad, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, Forbes Middle East)

CAPMAS (The Central Agency for Public Mobilization & Statistics) reported monthly foreign trade data, showing that Egypt’s trade deficit fell by over 32% YoY in January 2022 to reach USD2.4bn. Exports went up by 35% driven by increases in raw and manufactured petroleum products, ready-made garments, and plastics, but negatively impacted by a decline in the value of fertilizer exports. On the other hand, imports dropped by 2%. An increase in the value of some imports prevented the figure from declining further, such as raw iron & steel, pharmaceuticals, plastics, and petroleum products. (Sources: Zawya (English), Egypt Today (English), Business Today Egypt (English), Mubasher, Hapi Journal, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Masrawy, CNBC Arabia)

ADQ (The Abu Dhabi Wealth Fund) has invested USD1.8bn through acquiring state-owned stakes in five Egyptian companies. The companies operate in the financial, fertilizers, materials, and logistics sectors. Back in 2019, ADQ and the SFE (Sovereign Fund of Egypt) had jointly established a USD20bn investment fund aimed at cooperatively managed projects and investments in vital sectors such as food & agriculture, healthcare & pharmaceuticals, utilities, financial services, and real estate. The fund made its first acquisitions in 2021. (Sources: ADQ (English) (Arabic), Reuters (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English), Egypt Today (English), Business Today Egypt (English), Arabian Business (English), Arab News (English), Xinhua (English), al-Maal, Zawya, al-Masry al-Youm, al-Shurouk, Masrawy, al-Ain, al-Arabiya, RT)

CAPMAS (The Center for Public Mobilization & Statistics) released official inflation figures for March 2022, showing headline (urban) inflation rising to 10.5%. The reading for February 2022 was 8.8%. Monthly inflation was 2.2% MoM. The increase in inflation was attributed to the economic repercussions of the Russia-Ukraine conflict, heightened global demand as economies recover from the Covid pandemic, and global supply chain disruptions resulting in soaring shipping costs. The key driver of inflation was food and beverage prices, rising by a whopping 33% YoY. Nationwide inflation also rose to 12.1% in March 2022, recording its highest level in nearly three years. The figure for February 2022 was 10.0%. Core inflation, which excludes volatile items such as food, registered 10.1%, up from 7.2% in February 2022. One of the government’s responses to rising inflation was to temporarily fix prices for unsubsidized bread while working to secure wheat supplies from countries other than Russia and Ukraine, whose exports were disrupted due to the conflict between them. Egypt consumes a large amount of wheat, primarily for bread, and is one of the biggest importers worldwide. Other initial government responses were a lowering of public investments and the CBE’s hikes in interest rates. (Sources: Reuters (English), AP News (English), Zawya (English) (Arabic), al-Ahram (English), Egypt Today (English), Business Today Egypt (English), See News (English), al-Sharq al-Awsat (English) (Arabic), Amwal al-Ghad, Mubasher, Hapi Journal, Economy Plus Me, al-Shurouk, alDustour, Masrawy, CNBC Arabia, al-Arabiya, RT)

The Minister of Finance stated the government’s current budget targets in a meeting with investors. One of the key goals is to reduce the Debt-to-GDP ratio to under 90% by the end of FY21/22, and down to 85% by 2025. For FY21/22, the target is a primary surplus of 1.3% of GDP and a budget deficit of under 6.2%. GDP growth for FY21/22 is expected to come in at 5.7% despite the severe global economic repercussions of the Russia-Ukraine conflict. The Minister also revealed that tax revenues went up by about 14% during 8M21/22. He credited the government’s extensive economic reforms for allowing Egypt’s economy to exhibit resilience and growth in the face of global economic shocks, while attracting investments and stimulating the private sector. Note that the Egyptian economy posted a spectacular 9% GDP growth in 1H21/22. (Sources: Ministry of Finance, Daily News Egypt (English), Egypt Independent (English), al-Sharq al-Awsat (English) (Arabic), Amwal al-Ghad, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Masrawy, CNBC Arabia, al-Arabiya, RT)

Fintech investments have surged by 300% YoY in 2021 according to FinTech Egypt’s annual industry report. FinTech Egypt is an initiative founded by the CBE (Central Bank of Egypt). Venture capital investments in the fintech industry have shot up significantly in recent years, with 112 current startups compared to only 2 in 2014. This places Egypt in the top four most active African countries in this industry. Some of the factors that supported growth in the Fintech industry are huge improvements in financial inclusion, with the level currently at 56%, coupled with a similar level of mobile internet usage. Startup incubators and accelerators have also boosted industry growth, as well as clear interest from investors in the industry’s potential. The report said that USD250mn have been invested in the industry in the past five years, with investments rising from USD0.9mn in 2017 to USD159 in 2021. The number of deals went up from 3 in 2017 to 32 in 2021. Furthermore, almost half of the startups are planning to raise further seed funding to grow, indicating that more opportunities still exist in this nascent industry. Source: State Information Service (English), Zawya (English), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, Masrawy)

Egypt’s PMI (Purchasing Managers’ Index) for March 2022 fell to a score of 46.5, down from 48.1 in February 2022. Weighing heavily on business activity was the Russia-Ukraine conflict, with uncertainty and higher prices causing customers to cancel new orders. Consequently, output fell sharply, all the way down to levels seen in the midst of the Covid pandemic lockdowns. Industrial sectors were hit the hardest due to their exposure to rising energy and raw material prices. Wholesalers and retailers were also affected due to rising food prices. Companies faced difficulty in passing on cost increases to customers due to muted demand. As a result, firms lowered their input purchases significantly. (Source: S&P Global (English), Reuters (English), Zawya (English), al-Ahram (English), Egypt Today (English), Amwal al-Ghad, al-Shurouk, Masrawy, CNBC Arabia, al-Sharq Business, al-Arabiya)

The Egyptian Cabinet has announced that Egypt and Norway have officially signed the formal agreement for the construction and operation of a 100MW green hydrogen production facility in the SCZone (Suez Canal Economic Zone). The project will cost around USD5bn, and will have an initial production capacity of 1mn tons/year, which can be expanded to 3mn tons/year in the future. Production is expected to commence in 2025, and will mainly be exporting green ammonia to Europe and Asia. The agreement was formally signed between the SFE (Sovereign Fund of Egypt), the Norwegian company Scatec, Egypt’s Orascom Construction, and the UAE’s Fertiglobe, and the signing ceremony was attended by the Egyptian Prime Minister. (Source: State Information Service, al-Ahram (English), Egypt Today (English), ABC News (English), Xinhua (English), Arab News (English), Amwal al-Ghad, al-Youm al-Saabe, al-Shurouk, al-Dustour, Akhbar al-Youm, Masrawy, al-Arabiy

The Egyptian Cabinet has approved a draft investment agreement between Egypt and Saudi Arabia. The agreement entails cooperation between the SFE (The Sovereign Fund of Egypt) and the PIF (The Saudi Public Investment Fund). The two sovereign funds are looking to work together on investments in Egypt worth USD10bn in the coming period. Some of the sectors targeted for investment include healthcare, education, agriculture, and finance. This follows Saudi Arabia’s decision to deposit USD5bn at the CBE (Central Bank of Egypt) to support Egypt’s foreign reserves. (Source: Reuters (English), Saudi Press Agency (English) (Arabic), al-Ahram (English), Egypt Today (English), Business Today Egypt (English), al-Maal, al-Youm al-Saabe, al-Masry al-Youm, Masrawy, Middle East News Agency, al-Sharq Business, al-Arabiya, RT, Sputnik, Xinhua)

In a joint statement between the two countries, Qatar announced their intention to invest USD5bn in Egypt in the near future. This follows the UAE’s recent announcement that it will be investing USD2bn in Egypt very soon, by acquiring a number of stakes in Egyptian companies. Saudi Arabia has also deposited USD5bn with the Central Bank of Egypt (CBE), as well as pointing towards large-scale investments coming soon. (Source: Reuters (English), BNN Bloomberg (English), Xinhua (English), Gulf News (English), Arab News (English), al-Sharq al-Awsat (English), al-Arabiya (English) (Arabic), Zawya (English) (Arabic), al-Maal, Mubasher, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Watan, al-Dustour, Akhbar al-Youm, Masrawy, al-Sharq Business, Sky News Arabia, al-Ain, RT)

The Egyptian government has lowered its GDP growth forecast for FY21/22 from 6.4% to 5.7%, and for FY22/23 from 5.7% to 5.5%. This comes in light of the significant negative global economic repercussions of the Russia-Ukraine conflict. Current government efforts are aimed at expanding the size of the real economy, which includes industry, agriculture, communications and information technology, to represent 35% of the total Egyptian economy. It is worthy to note that GDP growth in 1H21/22 reached an impressive 9%. (Source: al-Ahram (English), Egypt Today (English), al-Maal, Mubasher, Amwal al-Ghad, al-Youm al-Saabe, al-Watan, Masrawy)

The Egyptian government and Maersk have signed a Memorandum of Understanding (MoU) to conduct a feasibility study on the local production of green hydrogen and green marine fuel powered by renewable energy. The Prime Minister himself witnessed the signing of the agreement, signalling the importance of decarbonisation and the green transition for Egypt. Maersk’s representative said that the company is interested in building a green fuel production plant in Ain Sokhna Economic Zone, and is currently preparing vessels to be powered by green fuel, namely methanol. (Source: Maersk (English), Suez Canal Economic Zone (English), Offshore Energy Today (English), Smart Energy International (English), Port Technology International (English), Biofuels International (English), Egypt Today (English), al-Sharq al-Awsat (English) (Arabic), al-Maal, Mubasher, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Ain)

Egypt has successfully completed the sale of its first issuance of Japanese Yen-denominated Samurai Bond. The issuance was valued at YEN60bn, equivalent to about USD500mn. The annual coupon rate on the 5 years issuance was 0.85%, a rate that is much lower than the USD-denominated bond issuances. The success of this bond sale reflects the confidence of international bond investors in Egyptian sovereign debt despite the severe negative repercussions and global economic challenges resulting from the Russia-Ukraine conflict, as well as the uneven global recovery from the Covid pandemic. Note that the sale of bonds denominated in Japanese Yens is the first in the MENA region, and comes as part of the Egyptian government’s efforts to diversify its sources of funding by tapping a variety of debt instruments, markets, and investors. (Source: State Information Service (English) (Arabic), Ministry of Finance, Zawya (English) (Arabic), Egypt Today (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad (English) (Arabic), Economy Plus Me, al-Ahram (English) (Arabic), al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, Sky News Arabia, Sputnik)

The Egyptian Cabinet announced after its meeting that the government has lowered its GDP growth target for FY22/23 to 5.5%, down from 5.7%. This is mainly due to the Russia-Ukraine conflict’s negative effects on the economy. The target for investment growth in FY22/23 has also been reduced slightly to 15.2%, down from 16.2%, with public investments expected to represent 78% of total investments that fiscal year. It is worthy to note that Egypt achieved an impressive GDP growth rate of 3.3% in FY20/21, a period during which the Covid pandemic was wreaking havoc on all world economies. As for the current FY21/22, the government forecasts a GDP growth rate of 6.5%. (Source: Reuters (English), al-Ahram (English), Egypt Today (English), Arab News (English), Amwal al-Ghad, al-Sharq Business, al-Arabiya, Investing.com)

The CBE (Central Bank of Egypt) decided to raise interest rates by 100bps at a special unscheduled monetary policy committee meeting. The interest rate hike is aimed at containing the inflationary effects of the recent sharp rises in commodities prices due to the Russia-Ukraine conflict, as well as the lingering pandemic recovery-related inflation. The overnight deposit rate is now 9.25%, the lending rate is 10.25%, and the main operation and discount rates are both 9.75%. The CBE also allowed the EGP to trade up to 16% lower against the USD in order to maintain foreign-currency liquidity. This comes in light of some external funding imbalances that are partly related to rising risk-off sentiment resulting from the Russia-Ukraine conflict. The CBE maintains the view that the EGP’s exchange rate should remain flexible in order to serve as a shock absorber that maintains Egypt’s competitiveness. (Source: Central Bank of Egypt (English) (Arabic), Reuters (English), AP News (English), Xinhua (English), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), Egypt Independent (English), Forbes Middle East (English), al-Arabiya (English) (Arabic), al-Sharq al-Awsat (English) (Arabic), al-Maal, Amwal al-Ghad, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business, Sky News Arabia, CNN, RT)

After a meeting with the President, the Egyptian government announced a revised draft state budget for FY22/23 in light of the steep rises in commodities prices driven by the Ukraine conflict. The new figures show a target primary surplus of 1.5% versus 2% in the previous draft, and an overall budget deficit of 6.3% of GDP versus 6.1% previously and 6.9% for the current FY21/22. State revenues are forecast to increase by 17%, and expenditures to increase by 16%. The debt-to-GDP ratio is expected to drop to 80.5%. The President also instructed the government to prepare a package of social protection measures immediately, aimed at alleviating some of the economic pressures of the recent negative global developments on citizens, especially the most vulnerable. (Source: Reuters (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Egypt Independent (English), al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, CNBC Arabia, al-Arabiya)

The Minister of Petroleum & Mineral Resources revealed that the government will be expediting its plans to increase domestic oil & gas production. This comes in response to rising oil & gas prices, tight supplies, and the need to mitigate some of the potential negative effects of these developments, while possibly finding ways to benefit from the situation as well. The Minister emphasized the urgency to increase investments in the oil industry, especially for oil exploration, speed up the development of oil fields already discovered while increasing the number of rigs and wells and raise current production levels. In parallel, he said efforts should be made to reduce emissions, enhance production safety, streamline consumption, and trim production costs. (Source: Ministry of Petroleum & Mineral Resources, State Information Service (English), Egypt Independent (English), al-Ahram, al-Youm al-Saabe, Masrawy, al-Sharq al-Awsat, RT)

CAPMAS (The Center for Public Mobilization & Statistics) released external trade data for December 2021, which showed that Egypt’s trade deficit fell dramatically by 22% YoY to sit at USD2.4bn. Exports shot up by a whopping 45% YoY in December 2021 to reach USD4.3bn, while imports only rose by 11% YoY to USD6.7bn. The remarkable rise in exports was driven by ready-made garments, up 33%, plastics in primary form, up 28%, flat iron & steel products, up 22%, and various food items, up 19%. (Source: Daily News Egypt (English), Egypt Today (English), al-Maal, al-Borsa News, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, Sada el-Balad, Akhbar al-Youm, Masrawy)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians abroad increased by 6.4% in 2021. This increase of USD1.9bn brings the total value of remittances in 2021 to USD31.5bn. Earlier, CAPMAS (The Center for Public Mobilization & Statistics) had mentioned that Egypt is the 6th top recipient of remittances globally in 2020 based on a study by the World Bank. According to the Bank, these remittances represent 6.7% of Egypt’s total GDP. The government’s IDSC (Information & Decision Support Center) had also reported that remittances grew by 72% during the period 2015-2021. (Source: State Information Service (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Egypt Independent (English), Arab News (English), Xinhua (English), al-Maal, Mubasher, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, al-Arabiya, Sky News Arabia)

Egypt has signed a USD5bn preliminary agreement with Scatec, a Norwegian renewable energy company, to produce green ammonia from green hydrogen. The project will be located in the Suez Canal Economic Zone, and production is expected to commence in 2025. Implementation of the project will be over two phases, with an initial production capacity of 1mn tons/year. The facility will be prepared to expand production to reach 3mn tons/year. The output green ammonia will probably be exported to Europe and Asia. Note that green hydrogen is produced from renewable energy sources. This project further solidifies Egypt’s commitment and policy direction towards increasing the share of renewable energy projects in the economy, not just at the power generation phase but also further down the value chain. It is worthy to note that Egypt will be hosting the COP 27 global climate conference in November 2022 as part of its concerted efforts to become a regional clean energy hub. (Source: Scatec (English), Suez Canal Economic Zone (English), Reuters (English), Renewable Energy Magazine (English), Energy Capital & Power (English), Energy Voice (English), Renewables Now (English), Xinhua (English), Zawya (English) (Arabic), Egypt Today (English), Arab News (English), al-Sharq al-Awsat (English), al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Arabiya, RT)

CAPMAS (The Center for Public Mobilization & Statistics) released inflation data for February 2022, showing headline inflation rising to 8.8% versus 7.3% in January 2022. On a monthly basis, inflation was up 1.6% MoM between January and February 2022. The annual increase was mostly due to sharp rises of about 18% in the prices of food, as well as unfavorable base effects. Overall nationwide inflation rose to 10% in February 2022 versus 8% in January 2022. Inflation was driven by steep increases in the prices of commodities and raw materials worldwide. Global food prices in particular shot up significantly due to supply shortages and fears surrounding the Ukraine war, as well as further supply chain disruptions that had not yet recovered from the post-Covid issues. Note that the CBE (Central Bank of Egypt) has an inflation target of 7% ±2%. (Source: Reuters (English), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), al-Arabiya (English) (Arabic), Masrawy, al-Sharq Business, CNBC Arabia, al-Sharq al-Awsat)

Egypt’s PMI (Purchasing Managers’ Index; compiled by IHS Markit) has risen to 48.1 in February 2022, up from 47.9 in January 2022. The score is still below 50, meaning in contraction territory. Demand was inhibited in February due to pandemic-induced price pressures, resulting in drops in new orders, output, purchases, employment, along with business confidence. On the bright side, rises in input costs and output prices were slower than before, and the decline in output was more moderate than in January. Companies voiced their worries that the pandemic’s negative economic effects might persist in 2022 longer than previously anticipated. (Source: IHS Markit (English) (Arabic), Reuters (English), Egypt Today (English), Mubasher, Hapi Journal, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, MSN)

The Minister of Finance revealed that all of the government’s digital transformation projects are expected to be completed by June 2022. These projects are aimed at increasing the effectiveness and efficiency of all government activities, enhancing governance and transparency, while also vastly improving the quality of service delivered to citizens. One of the key digital transformation projects is the GFMIS (Government Financial Management Information System), which links budgeting entities to the CPS (Collection & Payment System) and the TSA (Treasury Single Account). One of the benefits of this system is that it allows for closing the final accounts of the budget on the same day that the fiscal year ends, and implementing the new budget from the first day of the new fiscal year. This greatly strengthens the management of public finances by integrating and controlling all the government’s financial operations through a single unified IT system. Other projects include Meeza cards for paying salaries to government employees, which also advances financial inclusion as the cards can be used like traditional bank cards. As well, the tax and customs systems are being completely modernized, automated, and integrated with the other government IT systems. One of the results of these projects has been through the electronic invoice system, which detected over 15,000 cases of tax evasion, of which EGP6bn in otherwise lost tax revenue was recovered from just 4,300 of those cases. Overall, the new digitized tax system has raised tax revenues by about 13%.

The Minister of Supply & International Trade stated that Egyptian farmers are expected to supply an additional 2mn tons of wheat in the next harvest season. This would bring the total local supply to 5.5mn tons, an increase of 57% from 2021. The increase in production comes in light of constrained exports from two of Egypt’s key suppliers, Ukraine and Russia, amid the conflict between the two countries. Egyptians rely heavily on bread in their diet, and wheat is considered one of the most strategic staples in the country. Egypt is the largest wheat importer in the world, relying on 14 countries for wheat imports. (Source: al-Ahram (English), Egypt Today (English), Mubasher, Amwal al-Ghad, al-Shurouk, al-Watan, al-Dustour)

The Minister of Finance said that the Egyptian government is planning on increasing green public investments from 15% this fiscal year to 30% next year, and then reaching 50% by FY24/25. He explained that by doing this, the government will have access to more green and sustainable financing in order to achieve environmental and development goals. The green projects will be implemented in cooperation with partners from the private sector, and will contribute to Egypt’s efforts to combat climate change and preserve the environment. These projects include water treatment, water desalination, sewage, renewable energy power generation, and green transportation. It is worthy to note that Egypt is preparing to host COP 27 in Sharm el-Sheikh in November 2022, which will be the 27th session of the Conference of the Parties global climate conference. (Source: Ministry of Finance, Daily News Egypt (English), Egypt Today (English), See News (English), al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, Akhbar al-Youm, Sada el-Balad)

The Minister of Trade & Industry revealed that MSMEs (micro-, small- & medium-sized enterprises) represent over 80% of Egypt’s economy. She said this is the reason why the government is determined to continuously strengthen this crucial segment of the private sector. On top of their home-grown MSME enhancement initiatives, the government is also collaborating with numerous international partners such as the MSMEDA (Micro, Small and Medium-Sized Enterprises Development Agency) to deliver development programs targeted at this large group of companies. (Source: al-Ahram (English), Egypt Today (English), Daily News Egypt (English), al-Masry al-Youm, al-Watan, Sada el-Balad)

The Minister of Planning & Economic Development stated that the government has upgraded its forecast for GDP growth for FY21/22 to 6.2-6.5%. This comes in light of the exceptional growth witnessed in each of the first two quarters of FY21/22, which have exceeded the expectations of international institutions and leading analysts. Note that 1H21/22 GDP growth registered 9%. The Minister highlighted the strong growth witnessed by all sectors, led by tourism and communications, which is expected to continue throughout the year. (Source: Ministry of Planning & Economic Development (English) (Arabic), al-Ahram (English) (Arabic), See News (English), Egypt Today (English), Xinhua (English) (Arabic), al-Maal, Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Shurouk, al-Dustour, Masrawy, al-Sharq Business)

The Prime Minister announced that Egypt’s economy grew by 8.3% in 2Q21/22, bringing 1H21/22 growth to a stunning 9%. He said that GDP growth for the whole FY21/22 should come in above 6%. This is compared to 1.3% growth in 1H20/21. (Source: Reuters (English), Zawya (English), Forbes Middle East (English), Egypt Today (English), Daily News Egypt (English), See News (English), al-Arabiya (English) (Arabic), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, al-Dustour, Sada el-Balad, al-Sharq Business, CNBC Arabia, al-Sharq al-Awsat, CNN)

The Minister of Planning & Economic Development said that Egypt’s economy is expected to grow by 6% during FY21/22. She said that this forecast is supported by the 9.8% growth rate achieved in 1Q21/22, which was the highest level of growth in the last 20 years. This has led international institutions to raise their forecasts for the Egyptian economy’s growth, which in turn increases investor confidence. It is worthy to note that despite the Covid pandemic, the Egyptian economy was resilient enough to achieve growth of 3.6% in FY19/20 and 3.3% in FY20/21. Driving and reinforcing this impressive growth are the government’s structural reforms and targeted policies. (Source: Ministry of Planning & Economic Development (English) (Arabic), Zawya (English), Egypt Today (English), Arab News (English), al-Youm al-Saabe, al-Shurouk, al-Watan, al-Dustour, al-Sharq Business, al-Arabiya, RT)

CAPMAS (The Center for Public Mobilization & Statistics) reported external trade data for November 2021, which showed that the trade deficit dropped a whopping 63% YoY in November 2021 to sit at USD1.2bn. This was driven by a steep 81% YoY surge in exports to reach USD4.5bn, mainly driven by a rise in the value of some exported goods such as fertilizers, plastics, fresh fruits, and ready-made clothing. On the other hands, imports declined slightly by 0.5% to remain around the USD5.7bn mark. (Source: Zawya (English), Egypt Today (English), Daily News Egypt (English), See News (English), Business Today Egypt (English), Arab News (English), Economy Plus Me, al-Youm al-Saabe, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business)

CAPMAS (The Central Agency for Public Mobilization & Statistics) released inflation figures for January 2022, showing annual headline inflation reaching 7.3%, compared to 5.9% in December 2021. On a monthly basis, inflation went up by 0.9% from a month earlier, versus -0.1% in December 2021. The notable increase in inflation was mainly driven by increases in the food and beverages component of the CPI, which represents about 20% of the index. Other contributors to the annual rise were increases in transportation, housing, water, electricity, and gas prices. The CBE (Central Bank of Egypt) has an inflation target of 7% ±2% for 4Q22. (Source: Reuters (English), al-Ahram (English), Daily News Egypt (English), Egypt Today (English), Arab News (English), al-Sharq al-Awsat (English), al-Arabiya (English) (Arabic), Amwal al-Ghad, Akhbar al-Youm, Masrawy, al-Sharq Business)

The World Bank released its Egypt Economic Monitor report, in which it forecast that the Egyptian economy will grow by 5.5% in FY21/22. This was evidenced by the resilience of the Egyptian economy in the face of the pandemic’s severe economic repercussions. The Bank attributed this resilience to macroeconomic stabilization policies, efficient public debt management, government digitization, energy sector reforms, and the attraction of international financing which kept foreign reserves at appropriate levels. Furthermore, monetary easing coupled with support for vulnerable sectors helped mitigate the pandemic’s negative economic effects on the economy. Also, financial inclusion initiatives and efforts to improve the business environment, such as easier customs clearing and business restructuring, provided much needed economic boosts. (Source: World Bank (English) (Arabic), Zawya (English), al-Ahram (English), Daily News Egypt (English), Egypt Today (English), See News (English), Arab News (English), al-Maal, Mubasher, Hapi Journal, al-Youm al-Saabe, al-Shurouk, Masrawy, al-Arabiya)

The Minister of Petroleum & Mineral Resources revealed that Egypt’s exports of petrochemicals, chemicals, and fertilizers shot up by a stunning 45% during 2021 to reach USD6.7bn. These industries are key beneficiaries of the current abundance of natural gas in Egypt, as it is one of their main inputs. The Minister referred to the government’s current strategy to completely modernize the petrochemical industry by 2030 as a key growth driver for the years to come. He highlighted recent projects in the industry that have been implemented, such as the Red Sea Petrochemical Complex in the Suez Canal Economic Zone, the “Silicon Valley” Complex, and el-Alamein Complex, as proof of the government’s push to revitalize and develop this industry. (Source: Zawya (English), Egypt Today (English), Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, Sada el-Balad, al-Sharq al-Awsat, al-Arabiya)

The CEO of the General Authority for Investment & Free Zones revealed that net FDI (foreign direct investment) in Egypt’s non-oil sectors shot up during 1Q21/22 by over 28% on an annualized basis. He emphasized the authority’s contribution to this growth in investments with its eager efforts to address the challenges faced by investors, whether collectively or individually. Furthermore, the new system for allocating industrial land to investors is proving successful at attracting investments, resulting in more locally sourced production inputs and increases in exports. (Source: Egypt Today (English), See News (English), al-Ahram, al-Dustour, Sada el-Balad, Akhbar al-Youm, Masrawy, al-Arabiya)

IHS Markit’s latest PMI (Purchasing Managers’ Index) reading for January 2022 showed that Egypt’s score declined to 47.9 versus 49.0 in December 2021. This was due to output and new orders decreasing. The waning demand was exacerbated by marked increases in input and shipping costs, a small portion of which had to be passed on to customers. Despite that, businesses voiced confidence that they will be able to get through this difficult economic phase and grow their business within the coming 12 months. (Source: IHS Markit (English), Zawya (English), Business Today Egypt (English), Arab News (English), al-Maal, Amwal al-Ghad, Mubasher, Masrawy, al-Sharq Business, al-Arabiya, Euronews)

The CBE (Central Bank of Egypt) has decided to keep interest rates unchanged for the 10th time in a row. The rates remain at 8.25% for overnight deposits, 9.25% for overnight lending, and 8.75% for both the main operations rate and the discount rate. The Bank mentioned rising inflation, robust economic activity, and stable employment levels as domestic factors that contributed to their decision. Globally, they cited a slow economic recovery showing some signs of slowdown due to supply chain issues, as well as an expected tightening of monetary policies in the medium-term and rising energy and commodity prices. (Source: Reuters (English), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, Masrawy, CNBC Arabia, RT)

The leading credit rating agency Moody’s has kept its rating of B2 unchanged for the Egyptian banking sector, with a stable outlook. Moody’s expected the Egyptian economy to grow at 5.5% during FY21/22 on the back of infrastructure investments, tourism recovery, and strong household consumption spending. The agency said that conditions are supportive of banking activities, with financial inclusion initiatives and increasing adoption presenting a promising opportunity for banks. (Source: Egypt Today (English), al-Maal, al-Ahram, al-Watan, Akhbar al-Youm, al-Arabiya)

The CBE (Central Bank of Egypt) has reported the balance of payments figures for 1Q21/22, showing a total surplus of USD311mn versus a deficit of USD69mn in 1Q20/21. The non-oil trade balance deficit increased by 26% YoY to reach USD11bn partly due to higher imports of medical supplies & equipment. This drove the current account deficit to rise to USD4bn from USD2.8bn in 1Q20/21. Despite that, non-oil exports did increase considerably by USD1.3bn YoY to register USD6bn, driven by higher exports of fertilizers, cables, and plastic polymers. Furthermore, the service balance improved significantly due to a remarkable increase of USD2bn YoY in tourism revenues to reach USD2.8bn, as well as transport receipts which rose by 31% to sit at USD2.3bn. The capital & financial account also went up, with net inflows of USD6bn versus USD3.9bn in 1Q20/21. Remittances also went up by 1.5% to reach USD8.1bn, and net FDI increased by 3.7% to USD1.7bn. (Source: Daily News Egypt (English), Egypt Today (English), See News (English), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Shurouk, al-Watan, Akhbar al-Youm, Sada el-Balad, Sky News Arabia, CNN)

The Minister of Petroleum & Natural Resources reported that Egypt’s revenue from the export of petroleum products shot up by over 84% in 2021 to reach USD12.9bn. Most impressive were the export revenues of natural gas (including LNG) in particular, which skyrocketed to more than five times their 2020 levels to reach USD3.9bn. Crude oil exports also rose considerably by 32% to USD3.3bn. (Source: Reuters (English), Zawya (English), al-Maal, Amwal al-Ghad, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad, al-Arabiya)

The Minister of Planning & Economic Development revealed that she expects Egypt’s economy to grow by over 6% in the current fiscal year FY21/22. The previous official forecasted growth rate was 5.6%. During 1Q21/22, growth registered a stunning 9.8%, with the economic recovery from Covid in full force. (Source: Reuters (English), Zawya (English), al-Maal, al-Dustour, al-Sharq Business)

Today marks Egypt’s official return to the JPMorgan Emerging Market Bond Index (EMBI) after about 10 years of absence since the Egyptian Revolutions of the Arab Spring. Egypt is one of only two countries from the Middle East & Africa that are included in the index. Egypt has been hard at work for the past couple of years to conform to JPMorgan’s requirements for index inclusion. These requirements involve extending the duration of government debt, making adjustments to the yield curve, and increasing the holdings of foreigners in Egyptian government debt. JPMorgan had announced in October 2021 that they have approved the re-inclusion of Egypt in their index with an estimated weight of 1.85%. JPMorgan stated that 14 categories of Egyptian government bonds denominated in Egyptian Pounds are eligible for inclusion. These bonds have a total value of USD26bn, an average return of 14.9%, and durations between 9 months and 2 years. JPMorgan’s analysts estimated that Egypt’s local currency bond market would receive inflows ranging between USD1.4-2.2bn as a result of inclusion in the index. (Source: al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), al-Sharq al-Awsat (English), Arab News (English), al-Maal, Mubasher, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, al-Watan, Akhbar al-Youm, Masrawy, Sada el-Balad, al-Arabiya, CNN)

In its January 2022 World Economic Outlook Report update, the IMF (International Monetary Fund) has significantly raised its forecast for the growth of the Egyptian economy in 2022. The updated forecast expects 5.6% GDP growth in 2022, a considerable jump from the 5.2% forecast in October 2021. The forecast for the entire MENA region was also upgraded by 0.3pp to 4.4%, with Egypt comfortably outperforming that figure. According to the IMF, the world is forecasted to grow on average by 4.4%, emerging markets by 4.8%, and advanced economies by 3.9%. The Chief Economist at the IMF chose to speak about Egypt in particular when discussing the MENA region during the press conference for the launch of the January 2022 update of the report. She said that the MENA forecast’s upgrade is mainly driven by better prospects for oil-exporting countries due to higher oil prices. She said that on the other hand, there was no improvement in conditions for oil-importing countries, “…but there is one country that stands out in the group of the oil importers, and that is Egypt. And for Egypt, we have an upgrade of 0.4pp this year; so, we are projecting growth to be 5.6%. So, for the Egyptian economy, I think it’s fair to say that the impact of the pandemic has been well managed.” (Source: IMF (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), al-Maal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Akhbar al-Youm, Sada el-Balad, al-Sharq Business, al-Arabiya, CNN, RT)

