Economy Sector - Q1 2019 Report
Economy
1 (2019) Report
American Chamber of Commerce in Egypt - Business Information Center 1 of 92 Economy Sector - Q1 2019 Report
Special Remarks The Economy Q1 2019 report provides a comprehensive overview of the Economy sector with focus on top tenders, big List of sub-sectors projects and important news. Banking, Finance & Insurance Economy Tenders Section
- Integrated Jobs (Having a certain engineering component) - sorted by - Generating Sector (the sector of the client who issued the tender and who would pay for the goods & services ordered) - Client
- Supply Jobs - Generating Sector - Client
Non-Tenders Section - Business News - Projects Awards - Projects in Pre-Tendering Phase - Privatization and Investments - Published Co. Performance - Loans & Grants - Fairs and Exhibitions
This report includes tenders with bid bond greater than L.E. and valuable tenders without bid bond
Tenders may be posted under more than one sub-sector
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Copyright ©2019, American Chamber of Commerce in Egypt (AmCham). All rights reserved. Neither the content of the Tenders Alert Service (TAS) nor any part of it may be reproduced, sorted in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the American Chamber of Commerce in Egypt. In no event shall AmCham be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits.
American Chamber of Commerce in Egypt - Business Information Center 2 of 92 Economy Sector - Q1 2019 Report
Banking, Finance & Insurance - Non Tenders Section Type Description Date Published Business News 56 vessels crossing the Suez Canal on March 11, 2019, carrying 3.8 million tons of oil, containers and cargo equally divided between those crossing from the north with 2 Mar 11, 2019 million tons & those crossing from the south with 1.8 million tons. Recent released data of the International Tourist Agency regarding the number of tourist arrivals in Egypt in 2018 showed they reached 11.35 million having spent 121.5 Feb 13, 2019 million tourist nights marking 3 million nights increase. That was reported in the media quoting Dr. Said El Battouty, Economic Advisor to the UN & the AYATA. They included 6.95 million tourists from Europe, 3 million tourists from Arab Countries, 669,000 tourists from Asian countries, 456,000 tourists from the Americas, 159,000 from African Countries a.o. Egypt's current account deficit narrowed to $1.751 billion in the three months to end-September, the central bank said on Thursday, from an apparently revised $1.754 Jan 13, 2019 billion a year earlier.
Last year the central bank had put the July-September 2017 figure at $1.64 billion.
The trade deficit increased to $9.90 billion from $8.91 billion, with exports rising 16 percent to $6.79 billion and imports 13 percent to $16.68 billion.
Petroleum exports surged 58 percent to $2.81 billion and imports climbed 27 percent to $3.50 billion, the central bank said in its quarterly balance of payments report.
Remittances from workers abroad, a major source of foreign currency, edged up to $5.91 billion in the quarter from $5.82 billion a year earlier. The central bank apparently revised last year's figure, which it had previously put at $5.97 billion.
Partly to attract foreign investment, Egypt in late 2016 cut the value of its currency by about half against the dollar as part of a three-year, $12 billion loan agreement with the IMF. It also implemented a value-added tax and has been slashing energy subsidies.
Net foreign direct investment fell to $1.1 billion in July-September from $1.84 billion, revised from $1.58 billion, and net petroleum investment fell to $482.1 million from about $912.7 million a year earlier, according to a Reuters calculation. Source: Reuters
Al Ahly Kuwaiti Bank inaugurating its 21st new branch in Al Mohandesin last week on Nadi El Seid St.in Dokki, in Greater Cairo. Event was attended by Mr. Ali Maarefi, Jan 02, 2019 Chairman of Egypt Branch, Mr. Khaled Al Sellawi, CEO of the same among other executives & VIP customers. Mr. Maarefi announced the bank plans to dispose on 57 branches by the end of 2021. Cash transfers of Egyptian expatriates abroad during 2018 increasing by $ 778.2 million or 3.1 % to reach $ 25.5 million up from $ 24.7 million reached in 2017. The Feb 14, 2019 Bank noted that the said transfers increased in December 2018 only by $ 270 million to reach $ 2.2 million deemed by all means a strong record in country's economy evaluation.
Central Bank of Egypt requesting expression of interest for consulting services for the modernization of its clearing & settlement of depository system (CSD) for Mar 04, 2019 government securities. Expression of interest must be delivered to the address below at 54 Gomhouria St., Cairo, Egypt by 14 March 2019. E Mail contact is salwa- [email protected] We hardly recommend personal contact to verify the issue. N.B.E. President announcing the soon opening of 20 new branches to extend electronic banking services to attract the youth. The bank claimed it has already started the Jan 14, 2019 experience with the branch at City Star Mall & is planning other similar branches at the Arabs Mall in 6th October City, Mall Point 90 in New Cairo City & City Center in Alexandria. Development will strengthen a fast growing trend of more I.T. trend in the banking sector & in the retail industry. Projects in Pre-Tendering Phase New company starts during the month of February 2019 attracting 2,172 companies & pumped funds, including. New company starts during the month of February 2019 Mar 23, 2019 attracting 2,172 companies & pumping funds, including pumped capital increases totaling L.E. 6.3 billion. That was announced by Dr. Sahar Nasr, Minister of Investments referring to the monthly investment report of February 2019.
American Chamber of Commerce in Egypt - Business Information Center 3 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt achieved self-sufficiency in natural gas, stated Minister of Petroleum Tarek el Molla in a meeting with President Abdel Fahat al-Sisi and Prime Minster Moustafa Mar 10, 2019 Madbouli.
The reasons of achieving self-sufficiency boil down to accelerating the excavation works for natural gas and offering international tenders that encouraged ‘ExxonMobil’ company to pump investments in the Egyptian market for the first time and ‘Shell’ company to return its investments in the market after a ten-year hiatus, the Minister said.
Egypt achieved the highest production of crude oil and natural gas in February with an output of 1.8 million barrels a day, the minister added. One million housing units were supplied with natural gas in 2018, recording the highest rate ever in Egypt, Molla said, noting that investments in the petroleum sector over the past four years hit 27 billion dollars.
After being updated on several axes regarding the important achievements implemented recently in petroleum sector, President Sisi directed government to continue all required efforts to heavily focus on the oil and gas infrastructure projects, and to invite first international tenders for gas exploration in the Red Sea in order to achieve optimal economic utilization of all potentials and natural resources needed for sustainable development.
Molla also signed a new petroleum agreement with German company DEA, with investment worth $20 million.
Petroleum Ministry clarified in a statement that the agreement is to explore oil and gas in Ras Badran and Khaleeg el Zeit in the Gulf of Suez .
The agreement stipulates the commitment of the German company to carry out drilling activities and development of production facilities, operation and maintenance of the extraction plant in the Gulf of Suez; the whole production of Butane gas will be transferred to the Petroleum Authority.
The European Union (EU) plans to launch a multi-year program for the water sector in Egypt, including grants worth 120 million Euros, EU ambassador to Egypt Ivan Mar 24, 2019 Surkos said Saturday.
Called EU4WATER, the program aims at supporting the water sector in Egypt and achieving the water security according to Surkos.
This was announced in a speech during a celebration marking the world water day, inaugurated in Qanater city by Minister of Irrigation Mohamed Abdel Aati, and Minister of Youth and Sports Ashraf Sobhi along with other senior officials and African ambassadors.
Surkos said that he wishes the program deal to be signed in the summer and its implementation starts by the end of 2019.
The EU contributed to projects worth 450 million dollars over the past 10 years, he said. The State budget deficit hit LE 222.5 billion from July to January of 2018/2019, accounting for 4.2 percent of the Gross Domestic Product. Mar 17, 2019
In a report, the ministry said revenues rose by 29 percent to hit LE 456.5 billion against LE 353.7 billion during the corresponding period of the previous fiscal year.
The expenditure increased by 19 percent to reach LE 678.4 billion compared to LE 570.1 billion.
Wages and compensations increased 17.5 percent to hit LE 153.4 billion.
American Chamber of Commerce in Egypt - Business Information Center 4 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s oil sector executing new plans that aim to improve the efficiency of transportation and distribution system of petroleum products to fulfill domestic needs, said Oil Mar 24, 2019 Minister Tarek el-Molla on Saturday.
El-Molla made these remarks during ameeting of the general assembly of Nile Company for Petroleum Marketing to endorse the business outcomes for 2018, the ministry said in a statement.
The minister asserted that the transportation and distribution system of petroleum products has witnessed a quantum leap nationwide over the past few years, which he said has contributed to the oil market stability.
Meanwhile, el-Molla urged taking all security, safety, and environmental protection measures while transporting and unloading fuels from warehouses to supply stations. The Central Bank of Egypt (CBE) will issue treasury bills (T-bills) worth EGP 18.5 billion ($1.07 billion) on Thursday on behalf of the Ministry of Finance (MoF). Mar 28, 2019
The first tranche of the T-bills will be offered through 182-day notes at EGP 9 billion, while the second tranche amounts to EGP 9.5 billion and will be through 364-day notes, according to the CBE’s official website.
The issuance will be used to finance the budget deficit, the CBE added.
Foreign investments in Egyptian T-bills and T-bonds reached $15.8 billion at the end of February, the Egyptian finance minister said.
The North African state plans to cut debt-to-gross domestic product (GDP) by 92% this year.
The MoF previously revealed plans to finance the general budget deficit of EGP 511.2 billion in fiscal year 2018/2019. South Korean tech giant Samsung said it aims to expand production lines in Egypt for home appliances and mobile phones, a statement by the Egyptian investment and Feb 28, 2019 international cooperation ministry said on Tuesday.
The Egyptian investment ministry quoted Samsung officials as saying during a high-profile Egyptian delegation's visit to the East Asian country that it has invested $265 million in Egypt in the past years.
The volume of exports have risen to $780 million through Egyptian-made electronics to 42 countries.
The statement came during an Egyptian-South Korean business forum, which saw the biggest gathering by South Korean investors with representatives from Egyptian companies.
According to the statement, the South Korean deputy prime minister and minister of economy and finance Hong Nam-ki said that Egypt enjoys a strategic location for tourism, investment, and establishing logistic zones.
Since Monday, Egypt's Investment and International Cooperation Minister Sahar Nasr, Finance Minister Mohamed Maait, and Suez Canal chairman Mohab Mamish flew to South Korea to discuss attracting South Korean investments to Egypt.
South Korean investments in Egypt stand at $560 million through tech giants LG and Samsung, according to Egyptian officials. Egypt’s net foreign reserves rose to $44.06 billion at the end of February, the central bank said on Monday, up from $42.616 billion in January. Mar 05, 2019
Egypt’s foreign reserves stood at $42.524 billion at the end of February last year.
American Chamber of Commerce in Egypt - Business Information Center 5 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News gyptian President Abdel-Fattah El-Sisi said that Egypt looks forward to promoting economic and commercial relations with Japan via promising investment opportunities Mar 12, 2019 in the Egyptian market in various sectors.
During a meeting with the chairman of the Japan External Trade Organisation (JETRO) Hiroyuki Ishige, El-Sisi reiterated that Egypt is keen on direct interaction with Japanese businessmen to review Egypt's capabilities, including trained labor and the free trade agreements inked with Arab, African and European countries.
He further highlighted the economic reform measures adopted by the government in order to encourage investments and remove obstacles facing the private sector, said presidential spokesman Bassam Rady.
The get-together, held between President El-Sisi and a high-level delegation of Japanese investors, took up the future prospects of Egypt's economy and the comprehensive economic reform programme being implemented by the cabinet.
The delegation, which comprises members of the Egypt-Japan Business Council, hailed the ambitious development plans adopted by the state and the political leadership, which are helping Egypt restore its pivotal regional status, the spokesman said. South Korean Prime Minister Lee Nak-yeon expressed his country's appreciation for having distinguished relations with Egypt in view of its vital role in maintaining Feb 28, 2019 stability and peace in the Middle East region.
The South Korean premier's remarks were made during his meeting on Tuesday with Egypt's Minister of International Cooperation and Investment Sahar Nasr, Minister of Finance Mohamed Maait and head of the Suez Canal Authority Mohamed Mamish, currently on a business visit to Seoul.
A statement released by the investment ministry said that Nasr asserted that Egypt is seeking to set up partnership relations with South Korea as it is considered a successful example in the economic field, adding that Cairo is looking forward to enhancing its relations with Seoul in all domains, especially in light of the mega development projects which are currently under construction in Egypt.
Meanwhile, Finance Minister Mohamed Maait reviewed the economic reform efforts introduced by the Egyptian government, the recent economic indices as well as growth rates.
Mamish also briefed the Korean side on the investment opportunities in the Exclusive Economic Zone in Suez Canal which includes six harbours, adding that currently 161 companies are operating in the zone.
The focus of business in EEZ in the coming phase is to build three ship arsenals.
The Korean premier, said his country is willing to join in partnership with Egypt in the ship building in the EEZ of the Suez Canal, asserting that Korean companies could benefit from such projects.
American Chamber of Commerce in Egypt - Business Information Center 6 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The government has to support the domestic consumption of electricity with subsidies up to LE 46.7 billion; however, the amount of subsidy available is only LE 16 Mar 03, 2019 billion, so the Ministry of Electricity raised the electricity of some consumer segments to compensate LE 10 billion, Electricity Minister Mohamed Shaker said in a three- hour meeting on Saturday with the Energy and Environment Committee of the House of Representatives, according to al-Borsa news website.
Even if all electricity bills are collected, the deficit will be LE 21 billion, he said, pointing out that the sector is going through a difficult stage and that the ministry will resort to increasing electricity prices in July.
The ministry launched a service to charge the electric meters through an application on mobile phones, Shaker said, pointing out that the service is currently available only in some areas and will be applied widely soon.
Shaker announced in January that lifting the electricity subsidies has been postponed from the 2018-2019 fiscal year to 2021-2022, due to changes in the US dollar exchange rate.
Shaker pointed to a deficit in the collection of electricity bills of LE 15 billion, so the trend was initiated to install pre-paid electricity meters.
Since June 2015, electricity has not been cut off once due to power shortage, but any power cuts were the result of malfunction, Shaker said.
The Electricity Ministry increased electricity prices in July 2018. In 2017, Egypt had hiked household electricity prices by up to 40 percent. Egypt’s government had previously increased electricity prices in July 2015.
