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24

Oct 2021

Fitch Affirms Egypt’s Rating At B+

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)

24

Oct 2021

Egyptian Hotels’ Occupancy Rate Restrictions Removed

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)

19

Oct 2021

Egypt Targets 5.4% GDP Growth In FY21/22

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)

18

Oct 2021

Remittances Rise 10% YoY In 7M21

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)

18

Oct 2021

Egypt To Build Infrastructure For Internet of Things (IoT)

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)

17

Oct 2021

Balance Of Payments Turns To Surplus In FY20/21

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)

17

Oct 2021

Egypt To Produce Green Hydrogen

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.

14

Oct 2021

Egypt & Greece To Establish Electrical Interconnection

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)

13

Oct 2021

Trade Deficit Shrinks Considerably In July 2021

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)

13

Oct 2021

IMF Raises Egypt’s GDP Growth Forecast

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)

11

Oct 2021

Inflation Rises In September 2021

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)

10

Oct 2021

World Bank Raises Egypt’s FY21/22 GDP Growth Forecast To 5%

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)

05

Oct 2021

Egypt’s PMI Declines In September 2021

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)

30

Sep 2021

Cabinet Discussing Medium-Term Growth Scenarios

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)

28

Sep 2021

Egyptian Banks Launch EGP1bn Fintech Fund

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)

27

Sep 2021

Egypt To Allow Cell Phone Contactless Payments

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)

23

Sep 2021

Pilot Program Launched For B2C e-Invoicing

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)

21

Sep 2021

Food Exports Rise

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)

20

Sep 2021

Egypt Signs Massive Reconstruction Deals With Libya

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)

20

Sep 2021

Fitch Expects Egypt’s Economy To Grow 153% By 2030

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)

19

Sep 2021

CBE Keeps Interest Rates Unchanged

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)

16

Sep 2021

Remittances Reach New Record High

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)

15

Sep 2021

Government Allocates Export Incentives

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)

15

Sep 2021

Egypt Targeting 7% GDP Growth Within 3 Years

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)

13

Sep 2021

Trade Deficit Declines Significantly In June 2021

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)

12

Sep 2021

Egypt Plans For Huge Investments In Transportation

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)

09

Sep 2021

Inflation Rises Slightly In August 2021

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)

09

Sep 2021

Egyptian Natural Gas To Be Exported To Lebanon To Mitigate Crisis

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)

08

Sep 2021

Egypt Transforming Alexandria Port Into Global Logistics Hub

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)

07

Sep 2021

Net Foreign Exchange Reserves Flat In August 2021

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)

07

Sep 2021

Egypt Most Popular Regional M&A Destination This Year

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)

05

Sep 2021

Securities Capital Gains Tax From 2022

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)

05

Sep 2021

PMI Rises In August 2021

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)

02

Sep 2021

GDP Growth 7.7% In 4Q20/21

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)

02

Sep 2021

Customs Reduced On Trade Between Egypt & Mercosur

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)

01

Sep 2021

Fitch Optimistic About Egyptian Economy

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)

01

Sep 2021

Amazon Launches Logistics Centre In Egypt

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)

30

Aug 2021

Plans To Increase Suez Canal Revenues

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)

29

Aug 2021

Government’s Automotive Sector Support Initiative

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)

29

Aug 2021

First Pilot Project For Green Hydrogen Production in Egypt

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)

25

Aug 2021

Egypt Allocated USD2.8bn Share In IMF’s SDRs

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)

24

Aug 2021

Government Target For Investments In Petroleum Sector

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)

24

Aug 2021

Suez Canal Revenues Reach Record

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)

22

Aug 2021

Non-Oil Exports Rise

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)

22

Aug 2021

Government Inflation Target

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)

19

Aug 2021

FDI Rises Significantly

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)

18

Aug 2021

Mobile Wallet Transactions Surge In 1H21

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)

18

Aug 2021

Remittances Rise Considerably In May 2021

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)

16

Aug 2021

Unemployment Drops Significantly YoY In 2Q21 To 7.3%

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)

15

Aug 2021

Egypt Has Most Start-Up Deals In MENA In July 2021

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))

10

Aug 2021

Inflation Rises In July 2021

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)

09

Aug 2021

Russian Flights To Egyptian Resorts Resumed

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)

08

Aug 2021

CBE Holds Key Policy Rates

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)  

05

Aug 2021

Net Foreign Reserves Stable In July 2021

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)