The head of the Readymade Garments Export Council reported that exports from their industry shot up by 41% to reach USD2.5bn. This was due to a number of positive catalysts, such as the great benefits reaped by the industry from recent trade agreements that Egypt signed with other countries and blocs which provided customs reductions and exemptions. Another key catalyst was the steep three-fold increase in shipping costs witnessed during 2021, especially for shipments coming from China, one of the major global garment manufacturers. This led many international brands to relocate their factories from China to Egypt. Furthermore, export subsidies by the Egyptian government provided extra liquidity to domestic manufacturers to purchase raw materials and other working capital. As a result, there has been rapid expansion in the industry, which attracted 23 new factories in 2021, some of which were SMEs and entrepreneurial ventures. These new facilities provided 40,000 new job opportunities. The Readymade Garments Export Council is doing its part to stimulate the industry by expanding its services to include promotional and marketing activities in-person and on the internet. The council also participates in international and local exhibitions, provides direct export opportunities, facilitates bilateral meetings, and organizes workshops and training programs for export competitiveness and production efficiency. (Source: See News (English), Arab News (English), al-Maal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, Sada el-Balad)

The Minister of Finance announced that Egypt’s state budget has achieved a primary surplus of EGP3.2bn during 1H21/22. This was accomplished despite the negative economic effects of the Covid pandemic, and the consequent 30% rise in health expenditures as well as a 21% increase in education expenditures. The surplus was mainly attributed to a 16% increase in tax revenues. The Minister also revealed that for FY21/22, the government is targeting a primary surplus of 1.5% and an overall budget deficit of 6.6%. (Source: Reuters (English), Egypt Today (English), Arab News (English), al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Akhbar al-Youm, al-Sharq Business, al-Arabiya, Sputnik)

The Minister of Trade & Industry reported that Egypt’s non-oil exports in 2021 reached USD32.1bn, a rise of over 26% compared with 2020. Exports to E.U. countries hit USD9.2bn, up a stunning 56%. As for Africa, exports to the continent excluding Arab countries rose by 28%. The biggest importer of Egyptian goods in 2021 was the U.S. at USD2.4bn, followed by Saudi Arabia and the U.A.E.. As for petroleum exports, the Minister of Petroleum stated that the sector’s exports surpassed 2020, reaching over USD10bn in 2021. The impressive growth in exports is supported by a number of government initiatives aimed at invigorating exporting industries, including help with accessing new markets, raising competitiveness, and direct subsidies. Egypt is targeting to reach USD100bn in annual exports within the coming few years. The interim milestone is to achieve USD40bn by the end of 2022, an increase of 25% over 2021. (Source: Mubasher (English) (Arabic), Zawya (English), Egypt Today (English), See News (English), Xinhua (English), al-Maal, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, Akhbar al-Youm, Sada el-Balad, al-Arabiya, RT)

In its 2021 harvest report, Egypt’s New & Renewable Energy Authority reported that investments in renewable energy that are currently being development total USD3.5bn. These aim to generate an additional 3.6GW of energy, of which 78% is solar energy and 22% is wind energy. Total production of renewable energy in Egypt in 2021 reached 24GWh, sourced through 14GWh of hydropower, 5.4GWh of wind energy, and 4.5GWh of solar energy. Renewable energy production in Egypt has produced an amount of energy comparable to what would have been generated using 4mn tons of oil and equivalents, and reduced carbon dioxide emissions by around 10mn tons. (Source: New & Renewable Energy Authority (English), Daily News Egypt (English), al-Ahram, al-Youm al-Saabe, al-Watan)

The FRA (Financial Regulatory Authority) reported that issuances of securities during 2021 shot up by 44% versus 2020, reaching EGP280bn. The budding mortgage financing industry saw explosive growth of 138%, and investments made by insurance companies also increased by 22%. Financial leasing witnessed impressive growth as well, rising by 36%. The number of beneficiaries of MSME financing grew by 9.4% to reach 3.5mn individuals and entities. (Source: FRA, Arab News (English), Mubasher, al-Ahram, al-Youm al-Saabe, al-Watan, Akhbar al-Youm, MenaFN)

The Chairman of the Medicines Authority announced that Egypt’s exports of pharmaceuticals have grown by 35% in 2021. He added that local manufacturing of pharmaceuticals has been witnessing a boom, and a large proportion of all medicines available worldwide are now being manufactured in Egypt. (Source: Zawya (English), Egypt Today (English), al-Youm al-Saabe, al-Shurouk)

عقبات في طريق تنشيط سوق الصناديق العقارية - حابي 16.01.2022 كلمة السيدة رانا عدوي: "حان وقت تنشيط سوق الصناديق العقارية لتنويع قنوات التمويل"

The Minister of Petroleum & Mineral Resources revealed that Egypt is planning to build industrial cities in the Eastern Desert with a focus on mining and related activities. The goal is to add value to the mineral resources that are extracted, instead of exporting them in raw form at low margins. The plans involve establishing manufacturing complexes for phosphate fertilizers along with training facilities to improve the human capital involved in the activities. Auctions for mining concession areas for various resources have been updated with a requirement that the bidder must submit a detailed plan of how they will add value to the extracted resource. (Source: Egypt Today (English), Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Watan, al-Dustour, Masrawy, Akhbar al-Youm, al-Sharq Business)

The World Bank has raised its forecast for Egypt’s GDP growth to 5.5% in FY21/22 and the same for FY22/23, citing robust consumption demand and rising remittances within a controlled inflation environment. Furthermore, they attributed the higher forecast to increasing demand for Egyptian exports, steadily improving tourism revenues, and growth and development in the gas extraction sector, as well as upgrades in the ICT (information & communication technology) sector and its infrastructure. Contrastingly, the World Bank downgraded the global growth forecast to 4.1% in 2022. For the MENA (Middle East & North Africa) region, the forecasted economic growth was 4.4% in 2022 and then a slower 3.4% in 2023. (Source: World Bank (English) (Arabic), al-Ahram (English), Daily News Egypt (English), al-Maal, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Shurouk, Masrawy, Sky News Arabia, CNN, RT)

CAPMAS (The Center for Public Mobilization & Statistics) has announced inflation figures for December 2021. Annual headline inflation rose to 5.9% versus 5.6% in November 2021. This comes despite monthly inflation decreasing, with prices declining by 0.1% MoM. Core inflation, which does not include items that have volatile fluctuations such as food and energy, went up to an annual 6% in December 2021 versus recording 5.8% in November 2021. (Source: Reuters (English), Daily News Egypt (English), Zawya, al-Ahram, al-Sharq Business, al-Arabiya, al-Sharq al-Awsat, Sputnik)

The Minister of Finance stated that Egypt’s draft budget for FY22/23 targets GDP growth of 5.7% and a primary surplus of 2%. The GDP growth target will gradually rise after that to reach 6% in FY24/25. The budget also aims to reduce debt to under 90% of GDP in FY22/23, and to bring it down further to 82.5% by the end of FY24/25. Furthermore, the plan is to shrink the budget deficit to 6.1% in FY22/23, and to ultimately reduce it to 5.1% by FY24/25. (Source: Reuters (English), Forbes Middle East (English), al-Ahram (English) (Arabic), Egypt Today (English), See News (English), Arab News (English), al-Maal, Mubasher, al-Youm al-Saabe, al-Watan, al-Masry al-Youm, Akhbar al-Youm, Masrawy, al-Arabiya, al-Sharq al-Awsat, CNBC Arabia, CNN, RT, Sputnik)

The Chairperson of the Chemicals & Fertilizers Export Council announced that the chemicals & fertilizers industry accounted for 22% of Egypt’s non-oil exports. Exports of this industry have witnessed astonishing growth of 43% in 2021, reaching USD6.6bn. The E.U. (European Union) received the largest share of these exports at 29% of the total, followed by Asian and Arab countries which received 21% each. The largest importing countries were Turkey with about USD1bn, then Italy with USD450mn, followed by Argentina with 380mn. Fertilizers were the most popular product with USD2.2bn of exports, followed by chemicals with USD973mn, then detergents, paint, and glass. Egypt’s strategy is to grow these exports by at least 20% every year until 2025 to reach a minimum of USD10bn. This will be achieved through a multi-faceted plan that involves penetrating new markets, especially in Africa, through trade missions and various specialized and general exhibitions. The export council also facilitates business networking between Egyptian exporters and international importers by leveraging their vast industry contacts. On top of that, the government is giving extensive support to exporters through various programs and incentives. Numerous free trade agreements that have been signed also contributed to the growth in exports. (Source: Daily News Egypt (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad, al-Youm al-Saabe, al-Shurouk, al-Watan, Akhbar al-Youm, Sada el-Balad, Masrawy)

Egypt’s non-oil PMI (Purchasing Managers’ Index; compiled by Markit Economics) rose in December 2021 to 49.0 versus 48.7 in November 2021. The key drivers for the positive increase were an easing of inflationary pressures, with prices for both inputs and outputs rising at slower rates, as well as a more stable environment of business activity. Monthly inflation dropped at the fastest rate in over 3 years. Surges in global commodity prices eased, thereby reducing the impact of raw material costs on firms. Furthermore, export orders increased steeply, growing at the fastest rate since February 2021. On top of that, tourism has been gradually and solidly recovering, spurring an array of new business activities. On the other hand, the PMI was held back by unenthusiastic domestic demand mainly due to higher selling prices. It is worthy to note that Egypt’s PMI remains above its ≈10 year long-run average of 48.2. (Source: Markit Economics (English) (Arabic), Reuters (English), Mubasher (English) (Arabic), Zawya (English), al-Ahram (English), Egypt Today (English), Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Shurouk, Masrawy, CNBC Arabia, al-Sharq Business, al-Sharq al-Awsat, al-Arabiya)

The Prime Minister revealed that Egypt’s non-oil exports soared in 2021 to reach a new all-time high of USD31bn. This represents a whopping 27% increase over 2020. Some of the most popular Egyptian exports are clothing & textiles, fertilizers & chemicals, foodstuff & agricultural products, pharmaceuticals & medical products, and construction & engineering goods. A key factor that contributed to the impressive growth in exports is the government’s comprehensive export support program, which includes a recently reformed export burden rebate incentive system. Furthermore, Egypt’s strategic central geographic location makes shipping costs lower for many countries and regions. Currently, there are plans in effect to boost Egyptian exports over the coming years to multiples of their current levels. (Source: State Information Service (English), Xinhua Net (English), Business Today Egypt (English), al-Ahram (English) (Arabic), Egypt Today (English), Mubasher, Amwal al-Ghad, al-Youm al-Saabe, al-Shurouk, Masrawy, Sada el-Balad, CNBC Arabia, al-Arabiya, Sky News Arabia, Middle East News Agency, RT)

The Chairman of the SCA (Suez Canal Authority) stated that the Canal has achieved its highest revenue on record, bringing in USD6.3bn. This represents a 13% increase over 2020. Cargo passing through the canal also reached a new all-time high of 1.3bn tons, an increase of around 9% over 2020, compared with only 3.7% growth in the volume of global freight transported by sea. Another notable operating statistic for the Canal shows that the number of LNG carriers passing through rose by about 37% in 2021. It is worthy to note that about 7% of the world’s oil, and 12% of all international trade, flows through the Suez Canal. The Chairman of the SCA attributed this remarkable growth to the flexible and adaptive pricing and marketing policies implemented by the Canal. These results came amid the Covid pandemic’s negative effects on international trade, as well as the setback incident of March 2021, when the Ever Given ship ran aground and blocked the waterway for a few days. He also said that the SCA intends to realign its procedures and mechanisms with the International Maritime Organization’s new environmental preservation directives, including offering incentives to ships that are environmentally friendly. There are plans to further incorporate renewable energy as well, with the ultimate goal of making the Suez Canal a ‘green’ waterway. (Source: Reuters (English), Associated Press (English), France 24 (English) (Arabic), Xinhua (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Egypt Independent (English), See News (English), al-Sharq al-Awsat (English) (Arabic), Arab News (English), Mena FN (English), Suez Canal Authority, al-Maal, Amwal al-Ghad, al-Borsa News, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, al-Dustour, Masrawy, CNBC Arabia, al-Sharq Business, al-Arabiya, Sky News Arabia, CNN, Sputnik)

The Ready-Made Garments Export Council of Egypt reported that Egyptian exports of ready-made garments & apparel shot up by 38% YoY in 11M21 to reach USD1.7bn. The U.S.A. received the biggest share of these exports during 11M21, importing USD1bn with growth of 44% YoY. Exports to Europe also increased by 3% YoY to reach over USD0.3bn. The most popular product during 11M21 was t-shirts & polo shirts, with exports of USD455mn and growth of 34% YoY. (Source: State Information Service (English), Zawya (English), Daily News Egypt (English), Mena FN (English), Arab News (English), National Council for Media, Mubasher, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Dustour, al-Shurouk, Akhbar al-Youm, Masrawy)

The NDB (New Development Bank) announced that it has accepted Egypt as a member in the bank. The NDB was established by the BRICS countries (Brazil, Russia, India, China, and South Africa) in 2015 to finance projects relating to infrastructure and sustainable development in emerging economies. The bank has an authorized capital of USD100bn and accepts membership applications from all United Nations member countries. Egypt is the 4th new member in the NDB, following the U.A.E., Uruguay, and Bangladesh, after the bank began expanding its membership in September 2021. The Minister of Finance commented by saying that this comes as yet another vote of confidence for the Egyptian economy. Egypt’s membership in the NBD will further diversify its sources of funding, thus lowering Egypt’s financing cost for development projects and its overall debt service cost. (Source: NDB (English), China Government Portal (English), The Economic Times - India (English), Amwal al-Ghad (English) (Arabic), Zawya (English), Daily News Egypt (English), See News (English), Ministry of Finance, Mubasher, al-Ahram, al-Masry al-Youm, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, Sputnik, RT)

The Export Council for Medical & Pharmaceutical Industries reported that Egypt’s exports of medical & pharmaceutical products increased by 28% YoY in 11M21 to sit at USD602mn. The main drivers of this growth were exports of medicines and cosmetics, which increased by 31% and 33% respectively. During 3Q21, medical & pharmaceutical exports grew by 5.3% YoY. November 2021 alone saw exports from this sector rise by 3.2% YoY. (Source: Zawya (English), Daily News Egypt (English), Amwal al-Ghad, al-Borsa News, Aalam al-Maal, al-Ahram, al-Youm al-Saabe, al-Dustour, al-Shurouk, Masrawy)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians working abroad have shot up by 9% YoY in 9M21 to reach USD24bn. During 1Q21/22, remittances rose by 1.5% YoY to record USD8.1bn. During September 2021, remittances declined by 3% YoY. Earlier, CAPMAS (The Central Agency for Public Mobilization & Statistics) said that according to a recent World Bank report, Egypt ranked 6th on the list of countries that received the most remittances during 2020. Remittances represented 6.7% of GDP in 2020. (Source: Reuters (English), Amwal al-Ghad (English) (Arabic), Zawya (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Independent (English), Egypt Today (English), See News (English), Egyptian Gazette (English), al-Maal, Mubasher, al-Borsa News, Hapi Journal, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, Akhbar al-Youm, Masrawy, CNBC Arabia, al-Sharq Business, Middle East News Agency, al-Arabiya, Euronews Arabic, Sputnik Arabic)

According to Boost, a digital strategy consulting firm, e-commerce transactions in Egypt will hit USD5bn in 2021, while transactions across the Middle East will total around USD71bn. The breakdown of transaction types shows electronics are the most purchased products, representing 28% of the total value of transactions, followed by fashion at 21%, food & personal care at 19%, toys & hobbies at 19%, and furniture & appliances at 12%. When looking at the sellers, D2C (direct-to-consumer) companies like Amazon comprised 50% of the total transaction values. The consulting firm predicted that fashion will be the category witnessing the highest e-commerce demand in the near term due to its advanced supply chain and flow of new products. (Source: Amwal al-Ghad (English) (Arabic), Zawya (English), al-Ahram (English) (Arabic), Daily News Egypt (English), See News (English), al-Maal, Mubasher, al-Borsa News, Akhbar al-Youm)

  The CBE (Central Bank of Egypt) has decided to keep interest rates unchanged for the 9th time in a row. Interest rates remain at 8.25% for overnight deposits, 9.25% for overnight lending, and 8.75% as the main operations rate and the discount rate. The CBE sees these rates as appropriate at this time to achieve their target inflation rate of 7% ±2% in 4Q22 and medium-term price stability. The CBE cited declining headline inflation, rising core inflation, high GDP growth, stable unemployment levels, cautiously recovering global economic activity that is still hampered by supply chain disruptions and the emergence of the new Covid variant, and relatively stable energy and commodities prices. (Source: CBE (English) (Arabic), State Information Service (English), Reuters (English), Zawya (English), al-Ahram (English) (Arabic), Egypt Today (English), Daily News Egypt (English), al-Maal, Mubasher, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business, al-Arabiya, RT Arabic)

  The Minister of Planning & Economic Development stated that the government is forecasting 6-7% GDP growth for 2Q21/22. She also said that their growth forecast for FY21/22 is 5.5-5.7%, which would be the highest rate in the Middle East. This is in light of the Egyptian economy achieving the highest quarterly GDP growth rate in two decades, having reached 9.8% in 1Q21/22. It is worthy to note that Egypt was one of the few countries in the world to achieve positive growth during the Covid pandemic, growing by 3.3% in 2020. (Source: Reuters (English), Zawya (English), State Information Service, Mubasher, Hapi Journal, al-Youm al-Saabe, al-Shurouk (1) (2), Sada el-Balad, Akhbar al-Youm, CNBC Arabia, Sky News Arabia, RT Arabic)

The Minister of Trade & Industry reported that Egyptian exports have shot up by 25% YoY during 10M21 to sit at USD26bn. She partly attributed the rise to the export stimulus measures that have been implemented by the government. A key example are the multi-faceted export development programs that were executed, which leveraged existing trade partnerships with international markets, capitalized on preferential trade agreements, and provided export subsidies in various forms. Also, a new law regarding SMEs has been passed, which provides numerous benefits and incentives for these types of business, which represent over 70% of the Egyptian economy. More stimulation measures are on the way, including streamlined legislation regarding industrial land allocation, industrial licensing, and importer registration. These should provide a permanent boost to industrial investments by local as well as foreign investors. A comprehensive plan to boost exports to Africa in specific is under way, involving improving the transportation of exports, increasing exhibitions exposure, targeting new markets, developing border areas, increasing the reliance on local inputs, and understanding the value-adding process to enhance output quality, competitiveness, and profitability. (Source: Business Today Egypt (English), Egypt Today (English), Mubasher, al-Ahram, al-Youm al-Saabe, al-Dustour, Akhbar al-Youm)

Egypt’s Finance Minister announced that Egypt is eligible to join the JP Morgan Emerging Markets Government Bond Index by the end of January 2022. Egypt will join with 14 government bonds valued at a total of USD26bn, and should have an estimated weight of 1.85% in the index. This will give further credibility to Egyptian sovereign bonds, increasing foreign and local investments in the fixed-income instruments. It is expected that this inclusion will bring in at least USD1bn in new investments in government-issued securities, and contribute to reducing the cost of Egypt’s public debt. Egypt will be the second country from the Middle East and Africa to join the index alongside South Africa. On a related note, Egypt will also join the JP Morgan ESG Index (ESG stands for Environmental, Social, and Governance) concurrently with an estimated weight of 1.18% based on Egypt’s green bond issuance back in October 2020. (Source: Zawya (English), al-Ahram (English) (Arabic), Business Today Egypt (English), Egypt Today (English), Arab News (English), National Council for Media, al-Maal, Mubasher, Amwal al-Ghad, al-Shurouk, al-Watan, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business, Middle East News Agency, al-Sharq al-Awsat, Sputnik Arabic, RT Arabic)

CAPMAS (The Center for Public Mobilization & Statistics) released Egypt’s inflation figures for November 2021. Headline urban inflation came in at 5.6%, down from 6.3% in October 2021. Month over month inflation came in at only 0.1% in November 2021 versus 1.5% in October 2021. Nationwide inflation registered 6.2% in November 2021 versus 7.3% in October 2021. One of the main drivers of the slowdown in inflation was a considerable drop in the prices of food by 13%, compared to a 23% surge in October 2021. On the other hand, the CBE (Central Bank of Egypt), which has a different method for measuring inflation, reported core inflation of 5.7% in November 2021, up from 5.2% in October 2021. Core inflation does not include volatile items such as food, which witnessed price drops in November 2021. The current rate of inflation is still in the lower end of the CBE’s target inflation range of 5-9%. (Source: Zawya (English), Business Today Egypt (English), Amwal al-Ghad (English) (Arabic), Egypt Today (English), See News (English), Arab News (English), al-Maal, Mubasher, Economy Plus Me, al-Shurouk, Sada el-Balad, CNBC Arabia, al-Sharq Business, CNN Arabic, RT Arabic, al-Arabiya)

CAPMAS (The Center for Public Mobilization & Statistics) reported that Egypt’s trade deficit during September 2021 dropped by 23% YoY to sit at USD2.4bn. Exports shot up by 37% YoY during September 2021 mainly due to YoY increases in the exports of items such as fertilizers, up 90%, iron rods up by 57%, food preparations up by 32%, and ready-made garments up by 23%. On the other hand, imports increased by only 4%. (Source: Zawya (English), Egypt Today (English), Daily News Egypt (English), al-Maal, Mubasher, Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Shurouk, al-Watan, Sada el-Balad, CNBC Arabia, al-Sharq Business)

The Minister of Business Sector revealed that Egypt’s state-owned business sector companies have managed to shrink their debt load by 77% within 3 years. Settlements were negotiated with almost all creditors to eliminate debts, which included electricity and petroleum dues. The combined debt of these entities is now EGP10bn, with most of it consisting of taxes. There are currently 118 state-owned business sector companies, with current efforts by the government aiming at merging some of them to bring the total down to 82, while driving all of them to becoming profit-making. (Source: Zawya (English), Egypt Today (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad, Economy Plus Me, al-Masry al-Youm, al-Dustour, Akhbar al-Youm, Sada el-Balad, Masrawy, al-Sharq Business)

The Suez Canal Economic Zone announced that a trial run of the freight train linking Ain el-Sokhna Port with West Port Said Port has been conducted successfully. They also said that a comprehensive plan has been made to address the limited flow of container traffic through West Port Said Port by enhancing the integration of ports in the region. The plan was formulated by the Suez Canal Economic Zone in partnership with DP World, the operator of the piers in Sokhna Port, as well as the Customs Authority, in order to ensure that investors are furnished with the best possible climate for their businesses to flourish. (Source: State Information Service (English) (Arabic), Amwal al-Ghad, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, Masrawy)

CAPMAS (The Center for Public Mobilization & Statistics) reported that Egyptian exports have shot up by 40% YoY during 9M21 to reach USD29.7bn. During the same period, imports rose by only 16%. The G20 bloc was the biggest recipient of Egyptian exports, followed by the E.U. then Arab countries. Exports to China increased by 111%, to India by 82%, to Spain by 80%, to Italy by 70%, to the U.S. by 64%, to Libya by 61%, to the U.K. by 51%, to France by 51%, to Saudi Arabia by 33%, and to Turkey by 25%. The most exported goods, in order of value, were fuels and mineral oils, plastics and related products, electrical and mechanical machines and devices, iron and steel and related products, and ready-made garments. In August 2021, Egypt’s trade deficit had shrunk by 18% YoY. (Source: Mubasher (English), Zawya (English), al-Ahram (English) (Arabic), See News (English), al-Maal, Amwal al-Ghad, al-Borsa News, Economy Plus Me, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, Akhbar al-Youm, al-Sharq Business)

Egypt has officially unveiled the Avenue of Sphinxes in Luxor in a historic celebration. The festivities involved ceremonies that were performed by the Pharaohs thousands of years ago, and were extended throughout the city in land, air, and river shows. This event will be one among many that will become a trend in the promoting of Egypt as one of the prime touristic destinations in the world, and will dramatically increase the inflow of tourists. The Avenue of Sphinxes, also known as Road of the Rams, connects Karnak Temple with Luxor Temple over a distance of 2.7km. It has over 1,200 statues of different dynasties that ruled Ancient Egypt, and was the main venue for the yearly Opet Festival witnessed by Ancient Egyptians. The ceremony was attended by prominent figures from Egypt and internationally, and over 200 news crews and bloggers from all over the world. (Source: State Information Service (English), BBC (English) (Arabic), CNN (English) (Arabic), NBC (English), CBS (English), ABC (English), Euronews (English) (Arabic), DW (English) (Arabic), Sputnik (English), South China Morning Post (English), Greek Reporter (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), al-Maal, Mubasher, al-Borsa News, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, al-Shurouk, al-Watan, Sada el-Balad, al-Sharq News, Sky News Arabia, al-Sharq al-Awsat, RT)

The Minister of Planning & Economic Development reported that Egypt’s GDP grew by 9.8% in 1Q21/22. This is in comparison to 0.7% growth in 1Q20/21. The current rate of economic growth is the highest in two decades. The Minister said that the economy is expected to grow by 5.5-5.7% during FY21/22. The highest growth was witnessed in the hospitality sector (hotels and restaurants), which grew by 182%. The Suez Canal’s revenues also showed impressive growth of 20%, as well as the telecommunications sector which grew by over 16%. Furthermore, the manufacturing sector had its best quarter in two decades, growing by 15%. Construction also grew by 11%. The sectors that contributed the most to GDP in 1Q21/22 were manufacturing, agriculture, trade, and real estate. (Source: Ministry of Planning & Economic Development (English) (Arabic), Reuters (English), Amwal al-Ghad (English) (Arabic), Zawya (English), Egypt Today (English), Daily News Egypt (English), al-Sharq al-Awsat (English), al-Maal, Mubasher, al-Borsa News, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Shurouk, Akhbar al-Youm, Sada el-Balad, CNBC Arabia, al-Arabiya, Euronews)

The Minister of Planning & Economic Development announced that the government has upgraded its forecast for GDP growth for FY21/22 to 5.6%, up from the previous forecast of 5.4%. During FY20/21, GDP growth registered 3.3% as the negative effects of the Covid pandemic took their toll, although the Egyptian economy managed to weather the repercussions better than most countries worldwide. (Source: Ministry of Planning & Economic Development (English), Reuters (English), Mubasher (English), Zawya (English), Egypt Independent (English), al-Sharq al-Awsat (English), al-Maal, Mubasher, Amwal al-Ghad, al-Masry al-Youm, al-Dustour, Akhbar al-Youm, CNBC Arabia, al-Sharq Business, al-Arabiya, RT)

The Minister of Communication & Information Technology revealed that Egypt is currently building 17 new smart cities. These cities will rely fully on technological solutions and integrated connectivity. He also said that 58mn citizens in 25,000 villages across Egypt will have internet services available to them within the coming 3 years. (Source: Zawya (English), Arab News (English), al-Maal, Amwal al-Ghad, al-Borsa News, al-Ahram, al-Watan)

The Minister of Trade & Industry reported that Egyptian exports of engineering goods increased by 42% YoY during 9M21 to sit at USD2.2bn. The biggest importing countries included the U.K., the U.A.E., France, Saudi Arabia, and Slovakia. (Source: Egypt Independent (English), Ministry of Trade & Industry, al-Maal, Economy Plus Me, al-Ahram, al-Masry al-Youm)

The FRA (Financial Regulatory Authority) has issued the rules and regulations that will govern the activities of SPACs (Special Purpose Acquisition Company). The rules were crafted in line with the best practices followed in major international markets. SPACs are established with the purpose of acquiring other companies, especially emerging companies that would have difficulty listing on the stock market. It is expected that one of the most attractive sectors for these kinds of companies will be fintech and IT. Some of the rules are that the SPAC’s capital can be no less that EGP10mn, and that it must commit to increasing its capital through a public or private offering within 1 month of its official registration. Also, individuals must own at least 50% of the company, institutions must own at least 25%, and the founders or sponsors must own at least 5%. The founders or sponsors must also contribute at least EGP10mn at the time the company is established. The SPAC must make its acquisition within 2 years, either through acquiring 100% of the company or a controlling stake or at least an absolute majority. The value of the acquired company must represent at least 80% of the funds that the SPAC raised in its capital increase offering, as well as any additional financing or purchase of shareholders’ shares. (Source: Business Today Egypt (English), Egypt Today (English), Daily News Egypt (English), FRA (1) (2), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Shurouk, al-Sharq Business, al-Arabiya)

CAPMAS (The Center for Public Mobilization & Statistics) revealed that Egypt’s exports to Nile Basin countries shot up by 34% YoY during 9M21 to reach USD1.1bn. On the other hand, Egypt’s imports from Nile Basin countries only rose by 12% YoY in 9M21 to register USD497mn. The total value of trade between them increased by over 26% YoY during 9M21. Sudan and Kenya were the biggest importers during that period. The products that were exported the most to Nile Basin countries were plastics, sugar, and the category that includes cement, salt, sulfur, and stones. Some of Egypt’s main imports from the Nile Basin were coffee, tea, spices, and animals.