Egypt’s government announced in 2017 that it would lift energy subsidies over five years as part of the economic reform program sponsored by the International Monetary Fund (IMF), which includes eliminating fuel subsidies.
In an attempt to reinvigorate its economy since 2011, Egypt obtained an IMF loan in 2016 in exchange for implementing a rigorous reform program, beginning with the flotation of the pound. Egypt also removed its fuel subsides, causing an increase in fuel prices by 66.6 percent. Egypt’s non-oil exports reached $2.043 billion in total by the end of January, according to a statement released by the General Organisation for Export and Import Mar 12, 2019 Control (GOEIC) on Monday.
Non-oil manufacturing exports amounted to $1.611 billion during the same month, whereas food exports registered $432 million, the statement added.
Egyptian exports to Arab countries amounted to $747 million, followed by those to EU at $637 million, the US at $131 million, Africa at $117 million, and others at $410 million, the organisation said. Egypt's Petroleum Minister Tarek Tarek El-Molla has stressed the importance of expanding operational and maintenance services in refining and petrochemical projects Mar 26, 2019 using the latest technologies to help increase production rates and maximise the value gained from petroleum wealth. El-Molla’s statements were made at a General Assembly Meeting of the Egyptian Projects Operation and Maintenance (EPROM) to endorse its performance report for 2018.
In a statement on Monday, the Egyptian Minister called for focusing on projects related to engineering inspection, technical support services and training in the field of improving electricity efficiency for companies affiliated with the petroleum sector.
Speaking at the meeting, EPROM chairman and CEO Amgad El-Ahmadi said that his company has achieved the highest performance rates in its various sites.
He further underlined that EPROM has managed to raise the efficiency of production units at the Middle East Oil Refinery.
American Chamber of Commerce in Egypt - Business Information Center 7 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Complete Energy Solutions, a specialised Engineering, Procurement, and Construction company, is negotiating with one of the companies operating in food Mar 28, 2019 industries sector to build a solar power plant with a capacities of 1 megawatt.
The new solar power plant will be with investment between $60 and $70 million to meet the company’s needs of electricity and energy. Al-Haddad added that his company has multiple solar energy solutions and systems suitable for all areas, noting that it works on building solar plants with capacities between 1- 50 megawatts.
CES has opened a solar power plant with 20MW capacity for Al – Daher Agricultural Reclamation Company. The plant is located in Toshka area with investments up to $30 million, Al-Haddad pointed out. The General Agency of Public Mobilization and Statistics (CAPMAS)¡ has issued a statement says that Egypt’s produce of electricity of renewable sources grew by 24.9% Mar 24, 2019 in the course of 2016-2017.
Those sources include the sun and wind.
The amount of electricity generated in that year was estimated at 2780 megawatt hour, compared to 2225.5 megawatt hour in 2015-2016.
The CAPMAS issued a statement on the International Day of Meteorology that comes on March 23¡ saying that consumption of natural gas in Egypt grew by 12.9% in 2106-2017 to hit 41503 thousand tons.
On the other hand¡ consumption of petroleum products retreated in that year to 37837 thousand tons. That volume of consumption declined by 3.9 % The National Bank of Egypt (NBE) aims to pump LE 180 billion to finance mega and infrastructure projects during three years, Vice Chairman of the bank, Yehia Abul Feb 26, 2019 Fotouh said.
Abul Fotouh elaborated that the volume of the projects’ finance portfolio currently reached LE 400 billion, adding that the bank targets to raise the volume to LE 580 billion by the end of 2021.
“NBE targets to achieve an annual growth rate of 15 percent in corporate finance portfolio,” he stated, adding that this portfolio includes financing companies operating in the sectors of petroleum, electricity, infrastructure and mega projects.
Furthermore, the vice chairman of NBE said that the volume of financing the bank offers to mortgage rose to LE 6.4 billion and includes LE 400 million for middle-income class. Upon the Central Bank of Egypt’s (CBE) initiative of mortgage, the volume of financing hit LE 6.4 billion to around 63,000 clients.
CBE’s initiative targets low and middle- income citizens.
In September, NBE signed a loan contract worth $600 million with China Development Bank in order to finance the working capital of the bank’s clients after signing a financing agreement worth €375 million with the European Investment Bank (EIB) by the end of July to fund investments in small and medium-sized enterprises (SMEs) and mid-caps in Egypt.
NBE allocates 27 percent of the market share in terms of credit and deposit portfolios and ATMs network.
American Chamber of Commerce in Egypt - Business Information Center 8 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Minister of Electricity and Renewable Energy decided to postpone lifting electricity subsidies to 2021-2022 state budget in spite of the high cost of energy Mar 28, 2019 production, Mohamed Shaker said.
During a meeting organized by the Energy Committee of the Egyptian Businessmen’s Association, he said that the government will continue supporting low-income citizens
Despite the increase in electricity prices, Egypt is still one of the lowest countries in the world in this regard, Shaker added.
Shaker explained that the price of selling electricity for high voltage is up to $9 globally, compared to $6 in Cairo, reassuring businessmen that energy prices will not exceed those of foreign competitors.
Shaker reviewed his ministry’s strategy till 2030, starting from the measures taken to overcome the problem of energy deficit, and noting that they were able to add 3,636 MW in 8.5 months with investments of $2.7 billion.
He pointed out that the long-term strategy of the Ministry of Electricity is to provide electric power until 2035 with investments of $135.3 billion to add 51,000 MW to the national electricity grid by adding new capabilities to the national network through coal-fired stations starting 2019. Egypt, the world’s largest wheat buyer, aims to harvest 3.6 million tonnes of its own wheat in the coming season that starts in April, the supply minister said on Mar 10, 2019 Wednesday. The state will pay farmers between 655-685 Egyptian pounds($38-$39) per ardeb (150 kilograms) of wheat depending on quality, Ali Moselhy said.
“This is a fair and special price ... We are targeting [a harvest of] 3.6 million tonnes and the funds from the finance ministry have been secured,” Moselhy said, in footage broadcast by state TV.
The head of the farmers’ union, however, told Reuters that farmers had requested the government pay 800 Egyptian pounds per ardeb and that the current price would drive farmers away from growing wheat.
“I expect the crop to fall this year due to the spread of yellow rust and climate change, which will increase the losses incurred by farmers,” Hussein Abu Saddam said.
Egypt procured 3.15 million tonnes of wheat during the harvest season last year, one of its lowest tallies in years, at 570-600 Egyptian pounds per ardeb.
Traders said at the time that some of the local crop was bought by private mills, which offered higher prices than the government, as global prices rose above the government’s price during harvest time. Egypt’s Ministry of Public Business Sector seeks to pump investments of 25 billion Egyptian pounds to develop Textile sector, Hesham Tawfik said. Mar 21, 2019
The minister added that these investments are in the frame work of the ministry’s plans to convert the textile centers into export outlets through upgrading their capacities , efficiency and productivity plans.
He pointed out that the ministry is keen on providing all means of technical support as well as financial support to develop the textile industry and turn it into profitable industries during the medium term.
The minister further noted that the ministry also pays attention to the other sectors, mainly cars through the signing of new contracts and partnerships with new investors to support the presence of Egyptian cars again.
American Chamber of Commerce in Egypt - Business Information Center 9 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Minister of Investment and International Cooperation Sahar Nasr met with the CEO of the International Islamic Trade Finance Corporation Hany Salem Sonbol on Friday, Mar 03, 2019 to discuss efforts to increase ITFC support for the private sector through investment projects.
The ministry has been working on increasing the volume of direct foreign investment and paving the way for increasing private sector investment in Egypt, Nasr said according to a ministry statement.
The minister praised the role ITFC played in providing basic commodities for citizens through a $3 billion agreement signed last year.
Sonbol said the total funds from his group to Egypt reached $8 billion dollars last month, which contributed to supporting small and medium-sized enterprises. Egypt’s Prime Minister Moustafa Madbouly said on Wednesday recent statements by IMF’s managing director praising the state of Egyptian economy indicate that the Jan 31, 2019 country is on the right track with its ongoing economic reform programme.
Last week, the International Monetary Fund’s (IMF) managing director Christine Lagarde said Egypt has made substantial progress as evident in the success achieved in macroeconomic stabilisation.
Lagarde noted that Egypt’s growth rate is among the highest in the region, with the budget deficit on a declining trajectory and inflation on track to reach the Central Bank of Egypt’s target by the end of 2019.
Madbouly added that Lagarde’s remarks are having a positive impact internationally.
The prime minister also discussed the outcome of his recent visit to Switzerland to attend the Davos economic forum, saying that the Egyptian delegation received appreciation during the gathering thanks to the country’s successful economic reform programme.
On foreign relations, Madbouly praised the outcome of French President Emmanuel Macron’s recent visit to Egypt, which witnessed the signing of cooperation agreements in many areas to push forward bilateral relations and attract more French investments into Egypt.
Also at the meeting, Minister of Education Tarek Shawky said he discussed with Apple officials in Davos how to enhance cooperation and integrate technology into Egypt’s new education system using devices created by Apple.
Minister of Agriculture Ezzeddin Abu Steit reviewed the outcome of his recent visit to Zambia and his meeting with Zambian President Edgar Lungu in Lusaka to discuss cooperation between the two countries, especially in the fields of agriculture and fish farming. BP’s Chief Executive Bob Dudley on Monday said the company will invest about $1.8 billion in Egypt this year and he expects a crude oil price of $50-65 a barrel over the Feb 12, 2019 next year. Dudley added that the current oil price is healthy and fair and that the market feels balanced. Misr Insurance Holding has stated the total investments of the company and its subsidiaries in Egypt reached EGP 65.4 billion ($3.73 billion) during the fiscal year Feb 24, 2019 2017/2018, up 13.2% from the year-ago period.
Misr Insurance’s revenue surged 53.3% year-on-year to EGP 1.744 billion in FY17/18, according to the Middle East News Agency (MENA).
Net profit went up 56.6% to EGP 1.45 billion in FY17/18, compared to the year before.
The insurer’s subsidiaries revenue rose 15.8% year-on-year to EGP 16 billion in the last fiscal year, while the three companies’ net profit reached EGP 3.204 billion. Eng. Mohamed El Sewedy, Head of the Egyptian Federation of Industries, announced the increase of the bilateral trade between Egypt & Greece in 2017 by 22.7 % Mar 06, 2019 above their level in 2016. Eng. El Sewedy added that ongoing Greek development projects operating in Egypt reached 160 units involved with industry, services, construction, tourism, communication & I.T.
American Chamber of Commerce in Egypt - Business Information Center 10 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Italian energy company Eni on Thursday announced a new natural gas discovery off the Egyptian coast. Mar 17, 2019 The discovery is in the Nour North Sinai Concession located in the Eastern Egyptian Mediterranean, some 50 kilometres north of the Sinai peninsula, which Eni operates with a 40 percent stake.
"The Nour-1 New Field Wildcat (NFW), which has led to the discovery, was drilled by the Scarabeo-9 semi-sub in a water depth of 295 metres and reached a total depth of 5,914 metres," the company said in a statement on its official website.
The Nour-1 well found an estimated gas column of 90 metres, Eni said, adding that the well has yet to be tested.
Eni said it would start the feasibility studies to "accelerate the exploitation of these new resources" after finalising the discovery evaluation.
Eni signed a concession agreement for exploration in the Nour prospect in August 2018.
In the joint concession with Egyptian Natural Gas Holding Company (EGAS), Eni holds a 40 percent stake, British Petroleum holds 25 percent , Mubadala Petroleum 20 percent and Tharwa Petroleum Company 15 percent.
Eni’s 2015 discovery of the giant Mediterranean gas field Zohr, estimated to hold around 30 trillion cubic feet of gas, has promoted gas exploration in Egypt.
American Chamber of Commerce in Egypt - Business Information Center 11 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Cairo-based Al Ahly for Real Estate Development Sabbour (Al Ahly) is expecting sales to rise by around 9 percent this year to hit 6 billion Egyptian pounds ($346.6 Mar 28, 2019 million), up from 5.5 billion pounds in 2018, its chief executive has told Zawya.
In an interview at the Cityscape Egypt exhibition, the company’s CEO, Ahmed Sabbour, told Zawya that the company is also planning to open marketing offices in Saudi Arabia and Kuwait this year, working with joint venture partners to offer people in each market access to its projects in Egypt.
“The company carries out residential projects through Saudi and Kuwaiti partnerships, besides other residential and commercial projects, inside Egypt,” Sabbour said.
The firm has a project with Kuwaiti real estate firm Manazel Holding in New Cairo that will start “within the second half of 2019”, Sabbour said. The first phase, which involves an investment of 2.25 billion points, will see its flagship Aria compound start on site in Mostakbel City.
“The project will be carried out on a space of 108 feddans (45.4 hectares) and it will include 2,200 various villas and apartments,” Sabbour said, adding that it had begun marketing 50 percent of the units.
Its joint venture with a Saudi company, Dar Al Maaly for Development and Real Estate, is a 1 billion pound project stretching over 32.4 hectares known as Green Square. Around 45 percent of this scheme is already built, and Sabbour has said that this rate is expected to increase to 70 percent by the end of the year. The site contains 1,027 units – 75 percent of which have already been brought to market.
In total, Sabbour said that Al Ahly aims to pump around 3 billion Egyptian pounds into work on both its new projects and completing ongoing projects this year.
The company owns a land portfolio of 5 million square meters, and aims to increase this to 6 million square meters by the middle of next year, Sabbour said.
He said that the areas of keenest interest are the New Administrative Capital and Sheikh Zayed City, alongside New Al Alamain, Ain Sukhna and the Upper Egypt governorates.
The company is also implementing its City of Odyssia project in partnership with El Mostakbal for Development – a site with an area 242.8 hectares, which has been designed by US architects Gensler and is being project managed by Hill International.
City of Odyssia is a mixed-use residential complex set to contain Egypt’s largest multipurpose hall which will be used to showcase arts and cultural events, as well as a 50-acre central business district. The site will contain a mix of different house types set around parkland, starting from 130 square metre apartments through to duplexes, townhouses and a number of villas. The total cost of the project, including the land, is around 25 billion pounds, according to Sabbour, but the initial central district will cost around 3.5-4 billion pounds, he added.