04

Aug 2021

Fitch Raises Egypt’s Banking Sector Outlook To ‘Stable’

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)

04

Aug 2021

Egypt’s First Private Green Bond Issuance Bought In Full By The World Bank’s IFC

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)

03

Aug 2021

PMI Falls Slightly In July 2021

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)

03

Aug 2021

EGX Launches New Index For Treasury Bonds

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)

02

Aug 2021

EGX To Change Shares’ Closing Price Calculation & Intraday Movement Range

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,

01

Aug 2021

Moody’s Maintains Egypt’s Credit Rating at B2

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)

29

Jul 2021

EGX Index Rebalancing

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)

29

Jul 2021

Confidence In e-Payments Grows Significantly

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)

28

Jul 2021

20% Of FY21/22 State Budget Will Be Invested In Transportation Infrastructure

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)

27

Jul 2021

Reuters Survey Expects Economy To Grow By 5% In FY21/22

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)

27

Jul 2021

Food Exports Rise 13% in 1H21

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)

26

Jul 2021

Budget Deficit Shrinks As A Percentage Of GDP In FY20/21

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

25

Jul 2021

Non-Oil Exports Rise 23% In 6M21

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)  

25

Jul 2021

New EGX30 Rules

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)

18

Jul 2021

IMF Praises Egyptian Economy’s Resilience; Forecasts 5.2% Growth In FY21/22

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

14

Jul 2021

CBE Launches New EGP100bn Mortgage Initiative

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)

14

Jul 2021

FRA Issues New Mandatory ESG Reporting Requirements

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)

12

Jul 2021

Trade Deficit Decreases 13.3% In April 2021

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)  

11

Jul 2021

Remittances Rise 11% in 10M20/21

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)

11

Jul 2021

Russia Lifts Ban On Charter Flights To Egypt

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)

08

Jul 2021

Urban Inflation Almost Unchanged In June 2021

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)

08

Jul 2021

Egypt Allows More Nationalities To Apply For Electronic Tourist Visa

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)

07

Jul 2021

New Cement Quotas For Producers

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)

07

Jul 2021

Net Foreign Reserves Rise

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)

06

Jul 2021

PMI Rises Slightly In June 2021

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,

06

Jul 2021

Egypt Manufactures 1mn Doses Of Sinovac Covid Vaccine; WHO Commends

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)

05

Jul 2021

Tourism Revenues Rise Significantly In 1H21

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)

05

Jul 2021

Covid Commercial Occupant Capacity Restrictions Eased

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)

01

Jul 2021

FY20/21 Budget Deficit Declines

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)

01

Jul 2021

Egypt Implements National Projects Worth EGP4.4tn In Last 7 Years

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)

30

Jun 2021

Egypt’s Balance Of Payments Turns To Surplus

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)

30

Jun 2021

Foreign Inflows Into Egyptian T-Bills Increase

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)

29

Jun 2021

House of Representatives Approves Sukuk Law

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)

29

Jun 2021

Minimum Wage Set For Private Sector

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)

28

Jun 2021

FRA To Issue First Local Green Bonds

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)

28

Jun 2021

EBRD To Finance Projects In Egypt Worth Over EUR1bn In 2021

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])

27

Jun 2021

Egypt Is The Second Most Attractive Arab Destination For FDI

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)

27

Jun 2021

Egypt Planning To Produce Green Hydrogen

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)

24

Jun 2021

CBE Extends Fees Waivers On Banking Services

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)

24

Jun 2021

IMF Approves Final USD1.7bn Tranche Of Egypt’s SBA Loan

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)

23

Jun 2021

Electricity Prices To Increase in FY21/22

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)

23

Jun 2021

Suez Canal Offers Further Discounts

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)

22

Jun 2021

New Export Subsidy Program Launching In July 2021

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))

22

Jun 2021

The U.S. Will Donate Covid Vaccines To Egypt

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))

21

Jun 2021

Saudi Plans To Invest USD20bn In Egypt

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)

21

Jun 2021

Government Includes 3-wheelers (Tuktuks) In NGV Replacement Initiative

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)

20

Jun 2021

CBE Leaves Interest Rates Unchanged

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)  

20

Jun 2021

Egypt To Manufacture Electric Vehicles By Mid-2022

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

16

Jun 2021

ESRS Reports 1Q21 Results

 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)

15

Jun 2021

House of Representatives Approves FY21/22 Budget

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)

15

Jun 2021

Growth In Public Investments

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)