The CBE (Central Bank of Egypt) reported that remittances from Egyptians working abroad increased by over 10% YoY during 8M21 to reach USD21.4bn. August 2021 alone saw remittances rise by 12% YoY to sit at USD2.7bn. During FY20/21, remittances totalled USD31.4bn. (Source: Reuters (English), Zawya (English) (Arabic), Egypt Today (English), al-Maal, Mubasher, Amwal al-Ghad, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, al-Watan, al-Arabiya)

CAPMAS (The Center for Public Mobilization & Statistics) revealed that the value of trade between Egypt and the AU (African Union) shot up by 36% YoY during 9M21. Egypt’s exports to the AU registered USD3.9bn, an increase of 34% YoY, while imports were USD1.5bn, up 30%. The top countries that took in Egyptian exports were, in order of value imported, Libya, Sudan, Morocco, Algeria, and Kenya. (Source: State Information Service (English), al-Ahram, al-Youm al-Saabe, al-Shurouk, Akhbar al-Youm)  

  The FRA (Financial Regulatory Authority) has decided to slash trading fees by 20% for transactions performed in the stock market. This comes as part of a number of measures being implemented to stimulate trading activity and attract new investors and traders. (Source: Reuters (English), Egypt Today (English), FRA, Mubasher, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Dustour, Akhbar al-Youm, al-Arabiya)  

  The Minister of Petroleum announced that exports of natural gas from Egypt to Lebanon will commence in 2022. The exports are awaiting the completion of maintenance being performed on the pipeline. Egypt will export 60-65mn cubic feet/day of gas to Lebanon via Jordan and Syria through the Arab Gas Pipeline. This pipeline was built over three stages, with the first stage commencing operations in 2003. (Source: Zawya (English), Egypt Today (English), Arab News (English), Akhbar al-Youm, al-Sharq Business, al-Sharq al-Awsat, Sky News Arabia, Sputnik, RT)

  Russia has revealed its master plan for the new industrial zone it will establish in the Suez Canal Economic Zone, specifically in the city of al-Ain al-Sokhna. Egypt and Russia signed an agreement in 2018 to build a special economic zone with incentives for Russian enterprises that operate in the zone. The project is expected to take 13 years to be completed, but companies can begin producing products from 2022. Around 50 resident companies are expected to begin operations within the first 2-3 years. The key incentives provided are preferential tax treatment, preferential energy prices, rental discounts, and ready-made sites. Some of the potential Russian resident companies are in the industries of mechanical engineering, chemicals, pharmaceuticals, and metallurgy. The Russian government’s investments in developing their zone’s infrastructure are expected to reach USD190mn, with total private investments projected to range around USD7bn. (Source: Zawya (English), See News (English), TASS (English), al-Youm al-Saabe, al-Shurouk, Sputnik, RT)

In its most recent report, the OAPEC (Organization of Arab Petroleum Exporting Countries) revealed that Egypt had the biggest growth in the volume of natural gas exports among all Arab countries. Egypt’s exports of natural gas soared by 900% YoY in 3Q21, reaching around 1mn tons. The report attributed the steep growth in export volumes to the re-opening of the Damietta gas liquefaction facility in February 2021. Having been inactive for 8 years, the facility has a production capacity of 5mn tons/year. This was in parallel to the continuously operational Idku facility, which has a production capacity of 7.2mn tons/year. Among the countries that import Egyptian LNG (Liquefied Natural Gas) are China, India, Pakistan, Spain, Belgium, and Kuwait. (Source: See News (English), al-Maal, al-Ahram, al-Youm al-Saabe, al-Dustour, Akhbar al-Youm, Sada el-Balad, al-Arabiya)

  In its most recent Arab Economic Prospects report, the AMF (Arab Monetary Fund) expected that Egypt’s GDP growth will reach 5.4% in 2022. Their forecast is contingent on the global economic recovery from the Covid pandemic, which should increase tourism revenues and demand for Egyptian exports. The report referred to Egypt’s ability to achieve positive economic growth during the pandemic, a feat that only a few countries were able to accomplish worldwide. They attributed this growth to the continuous and comprehensive economic reforms that have been implemented, as well as the reforms that are yet to come. Coupled with the swift and targeted stimulus measures implemented by the government during the pandemic, these factors allowed the Egyptian economy to triumph over the pandemic’s negative economic effects with its strength and resilience. (Source: Arab Monetary Fund, al-Ahram (English))  

The Egyptian Cabinet has decided to support capital markets through a number of incentives aimed at making the markets more attractive to investors. These include reduced trading fees, a streamlined capital gains tax for locals that takes into consideration the investment’s opportunity cost, and lower taxes on mutual funds and IPO profits. The incentives also significantly simplify the tax payment process, deducting the capital gains tax automatically as opposed to having each investor open a file with the tax authority. (Source: Reuters (English), Zawya (English), al-Ahram (English) (Arabic), Daily News Egypt (English), See News (English), Arab News (English), al-Maal, Mubasher, Amwal al-Ghad, Aalam al-Maal, al-Borsa, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, al-Watan, Akhbar al-Youm, al-Sharq Business, RT, CNBC Arabia)

In the most recent trade data released by CAPMAS (The Center for Public Mobilization & Statistics) for August 2021, the numbers showed that Egypt’s trade deficit contracted by 18% to reach USD2.9bn. The data showed that the value of exports increased by 51%, while the value of imports only increased by 8%. The increase in exports was mainly due to higher exports of fertilizers, food preparations, plastics, and ready-made clothes. (Source: Daily News Egypt (English), Egypt Today (English), Business Today Egypt (English), Mubasher, Hapi Journal, al-Watan, Akhbar al-Youm, al-Arabiya)

CAPMAS (The Center for Public Mobilization & Statistics) released inflation data for October 2021, which indicated that urban inflation declined to 6.3%, down from 6.6% in September 2021. Monthly inflation figures showed that prices went up by 1.5% between September 2021 and October 2021. As for core inflation, that increased to 5.2% in October 2021, from 4.8% in September 2021. Global supply chain disruptions have been causing inflationary pressures worldwide in recent months. Rising energy and food prices also contributed to inflation figures. (Source: Reuters (English), al-Arabiya (English) (Arabic), al-Maal, Mubasher, al-Ahram, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad, al-Sharq Business, CNBC Arabia)

The Minister of Trade & Industry reported that Egypt’s non-oil exports to the E.U. (European Union) soared during 8M21, rising by 38% YoY to sit at EUR4.1bn. Some of the top items that witnessed growth in their exports included plastics & related products, rising by 50%, fertilizers rising by 33%, aluminum rising by 28%, and iron & steel rising by a whopping 431%. Other items were also popular, such as fruits, electrical equipment, textiles & clothing, glass products, cotton, and ceramics. Some of the top countries in Europe that imported Egyptian products include Italy, Spain, Germany, and the Netherlands. Egyptian exports to 23 European countries have witnessed growth. It is worthy to note that a free trade agreement was enacted between Egypt and the E.U. in 2004, while an additional agreement on agricultural, processed agricultural, and fisheries products became effective in 2010. By 2020, the E.U. represented about 25% of Egypt’s total trade volume. 22% of Egypt’s exports go to the E.U., while 26% of Egypt’s imports are from the E.U.. (Source: Ministry of Trade & Industry, al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Independent (English), Arab News (English), International Finance Magazine (English), al-Maal, Amwal al-Ghad, Economy Plus Me, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Dustour, al-Sharq Business)

During the recent COP 26 environment summit in Glasgow, the Minister of Petroleum & Mineral Resources revealed that Egypt aims to generate 42% of its total energy needs from renewable sources by 2030. This will be achieved through expanding renewable energy generation from solar and wind sources, increasing the use of natural gas as a transitional energy source, and implementing a national hydrogen strategy that begins with blue hydrogen production and ultimately reaches green hydrogen production. As evidence of this transition, since the year 2000 the consumption of natural gas has increased 3 times to reach 65% of total hydrocarbon consumption versus 40% in 2000. Numerous other statistics point to an increase in the sourcing of energy from renewable sources in Egypt. (Source: Ministry of Petroleum, Renewables Now (English), al-Masry al-Youm, al-Shurouk, al-Dustour, al-Arabiya, EuroNews, Sputnik)

IHS Markit’s Egypt PMI (Purchasing Managers’ Index) decreased slightly in October 2021 to 48.7, from 48.9 in September 2021. The slowdown in the recovery of business activity was attributed to global supply chain problems that led to shortages in inventories and reductions in output. Another consequence of the global supply chain disruptions, which is being witnessed by economies worldwide including Egypt, is a rapidly escalating rise in the purchasing costs of production inputs. This consequently led to rising selling prices as well, with inflation across-the-board expected to endure for at least the coming few months. Despite all that, October’s PMI remains above Egypt’s historical average score. Moreover, employment levels rose to their highest in 2 years, reflecting a labour market that is strengthening further. (Source: IHS Markit (English), Reuters (English), Mubasher (English) (Arabic), Zawya (English), al-Ahram (English), Amwal al-Ghad, Hapi Journal, Economy Plus Me, CNBC Arabia)

During 9M21, Egypt’s exports of cement have shot up by 202% YoY, while exports of iron & steel also skyrocketed by 193% YoY. Cement exports reached 76 countries, including 22 additional countries versus 9M20. The top importers included Spain as well as a large number of African countries. Iron & steel witnessed a similar story, with exports reaching 77 countries, including 19 additional countries versus 9M20. The top importer by far was Italy, and other top importers included Spain, the U.S., Canada, Brazil, Portugal, Saudi Arabia, and a number of African countries. Exports of iron & steel to Italy alone have increased during 9M21 by a whopping 994% YoY, and to the U.S. by 993%. (Source: See News (English), al-Maal (1) (2), Mubasher (1) (2), Amwal al-Ghad (1) (2), al-Borsa News (1) (2), Economy Plus Me, al-Ahram (1) (2), al-Youm al-Saabe (1) (2), al-Masry al-Youm (1) (2), al-Shurouk, al-Arabiya)

The FRA (Financial Regulatory Authority) has decided to allow the establishment, licensing, and listing of SPACs (Special Purpose Acquisition Vehicles). SPACS are entities that raise capital through an IPO in order to acquire or merge with other companies. According to the Chairperson of the FRA, the most attractive industries currently for these types of entities are in the technology and fintech fields. (Source: FRA, Mubasher (English) (Arabic), Daily News Egypt (English), al-Maal, Amwal al-Ghad, Zawya, Economy Plus Me, al-Youm al-Saabe, al-Watan, Sada el-Balad)

The CBE (Central Bank of Egypt) has decided to keep interest rates unchanged for the 8th consecutive time. The overnight deposit rate, overnight lending rate, rate of main operation, and discount rate were kept at 8.25%, 9.25%, 8.75%, and 8.75%, respectively. The CBE sees these rates as suitable for achieving its target inflation rate of 7% +/–2% in 4Q22 and medium-term price stability. The factors that the CBE took into consideration when making this decision included rising domestic inflation, high GDP growth, and a fluctuating and uneven global economic recovery from the pandemic. (Source: CBE (English) (Arabic), Reuters (English), Amwal al-Ghad (English), Business Today Egypt (English), Zawya (English), Egypt Today (English), See News (English), al-Maal, Amwal al-Ghad, Economy Plus Me, Hapi Journal, al-Aalam al-Youm, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, Akhbar al-Youm, Sada el-Balad)

The World Bank decided to support Egypt’s recovery from the pandemic by providing a loan of USD360mn. The funding aims to contribute to Egypt’s drive towards inclusive and sustainable growth. The Bank cited the stabilization effect that Egypt’s first phase of economic reforms had on the economy, giving it the necessary resilience and solid finances that allowed it to weather the Covid pandemic’s negative effects on economies worldwide. The Bank is hopeful that the second phase of reforms will create more jobs and furnish the right environment for the private sector to lead the country’s sustainable recovery and growth. The reforms also address the long-term structural challenges that have held back the Egyptian economy in the past, including the sustainability of the state’s finances, private sector development, and enhancing the economic inclusion of women. Furthermore, the Bank also noted the fact that Egypt was one of the few countries worldwide that has managed to produce positive economic growth during the pandemic. This was due to the reforms as well as swift and targeted fiscal and monetary policy responses. (Source: World Bank (Egypt), Reuters (English), Mubasher (English), Zawya (English), al-Ahram (English) (Arabic), Egypt Today (English), Egyptian Gazette (English), al-Sharq al-Awsat (English) (Arabic), al-Maal, Economy Plus Me, al-Masry al-Youm, Akhbar al-Youm, al-Sharq Business, MSN, al-Arabiya, Sky News Arabia, Sputnik, RT)

CAPMAS (The Center for Public Mobilization & Statistics) reported that trade between Egypt and the G20 countries shot up by over 39% YoY in 1H21 to reach USD9bn. Meanwhile, Egypt’s imports from the G20 increased by 14% YoY during the same period. This resulted in a total volume of trade between them of USD36bn in 1H21. The largest importer of Egyptian products during 1H21 was Italy, followed by the U.S., Saudi Arabia, India, Turkey, and China, in order of value imported. On the other hand, China dominated Egypt’s imports, followed distantly by the U.S., then Saudi Arabia, Germany, and Turkey.

S&P (Standard & Poor’s), one of the leading global sovereign credit ratings agencies, has affirmed Egypt’s credit rating at ‘B’ for the 4th time since the beginning of the Covid pandemic. The Minister of Finance commented on the positive rating, saying that it confirms the opinions of other ratings agencies and international institutions that there is strong global confidence in the strength of the Egyptian economy. Part of this confidence stems from their belief that the government’s comprehensive economic, financial, and structural reforms are charting a sustainable, inclusive high-growth trajectory for the Egyptian economy. Recent reforms have resulted in a solid and diverse financing base, high foreign exchange reserves, and increasingly competitive exports. Furthermore, the government’s deliberate, balanced, and flexible response to the pandemic’s adverse economic effects has been praised by many institutions including the IMF (International Monetary Fund). The Egyptian economy managed to achieve 3.3% GDP growth during FY20/21, in the height of the pandemic. This level of growth is one of the highest in the region and worldwide during this turbulent year. S&P forecasts 5.5% GDP growth for Egypt in FY23/24. Their forecasts for FY21/22 include the budget deficit narrowing to 6.8% (vs. 7.4% actual in FY20/21 and 8% in FY19/20), with a primary surplus of 1.5% (vs. 1.45% actual in FY20/21), and a public debt-to-GDP ratio of 86%. (Source: Standard & Poor’s (English), Mubasher (English) (Arabic), Zawya (English), Business Today Egypt (English), Egypt Today (English), See News (English), Ministry of Finance, al-Maal, Amwal al-Ghad, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, CNBC Arabia, al-Arabiya, Sputnik)

Egypt and the OECD (Organization for Economic Cooperation & Development) have signed a MoU (memorandum of understanding) regarding launching a 3 year program to support structural reforms in Egypt. Under the program, the OECD will provide analysis, advice, and guidance that will contribute to the design and implementation of government policies aimed at addressing Egypt’s economic challenges. The program will also contribute to Egypt’s alignment with OECD policy standards. This program will improve Egypt’s competitiveness in the global economy, as well as increase its integration into the global economic system. The main areas of collaboration will be inclusive and sustainable economic growth, innovation and digital transformation, governance and anti-corruption, statistics, and sustainable development. Throughout the program, there will be a strong emphasis on gender equality, the inclusion of women and young people, and SME formalization. The agreement was signed in Paris by the Egyptian Prime Minister and the OECD Secretary-General. The Egyptian Prime Minister was accompanied by a number of relevant Ministers. (Source: OECD (English), State Information Service (English), Mubasher (English) (Arabic), Zawya (English), Daily News Egypt (English), National Council for Media, al-Maal, Amwal al-Ghad, al-Borsa News, Hapi Journal, al-Ahram, al-Masry al-Youm, al-Shurouk, al-Arabiya, al-Sharq al-Awsat)

The Egyptian President has announced that Egypt’s national state of emergency will not be extended for the first time in years. The state of emergency was imposed in April 2017 after church bombings and has been extended regularly since then. This decision is expected to spur increased positive sentiment about the Egyptian economy and its prospects, and result in a greater influx of foreign investments. (Source: State Information Service (English), Reuters (English), Associated Press (English), al-Ahram (English) (Arabic), Egypt Today (English), Daily News Egypt (English), al-Arabiya (English) (Arabic), al-Maal, Mubasher, al-Youm al-Saabe, al-Masry al-Youm, Sada el-Balad, Middle East News Agency, CNN Arabic, BBC Arabic, France 24 Arabic, Euronews Arabic, Sky News Arabia)

The Egyptian Environment Minister revealed that 30% of all government projects in Egypt will be green projects by the year 2024. The goal is to reach 100% by 2030. In the current fiscal year alone, the Minister said that Egypt has spent EGP447bn on 691 green projects in various sectors, representing 15% of total government investments. (Source: Zawya (English), Arab News (English), al-Youm al-Saabe, Akhbar al-Youm, al-Shurouk)

Fitch Ratings has affirmed Egypt’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at B+ with a stable outlook. The leading ratings agency attributed the positive rating to Egypt’s successful fiscal and economic reforms. Furthermore, they cited the resilience and stability of the Egyptian economy throughout the Covid pandemic as a key driver of the positive rating. Some of the constraints on the rating include large fiscal deficits, a high government debt to GDP ratio, and reliance on short-term portfolio inflows. As for their economic forecast, Fitch expects the Egyptian economy to grow by 5.5% in FY22-FY23. Egypt’s economic growth performed better during the pandemic than almost all the economies that are rated by Fitch, according to the ratings agency. This remarkable performance was attributed by Fitch to robust domestic demand, the production of natural gas, and the government’s massive public investment program. This offset the hit taken by the tourism and export-oriented sectors due to the pandemic’s negative economic effect. The recent recovery in global demand for tourism, and the increasing tourist inflows to Egypt, will have a significant positive effect on further economic growth. Fitch also expects the government debt to GDP ratio to improve going forward. (Source: Fitch Ratings (English), Mubasher (English) (Arabic), Zawya (English), Egypt Today (English), al-Sharq al-Awsat (English) (Arabic), State Information Service, al-Maal, Amwal al-Ghad, Hapi Journal, al-Borsa News, Economy Plus Me, al-Aalam al-Youm, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Watan, Sada el-Balad, al-Sharq Business, al-Arabiya)

The Egyptian government has completely removed hotel occupancy rate restrictions, allowing hotels to operate at full capacity going forward. The restrictions were implemented in March 2020 at the onset of the Covid pandemic to ensure social distancing and limit the spread of the virus. The recent decision will have a strong positive effect on tourism activity and all related sectors of the economy. (Source: Egypt Independent (English), al-Maal, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, al-Watan, al-Masry al-Youm, al-Dustour, al-Arabiya)

The Minister of Finance announced that the government is planning on achieving 5.4% GDP growth in the current fiscal year, FY21/22. Furthermore, other targets include a primary surplus of 1.5% of GDP and a reduction in the budget deficit down to 6.7%. Debt as a percentage of GDP is expected to decline due to the diversification of the sources of financing for the government, such as issuing Eurobonds, green bonds, and sukuk. Debt service to GDP is expected to drop to 8.1% this fiscal year versus 8.8% last year. Also, the average debt lifetime will be extended to 3.7 years versus 3.0 years last year. Tax revenues are expected to rise by 2% of GDP within 4 years. Digitization projects have already resulted in an 11% increase in income tax revenue and a whopping 47% rise in value-added tax revenue. (Source: Reuters (English), Zawya (English), Egypt Today (English), al-Sharq al-Awsat (English) (Arabic), Amwal al-Ghad, al-Borsa News, al-Masry al-Youm, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Watan, al-Dustour, Sada el-Balad, al-Arabiya)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians abroad recorded USD18.7bn, a 10% YoY increase. For FY20/21, remittances grew by 13% YoY to reach a record USD31.4bn. This indicates that Egyptians working abroad are generally very confident about the performance of the nation’s economy. (Source: Zawya (English), Egypt Today (English), See News (English), al-Maal, Hapi Journal, Economy Plus Me, al-Borsa News, Akhbar al-Youm, al-Youm al-Saabe, al-Shurouk, al-Dustour, Sada el-Balad, CNBC Arabia, al-Sharq Business, al-Arabiya)

The Minister of Communications & I.T. witnessed the signing of an agreement between Telecom Egypt, the main national telecommunications operator in Egypt, and Nokia to establish infrastructure for IoT (internet of things) services. The new system will allow Telecom Egypt to provide IoT services at affordable prices versus roaming rates which are much more expensive. Nokia will also assist Egypt with the development of IoT projects, which will contribute to the automation of projects and yield all the associated benefits and cost-savings of implementing this new technology. (Source: Ministry of Communications & I.T., State Information Service (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), See News (English), Arab News (English), Mubasher, Amwal al-Ghad, Economy Plus Me, Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk)

The CBE (Central Bank of Egypt) released BOP (balance of payments) data for FY20/21. The BOP skyrocketed to a surplus of USD1.9bn, up from a deficit of USD8.6bn in FY19/20. This remarkable rise came due to the capital & financial account witnessing a net inflow of USD23bn versus only USD5.4bn in FY19/20. The upsurge in foreign portfolio investments reflects the confidence of foreign investors in the Egyptian economy, at a time when there is continuing uncertainty about the global economic recovery from the Covid pandemic. On the other hand, the current account deficit increased to USD18bn, up from USD11bn in FY19/20. This can be primarily attributed to the sudden drop in tourism revenues due to the pandemic, as well as a slow recovery in the sector both domestically and globally, as leisure travel gradually and cautiously picks up. Another contributor to the increase in the current account deficit is a rise in the non-oil trade balance deficit. This was mainly due to increased imports of intermediate goods, raw materials, and investment goods, all of which contribute to higher economic growth. (Source: CBE (English) (Arabic), State Information Service (English), al-Maal, Amwal al-Ghad, Mubasher, al-Borsa News, Hapi Journal, al-Aalam al-Youm, al-Ahram, Akhbar al-Youm, al-Shurouk, al-Dustour, Sada el-Balad, Middle East News Agency)

Egypt’s Prime Minister witnessed the signing of an agreement to produce 50-100MW of green hydrogen. The agreement was signed between the SFE (Sovereign Fund of Egypt), the Norwegian renewable energy company Scatec, the U.A.E.’s ADNOC, and Vertglobe. The green hydrogen will be used as a feedstock for the production of green ammonia. The government will provide the renewable energy required for production, with plans to build new solar and wind energy generation facilities in the future to power the project. Production is expected to commence in 2024. Egypt aims to become a global green hydrogen hub. Under the agreement, Scatec will build and operate a production facility for green hydrogen, and the output will be given to a subsidiary of Vertglobe which will use it to produce over 45 tons of green ammonia per year.

Egypt and Greece have signed an MOU (memorandum of understanding) to establish an electrical interconnection between the two countries through subsea electric cables. The link will allow for the exchange of electricity between Egypt and Greece, extending to the rest of the E.U. (European Union). This will contribute greatly to the security and reliability of energy supply and come to the rescue during power interruptions and emergencies, as well as enhancing regional cooperation. The project will also contribute to integrating renewable energy into the networks of both countries as well as the wider E.U., as this type of energy is abundant in Africa and is witnessing increasing investments in Egypt. This will be the first subsea power link between Africa and Europe. (Source: Reuters (English), BNN Bloomberg (English), State Information Service (English), Mubasher (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), Greek Reporter (English), PV Magazine (English), al-Sharq al-Awsat (English), Arab News (English), State Information Service, National Council for Media, al-Maal, Mubasher, Hapi Journal, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Shurouk, al-Watan, al-Masry al-Youm, al-Dustour, Sada el-Balad, Middle East News Agency, al-Sharq Business, al-Arabiya, Sky News Arabia, RT)

CAPMAS (The Center for Public Mobility & Statistics) reported that Egypt’s traded deficit plunged by 15% YoY in July 2021 to register USD2.9bn. Exports soared by 32% YoY while imports rose by only 3.8% YoY in July 2021. Exports that led the rise include plastics in primary form increasing by 58%, food preparations by 52%, ready-made garments by 23%, and fertilizers by 18%. (Source: Mubasher (English), Zawya (English), Daily News Egypt (English), Egypt Today (English), al-Maal, Amwal al-Ghad, Hapi Journal, al-Borsa News, Economy Plus Me, al-Ahram, al-Watan, al-Masry al-Youm, al-Shurouk, al-Dustour, al-Sharq Business, CNBC Arabia)

The IMF, in its most recent World Economic Outlook Report for October 2021, raised Egypt’s 2021 GDP growth forecast to 3.3%. Their 2021 forecast was 2.5% in April 2021 and then 2.8% in July 2021. They forecast Egypt’s GDP growth in 2022 at 5.2%. As for inflation, the IMF sees it reaching 4.5% in 2021 and 6.3% in 2022. The current account deficit is expected to drop to 3.9% in 2021 and 3.7% in 2022. Unemployment is expected to reach 9.3% in 2021 and 9.2% in 2022. Note that the IMF also lowered their projection for global growth in the same report. (Source: IMF (English), State Information Service (English), Mubasher (English), Amwal al-Ghad (English) (Arabic), al-Ahram (English), Daily News Egypt (English), Egypt Today (English), al-Maal, Hapi Journal, al-Youm al-Saabe, al-Watan, Akhbar al-Youm, al-Arabiya)

In its most recent report, CAPMAS (The Center for Public Mobilization & Statistics) reported that annual urban inflation in Egypt in September 2021 climbed to 6.6% YoY, up from 5.7% in August 2021. The rate is still in the lower half of the CBE’s (Central Bank of Egypt) target range for inflation, which is 5-9%. Monthly inflation in September 2021 rose by 1.6% MoM from August 2021. One of the main drivers of the rise in inflation was food prices, especially vegetables and meat, as well as a small increase in gasoline prices. Education services prices also increased significantly. Core inflation, which does not include volatile items such as food, increased in September 2021 to 4.8% YoY, up from 4.5% in August 2021. Meanwhile, nationwide inflation registered 8.0% YoY in September 2021, up from 6.4% in August 2021. Note that in its last meeting on 16 September 2021, the CBE had decided to keep interest rates unchanged. (Source: Reuters (English), Mubasher (English) (Arabic), Zawya (English), Business Today Egypt (English), Daily News Egypt (English), Egypt Today (English), al-Arabiya (English) (Arabic), Arab News (English), al-Maal, Amwal al-Ghad, Hapi Journal, al-Borsa News, Economy Plus Me, al-Ahram, al-Masry al-Youm, al-Watan, Sada el-Balad, CNBC Arabia, al-Sharq Business, al-Sharq al-Awsat)

The World Bank released an economic update for Egypt, raising its forecast for Egypt’s GDP growth in FY21/22 to 5%, up from 4.5%. GDP growth in FY20/21 registered 3.3%. One of the reasons behind the higher forecast are the rebound in the tourism sector as global travel restrictions are eased, especially from some of the countries that have sent the most tourists to Egypt in the past. Some of the other drivers of the high economic growth forecasted for Egypt in the current fiscal year are an increase in natural gas extraction and exports, significant public investments especially in infrastructure, and considerable growth in the ICT (information & communication technology) sector. Global economic growth is also expected, which would contribute to growth in Egypt. There are also favourable base effects during this fiscal year. The opinion of the World Bank is that Egypt’s economy has demonstrated buoyancy and resilience all through the pandemic. Monetary easing policies and support to targeted sectors that were most vulnerable to the pandemic’s negative economic effects relieved some of the burden from businesses and households. On a structural level, reforms that were taken in the past few years, especially those implemented in consultation with the IMF, paid off in this crisis. Coupled with stronger public debt management, Egypt was deemed creditworthy enough to receive generous international financing and support as needed. The past reforms have also improved the business environment and increased financial inclusion, bringing more businesses out of the shadow economy and broadening the tax base while enhancing economic activity. (Source: World Bank (English), al-Ahram (English), al-Maal)

IHS Markit’s Egypt PMI (Purchasing Managers’ Index) dropped to 48.9 in September 2021, down from 49.8 in August 2021. While business confidence was at a record high, marginal declines in output and new orders were reported, yet were still above their long-term averages. This comes as purchase costs were rising at the highest pace in 3 years, partly caused by global supply chain bottlenecks and shortages. Nevertheless, employment levels actually increased for the third month in a row. Companies reported a strong conviction that business activity will strengthen during the coming year, and that Egypt will post a solid recovery from the pandemic. One of the main factors that drove this confidence was the easing of international travel restrictions, which should lead to a strong recovery in tourism as pent up demand for leisure travel begins to result in higher tourist inflows. Other positive local and global developments contributed to this highly positive outlook. (Source: IHS Markit (English), Reuters (English), Zawya (English), Business Today Egypt (English), al-Ahram (English), Egypt Today (English), Arab News (English), Amwal al-Ghad, Mubasher, Hapi Journal, CNBC Arabia)

The Egyptian Cabinet is currently reviewing potential medium-term growth scenarios for the Egyptian economy in the coming period. The next phase of the government’s multi-stage economic reform program will focus on the industrial and agricultural sectors, as well as placing a strong emphasis on the ICT sector (information & communications technology). The IT sector alone is expected to grow 16% in FY21/22. The main goal of the economic reform program is reaching elevated rates of employment through high sustainable and inclusive economic growth. This will be achieved through increasing levels of targeted investment in high value-added sectors. Stimulus packages also play a role in the government’s plan, an example of which was the successful fiscal stimulus program implemented to offset the adverse economic effects of the Covid pandemic. The medium-term economic growth scenarios are comprised of a base case and an optimistic scenario. In the base case, there is moderate economic growth due to the persistence of the pandemic. In the optimistic scenario, there will be high growth as a result of the success of structural reforms and a speedier recovery from the pandemic’s negative effects. As for goals for the government’s finances, the key focus is on continuously lowering the government debt ratios, including debt-to-GDP. (Source: Daily News Egypt (English), Egypt Today (English), Egyptian Gazette (English), Mubasher, Amwal al-Ghad, al-Ahram, Akhbar al-Youm, al-Watan, al-Masry al-Youm, Sada el-Balad)

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A number of Egyptian state-owned banks will launch a fund focused on investing in fintech (financial technology) startups with a minimum capital of EGP1bn. The move is aimed at supporting and growing the local nascent and promising industry, as well as contributing to further financial inclusion and digitalization. The scope of the fund will include investing in both local startups in the fintech field as well as international firms that want to set up operations in Egypt. The fund will also work on facilitating financial services by supporting further applications of fintech. The government’s wider goal is to transform Egypt into a regional hub in the fintech industry. Egypt is already a leader in the field in the MENA region, and recent legislation and policy changes are contributing further to bolstering this regional status. Some of the aspects addressed recently by the government include licensing for fintech, e-payments, crowdfunding, nanofinance, and insurtech firms. (Source: CBE (1) (2), State Information Service (English), Daily News Egypt (English), National Council for Media, al-Maal, Mubasher, Amwal al-Ghad, al-Borsa, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, Hapi Journal, al-Arabiya)

The CBE (Central Bank of Egypt) has decided to begin allowing contactless payments through cell phones. This comes as part of the government’s strategy to increase financial inclusion, reduce reliance on physical banknotes, adopt the latest payment technologies, as well as transform Egypt into a regional Fintech hub. There are many benefits to this method of payment. First, it will allow merchants to offer an additional method for accepting payment from customers for goods and services, which will facilitate transactions. Also, it drastically reduces the costs of accepting payment, such as buying or renting traditional POS machines, maintaining them, and carrying them around. Small merchants stand to gain further by accepting payment from some customers who might not be carrying cash, or might not have the right amount of change, thereby giving the merchants access to a wider range of customers. (Source: CBE, Reuters (English), Euronews (English), Mubasher (English), Zawya (English), Egypt Today (English), Sada el-Balad (English), National Council for Media, al-Ahram, Akhbar al-Youm, al-Maal, Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Masry al-Youm, al-Watan, al-Shurouk, CNBC Arabia)

The Ministry of Finance announced that they have launched a new pilot program for B2C e-invoicing. Initially, 100 companies will participate in a trial phase for 6 months. The process involves recording all transactions with consumers on an electronic system that is linked to the Tax Authority in real-time. The transactions will be recorded in a central database. The logging will be performed through a system installed on the merchant’s POS (point of sale) devices. Upon full launch of the system after the pilot phase, the first industry to join will be retailers such as supermarkets and pharmacies, although e-commerce companies will be added later. The services industry will join after that. There is no set timeline for completing the integration of all businesses, and the Ministry expects the process to take years. The goal of the system is to reduce tax evasion significantly while integrating the large informal economy into the formal economy. The Ministry expects the system to ultimately double the government’s tax revenues. Companies who do not join the system will suffer suspension of their dealings with all state entities and a halt to export subsidies. The B2B e-invoicing system has already been implemented, and full integration of all businesses is expected by April 2023. Currently, all of the 2,800 large taxpayers are issuing e-invoices and will be followed later this year by joint-stock and investment companies, public sector companies, and government agencies. So far, this system has detected more than 2,800 tax evasion cases, for which an additional EGP3.5bn in taxes due were collected. (Source: Reuters (English), Mubasher, al-Borsa News, Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Shurouk, Euronews, al-Arabiya)

The Minister of Trade & Industry revealed that Egypt’s agricultural and food exports have risen by 14% YoY during 8M20/21 to reach USD4.6bn. The largest recipients of these exports were Russia, Saudi Arabia, the Netherlands, U.K., Northern Ireland, the U.A.E., and the U.S. (Source: Mubasher (English) (Arabic), Zawya (English), National Media Council, al-Maal, Amwal al-Ghad, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Shurouk)

Egypt has signed 14 MOUs (memoranda of understanding) and 6 executive agreements with Libya focused on reconstruction efforts, as Libya begins to recover from years of local armed conflict between various factions. Furthermore, a number of agreements were also signed between the Libyan government and Egyptian private sector companies. The signing ceremony was witnessed by the Egyptian Prime Minister and the Libyan Interim Prime Minister. The agreements cover a wide range of fields, including industrial development, agriculture, oil & gas, construction, housing, roads and highways, power generation, civil service administration, social solidarity, civil aviation security, counter-marine pollution, marine search-and-rescue, and youth and sports. There is also a plan to establish a free trade zone between the two countries. The agreements will be financed by Libya’s Central Bank. The Libyan Minister of Economic Affairs estimated that Libya’s reconstruction will cost around USD111bn, out of which Egypt should receive 60-70% of the work. The Minister reported that there are now 51 joint cooperation agreements between the two countries valued at USD19bn. It is estimated that Libya’s reconstruction work will require around 1mn Egyptian workers to perform the work in Libya. (Source: Reuters (English), al-Ahram (English), Egypt Independent (English), Libya Observer (English), al-Maal, Amwal al-Ghad, Mubasher, Economy Plus Me, al-Masry al-Youm, al-Shurouk, al-Dustour, Libya al-Mostakbal, al-Sharq Business, al-Arabiya)

The Egyptian Cabinet revealed that Fitch Solutions expects Egypt’s GDP to grow by 153% by 2030 to reach USD943bn versus USD369bn in 2020. The 2030 forecast also predicts that, compared to 2020, foreign reserves will increase by 35% to USD46bn, the budget deficit will drop by 21%, inflation will level off at 4.8%, and unemployment will drop by 2% to sit at 6%. (Source: State Information Service (English), Mubasher (English) (Arabic), Zawya (English), National Media Council, Amwal al-Ghad, al-Shurouk)