The company also owns several residential tourism projects outside Cairo in the North Coast area. One of these is a 2.8 billion pounds project known as Amwaj being built on a 147 hectare site, where 700 million pounds of property has been sold in three phases, with a fourth now underway.
Finally, the company is still developing plans for its Gaia beach resort on the northern coast with developer Dar Global. The 119.7 hectare site is being developed at a cost of 5 billion pounds, and work is due to start on site by the first quarter of next year, Sabbour said.
Al Ahly Real Estate Development was established in 1994 by chairman Hussein Sabbour. The Sabbour family retains a 60 percent stake in the company, while National Bank of Egypt owns the remaining 40 percent.
American Chamber of Commerce in Egypt - Business Information Center 12 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Al-Ghurair Group of the UAE, along with a number of other UAE investors, has said that it will pump $100 million in a project by the Canal Sugar Company to establish Mar 17, 2019 an agricultural and industrial beet sugar project in western Minya, Upper Egypt, with a total investment of $1 billion. According to feasibility studies, the shares of the non-Egyptian partners in the company will reach $210 million.
In a statement on Thursday, Investment and International Cooperation Minister Sahar Nasr asserted that her ministry is continuously following up all the current investment projects and encouraging more foreign direct investments in the Egyptian market.
Nasr said that this project is an unprecedented step in the field of industrial agricultural investment as it will contribute to bridging the gap between sugar production and consumption in Egypt.
She also said that 180,000 feddans will be used in western Minya to cultivate sugar beet, adding that the entire harvest will be used to operate the Minya-based sugar factory, which will be the world's biggest in producing sugar from beet.
The project will contribute to covering 75 percent of the local market's supply with 1 million tonnes of sugar annually. Improving gold prices on the world markets driven Sentamin Egypt to increase its production targets for 2019 in Egypt to reach 550,000 ounces up from 472,400 in Jan 10, 2019 2018 marking almost 16 % increase . That was announced by Mr. Shadi El Rajhy, Sentamin audit manager, revealing that gold reserves of the Sokkary mine are now estimated at 15.5 million ounces, deemed one of the largest mines world wide. He further revealed that payments effected to the Egyptian treasury during 2018 totaled 97.4 million including payments on account profits & royalties.
American Chamber of Commerce in Egypt - Business Information Center 13 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Prime Minister Moustafa Madbouly said that his country is looking forward to benefiting from Germany’s experience in waste recycling as Germany is one of the Jan 13, 2019 leading countries in the world in this field.
His statement came during a meeting on Friday with the Vice President of the Local Parliament of the State of Brandenburg Dieter Dombrowski, Managing Director of the Brandenburg Economic Development Corporation (WFBB) Sebastian Saule, and the head of the RKD waste recycling company Florian Duhr.
Madbouly added that the Egyptian government attaches great importance to the establishment of an integrated system for the recycling of garbage and solid waste treatment, in view of the economic and environmental benefits expected as a result of the establishment of this system, both in terms of the economic return of recycling products or in the safe disposal of solid waste in a healthy and safe manner that doesn’t harm the environment.
Duhr presented elements of the study conducted by the company on the waste management system in Egypt, which includes the volume of solid waste produced annually in Egypt, the current system of garbage collection, and mechanisms of separating household waste as an important point for the success of the system.
He stressed that the company is interested in entering the Egyptian market and cooperating with the Egyptian government in this field, especially as the success of the system at the beginning requires government investment support.
Duhr suggested entering into a partnership with the Egyptian government through a joint venture. Madbouly also held a meeting on Friday with representatives from several German companies working in waste recycling, within the presence of Egyptian Ambassador to Berlin Badr Abdel-Ati.
The meeting included an explanation from the head of the BSR, which is responsible for collection and recycling of waste in the Berlin region.
The Prime Minister praised the model provided by the company as this model carries many similarities with what is needed in the major Egyptian cities, explaining that the government will seek to adopt three or four different models to suit the requirements and conditions for different cities and governorates in Egypt.
Madbouly listened to a detailed presentation by officials from an alliance of 3 companies working in the fields of hazardous waste, waste recycling, waste dumps and power generation from waste. The coalition officials expressed their enthusiasm for investment in Egypt’s garbage recycling field.
Madbouly also asked the embassy in Berlin to arrange a meeting between BSR representatives and the tripartite alliance with Egypt’s ministers of Military Production, Environment, and Local Development during their next visit to Germany within the upcoming 10 days to discuss the technical details of the proposed cooperation proposals, to discover which is the most suitable to apply in Egypt.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s JW Marriott Hotel launched its roof-top solar power station on Saturday, a statement by the United Nations Information Centre in Cairo said. Jan 20, 2019
The solar energy plant has a capacity of 150 KW and was established through technical and financial support from the UNDP-GEF Grid Connected Small Scale Photovoltaic System Project, which is implemented by the Industrial Modernization Center.
The objective of the project is to support expansion of roof-top solar energy systems in residential, commercial and industrial buildings and develop the small-sale renewable energy technology market in Egypt. The launch was marked by a ceremony attended by Minister of Electricity and Renewable Energy Mohamed Shaker, Minister of Tourism Rania Al-Mashat, Minister of Environment Yasmin Fouad, Executive Director of the Industrial Modernization Center Ahmed Taha, and UNDP Resident Representative Randa Aboul-Hosn. According to the statement, Aboul-Hosn said the project supports the implementation of the country’s sustainable development strategy and capitalises on Egypt’s abundant solar energy.
The solar station is the first solar energy station that the UNDP-GEF project has implemented at a hotel in Cairo.
It is hoped it will help encourage the hotel sector in Egypt to establish similar stations, according to the statement.
Property developer firm Beta Egypt for Urban Development plans to invest 1.5 billion Egyptian pounds ($85.3 million) in two projects in Eastern and Western Cairo within Feb 19, 2019 2019, announced its chairman Alaa Fikry on Monday.
” We target 1.2 billion pounds in sales from the two projects this year,” Fikry further said.
Beta Egypt is currently completing one of these flagships in Sixth of October City, while the other project is being implemented in Mostakbal City, New Cairo, he added.
Moverover, Beta Egypt launched the first phase of its flagship Beta Green in New Cairo over 48.7 feddans in El Mostakbal City during 2017, with investments exceeding 5 billion pounds.
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Economy - Non Tenders Section Type Description Date Published Business News On Wednesday, during MWC Barcelona 2019, Microsoft Corp. and Telecom Egypt announced their collaboration to extend Microsoft’s cloud network to Egypt. Telecom Feb 28, 2019 Egypt will provide low-latency connectivity into and across Egypt to help enhance performance and increase reliability for customers of Microsoft services. The collaboration will increase Microsoft’s reach to the large Egyptian market in addition to improving connectivity across North Africa and the Middle East.
Microsoft’s global network is one of the largest and most innovative in the world. It connects Microsoft’s cloud infrastructure of more than 100 datacenters, 135 edge node locations, and more than 100,000 miles of fiber and undersea cable systems to deliver Microsoft services to customers. The new point of presence in Egypt will benefit from a direct connection to Microsoft’s global infrastructure to enhance the delivery of numerous services for customers. Microsoft’s network investment will increase capacity and use the latest in network optimization for the delivery of Microsoft services in Egypt.
Committing on the announcement, Dr. Amr Talaat, Minister of Communications and Information Technology of Egypt said, “Egypt is moving forward to become a global digital path in the light of its unique characteristics, especially its geographical location overlooking the red and Mediterranean seas. The Ministry is committed to the development of the telecom and information technology industry in Egypt, and appreciates partnerships that empower local institutions and drive business development.”
Yousef Khalidi, corporate vice president, Azure Networking, Microsoft said, “Through our collaboration with Telecom Egypt, we are extending Microsoft’s global network in Egypt and improving connectivity across North Africa and the Middle East. We are continuously investing to increase the size, speed, reliability and intelligence of Microsoft’s global network to help enable the digital transformation of organizations and enterprises locally and abroad.”
Telecom Egypt’s global network was built over the years through investments in consortiums and private international submarine cable systems. Its reach and position as an international hub with tens of terabits per second lit capacity makes it the partner of choice for content providers. Egypt’s distinctive geographic location on the Red and Mediterranean seas has enabled Telecom Egypt to connect more than 11 cable systems from the east and 13 from the west linked with the Red-Med Corridor consisting of 7 diversified highly reliable routes across Egypt.
“We are pleased to partner with Microsoft as it represents one of the first steps toward our strategic digital transformation plan,” said Adel Hamed, chief executive officer, Telecom Egypt. “Telecom Egypt’s geographical position and its digital infrastructure will enable major cloud providers such as Microsoft to enhance their reach to consumers and enterprises in Egypt as well as reach other markets”
Khaled Abdel Kader, general manager, Microsoft Egypt said: “Microsoft is committed to providing world-class cloud services to enable and accelerate the digital transformation of organizations, businesses and people in Egypt. Our collaboration with Telecom Egypt and Microsoft’s investment in the country will further empower Egypt to achieve more through Microsoft services.”
The new enhanced network presence in Egypt will connect via Microsoft’s global network to transatlantic and trans-Arabian paths, which will improve connectivity across North Africa and the Middle East, including enhancing connectivity to the new Microsoft cloud regions in development in South Africa and the United Arab Emirates.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Housing Minister Assem al-Gazzar said works started on installing the reinforced concrete for the foundations of administrative tower C02, or the ‘Iconic Tower’, Feb 24, 2019 in the New Administrative Capital’s Central Business District, set to be the tallest tower in Africa.
The concrete foundations of the skyscraper are currently at 50 meters high, Gazzar said in a press statement on Friday. Construction of the rest of the tower’s foundation, over 340 meters tall, is expected to continue for around 3 days.
He added that construction companies operating in the New Administrative Capital will work day and night to complete this immense national project.
The Iconic Tower is the first tower to be started in the Central Business District, Gazzar said, explaining that the Central Business District includes 20 towers of various uses with estimated investments of about $3 billion.
The Central Business District is being implemented in cooperation between the Ministry of Housing, represented by the New Urban Communities Authority and the China State Construction Engineering Corporation (CSCEC), one of the largest construction companies in the world.
Egypt’s government is racing to complete construction of the New Administrative Capital in record time and wrap up ongoing projects. President Abdel Fattah al-Sisi announced in July that 2020 would see the inauguration of the New Administrative Capital and other projects and cities.
The new capital will be located between Cairo and the Suez Canal region, boasting its own airport, and will include 490 square kilometres of available land for urban development.
The housing ministry has said that the city is set to be a 270-square-mile hub, with 21 residential districts to accommodate up to five million people. Egypt's Suez Canal revenues rose to $468.7 million year-on-year in January from $451.9 million in the same month last year, the Suez Canal Authority said on Monday. Mar 05, 2019
The canal is the fastest shipping route between Europe and Asia and one of the government's main sources of foreign currency. Egypt’s M2 money supply was up 14.04 percent year-on-year in November, data from the central bank showed on Monday. Jan 03, 2019
M2 was up by 15.4 percent in October.
The money supply stood at 3.58 trillion Egyptian pounds ($200 billion) at end-November Data of the International Tourist Organizations & the UN showing the growth of tourists numbers in Egypt increased from about 9 million in 2017 to exceed 10.5 million Jan 12, 2019 during the first 11 months of 2018 & to obviously hit the 1the fourth source of 1.5 million tourists by the year end. As such tourism ranks now ranks now as the 4th source of foreign currency earner in the country after Egyptian expatriates transfers with $ 26.4 billion, non petroleum exports with $ 17.1 billion & followed by Suez Canal tolls reaching lately $ 5.7 billion. According to recants statistics Egypt disposes on 1169 hotels comprising 196,923 rooms. Sixth of October for Development and Investment (SODIC) plans to inject EGP 5.15 billion in investments this year, the company’s managing director said. Mar 28, 2019
SODIC aims to direct EGP 3.7 billion to construction projects, along with EGP 1.45 billion for paying installments of land plots and acquiring partnership shares, Maged El-Sherif added on the sidelines of Cityscape Egypt conference on Wednesday.
The Egyptian real estate developer invested EGP 3.19 billion over the course of 2018, including EGP 2.4 billion for construction projects and EGP 791 million for paying installments of land parcels and acquiring partnership shares, the managing director revealed.
Earlier in March, SODIC signed a partnership agreement with the New Urban Communities Authority (NUCA) to establish a full-fledged urban project over 500 acres in Sheikh Zayed city.
For the full-year 2018, SODIC’s profits amounted to EGP 450.9 million, compared to EGP 598.6 million in 2017, including minority shareholders’ rights.
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Economy - Non Tenders Section Type Description Date Published Business News US investments in Egypt totaled some $21.8 billion by the end of 2018, the investment minister said. Mar 26, 2019
Some American companies increased their businesses and expanded in Egypt, pumping an additional $1 billion during the fiscal year 2017-2018, Sahar Nasr said in a statement Monday.
In a meeting with US Agency for International Development (USAID) administrator Mark Green, Nasr reviewed cooperation with the agency in Africa in light of Egypt's presidency of the African Union in 2019.
This entails support for policies of development funding in order to achieve comprehensive growth in the continent, the minister noted.
Cooperation with the USAID could very well translate into joint regional projects that would contribute to upgrading the infrastructure of and boosting integration among African countries, Nasr said.
Green was pleased with Egypt's socio-economic reform program, believing measures taken have improved the investment climate in the Arab country.
The USAID is seeking a strong economic partnership with Egypt in the coming stage, Green said.
The meeting took up efforts to support the drinking water and waste water sector and expand social protection programs in Egypt. Egypt’s real-estate market is in a slump. People’s purchasing power has declined with a rise in the prices of properties on the back of costlier building materials and land, Mar 05, 2019 and this has led to a series of setbacks in the property market.
After the floatation of the pound in November 2016, the prices of building materials almost doubled, said Afifi Fahmi, a member of the Real Estate Investment Division at the Federation of Egyptian Chambers of Commerce.
He cited the price of a ton of aluminium, which cost LE6,000 before the floatation and is now LE12,000. The overall cost of real-estate projects increased, causing a slowdown in sales that is estimated at 80 per cent, he said.
People who were able to buy property when a ton of steel cost LE1,400 can often no longer afford it when steel costs LE12,000 per ton, Fahmi explained.
Few people can spend more than 40 per cent of their income on real estate, and with the price rises the purchasing power of customers has plummeted, he added.