14

Jun 2021

Egypt Signs Deals Worth EUR3.8bn With France

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)

14

Jun 2021

World Bank Considering Providing Funds To Egypt

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)

13

Jun 2021

Egypt Received 2mn Tourists in 2021

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)

13

Jun 2021

Egypt Spent USD100bn On Public Projects In Last 7 Years

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)

10

Jun 2021

Egypt To Begin Production Of Sinovac Vaccine Next Week

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)

10

Jun 2021

Inflation Down To 4.9% In May 2021

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)

09

Jun 2021

Egypt Studying Issuing Green Bonds

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)

09

Jun 2021

New FTSE Russell Bond Index Series Will Include Egypt

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))

08

Jun 2021

Egypt Receives Sinovac Vaccine Doses

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)

08

Jun 2021

ETEL (Telecom Egypt) & Vodafone Amend Dividend Policy

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)

07

Jun 2021

House of Representatives Approves Sukuk Bill

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)

07

Jun 2021

Egypt To Produce First Batch Of Sinovac Vaccine By 15 June 2021

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)

06

Jun 2021

Goldman Sachs Says CBE Has Room To Cut Interest Rates

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))

06

Jun 2021

Cigarette Prices To Increase

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)

03

Jun 2021

PMI Rises

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))

03

Jun 2021

Economic Growth In 3Q20/21

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)

02

Jun 2021

Foreign Holdings of Egyptian T-Bills Rises

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)

02

Jun 2021

External Debt Rises

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))

01

Jun 2021

Senate Approves Establishment of Medical Emergencies Fund

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)

01

Jun 2021

Growth In Automobile Sales During 4M21

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)

31

May 2021

Egypt Lifts COVID Restrictions

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)

31

May 2021

Retail Pharmaceutical Sales Increase in April 2021

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)

30

May 2021

Senate Approves FY21/22 Government’s Economic Plan

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)

30

May 2021

Colliers Issues 1Q21 MENA Hotels Quarterly Review Report

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))

27

May 2021

Non-Oil Exports Rise In 4M21

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)

27

May 2021

Tourism Revenues Expected For 2021

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

27

May 2021

COMI & TMGH Establish A New Real Estate Development Company

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

26

May 2021

IMF Completes Final Review Of Egypt’s Stand-By Arrangement

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)

26

May 2021

EGX Approves Listing of IRON’s New Mining Spinoff Company

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)

25

May 2021

Biden Grateful For Sisi’s Instrumental Role in Gaza Ceasefire

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)

25

May 2021

Government Includes Pharmaceutical Sector In Export Subsidy Program

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)

24

May 2021

Egypt Aims To Reach Petroleum Self-Sufficiency By 2023

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)

24

May 2021

CBE Considering Extending ATM Fees Waiver

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)

23

May 2021

COMI 1Q21 Results

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)

23

May 2021

HELI Extends Deadline For Heliopark Bids

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)

23

May 2021

Suez Canal Revenues Rise in April 2021 & 4M21

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)

20

May 2021

COVID-19 Containment Measures Extended

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)

20

May 2021

Minimum Wage Increased For Government Employees

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)

19

May 2021

CBE Raises Funding Limit For Hotel Renovations

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)

19

May 2021

Government To Establish Marketing Company for Spinning & Weaving Products

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)

19

May 2021

The Holding Company For Natural Gases’ Plans For New Residential Installations

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)

18

May 2021

Egypt In Negotiations To Manufacture AstraZeneca Vaccine

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)

18

May 2021

Telda, Egypt’s First Digital Bank, Raises USD5mn

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)

17

May 2021

Egypt Optimistic About Tourism Recovery By The End Of 2021

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)

17

May 2021

Egypt Receives Shipments Of Egypt Receives Shipments Of AstraZeneca And Sinopharm VaccinesAnd Sinopharm Vaccines

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)

29

Mar 2021

Cargo Ship Blocking Suez Canal Partially Refloated

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)    

29

Mar 2021

New Mega-Project In Northwestern Coastline

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)

29

Mar 2021

Egypt Preparing To Produce Sinovac Vaccine

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)        

28

Mar 2021

EGAS (Egypt Gas) AGM Decisions

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

25

Mar 2021

CBE Sets Up Fund To Finance Margin Trading

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)

25

Mar 2021

FY21/22 Budget Approved By Cabinet

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)  

25

Mar 2021

Ship Stuck In Suez Canal

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)