The CBE (Central Bank of Egypt) has decided, in its latest meeting, to keep interest rates unchanged. The reasons given by the CBE for this decision are the recent rise in inflation, healthy economic growth, stable unemployment levels, uneven global economic recovery from the Covid pandemic, and record-high global prices for some commodities and food items. All these factors led the CBE to maintain rates at their current levels in order to achieve its inflation target of 7% +/–2% in 4Q22, as well as ensuring price stability in the medium-term. Currently, the overnight deposit rate is 8.25%, the overnight lending rate is 9.25%, and the main operation rate and discount rate are both 8.75%. Egypt remains the country with the highest real interest rate among more than 50 countries tracked by Bloomberg. This will keep Egypt’s bond yields attractive even if developed economies begin tightening their monetary policy and offering higher yields. (Source: CBE (English) (Arabic), al-Ahram (English) (Arabic), Business Today Egypt (English), al-Maal, Amwal al-Ghad, Mubasher, Hapi Journal, Akhbar al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Sada el-Balad, CNBC Arabia, al-Arabiya)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians living abroad reached a new record high in FY20/21. Remittances totalled USD31.4bn during FY20/21, the highest amount ever recorded, and with an increase of 13% YoY. During 4Q20/21 alone, remittances surged by 30% YoY. June 2021 saw a considerable 16% YoY increase in remittances. As a key source of foreign currency for Egypt, remittances continue to counterbalance weak tourism revenues due to the Covid pandemic’s negative effect on global travel. With the current gradual revival in tourism, the current account should witness strong support. (Source: Mubasher (English) (Arabic), Zawya (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Sada el-Balad (English), State Information Service, National Council for Media, al-Maal, Amwal al-Ghad, Hapi Journal, Economy Plus Me, al-Youm al-Saabe, Akhbar al-Youm, al-Watan, al-Dustour, CNBC Arabia, al-Arabiya)

The Minister of Finance stated that the government is eager to implement structural reforms that encourage investment and private sector activity. The Minister said that by enhancing the private sector’s role in economic development, growth will be more sustainable and there will be higher employment levels. The Minister highlighted the government’s export incentives, of which the financial component amounts to EGP8bn in FY21/22. The Export Development Fund has already paid out EGP28bn of overdue subsidies to exporters, covering the period from March 2020 to June 2021. Among the current export incentives are EGP500mn for the automotive sector alone. (Source: Zawya (English), al-Ahram (English), Daily News Egypt (English), al-Maal, Mubasher, Hapi Journal, al-Shurouk)

The Prime Minister has revealed that Egypt is targeting GDP growth of 7% within 3 years. The Minister backed up this ambitious goal with the fact that Egypt was one of only a few countries in the entire world to achieve positive GDP growth during FY20/21, a year in which the Covid pandemic’s devastating economic effects were still persisting. Not only was the GDP growth rate positive, but it amounted to an impressive 3.3%. (Source: Mubasher (English) (Arabic), Zawya (English), al-Maal, al-Ahram, al-Masry al-Youm, al-Shurouk, al-Dustour, Sada el-Balad, al-Arabiya)

CAPMAS (The Center for Public Mobilization & Statistics) reported that Egypt’s trade deficit shrank by a stunning 28% YoY in June 2021. It now sits at USD2.9bn. Exports increased by a whopping 49% YoY, while imports rose only marginally by 0.9% YoY. The key contributors to this impressive rise in exports were increases in the exports of plastics by 78%, ready-made garments by 55%, and some food items by 53%. The biggest non-oil exports, in order of value exported, were fresh fruits, ready-made garments, fertilizers, and plastics in primary form. As for 1H21, exports have now risen by 35% after including the June 2021 data. The biggest importers of Egyptian commodities in 1H21, in order of value imported, were Italy, the U.S., Saudi Arabia, India, Turkey, Greece, and the U.A.E. (Source: Mubasher (English) (Arabic), Daily News Egypt (English), National Council for Media, Amwal al-Ghad, al-Aalam al-Youm, Economy Plus Me, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, al-Watan, al-Shurouk, CNBC Arabia, al-Arabiya)

The Minister of Planning & Economic Development revealed that investments in the transportation sector will reach EGP245bn in FY21/22. This represents a 104% increase from what was invested in FY20/21. The government is planning for the transportation sector to contribute 4.7% to Egypt’s GDP in FY21/22. This will be achieved through 3.8% growth in the sector in FY21/22. One of the goals of these investments is to create networks that connect production centers with consumer markets. This should spur more economic activity, improve market efficiency, and ultimately lead to enhanced economic growth. Furthermore, investments in transportation can help leverage Egypt’s strategic geographic location, which is on major international shipping routes and central between Europe, Africa, and the Middle East. Not only will shipping activities and revenues be enhanced, but value can also be created through logistical activities and intermediary manufacturing industries, which would all benefit from improved transportation networks. (Source: Ministry of Planning & Economic Development (English) (Arabic), Mubasher (English) (Arabic), Zawya (English), Daily News Egypt (English), al-Mal, Amwal al-Ghad, Economy Plus Me, al-Ahram, al-Youm al-Saabe, al-Watan)

In its most recent report, CAPMAS (The Central Agency for Public Mobilization & Statistics) reported that Egypt’s annual urban inflation registered 5.7% in August 2021, up slightly from 5.4% in July 2021. On a monthly basis, urban inflation increased by only 0.1% MoM in August versus 0.9% in July. Annual nationwide inflation was 6.4% in August, again up slightly from 6.1% in July. On a monthly basis, nationwide inflation declined by 0.1% MoM in August versus an increase of 0.9% in July. The main driver of inflation in August was increases in some food products, as well as an unfavourable base effect. The current level of inflation is close to the lower boundary of the CBE’s (Central Bank of Egypt) target inflation range of 5-9%. (Source: Reuters (English), Mubasher (English) (Arabic), Amwal al-Ghad, Hapi Journal, al-Shurouk, al-Dustour, CNBC Arabia, al-Arabiya)

Egypt will export natural gas to Lebanon, which is in the grips of a severe electrical power crisis. The gas will be transported through existing pipelines from Egypt to Jordan to Syria and then on to Lebanon. Energy Ministers from the four countries reached an agreement on the details during a meeting in Jordan. (Source: Reuters (English), al-Ahram (English) (Arabic), Egypt Independent (English), Jordan Times (English), Now Lebanon (English), al-Sharq al-Awsat (English) (Arabic), Zawya, al-Dustour, Egyptian National Media Council, CNBC Arabia, Sky News Arabia, CNN, Euronews)

The Minister of Transportation announced big plans for Alexandria Port and its surrounding area in a presentation to the President during his visit to the port. The port area will be transformed into an international hub for logistics and trade, and should become one of the leading ports in the Mediterranean Sea. The plan involves connecting cargo distribution centres and logistics areas, including sea and dry ports, with Alexandria Port. After increasing storage areas, the result will be a massive boost to the volume of cargo handled, as well as numerous other value-adding activities. Full completion of the development project will be by the year 2024. The first phase of the project will cost EGP1bn. Contracts have been signed with the largest port management firms in Europe for the management of Egypt’s ports. Connections between Alexandria Port and logistics and storage areas will be through a vast network of land, rail, and river transportation channels. Some of the projects in the shipping and logistics network include an interim port between Alexandria Port and Dekheila Port costing EGP12bn and 3 nearby specialized and multi-purpose terminals at a total cost of EGP6.4bn. Furthermore, the transportation network, which includes the new high-speed electric train, will link Alexandria Port with al-Sokhna Port on the Red Sea, passing through numerous industrial and logistics zones. (Source: State Information Service (English), Mubasher (English) (Arabic), Daily News Egypt (English), al-Maal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Akhbar al-Youm, Sada el-Balad)

The CBE (Central Bank of Egypt) announced that Egypt’s net foreign exchange reserves rose marginally by USD63mn during August 2021 to remain flat at USD40.7bn. Reserves are approaching the levels they were at before the Covid pandemic hit, which peaked at USD45.5 in February 2020. (Source: CBE (English) (Arabic), State Information Service (English), Mubasher (English) (Arabic), Zawya (English), al-Ahram (English), Egypt Today (English), Arab Finance, Hapi Journal, Economy Plus Me, al-Aalam al-Youm, al-Youm al-Saabe, Akhbar al-Youm, al-Shurouk, al-Arabiya)

In its latest report on M&A (mergers & acquisitions) in the Middle East, Baker McKenzie reported that Egypt saw the largest value of M&A deals originating from the Middle East in 1H21. There were USD1.8bn worth of those M&A deals in Egypt. Also, Egypt was the second most popular country by volume with a total of 18 deals. As for deals coming into the Middle East, Egypt ranked third based on deal volume with 8 M&A deals. Overall, the number of deals in the Middle East in 1H21 increased by 59% YoY, while total deal values declined by 7% YoY. (Source: Baker McKenzie (English), Gulf Business (English), The National News (English), al-Rai)

The government has decided to impose a 10% capital gains tax on the disposal of securities. The tax is not new, but was suspended for the last 3 years. The tax will come into effect on 1 January 2022. (Source: Sada el-Balad (English), Hapi Journal, al-Youm al-Saabe, Akhbar al-Youm, Sada el-Balad, al-Arabiya)

IHS Markit’s PMI (Purchasing Managers’ Index) rose to 49.8 in August 2021, up from 49.1 in July 2021. The index is now almost touching the neutral score that separates contraction from expansion, and trending towards the expansion score range. Non-oil output and new orders went up, as well as scoring above their long-run averages for four consecutive months. Also, employment levels went up for the second month in a row. Most surveyed companies remained highly positive, expecting output to grow over the coming 12 months due to stronger demand. This points towards a recovery phase from the Covid pandemic. Inflation risks were present as well, with input and selling prices rising at a high rate. Purchasing activity rose significantly as companies moved to increase stock out of fears of further input price rises, but despite that inventories declined due to global supplier delays. Rising input prices are explained by global supply shortages and delays due to above average global orders and shipping backlogs linked to increased demand with the recovery from the pandemic. (Source: IHS Markit (English), Reuters (English), Mubasher (English), al-Ahram (English), Egypt Today (English), Amwal al-Ghad, Hapi Journal, CNBC Arabia)

The Minister of Planning & Economic Development revealed that GDP growth for 4Q20/21 registered an astounding 7.7% despite the persistence of the Covid pandemic which is having negative economic repercussions around the world. 4Q19/20 had witnessed a 1.7% contraction, when the pandemic was at its height. Initial estimates for FY20/21 GDP growth are at 3.3%. The government expects GDP growth for FY21/22 to reach 5.4%. (Source: Reuters (English), Financial Post (English), Amwal al-Ghad (English) (Arabic), al-Maal, Mubasher, Economy Plus Me, Akhbar al-Youm, CNBC Arabia, al-Arabiya)

The Minister of Trade & Industry announced that there will be a huge reduction in customs duties on around 7,000 goods traded between Egypt and the Mercosur countries. The reduction is effective starting today. This comes in light of the free trade agreement signed between Egypt and Mercosur in September 2017. Since then, Egyptian exports to Mercosur have skyrocketed by 115%. The agreement aims to eliminate customs duties on 90% of traded goods by the year 2026. Customs duties on half of the 7,000 goods have now been reduced by 63% since the agreement came into effect, while the other half have been reduced by 50%. Around the same time last year, roughly 600 goods were deemed completely customs-free. The exported commodities that will benefit the most from these reductions are textiles, lint, and engineering goods. The Mercosur’s full members are Brazil, Argentina, Paraguay, and Uruguay. Mercosur associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, and Suriname. (Source: Egypt Today (English), Sada el-Balad (English), Amwal al-Ghad, Economy Plus Me, Veto)

Fitch Ratings, one of the leading global rating agencies, has released a positive report about the Egyptian economy. The report was specifically focused on consumer spending, as it is a key driver of economic growth. Fitch found that household consumption remained strong despite the Covid pandemic and limited national vaccination levels. This is in stark contrast to all MENA countries and most countries globally, which were all negatively affected by the pandemic, with Fitch expecting their consumer spending to recover to pre-pandemic levels within 2-3 years. Fitch have a strong forecast for real household spending, expecting 7.2% growth in 2021. This would mean that total household spending in 2021 would be 15.2% higher than in 2019, before the pandemic. Last quarter, Fitch attributes the resilient consumption trend to easing inflation, high inflows of remittances, and government support policies and measures. As for economic growth, Fitch forecasts GDP growth to be 3% in 2021. (Source: Fitch Ratings (English), State Information Service (English), Egypt Today (English), National Media Authority, al-Maal, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, al-Watan, Amwal al-Ghad)

Amazon has inaugurated its first logistics centre in Egypt. The launch ceremony was attended by the Egyptian Prime Minister, the Minister of Telecommunications, and the Minister of Trade & Industry. The facility is 28,000m2 and is located in 10th of Ramadan City, on the outskirts of Greater Cairo. Amazon has invested over EGP1bn in Egypt in this logistics centre, as well as in establishing corporate and customer service offices and in employing over 3,000 employees in Egypt. Amazon’s investments in Egypt are its largest in Africa, and this logistics centre is the first of its kind in the African continent. (Source: Mubasher (English) (Arabic), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), al-Maal, Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Arabiya)

The Minister of Planning & Economic Development revealed that the government plans to increase the Suez Canal’s revenues by 5.6% in FY21/22 to reach EGP99bn (USD6.3bn). This will be higher than the revenue achieved before the outbreak of the Covid pandemic. It is worthy to note that 10% of all global trade movement, 25% of all goods moved in containers, and 100% of all seaborne container trade between Europe and Asia passes through the Suez Canal. The canal is capable of passing 100% of the global fleet of container vessels, 93% of the fleet of dry bulk vessels, and 62% of oil and other tankers. The Suez Canal’s revenues represent one of the main sources of foreign currency for Egypt. The Suez Canal region is currently undergoing comprehensive development to transform it into a logistical and high-tech industrial region and a major hub for global trade, which will also increase its competitiveness among global shipping passageways. Source: al-Ahram (English) (Arabic), Egypt Today (English), Daily News Egypt (English), al-Maal, Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, al-Masry al-Youm, al-Watan)

GM (General Motors) is considering expanding its operations in Egypt in light of the government’s new automotive sector support initiative. This was revealed after a meeting between the Minister of Trade & Industry and GM’s MEA President & Managing Director. The meeting addressed how the government’s automotive sector initiative could benefit GM’s expansion plans. The initiative involves EGP500mn of incentives directed towards automobile manufacturers who export their vehicles. It also aims to localize automobile manufacturing in Egypt, especially electric vehicles. The Minister pointed out the government’s drive towards renewable energy, beginning with the current initiative to convert vehicles to run on natural gas instead of gasoline, while building the infrastructure necessary to enable the eventual widespread adoption of electric vehicles. (Source: Ministry of Trade & Industry, GM Authority (English), Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Watan)

Egypt is entering the green hydrogen production industry, which marks another chapter in the government’s environmental and renewable energy plan. In the presence of the Egyptian Prime Minister and the Minister of Electricity, an agreement was signed with Siemens to launch a pilot project with a 100-200MW electrolyser capacity. The goals of the pilot project are to test and develop the regulatory and logistical environment, attract partners and customers, and stimulate early technology deployment. Siemens will also promote the transfer of related technologies and help attract new investments. Green hydrogen is produced through electrolysis using renewable energy, almost eliminating the emissions released through traditional production methods such as the gasification of coal or steam methane reformation. (Source: Siemens (English) (Arabic), Recharge News (English), Solar Quarter (English), Energy Voice (English), Amwal al-Ghad (English) (Arabic), Egypt Today (English), Arab News (English), Mubasher, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Arabiya)

Egypt has been allocated USD2.8bn in SDRs (Special Drawing Rights) from the IMF (International Monetary Fund). The current SDR allocation by the IMF is its largest ever at USD650bn, with the goal of providing liquidity to the global economic system. This is hoped to be achieved by bolstering the foreign currency reserves of countries and reducing their dependence on more expensive forms of debt. SDRs are a form of international reserve currency aimed at supplementing the foreign currency reserves of countries. While they are not actual currencies, they serve as an alternative to the two global reserve assets, USD and gold, and help countries to reduce their dependence on expensive debt used for reserves build-up. (Source: IMF (English), Arab Finance (English) (Arabic), Amwal al-Ghad (English), Zawya (English), al-Maal, al-Shurouk)

The Minister of Planning & Economic Development has revealed that the government is aiming to invest EGP65bn in the petroleum sector in FY21/22. ¾ of these investments will be directed towards extraction activities, while the remaining ¼ will be invested in petroleum refining. The target for the extraction and refining of oil, gas, and other substances is to achieve a value increase of 10% based on current prices. In quantities, the targets are to produce 3.4mn cubic feet of crude oil, condensate, and butane, as well as 2.6tn cubic feet of natural gas, 4.4mn tons of petrochemical products, and 13mn tons of mineral ore. (Source: State Information Service (English), al-Ahram (English) (Arabic), Business Today Egypt (English), Egypt Today (English), Daily News Egypt (English), al-Maal, Amwal al-Ghad, Mubasher, Akhbar al-Youm, al-Masry al-Youm, al-Watan, al-Dustour, Sada el-Balad, CNBC Arabia, al-Arabiya)

Revenues from the Suez Canal have reached a new record in FY20/21, recording USD5.8bn, which represents a 2.1% YoY increase. This comes despite the canal blockage that happened that year due to the container ship Ever Given getting stuck for 6 days, and the subsequent disruption in the canal’s traffic. During the period between 20 January 2021 – 20 August 2021, revenues increased by an impressive 11% YoY to reach USD3.9bn. It is worthy to note that about 15% of global shipping traffic passes through the Suez Canal. (Source: Reuters (English), Zawya (English), Arab News (English), Amwal al-Ghad, Arab Finance, al-Shurouk, al-Watan, Sada el-Balad, CNBC Arabia, Sky News Arabia)

The Minister of Trade & Industry announced that Egypt’s non-oil exports have risen by 22% YoY in 7M21 to reach USD17.7bn. She said that the government’s swift and targeted policy response to the Covid pandemic was the main contributor to the resilience of export markets. July 2021 alone witnessed a 4% YoY increase in exports. During 7M21, exports to all the major regions have increased. Exports to the E.U. increased by 46% YoY to reach USD5.6bn, to the Arab League by 2% YoY to reach USD5.4bn, to non-Arab African countries by 26% YoY to reach USD1.7bn, and to the U.S. by 51% YoY to reach USD1.3bn. The top countries importing from Egypt during 7M21 were Turkey, the U.S., and Saudi Arabia. The Minister also mentioned that Egypt’s imports increased by 11% YoY in 7M21 to reach USD42.4bn. The top countries exporting to Egypt during 7M21 were China, the U.S., Germany, Turkey, and Russia. (Source: Ministry of Trade & Industry (English) (Arabic), State Information Service (English) (Arabic), Arab Finance (English), Business Today Egypt (English), Zawya (English), Egypt Independent (English), Egyptian Gazette (English), Amwal al-Ghad, Mubasher, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, al-Watan, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat)

The Minister of Planning & Economic Development has revealed some of the government’s targets for FY21/22. The inflation target is 6% versus 13.3% in FY18/19. The unemployment rate target is 7.3% versus 9.6% in FY19/20. The poverty rate is expected to drop to 28.5% versus 29.7% in FY19/20, and the growth rate of the population is expected to decline to 2% versus 2.6% in 2017. (Source: Zawya (English), al-Maal, Arab Finance, al-Ahram, al-Masry al-Youm, Sada el-Balad)

During a meeting with the Prime Minister, the CEO of the General Authority for Investment & Free Zones revealed that net FDI (foreign direct investment) inflows have risen by an impressive 47% YoY in 3QFY20/21 to reach USD1.4bn. Non-oil sector net FDI inflows increased by 22% YoY, as well as rising by 26% QoQ. Also in non-oil sector FDI, investments that were made to establish and expand companies increased by 33% YoY and 24% QoQ. Furthermore, net FDI inflows with the goal of establishing new companies have increased significantly by 85% versus 1QFY20/21. (Source: Reuters (English), Egypt Today (English), al-Maal, Mubasher, Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Watan, CNBC Arabia, al-Arabiya)

The NTRA (National Telecom Regulatory Authority) has revealed that the number of electronic transactions performed through mobile wallets in 1H21 in Egypt increased by 175% YoY to reach 81mn transactions. The total number of mobile wallets in Egypt increased by 16% to sit at 16.3mn wallets. As for the number of transfers from one wallet to another, the increase was a staggering 300% to reach 35.2mn transactions, with an average transaction equal to EGP1,203. Deposits increased by 109% with an average transaction of EGP1,580, and withdrawals increased by 132% with an average transaction of EGP1,965. Other payment transactions, including bill payments, online shopping, and salary transfers, increased by a whopping 323% with an average transaction of EGP175. (Source: NTRA, Mubasher (English), Daily News Egypt (English), al-Maal, Arab Finance, Amwal al-Ghad, al-Ahram, al-Masry al-Youm, Sada el-Balad, al-Arabiya)

The CBE (Central Bank of Egypt) reported that remittances from Egyptians working abroad have risen significantly. Remittances increased by 45% YoY in May 2021 to reach USD2.6bn. During 11MFY20/21 (the period from July 2020 to May 2021), remittances rose by 13% YoY to reach USD28.5bn. These considerable increases in remittances reflect the confidence of Egyptians working abroad in their country’s economy. Remittances and revenues from the tourism sector and the Suez Canal are the main sources of foreign currency inflows to Egypt. (Source: CBE, State Information Service (English), Reuters (English) (Arabic), Mubasher (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Egypt Independent (English), al-Maal, Arab Finance, Zawya, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Shurouk, CNBC Arabia, al-Sharq al-Awsat)

In its most recent report, CAPMAS (The State’s Center for Public Mobilization & Statistics) stated that unemployment in Egypt dropped significantly in 2Q21 by 2.3pp to reach 7.3%, down from 9.6% in 2Q20. On quarterly basis, unemployment declined by 0.1pp QoQ in 2Q21 versus 1Q21. (Source: CAPMAS, Amwal al-Ghad (English) (Arabic), Zawya (English), al-Ahram (English) (Arabic), Egypt Today (English), Daily News Egypt (English), Egypt Independent (English), Arab Finance, Mubasher, Hapi Journal, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, CNBC Arabia)

Wamda’s recent report on start-up investments in the MENA region indicated that Egypt had the highest number of start-up funding deals in the region in July 2021. Egypt had 19 deals, followed by 16 in Qatar and 12 in the UAE. As for the value invested in start-ups, Egypt came in second place with USD70mn worth of start-up investing in July 2021. The sector that attracted the largest amount of investments by far in the MENA region was Foodtech, due largely to one mega-deal that saw USD415mn invested in a cloud kitchen operator start-up. Foodtech was followed by Mobility, e-Commerce, and Healthcare in terms of the value invested. (Source: Wamda (English) (Arabic), al-Ahram (English))

According to CAPMAS (Central Agency for Public Mobilization and Statistics), annual urban inflation in Egypt for July 2021 recorded 5.4% versus 4.9% in June 2021. On a monthly basis, inflation in July 2021 was 0.9% MoM (between June and July of 2021). The main driver of the increase in inflation was higher prices for electricity, natural gas, and other fuels, which increased by 8.9%. This was due to the government’s decisions in July to increase domestic fuel prices as well as electricity prices. There were also some increases in the prices of food and tobacco. Annual nationwide inflation for July 2021 recorded 6.1% versus 5.3% in June 2021. Monthly nationwide inflation came in at 1.0% MoM. The inflation figures are broadly in line with analyst expectations. Note that the Central Bank of Egypt’s inflation target is 7% +/−2%. (Source: Mubasher (English) (Arabic), Zawya (English), al-Ahram (English), Amwal al-Ghad, Hapi Journal, al-Watan, al-Shurouk, CNBC Arabia, al-Arabiya)

Russian tourist flights that fly directly to Egyptian resort cities have been resumed after six years of suspension following an attack on a Russian airliner. Russian security inspection delegations have inspected the airports in Egyptian resort cities such as Hurghada and Sharm el-Sheikh numerous times to ensure that they comply with Russian security requirements. The Russian authorities recently decided that they are finally satisfied with security procedures at Egyptian resort city airports, and have given their approval for flights to be resumed. Russian tourists are a key component of the tourist demographic in Egypt. In 2014, they represented 33% of all the tourists that visited Egypt that year. (Source: Moscow Times (English), Associated Press (English), France24 (English), al-Ahram (English) (Arabic), Egypt Today (English), Egypt Independent (English), al-Sharq al-Awsat (English), Arab News (English), al-Arabiya (English) (Arabic), al-Maal, Mubasher, Sputnik, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, al-Dustour, Sada el-Balad, Sky News Arabia)

The CBE (Central Bank of Egypt) has kept key policy rates unchanged in its latest MPC (Monetary Policy Committee) meeting. The rates stand at 8.25% and 9.25% for overnight deposits and overnight lending, respectively. The main operation rate and the discount rate are both 8.75%. The CBE cited the global recovery, current financial conditions, and inflation outlooks as their reasons for holding rates. This is the 6th consecutive time that the CBE has held rates since December 2020. The CBE stated that their recent decision is consistent with achieving their inflation target of 7% +/−2%. It is worthy to note that Egypt currently has some of the highest real interest rates in the world, offering exceptional yields for government treasury fixed-income investments. (Source: CBE (English) (Arabic), Reuters (English), Amwal al-Ghad (English), Zawya (English), al-Ahram (English) (Arabic), Arab News (English), al-Maal, Hapi Journal, al-Masry al-Youm, al-Shurouk, al-Dustour, CNBC Arabia, al-Arabiya)  

The CBE (Central Bank of Egypt) announced that Egypt’s net foreign reserves have risen marginally in July 2021 to reach USD40.61bn versus USD40.58 in June 2021. The slight rise was due to an increase in the value of the gold component of the reserves. Foreign reserves have been rising since June 2020, after the initial shock phase at the onset of the Covid pandemic had passed. (Source: CBE (English) (Arabic), Reuters (English), Arab Finance (English), Amwal al-Ghad (English), Zawya (English), al-Ahram (English), Egypt Today (English), al-Maal, Mubasher, al-Masry al-Youm, Sada el-Balad, al-Arabiya, al-Sharq al-Awsat)

The esteemed credit rating agency Fitch Ratings has raised its outlook for the Egyptian banking sector’s operating environment to ‘stable’ from ‘negative’. The brighter outlook is based on an improvement in foreign currency liquidity after the sharp outflows that were witnessed at the beginning of the Covid pandemic. Foreign currency remittances also showed healthy growth. The improved outlook is also supported by renewed investor confidence after the IMF approved Egypt’s USD5.2bn SBA (Stand-By Arrangement). Other factors that support the positive outlook include promising prospects for impressive economic growth, with Fitch forecasting real GDP growth of 6% in FY21/22 versus 3% in FY20/21. This, coupled with low interest rates and higher foreign investments, leads Fitch to expect double-digit loan growth in 2021 and further acceleration in 2022. (Source: Fitch Ratings (English), Zawya (English), Arab News (English), Arab Finance)

The IFC (International Finance Corporation), part of the World Bank Group, has announced that it will subscribe to the full value of Egypt’s first private sector green bond issuance. The five-year, non-callable fixed-rate bonds will be issued by the CIB (Commercial International Bank) at a value of USD100mn. The CIB will use the proceeds to fund a portfolio of green loans offered to SMEs (small- and medium-sized enterprises) and corporate clients. A portion of the proceeds will be used to fund capital expenditures for the CIB’s own green building. The green loans offered will be used for various sustainable, environmentally-friendly and climate-supporting investments such as renewable energy, wastewater and water management, green transportation, energy efficiency, and green buildings. The IFC will also offer advisory support to the CIB by consulting them on the development of a pipeline of eco-friendly projects such as industrial energy efficiency and green buildings. This includes technical assistance for the actual developers of these projects. It is worthy to note that Egypt issued the first sovereign green bonds in the MENA region in September, worth USD750mn, on the LSE (London Stock Exchange). The issuance was five times oversubscribed. (Source: IFC (English) (Arabic), al-Ahram (English), Egypt Today (English), Banky)

According to the latest PMI report from IHS Markit, Egypt’s PMI (Purchasing Managers’ Index) fell to 49.1 in July 2021 from 49.9 in June 2021. Despite the small decline in the overall score, employment grew for the first time since October 2019. As input price inflation dropped to a four month low, cost pressures from raw material prices, fuel costs, and wages were softer. On the other hand, output and new orders fell into the contraction zone, although their rate of decline over the last few months was less severe than the period between March-May 2020. The survey respondents said that despite the relatively cautious domestic spending, foreign orders increased in a sustained and solid manner. 51% of the respondents expected business activity to increase within the coming twelve months. (Source: IHS Markit (English), Zawya (English), al-Ahram (English), Amwal al-Ghad, Mubasher, Hapi Journal, , al-Watan, al-Arabiya)

The EGX (Egyptian Stock Exchange) has launched a new index for treasury bonds. The weight of each issuance in the index will be determined based on the market value of the bond, and the index will be composed of the most liquid bonds on the market. Furthermore, four sub-indices will be launched soon to form an index series for government bonds. (Source: EGX (English) (Arabic), Mubasher (English) (Arabic), Arab Finance (English), Daily News Egypt (English), Arab Finance, Amwal al-Ghad, Hapi Journal, al-Youm al-Saabe, Akhbar al-Youm, al-Shurouk, al-Dustour, Sada el-Balad, al-Sharq al-Awsat)

The EGX’s (Egyptian Stock Exchange) Board of Directors has approved new rules that will take effect in September 2021. The new rules are as follows: Share Closing Price: Under the new system, first, there will be a pre-close auction sometime during the last 30 minutes of the trading day. If the auction is successful and results in a closing price, then that will be the official closing price. Traders will be able to buy and sell at that price for a few minutes before the end of the session, which is known as the trade-at-close period. If the auction does not attract enough bids and is therefore unsuccessful at achieving a closing price, then a 30-minute moving volume-weighted average (MVWAP) will be used to determine the closing price. The current system uses a volume-weighted average (VWAP) that is calculated using all the trades that occurred in the session. Share Intraday Movement Range: For shares on the EGX (main market), share prices will be allowed to move in a range of +/−20% during a single session before trading is suspended. The current range is +/−10%. For shares on the NILEX (small- and mid-cap market), the range will be +/−10%. Another change that is effective from today’s trading session is: Shares Eligible for Same-Day Trading, Margin Trading, and Short-Selling: The number of companies on the ‘A’ List whose shares are eligible for same-day trading and margin trading with up to 100% collateral has been increased to 143 from 129. As for the ‘B’ List, which has the same permissions as the ‘A’ List but with up to 80% collateral only, the number of companies has decreased to 33 from 38. The number of securities eligible for short selling has increased to 63 from 53. The new rules are more in line with the largest, most prominent exchanges in the world. Their goal is to boost trading volumes and attract more institutional investors, especially foreigners. These investors usually prefer having the option of trading after the auction, as well as working with the MVWAP system as it gives a more accurate closing price. The new rules will allow for instant execution of high-volume trades while offering a simpler and more cost-effective process. (Source: EGX, Mubasher (English) (Arabic), Amwal al-Ghad (English) (Arabic), al-Youm al-Saabe, al-Masry al-Youm, al-Arabiya, al-Sharq al-Awsat,

Moody’s credit rating agency has maintained Egypt’s long-term issuer credit rating at B2 for both local and foreign currency. Moody’s forecast a stable outlook for Egypt’s rating based on trust in the government’s implementation of fiscal and economic reform. They said that Egypt has managed to expand its funding base while building up reserves of foreign currency that cushion fluctuating capital flows. This enables the government to push forward confidently with its reforms, improving the competitiveness of exports and establishing a wider revenue base. Moody’s forecasted growth for the Egyptian economy to come in at 5.5% in FY21/22. (Source: Moody’s (English), Egypt Independent (English), al-Ahram (English) (Arabic), Daily News Egypt (English), Ministry of Finance, al-Maal, Mubasher, Amwal al-Ghad, Arab Finance, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, al-Watan, al-Shurouk, CNBC Arabia, al-Arabiya)

The EGX has announced the new constituents of its indices after the latest rebalancing. The rebalancing will be implemented on 1 August 2021. The EGX’s indices are rebalanced semi-annually in February and August. The EGX30’s inclusions and exclusions are as follows: (Note that there are seven companies leaving the index instead of six because OIH had a demerger and was split into OIH and OFH, both of which are leaving the index.) Inclusions Exclusions MFPC – Misr Fertilizers Production Company (Mopco) OCDI – Sixth of October Development & Investment (Sodic) CIRA – Cairo for Investment & Real Estate Development EFID – Edita Food Industries SPMD – Speed Medical EMFD – Emaar Masr RAYA – Raya Holding EXPA – Export Development Bank of Egypt RMDA – Tenth of Ramadan for Pharmaceutical Industries & Diagnostic Reagents (Rameda) OFH – Orascom Financial Holding EGTS – Egyptian Resorts Company OIH – Orascom Investment Holding   CICH – CI Capital Holding   The other indices were also rebalanced, including the highly popular EGX70. Some of the new inclusions in this index are: EGAS – Egypt Gas SUGR – Delta Sugar BINV – B Investments PRMH – Prime Holding (Source: EGX, Mubasher (English) (Arabic), Business Today Egypt (English), Egypt Today (English), Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Shurouk)