People who could afford to buy a house for LE100,000 two years ago can often no longer do so after prices have doubled, said Mamdouh Badreddin, head of the Real Estate Investment Division.
Besides the increasing prices and decreasing purchasing power, real-estate developers are also faced with the reluctance of the banks to finance projects.
“If the banks do not want to fund real-estate projects, how can investors complete them amid the hiking prices,” Badreddin asked.
However, he hoped that in two or three years, sales in the real-estate market would regain momentum as salaries and economic growth pick up.
GDP growth in Egypt in the second quarter of the current fiscal year recorded 5.3 per cent, with all sectors seeing positive growth.
The construction sector recorded growth of 8.9 per cent, becoming one of the five achieving the highest rates.
The weakening demand for property has led many real-estate investors to offer buyers attractive payment facilities, such as reduced down payments and longer instalment plans.
Construction costs have increased by 80 per cent since the floatation of the pound, acknowledged Alaa Fekri, a member of the Real Estate Investment Division, adding
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to the investors’ burdens.
In one project, the price per square metre was LE3,400 in the first phase three years ago, but LE9,000 in the last phase last year, he said.
The market slowdown has been particularly acute in luxury property, while demand for smaller units still exists, albeit less than three years ago.
The slowdown began to be felt late last year, Fekri said.
He added that investors were being forced to offer better financial facilities to their clients because they sometimes either have to settle for less profit or shut down altogether.
Fahmi said the Central Bank of Egypt (CBE) should increase the maximum amount that could be borrowed in mortgages for medium-size units, currently LE950,000.
With the rising cost of construction, the price of one square metre has sometimes reached LE10,000, meaning mortgages are limited to units measuring 100 square metres, he said.
Fekri said that increases in the price of land had limited developers’ ability to buy land to initiate new real-estate projects.
The current high interest rates had also encouraged developers to deposit their money in the banks, opting to receive interest payments instead of risking money on housing projects, he added.
A report by local investment bank Pharos Holding anticipated a slower real-estate market this year, despite the longer plans offered by many developers.
The report expected a five per cent increase in prices and a 10 per cent rise in construction costs.
A report by Jones Lang LaSalle Cairo, a US-based real-estate consultancy, said the sector had yielded positive results in 2018, but that resale values had been affected because buyers preferred to invest in units under development to take advantage of easier payment facilities. L.E. 540 million grant endorsed to Egypt from the EU to support Egypt's family planning program. That was announced by Dr.Sahar Nasr, Minister of Economy & Mar 05, 2019 International Cooperation, indicating the development targets to facilitate accessing family planning means on the market particularly for male & female youth in fertility age. AlexBank, a member of Italian bank Intesa Sanpaolo, achieved a net profit of 3.025 billion Egyptian pounds by the end of 2018, compared to 2.7 billion pounds by the Mar 07, 2019 end of 2017, with an increase of 243 million pounds.
The Bank achieved a total profit of 3.9 billion pounds, of which 955 million pounds was income tax expenses at the end of the year.
Moreover, loans increased to 38.2 billion pounds by the end of the previous year, compared to 32.1 billion pounds at the end of 2017, as a result of the bank’s expansion in SME and individual loans.
The bank’s customer deposits amounted to 78.7 billion pounds by the end of 2018, compared to 63.5 billion pounds at the end of 2017, with an increase of 15.2 billion pounds. The cabinet, at its weekly session under Prime Minister Moustafa Madbouli, gave the green light to a draft law presented by Minister of Investment Sahar Nasr amending Mar 07, 2019 the investment law No. 72 for the year 2017.
The amendments are aimed at encouraging businessmen to pump more investments on the Egyptian market.
The new amendments provide more incentives to investors and ease up measures to start a business in Egypt.
She added that also the amendments are seeking to encourage investors doing business in Egypt to expand their activities on the Egyptian market.
Nasr said that her ministry will keep introducing legislative amendments for encouraging investments in the country and coping up with the international economic legislation.
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Economy - Non Tenders Section Type Description Date Published Business News Minister of Investment and International Cooperation Sahar Nasr affirmed that amendments to some provisions of Investment Law No. 72 of 2017 will contribute to Mar 10, 2019 encouraging companies to expand their investment by granting incentives the law was restricting to new projects.
Nasr added that these amendments will have a positive effect, especially as some of the expected expansions are larger in size and value than projects already in place.
The amendments will have a positive impact on domestic and foreign investors in various sectors, which will contribute to increasing the volume of investments to benefit from the incentives, she added.
She stated that under the amendments, companies can increase their capital without obstacles, a step that they used to avoid previously due to high fees, noting that the amendments set LE 10,000 as the maximum fees for changing an expanding company’s system.
Nasr added that the amendments will encourage local and foreign investors in various domains, adding that this will boost production and create more jobs.
The minister explained that the amendments approved by the Cabinet will be applied immediately after being approved by the House of Representatives and ratified by President Abdel Fatah al-Sisi.
The Cabinet, at its weekly session on Wednesday under Prime Minister Moustafa Madbouli, approved a draft law presented by Minister of Investment Sahar Nasr amending investment law No. 72 for the year 2017. The amendments are aimed at encouraging businessmen to pump more investments in the Egyptian market. Minister of Investment and International Cooperation Sahar Nasr met with Argentine Foreign Minister Jorge Faurie on the sidelines of the UN's Second High-Level Mar 24, 2019 Conference on South-South Cooperation (BAPA+40), currently held in Buenos Aires in Argentina.
The two ministers agreed on fostering bilateral cooperation, particularly in economic fields, as well as means of boosting mutual investments and joint projects, the Ministry of Investment and International Cooperation said in a statement Friday.
They also probed ways of benefiting from the free trade agreement signed by Egypt and South American trade bloc Mercosur to increase the volume of trade exchange.
The agenda of the meeting also included bolstering bilateral cooperation in the fields of agriculture and livestock, in addition to Argentine’s cooperation with African states in lights of trilateral cooperation and Egypt’s chairmanship of the African Union. The Central Bank of Egypt decided on Thursday to maintain the overnight interest rate on deposits and loans at 15.75, 16.25 and 16.75 respectively. Mar 31, 2019
The decision was made by the CBE Monetary Policy Committee, which headed by the CBE governor Tarek Amer.
The credit and discount rate was also kept unchanged at 16.25 percent.
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Economy - Non Tenders Section Type Description Date Published Business News Total public and private investments in Egypt reached EGP 721.1 billion in the FY 2017/18, compared to LE 514.3 billion in the FY 2016/17, said the cabinet's media Mar 26, 2019 center.
In an infographic published in its Facebook page, the center pointed to a rise in foreign direct investment inflows to Egypt by 84.7 percent to hit $7.72 billion in the FY 2017/18, against $4.18 billion in the FY 2013/14.
Around 19,836 companies have been established in the FY 2017/18, versus 15,200 ones in the FY 2016/17, the center added.
As for investment zones in the country, the center indicated five investment areas have been up and running in Giza and Sharqia governorates, with total investments of LE 11 billion. These investment zones house 259 projects employing 59,000 workers, it said.
Around 12 new investment areas are being built in the governorates of Cairo, Qalyubia, Sharqia, Alexandria, Faiyum, Giza, Dakahlia and Damietta, the center said.
These new areas will house projects in the fields of logistics, nanotechnology, biotechnology and small and medium-sized enterprises, with total investments to the tune of LE 78 billion, the center noted. Bank Audi SAE has begun due diligence on buying National Bank of Greece’s branches in Egypt, a banker involved in the process said. Feb 21, 2019
The due diligence will be completed by the end of February, the banker said.
The website of National Bank of Greece’s Egyptian unit lists 18 branches in Cairo and elsewhere in the country.
The banks could not immediately be reached for comment.
“The sale of NBG’s Egypt operations is part of the bank’s restructuring plan. There is an ongoing process, Bank Audi is looking at it,” another banker close to the procedure told Reuters in Athens.
Bank Audi entered the Egyptian retail banking market with the purchase in 2006 of the three branches of Cairo Far East Bank SAE. It has since expanded its network to 46 branches, according to its website.
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Economy - Non Tenders Section Type Description Date Published Business News The last fiscal year witnessed the implementation of as many as 326,263 housing units with a total investment of over LE 106.8 billion, according to Egypt's official Mar 14, 2019 statistic agency CAPMAS.
The government and the private sector have both contributed to establishing the housing units mentioned, as the private sector could alone provide 221,187 units with total investment of over LE 77.3 billion, according to the CAPMAS report.
The rest of the housing units (105,076 units) have been established by the government with total investments of about LE 29.5 billion.
According to CAPMAS, the housing units implemented vary from low cost housing units to luxurious ones.
The Cabinet handed the Parliament a 140-page semi-annual report on the performance of Moustafa Madbouli's government during the first six months of its mandate.
As per development projects, the report read that about 1,133 projects with investment cost of LE 311 billion were completed in 20 sectors, including 311 projects in education and health sectors with investment of LE 2.3 billion, and 310 projects in local development with cost of LE 690 million. Also, about LE 22.8 billion were invested in 160 housing projects.
Asem al-Gazzar, the former housing minister's deputy, was sworn in on February 13 before President Abdel Fatah al-Sisi as the new housing minister, succeeding Mostafa Madbouli, who has served in the post for five years in three consecutive cabinets.
The president has met with Madbouli and Gazzar, according to presidential spokesman Bassam Radi, where Sisi directed Gazzar to exert utmost efforts to finish the ongoing projects, including developing unsafe areas, on time.
Sisi also urged the continuous development of infrastructure projects and the provision of periodical maintenance for these projects, including sanitation projects, Radi added. The Central Bank of Egypt (CBE) will issue treasury bills (T-bills) worth EGP 18 billion on Thursday on behalf of the Ministry of Finance (MOF). Feb 21, 2019
The issue will be used to finance the budget deficit, the CBE said.
The first tranche of T-bills will be offered through 182-day notes at EGP 8.75 billion, while the second offering will be through 357-day notes at EGP 9.25 billion, according to the CBE’s official website.
Egypt’s debt instruments, especially T-bills, are attractive to foreign investors owing to their high yield. State-run banks are the largest holders of the government’s debt instruments.
The MoF plans to issue EGP 146 billion in debt instruments in February 2019, coinciding with the recent drop in yields on T-bills and T-bonds.
The North African state aims to slash debt-to-gross domestic product (GDP) by 92% this year.
The MOF previously stated it aims to finance the general budget deficit of EGP 511.2 billion in fiscal year 2018/2019.
Egypt aims to issue EGP 409.6 billion T-bills and EGP 101.6 billion bonds in FY18/19. Egypt’s annual urban consumer price inflation decreased to 12.0 percent in December from 15.7 pct in November, the official statistics agency CAPMAS said on Jan 10, 2019 Thursday.
Inflation has cooled steadily in recent months after an increase in fuel, electricity and transportation prices earlier this year had sent the rate up to a high of 17.7 percent in October.
Egypt has implemented a series of tough austerity measures to help meet the terms of a $12 billion IMF loan programme it signed in late 2016
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Economy - Non Tenders Section Type Description Date Published Business News 71 vessels crossed the Suez Canal on January 23, 2019 carrying 5.5 million tons of cargo marking a new historic record over the Canal history. Of the said number 35 Jan 24, 2019 vessels crossed the canal from north with 2.2 million tons & 36 vessels crossed the Canal from south with 3.3 million tons cargo. Figures confirm repeatedly the viability of the project.
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Type Description Date Published Business News International Monetary Fund (IMF) praised Egypt’s economic indicators after it completed its fourth review of Egypt’s economic reform program on Feb. 4. Feb 07, 2019
The review allowed Egypt to receive its fifth tranche of a $12 billion loan, raising its total endorsement to around $10 billion.
First Deputy Managing Director and Acting Chair of IMF David Lipton said that Egypt’s macroeconomic outlook is still favorable, supported by strong policy implementation. He also saw that the robust growth and narrowing of the current account deficit reflect a rebound in tourism and strong remittances, while unemployment has declined to its lowest level since 2011.
“The public-debt-to-GDP ratio declined markedly last year and is projected to decline further over the medium term due to the authorities’ fiscal consolidation efforts and high nominal GDP growth,” Lipton stated.
According to Lipton, Egypt has successfully weathered recent capital outflows, but it needs to implement consistent policy to further strengthen policy buffers by containing inflation, enhancing exchange rate flexibility, and reducing public debt.
Minister of Finance Mohamed Ma’ it stated Sunday that the ministry has succeeded in reducing the debt ratio of budget instruments (domestic and foreign) to domestic product to reach 97 percent of GDP in June 2018 instead of 108 percent of GDP in June 2017 and 103 percent in June 2016.
Lipton attributed this need to the new challenges posed by the external environment as global financial conditions have tightened.
Lipton referred to the state’s monetary policy which aims to achieve a single-digit inflation rate on the medium term. He endorsed the raise in the headline inflation recently to temporary increases in food and energy prices, “but a restrictive monetary policy stance has helped to reverse the increase and keep core inflation well anchored.”
The Central Agency for Public Mobilization and Statistics (CAPMAS) announced earlier that the annual inflation rate declined to 11.1 percent in December 2018, compared to 22.3 percent in December 2017.
"The authorities have taken important steps to deepen the foreign exchange market and allow greater exchange rate flexibility ; these steps include eliminating the repatriation mechanism,” Lipton said.
In November, the Central Bank of Egypt ended working with foreign repatriation mechanism which came in force on Dec. 5. The central bank set up the mechanism in March 2013 to ensure that foreign investors receive foreign exchange when they have a desire to exit domestic securities, both government bonds and treasury bills, or listed equities, to encourage them to return to Egypt.
Egypt’s aim to achieve a primary surplus of 2 percent of GDP during current year appears to be on track, according to Lipton, who stated that the authorities remain committed to reaching cost recovery for most fuel products by mid-2019 and implementing automatic fuel price indexation, which together are critical to encourage more efficient energy use. Combined with revenue enhancing reforms, this will help create fiscal space for high-priority spending on health and education.
Ma’it said that that Egypt achieved an increase in the value of the primary surplus in the public budget before the deduction of the interest of public debt to LE 21 billion in the first half of the current fiscal year 2018/2019, which represents about 0.4 percent, compared to a primary deficit of LE 14 billion (0.3 percent of GDP) during the same period last year.