24

Mar 2021

FRA & CBE Agree To Establish Fund to Finance Brokerage Firms

    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)

23

Mar 2021

IDH (Integrated Health Diagnostics) Dual Listing Receives FRA Approval

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)    

23

Mar 2021

Sinovac Vaccine Close To Being Produced In Egypt

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)  

23

Mar 2021

Small Businesses Survey Predicts Economic Recovery This Year

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)

22

Mar 2021

DSCW (Dice Sport & Casual Wear) To Hire Advisor To Prepare Fair Value Report

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)      

22

Mar 2021

Turkey’s Lira Tumbles

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)        

21

Mar 2021

Ebtikar Acquires Additional 20% Stake In Bee

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)  

21

Mar 2021

Central Bank of Egypt (CBE) Leaves Interest Rates Unchanged

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)

21

Mar 2021

Pharma Imports Rise

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)    

18

Mar 2021

New Cigarettes Manufacturer

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)

18

Mar 2021

Trade Deficit Shrinks In 2020

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)

17

Mar 2021

مساهمون بشركة غاز مصر يطالبون بتقييم سعر السهم.. وترشيح ممثل للأقلية

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

17

Mar 2021

Banks Interested In The New Futures Exchange

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)  

16

Mar 2021

ORAS (Orascom Construction) & SWDY (el-Sewedy Electric) Among Winners Of Energy Production Project

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)

16

Mar 2021

Egyptian Expatriate Remittances Grow

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)

16

Mar 2021

Ceramics & Porcelain Producers To Get Funds Under CBE Initiative

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)

15

Mar 2021

EGAS (Egyptian Natural Gas Holding) Signs 9 Natural Gas Exploration Agreements Worth USD981mn

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)

15

Mar 2021

Saudi Businessmen Plan To Invest USD2.5bn In 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)

15

Mar 2021

CBE Launches Mortgage Initiative at Subsidized Rates

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)

14

Mar 2021

OCDI (SODIC) Receives Takeover Offer From UAE’s Aldar Properties

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)

14

Mar 2021

CICH (CI Capital) Takeover by Banque Misr Successful

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)

11

Mar 2021

Fitch Maintains Egypt’s Credit Rating at B+

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)

11

Mar 2021

Economic Growth Accelerates in 2Q20/21

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)

10

Mar 2021

Banks Allowed to Perform Immediate FX Interbank Payments

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)

09

Mar 2021

Sugar Import Ban Extended

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)

09

Mar 2021

FRA Approves Capital Increase for COMI (Commercial International Bank – CIB)

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)

08

Mar 2021

CI Capital Refuses Banque Misr’s Takeover Offer & Banque Misr Not Intending on Changing the Offer

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)

07

Mar 2021

Reinstatement of Capital Gains Tax on Treasury Bills & Bonds

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)

07

Mar 2021

Egypt Begins Vaccine Rollout to Wider Population

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)

07

Mar 2021

Egyptian Drug Authority Approves Retail Sales of Covid Anti-Viral Treatment

  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)

04

Mar 2021

Purchasing Managers’ Index (PMI)

  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)        

03

Mar 2021

Government Financing of Micro-Enterprises

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)  

03

Mar 2021

Factoring Companies Now Able to Finance Margin Lending

  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)

02

Mar 2021

Macro Group Pharma Intends to IPO 1-2Q21

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)  

02

Mar 2021

Real Estate Registry Act Amendments Suspended for 2 Years

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)

01

Mar 2021

Auto Vehicle Sales Rise YoY in January 2021

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)  

01

Mar 2021

Real Estate Registry Tax Amendments Might Be Postponed to the End of the Year

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)  

28

Feb 2021

ANFI (Alexandria National Company for Financial Investments) Acquisition Bidding War

 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)  

28

Feb 2021

SFE to Invest 10% in ADQ’s (Abu Dhabi Sovereign Wealth Fund) Acquisition of Amoun Pharma

  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)

28

Feb 2021

Citizens & Residents Above 40 or With Chronic Illness Can Now Register for the Vaccine

  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)

25

Feb 2021

Prime Speed to Import Covid Vaccine Sputnik V

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)    

25

Feb 2021

Delta Sugar Company Chairman Announces That Egypt Will Be Self-Sufficient In Sugar Within 3 Years

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)

25

Feb 2021

Minister of Finance Denies Imposition of New Taxes on Real Estate Sales

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)  

31

Mar 2019

عمومية غاز مصر توافق علي تشكيل لجنه لتقييم الاستثمارات بالقيمة العادلة

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 

31

Mar 2019

مال وأعمال | غاز مصر تعتمد توزيع أرباح بقيمة 1.25 جنيه للسهم

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.