A recent survey conducted by Visa in conjunction with the Central Bank of Egypt’s Egyptian Banking Institute revealed that there is a decline in the usage of cash as a form of payment in favour of digital payment methods. The survey sample was from holders of payment cards that have made at least one online payment in the last six months. Some of the results of the survey, based on the responses of those surveyed, are: 690% increase in the use of digital payments (payment cards such as credit and debit cards) for deliveries and online transactions 85% decline in cash payments for deliveries during the pandemic 74% are more likely to use contactless payment methods more going forward (Source: Visa (English) (Arabic), al-Maal, Arab Finance, Amwal al-Ghad, al-Dustour)

The Minister of Transportation revealed that the government is planning to invest 20% of the state’s FY21/22 budget, which equals EGP490bn, on transportation infrastructure projects. Some of the projects that are being fast-tracked are the high-speed electric train connecting Ain Sokhna to Alamein, the monorail connecting the New Administrative Capital to the rest of Cairo, and the revamping and expansion of Ain Sokhna Port. Another key project in progress is the revamping of Alexandria’s Abu Qir tram line by converting it into a subway and then subsequently extending the distance covered by the line significantly over two phases. (Source: State Information Service (English), al-Maal, al-Ahram)

A survey of analysts conducted by Reuters indicated that they expect Egypt’s economy to grow 5% in FY21/22. As for the following year, FY22/23, the expectation is that growth will reach 5.5%. As for inflation, their expectations are that it will be 6% in FY21/22 and 6.8% in FY22/23. (Source: Reuters (English), al-Maal)

The Egyptian Food Export Council has revealed that Egyptian food exports increased by 13% YoY in 1H21. Arab countries were the largest recipient of Egyptian food exports, receiving 55% of these exports. They were followed by the E.U. (European Union), which received 14% of food exports, and has witnessed 31% growth in imports of Egyptian food during 1H21. Non-Arab African countries came third, receiving 11% of food exports. On a country basis, Saudi Arabia was the largest recipient, followed by the U.S. and then Libya. Egyptian food exports to the U.S. in particular have witnessed 25% growth during 1H21. (Source: Zawya (English), Egypt Today (English), al-Maal, Mubasher, Amwal al-Ghad, Hapi Journal, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, al-Dustour, CNBC Arabia, al-Sharq al-Awsat, al-Arabiya)

In a meeting with the President and the Prime Minister, the Minister of Finance presented some key financial indicators for FY20/21. He revealed that the government reduced the budget deficit as a percentage of GDP from 8% to 7.4%, helped in part by a primary surplus representing 1.4% of GDP. He also reported that the government managed to increase revenues by over 12%, while increasing public spending by 9%. As for sovereign debt, he reported that the ratio of debt to GDP has declined from 108% in FY16/17 to 91% in FY20/21, indicating better debt management. Furthermore, the duration of the debt has been extended from under 1.3 years before June 2017 to 3.5 years in June 2021. Debt service has also been reduced from 40% of total expenditures in FY19/20 to 36% in FY20/21, with the goal of reaching a level under 32% in FY21/22. On the investment front, the Minister pointed out that total public investment in FY21/22 increased by 28% YoY. (Source: Zawya (English), al-Ahram (English), Daily News Egypt (English), al-Maal, Hapi Journal, al-Masry al-Youm, Sada el-Balad, CNBC Arabia, al-Arabia

The Minister of Trade and Industry announced that Egypt’s non-oil exports have reached USD15.4bn during 6M21, marking a 23% increase YoY. This could be partly attributed to the success of the Egyptian government’s policies to support productive and exporting sectors during the Covid pandemic. A recently launched government program to boost exports that is also contributing to higher volumes involves subsidizing some of the export burdens borne by companies while offering various exporting incentives. The government ultimately aims to achieve USD100bn in annual exports. June 2021 alone witnessed a 30% YoY rise in non-oil exports. The largest receiver of Egyptian exports in 6M21 was the U.S., followed by Saudi Arabia and Turkey. The sectors that witnessed the greatest increase in their exports were: medical industries up 51%, shoes and leather products up 57%, electronic and engineering products up 53%, furniture up 38%, clothing up 48%, and fertilizers and chemicals up 37%. In the meantime, imports increased by only 11% during 6M21 to reach USD36.6bn. (Source: Zawya (English), Arab Finance, Mubasher, Hapi Journal)  

The EGX (Egyptian Stock Exchange) has approved new rules for the EGX30, the key index in the market. The new methodology sets a maximum of five companies from each sector to be included in the index, with the goal of having a more diverse representation of the market. Also, the minimum issued and paid-in capital of each constituent company has been set at EGP100mn. The new rules will be implemented during the upcoming review in early August. (Source: al-Sharq al-Awsat (English), Egyptian Stock Exchange, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, al-Shurouk, al-Dustour)

The IMF has praised the resilience of the Egyptian economy, citing the government’s “swift and prudent policy response” as the reason for Egypt’s positive economic growth rate in 2020. The IMF said that Egypt was one of very few emerging market economies to witness economic growth in 2020 at the height of the Covid pandemic and its devastating effects on economies. They said that the government’s policy responses were at the right time and in the right measures, and Egypt’s diversified economy as well as a relatively short lockdown period all contributed to a dampened shock from the pandemic and led to positive economic growth. In their view, the government’s response achieved the right balance between protecting the economy from the pandemic’s shock while simultaneously keeping debt at a manageable level to retain investor confidence. The IMF expects the Egyptian economy to grow at a rate of 5.2% in FY21/22. As for FY20/21, they are expecting growth of 2.8%. (Source: IMF (English) (Arabic), Egypt Today (English), Arab Finance, Mubasher, al-Ahram, al-Youm al-Saabe, al-Shurouk

The CBE (Central Bank of Egypt) has officially announced the details of a new mortgage financing initiative worth EGP100bn. Low- and middle-income individuals and families will be able to take out a mortgage for a residential unit through banks or mortgage finance companies at a 3% rate for a period of up to 30 years. Low-income is classified as individuals earning a maximum of EGP4,500/month or families earning EGP6,000/month. They are allowed to finance a unit with a maximum value of EGP350,000 and are required to pay a 10% down payment. Middle-income is classified as individuals earning a maximum of EGP10,000/month or families earning EGP14,000/month. Middle-income earners have two financing options: either choose a unit with a maximum value of EGP1.1mn and pay a 15% down payment, or a unit with a value between EGP1.1-1.4mn and pay a minimum down payment of 20%. (Source: CBE (English) (Arabic), Official State Information Service (English), al-Ahram (English) (Arabic), Business Today Egypt (English), Daily News Egypt (English), Egypt Today (English), Mubasher (English) (Arabic), Zawya (English), al-Maal, al-Youm al-Saabe, al-Masry al-Youm, Sada el-Balad, Sky News Arabia)

The FRA (Financial Regulatory Authority) revealed that they will be implementing mandatory ESG (environmental, social, and governance) reporting requirements by FY22. Companies will need to file these reports with their annual financial statements. Companies listed on the EGX and NBFS (non-banking financial services) companies with issued capital between EGP100-500mn will only be required to make an annual disclosure. Those with issued capital exceeding EGP500mn will be required to compile and submit detailed reports that evidence their performance with regards to indicators derived from recommendations made by the TFCD (Task Force on Climate Financial Disclosure). (Source: FRA (1) (2) (3) (4), Enterprise (English), al-Maal, Amwal al-Ghad, Mubasher, al-Ahram, al-Youm al-Saabe, al-Masry al-Youm)

CAPMAS (The Central Agency for Public Mobilization & Statistics) announced that Egypt’s trade deficit declined by 13.3% YoY in April 2021 to reach USD3.1bn. Exports surged by over 47% YoY in April 2021 to reach USD2.8bn. The increase was driven mainly by higher exports of pharmaceuticals and fresh fruits, while declines in exports of fertilizers, potatoes, and refined sugar were witnessed. On the other hand, imports increased by only 8% to reach USD5.9bn, with higher imports of automobiles, iron ores, petroleum products, and soybeans driving the increase, while imports of raw materials of iron and steel, wheat, pharmaceuticals, and chemicals declined. (Source: Egypt State Information Service (English), Zaywa (English), Egypt Today (English), Daily News Egypt (English), Business Today Egypt (English), al-Arabiya, CNBC Arabia, al-Sharq al-Awsat, Amwal al-Ghad, Mubasher, Hapi Journal, al-Masry al-Youm, al-Shurouk, al-Watan)  

Remittances from Egyptians abroad increased by 10.5% to USD26bn in 10M20/21 (July 2020 – April 2021). On a monthly basis, remittances increased 34% YoY in April 2021 (versus the same month last year). (Source: Reuters (English), Zawya (English), Egypt Today (English), Daily News Egypt (English), CNBC Arabia, al-Sharq al-Awsat, al-Maal, Mubasher, al-Ahram, al-Youm al-Saabe, al-Shurouk, al-Dustour, Sada el-Balad)

Russia has finally lifted the ban it imposed six years ago on charter flights to Egypt. The flights will be resumed by mid-August. This will result in a huge boost to tourist inflows to Egypt, as Egyptian coastal resort cities, especially Hurghada and Sharm el-Sheikh, attract large numbers of Russian tourists. It is estimated that about 200,000 - 300,000 Russian tourists visit Egypt each month, with most of them going to the coastal resort cities. Theses tourists come almost exclusively on charter flights. Tourism revenues will be boosted even further in light of the government’s recent decision to raise the maximum permitted hotel occupancy levels from 50% to 70%. (Source: Reuters (English), Moscow Times (English), Associated Press (English), Euronews (English), al-Ahram (English), Egypt Today (English), Daily News Egypt (English), Egypt Independent (English), al-Maal, Amwal al-Ghad, al-Ahram, Akhbar al-Youm, al-Masry al-Youm, al-Shurouk, Sada el-Balad)

Egypt’s CPI (Consumer Price Index) figures for June 2021 showed that urban inflation rose marginally in June 2021 to 4.9%, up from 4.8% in May 2021. On a monthly basis, inflation rose only 0.2% MoM in June versus 0.7% MoM in May. Nationwide inflation registered 5.3% in June versus 4.9% in May. The main catalyst for the slowdown in monthly inflation was food prices, which rose at a lower level than the previous month. The CBE’s (Central Bank of Egypt) inflation target is 7% +/− 2%. (Source: Reuters (English), Zawya (English), CNBC Arabia)

The Deputy Minister of Tourism and Antiquities announced that Egypt has expanded its electronic tourist visa program to encourage more touristic activity. The number of nationalities allowed to purchase an electronic tourist visa has been raised to 74, up from 46. The online system is available in 8 languages, and also enables tourists to pay for their visa online, with the issuance of the visa taking a maximum of 7 days. The tourist visa costs USD25 for a single visit or USD60 for multiple visits. (Source: Egypt Electronic Visa Portal (English), Daily News Egypt (English), Egypt Today (English), Egypt Independent (English), Mubasher, al-Ahram, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, Sada el-Balad, RT, al-Arabiya)

The ECA (Egyptian Competition Authority) has decided to implement production quotas for cement producers in response to a request submitted by 23 of those producers. The quotas are temporary, and involve a baseline cut of 10.7%. Further cuts of 2.8% will be added for each production line the producer operates, as well as additional cuts depending on the number of years of operation. The quotas come into effect on 15 July 2021. The goal of the cuts is to address the supply glut which has negatively affected the profitability of cement producers. (Source: Reuters (English), Cement News (English), Global Cement (English), Amwal al-Ghad (English), Arab News (English), al-Maal, Mubasher, al-Youm al-Saabe, al-Shurouk, CNBC Arabia, al-Arabiya)

The CBE (Central Bank of Egypt) announced that Egypt’s net foreign reserves increased by USD116mn during June 2021 to sit at USD40.6bn. After dropping significantly with the onset of the Covid pandemic due to its adverse effect on the economy, foreign reserves have been rising since June 2020. (Source: CBE (English) (Arabic), Reuters (English), Amwal al-Ghad (English), Egypt Today (English), al-Maal, Mubasher, Arab Finance, Hapi Journal)

IHS Markit have released their PMI (Purchasing Managers’ Index) report for Egypt for June 2021. The results indicate that the overall PMI score came in at its highest level since November 2020, hitting 49.9 in June 2021, up from 48.6 in May 2021. Business conditions improved on the back of recovering and rising activity, increases in the volume of exports, and an improvement in the number of tourist arrivals. The survey showed an increase in new business for the first time in 7 months, coupled with expanding output, which led to a lower drop in employment and stable inventory levels. On the other hand, a decline in job numbers, albeit at a slower pace, held back the score from crossing the neutral mark into expansion territory. Around half of survey respondents expected an expansion during the coming 12 months based on predictions of an improvement in market conditions as Covid restrictions are ended. The PMI is based on a survey of business managers. A positive score indicates an expansion, a negative score indicates a contraction, and a score of 50 is neutral. The direction of the monthly change gives an indication of where business conditions are headed. (Source: Reuters (English), Zawya (English) (Arabic), Arab News (English), al-Sharq al-Awsat (English), Egypt Today (English), CNBC Arabia, al-Maal, Mubasher, Arab Finance, Hapi Journal,

The Egyptian Prime Minister announced that Egypt has already produced 1mn doses of the Chinese Sinovac Covid vaccine domestically. Egypt’s current production level is 300,000 doses/day. The government is in talks with China to double that level through importing double the amount of raw materials needed for production. The current contract with Sinovac allows for the production of 40mn doses until the end of the year, and efforts are underway to raise that number to 80mn. Production is taking place in facilities belonging to the state-owned Vacsera (The Holding Company for Biological Products & Vaccines). Egypt aims to achieve self-sufficiency in the production of Covid vaccines by next year. The WHO has praised Egypt for managing to produce 1mn doses already, commending it on its substantial and successful efforts in achieving self-sufficiency in Covid vaccine production so that it can subsequently become a hub for exporting it to the rest of Africa. (Source: al-Ahram (English) (Arabic), Egypt Today (English 1, 2), Daily News Egypt (English), Zawya (English 1, 2), al-Sharq al-Awsat (English), al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm, Sada el-Balad, Sky News Arabia)

The Deputy Minister of Tourism revealed that Egypt’s tourism revenues have risen significantly during 1H21 (January-June 2021), registering USD3.5-4bn. During the whole of 2020, tourism revenues were only USD4bn due to the Covid pandemic’s devastating effect on global travel, and tourism in specific. In 2019, tourism revenues were USD13bn. The Deputy Minister said that she expects the number of tourists to increase by 45-60% during the coming period versus last year. Egypt received approximately 3.5mn tourists during 1H21, and the average spending per tourist per night was about USD95. (Source: Reuters (English), Zawya (English), Arab News (English), Business Today Egypt (English), Sky News Arabia, al-Arabiya, Amwal al-Ghad, Akhbar al-Youm)

Egypt’s Cabinet has decided to ease restrictions put in place to limit the spread of Covid infections. Occupant capacity limits have been increased to 70% from 50% for hotels, restaurants, cinemas and theatres. (Source: Reuters (English), al-Sharq al-Awsat (English), (Arabic), Euro News, CNBC Arabia, Mubasher, al-Masry al-Youm)

The Minister of Finance said that Egypt’s overall budget deficit has decreased to 7.8% in FY20/21, down from 12% in FY13/14. He expects it to decrease further to 6.7% in FY21/22. He also said that the budget’s primary surplus was 1.1% in FY20/21, lower than the 1.8% achieved in FY19/20, but much higher than the primary deficit of 3.5% witnessed in FY14/15. He added that the unemployment rate decreased to 7.2% in December 2020 from 13.3% in FY14/15. Also, inflation decreased to 4.5% in March 2021, down from 22% in 2017. (Source: al-Ahram (English) (Arabic), Mubasher, al-Youm al-Sabe ,Akhbar al-Youm, al-Masry al-Youm, al-Shurouk, Sada el-Balad)

The Minister of Planning and Economic Development said that Egypt has invested EGP4.4tn in public projects from July 2014 until June 2021. EGP2.4tn were invested between July 2014 and June 2020, and the investment plan for FY20/21 alone is over EGP2tn. The petroleum and mineral wealth sector was the highest in terms of projects implemented, with investments worth EGP1.2tn. Those included the development of natural gas fields, as well as upgrading refineries and building pipelines. The electricity sector followed with investments worth EGP403bn. The projects included building traditional power plants, as well as big investments in electricity generation from renewable sources such as solar and wind energy. The following sector was housing, with projects amounting to EGP225bn, mainly invested in new social housing units and units for dwellers of slums and dangerous, unsafe, and unplanned areas. There were also projects to develop potable water production capacity. The other sectors that saw significant investments were the transport sector, with EGP117bn in projects to develop roads, highways, and public transportation, as well as the health and pre-university education sectors, with EGP51bn in projects aimed at increasing the number of available school classes and establishing new hospitals and health units. (Source: Zawya (English), al-Ahram (English) (Arabic), Daily News (English), Egypt Today (English), al-Maal, Arab Finance, Akhbar al-Youm, al-Shurouk, Sada el-Balad)

The CBE (Central Bank of Egypt) has released its report on Egypt’s BOP (Balance of Payments) for 9M20/21 (July 2020 – March 2021). The BOP turned to a surplus of USD1.8bn versus a deficit of USD5.1bn in 9M19/20, which was largely a result of the onset of the Covid pandemic and its devastating effects on economic activity. This proves the Egyptian economy’s resilience, and its ability to recover quickly from the global economic crisis caused by the pandemic. The surplus was largely due to a significant increase in the capital and financial account, which achieved net inflows of USD17.1bn versus USD4.1bn in 9M19/20. This was mainly driven by large foreign portfolio investments, which reflect foreign investors’ confidence in the Egyptian economy. On the other hand, the current account showed a deficit of USD13.3bn versus USD7.3bn in 9M19/20. This was mostly driven by a sharp decline in tourism revenues, as the pandemic ground international tourism to an abrupt halt. Tourism revenues in 9M20/21 were less than one-third of those in 9M19/20. (Source: CBE (English) (Arabic), al-Maal, Amwal al-Ghad, al-Shurouk)

Recent data published by the CBE (Central Bank of Egypt) showed that foreign inflows into Egyptian T-Bills jumped to USD22.4bn by the end of May 2021 versus USD20.8bn in April 2021. These inflows have been rising gradually since January 2021, when they recorded USD19bn. (Source: al-Ahram (English), Daily News (English), al-Maal, Amwal al-Ghad)

Egypt’s House of Representatives (Parliament) has given its final approval for the government’s draft sukuk law. The law grants the government the right to issue sovereign sukuk. The sukuk can have a maximum term of thirty years, but can be reinstated indefinitely. The government’s foray into new debt instruments is aimed at diversifying its sources of financing while attracting new types of investors. Further details can be found in our news entry on 7 June 2021, which was posted when the House of Representatives approved the draft law in principle. (Source: Egypt Today (English), Zawya (English), Zawya, al-Youm al-Saabe, Sada el-Balad, al-Shurouk)

Egypt’s NWC (National Wages Council) has decided to set the minimum wage for private sector employees at EGP2,400/month. The decision will be implemented from 1 January 2022. Companies that are unable to comply with this standard can make their case to the NWC, which will then decide if they can be exempted from implementing the minimum wage. The NWC also decided on the value of the periodic bonus to private sector employees, setting it at 3% of the employees’ insurance contribution, and at a minimum of EGP60, to be implemented from July 2021. (Source: Ministry of Planning & Economic Development (English) (Arabic), Arab Finance (English), Zawya (English), al-Ahram (English), Mubasher, al-Maal, Sky News Arabia, al-Sharq, Egypt Today (English), Egypt Independent (English), al-Youm al-Saabe, al-Masry al-Youm)

The Chairman of Egypt’s FRA (Financial Regulatory Authority) revealed that Egypt will be issuing the first ever local green bonds within the coming 2-3 weeks. The bonds will be worth USD100mn. Last September, Egypt issued its first sovereign green bonds worth USD750mn. The issuance generated a lot of interest, and was oversubscribed five times. Green bonds are a fixed-income investment product that raise funds to be used exclusively for environmental projects. (Source: Enterprise (English), al-Maal)

The EBRD’s (European Bank for Reconstruction & Development) Managing Director for the South & East Mediterranean revealed in an interview with al-Maal newspaper that the bank is targeting investments of over EUR1bn in Egypt this year. The investments will focus on green, sustainable projects that are environmentally responsible. They will also be directed at projects that address financial and economic inclusion, digitization and the digital transformation, and the encouragement of industrial activity. Last year, the bank provided funding of around EUR1bn, most of which was focused on projects related to social responsibility, women in the workforce, and funding for banks. (Source: al-Maal [interview])

According to a report by AIECGC (The Arab Investment & Export Credit Guarantee Corporation), Egypt accounted for 15% of all FDI (foreign direct investment) inflows in the Arab region in 2020, with FDIs of USD5.9bn. The UAE had the most inflows, representing 49% with USD19.9bn, followed by Egypt and then Saudi Arabia. The sectors that received the most inflows in the region were business services, software, and financial services, receiving 50% of the inflows. In the Arab region, FDI inflows increased by 2.5% to reach USD40.5bn. The top 5 countries by the value of inflows received 95% of all inflows into the region. On a related note, and according to a report by UNCTAD (The United Nations Conference on Trade & Development), Egypt was the top recipient of FDI in Africa in 2020. With USD5.9bn of FDI inflows, Egypt represented 15% of all FDI inflows into Africa. Egypt was followed by the Republic of Congo and then South Africa. Regionally within Africa, Egypt represented over half of the FDI inflows to the North Africa region. (Source: AIECGC (English), UNCTAD (English), Zawya (English), Reuters, Mubasher, Amwal al-Ghad, Arab Finance)

The Minister of Electricity and Renewable Energy has announced that Egypt is at an advanced stage in evaluating a new project to generate green hydrogen through water electrolysis. The project is expected to cost around USD4bn. Feasibility studies have been completed and submitted by a Belgian consortium of infrastructure companies including DEME, Fluxys, and the Port of Antwerp’s management company. The evaluation of the project is being conducted in partnership with the SFE (Sovereign Fund of Egypt) and a number of other related government ministries. The end goal is to produce green hydrogen and export it to Europe. Green hydrogen is a fuel that does not use any fossil fuels in its production. It is made through electrolysis (splitting water into hydrogen and oxygen), and uses renewable energy to fuel the process. This is in contrast to grey hydrogen, which is produced using methane. Goldman Sachs estimates that green hydrogen could provide up to 25% of global energy needs by 2050. Egypt’s government is targeting to generate 42% of its total energy from renewable sources by 2035. They are already ahead of schedule by one year, and will reach a 20% ratio by the end of this year. Egypt currently has the largest solar power plant in the world in the Benban region. The government has allocated more than 7,000km2 for renewable energy production projects, an area which could potentially generate around 90,000MW of electricity. (Source: Arab News (English), Amwal al-Ghad (English), al-Ahram, October Magazine. Background sources: Forbes, Goldman Sachs)

The CBE (Central Bank of Egypt) has decided to extend the current waivers on fees for some banking activities until the end of this year. The measures include waivers on the fees and commissions for EGP-denominated bank and mobile transfers, ATM withdrawal fees, and fees for the issuance of electronic wallets and contactless cards. They also include waiving fees for the activation of e-commerce electronic payment collection operations, including monthly fees and fees for obtaining additional services. These waivers were implemented earlier in an effort to limit the negative impact of the Covid pandemic on the economy. They were also aimed at encouraging bank customers to avoid entering banks in-person to prevent the spread of Covid through social distancing. By waiving the fees, customers have an incentive to perform some of their banking activities digitally or through ATMs. This also simultaneously serves the purpose of speeding along the government’s push towards digitization, financial inclusion, and decreasing dependence on physical banknotes. (Source: Zawya (English), al-Ahram (English), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Ahram)

The IMF (International Monetary Fund) has announced that it has completed its second and final review of the Egyptian economy’s performance after the implementation of its economic reform program. This review is part of the 12-month SBA (Stand-By Arrangement) between Egypt and the IMF, and now that it has been completed, allows Egypt to draw about USD1.7bn representing the final tranche of the arrangement. This brings the total amount borrowed under the facility to USD5.4bn, which represents 185% of Egypt’s quota. The IMF praised Egypt’s swift fiscal and monetary policy responses to the Covid pandemic. These policies served the dual purpose of mitigating the health and social impacts of the pandemic while protecting the stability of the economy, maintaining debt sustainability, and retaining investor confidence. (Source: IMF (English), Egyptian State Information Service (English), Reuters (English) (Arabic), al-Ahram (English) (Arabic), Egypt Today (English), Mubasher, al-Maal, CNBC Arabia, al-Youm al-Saabe, al-Masry al-Youm, el-Watan, al-Shurouk)

The government has announced its planned increase in the prices of electricity for residential units. The increase will be 13% on average, varying depending on the consumption bracket. This is a lower increase than last year’s 19% average increase. The increase will affect all brackets except the top one. Due to the adverse economic effects of the Covid pandemic, the government has extended the full phasing out of electricity subsidies until FY24/25, which is a 3 year extension from the original plan. On the other hand, rates for commercial consumers have not increased. (Source: Enterprise (English), al-Maal, el-Watan, al-Masry al-Youm, Veto Gate)

The SCA (Suez Canal Authority) has decided to offer further discounts to a variety of ships passing through the canal in order to increase volumes and boost revenues. Vehicle carriers travelling from Northern Europe to Southeast Asia and the Far East will receive a 5% discount on tolls until the end of this year. Also, container ships travelling from the East Coast of America and heading to South and Southeast Asia will see their 40-60% discounts extended until the end of this year. Furthermore, there has been a renewal of the 30-50% discount for LNG tankers travelling between the American Gulf, the Arabian Gulf, and India. Other discounts have also been applied or renewed. (Source: Suez Canal Authority (English) (Arabic), al-Maal)

The Minister of Trade and Industry announced that the government will be launching a new and improved export subsidy program in July 2021. The program will include incentives for exports to Africa in particular, and will run for 3 years. The sectors that can apply for the program are the automotive, pharmaceuticals, chemicals, and ceramics sectors, while other sectors are also being considered for inclusion. The Minister said that the program will solve around 40% of the obstacles that face exporters. The government is also conducting a number of studies in conjunction with the CBE (Central Bank of Egypt) aimed at formulating better export incentives. On a related note, the Export Subsidy Fund has paid EGP4.3bn in subsidies to 925 exporters in its most recent disbursement. The fund has paid EGP27bn in total since the launch of the program last year. (Source: Enterprise (English), Amwal al-Ghad (1), (2), (3))

The U.S. announced that it will be donating 14mn doses of its Covid vaccine supply to “regional priority” countries which include Egypt. A future announcement will detail the specific amounts that will go to each country, as well as the type of vaccine. This is part of the U.S.’s plan to donate 80mn doses globally by the end of June 2021. Around 75% of this amount will be given to COVAX, the humanitarian vaccine distribution program run by the WHO (World Health Organization), while 25% will be sent directly to selected countries. (Source: U.S. White House (English), NBC News (English), Enterprise (English))

The head of the Saudi Egyptian Business Council said that he expects Saudi Arabia to invest USD20bn in Egypt over the coming 5 years. He stated that there are 6,280 Saudi companies currently registered and operating in Egypt with investments of over USD30bn. His comments follow the conclusion of last week’s sessions for the joint Saudi Egyptian Committee, which was headed by the Saudi Minister of Trade and included Saudi ministers and high-ranking officials. They met with the Minister of Planning and Economic Development, the Minister of the Public Enterprises Sector, and other high-ranking Egyptian officials. (Source: Enterprise (English), al-Arabiya, Akhbar al-Youm)

The spokesperson for the Cabinet revealed that the government has included tuktuks (a covered 3-wheeled vehicle that is a cross between a motorcycle and a car and serves as an alternative to taxis) in the state’s NGV replacement initiative. The initiative encourages owners to replace their vehicles with new NGVs by offering incentives, including long-term financing at subsidized rates. Alternatively, a new program is currently being launched that will encourage tuktuk owners to replace their vehicles with minivans using similar incentives. The spokesperson estimated that there are currently about 2.5-3.0mn tuktuks in Egypt. With regards to licensing existing tuktuks, he said that the government has put in place a number of simplified policies and incentives to encourage owners to license their vehicles. Vehicles that are not licensed by the end of the specified licensing window, which could extend to up to one year, will be confiscated by the government. (Source: Sada el-Balad)

The CBE (Central Bank of Egypt) has decided in its meeting on Thursday to leave interest rates unchanged. The overnight deposit rate, overnight lending rate, main operation rate, and discount rate are 8.25%, 9.25%, 8.75%, and 8.75% respectively. The reasons given by the CBE for this decision were that inflation has recently increased and that GDP growth has improved. The rise in inflation is partly due to an unfavourable base effect resulting from the early impact of the Covid pandemic last year, an effect which the CBE expects to continue in the short term. As for GDP growth, it reached 2.9% in 1Q21 versus 2.0% in 4Q20. This is attributed to a sustained momentum of recovery across various sectors, high consumption levels especially private consumption, and a decline in the undesirable contributions of gross domestic investments and net exports. The CBE also cited the increases in the global prices of oil, food, and other commodities as contributing to their decision. (Source: CBE (English), al-Ahram (English), Egypt Today (English), Mubasher, al-Maal, al-Dostour)  

The Minister of the Public Enterprise Sector has announced that Egypt will begin manufacturing electric cars domestically by August 2022. Production capacity is expected to reach 50,000 cars per year. He added that 3,000 electric vehicle charging stations are being built across the country, and all of them are expected to be operational within 3 years. The government will subsidize the cost of each car by EGP50,000. Production will be based on a memorandum of understanding between the domestic el-Nasr Automotive Manufacturing Company and the Chinese Dongfeng Motor Corporation. Testing of imported electric vehicles on Egypt’s roads will begin in July of this year. (Egypt Today (English), Enterprise (English), Arab News

 ESRS (Ezz Steel) announced their 1Q21 results. Net income after minority interest came in at EGP783mn compared to a loss of EGP860mn in 1Q20. Revenue increased by 25% YoY to reach EGP13.5bn. EBITDA was EGP2.7bn compared to a negative EGP37mn in 1Q20. (Source: ESRS 1Q21 Financial Statements (English), Mubasher (English) (Arabic), Arab Finance, al-Sharq, Economy Plus Me)

The House of Representatives has approved the government’s FY21/22 budget. Total expected expenditures were EGP1.80tn, while revenues were EGP1.37tn. Allocations for education were EGP388bn and EGP276bn for health. The allocation for wages was EGP361bn, an increase of 11%. Allocations for public investments grew by 28% to reach EGP358bn, while government subsidies were EGP321bn. The goals of the budget are to achieve a budget deficit that represents 6.7% of GDP, as well as a 1.5% primary surplus. This is based on revenues rising by 22% while expenditures rising by only 14%. The increase in revenues is mainly driven by an 18% rise in tax collection. (Source: Egypt Today (English), Mubasher, al-Maal, al-Ahram, al-Masry al-Youm)

The Minister of Planning and Economic Development said that public investments totalled EGP2.4tn in the last 5 years, an increase of 275% over the previous 5 years. Total current investments in FY20/21 are EGP827bn, of which public investments are EGP637bn. She also said that there has been growth in the per capita share of public investments. This sits at EGP6,142 in FY20/21, which is a 25% increase YoY. She expects this figure to reach EGP8,828 next year, representing an increase of 45% over this year’s per capita share. (Source: Ministry of Planning & Development (English) (Arabic), Zawya (English), al-Maal, Mubasher, Akhbar al-Youm, al-Shurouk)

The Prime Minister has announced that the French Finance Minister signed agreements worth EUR3.8bn with Egypt yesterday. The agreements focus on a number of sectors, including public transportation, energy, education, agriculture, social safety nets, and sewage systems. Some of the public transportation agreements involve upgrading, maintaining and establishing new lines on Cairo’s subway, revamping Alexandria’s metro, as well as establishing new train lines and revamping existing ones. (Source: France 24 (English), Egypt Today (English), al-Arabiya, Mubasher, Arab Finance)

The World Bank is considering providing USD560mn to Egypt in two separate packages. The first will be worth USD360mn, and is aimed at supporting the general budget and fostering inclusive growth. The second package, worth USD200mn, will be targeted towards financing education reforms. (Source: Economy Plus Me)