“The authorities’ structural reform agenda aims to support inclusive growth by addressing long-standing constraints to private sector development,” he stated.
Lipton elaborated that this agenda includes reforms to improve competition policy, public procurement, management of SOEs, and land allocation. “Sustained implementation of these reforms is essential to reduce opportunities for rent seeking and to support strong and inclusive medium-term growth and job creation.”
In November 2016, the Executive Board of the IMF approved a $12 billion loan as a financial assistance for Egypt to support the Egyptian economic reform program.
Upon the board's approval in November, Egypt floated its currency, losing around 50 percent of its value as part of the economic reform program which imposed taxes, including the value-added tax (VAT), and cut energy subsidies, all with the aim of trimming the budget deficit.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s plans to raise production of the Zohr gas field to three billion cubic meters per day this year, Oil Minister Tarek el-Molla during a meeting with general assembly Feb 07, 2019 of Petroshorouk Co. and chairmen of the Italian-based Eni Co. and UAE-based Mubadala Investment Co. said on Tuesday.
El-Molla asked the three firms to abide by the specific schedules of development for the Zohr gas field.
He also clarified that the Egyptian Natural Gas Holding Company (EGAS) has injected Liquefied Natural Gas (LNG) extracted from the Zohr gas field for use in housing.
Meanwhile, Chairman of Petrobel Company Atef Hassan said that Petrobel contributed to increasing production of the Zohr gas field to 2 billion cubic meters daily in September 2018 and added more than 100 million cubic meters through the useful exploitation of the processing stations.
El-Molla had announced in 2018 that the start of an experimental operation regarding the largest and most modern natural gas analysis laboratory in Egypt to carry out analysis of everything produced at the Zohr gas field.
El-Molla said the oil sector is keen to maximize the utilization of new technologies to increase production and complete the works.
He pointed out that the Zohr gas analysis laboratory is the largest and most cutting-edge in Egypt, featuring high-precision equipment that allows engineers, chemists and technicians to accurately take measurements and conduct laboratory experiments that encourage further production.
The Zohr gas field, the largest gas discovery ever made in Egypt and in the Mediterranean Sea, which has more than 30 tcf of gas in place, is located within the offshore Shorouk Block some 190 km north of Port Said. The gas field was discovered in 2015 by Eni.
Egypt has long been known for being a top holiday destination, a fact that has been further supported by articles in CNN Travel, the Independent, The Sun, and the Jan 06, 2019 Vancouver Sun in 2019.
All four news sites have ranked Egypt as a top holiday destination during 2019. On January 4, 2019, CNN Travel published their annual list of top destinations for the year, placing Egypt in Second place, after Christchurch, New Zealand.
Despite the recent terrorist attack, CNN explains, 2019 will be different.
“So what’s different in 2019?” writes CNN.
“Well, while the sand has been settling on deserted classic monuments, Egyptologists have been brushing it gently aside elsewhere to discover a litany of exciting finds, many of which are now being opened to the public,” answers CNN.
As for the safety concerns, CNN writes, “And while safety concerns persist, hundreds of thousands of visitors to the Pyramids of Giza, the Great Sphinx, the Valley of the Kings take place without incident each year. Likewise, Egypt’s main Red Sea resorts are considered safe.”
Positively, CNN expects Egypt to receive many more tourists in the run up to its 2020 opening of its Grand Egyptian Museum.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Oil Minister Tarek el-Molla said on Monday the establishment of a refinery and petrochemical complex in the New Alamein City is currently under study, with Jan 22, 2019 initial estimates of the cost at $8.5 billion, equivalent to 152.4 billion Egyptian pounds.
The minister’s remarks were made during his presidency of the general assembly of the Egyptian Petrochemicals Holding Company (ECHEM), held to approve its draft budget for the financial year 2019/2020.
According to a statement released by the petroleum ministry on Monday, at the assembly the minister explained the expansion of the petrochemicals project to deal with the increasing needs of the market.
He said that the oil sector is currently working on carrying out an integrated plan for the development of the petrochemical industry and creating an atmosphere that encourages more investment in the sector. The chairman of ECHEM, Saad Helal, said the New Alamein complex project aims at producing around 1.5 million tons of specialised petrochemicals and around 1.9 million tons of petrochemical products such as butane gas, kerosene, mazut and diesel.
He said that other expansion projects include Sidi Kerir Petrochemicals Company (SEDPE), with total investments that hit $1.25 billion and a production capacity of 450,000 tons annually.
Other planned projects include Suez Company, the development of the naval quay, facilitation of shipping and storage of MOPCO company with investments of $190 million, Helal added.
Helal also said that ECHEM was committed to applying industrial security standards and environment protection plans along with maintaining its strategy to developing the petrochemical sector and raise its productivity rates. Egypt is expecting to receive the fifth tranche of the International Monetary Fund’s (IMF) $12 billion loan in February, the country’s finance minister Mohamed Maait said Jan 27, 2019 on Saturday.
After the disbursement of the fifth instalment of the loan, which is the penultimate, Egypt would have received $10 billion, Maait revealed, according to Youm7.
The International Monetary Fund’s (IMF) managing director Christine Lagarde stated that she would recommend the approval of the fourth review of Egypt’s $12 billion loan programme.
Earlier in January, the Central Bank of Egypt’s (CBE) governor Tarek Amer said that a $2 billion postponed instalment of the IMF loan was expected to be received “late January or very early February, at the latest”. Foreign currency reserves by the end of February 2019 reached $b 44.06 billion up from $ b 42.6 billion a month ago. A banking source said the reserves as such covers Mar 05, 2019 almost 8 months commodity imports.
American Chamber of Commerce in Egypt - Business Information Center 26 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News About 2.646 billion Egyptian pounds have been allocated for small and medium-sized projects, according to sustainable development indicators of the first half of FY Mar 17, 2019 2018-2019.
Planning Minister Hala el Saeid said 211,000 youth benefited from loans that helped them implement their projects.
Youth are a top priority, the minister reiterated, stressing they are a key factor that helps achieve sustainable development goals. Egypt is a young country, with the 15-to-40 age group making up 41 percent of the population, Saeid made it clear.
She said her Ministry is keen on involving the youth in upgrading the planning system. ndeed the youth played a pivotal role in outlining Egypt’s 2030 vision, said a proud Saeid.
A report by the Planning Ministry stated that 39,000 jobs were secured through the national employment bulletin, and 181,000 youth got jobs through employment offices.
Also, 16,000 direct and indirect jobs have been created in infrastructure projects.
The report also said that loans and grants worth about 1.881 billion dollars were allocated for development projects in the country. The investment and international cooperation ministry of Egypt has launched "Investment without Challenges" initiative to become an effective channel for Mar 24, 2019 communication, according to a recent statement.
This initiative aims at collecting feedback from individual investors, in addition to addressing the problems they face.
Egypt’s "Investment without Challenges" initiative is part of a comprehensive system established to ensure timely follow up, as well as accelerating problem-solving for investors, and exerting efforts to facilitate the investment process and eliminating hurdles faced by investors.
The minister has allocated the Hotline 16035 and the email address [email protected] to ensure effective responsiveness and fast communication between the minister and investors.
“Through its resolution mechanisms, MIIC has solved 1569 problems for investors over the past two years, out of the1874 received, of which 43 concerned large companies, in the sectors of industry, tourism, agriculture, trade, real estate development, transportation, mining, health, and food, with investments worth EGP 13 billion. A further 305 problems are being addressed at present, 51 of them before the Investment Dispute Settlement Committee,” according to a press release by the investment ministry of Egypt. Arabian Cement Co. has signed an agreement with Solaris Egypt to build a solar power plant in its plant in Suez, with EGP 100 million investments. Jan 17, 2019
Funded by Qatar National Bank Al Ahli, the solar plant will be the first in Egypt to power a cement plant.
The construction of the project is expected to commence in the second quarter of 2019, Arabian Cement’s CEO Sergio Alcantarilla said.
The projected solar plant will be located on up to 96,000 square meters.
American Chamber of Commerce in Egypt - Business Information Center 27 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The Grand Egyptian Museum (GEM) is expected to be opened in 2020, Egypt’s Minister of Tourism Rania Al Mashat said. Jan 27, 2019
The GEM will be fully-managed by the private sector in line with the government’s plan to enable private companies to manage ancient sites, the minister revealed during an interview with CNN.
“We are thinning different about the tourism sector, which 98% of it led by the private sector, and this is something we are very proud of,” she remarked.
The minister expressed her excitement about the GEM project, adding that it would carry Egypt’s message to the world.
Moreover, Al Mashat maintained that Egypt was keen on achieving the 17 Sustainable Development Goals (SDGs) in collaboration with the private sector. Egyptian Holding Company for Water and Wastewater (HCWW) is in talks with Egypt’s state-owned construction firm, Hassan Allam and the country’s Orascom Feb 10, 2019 Development to execute a bunch of public-private partnership (PPP) drinking water and sanitation projects.
The government is keen on the development of drinking water and sanitation utilities in Upper Egypt in line with Vision 2030, HCWW’s chairman Mamdouh Raslan told Mubasher on Saturday.
“Egypt was cooperating with donors in sanitation projects in villages in 17 governorates, with 40 billion pounds financing portfolio,” Raslan said. Egypt’s chairman of Suez Canal Authority Mohab Mamish said his four-day visit to Russia, set to start on Sunday, aims to end talks on establishing a Russian industrial Feb 17, 2019 zone east of Port Said.
Mamish noted that negotiations with the Russian side over the past period have yielded fruitful results, after a framework agreement was signed in Moscow in May 2018 to establish the zone, according to a SCA statement. The chairman, along with his accompanying delegation, will meet with the Russian minister of industry and trade and his deputy, with the aim of discussing mechanisms of establishing the zone on an area of 5.25 square kilometres, with investments totalling about $7 billion. The support provided by the political leadership of the two countries has had a positive effect on negotiations between the SCA and the Russian side, Mamish said, pointing to Egyptian President Abdel Fattah al-Sisi’s decree ratifying the framework agreement. Minister of Business Sector Hesham Tawfik said that his ministry contemplates launching navigation lines within the framework of its strategy to increase trade exchange Mar 05, 2019 between Egypt and various countries.
The strategy is meant also to promote the Egyptian exports especially vegetables and fruits, he noted.
During his speech at the 4th Investment Forum organized by the Federation of Egyptian Chambers of Commerce (FEDCOC), Tawfik said that his ministry studies resuming the shipping line between Alexandria and Europe via Italy.
During the event held under rubric of “Together to Africa”, Tawfik underlined that his ministry seeks to create investment opportunities via developing its affiliated firms in order to serve their interests.
American Chamber of Commerce in Egypt - Business Information Center 28 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt's Finance Minister Mohamed Maait inspected the new premises of the ministry in the New Administrative Capital on Friday. Mar 10, 2019 Maait confirmed to reporters that the new strategic plan for the Ministry of Finance, which is the part of Egypt’s sustainable development strategy, Egypt’s Vision 2030, has been finalised.
"We will adhere to the objectives and directions of this strategy adopted by the government," said Maait.
The minister said that the strategic plan of the ministry was prepared and formulated by top and mid-level leaders at the ministry.
The aim is to make the Ministry of Finance more effective and efficient through the integration of different sectors of the ministry.
Maait said that the “great improvement” in all economic indicators reflects the strength of the Egyptian economy and its recovery from the effects of the economic crisis the country once faced.
He added that this improvement has been confirmed by the international reports monitoring the performance of the Egyptian economy, which monitored the success of the Egyptian government in implementing its ambitious and comprehensive programme of national economic reform since summer 2016.
This success was reflected with rising confidence in economic indicators, lower inflation rates and unemployment, as well as increasing investments.
The minister was accompanied on his visit by several senior officials at the ministry. Egypt’s President Abdel Fattah al-Sisi held talks on Monday with Chinese Defence Minister Wei Fenghe over military and security issues of common concern, according to Mar 26, 2019 a statement by the Egyptian presidency spokesperson.
During the meeting, Sisi highlighted Egypt’s support for China’s Belt and Road initiative to promote trade and economic cooperation between Asia, Europe, the Middle East, and Africa. Sisi stressed that “this new initiative will support Egypt’s development efforts which aim to attract investment to major national projects in the Suez Canal zone and the establishment of industrial and logistical zones and ports on the Red Sea and the Mediterranean.” The meeting also touched on bilateral cooperation on the security and military levels, the fight against terrorism and joint exercises.
American Chamber of Commerce in Egypt - Business Information Center 29 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt invested around $1.2 billion in Africa during 2018, to hit a total investment in the continent of$10.2 billion, according to Minister of Planning Hala el-Saeed. Mar 26, 2019
Saeed stressed that the cooperation between African countries will maximize integrated benefits from all available resources and possibilities inside the continent through encouraging infrastructure projects to boost intra-trade and mutual investment.
“Investing in Africa will benefit all parties and investors as a return of investment ranging between 30 to 40 percent in communication sector, exceeding 40 percent in generating electricity and 80 percent in roads,” she stated.
She added that achieving objectives of sustainable development on the international level within the continent will provide trade opportunities worth $12 trillion, especially in fields of agriculture, food, health, building cities, generating energy and extracting minerals; that is in addition to creating 380 million job opportunities by 2030.
According to Saeed, the importance of the African Continental Free Trade Area (CFTA) agreement comes from being the biggest trade bloc in terms of the number of countries involved since the establishment of the World Trade Organization (WTO), targeting liberalization of commodities and goods movement within the continent.
The African Continental Free Trade Area (CFTA) agreement aims to ease the trade exchange between the countries that signed it according to a scheduled timeline and not through an immediate activation of the agreement.
The CFTA is considered to be the biggest deal ever signed since the World Trade Organization (WTO) was established as it was signed by 43 countries.
“The United Nations thought that free trade zone will increase intra-trade in Africa to 52 percent by 2022 and pave the road to establish a custom union after four years and an economic group by 2028,” she said, adding that Egypt has already signed this agreement in Kigali.
She also referred that Africa has 21 sovereign funds with assets worth$165 billion, emphasizing the role of these funds in supporting economic development locally and regionally.