24

Feb 2019

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

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

20

Feb 2019

مال وأعمال| لماذا انخفضت نسبة رأس المال السوقي في مصر مقارنة بالناتج المحلي؟

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  

30

Jan 2019

أكيومن تفوز بجوائز أفضل مدير استثمار في منطقة الشرق الأوسط وشمال أفريقيا ومصر من مؤسسة MENA FUND MANAGER لعام 2019

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   

30

Jan 2019

BEST ASSET MANAGER IN The MENA REGION AND IN EGYPT FROM MENA FUND MANAGER PERFORMANCE AWARDS 2019 - DUBAI

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.    

05

Dec 2018

Mrs. Rana Adawi wins the award of "CEO of the Year" 2018

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

13

Nov 2018

الجهات المالكة يجب أن تسعى لتعظيم العائد عبر الاستعانة بالخبرة

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

02

Oct 2018

Mrs. Rana Adawi interview with Arab Finance - مقابلة السيدة رانا العدوي مع اراب فاينانس

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

17

Sep 2018

Forbes Announced Mrs. Rana Adawi as one of the "Most Influential Women 2018"

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.

09

Sep 2018

Acumen Asset Management wins an award by "International Business Magazine (IBM Award 2018)"

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.

16

Jul 2018

Mrs. Rana Adawi awarded "Best Asset Management CEO – Egypt 2018"

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  

08

Jul 2018

Misr Alkhair Fund at the forefront of balanced funds in Egypt

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

25

Feb 2018

أكيومن تتربع علي عرش صناديق الإستثمار ب 3 جوائز - Acumen wins three awards at the MENA Fund Manager's Awards

  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  

16

Feb 2018

مجلة البوصلة الإقتصادية – عدد فبراير 2018 - Mrs. Rana Adawi, chairperson of Acumen Asset Management, talks about the size of the company's assets.

 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

11

Feb 2018

El Masry El Youm Newspaper 11.02.18

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

05

Feb 2018

ادارة الاصول تعوض تراجع صناديق الاستثمار بالمحافظ الحكومية

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

04

Feb 2018

اكيومن فى المقدمة

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.  

20

Jan 2018

صناديق استثمار «أكيومن» تتصدر ترتيب الصناديق لعام2017

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        

18

Jan 2018

رانا عدوى: "أكيومن" تدير اصول بقيمة 1.6 مليار جنيه وتؤسس قطاع جديد لإدارة أصول الأفراد

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

14

Jan 2018

صناديق الاستثمار تجنى ثمار التعويم فى 2017

  ❏ «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--  

11

Jan 2018

صناديق الإستثمار... صناعة تواجه الإندثار- جريدة المال يناير 11-2018

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

21

Dec 2017

اكيومن تستهدف رفع الأصول المدارة 60% خلال 2018

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

12

Nov 2017

رنا العدوى، العضو المنتدب لشركة «أكيومن» القابضة،تستعرض الجهود التى بذلتها الدولة المصرية فى مجال تمكين المرأة ضمن فعاليات بعثة الجمعية المصرية البريطانية للأعمال فى لندن

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    

30

Jun 2017

MEK And Ezdehar Ranking

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.

07

May 2017

أكيومن القابضة: 5.9 مليار دولار استثمارات غير مباشرة منذ تعويم الجنيه

.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

02

Apr 2017

Mr.Salah Abou-Alam Board Member in Acumen Asset Management

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    

28

Mar 2017

Acumen Gold Sponsor

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    

01

Mar 2017

The Most innovative Asset Manager

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 .

19

Nov 2016

Acumen Funds ranking

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  

06

Nov 2016

Mrs. Rana Adawi recognized as one of The Top 50 Most Influential women in the economy of Egypt in 2015

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     

01

May 2016

Mrs. Rana Adawi Spokeswoman in Almal- GTM portfolio Egypt conference

Mrs Rana Adawi Spokeswoman in Almal- GTM portfolio Egypt conference  

27

Apr 2016

Acumen’s Assets under management 1.2 bln Egyptian pounds at end of March

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.  

15

Dec 2015

We Moved!

 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    

01

Nov 2015

Private Pension Fund Meeting 2015

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

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