The Minister of Tourism and Antiquities announced that Egypt has received around 2mn tourists in the first five months of 2021. This represents 40% of the traffic that was received in the same period in 2019, a year which represents Egypt’s traditional inflow of tourists well before the pandemic hit. The total number of tourists received in 2019 was 13mn. The minister expects the tourism sector to fully recover by mid-2022. He credited Egypt’s professionally-applied Covid preventative measures as contributing to the return of tourists to Egypt. Part of these measures was the successful vaccination of all employees in the tourism sector and related industries in Egypt’s two main tourist attraction cities and regions in the Red Sea and South Sinai governorates. Furthermore, he revealed that the government has hired a British-Canadian company to formulate a global media advertising strategy for Egyptian tourism which should be completed in early July 2021. The promotional campaign will run for 3 years at a cost of USD90mn. (Source: Official State Information Service, al-Ahram (English) (Arabic), al-Youm al-Saabe, al-Shurouk)

The Minister of Planning and Economic Development revealed that public expenditures on infrastructure projects over the last 7 years amounted to USD100bn (EGP1.7tn). She also said that the government is keen on including the private sector in the country’s development efforts, which is part of Egypt’s Vision 2030 plan. This is achieved through many incentives that create a suitable business environment for the private sector to participate in the implementation and management of infrastructure projects in Egypt. The Minister indicated that some of the key projects that have been implemented were the development of the Suez Canal Corridor, the establishment of the New Administrative Capital, the national road and highway network, and energy sector projects including building the world’s largest solar power generation plant in Aswan’s Benban area. This has led to Egypt advancing considerably on many of the global public goods indices. On the infrastructure quality index, Egypt advanced 48 places to sit at the 52nd position globally. On the road quality index, Egypt advanced 90 places to hold the 28th place globally. Also, on the electricity quality index, Egypt advanced 44 places to occupy the 77th place globally. (Source: Daily News Egypt (English), Zawya (English), al-Ahram)

The Prime Minister has announced that Egypt will begin producing the Sinovac Covid vaccine next week. In a separate announcement, the Minister of Health and Population said that the locally-produced vaccine will be made available to citizens and residents within 6 weeks. The government’s plan is to produce around 40mn doses by the end of this year. The government has allocated EGP750mn to fund the vaccine’s production process. Egypt aims to become a regional hub in Africa for the production of the vaccine, after fulfilling domestic needs. 40% of the total population of Egypt is expected to have been vaccinated by the end of this year. The Sinovac vaccine has received approval by the WHO (World Health Organization) for emergency use. Furthermore, Egypt is currently in talks with the makers of the British AstraZeneca vaccine to manufacture that vaccine domestically as well. (Source: al-Ahram (English), Daily News Egypt (English), Egypt Today (English), al-Maal, Amwal al-Ghad)

The government’s CAPMAS (Central Agency for Public Mobilization and Statistics) has announced in its most recent report that the annual inflation rate declined in May 2021 to reach 4.9% versus 5.0% in May 2020. Monthly inflation (between April and May 2021) was 0.6%. (Source: al-Ahram (English) (Arabic), CNBC Arabia, Mubasher, Arab Finance, Amwal al-Ghad, al-Watan)

The Minister of Finance said that Egypt is currently studying issuance of more “sustainable development bonds”, also known as green bonds. The goal of issuing such bonds would be to diversify the government’s sources of funding and tap new investors. The Minister said that due to the limited size of the market for green bonds, the new issuance would be within the same size as the previous successful offering. Egypt had issued the first green bonds in the MENA region back in September 2020. The bonds were for USD750mn at a rate of 5.25%. (Source: Official Egyptian State Information Service (English), Egypt Today (English), Hapi Journal, al-Masry al-Youm)

The leading global index provider FTSE Russell has announced that they will be launching a new global government bond index that will focus exclusively on frontier emerging markets. Egypt is one of 13 countries eligible for inclusion at the launch of the index. The index series will be called the FTSE Frontier Emerging Markets Government Bond Index Series. The series will include a market value weighted index and another index with a 10% country cap. The indices will track fixed-rate, local currency government bonds. The establishment of these frontier emerging markets indices comes as a response to rising interest in this expanding area of global debt markets. This interest is partly driven by ample liquidity and low interest rates, which is driving capital flows towards higher yielding products in previously untapped markets. Egypt’s inclusion in these indices will provide more transparency for their bonds, thus strengthening the country’s capital markets through open access to metrics such as pricing and performance. It will also pave the way for global financial institutions to begin building financial products based on these objective indices. The Minister of Finance said in a statement that he expects additional foreign currency inflows of about USD4bn based on Egypt’s inclusion in the index series. This would represent even more than the expected USD1.4-2.2bn should Egypt be re-included in the JPMorgan EM Bond Index later this year. (Source: FTSE Russel Official Press Release (English), Reuters (English), U.S. News & World Report (English), Enterprise (English))

The Minister of Health and Population announced that Egypt has just received 500,000 doses of the Chinese Covid vaccine Sinovac. Preparations are currently underway to begin production of Sinovac in Egypt, with the first batch expected to be produced by 15 June 2021. Egypt aims to vaccinate 40% of the population by the end of 2021, using all the available vaccines. (Source: Egyptian Cabinet (Official), Reuters (English), al-Ahram (English) (Arabic), Egypt Today (English), al-Arabiya, al-Maal, Arab Finance, Amwal al-Ghad, al-Masr al-Youm, al-Youm al-Saabe)

ETEL (Telecom Egypt) and Vodafone International have signed an amended shareholders’ agreement that modifies Vodafone Egypt’s dividend policy. The new agreement entails Vodafone Egypt paying exceptional dividends of about EGP10bn in 2021. On top of that, a minimum has been set for future dividends at 60% of Vodafone Egypt’s free cash flow. The agreement also gives Vodafone International the right to transfer its share in Vodafone Egypt to other entities within the Vodafone International Group. As for ETEL, they now have the right to obtain more detailed information about their investment in Vodafone Egypt. ETEL owns 45% of Vodafone Egypt, with the remainder belonging to Vodafone International. The Minister of Communication and Information Technology witnessed the signing of the agreement. He emphasized its strategic benefits, saying that it will have a positive impact on the Egyptian telecommunications industry as it improves compatibility between both companies. The agreement is seen as beneficial by both parties. ETEL sees it as guaranteeing their partnership with Vodafone, and gives it better visibility on its investment while providing more confidence to its shareholders. Vodafone considers the agreement a basis to continue investing and growing their business in Egypt, while also allowing for more innovation in their offerings. Both parties agree that the ultimate goal is for them to work together as they contribute to achieving the government’s vision for digitization and financial inclusion. (Source: Daily News Egypt (English), CNBC Arabia, al-Arabiya, al-Youm al-Saabe, al-Masry al-Youm)

The House of Representatives (Parliament) approved in principle a new bill that allows the government to issue Sukuk. The final vote will take place once two thirds of the MPs are available for voting. The bill aims at diversifying the government’s sources of funding by attracting a new segment of investors and providing further liquidity in the domestic market. The global market for Sukuk has issuances worth approximately USD2.7tn. Sukuk are Islamic Sharia-compliant bonds which can be traded like regular bonds, but are considered high-risk as they do not have a fixed interest rate. They will be denominated in both Egyptian Pounds and foreign currencies, and offered on the domestic and international markets. (Source: al-Ahram (English), Enterprise (English), al-Maal, al-Masry al-Youm, Akhbar al-Youm)

The Minister of Health and Population has confirmed that the first batch of the Chinese Sinovac vaccine will be produced in Egypt by 15 June 2021. The domestically-produced vaccine will be ready for administration to the general population within 6 weeks of production, as it needs to undergo some post-production testing. The production plan entails producing 40mn doses by the end of 2021. The vaccine will be initially produced at the current state-owned Vacsera facility. Two additional new facilities that cost EGP750mn will be coming online soon to complement the production of the vaccine. The Minister also hinted that there is a plan to produce another European vaccine in Egypt soon, without giving further details. (Source: al-Maal, Amwal al-Ghad, al-Shurouk)

Goldman Sachs’ MENA economist Farouk Soussa told Bloomberg that the CBE (Central Bank of Egypt) can afford to cut interest rates at its meeting this month. He estimates that the possible cuts could be up to 50bps. Egypt currently has the highest real interest rates among emerging markets, and inflation has recently slowed down. Soussa sees that a rate cut would not make Egypt’s important carry trade less attractive as the current high rates give policymakers enough room to be more aggressive. He expects that any potential tapering by the U.S. Federal Reserve in response to rising domestic inflation will not have a detrimental effect on Egypt, and states that Goldman Sachs currently maintains its bullish stance on Egyptian bonds in both local and hard currency. (Source: Bloomberg (English), Enterprise (English))

Cigarette prices in Egypt, both domestic and imported, will increase by EGP0.50/pack on 1 July 2021. This increase is part of the government’s plan to levy a new tax on cigarettes that will ultimately amount to EGP1.50/pack, which was legislated in 2018. The current increase is by EGP0.25/pack, with the VAT rising by another EGP0.25/pack. The tax aims to fund the new universal healthcare system that is currently being rolled out gradually in phases across Egypt. (Source: al-Maal, al-Ahram, Veto Gate)

Market Economics’ Index PMI for May 2021 for Egypt rose to 48.6 from 47.7 in April 2021 and 40.7 in May 2020. The PMI (Purchasing Managers’ Index) aims to capture non-oil private sector activity through a survey of businesses, with a reading above 50 indicating expansion and vice versa. While activity has been contracting for the last six months, the rate of contraction in May 2021 was the lowest in three months. Despite weak consumer demand due to Covid, export orders increased significantly. In the survey, businesses were the most optimistic since early 2018, and expected an imminent strong recovery in business conditions. (Source: Zawya (English), Mubasher (English) (Arabic), Trading Economics (English))

The Minister of Planning and Economic Development announced that Egypt’s GDP grew by 2.9% in 3Q20/21. As for 9M20/21, GDP growth was 1.9%. The government expects 4Q20/21 growth to be 5.2-5.5%. Despite the negative effects of Covid on the economy, a number of sectors showed resilience and continued to grow, such as health, communications, agriculture, construction, education, transportation, and storage. The sectors that have been adversely affected by Covid are mainly tourism and manufacturing, although they are showing signs of improvement. Revenues from the Suez Canal have also suffered to the global economic slowdown. Notably, the communications sector’s contribution to GDP grew by 16.2% to reach a 3.2% share. The real estate, trade, agriculture, and industrial sectors represented 52% of GDP. (Source: Zawya (English), al-Ahram (English), al-Maal, Mubasher, Arab Finance, al-Shurouk)

The value of foreign holdings of Egyptian Treasury Bills (T-Bills) increased in April 2021 by 4% MoM to reach USD20.8bn, according to the CBE (Central Bank of Egypt). During 4M20, around USD3bn were invested in short-term financial instruments due to improving sentiment towards emerging markets. (Source: CBE, Enterprise)

Egypt’s external debt has risen by 3% QoQ to USD129bn in 2Q20/21. At the end of FY19/20, external debt sat at USD123bn. Currently, about 91% of this debt is long-term. Of this long-term debt, around 40% is owed to multilateral institutions such as the IMF and the IBRD, while bonds account for 21%. The general government remains the main debtor, representing around 60% of total external debt. The increase in external debt was mainly a result of a rise in net disbursements of loans and facilities. Also, the depreciation of the USD versus debt denominated in other currencies increased the book value of that portion of the debt. The main borrowing currency for Egypt is the USD, representing 60% of total external debt. Egypt’s debt to GDP ratio was 34% at the end of 2Q20/21, well below both Latin America and the Caribbean, as well as the Middle East and Central Asia. (Source: CBE (English), al-Ahram (English), Amwal al-Ghad (English))

Egypt’s Senate has approved the setting up of a new fund for emergency medical expenses. The fund will address expenses for medical services not covered by the government budget. These expenses include the treatment of patients in emergency and intensive care units, buying medications, and providing services to people who are on medical waiting lists. The fund will be affiliated with the Prime Minister and will be subject to oversight by the Senate. (Source: al-Ahram (English), Mubasher, al-Maal)

According to the Automate Marketing Information Council’s (AMIC) most recent report, automobile sales grew by 48% YoY during 4M21 (the first four months of 2021). Passenger cars grew by 56% YoY, while truck sales grew by 60% YoY. On the other hand, bus sales declined by 9% YoY. On a monthly basis, passenger car sales grew by 173% YoY in April 2021, boosted by a large base effect, as sales were very weak in April 2020 due to the onset of the COVID pandemic. Bus sales grew by 12% YoY and truck sales grew by 188%. (Source: AMIC, al-Maal)

The government has announced that restrictions that were put in place on 6 May 2021 to combat the spread of COVID will be lifted from 1 June 2021. The restrictions included a deadline of 9pm for the closure of stores, malls, and restaurants. Other restrictions still remain in place, such as strict adherence to summer opening hours, a ban on holding religious celebrations and mourning marquees, the prohibition of serving hookah (sheesha) by restaurants and cafes, and a requirement that weddings be held in open areas. As has been the case since the beginning of the pandemic, all preventive and precautionary measures such as social distancing must still be adhered to. (Source: Reuters (English), al-Ahram (English), Egypt Independent (English), al-Arabiya, al-Masry al-Youm)

Recently announced figures for the retail pharmaceutical market in Egypt show that sales increased by 17% YoY in April 2021 to reach EGP6.3bn. The increase YTD has been 6.7% YoY. The largest companies in terms of sales are, in order: Novartis, Sanofi, Amoun, Eva, GlaxoSmithKline, EIPICO, Pharco, Medical Union, Pfizer, Hikma, Global Napi, Marcyrl, Mash Premier, AstraZeneca, and Apex. (Source: Souq al-Dawaa)

Egypt’s Senate has approved the government’s socio-economic plan for FY21/22. The plan targets increasing economic growth to 5.4% from the current 2.6%. It anticipates EGP1.25tn in investments, of which the government will directly invest EGP385bn, equal to 5% of GDP. Out of the government’s investments, 58% will be spent on social services, while 19% will go to sanitary drainage services. The remainder will be spent on telecom & I.T., agriculture, electricity, water, construction, and real estate. One third of total investments will be dedicated to achieving sustainable development in Upper Egypt and border governorates, while the remainder will go to building new housing communities, improving slum areas, and environmental projects including reducing carbon dioxide emissions. Private investments are expected to come in at EGP317bn, and will focus on real estate, manufacturing, energy, telecom, and agriculture. The government expects Foreign Direct Investment (FDI) to reach USD7bn, which is similar to the levels witnessed before the COVID pandemic, while the IMF had previously forecast FDI to amount to USD8.3bn. Tourism revenues are expected to reach USD6bn and foreign exchange reserves to sit at USD42bn by the end of FY21/22. Inflation should decline to 6%, unemployment to 7.3%, and the poverty rate to 29%. Non-oil merchandise exports are expected to increase by 10% and remittances from abroad to rise by 19%. (Source: al-Ahram (English), Egypt Today (English), Mubasher, Amwal al-Ghad, al-Youm al-Saabe, Akhbar al-Youm, al-Masry al-Youm)

Colliers have issued their MENA Hotels Quarterly Review Report for 1Q21, forecasting a 7% rise in the total number of hotel rooms in Egypt in 2021. Hurghada accounts for 31% of the new supply. The report revealed that hotel occupancy declined YoY in four of Egypt’s cities, mainly due to a strong base effect, since the first two months of 2020 had normal tourism activity before the COVID pandemic hit. Hotel occupancy for 2021 is forecast to increase by 66% YoY in Cairo to reach 45% and increase by 58% YoY in Sharm el-Sheikh to sit at 37%. Hotel occupancy cannot exceed 50% as per government regulations put in place to ensure social distancing and combat the spread of COVID. (Source: Colliers 1Q21 MENA Hotels Quarterly Review (English), Daily News Egypt (English))

Non-Oil Exports Rise In 4M21 The Minister of Trade and Industry has announced that Egypt’s non-oil exports have increased by 11% YoY during 4M21 (the first 4 months of 2021) to reach USD9.8bn. This comes in the midst of the global pandemic and its negative effects on commercial activity, and is due in part to the government’s swift policies that supported productive sectors, including their specific support for exports. On the other hand, imports only increased by 5% in the same period. The government is planning to reach USD100bn in exports within the coming years, with a special focus on exports to the African continent. Some of the sectors that saw the greatest increases in exporting activity were Medical Industries (up 60%), Handicrafts (up 53%), Engineering Industries (up 48%), Leather & Shoe Industries (up 40%), and Garments (up 35%). Four countries accounted for about 30% of total exports, with the U.S. and Saudi Arabia having the biggest shares of exports, followed by Italy then Malta. As for imports, five countries supplied about 41% of total imports, with China having the lion’s share, followed by the U.S, Germany, Russia, and Italy. (Source: Daily News, Egypt Today, al-Maal, al-Youm al-Saabee, al-Shurouk)

Tourism Revenues Expected For 2021 In a tourism conference in Riyadh, the Minister of Tourism and Antiquities indicated that Egypt expects tourism revenues of USD6-9bn in 2021. He said that this figure will be supported by a high number of tourists visiting from Eastern Europe and the Arab Gulf states. The expectation comes on the back of a gradual increase in both the number of tourists visiting Egypt and in the number of tourists departing from their home countries in general. With tourist inflows rising recently to about 500,000 tourists per month, the total for 2021 is expected to reach over 6mn. (Source: Bloomberg, Arab Finance, Amwal al-Ghad

COMI & TMGH Establish A New Real Estate Development Company The Commercial International Bank of Egypt (COMI) and Talaat Moustafa Group Holding, also known as TMG Holding (TMGH), established a new real estate development company in 1Q21. The new company is in the form of a Special Purpose Vehicle (SPV), and is named TCA Properties. COMI will own 37% while TMGH will hold the remainder. TCA Properties will engage in the acquisition, sale, and leasing of properties and land of a commercial nature. TMGH enters the SPV through its subsidiary Alexandria Real Estate Investment, and it will be managed by another one of TMGH’s subsidiaries. It is worthy to note that TMGH had set up a JV with Egyptian banks last year to develop land owned by the banks inside TMGH’s mega-compounds through the construction of mixed-use projects. (Source: COMI 1Q21 Report (Arabic) (English), Enterprise, al-Youm al-Saabee

IMF officials have reached an agreement with Egypt regarding the completion of the second and final review of the IMF’s one year USD5.2bn Stand-By Arrangement (SBA). Under the agreement, Egypt will receive the third and final tranche of the SBA, amounting to USD1.6bn, pending approval by the IMF’s Executive Board. After concluding the discussions, the IMF praised Egyptian authorities for their demonstrated commitment to the goals of the IMF’s program. These goals are to maintain macroeconomic stability during the COVID pandemic, while simultaneously implementing structural reforms and maintaining key social and health spending. The IMF stated that the Egyptian economy has shown resilience as authorities managed to alleviate the pandemic’s effect through quick and balanced policies, including reaching out to the IMF for assistance. As evidence of this resilience, the IMF cited Egypt’s net accumulation of international reserves and a primary budget surplus which both exceeded the program’s targets, inflation that was kept in check, as well as exchange rate flexibility in both directions which softens external shocks. After the discussions, the IMF’s forecast for the Egyptian economy in the short term was that macroeconomic stability will be preserved throughout the economic recovery, supported by appropriate fiscal and monetary policies. These policies include fiscal transparency and governance reforms, social protection, improvements to the business environment, a reduction in debt vulnerability, and clearing more space in the budget for priority spending including higher investments in infrastructure, health, and education. The IMF predicted 2.8% growth in FY20/21, rising to 5.2% in FY21/22. To enhance the recovery, address post-pandemic challenges, and facilitate more growth, the IMF suggested broader structural reforms. (Source: IMF (English) (Arabic), al-Ahram (English) (Arabic), Mubasher, Arab Finance, Amwal al-Ghad, Hapi Journal, al-Arabiya)

The Egyptian Stock Exchange (EGX) has approved the listing of the shares of Iron and Steel for Mines and Quarries on the EGX under the ticker symbol ISMQ from 27 May 2021. This follows the Financial Regulatory Authority’s (FRA) acceptance to register the new company in their database. The company is a spinoff of Egyptian Iron and Steel (IRON), which is undergoing liquidation. The new company will have a paid-in capital of EGP195mn distributed over 976.8mn shares, with a par value per share of EGP0.20. (Source: EGX, FRA, Mubasher (English) (Arabic), Arab Finance, Amwal al-Ghad)

The U.S. President has expressed his appreciation and thanks to the Egyptian President for Egypt’s critical role in reaching a ceasefire in Gaza. Biden said, “I extend my sincere gratitude to President al-Sisi and the senior Egyptian officials who played such a critical role in this diplomacy.” During the call between the two Presidents there was also a discussion about strengthening the Gaza ceasefire, delivering humanitarian aid to the Palestinians, and the upcoming reconstruction efforts in Gaza. They also discussed ways to revive the peace process between the Palestinians and the Israelis. The U.S. President also praised Egypt’s efforts in supporting the Libyan political process, as well as touching on Iraq and recent developments there. The discussions also extended to the topic of the Grand Ethiopian Renaissance Dam (GERD), and the U.S. President expressed his commitment to helping Egypt, Sudan, and Ethiopia reach a diplomatic resolution that meets the needs of all three countries. (Source: Reuters, al-Ahram, Egypt Today)

The Ministry of Trade and Industry has decided to include the pharmaceutical sector in its new export subsidy program. The updated program, which builds on the previous version, will be inaugurated within the coming few days, and will contribute to boosting Egyptian exports especially to African and emerging markets. In the same context, the Export Council for Medical Industries said that this inclusion will complement their current strategy for increasing exports of medical, pharmaceutical, and cosmetic products. The first phase of the strategy aims to reach 21 African countries, and the second phase will target 15 countries from the former Soviet bloc. Then the third phase will focus on the Far East countries including Vietnam, the Philippines, and Malaysia, and the fourth phase will target Latin American markets. (Source: al-Ahram, al-Maal, Mubasher, Amwal al-Ghad)

During a tour of petroleum refineries in Alexandria, the Minister of Petroleum and Mineral Resources said that the Ministry aims to achieve self-sufficiency in petroleum products by 2023. He said that the petroleum refining industry is currently witnessing a comprehensive development plan. This plan involves raising the capacity of refineries and modernizing them, as well as completing and operating new projects. The goal is to support an advanced system for the refining and manufacturing of petroleum in Egypt which is aligned with the current phase of development in the country, reaches international standards, and accomplishes the Ministry’s self-sufficiency target. (Source: Ministry of Petroleum, al-Youm al-Saabe, , al-Ahram, al-Masry al-Youm, Akhbar al-Youm)

The CBE (Central Bank of Egypt) will discuss, in its upcoming meeting in June, extending the current waiving of fees for bank transfers in EGP and ATM usage until the end of 2021. The waiver also includes allowing for electronic wallets to be issued for free, waiving fees for money transfers done through mobile phone accounts, and issuing prepaid payment cards for free, as well as canceling fees for contactless transactions done by merchants. The waiver was implemented in March 2020 to alleviate the impact of COVID on bank customers and is set to expire at the end of June 2021. (Source: al-Maal)

COMI (Commercial International Bank) announced its results for 1Q21. The results point to an increase in net profit of 20% YoY, reaching EGP2.87bn. This figure was supported mainly by lower provisioning, with loan loss provisions down 43% YoY to sit at EGP702mn. Other bottom line growth drivers include non-interest income (up 16% YoY), lower operating expenses (−11% YoY) and a lower effective tax rate (from 30% versus an average of 33.5% over the past 4 quarters). Total loans increased 8% YoY and deposits surged 18% YoY. On the other hand, NII (net interest income) fell 8% YoY to reach EGP5.68bn, with NIM (net interest margin) dropping by 1.4% YoY to stand at 5.8%. The LDR (loan-to-deposit ratio) reached 38%, down from 41% in March of 2020. According to the bank, they remain the top private sector bank in Egypt in terms of revenues, net income, deposits, and total assets. (Source: Bank Earnings Release, Bank Financial Statements, Mubasher, Amwal al-Ghad, Arab Finance)

HELI (Heliopolis Co. for Housing & Development) has decided to extend the bidding deadline for the development of Heliopark until 29 June 2021, which was previously set for 16 June 2021. This extension was granted based on requests from interested companies. The bidding process officially began on 4 April 2021 for the 1,695 feddan plot of land, which will be jointly developed by HELI and the winning bidder. According to HELI’s Managing Director, 10 companies have already purchased the project’s specifications book, with a number of other domestic and international companies expressing their interest in the project. (Source: Arab Finance, Arqam)

The Suez Canal’s revenues increased in 4M21 (January to April 2021) by 2.7% YoY to reach USD1.96bn. This comes despite the number of ships crossing the canal declining by 2.5%, and the net loads carried by these ships declining by 1.6%. As for the month of April 2021 specifically, revenues increased by 16% YoY. The number of ships crossing the canal increased by 4.8% YoY, and the net loads carried by these ships increased by 8% YoY. (Source: al-Mal, Mubasher, CNBC Arabia)

The Egyptian Cabinet has decided to extend the measures intended to curb the spread of COVID-19 until the end of May 2021. These measures were implemented on 6 May 2021, and include early closing hours (9pm) for stores, malls and restaurants. On the other hand, public parks and beaches will be allowed to re-open while adhering to all precautionary measures. (Source: Reuters, Hapi Journal, al-Masry al-Youm, al-Youm al-Saabee)

The Egyptian Cabinet has decided to raise the total monthly minimum wage for government employees, based on their level in the government’s employee hierarchy, with the lowest level’s monthly wage rising to EGP2,400. The changes take effect from 1 July 2021. (Source: Egyptian State Information Service, Egypt Today, al-Mal, Mubasher, al-Youm al-Saabee)

The Central Bank of Egypt (CBE) has decided to make some modifications to their initiative regarding the funding of renovations for hotels and tourism transportation fleets, which allows the disbursement of loans with an 8% diminishing balance interest rate. The modifications are based on the CBE’s expectation of a pick-up in tourism activities in the near future, for which hotels and tourism companies will want prepare themselves by completing their renovations. Under the new terms, banks can finance up to 90% of the total cost of renovations instead of 75%. The client will repay their 10% share in proportion to the bank’s share based on an analysis conducted by the bank of the client’s future cash flows. (Source: Mubasher, Arab Finance)

The Minister of the Public Business Sector revealed that the Ministry has established a new company with a capital of EGP100mn that will market, trade in and sell spinning and weaving products. The new company will market the domestic spinning and weaving sector’s products internationally, in light of the Ministry’s plan to launch a new international trademark brand and hire foreign fashion designers. The new company will also set up and own sales outlets for these products both locally and internationally, as well as enter into partnerships with sellers to market the products. (Source: al-Mal)

The Holding Company for Natural Gases plans to deliver new natural gas installations to approximately 100,000 residential units per month during FY21/22. New residential installations under the national initiative for natural gas installation during the last three years have reached about 3.5mn. The initiative aims to promote the use of natural gas as an alternative to liquid petroleum products especially butane gas cylinders. The companies that perform the installations include EGAS (Egypt Gas). (Source: al-Mal)

The Minister of Health and Population announced that Egypt is currently negotiating and coordinating with various officials in order to locally produce the AstraZeneca vaccine. The vaccine will be produced by Vacsera, the state’s vaccine manufacturer. (Source: Souq al-Dawaa)

Telda, Egypt’s first digital bank, has raised USD5mn in a pre-seed funding round led by Sequoia, the giant U.S. venture capital firm. The service enables customers to send and receive money through a free account. Telda also issues a bank card that can be used to pay for purchases online and in stores, as well as make withdrawals and pay bills. Telda is the first company in Egypt to receive a license from the Central Bank of Egypt (CBE) to issue bank cards and sign up customers digitally, under new regulations. The company intends to use the new funding to speed up its card production and distribution, recruit more talent, and grow the business. (Source: Yahoo Finance, Enterprise, Arab News, Company Disclosure)

The Minister of Tourism and Antiquities told Reuters that Egypt is optimistic about welcoming more tourists this year, encouraged by the increasing number of visitors. These numbers have been climbing steadily since January, and have reached approximately half a million tourists per month. The recovery in the number of tourists visiting Egypt will be supported by the government’s plan to vaccinate all of the people working in the tourism sector along the Red Sea, after which the area will be declared a COVID-free destination. The recovery will also be boosted by the recent agreement between Egypt and Russia to resume all flights between them, including those that fly direct from Russia to resort destinations Hurghada and Sharm el-Sheikh. (Source: Reuters, al-Arabiya, Amwal al-Ghad)

The Minister of Health and Population announced that Egypt has received 1.77mn doses of the AstraZeneca vaccine on Thursday 13 May. This is the second shipment within the COVAX agreement, which entails Egypt eventually receiving a total of 40mn doses of the vaccine. In addition to the AstraZeneca vaccine, Egypt also received 0.5mn doses of the Sinopharm vaccine on the same day. (Source: Reuters, Ahram Online, Egypt Independent, al-Mal)

The efforts to refloat the cargo ship Ever Given, that has been blocking the Suez Canal for the last few days, have finally made partial, but crucial, progress. Later on today, the final re-aligning of the ship’s direction will be completed so that it is positioned directly in the middle of the navigable waterway. The ship will then move immediately to the Bitter Lakes waiting area for technical inspection. (Source: Reuters, Guardian, Egypt Today, Ahram Online, Mubasher, al-Youm al-Sabee, al-Masry al-Youm)    

The President has announced that there are plans to establish a new national mega-project in the northwestern coast of Egypt, at the Dabaa Axis. The new project will be named the “New Delta,” and will involve establishing a new agricultural production zone covering an area of 1mn feddans. The President was briefed on the studies that have been conducted for this project, which showed that the land is ready for agricultural reclamation. The area that will constitute the New Delta project includes the “Mostaqbal Misr” and South Dabaa agricultural projects. After the briefing, the President ordered the immediate implementation of the project. (Source: Egypt Independent, al-Ahram, Akhbar al-Youm, al-Mal, Mubasher)

The Minister of Health discussed yesterday with the Chinese Ambassador to Egypt the upcoming arrival of a delegation of Chinese experts to inspect the production lines of Vacsera, the government’s vaccine production company, in preparation for the production of the Sinovac vaccine in Egypt. This comes after the WHO recently lauded the preparedness of Vacsera’s facilities. (Source: Mubasher, al-Dostour, Sada el-Balad)        

EGAS has approved, in its AGM (Annual General Meeting), the distribution of dividends of EGP1/share. (Source: Company Disclosure)    

The Deputy Governor of the Central Bank of Egypt (CBE) has revealed that the CBE has established a EGP1bn fund to pump liquidity into the Egyptian Stock Exchange (EGX). He said that the liquidity allocated to the fund will be financed from allocations that were announced by the CBE last year worth EGP20bn to support the Egyptian financial markets. He added that the goal of the fund is to protect the stability of the EGX, as well as developing financial markets in Egypt. He also said that the EGP1bn allocated to the fund could be increased in the future as needed. (Source: al-Sharq Business News, al-Mal Newspaper)

The Cabinet has signed off on the draft budget for FY21/22, which will then be taken to the parliament for approval. The key highlights are: Overall deficit will decline to 6.6% vs. 7.8% in FY20/21 Primary surplus will increase to 1.5% vs. 0.9% in FY20/21 GDP will grow by 5.4% Revenues will increase by 16.4% to reach EGP1.3tn vs. EGP1.117tn in FY20/21, due to: Expanding the taxpayer base Implementation of electronic collection and payment systems Increase in the use of modern techniques to manage risks Investment spending will grow by 27.6% Export support and development spending will grow by 110% Wages will grow by 11.4% Spending on commodities will grow by 26% Commodities subsidies will reach EGP87.8bn vs. EGP83bn in FY20/21 The Insurance and Pensions Fund will be paid its annual installment of EGP180bn (Source: al-Mal, Hapi, Amwal al-Ghad, Arab Finance, Zawya)  

Egyptian authorities are working hard to re-float a super-sized cargo ship that has gotten stuck in the Suez Canal. The SCA (Suez Canal Authority) has announced that it has re-opened the old canal in order to divert traffic there. The cargo ship Ever Green set sail from China headed for Rotterdam. While passing through the Suez Canal, the ship ran aground and became lodged sideways, blocking navigation through the canal. The Chairman of the SCA attributed the accident to bad weather, specifically high winds, which negatively affected the ability to guide the ship. Eight tugboats are working to float the ship, and the Dutch marine services company Smit Salvage has also been hired to help with the operation. The ship is 400 meters long, 59 meters wide, and has a cargo capacity of 224,000 tons. It raises the flag of Panama, and is owned by the Taiwanese company Evergreen Marine Corporation. (Source: BBC Arabic, al-Youm al-Sabee, CNN Arabic, Ahram Online, Egypt Today, Associated Press, Reuters)

    he FRA (Financial Regulatory Authority) and the CBE (Central Bank of Egypt) have agreed to set up a fund to finance brokerage firms. The goal of the fund is to increase liquidity in the Egyptian Stock Exchange and encourage new investors to enter the market, as well as increasing the solvency and financial capability of current investors.  (Source: Hapi Journal, al-Masry al-Youm Newspaper)