American Chamber of Commerce in Egypt - Business Information Center 30 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The growing number of development projects and an improved investment environment has ýencouraged French multinational corporation Schneider Electric to pump Jan 29, 2019 new investments into Egypt, said Luke Remont, executive vice president of ýinternational operations at the company.ý
ý“We are planning to double the production capacity at our factory in Egypt by June 2019,” Remont said today ýduring a press conference in Cairo. ý
Remont also said that the Egyptian market is a strategic one for SE because of its capacity and potential ýto grow faster than any other market in the region, as well as the access it provides to other countries ýthrough free trade agreements.ý
ý“Thanks to the government's national development plan, Egypt is offering many investment ýopportunities in major projects, and SE wishes to scale up its investments in the country,” Remont ýsaid, adding that the main fields of cooperation include renewable energy, smart cities and sea water ýdesalination.
ý“We are manufacturing in Egypt and export to other markets as well,” he said, explaining that SE exports ýto 12 countries in the MENA region through its factory in Egypt.ý
ý“We are going to participate in the development of infrastructure in the new cities being built in Egypt, ýwhich are considered mega projects that cater to the needs of the growing population and a growing ýindustry,” he added.ý
Walid Sheta, Schneider Electric’s regional cluster head of North East Africa and the Levant, said that ýthe local components in the company's upcoming projects will exceed 60 percent, adding that SE ýis working with local partners, integrating its technologies in the electricity market, industry and ýtransportation sectors.ý
He also stressed that SE is eager to increase the volume of its business and investment in Egypt as a ýkey market for countries in the MENA region, especially with the improved economic conditions.
Moreover, Sheta said that Schneider Electric will sign today five memorandum of understanding ýý(MoUs) with the Egyptian Ministry of Social Solidarity to establish five off grid electricity projects (solar ýpanels) in five remote Egyptian villages, with one project to be carried out per year.
SE provides technologies that help save about 30 percent of energy by the industry, which will in turn ýcontribute to lowering carbon emissions and help the environment.
“Energy efficiency is a priority ýwhen we provide our technologies for infrastructure projects,” he added.
SE’s investments in Egypt during the last 32 years, since 1987, amount to approximately 315 million ýeuros. The company has worked with the Egyptian government during that time to offer energy-efficient ýinfrastructure solutions in development projects such as the New Administrative Capital, the New ýAlamein City and the solar park in Benban in Upper Egypt.ý The Egyptian Exchange (EGX) is likely to carry on the upward trend on Tuesday, analysts told Mubasher. Jan 29, 2019
Ayman Fouda, head of capital market committee at the African Economic Council, projected that the benchmark EGX30 index is targeting resistance at 14,005 points, and has support at 13,835 and 13,622 points
Meanwhile, the small- and mid-cap EGX70 index has a short-term resistance at 688 and 695 points, and has support to 677 and 674 points, he added.
For his part, head of technical analysis at Arab Finance Securities Osama Naguib said that the EGX30 is hovering around 14,000 and 14,100 points.
The EGX closed Monday’s trading session in green territory amid high trading volume, which is a positive signal, Naguib indicated.
He expected the EGX30 to continue rising to 14,100 points to target 14,600 and 14,800 points, pointing out that the index has support at 13,600 and 13,450 points.
American Chamber of Commerce in Egypt - Business Information Center 31 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s gross domestic product (GDP) went up by 5.5 percent during the October-December 2018 period from 5.3 percent during the same period in 2017, said Planning Jan 31, 2019 Ministry on Wednesday.
Egypt targets GDP growth up to 5.8 percent within the financial year 2018/2019.
Two government sources earlier said Egypt’s gross domestic product increased by around 5.6 percent during the first half of financial year 2018/2019, compared with 5.2 percent a year earlier. Egypt's GDP growth will accelerate to 6.5 percent in the 2019/2020 fiscal year, compared with 5.3 percent for the 2018/2019 fiscal year ending in June, according to the Jan 17, 2019 country’s minister of finance.
Speaking at a conference organised by Cairo-based investment bank CI Capital, finance minister Mohamed Maaiet said that he expected growth to accelerate as a result of the country’s reform programme, which he said had supported investments and attracted foreign currency flows.
He added that Egypt would receive the next $2 billion tranche of a loan from the International Monetary Fund (IMF) soon.
“The $2 billion loan tranche was scheduled to be disbursed to Egypt by 2018-end, the IMF was negotiating the economic reform details with the Egyptian government that caused (a) small delay, which we expect to end soon,” Maieet said during a speech at CI Capital’s MENA Investor Conference in Cairo on Sunday.
Karim Khadr, managing director and head of brokerage at CI Capital, told Zawya in an interview on the sidelines of the conference that “foreign direct investment remains the main challenge that the Egyptian market faces within 2019” .
Sahar Nasr, Egypt's Minister of Investment and International Cooperation, argued that FDI investors would find a “promising” market, economic stability and an integrated investment map that she said would help to guide private sector investment into the market.
“Indeed, the partnership between the private and public sectors in Egypt helped establish a solar energy station in Aswan, the biggest in the Middle East,” Nasr said.
Egypt’s Minister of Planning, Monitoring and Administrative Reform Hala El-Saeed said during her speech that “Egypt's total public investments have registered 175 billion Egyptian pounds ($9.8 billion) during the first half of 2018/2019 fiscal year, up 12 percent from the same period last year”.
She added that the government had put in place a comprehensive plan aimed at developing the economy. Egypt’s Vision 2030 was launched in 2016 to offer a general framework governing plans and phased work programs in the coming years, the minister said.
CI Capital’s Khedr said that its four-day investor conference, which concludes on Wednesday, has attracted 280 investors from 100 institutions to hear about investment opportunities, who met 76 stakeholders from across the MENA region. Egypt & Germany signing $ 250 million agreement being the second trench of $ 500 loan earlier agreed upon to support Egypt economic reform & to be disbursed over Feb 14, 2019 two stages. That was settled via the KFW - German Bank for Reconstruction. That was announced by Ms. Dr. Sahar Nasr, Minister of Investment & Economic Cooperation indicating that the loan will concentrate on the support of the human aspect of the reform program which in turn has increased the bilateral developmental cooperation with Germany to Euro 2.1 billion Euro. extended by both the KFW & Giges. By the judgment of Qena Economic Court, judgment was issued on the obligatory sale of Nile Cruiser Raa II landing at Eastmar Birth at the East Side of Luxor Birth & Feb 14, 2019 the obligatory auction will be held on March 6, 2019. Bid bond requested is L.E. 500,000 & basic price is L.E. 15,650,000. It is owned by Misr Co. for Nile Cruisers & bears a navigation license valid till 2020 & a tourist license valid till 2019. Bid bond requested for the auction is L.E. 500,000. Auctioneer's advisor is Mr. Karam Nabih Farag.
American Chamber of Commerce in Egypt - Business Information Center 32 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s chairman of Suez Canal Authority Mohab Mamish said his four-day visit to Russia, set to start on Sunday, aims to end talks on establishing a Russian industrial Feb 17, 2019 zone east of Port Said.
Mamish noted that negotiations with the Russian side over the past period have yielded fruitful results, after a framework agreement was signed in Moscow in May 2018 to establish the zone, according to a SCA statement.
The chairman, along with his accompanying delegation, will meet with the Russian minister of industry and trade and his deputy, with the aim of discussing mechanisms of establishing the zone on an area of 5.25 square kilometres, with investments totalling about $7 billion. The Egyptian pound strengthened on Sunday to its highest exchange rate in over two years, boosted by an increase in the flow of foreign funds into the country. Mar 19, 2019
The currency was trading at EGP 17.34 to the dollar on Sunday, up more than three percent from 17.86 on 22 January when it began its latest round of strengthening.
“You’re seeing most of the indicators improving,” said Hany Farahat, senior economist at Egyptian investment bank CI Capital.
“Tourism, exports, substitution of natural gas imports with domestic production, remittances are at a peak, FDI is improving slightly.”
Farahat also said the higher inflows were due in large part to Egypt scrapping a mechanism that guaranteed foreign currency for investors exiting the government securities market.
“Once the repatriation mechanism was abolished, it meant that every single inflow coming into the country reflects directly on interbank liquidity,” he said.
“This, in tandem, should also reflect directly on EGP volatility against the dollar.”
“I think it has come a bit late. If the repatriation mechanism had been removed a year ago, this appreciation would have happened a year ago,” he said.
Since the central bank floated the currency in 2016, economists say it has closely controlled the value of the pound, which was last seen this strong in March 2017.
Allen Sandeep, head of research at Naeem Brokerage, said the higher inflows were also due to increased carry trade appetite for Egyptian treasury securities and improving balance of payments.
“We have now restarted LNG exports,” Sandeep said. “On an annual basis, assuming that we export 1 billion cubic feet (bcf) of gas every day, that adds more than $2 billion in exports per year.”
Egypt, which now exports 1.1 bcf of natural gas per day, became a net exporter in late 2018, a significant turnaround for a country that spent about $3 billion on annual LNG imports as recently as 2016.
American Chamber of Commerce in Egypt - Business Information Center 33 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egyptian Prime Minister Mostafa Madbouly inaugurated the three-day International Petroleum Conference in New Cairo on Monday, saying it is a "great opportunity" for Feb 12, 2019 the government and different sectors to coordinate vis-a-vis the energy sector.
In a speech at the opening ceremony, Madbouly added that the conference will create opportunities which can benefit all parties.
He has also stressed Egypt's capability in maintaining a plan that has vastly helped its economy in the recent period.
The conference is being held under the auspices of President Abdel-Fattah El-Sisi and will see the participation of a number of Arab and African oil ministers.
The third annual conference and exhibition’s slogan is “North Africa and the Mediterranean: Meeting Tomorrow's Energy Needs."
It will feature sessions on energy security, women's health, safety, the environment, finance and investment, with more than 200 speakers, including industry officials and experts, and 1,200 delegates.
The conference will tackle the topics of digital technology in the field of energy and youth empowerment for the first time this year.
Four hundred companies and 13 countries will be participating in the acconpanying exhibition.
American Chamber of Commerce in Egypt - Business Information Center 34 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News British MP Stephen Timms has urged Prime Minister Theresa May to review a ban on flights between the UK and Egypt’s Sharm El-Sheikh during her upcoming visit to Feb 24, 2019 the Red Sea resort city.
The lawmaker, who co-chairs the All Party Parliamentary Group (APPG) for Egypt, said the prime minister should examine the “dramatically tightened up” security measures at the city’s airport.
The UK was among a number of countries that banned direct flights to Sharm El-Sheikh, a popular winter destination for holidaymakers, in the wake of the downing of a Russian passenger jet in October 2015 which killed all 224 people on board.
Egypt has since boosted security procedures at many of its airports.
Germany, which also imposed a ban on flights to the resort city following the plane crash, lifted the restrictions in 2017.
“With other European countries having already lifted the bans that they had imposed, the view of the APPG is that it’s definitely high time to lift the UK flight ban,” Timms told the Press Association.
“I think the prime minster is well informed on the issue.”
“I’m sure there are others involved in taking the decision as well, but I think this probably is in the end something that’s on her desk to decide.”
May will visit Egypt on Sunday to attend a two-day EU-League of Arab States summit.
Egypt had previously expressed frustration over Britain’s continued suspension of flights, with the foreign ministry describing it as “unjustified” during a visit by British Foreign Minister Boris Johnson in 2017.
“It’s done great damage to the Egyptian economy. It’s done damage to Britain’s standing in Egypt,” Timms said
“It’s quite hard to see now – given all the improvements that have taken place – what the justification for it still being there really is.”
Tourism is a key source of foreign currency and a main pillar of the Egyptian economy.
American Chamber of Commerce in Egypt - Business Information Center 35 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egyptian Prime Minister Mostafa Madbouly discussed on Tuesday with Apple CEO Tim Cook the opportunities for the giant tech company to make direct investments in Mar 14, 2019 Egypt, according to a statement by the Ministry of Investment and International Cooperation. Mabouly and Cook met on the sidelines of the Davos World Economic Forum, where the CEO expressed Apple's interest in investing in Egypt, adding that the company is examining the map and possible areas of investment.
Cook added that there are 38,000 people from Egypt working in IOS apps development.
Cook also welcomed cooperation with Egypt in the field of education, saying that he looks forward to meeting with Egyptian officials and sharing with them Apple's experience and successes in the field around the world.
Prime Minister Madbouly said that Egypt has a very ambitious plan to overhaul its education system, which includes providing 750,000 tablets yearly to high school students, explaining that Apple can benefit from this project by bidding to provide the tablets.
Madbouly also said that the Egyptian government looks forward to having Apple invest directly in Egypt, highlighting the popularity of its products in the Egyptian market.
The PM also said that the government had an ambitious plan supported by President Abdel-Fattah El-Sisi to turn Egypt into a hub for electronic industries in the Middle East.
The Egyptian premier also highlighted that Apple can find investment opportunities in the New Administrative Capital, as well as in 14 other new cities being built across the country.
Madbouly also invited Cook to visit Egypt.
Last August, Apple became the first US Company to be valued at $1 trillion; however, the company lost that distinction soon after.
The meeting was attended by Egypt’s investment and international cooperation minister, the finance minister, and the trade and industry minister, as well as Egypt’s permanent envoy to the UN in Geneva Alaa Youssef.
American Chamber of Commerce in Egypt - Business Information Center 36 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Petroleum Minister Tarek el Molla said Thursday that Egypt has the potentials that enables it to be a regional energy hub in the Eastern Mediterranean. Mar 17, 2019
Speaking at a session titled "Eastern Mediterranean Gas Renaissance," which is part of activities of CERAWeek 2019 in the US, the minister said that Egypt has all the necessary infrastructure and facilities to transport natural gas from gas fields discovered in the Eastern Mediterranean region to European markets thanks to its extensive network of pipelines and liquefied natural gas (LNG) plants in Damietta and Idku on the Mediterranean coast.
He further underlined that the maritime border demarcation agreement between Egypt and Cyprus had positively helped in accelerating the discovery and development of gas fields in the Eastern Mediterranean region.
He also stressed the European Union's support for Egypt's tangible steps to be a regional oil and gas hub.
He deemed Egypt's hosting of the first ministerial meeting of the East Mediterranean Gas Forum (EMGF) in January as a strong start to boost the gas market in the region.
On Wednesday, Mulla had a meeting with US Energy Secretary Rick Perry on means of boosting bilateral cooperation in the petroleum and gas fields.
The meeting was held on the sidelines of his participation in "CERAWeek" by IHS Markit that kicked off in downtown Houston, on Monday, March 11.