Integrated Diagnostics Holdings (IDHC.L), which is currently listed on the LSE (London Stock Exchange), has received approval from the FRA (Financial Regulatory Authority) for its plan to have a dual listing of the company’s shares on both the LSE and the EGX (Egyptian Stock Exchange). The listing is expected to be completed during 1H21, and the shares will be denominated in EGP. The listing on the EGX will not involve the issuance of new shares. The listing will be technical of nature, and is the first of its kind on the EGX. IDHC is a leading consumer healthcare company that owns and operates the al-Borg and al-Mokhtabar medical diagnostics labs network in Egypt, and also has operations in Jordan, Nigeria, and Sudan. It was the first Egyptian company to list on the LSE, back in 2015. The company has a market capitalization of over USD600mn. IDHC stated that “the listing will give Egypt-based and regional investors as well as global emerging markets specialists, who are sometimes unable to access shares traded on the LSE, the opportunity to trade IDHC's shares and capitalise on the company's strong growth prospects in the fast-growing Egyptian and regional healthcare sectors.” This will allow IDHC to “build a larger pool of geographically diversified shareholders,” the company said. (Source: Company Disclosure, al-Mal Newspaper, al-Arabia News, Arab Finance Website)    

The Minister of Health and Population, Dr. Hala Zayed, announced at a press conference with the Chinese Ambassador to Egypt that an agreement is expected to be signed soon with the Chinese vaccine producer Sinovac. The agreement will pave the way for the production of Covid vaccines in Egypt. The vaccines will be produced by the state-owned company Vacsera. The Chinese Ambassador echoed the Minister’s announcement, stressing the importance of continuing to strengthen the cooperation between China and Egypt in the production of the vaccines. The Ambassador confirmed the ongoing communication between the Chinese vaccine producers and Vacsera to begin vaccine production as soon as possible. The Minister mentioned that the WHO (World Health Organization) has already sent international experts to assess the performance of Vacsera’s production facilities in preparation for the commencement of the vaccine’s production in Egypt, as well as the exporting of the produced vaccines to African countries. (Source: al-Ahram Newspaper, al-Youm al-Sabee Newspaper, al-Masry al-Youm Newspaper, al-Shorouk Newspaper, al-Mal Newspaper)  

VISA, the leading credit card issuer, has conducted a survey on the opinions of small business owners in Egypt regarding economic recovery from Covid. The study found that 72% of small businesses are optimistic about the recovery of their business from the adverse economic effects of Covid, crediting the rapid adoption of digital solutions in Egypt. The study also found that 50% of small business owners perceive digital payments as a key investment in the economic recovery, and 46% of the businesses surveyed said that their customers preferred digital payments over other payment methods. Some of the key findings of the study are that there has been a: 92% increase in the use of contactless payments 73% increase in takeaway orders 75% increase in home delivery Other findings of the study were that, of the small businesses surveyed: 24% of those that don’t already have an online presence plan to establish one 40% plan to offer digital prepayment and contactless payment methods 50% perceive the establishment of digital payments as a good investment 44% of those that only offer cash payment plan to acquire POS terminals within two years 88% expect that e-commerce will continue to grow in Egypt (Source: VISA Middle East)

The FRA (Financial Regulatory Authority) has ordered DSCW to prepare a fair value report by 20 April 2021 in light of the unjustified drop in its share price since 22 February 2021. The FRA demanded that DSCW hire one of the financial consultants that are registered with the FRA to prepare the fair value report. In light of this development, the FRA has decided to continue the suspension on the trading of DSCW’s shares until they hire an independent financial consultant. The FRA’s order is based on a regulation in the Egyptian Stock Exchange’s rules for the listing and delisting of stocks. The regulation states that the FRA can require a listed company to submit a fair value report for their stock if there is a movement in one direction of more than 50% during a period no longer than three months, or a movement in one direction of more than 75% during a period no longer than six months. If this movement is not in line with the movement of the market’s indices or the stock’s sector, the company’s results, or material news that explain this movement, then the FRA has the right to demand a fair value report from the company. (Source: FRA Filing, Mubasher Website, al-Mal Newspaper, Hapi Journal, Enterprise)      

Turkey’s currency, the Lira, has dropped 14% against the U.S. Dollar after the President, Erdogan, relieved the Central Bank’s governor of his duties. The outgoing governor’s policies were regarded by the markets as instrumental in helping the Turkish Lira rise again from historic lows. This is the third central bank governor in under two years. The news of the governor’s removal hit the Turkish stock exchange with full force, where trading was suspended for a period due to the sharp falls in share prices, and raised concerns regarding Turkey’s costs of borrowing. (Source: Reuters, Bloomberg, BBC, The Guardian, Ahram Online, MarketWatch)        

Ebtikar has raised its stake in Bee for e-payments to 80% a few days ago in a deal valued at around EGP40mn. The stake was acquired from Techno Beez. Al-Mal Newspaper reports that Ebtikar is currently studying conducting a share swap with Techno Beez for Technology to give the latter a stake in Ebtikar. This follows Vodafone Egypt’s acquisition of a 20% stake in both Bee and Masary, both of which are owned by Ebtikar, through a capital increase. The Vodafone deal will pave the way for Bee and Masary to expand in the African market. Ebtikar is planning to list on the Egyptian Stock Exchange in 2H21. Ebtikar is a joint venture between MM Group (MTIE) and B Investments (BINV). (Source: al-Mal Newspaper, Enterprise)  

The CBE’s Monetary Policy Committee (MPC) decided to hold the overnight deposit and lending rates unchanged at 8.25% and 9.25% respectively, and the main operation and discount rate at 8.75%. The CBE’s rationale was that keeping policy rates unchanged will contribute to achieving their inflation target of 7% (±2 percentage points) by 4Q22, and maintain price stability in the medium term. The CBE said in their statement that “most leading indicators are gradually recovering to their pre-pandemic levels. Meanwhile, the unemployment rate broadly stabilized at 7.2% during 4Q20 compared to 7.3% during 3Q20, after improving markedly from the 9.6 recorded during 2Q20 due to the sustained improvement in employment levels.” (Source: CBE Press Release, al-Mal Newspaper, Mubasher, Enterprise)

The Central Agency for Public Mobilization and Statistics (CAPMAS) stated in its most recent report that Egypt’s imports of medicines and pharmaceutical preparations increased by 10.5% during 2020 to reach USD2.8bn. In December 2020, the increase was 13.7% compared with the same month of the year before. Notable in the report was that Egypt’s imports of pharmaceutical products from Saudi Arabia increased by 379% to reach USD48mn.  (Source: Souq al-Dawaa Website, Amwal al-Ghad Newspaper)    

The government is looking to issue a license for cigarette manufacturing (conventional and e-cigarettes) in Egypt, according to confirmed news reports. The bidding conditions include the following key points: Eastern Company (EAST) will own 24% of the new company The facility should have minimum annual production of 15bn sticks If the new company wants to produce lower-tier, mass-consumed cigarettes (priced at EGP18-24/pack), they have to be priced at a 50% premium to EAST’s own brands in the same category Interested bidders can submit an offer in 30 days Existing and new players can bid for the license No additional licences will be offered for 10 years from the date of granting this one (Source: Mubasher, al-Borsa Newspaper, Masrawy, al-Shorouk Newspaper)

The trade deficit declined by 8.4% in 2020 to USD42.0bn, down from a deficit of USD45.9bn in 2019. This comes as total exports fell 9.5% to USD27.6bn in 2020 from USD30.5bn in 2019, while imports also declined 8.9% to USD69.6bn from USD76.4bn in 2019. (Source: al-Mal Newspaper)

تقدم مساهمو الأقلية بشركة غاز مصر، بعدة مطالب لإدراجها بالجمعية العامة العادية للشركة المقررة يوم السبت الموافق 27 مارس الجاري، وتصدرت قائمة المطالب إدراج بند للموافقة على تقييم سهم غاز مصر في ظل التغيرات التي طرأت على استثمارات الشركة، وذلك عن طريق إحدى الشركات المقيدة والمرخص لها من الهيئة العامة للرقابة المالية.   وبرر المساهمون، سبب طلب تقييم سهم غاز مصر، إلى وجود استثمارات مباشرة وغير مباشرة للشركة في أكثر من 35 شركة تعمل في الغاز الطبيعي لم تكن محل اعتبار في الغالب الأعم عند تقييم سعر السهم؛ نظراً لإخفاء تلك المساهمات، ولا سيما أن بعض هذه الاستثمارات مدرج في القوائم المالية للشركة، وفقًا للقيمة التاريخية لها وليس للقيمة العادلة، وهو الأمر الذي سيؤتي ثماره على كافة المساهمين حال تقدير تلك الاستثمارات على النحو الصحيح، منوهة إلى صدور أحكام قضائية طالبت الشركة بهذا الأمر منها الحكم الصادر في الدعوى رقم 557 لسنة 10 ق مدني مستأنف اقتصادي القاهرة.   كما طالب المساهمون، بحسب صورة من المذكرة المقدمة لشركة غاز مصر، حصلت "اليوم السابع" على نسخة منها"، بإدراج بند توزيع الأرباح المقترحة للمساهمين لتصل إلى مبلغ 78 مليون جنيه، وبذلك يصبح الكوبون للمساهمين قدره 1.625 جنيه للسهم، وذلك في ضوء أحكام القانون والنظام الأساسي للشركة، وبما يتوافق مع البنود الواردة في الميزانية المفصح عنها، وطالب المساهمون كذلك بإدراج بند للموافقة على ترشيح  المهندس محمد عبد الله معوض أحمد رئيس مجلس إدارة شركة كولدويل بانكر-مصر ونائب رئيس مجلس إدارة شركة أكيومن القابضة، ممثلًا عن مساهمي الأقلية، إعمالًا لقرار هيئة الرقابة المالية، بوجوب استخدام نظام استخدام التصويت التراكمي داخل اجتماعات الجمعية العامة للشركات، لممارسة الحوكمة الرشيدة لتنمية ورفع كفاءة الأسواق، والحد من الكثير من المنازعات ذات الصلة، من خلال تمكين مساهمى الأقلية من تركيز أصواتهم ومنحها لأحد المرشحين؛ لضمان وجود ممثل لهم داخل هذا المجلس، ومن ثمّ المشاركة الفعالة فى إدارة الشركة على النحو الذى يحقق مصالحهم.   وبحسب إفصاح سابق لشركة غاز مصر، فأنه من المقرر أن تنظر الجمعية العامة العادية للشركة تقرير مجلس الإدارة عن نشاط الشركة خلال السنة المالية المنتهية في 31 ديسمبر عام 2020، وتقرير مراقبي حسابات الجهاز المركزي عن القوائم المالية للشركة عن السنة المالية المنتهية في 31 ديسمبر عام 2020، تقرير مراقب حسابات الشركة عن القوائم المالية وتقرير الحوكمة للشركة عن السنة المالية Return to list المنتهية في 31 ديسمبر عام 2020، المصادقة على القوائم المالية وتقرير مجلس الإدارة وتقرير الحوكمة عن السنة المالية المنتهية في 31 ديسمبر عام 2020، والنظر في اقتراح مجلس الإدارة بشأن توزيع أرباح الشركة السنة المالية المنتهية في 31 ديسمبر عام 2020 والموضوعات ذات الصلة.   كما تناقش الجمعية إخلال مسئولية مجلس إدارة الشركة عن السنة المالية 2020 والمصادقة على ماقام به من أعمال خلال العام، تحديد بدلات أعضاء مجلس الإدارة عن العام المالي 2021، والموافقة على تجديد تعيين مراقب حسابات الشركة وتحديد أتعابه عن السنة المالية المنتهية في 31 ديسمبر عام 2020، والنظر في الترخيص لمجلس الإدارة بالتبرعات خلال عام 2021، والموافقة على تفويض مجس الإدارة في إبرام عقود معاوضة طبقًا لنص المادة رقم 99 من القانون رقم 159 لسنة 81 ولائحته التنفيذية، والموافقة على تحويل رصيد احتياطي إسكان العاملين ورصيد احتياطي ارتفاع أسعار أصول إلى رصيد الاحتياطى العام. اليوم السابع

The National Bank of Egypt, Banque Misr, Banque du Caire, and United Bank are reportedly interested in owning a stake in the new futures exchange. Some of the banks that are clamouring for a stake have expressed their desire to own more than 5% of the exchange. The regulations set the maximum ownership for each institution at 10%. (Source: al-Mal Newspaper)  

Orascom Construction and a subsidiary of el-Sewedy Electric are among the winning entities of phase one of a project to produce energy from waste worth USD375mn. The Ministry of Environment recently announced that eight out of a total of 93 private companies have won the first phase. The project is part of the Ministry’s plan for the private sector to join the government’s new waste management system, and give it the opportunity to implement various projects including: i) power plants, ii) waste recycling, iii) intermediate stations, and iv) the establishment of advanced landfills. The Ministry is currently working on completing feasibility studies for the first phase of the project, and evaluating all operational steps to: i) ensure the success of the waste disposal experiment in the governorates, and ii) achieve the highest sustainable economic and environmental benefit. Phase one will incorporate seven governorates, including al-Gharbia, as the establishment of factories that produce energy from waste has begun in governorates that do not have a desert background. The government’s new waste management system will cost around EGP18bn. This includes EGP10bn for the system’s infrastructure, which involves establishing 103 intermediary stations to collect and sort the waste and 57 waste recycling factories, as well as 71 environmentally-friendly landfills. (Source: al-Mal Newspaper)

Remittances into Egypt grew by 10.5% YoY to record USD29.6bn in 2020, up from USD26.8bn during 2019, according to the CBE. For the final quarter of the year, remittances reached USD7.5bn, up 8% YoY and down 7% QoQ (versus 3Q20 when remittances reached a record high of USD8bn). The data also showed that remittances during 3Q20 (October to December 2020) increased to USD7.5bn versus USD7.0bn in same period last year. Based on the latest indications, remittances in 2020 are one of the highest in the country’s recorded history. This is in complete contrast to post-Covid concerns of an expected steep slowdown in remittances due to job losses for expatriates living in the GCC. This is good news from a balance of payments perspective, as remittances provide the biggest cushion against Egypt’s trade deficit, which amounted to USD26.5bn in FY19/20. (al-Mal Newspaper, Hapi Journal, al-Arabeya News, al-Ahram Newspaper)

The accumulated debt owed to The Egyptian Natural Gas Holding Company from ceramics and porcelain producers will be addressed by the CBE, which will put aside EGP1.2bn from the financing initiative dedicated for the construction, building materials and agricultural sectors (which totals EGP100bn), at interest rate of 8%, for ceramics and porcelain producers who want to reschedule natural gas debt. This could be seen as good news for local ceramic manufacturers, as the CBE is now willing to finance the down payment of 25% of natural gas arrears payable by ceramic producers to the Ministry of Petroleum. The remaining 75% of natural gas arrears would be repaid over 10 years at a subsidized interest rate of 8%. In addition, there would be a 50% reduction in the late payment penalty fees. The announcement comes as a positive move for the ceramics industry, which supposedly accounts for 55% of the private sector’s gas arrears to the government. The move, which was approved by the cabinet earlier during the year, has been made with the aim of increasing development and boosting production. (Source: Hapi Journal, al-Borsa Newspaper)

While chairing the General Assembly of the Egyptian Natural Gas Holding Company (EGAS), the Minister of Petroleum and Mineral Resources, Tarek el-Molla, said that Egypt has become more credible in the oil and gas sector after successfully settling arbitration cases with international companies recently. He also said that this marks a new zero-debt phase for the industry. EGAS’s chairperson, Magdy Galal, announced that 9 new gas exploration agreements have been signed to drill 18 exploration wells, with total investments worth USD981mn. He said that 2 exploration wells have already been drilled, and a 3D seismic survey has been conducted in the Western Mediterranean over an area totalling 18,000 km2. Furthermore, he said that 3 projects to develop natural gas fields have been completed and 4 new wells have been linked to production. As well, he mentioned the re-opening of the Damietta LNG plant after 8 years of not operating, with 3 shipments already exported through it. On a related note, he also stated that the company will be delivering natural gas to 2.1mn residential units this year, bringing the total number of deliveries since July 2013 to about 6.5mn units. This marks a steep increase in deliveries compared to the 5.5mn deliveries performed since natural gas was first delivered to homes 33 years ago. (Source: Egypt Today, Daily News Egypt)

Saudi businessmen Hassan el-Sharbatly and Fahd el-Shobokshy announced that they plan to invest around USD2.5bn in Egypt over the next 5 years. The announcement came after they met with the Prime Minister. During the meeting, the businessmen reported on the current status of the Saudi Sharbatly Group’s investments in Egypt, where they have invested around USD2bn during the last 15 years. They also discussed their future plans to increase these investments. The Sharbatly family is an investor in a wide range of sectors in Egypt and is the driver behind City Stars Mall operator Golden Pyramids Plaza. The Shobokshy family has a stake in Golden Coast Company and South Valley Cement. (Source: al-Arabiya News, al-Mal Newspaper, Mubasher News, Enterprise)

The President has instructed the CBE to launch a new initiative aimed at providing mortgages to low- and middle-income earners. The program will provide mortgage financing at a subsidized rate of 3%. It will also offer a 30-year repayment period. There are still no further details about the eligibility criteria, such as an income ceiling or a maximum value per transaction. CBE Deputy Governor Gamal Negm claimed that the CBE is earmarking a total of EGP100bn for the new initiative. (Source: al-Mal Newspaper, Hapi Journal, al-Borsa News)

UAE’s Aldar Properties (Aldar) has submitted a preliminary non-binding offer for the potential cash acquisition of a majority stake in SODIC, implemented by a consortium controlled and majority-owned by Aldar. The offer for a minimum of 51% of SODIC is subject to due diligence, applicable regulatory approvals, and other conditions. Following a satisfactory outcome of the due diligence process, the Aldar-led consortium intends to make a mandatory tender offer in accordance with applicable laws and regulations. In its offer to SODIC’s board, Aldar stated that the indicative purchase price offered would be in the range of EGP18-19/share. The mid-point of the range values the company at EGP6.6bn (USD420mn) and represents a 14% premium to SODIC’s closing price on 11 March 2021. (Source: Company Disclosure, al-Mal Newspaper)

Banque Misr will get the 90% stake in CI Capital it sought after a majority of the company’s shareholders agreed to sell their shares for the EGP4.70/share offer lodged by the state-owned bank earlier last month, CI said in a disclosure to the EGX on Thursday. The tender offer, which wrapped up on Thursday, was 1.1x oversubscribed, with shareholders agreeing to sell 720.8mn shares. This is equivalent to 72% of CI Capital shares — more than the 65% stake targeted by the bank. But Banque Misr won’t buy them all. Banque Misr — which already owns a 24.7% stake in the company — will only purchase 653mn shares through the MTO, a source at CI Capital said, speaking on condition of anonymity. Following the acquisition, Banque Misr will own 90% of the company and the remaining 100mn shares will remain in free-float on the EGX, the source added. The transfer of ownership will be wrapped up within 5 working days, the source said. (Source: Company Disclosure, Enterprise, Hapi Journal)

Fitch has stated that Egypt’s rating remains at B+, with a stable outlook going forward. The credit rating agency attributed the stable outlook to Egypt’s recent track record of fiscal and economic reforms that have allowed it to remain stable and resilient through the global Covid pandemic. Meanwhile, security and potential risks continue to weigh on the country’s rating. (Source: Fitch Ratings)

Egypt’s economy grew 2% in 2Q20/21, accelerating from 0.7% the previous quarter, as the tourism sector contracted at a slower pace, Planning Minister Hala el-Saeed said during the cabinet's weekly meeting yesterday. Manufacturing and Suez Canal revenues — which had slumped due to the pandemic — also contracted more slowly than at the height of the pandemic in 1Q2/21, el-Saeed said. Growth during the first half of the fiscal year came in at 1.35%, a significant YoY drop from the pre-Covid 5.6% growth rate recorded in 1H19/20, the minister said. The economy is expected to grow 2.8% this quarter, which wraps on 31 March, and 5.3% in the final quarter of the fiscal year ending 30 June, according to el-Saeed. Logistics, agriculture, education, and healthcare continued to lead the rebound, achieving positive growth between July 2020 and January 2021, el-Saeed noted. Growth rates in these sectors accelerated YoY after the government eased Covid restrictions in July, she said late last year. As for inflation, the government expects the annual urban headline rate to average between 4.8% and 6.8% this fiscal year, el-Saeed said, while inflation figures released by state statistics agency Capmas yesterday showed a slight uptick to 4.5% in February from 4.3% in January. (Source: Enterprise) El-Saeed also said that government investments implemented during 1H20/21 rose by 28% on an annual basis. She said that government investments in Egypt amounted to EGP102bn during the period from July to December of 2020. (Source: Egypt Today) Another positive indicator that Minister el-Saeed mentioned was that the unemployment rate declined to 7.2% in 2Q20/21, compared with 7.3% in 1Q20/21. El-Saeed said that the rates eased as the economy gradually reopened after strict coronavirus lockdowns as well as some labor-intensive activities. (Source: Amwal Al Ghad)

The Central Bank of Egypt (CBE) has decided to allow local banks to execute and settle interbank payments in foreign currency instantly as of 22 March. The immediate settlement system will reduce the costs of the foreign currency payment orders between banks and speed up the process. The new system will also increase the CBE’s oversight over the transactions. (Source: CBE Decree, Al-Mal Newspaper)

The Trade and Industry Ministry has extended its ban on white sugar imports introduced in June for another three months. (Source: Government Decree, Al-Borsa News)

The Financial Regulatory Authority (FRA) has approved to publish the disclosure on the decision of the CIB’s board of directors to raise the bank’s issued and paid-up capital through issuance of 12.271mn shares at a nominal value of EGP10/share or a total value of EGP122.71mn. In another context, CIB said in statement that it has appointed Tarek Rouchdy as the independent director of the board. (Source: Mubasher)

CI Capital has rejected an offer by Banque Misr to acquire a 90% stake in the company. The state-owned bank last month made the offer at EGP4.70/share, valuing the company at EGP4.7bn, but in a disclosure submitted to the EGX yesterday, CI’s board of directors said that the offer was too far below the valuation reached by its financial advisor Baker-Tilly Wahid Abdel Ghaffar & Co. CI Capital’s shares closed yesterday at EGP4.58/share and have been trading in that band since Banque Misr said it wanted to hike its stake in the company to 90%. Sell-side analysts have set target prices for the share in the EGP5/share range, including EGP5.00 (Pharos), EGP5.20 (Prime) and EGP5.47 (HC). Banque Misr currently owns a 24.7% stake in the financial services firm and now wants to purchase an additional 653mn shares, giving it 90% ownership. Banque Misr became CI Capital’s largest shareholder last August when it acquired an additional 11% stake. CI is asking that the bank raise its offer price by 19% to EGP5.60/share if it wants to acquire a 90% stake. Baker Tilly’s fair value report priced the company’s shares at EGP5.60/share in case of acquiring more than 51% of shares, and at EGP5.73/share if buying up to 51%, valuing the firm anywhere between EGP5.6-5.73 bn. Al-Mal newspaper has reported that Banque Misr has no intentions to change the price for the purchase offer. (Source: Company Disclosure, Al-Mal Newspaper, Enterprise)

The Egyptian government has removed income tax exemptions on returns on investments in treasury bills and bonds as well as capital gains, as published in the Official Gazette. The amendment received parliament approval in August 2020. (Source: Al-Mal Newspaper)

The first day of the COVID-19 vaccine rollout to the wider public saw 1,141 individuals get their first dose, the Health Ministry said in a statement on Thursday. A cabinet statement reported earlier that nearly 153,000 people have applied for vaccinations last week when the government opened online registration. Egypt received 350k doses of the vaccine developed by China National Pharmaceutical Group (Sinopharm) and 50k doses of the vaccine developed by AstraZeneca in February, both of which are used in the vaccination program. Those getting the Sinopharm jab have a second dose after 21 days, while those receiving the AstraZeneca vaccine will wait for 12 weeks for the second dose, Health Minister Hala Zayed said. (Source: Reuters, Al-Ahram Newspaper)

  The EDA has approved the sale of COVID-19 Avigan generic drugs in pharmacies. Egyptian drug producers will now be allowed to distribute the antiviral COVID-19 treatment in pharmacies. The drugs are a generic form of a Japanese drug, and contain the active ingredient Favipiravir. The drug has shown positive clinical results in treating mild to moderate COVID-19 cases. EVA Pharma and EIPICO have announced the availability of the drug in pharmacies following the EDA’s decision. Eva Pharma’s drug is called Avipiravir, while EIPICO’s is called Epifluver. It is believed that other drug producers (such as Rameda) will announce the availability of the generic drug once they obtain the needed approvals. It is understood that many Egyptian producers have the capabilities to produce the generic in tablets form. The price of a 40-tablet dose has been previously announced to exceed the EGP1k mark. This is a positive decision for pharma manufacturers, with any windfall hard to quantify at this stage. (Source: Al-Borsa Newspaper, Souq Al-Dawa)

  Non-oil private sector conditions worsened for the third consecutive month in February, but at a milder rate than the past two months as new exports supported demand, according to IHS Markit’s monthly survey of businesses. The purchasing managers’ index (PMI) gauge rose slightly to 49.3 in February from 48.7 the month before. The gauge remained below the 50.0 mark which separates expansion from contraction. New foreign business grew at its sharpest in nearly 10 years, helped by “a strong upturn in export demand.” The “upside” made February the slowest month of decline since a dip first seen in December due to the resurgence in covid-19 cases. Businesses said they got into more new contracts and witnessed a “slight” improvement in tourism activity last month. The pace of overall output contraction was only “modest,” and reflects what could shape up into a recovery as we head further into the year. The same applies to new sales, which dropped at a “less marked” rate compared to January. “Demand trends have moved closer to stabilisation, particularly as export sales picked up at a record pace … Further growth in exports should help improve overall sales … as the impact of the covid-19 pandemic subsides,” said IHS Markit economist David Owen. On the downside, firms are less optimistic about the next 12 months, with some citing the risk of permanently going out of business “due to the steep economic downturn caused by the pandemic.” Only 29% forecast growth this year, down from 40% last time around. Some responses “suggested that some businesses may fail before the economy makes a full recovery," Owen said. Input purchases continued to drop on the back of the fall in output and new orders, and businesses drew from existing stock, but only “marginally.” Renewed pressure on inventories first appeared in January, when firms held back purchases at the sharpest pace in four years. Most are citing growing input cost inflation, but at a rate that was the weakest since September 2020. This was led by metal commodities, primarily iron and steel. Some of it passed down to clients, yet “only fractionally overall.” Meanwhile, the employment gauge fell at its slowest rate in 16 months, IHS Markit said. This came as some firms continued to step up hiring due to an increased workload. (Source: IHS Markit, Enterprise)        

Government Financing of Micro-Enterprises Egyptian Micro, Small and Medium Enterprises Development Agency (MSMEDA) pumped funds into micro-projects during the period from July 2014 to December 2020, at a value of EGP13.5bn, according to CEO of MSMEDA and Trade Ministry Nevine Gamea. Gamea added Tuesday that 1.24m micro-projects were funded during that period, providing more than 1.613m job opportunities. She stated that the agency succeeded in attracting a large number of donors to provide the necessary funding for the growth of this sector, in addition to expanding the number of banks and NGOs that the agency cooperates with, which helped it reach a greater number of citizens in the areas most in need to improve their standard of living and creating stable job opportunities through microenterprises. (Source: Egypt Today)  

  Factoring Companies Now Able to Finance Margin Lending Egyptian factoring companies are now able to finance margin lending by brokerage companies under new regulations released by the Financial Regulatory Authority (FRA) yesterday. The move is meant to give brokerages access to new sources of funding and stimulate trading on the EGX. Eligible brokers are required to get approval from the FRA before engaging in margin lending. Allowing non-bank lenders to finance margin lending will likely be a welcome move for brokerages and industry associations, which have for years been seeking greater access to financing for the practice. Banks are typically reluctant to finance margin trading out of fear of turbulence in the stock market. (Source: Financial Regulatory Authority, Enterprise)

Macro Group Pharma Intends to IPO 1-2Q21 Macro Group Pharma is set to become Egypt’s second IPO this year, after announcing overnight its intention to initiate an initial public offering (IPO) of its shares on the EGX in late 1Q21 or early 2Q21. The offering will see 49% of Macro up for grabs as shareholder Leo 1 sells 282.9mn ordinary shares in a secondary sale, meaning existing shareholders will offer part or all of their stakes to the public, and no new shares will be offered. The sale will include private offerings to both institutional investors in Egypt and abroad, as well as retail investors here at home. Expect to see indirect shareholders Enverson International Company, MEA Healthcare Partners, and Macro co-founder Ahmed El Nayeb among those selling down their positions in Macro through Leo 1, in which they each hold indirect stakes. Leo 1 is a special-purpose investment vehicle that holds 99.9% of Macro. Macro Group Pharmaceuticals (Macro Capital), the largest and one of the fastest growing cosmeceutical companies in Egypt. Established in 2005, Macro Group leads Egypt’s fast-growing cosmeceuticals space, with a market share of 23.1% recorded in 2020. The company’s EBITDA grew by a 2018-20 CAGR of 92% to EGP187mn in what was a challenging pandemic year, testament to the company’s defensive demand-profile, robust business model, and resilient growth strategy. Combined, these factors are expected to drive future growth in this new stage of its corporate evolution. Macro Group boasts a diversified portfolio of 125 marketed SKUs, which consists of 124 cosmeceutical SKUs across seven therapeutic areas and one nutraceutical SKU, which was launched in December 2020. While all of the company’s products are available over-the-counter (OTC), Macro also utilizes a prescription-based sales strategy and generates demand through an incentivized medical salesforce of over 550 employees that target physicians and pharmacies nationwide. 85% of sales are estimated to be initially generated via prescription at the physician level, underlining the defensive demand-profile of Macro Group’s business. Meanwhile, an advantageous regulatory framework enables the company to leverage its extensive in-house innovation capabilities, having developed an extensive pipeline of 79 products across a variety of high-growth, high-margin cosmeceutical and nutraceutical therapeutic areas, which are expected to be launched between 1Q21 and 2Q23. Macro Group is in the process of obtaining the required approvals and registrations related to the combined offering, including from the Egyptian Financial Regulatory Authority (FRA) and the EGX. Completion of the combined offering is expected to take place late 1Q21/early 2Q21, subject to market conditions and the timely receipt of the relevant regulatory approvals. (Source: Company disclosure, CI Capital, Enterprise)  

Real Estate Registry Act Amendments Suspended for 2 Years Amendments to the Real Estate Registry Act are now suspended for at least two years under directives from the President, according to an Ittihadiya statement. The two-year freeze is meant to allow time for public consultations on the legislation and the introduction of an alternative to the controversial 2.5% tax on the quick sale or disposition value of real estate assets. In the meantime, properties that get registered at the Real Estate Registry will be subject to a reduced fixed registration fee, which will be determined based on the size and type of property. Cabinet will now prepare a draft bill for this interim period that would set the fees and other procedures, Justice Minister Omar Marwan said. Property owners with “older” contracts (the exact definition of which will also be specified in the forthcoming bill) will be able to register their properties if they want to during this two-year period and pay the fixed fee, which Marwan said will be affordable to all. This bill will be expedited and must be sent to the House of Representatives before Saturday, 6 March, when the original amendments to the Act were due to come into effect, Marwan said. The Real Estate Registry Act will also be amended again over the course of the next two years, Marwan said. It has not yet been decided whether the 2.5% tax will be lowered in the reworked bill, and this remains an issue for the Finance Ministry to decide. (Source: Ittihadiyya Statement, Enterprise)

Auto Vehicle Sales Rise YoY in January 2021 Auto sales had a better start to the year than they did in 2020. Passenger car sales soared 71% YoY in January, with nearly 14.9k vehicles sold during the first month of the year, according to figures from the Automotive Information Council (AMIC). On a monthly basis, however, sales decelerated from 20k passenger vehicles sold in December 2020. Bus and truck sales had mixed results. Truck sales rose 48% YoY to 3.7k, from 2.5k in the same month in 2020. This is a steep fall from 4.5k trucks sold in December 2020. Bus sales were down both YoY (-23%) and MoM (-24%) with 1.9k units sold. (Source: Enterprise)  