CERAWeek, the week-long event, focuses on providing meaningful dialogue, aimed at solving the various challenges facing the energy industry?from geopolitics and trade to costs, price volatility, environmental policy, disruptive technologies, inter-fuel competition, and the battle to attract younger workers before they commit to other industries.
The on-going energy transition has created considerable uncertainty for long-term strategy and investment.
The conference opened with a discussion about geopolitical hot spots that are threatening regional stability and could hamper energy development and delivery. Egypt’s Ministry of Communications and Information Technology said on Monday that it will be hosting in Cairo the first Egyptian international tech innovation forum in Mar 07, 2019 mid-April under the name ‘Narrative Disruptors,’ a statement by the ministry read.
Narrative Disruptors will bring a line-up of local and international speakers to discuss boosting performance across different government sectors.
These include Elizabeth Linder, former international communications associate manager at Facebook and founder and executive director of Beautiful Destinations – the largest travel community on social media with over 20 million followers in 180 countries.
“Among the key recommendations of Narrative PR Summit 2018, which we proudly held last October under the auspices of Prime Minister Mostafa Madbouly, was organising a series of forums focused on major industries that can help build a strong national brand and best compose the image the country presents to the world, including in technology, energy and financial inclusion,” said CEO and chairman of CC Plus Lamia Kamel.
VictoryLink’s partnership with CC Plus to co-organise Narrative Disruptors was prompted by the continuous success Narrative PR Summit has made over the past three years.
“We wanted to organise a communications-focused forum that would offer valuable insights, strategies, case studies and in-depth debate on how to empower the communications sector to enhance Egypt’s national brand and improve the country’s international standing,” said Engy El-Sabban, CEO of Victorylink.
American Chamber of Commerce in Egypt - Business Information Center 37 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Travel and tourism in Egypt grew by 16.5% in 2018, much faster than the global average of 3.9%, according to research by the World Travel and Tourism Council Mar 19, 2019 (WTTC). According to The WTTC’s, the country’s efforts in improving security infrastructure paid off, leading to the increase in visits by 16.5% last year, the best since 2010.
The improvements in security infrastructure resulted in attracting tourists and major travel companies back to Egypt’s popular destinations, such as Sharm El-Sheikh, the Ministry of Tourism said in a statement on Monday.
The WTTC’s 2018 research, which compared Travel & Tourism sectors in 185 countries, also showed that travel and tourism are responsible for 9.5% of all Egypt’s employment, providing 2.5 million jobs. The travel and tourism sector also contributed 11.9% of Egypt’s GDP in 2018 and is expected to grow a further 5.4% in 2019.
The statement quoted Egypt’s Minister for Tourism Rania Al-Mashat as saying at a WTTC panel in November 2018 that she hopes to create “at least one opportunity for one person in every household in the country.”
It also quoted Gloria Guevara, the WTTC president and chief executive, who had said: “We’re delighted to see the strong recovery of the Egyptian travel sector – a sector crucial to national economic growth and a key provider of jobs."
“WTTC also acknowledges Dr Rania Al-Mashat’s prioritization of the sector and strategy to use the sector to enrich citizens and spread the benefits of travel and tourism across the country," Guevara added. Egypt's Minister of Transport Kamel El-Wazir held a meeting on Thursday with a delegation from Russian-Hungarian consortium Transmashholding-Hungary Kft to Mar 31, 2019 discuss the measures taken to put into effect a contract to supply Egypt with 1,300 new passenger railcars. The meeting was attended by Russian ambassador in Cairo Sergei Kirpichenko.
El-Wazir said the railway deal is the largest in Egyptian history, noting that it will constitute a giant leap for the sector.
The two sides discussed the financial terms of the contract, which is being implemented in cooperation with the the Ministry of Investment and International Cooperation. The Central Agency for Public Mobilization and Statistics (CAPMAS) announced on Sunday that Egyptian cotton exports in the period between September and November Feb 26, 2019 2018 reached 128,300 metric quintals compared to the same period last year, representing around 45.1 percent increase.
The Agency said in its quarterly newsletter for the first quarter of the 2018-2019 agricultural year that total consumption rates of domestic cotton reached 25,700 metric quintals, compared to 5,440 metric quintals during the same period of the previous year, recording a decrease of 42.2 percent due to the production suspension by some textile factories. Executive Director of the Cement Division at the Federation of Egyptian Industries (FEI) Noha Bakr on Monday said Egypt’s cement production stands for 83 million tons Mar 19, 2019 a year.
Bakr made her statements at a two-day Coaltrans conference, which kicked off on Monday in Cairo in the presence of cement producers from all over the world.
She said that Egypt has 48 production lines nationwide, noting that the country has depended on coal-based cement production after the industry suffered lack of natural gas supply between 2011 and 2014.
Bakr added that the cement sector provides jobs for some 50,000 of direct labor and 200,000 of indirect labor working in 20 foreign investment companies, which constitute 52% of the sector.
American Chamber of Commerce in Egypt - Business Information Center 38 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Suez Industrial Development Company (SIDC), an affiliate to Orascom Construction, is developing an industrial park over 8.7 million square metres at the Suez Mar 24, 2019 Canal Economic Zone (SCZone) in Ain Sokhna.
The industrial park is with investments worth around 65 billion Egyptian pounds ($3.8 billion), said SIDC’s chairman Amr El Batrik on Saturday. SIDC is one of the main developers at SCZone.
“The utility owner and developer (SIDC) has baan able to attract several foreign and local investors of around 60 industrial companies,” El Batrik added. Egypt plans to post investments totalling 1.17 trillion Egyptian pounds ($67.54 billion) within the financial year 2019/2020, marking a six percent increase. Mar 31, 2019 During the first nine months of financial year 2018/2019, North Africa countries’ investments rose 19 percent to 310 billion pounds, said Egyptian Planning Minister Hala al-Saeed on Saturday.
Al-Saeed added that the Egyptian government is looking to cut unemployment rate to 9.1 percent within the the upcoming financial year and provide 100,000 jobs opportunities per year. Total loans provided to bank customers, excluding the Central Bank of Egypt, increased by EGP 44 billion in December to stand at EGP 1.802 trillion compared to EGP Mar 03, 2019 1.758 trillion in November, according to the latest report released by the CBE
The report said that governmental loans reached EGP 570.5 billion, including EGP 343 billion provided in foreign currency and EGP 227.4 billion in local currency.
Non-governmental loans rose to EGP 1.231 trillion. EGP 148.9 billion of the non-governmental loans went to the agriculture sector, EGP 268.4 billion to the industrial sector; whereas the commercial sector received EGP 113.8 billion, the report noted.
CBE also announced an increase in bank deposits by around EGP 57 billion by the end of December to reach EGP 3.818 trillion compared to EGP 3.761 trillion in November.
The total governmental deposits at banks reached EGP 613.6 billion, including 498.2 billion in local currency and around 115 billion in foreign currency, the CBE said in a report, a copy of which was obtained by MENA.
The total non-governmental deposits at banks until December hit EGP 3.204 trillion compared to EGP 3.159 trillion in November, added the CBE in its report.
The total value of non-governmental deposits in foreign currency reached EGP 751 billion, of which the public business sector had EGP 40.7 billion, the private sector had about EGP one billion and the family sector around EGP 503.5 billion, the report noted.
American Chamber of Commerce in Egypt - Business Information Center 39 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News National Bank of Egypt, the country’s largest bank by assets, is planning to create around 20 standalone digital banks by 2020, after obtaining necessary approvals from Jan 06, 2019 the central bank.
The bank will start launching five digital branches in Greater Cairo area by next January, a senior source in the NBE told Amwal Al Ghad on Thursday.
Egyptian central bank sub governor Ayman Hussein said earlier this week at Arab Digital Economy Conference in Abu Dhabi that four Egyptian banks were applying for digital banking licence, without disclosing their names. According to the Temenos report, Digital Banking, “A digital bank offers customers contextualized, seamless experiences that transform the customer journey. And becoming a digital bank means delivering a compelling and relevant customer experience through an open, integrated and flexible architecture.”
Banks worldwide had been following physical branch network (brick and mortar) method for increasing customer base and branch network. This method involves more expenses by way of rent, maintenance expenses electricity charges, etc. Even after much progress in digital banking, cost to income ratio of many of the banks are in the range of 45-55 percent.
Digital banking offers increasingly tech-savvy consumers quick and easy digital money management tools, cut-price fees and a marketplace where users can shop around for products from various providers.
Ahmed Elsewedy, chairperson of El Sewedy Electric (SWDY), said that his company plans to launch seawater desalination projects in Egypt. The company has allocated Jan 22, 2019 some of its investments to implement the projects, according to Elsewedy, however, he did not reveal the expected cost of the projects.
Elsewedy noted that his company is currently implementing cables and transmission projects to supply electricity to the New Administrative Capital for over EGP 3bn. The company is committed to completing the work agreed upon on time, he added.
He pointed out that the company has investments in Saudi Arabia, the UAE, and Kuwait. The company hopes to enter the market of Oman and is currently considering injecting new investments in Africa and the Gulf region.
“The company is interested in entering new markets like Kenya, Tanzania, and Uganda, with the aim of expanding into Africa to increase investments and open new markets for Egyptian exports,” Elsewedy added.
He noted that the African Export-Import Bank (Afreximbank) is cooperating with El Sewedy Electric to provide the necessary funding for establishing new electricity cables, transmission, and meters projects.
El Sewedy Electric has signed contracts with the Arab Contractors to design and establish a dam and a hydroelectric plant on the Rufiji River in Tanzania.
He stressed that President Abdel Fattah Al-Sisi paid great attention to the project, hoping that Egypt can become a leading country in building dams in Africa.
American Chamber of Commerce in Egypt - Business Information Center 40 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt is set to host the Banking Technology North Africa Week conference on 28-29 January to demonstrate innovative and cost-effective digital banking services that Jan 22, 2019 aim to expand access to those currently unbanked while keeping increasingly demanding consumers.
According to the event’s brochure, the two-day conference, which will be held in Cairo’s Nile Ritz Carlton, is set to feature keynotes by a number of influential speakers from the country’s banking sector.
The first day will see a session titled ‘Inclusion, Digital Transformation & Payments Day,’ which will witness a number of speeches by the heads of leading banks in Egypt over the future of banks in the country and the road to a cashless society.
‘Data, Analytics, Cyber and Information Security Day’ will be the main topic on the second day of the conference, focusing on achieving business resilience and continuity through an effective risk management framework.
The panels will also include discussions on preparing for new risks and ensuring security in the digital age and protecting consumers through fighting cybercrime and identity fraud to ensure customer trust and loyalty, among other topics.
The Banking Tech North Africa Awards ceremony will be held on the end of the second day to recognise the most innovative and creative leaders that stand out from the crowd in the sector. Egypt's non-oil private-sector activity shrank for a fourth month in December, but the rate of contraction slowed from November, the Purchasing Managers' Index (PMI) Jan 10, 2019 survey showed on Thursday.
The Emirates NBD Egypt PMI rose to 49.6 from 49.2, remaining below the 50 mark that separates growth from contraction. Private sector activity has expanded in only five months over the last three years.
The contraction was the slowest in the last four months.
Daniel Richards, MENA Economist at Emirates NBD, said that though activity had shrunk, an expansion in new purchasing activity indicated private sector activity may be about to improve.
"There are other factors within the survey data which suggest that the Egyptian economy will begin 2019 in a relative position of strength," he said.
New orders and employment continued to fall, although at a slower pace than in previous months.
The increase in input prices was its slowest in almost six and a half years, according to the PMI data.
Egypt has been implementing tough economic reforms as part of the three-year $12 billion programme agreed with the IMF in November 2016, including the introduction of a value-added tax, cuts to energy subsidies and a steep currency devaluation.
Egypt’s Oil Minister Tarek el-Molla held talks with US Charge d’Affaires Thomas H. Goldberger in Cairo prospects of bilateral cooperation in the next stage in line with Feb 10, 2019 Egyptian national project to be transformed to a regional hub for gas and petroleum trade.
The meeting touched on the activities of US firms working in Egypt in the fields of searching for petroleum and gas, engineering designs and constructions, among others, the Ministry of Petroleum said in a statement Friday.
The two sides also discussed new petroleum projects being carried out in Egypt in the fields of refining and petrochemicals in addition to investment opportunities available for US companies to take part in such projects.
American Chamber of Commerce in Egypt - Business Information Center 41 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Prime Minister Moustafa Madbouly witnessed on Wednesday the signing ceremony of a cooperation protocol between Egyptian Electricity Transmission Company Feb 14, 2019 (EETC) and Lekela Power Company on setting up a 250-megawatt wind power plant under the BOO system in Gulf of Suez region.
The ceremony was attended by Electricity Minister Mohamed Shaker and Investment Minister Sahar Nasr along with British Ambassador in Cairo Geoffrey Adams.
The cooperation protocol was signed by Chairman of the EETC Sabah Mashaly and CEO of Lekela Power Chris Antonopoulos. Shaker said that the costs of the project are estimated at about $325 million, adding that the power plant is expected to contribute to producing about 2 billion kilowatts of energy annually.
The project will be operated in June, 2022, he noted.
Such projects are expected to be among the largest direct foreign investments of the private sector in Egypt’s electricity sector over the past few years, he pointed out. Egypt’s state-run lender Banque du Caire‘s small and medium-sized enterprises (SMEs) portfolio rose 80 percent to 4.1 billion Egyptian pounds ($233.7 million) at the Feb 26, 2019 end of 2018, its chairman Tarek Fayed said on Monday.
Fayed added that SMEs were the backbone of the national economy for achieving growth and providing jobs, which is compatible with the government’s and the Central Bank of Egypt’s (CBE) directions.
Banque du Caire is working on developing new solutions and financing programmes based on the value chain that suits different projects and economic activities that support Egypt’s economy by focusing on the industrial and agricultural sectors, the top official added in a statement.
The chairman further said that Banque Du Caire has participated in the Nilepreneur initiative organised by the Nile University along with several banks and universities to bolster entrepreneurship and SMEs in Egypt.
Banque Du Caire has set up three centres to support entrepreneurs within the framework of the initiative to provide some business development services in the governorates of Beheira, Monufia, and Assiut, he indicated.