Real Estate Registry Tax Amendments Might Be Postponed to the End of the Year Controversial amendments to the Real Estate Registry Act look like they will be introduced at the end of December instead of this coming Saturday, after the Madbouly Cabinet submitted proposed legislative amendments allowing the prime minister to postpone the changes coming into effect, according to a statement. The House of Representatives will put the proposed postponement to a discussion later today, after receiving preliminary approval from the Constitutional Affairs Committee yesterday, committee undersecretary Ali Badr told Ala Mas’ouleety’s Ahmed Moussa. New changes will likely be introduced to the bill to no longer make getting access to basic utilities contingent on paying the 2.5% property disposal tax. Until the bill receives a final vote, the property disposal tax will not be applicable to any properties that are registered, Real Estate Registry head Gamal Yacout explained to Moussa. And if your property is already connected to basic utilities, there’s nothing forcing you to register your property, since the bill does not retroactively revoke utility access, Yacout explained to Kelma Akhira’s Lamees El Hadidi. If you want to change the name that shows up on your electricity bills, however, you will need to go through the registry process, Cabinet spokesperson Nader Saad told Lamees. The levy can be paid in installments, Saad said. Only 5% of apartments and other properties across the entire country are actually registered at the Real Estate Registry, Justice Minister Omar Marwan told El Hekaya’s Amr Adib. (Source: Enterprise)  

 ANFI (Alexandria National Company for Financial Investments) Acquisition Bidding War   The UAE branch of Hong Kong’s Zeta Investment has submitted an offer to acquire 90% of brokerage house Alexandria National Company for Financial Investments’ (ANFI) shares at EGP5.48/share, the Financial Regulatory Authority said in a statement last week. This offer values the company at around EGP25.8mn. The regulator is currently studying the offer. Zeta had previously offered to purchase the shares at EGP5.51/share according to a disclosure by ADIB, valuing ANFI at more than EGP25.9mn, shareholders El Kahera El Watania Investment (KWIN) and the Abu Dhabi Islamic Bank said earlier this month. And it’s a substantially weaker bid than what others have offered. A group of investors including Egyptian businessman Ahmed El Saba and Saudi Arabia’s Mostafa El Humeidan, have offered to acquire 75-90% of the company for EGP7.48/share, and were given the green. light by ANFI to start due diligence last week. The company also received offers of EGP5.30/share from Kayan Sustainable Development, and EGP5.50/share from Zaldi Capital. ADIB is looking to exit both ANFI and Assiut Islamic Trading, which it considers non-core businesses. The Gulf lender owns almost 85% of ANFI, holding 9% directly and the remainder through its KWIN and ADI Lease subsidiaries. (Source: Enterprise)  

  SFE to Invest 10% in ADQ’s (Abu Dhabi Sovereign Wealth Fund) Acquisition of Amoun Pharma The Sovereign Wealth Fund of Egypt (SFE) is reportedly going to join Abu Dhabi’s sovereign wealth fund ADQ in its bid to acquire 100% of Bausch Health’s unit in Egypt, Amoun Pharma, sources close to the matter reportedly told Hapi Journal. The SFE is reportedly looking to have a 10% stake in Amoun when the transaction is completed. While the fair value assessment has yet to be completed, the sources said that the entire transaction is valued at USD700mn. The two funds are expected to complete due diligence in two weeks’ time, the sources note. The transaction is likely to be done through a USD20bn investment platform Egypt and Abu Dhabi set up back in 2019 through their sovereign wealth funds. SFE and ADQ were expected to announce a number of new joint investments in 1Q21, Planning Minister Hala El Said had announced last month. (Source: Enterprise)

  Citizens & Residents Above 40 or With Chronic Illness Can Now Register for the Vaccine Citizens, foreign residents, diplomats, and refugees currently in Egypt who are above the age of 40 and/or suffering from a chronic illness can now register for their covid-19 vaccine shot on the website the Health Ministry set up for vaccine registrations. The website, which became operational at midnight, asks those signing up for the vaccine to provide personal information, depending on which group they fall into. (Source: Enterprise)

Prime Speed to Import Covid Vaccine Sputnik V   Prime Speed Medical is set to become the first private sector player in Egypt to import Covid-19 vaccines with an initial agreement for 10 million doses of Russia’s Sputnik V. Prime reached an initial agreement following negotiations between the Egyptian Medicines Authority and the Russian Sovereign Wealth Fund, according to a press release seen by Al Mal. The imported jabs will be distributed by government officials. The agreement comes on the heels of Sputnik V getting authorization for emergency use in Egypt yesterday. (Source: Enterprise)    

Delta Sugar Company Chairman Announces That Egypt Will Be Self-Sufficient In Sugar Within 3 Years Egypt has achieved a quantum leap in sugar production, Chairman of the Delta Sugar Company Ahmed Abu Al-Yazid said. Abu Al-Yazid added that Egypt's current sugar production amounts to 2.7 million tons. “Egypt's sugar production suffices 90% of the country's need, and it is expected to achieve self-sufficiency within 3 years in light of the development of sugar factories,” he added. (Source: Egypt Today)

Minister of Finance Denies Imposition of New Taxes on Real Estate Sales The Minister of Finance has denied reports about imposing a new tax on the sale of real estate, stating that the tax imposed on the sale of real estate was reduced from 5% to 2.5% in 1996 to lift the burden on citizens. All properties located in villages or its affiliated areas, real estate assets that were inherited before 25 July 2018, assets presented as in-kind shares in joint-stock companies, and properties given as authenticated gifts will not be subject to the levy. (Source: Enterprise)  

وافقت الجمعية العمومية لشركة غاز مصر والتي عقدت أمس الأحد وبطلبات شركة اكيومن لتكوين وإدارة محافظ الأوراق المالية وإدارة صناديق الاستثمار بالالتزام بمتطلبات معايير المحاسبة المصرية بشأن إعادة تقييم الاستثمارات المتاحة للبيع على اساس القيمة العادلة وأنه جارى دراسة الأمر بالتنسيق مع الشركات المستثمر فيها وفى ضوء متطلبات معايير المحاسبة المصرية وسوف يتم الافصاح عنها بمجرد الانتهاء من الدراسة وذلك فى خلال فترة ٣ شهور على الأكثر. الخبر من المصدر 

أعلنت شركة غاز مصر (EGAS) عن اجتماع  الجمعية العامة العادية يوم السبت الموافق 30/03/2019.   وأضافت الشركة في بيان للبورصة المصرية اليوم الأحد 31 مارس 2019، أن الجمعية اعتمدت تقرير مجلس إدارة الشركة عن السنة المالية المنتهية 31/12/2018، واعتماد مقترح توزيع الأرباح وذلك بواقع 1.25 جنيه للسهم على دفعة واحدة أو أكثر حسب موقف السيولة بالشركة.

أكيومن تتوسع إقليميا عبر فرع جديد بـ "أبو ظبي" مايو القادم  

لقاء الأستاذة رانا عدوى مع المذيعة دينا سالم على قناة سي بي سي إكسترا ومناقشة حول السبب في انخفاض نسبة رأس المال السوقي في مصر مقارنة بالناتج المحلى  

أكيومن لإدارة الأصول تفوز بلقب أفضل مدير إستثمار في منطقة الشرق الأوسط وشمال أفريقيا و لقب أفضل مدير إستثمار في مصر في إحتفالية توزيع الجوائز من  MENA FUND MANAGER لتقييم أداء مديري صناديق الإستثمار    تعلن شركة أكيومن لإدارة الأصول بإعتزاز عن فوزها بخمس جوائز من أصل إحدي وعشرون جائزة في حفل  MENA FUND MANAGER لتقييم أداء الصناديق و مديري الأصول في الإحتفاليه التي أقيمت  بالأمس في فندق ريتز كارلتون في دبي ، برعاية شركة مؤشر S&P Dow Jones Indicies التابع لS&P Global   الجدير بالذكر ان تلك الجوائز هي الوحيدة من نوعها في منطقه الشرق الأوسط و شمال أفريقيا و تعتمد علي مكافاة أفضل صناديق الإستثمار و مديرين الأصول في المنطقة من حيث التفوق الفعلي في الأداء علي المنافسين   وشملت القائمة التنافسية لكل فئة من فئات الجوائز الـ الإحدي وعشرين، من خمس إلى ستة صناديق استثمار أو مديرين أصول في منطقة الشرق الأوسط وشمال أفريقيا   وقد توجت أكيومن لإدارة الأصول والسيدة رنا عدوي بأربع جوائز وشهادة من الفئات التالية: - أفضل مدير للأصول في الشرق الأوسط وشمال أفريقيا - أفضل مدير للأصول في جمهورية مصرالعربية - أفضل صندوق أسهم في الشرق الأوسط وشمال أفريقيا في 2019 –من حيث أداء ثلاث سنوات للفئه اقل من  75 مليون دولار - صندوق مصر الخير - أفضل صندوق متوازن - صندوق مصر الخير - جائزة الإنجاز المتميز لفرد  – السيدة رنا عدوي رئيس مجلس إدارة شركة أكيومن لإدارة الأصول كانت لجنة التحكيم مكونة من تسع مديرين صناديق عالميين وإقليميين ذوي خبرة واسعة النطاق و كبار المديرين في الشركات العاملة في الاستشارات لمديرين صناديق الاستثمار في المنطقة بالإضافة الي الرئيس لشركة  بالشرق الأوسط S&P Dow Jones Indices  التابع لS&P Global   

BEST ASSET MANAGER IN The MENA REGION AND IN EGYPT FROM MENA FUND MANAGER PERFORMANCE AWARDS 2019 - DUBAI Acumen Asset Management proudly announces the winning of 5  award categories out of 21 total award categories in the MENA Fund Managers Performance Awards ceremony held yesterday in the Ritz Carlton Hotel in Dubai, UAE that was sponsored by S&P Dow Jones Indices; a division of S&P Global. The 2019 MENA FUND MANAGERS AWARD “recognize and reward those fund and asset managers that have outperformed their peers over the last year.” The short list of each of the 21 category of awards included 5 to 6 leading funds and asset managers from the MENA region. Acumen Asset Management and its Chairperson took home 4 trophies and a certificate in the following categories: MENA ASSET MANAGER EGYPT ASSET MANAGER MENA EQUITY FUND OF THE YEAR - 3 YEAR PERFORMANCE < USD 75 million BALANCED FUND  OUTSTANDING ACHIEVEMENT BY AN INDIVIDUAL - Mrs RANA ADAWI ACUMEN ASSET MANAGEMENT  The judging panel was comprised of 9 extensively experienced Global and Regional Asset Managers, and top managers of the region’s leading funds’ advisory and consultancy firms and the head of the S&P Dow Jones Indices.    

Mrs. Rana Adawi wins the award of "CEO of the Year" 2018 - Acumen Asset Management by Global Investor Group MENA Awards     

  فى ظل اعتماد الكثير منها على موظفين غير مختصين  خبراء: إدارة الهواة لاستثمارات الجهات الحكومية تسبب ضغوطا سلبية على حركة البورصة  

                                                You can find it at the following link  يمكنك الوصول للخبر عبر هذا الرابط https://www.arabfinance.com/ar/news/details/videos/447190

Forbes Middle East congratulates Mrs. Rana Adawi on her achievement for making it to the list of “The Middle East’s Most Influential Women 2018”.  About Forbes Middle East: Forbes Middle East is a leading source for reliable business news and financial information.

Acumen Asset Management has won the award of IBM "Best Asset Management Company Egypt 2018" by International Business Magazine UAE.   About IBM International Business Magazine is a UAE based pioneer Journal striving hard in line to carve a niche in already fierce competitive world of Business and Financial Award Journals.

Mrs .Rana Adawi, Acumen Asset Management’s Chairperson, has been awarded the “ Best Asset Management  CEO – Egypt 2018 “ by well-renowned  International Finance Magazine in the UK  حصلت الأستاذة رانا عدوي على جائزة افضل مدير تنفيذي لشركة ادارة اصول في مصر عن عام 2018 من مجلة انترناشونال فينانس في المملكة المتحدة http://awards.internationalfinance.com/award-winners/winners-of-leadership-awards-2018  

صندوق مصر الخير فى صدارة الصناديق المتوازنة  خلال  النصف الاول من 2018 - Misr Alkhair Fund at the forefront of balanced funds during the first half of 2018

  جريدة الوفد الأحد 25 فبراير 2018 https://alwafd.news/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF/1799694-%C2%AB%D8%A3%D9%83%D9%8A%D9%88%D9%85%D9%86%C2%BB-%D8%AA%D8%AA%D8%B1%D8%A8%D8%B9-%D8%B9%D9%84%D9%89-%C2%AB%D8%B9%D8%B1%D8%B4%C2%BB-%D8%B5%D9%86%D8%A7%D8%AF%D9%8A%D9%82-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1-%D9%85%D9%86%D9%81%D8%B1%D8%AF%D8%A9-%D8%A8%D9%803-%D8%AC%D9%88%D8%A7%D8%A6%D8%B2  

 مجلة البوصلة الإقتصادية – عدد فبراير 2018 2018 رانا عدوى رئيس مجلس إدارة شركة "أكيومن" لإدارة الأصول، تتحدث عن حجم الأصول التي تديرها الشركة، بنهاية 2017 و خطتها الطموحة والتوسعية خلال عام   Mrs. Rana Adawi, Chairperson of Acumen Asset Management talks about the size of the company's assets by the end of 2017 and its ambition and expanding plan 2018            http://alboslanews.com/%D8%A3%D8%B3%D9%88%D8%A7%D9%82-%D8%A7%D9%84%D9%85%D8%A7%D9%84/%D8%B1%D8%A6%D9%8A%D8%B3%D8%A3%D9%83%D9%8A%D9%88%D9%85%D9%86-16-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AC%D9%86%D9%8A%D9%87-%D8%A5%D8%AC%D9%85%D8%A7%D9%84%D9%89-%D8%A7%D9%84%D8%A3%D8%B5%D9%88%D9%84-%D9%88%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1%D8%A7%D8%AA-%D8%A7%D9%84%D8%AA%D9%89-%D8%AA%D8%AF%D9%8A%D8%B1%D9%87%D8%A7-%D8%A7%D9%84%D8%B4%D8%B1%D9%83%D8%A9-%D8%A8%D9%86%D9%87%D8%A7%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%A7%D9%84%D9%85%D8%A7%D8%B6%D9%89-2017-176347

الرئيس التنفيذي والعضو المنتدب لبنك عودة محمد عباس فايد, يشيد بالأداء المتميز لشركة أكيومن, في إدارة صندوق إزدهار بعد فوز الصندوق بجاتزتي مؤسسة     MENA Fund Manager المؤسسة الإعلامية الدولية المرموقة الوحيدة المتخصصة في أخبار وتقييم  صناديق الاستثمار في الشرق الأوسط وشمال إفريقيا

قالت رنا عدوي؛ إن الأموال الحكومية المضخة عبرالمحافظ المالية التي طرحت خلال العامين الماضيين للإدارة بواسطة شركات إدارة الأصول نجحت في سد العجز الناتج عن إنخفاض أحجام الصناديق المختلفة. وأضافت إن شركات إدارة الأصول صبت مؤخرا كامل تركيزها علي إدارة المحافظ المالية نتيجة إرتفاع عوائدها مقارنة بصناديق الإستثمار، بجانب كبر أحجام تلك المحافظ، لاسيما الحكومية منها. وأوضحت إن شركتها نجحت خلال 2017 في إضافة محافظ مالية بقيمة 600 ألف جنيه، ليصل حجم الأصول المدارة بواسطة أكيومن ال 1.6 مليار جنيه، فيما تسعي الشركة الي إضافة محافظ مالية بقيمة مليار جنيه في العام الجاري

وعَبرت رنا عدوى رئيس مجلس إدارة شركة أكيومن لتكوين وإدارة محافظ الأوراق المالية وصناديق الاستثمار، عن فخرها بالإنجاز الذى حققته الشركات المصرية فى المحافل الدولية موضحة أن هذه الجوائز تعد «تتويجًا للأداء المتميز لشركات إدارة الأصول المصرية خلال 2017». وأوضحت أن نجاح أكيومن فى اقتناص أكبر عدد من الجوائز فى عام واحد منذ تدشين تلك الإحتفالية، يدعم تطلعاتها إلى مواصلة أدائها المتميز لتحقيق مزيدا من النجاح خلال 2018، مشيدة بفريق العمل بالشركة والذى يضم العديد من الخبرات والكفاءات الشبابية المميزة القادرة على تحقيق الخطط وتجاوز المستهدفات.  

احتلت صناديق الاستثمار التي تديرها شركة «أكيومن» القابضة، صدارة ترتيب الصناديق الاستثمارية وفقاً لتقرير الجمعية المصرية لإدارة الاستثمار «Eima» الذي يقيس مؤشر أداء صناديق الاستثمار المصرية، وذلك لعام2017. وسجلت الصناديق التي تديرها الشركة متمثلة في صندوق مصر الخير بالمركز الصدارة في عام 2017، والأول في عامين، وثلاثة أعوام، و5 أعوام، وكذلك صندوق بنك عودة بالمركز الاول للعام الماضى، وكذلك في عامين وفي ثلاثة أعوام، وذلك بعائد استثمار39% أكدت رنا العدوي العضو المنتدب لـ«أكيومن» أن الاحترافية التي تتمتع بها الإدارة ساهمت بصورة كبيرة في تحقيق الصناديق للصدارة، علي مستوي شريحة الصناديق العاملة بالسوق. وقالت في تصريحات خاصة لـ«الوفد» إن الشركة تنتهج سياسة محترفة تساعد علي تحقيق أعلى العوائد بالنسبة للمستثمرين، بالإضافة إلى الرؤية المتميزة لمديري الاستثمار، والحرص دائما علي العمل بعنصر الاستباقية الذي يحقق صدارة الشركة، وهو ما يتم الحرص علي استمراريته وفقاً للاستراتيجية المعمول بها. https://m.alwafd.org/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF/1765648-%D8%B5%D9%86%D8%A7%D8%AF%D9%8A%D9%82-%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1-%C2%AB%D8%A3%D9%83%D9%8A%D9%88%D9%85%D9%86%C2%BB-%D8%AA%D8%AA%D8%B5%D8%AF%D8%B1-%D8%AA%D8%B1%D8%AA%D9%8A%D8%A8-%D8%A7%D9%84%D8%B5%D9%86%D8%A7%D8%AF%D9%8A%D9%82-%D9%84%D8%B9%D8%A7%D9%852017        

كشفت رانا عدوى رئيس مجلس الإدارة والعضو المنتدب لشركة " أكيومن " لتكوين وإدارة محافظ الأوراق المالية وإدارة صناديق الإستثمار عن حجم الاصول التي تديرها الشركة مشيراً الي ان اجمالي الأصول والإستثمارات لشركة " أكيومن " بلغ بنهاية 2017  نحو 1.6 مليار جنيه منها أكثر من 80% أموال تدار لشراء أسهم لشركات مقيدة في البورصة. وكشفت عن خطتها الطموحة والتوسعيه خلال عام 2018 والتى تستهدف التوسع فى إدارة الأصول للافراد ويأتى ذلك من خلال تأسيس إدارة أصول جديدة للافراد مستقله ومتخصصة  ولكن  تابعة لإدارة الشركة.   وأكدت رانا عدوى أنها تستهدف من الإدارة الجديدة تحقيق نحو 30 مليون جنيه أصول أفراد خلال العام الأول من تأسيسها وتأتى الخطوة للتوسع نحو إدارة أصول الأفراد لأن شركة " أكيومن " لتكوين وإدارة محافظ الأوراق المالية وإدارة صناديق الإستثمار معروفة ولها إسم كبير لدى البنوك والشركات الكبرى لذلك كان التوجه نحو التوسع فى إدارة أصول الأفراد.     Link: http://www.alboslanews.com/%D8%A3%D8%B3%D9%88%D8%A7%D9%82-%D8%A7%D9%84%D9%85%D8%A7%D9%84/%D8%B1%D8%A7%D9%86%D8%A7-%D8%B9%D8%AF%D9%88%D9%89-%D8%A3%D9%83%D9%8A%D9%88%D9%85%D9%86-%D8%AA%D8%AF%D9%8A%D8%B1-%D8%A7%D8%B5%D9%88%D9%84-%D8%A8%D9%82%D9%8A%D9%85%D8%A9-16-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AC%D9%86%D9%8A%D9%87-%D9%88%D8%AA%D8%A4%D8%B3%D8%B3-%D9%82%D8%B7%D8%A7%D8%B9-%D8%AC%D8%AF%D9%8A%D8%AF-%D9%84%D8%A5%D8%AF%D8%A7%D8%B1%D8%A9-%D8%A3%D8%B5%D9%88%D9%84-%D8%A7%D9%84%D8%A3%D9%81%D8%B1%D8%A7%D8%AF-174303

  ❏ «مصرالخير» أول «المتوازنة» و«أروب مصر» فى مقدمة «النقدية» و«بشائر» قائد «الإسلامية» ❏ رنا العدوى: صدارة «مصر الخير» لفئته خلال 5 سنوات نجاح لـ«أكيومن»                   http://almalnews.com/Story/360646/11/-%D8%B5%D9%86%D8%A7%D8%AF%D9%8A%D9%82-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1-%D8%AA%D8%AC%D9%86%D9%89-%D8%AB%D9%85%D8%A7%D8%B1-%D8%A7%D9%84%D8%AA%D8%B9%D9%88%D9%8A%D9%85-%D9%81%D9%89-2017--  

من جانبها قالت رنا عدوي, العضو المنتدب بشركة أكيومن لإدارة الأصول, إن نمو وإنتشار صناعة صناديق الإستثمار تصطدم برغبة البنوك في عدم تأسيس صناديق جديدة أو المشاركة في صناديق لتأدية مهمة توزيع الوثائق وتحصيل قيمتها. وأضافت إن هناك شركات تأمين ترغب في تأسيس صناديق جديدة, إلا إنها تصطدم بطول الفترة الزمنية الخاصة بالحصول علي الموافقات اللازمة لبدء عمل صندوق إستثماري. وأوضحت إن هناك ضرورة لدخول مؤسسات وجهات أخري تقوم علي طرح الصناديق الإستثمارية بعيدا عن البنوك, مطالبة البنك المركزي والهيئة العامة للرقابة المالية  ببحث وضع صناعة الصناديق والعمل علي تطويرها

قالت رنا العدوى. العضو المنتدب بشركة اكيومن لادارة محافظ وصناديق الاستثمار  ان الشركة تستهدف رفع الأصول تحت الادارة بمليار جنية  خلال عام 2018

قالت رنا العدوى، العضو المنتدب لشركة «أكيومن» القابضة، أن فعاليات بعثة الجمعية المصرية البريطانية للأعمال فى لندن شهدت استعراض الجهود التى بذلتها الدولة المصرية فى مجال تمكين المرأة والتحديات التى تواجهها، مشيرة إلى أنه تم التأكيد على أن المرحلة المقبلة ستشهد مزيداً من اتاحة الفرص أمام الكوادر النسائية لتتبوأ المناصب القيادية بمختلف المؤسسات خاصة فى ظل توجيه القيادة السياسية بضرورة تدعيم وتمكين المرأة وهو ما اتضح من خلال إطلاق الرئيس عبد الفتاح السيسى بأن العام الجارى هو عام المرأة المصرية، وكذلك المبادرة التى يتبناها البنك المركزى بالتعاون مع المجلس القومى للمرأة لتوفير التمويل اللازم للمشروعات الصغيرة والمتوسطة التى تقودها النساء بنسب فائدة ميسرة   وأشارت إلى أنه كان هناك بعض الاستفسارات من الجانب البريطانى حول عدم وجود قاعدة نسائية كبيرة بالشركات العاملة فى قطاعات الصناعة والتصدير، موضحة أن الجانب المصرى أبرز أسباب ذلك باتجاه عدد كبير من النماذج النسائية للعمل بقطاعات الخدمات وليس التصنيع.   وشددت العدوى على أنه تم التأكيد على الجانب البريطانى بأنه لا يوجد تمييز بين الذكور والإناث فى ممارسة الأعمال وفقا لقوانين الاستثمار فى مصر، كما أن القطاع المصرفى يتيح الحرية لكلا الجنسين فى الحصول على التمويل اللازم للمشروعات من خلال مبادرة المشروعات الصغيرة والمتوسطة التى تتيح التمويلات اللازمة بنسبة فائدة لا تتجاوز الـ 7%. وتابعت أن هناك 3 عوامل رئيسية تدعم المرأة فى النجاح بالعمل والمساهمة بفاعلية فى خطط التنمية الإقتصادية وهى ضرورة منحها الحق فى التدريب والتعليم وكذلك إتاحة الفرصة لها فى حرية اختيار مجال العمل، بالإضافة إلى أن تتسم المرأة بالمثابرة فى العطاء.     http://www.almasryalyoum.com/news/details/1217137    

Misr Al-Khair Fund is ranked the first in 2017 till date: Achieving an Average Monthly Return of 17.4 %, to expectedly reach an Average Annual Rate of 34.7 % under a similar performance for the rest of the year. Ezdehar Islamic Fund ( Audi Bank ) is ranked the first in 2017 till date: Achieving an Average Monthly Return of 23.02 %, to expectedly reach an Average Annual Rate of 37.91% under a similar performance for the rest of the year.

.طالبت رنا العدوى، العضو المنتدب لشركة "أكيومن" القابضة، بوضع قانون لتحفيز الاستثمار غير المباشر، الذى بلغ 5.9 مليار دولار منذ تعويم الجنيه فى الأسبوع الأول من نوفمبر الماضى وأضافت رنا العدوى، فى كلمتها بالجلسة الرابعة بمؤتمر "بورتفوليو إيجيبت"، الذى تنظمه شركة "المال جى تى إم"، اليوم الأحد، أنه حال استمرت نفس المعدلات، سيحقق ضعف عائد قناة السويس، ونصف عائدات التصدير، و3 مرات عائد السياحة، ولذا يجب أن تهتم الدولة به، بدلا من إصدار قرارات تؤدى لانكماشه، سواء بفرض ضرائب أو رفع معدلات الفائدة وأشارت العضو المنتدب لشركة "أكيومن" القابضة، إلى أن الحصة السوقية للبورصة المصرية تصل إلى 16% من الناتج المحلى الإجمالى، فى حين تبلغ ضعف تلك الأرقام بالأسواق المجاورة، وفى مصر يهتم القطاع الخاص حاليا بجذب الاستثمار غير المباشر، رغم أن الأقرب للحكومة جذب الاستثمار غير المباشر، مقارنة بالاستثمار المباشر، الذى يحتاج بنية تحتية وعمالة فيما اعترض يحيى أبو الفتوح، نائب رئيس البنك الأهلى، على دعوة العضو المنتدب لشركة "أكيومن" القابضة لتحفيز الاستثمار غير المباشر، قائلا: "الاستثمار غير المباشر له عيوب أيضا، أبرزها أنها أموال ساخنة، مثلما تدخل سريعا تخرج سريعا، ولهذا لا يمكن التخطيط عليها استراتيجيا، كما أن سعر الفائدة لا يؤثر كثيرا على الاستثمار غير المباشر، والدليل دخول استثمارات غير مباشرة كثيرة جدا خلال الفترة الماضية، ونحن نحاول علاج ارتفاع أسعار الفائدة من خلال إطلاق مبادرات، مثل مبادرة المشروعات الصغيرة والمتوسطة، والتمويل العقارى

اختارت "شركة أكيومن القابضة" صلاح أبوعلم مدير الإدارة المركزية للتفتيش بالرقابة المالية سابقًا ومستشار رئيس الهيئة الأسبق عضوًا بمجلس إدارة "أكيومن للمحافظ والصناديق" ومشرفًا على الرقابة الداخلية للشركة القابضة والشركات التابعة.  ويمتلك "أبوعلم" خبرة طويلة في أسواق المال والخدمات المالية غير المصرفية بداية من العمل بالمجموعة المالية هيرميس لمدة 9 أعوام ثم الانتقال إلى الرقابة المالية عقب ترشيحه من قبل الدكتور هاني سري الدين رئيس سوق المال الأسبق.  وأسهم "أبو علم" في تأسيس إدارة التفتيش بالرقابة المالية على الأسواق والشركات، والكشف عن العديد من مخالفات السوق التي أضرت بصغار المستثمرين.  وكانت شركة" أكيومن للمحافظ" قد حصلت على جائزة أفضل أداء من إنجلترا  https://m.alwafd.org/اقتصاد/1486750-صلاح-أبو-علم-عضوا-بمجلس-إدارة-أكيومن-للمحافظ    

Acumen Gold Sponsor at the American Chamber conference “Egypt’s New Investment Horizon: The Promise of Tomorrow” held on 28th March . The event, which was organized by AmCham investment and capital market committees, included four panel discussions that explored the private sector’s view of investing in consumer goods, real estate and private equity, among other topics. Sahar Nasr, Egypt’s minister of investment and international cooperation , delivered the key note speech and led the first panel “ Recent Updates: Egypt’s Investment Platform” . http://www.amcham.org.eg/events-activities/events/1067/egypts-new-investment-horizon-the-promise-of-tomorrow    

Acumen Asset Management has been awarded a trophy by Investor Review , a fund managers rating agency based in the UK , in recognition of Ezdhar’s exceptional performance in 2016 . The company was also recognized as “The Most innovative Asset Manager “. Ezdehar Islamic balanced fund was the best performing balanced fund in 2016 achieving the highest return among its peers. The fund is the best performing Islamic fund among all Islamic funds (balanced and equity funds) on both 2 years cumulative return and 3 years cumulative return as of Thursday the 28th of February .

Acumen Funds ranking No1 in performance for three consecutive years. Acumen managing Egypt’s Top performing balanced fund “El Kheir Fund” that ranked number one in cumulative performance for three years from 2012-2014. Acumen also managing Bank Audi’s Islamic fund “Ezdehar” ranking number one Top Performer in 2015 and first quarter 2016  

Mrs. Rana Adawi founder and manager of Acumen Holding was recognized as one of The Top 50 Most Influential women in the economy of Egypt in 2015. Under the auspices of the Prime Minister Sherif Ismail, in a very large prestigious ceremony and for the very first time in Egypt, 50 most influential women in the  economy of Egypt were honored and awarded for their accomplishments and indispensable roles in various economic sectors. The Minister of Investment Ashraf Salman and the Minister of Industry Tareq Qabil were present to acknowledge The Top 50 Women and present them with the awards. Mrs. Adawi received her award in recognition of her outstanding performance and continuous success in her field of asset management for the past 22 years.   Rana Adawi Top 50 Award   Top 50 - Amwal Alghad meeting     

Mrs Rana Adawi Spokeswoman in Almal- GTM portfolio Egypt conference  

Published Wednesday, 27 April 2016 16:59 | Written by Islam Salah & Gehad Abdel Ghany   Egypt-based investment bank, Acumen Holding’s assets under management stood at 1.2 billion Egyptian pounds at the end of March, chairperson of the AUM department said Wednesday. Acumen is running two investment funds in equities in addition to financial portfolios for some private and public-sector firms as well as state-run banks, said Rana Adawi, Chairperson of Acumen Asset Management, told Amwal Al Ghad on Wednesday. Acumen Holding is a company that provides financial solutions and investment ideas it provides both Asset management investments and security investment. Acumen Holding is a leading Egyptian investment bank established in 2010 with an authorized capital of 200 million pounds and a paid-in capital of 30 million pounds. The company has three subsidiaries: Acumen Asset Management, Acumen Securities & Brokerage, and Acumen Beltone Real Estate Fund Management.  

 We are happy to announce that we have moved our office location in order to better serve our clients.  Our new location is: Sodic West - Polygon, Kilo 38 Cairo Alex. Road, Building 3, 5th Floor, office 5c, Cairo, Egypt   Telephone numbers:         + (202) 38 65-3336   -   + (202) 38 65-3337 - + (202) 38 65-3336    

أستاذه رانا عدوى تشارك فى ملتقى المستجدات التشريعيه فى مجال صناديق التامين الخاصه لعام 2015  لاول مره السماح باسناد اداره اموال صناديق التامين الخاصه لشركات محافظ الاوراق الماليه https://www.efsa.gov.eg/content/efsa_ar/efsa_news/efsa_392.htm