American Chamber of Commerce in Egypt - Business Information Center 42 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt's Minister of Investment and International Cooperation Sahar Nasr says business opportunities in Egypt are promising, assuring investors about a friendly climate Jan 15, 2019 that is guaranteed by law and encouraged by incentives.
Addressing a conference on investment in the Middle East and North Africa region Sunday, Nasr talked about economic stability in her country, as well as an integrated investment map that would help the private sector pump even more money into the market.
The conference was organised by CI Capital Holding and was inaugurated by Prime Minister Moustafa Madbouli and attended by 250 Egyptian, Arab and foreign investors.
The government believes the private sector can contribute to achieving comprehensive economic development, Nasr said. She told the gathering that 70 percent of the jobs in Egypt are with the private sector.
According to Nasr, sustainable economic development is the result of effective cooperation between the private and public sectors, which materialised in giant projects in the country.
Indeed, the partnership between the private and public sectors in Egypt helped establish a solar energy station in Aswan, the biggest in the Middle East, the minister stated.
Cairo is acting to implement a comprehensive economic reform programme that includes institutional and legislative amendments meant to create a stable landscape and hone the competitiveness of the Egyptian economy, Nasr said.
She urged investors attending the conference to expand their businesses in Egypt, assuring them that further measures have been taken to protect their money, enhance good governance and end bureaucracy.
Egypt is also seeking to up investment in infrastructure, which plays a key role in attracting businesses and creating new jobs, Nasr said, adding that foreign direct investments have increased in the country.
American Chamber of Commerce in Egypt - Business Information Center 43 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Moody’s Investors Service has maintained its positive outlook on Egypt’s banking sector, buoyed by an improving operating environment. Feb 12, 2019
Banks operating in the North African nation are to continue to have good access to stable, deposit-based funding and hold large liquid asset volumes, especially in local currency, the New York-based rating agency said in a report on Monday.
Moody’s ascribed its positive outlook for the sector to Egypt’s buoyant economy and inter-linkages with the sovereign’s improving credit profile.
Egypt’s real gross domestic product (GDP) growth is expected to reach 5.5% this year and 5.8% in 2020, the statement said, adding that the nation’s banking penetration will deepen, which in return will prop up deposit and loan growth.
“Accelerating growth in Egypt reflects increased public and private-sector investment, higher exports and a recovery in tourism,” Constantinos Kypreos, Senior vice president at Moody’s Investors Service, commented. As for Egypt’s balance sheet growth, he said it is expected to rise by around 15% in 2019, while lenders are projected to maintain rising local currency funding, high liquidity, and strong and stable profitability.
In the same vein, Moody’s said nonperforming loans (NPLs) at Egyptian banks are forecast to remain significantly stable due to robust economic growth.
In September 2018, NPLs at Egypt’s lenders fell to 4.4 percent of total loans.
“Nevertheless, NPL levels remain vulnerable to a future turn in the economic cycle due to large volumes of untested new loans and ongoing security risks. Egyptian banks’ high exposure to government securities,” Moody’s said.
Despite remaining adequate, foreign-currency funding and liquidity are under pressure from global financial tightening as already evident by a fall in banks’ foreign assets, it noted.
ExxonMobil has been awarded exploration rights to the Nile Delta Block 3 (North East El Amriya Offshore Block), following the Egyptian Natural Gas Holding Co. Feb 18, 2019 International bid round. The block is located in the Mediterranean Sea approximately 155 kilometers offshore Egypt. ExxonMobil will operate Block 3 concession area on a 100 percent basis. Building on our successful business and strong partnership in Egypt's growth, we are truly enthusiastic about this new opportunity to expand ExxonMobil's business. This comes on the backdrop of a progressive economic environment demonstrated by the bold reforms and effective implementation of the Ministry of Petroleum's modernization program, said Engineer Hesham Elamroussy, Chairman and Managing Director, ExxonMobil Egypt. The addition of this block reaffirms ExxonMobil's commitment to pursuing high-quality opportunities in Africa, said Pam Darwin, President of ExxonMobil Exploration Africa Limited. ExxonMobil has been part of Egypt's growth for more than 115 years, and we look forward to continuing to play a key role in the development of Egypt's resources through the application of our upstream expertise. We commend Egypt's efforts over recent years to reform the economy, redefine its energy sector and unleash the country's productive capacity. The construction works of the diplomats city in the New Administrative Capital have been assigned to two major local construction companies, a source with knowledge Mar 14, 2019 told Amwal Al Ghad.
These works include implementing the main roads to the New Capital, the source added. The source added that both Orascom and Hassan Allam Sons are taking over the whole construction works of the diplomatic city, which include implementing homes for the for foreign diplomats to be close to the embassies in the New Administrative Capital. Moreover, he said that The new diplomatic city will be affiliated to the ministry of foreign affairs, referring that there are currently negotiations between the ministry and one of the real estate developers to take over the work of launching an integrated residential city for diplomats.
On the other hand, The New Administrative Capital Company has finished the engineering designs of the New embassies district which is built on 1,500 feddans. 50 embassies and diplomatic missions in Egypt have submitted requests to reserve headquarters there so far.
American Chamber of Commerce in Egypt - Business Information Center 44 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly Mar 26, 2019 anticipated initial public offering.
Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp more than a year ago.
The acquisition makes Careem a wholly owned subsidiary of Uber and will keep the Careem brand and app intact, at least initially. Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas are staying on with Careem following the acquisition, the companies said.
However, Careem’s board will be overhauled, with three seats going to Uber representatives and two belonging to Careem. Sheikha, who is Careem’s CEO, and Olsson will have board seats. An Uber spokesman declined to say whom Uber would appoint to the board.
The $3.1 billion cash-and-stock purchase buys out all outside Careem investors, the companies said, and Careem stock will be converted into Uber equity. Careem had raised less than $800 million from investors and as of October had a $2 billion valuation. Its backers include German car maker Daimler AG , Chinese ride-hailing company Didi Chuxing, Japanese internet company Rakuten Inc and Saudi investor Kingdom Holding Company.
The deal is expected to close in the first quarter of 2020, the companies said, meaning it will not be reflected in Uber’s first couple of quarterly earnings releases as a public company, although it will likely be disclosed in a public IPO filing. Uber will kick of its IPO next month and is expected to receive a valuation of at least $100 billion.
The agreement is subject to regulatory approval, including by antitrust officials in the countries where Careem operates, which could prevent the deal from moving forward or compel the companies to modify the terms.
MONTHS OF NEGOTIATIONS The deal is particularly important for Uber, whose ability to be a competitive global ride-hailing player had come into question after it sold its operations in China, Russia and Southeast Asia to local rivals after sustaining heavy losses.
Uber Chief Executive Dara Khosrowshahi in a statement called the deal with Careem “an important moment for Uber.”
Uber has been eager to reach an agreement before the company begins its “roadshow,” when it will meet with public market investors prior to listing shares on the New York Stock Exchange. The deal enables Uber to claim dominance in a growing region for ride-hailing outside of the United States.
Uber operates in more than 70 countries, but faces strong rivals in Latin America and India, and tough regulations in Europe.
Talks between the companies had dragged on since at least last summer, sources told Reuters, although they did not get serious until the end of the year. The companies had for years battled in a competition for drivers and riders that had required discounts and subsidies and pushed prices artificially low.
Careem over the course of last year grew its business rapidly, including adding a delivery service, and went on to nearly double its valuation, pressuring Uber to increase its bidding price.
Toward the end of last year, Careem was entertaining interest from investors for another financing round when Uber moved aggressively to buy the company outright, sources said.
American Chamber of Commerce in Egypt - Business Information Center 45 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Military Production Minister Mohamed al-Assar met on Friday with Bruce Xiao, the international operations’ manager of Chinese company CITIC and his Jan 13, 2019 accompanying delegation to discuss building an industrial complex for the production of solar panels from quartz.
The meeting, held at the ministry’s headquarters within the framework of a memorandum of understanding (MoU) signed with CITIC in June 2016, aims to establish the largest industrial complex for the production of solar panels using Egyptian sand to meet the demands and energy needs of the Middle East and Africa. The memorandum is part of the ministry’s plan to cooperate with international companies to transfer and localize manufacturing technology in various fields, including solar panels. Bruce Xiao noted CITIC’s desire to cooperate with the Ministry of Military Production, where its companies and units have high technological capabilities and trained technical personnel. Five plants with a total capacity of 230 megawatts were established in Benban Solar Park. The first, having a capacity of 50 megawatts, got connected to the grid, while Jan 15, 2019 the rest are still in the experimental phase.
Benban Solar Park is located in Aswan. It is the largest worldwide, housing 40 solar plants with a total capacity of 2,000 megawatts.
Head of the Projects Sector at the Upper Egypt Division of the Egyptian Company for Power Transmission Ahmed Fathy told Egypt Today that the four plants will start operation by the end of January. Fathy added that four transmission networks have been accomplished. The capacity of each is 500 megawatts. Three of them have already been connected to the grid, while the fourth will be connected by the end of January. Fathy affirmed this is the first time in Egypt that transmission networks finish before the power plant.
Benban Solar Park project consists off our phases. The first of which was inaugurated by Egyptian President Abdel Fatah al-Sisi in July 2018.
Still affected by two consecutive world wars in the last century, Japan finally opened its doors to host foreign labor force. That was reported in the media after the Jan 28, 2019 Government has passed a new law tolerating foreign workers to enter the country with a work visa of 5 years duration. The issue of declining population has been facing the country over 20 years. Experts now predict population to now decline to 100 million in 2050 & to 90 million in 2060. an almost quarter An almost quarter page full reportage was published in Al Ahram of 1/28/2019 analyzing the issue from a global and international view yet is worth much deeper analyses from each country affected. Possibly both Germany & Italy, also the Soviet Union will be soon on the queue. Egypt plans to issue foreign-currency bonds in early 2019 to raise $3 to $7 billion, Finance Minister Mohamed Maait said on Wednesday. Jan 31, 2019
The offering will take place in February or March, Maait told Reuters.
Egypt plans to issue a number of dollar-denominated and euro-denominated bonds by the end of this fiscal year in June, the finance ministry said on Monday.
Another offering of green bonds as well as international bonds in an unspecified Asian currency will be offered after that, it said.
JP Morgan, HSBC and Citigroup will manage the dollar-denominated issue, the ministry said.
BNP Paribas, Natixis, Alex Bank and Standard Chartered will manage the euro-denominated issue.
Egypt raised 2 billion euros ($2.29 billion) from its Eurobond sale in April last year.
($1 = 0.8750 euros)
American Chamber of Commerce in Egypt - Business Information Center 46 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt's central bank made a surprise cut to its overnight interest rates on Thursday, citing a strong drop in inflation and an improvement in other macroeconomic Feb 17, 2019 indicators.
The bank lowered its deposit rate to 15.75 percent from 16.75 and its lending rate to 16.75 percent from 17.75, it said in a statement, its first rate cuts since March 2018.
Ten out of 14 economists polled by Reuters said the bank's Monetary Policy Committee (MPC) was unlikely to change its overnight rates, while only four expected it to cut them.
The MPC said data "continued to confirm the moderation of underlying inflationary pressures", leading it to lower rates by 100 basis points.
"This remains consistent with tight real monetary conditions and with achieving the inflation target of 9 percent (plus or minus 3 percentage points) in 2020 Q4 and price stability over the medium term."
Consumer inflation fell to 12.0 percent in December and 12.7 percent in January from 15.7 percent in November, while core inflation edged up to 8.6 percent year in January from 8.3 percent in December.
The MPC said GDP growth had risen slightly to an annual 5.5 percent in last quarter of 2018 and unemployment, at 8.9 percent, had fallen to its lowest since 2010.
"I think it’s a very good move," Hany Farahat, senior economist at Egyptian investment bank CI Capital, said of the rate cut. "More importantly, it predicts further cuts in policy rates throughout 2019, which is going to be very good for the investment environment."
He said net foreign assets picked up in January and foreign inflows into the treasuries market had increased, accompanied by a 1.5 percentage point fall in yields over the last month.
The MPC last cut interest rates by 100 basis points in March and another 100 bps in February 2018.
"All of the economic indicators were welcoming a reversion to normality," said Wael Ziada, head of investment company Zilla Capital. "The high interest rates were not sustainable."
"Macro relief is imminent. Inflation as you continue to restructure will be an accompanying pain, but short lived with spikes related to time of significant events." Egypt has increased current exports of liquefied natural gas (LNG) from Idku export plant to 800 million cubic feet per day (cfpd), the country’s petroleum minister Feb 28, 2019 Tarek al-Mala told Al-Borsa newspaper on Wednesday.
LNG exports of the North African country reached 520 million cfpd in January, compared to 300 million cfpd last year.
Idku’s gas exports are conducted by Malaysia’s Petronas and Netherlands’ Royal Dutch Shell, in addition to two Egyptian state-owned companies.
Egypt is planning to become a regional hub for LNG re-exports.
American Chamber of Commerce in Egypt - Business Information Center 47 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s state-run Administrative Capital for Urban Development (ACUD), the master developer of the New Capital, decided on Sunday that foreign firms will manage and Jan 08, 2019 operate services inside the city.
Chairman of ACUD Ahmed Zaki Abdeen told Egypt Today that the company will sign contracts with Chinese and Dutch companies to operate internal transportation inside the new city and to be responsible for the establishment of private companies specialized in collecting garbage and keeping the city clean.
Abdeen added that the company will also sign contracts with French companies to manage companies operating in the fields of technology, electricity, water and buildings’ maintenance inside the city, noting that the companies will offer tenders to choose the best offers.
“ACUD will be turned into a holding company with subsidiaries operating in different fields, as companies of water, electricity, technology, maintenance, safety, and transportation will be founded,” he stated.
Abdeen also said that the New Capital will also include factories for recycling garbage. According to Abdeen, the goal of establishing these companies is to preserve the independence of the national project, adding that the electricity company will be the first to be responsible for feeding the city with electricity and issuing bills; new plants will be established if necessary.
As per the Water Company, it will be responsible for issuing bills and feeding the city with water, he said, adding that gas, telecom, and transportation firms will be founded.
“To avoid bureaucracy, all established companies will be following ACUD Holding Company as the solo company responsible for managing this independent entity,” Abdeen noted.
The chairman of ACUD said that metro stations will be built inside the city to link all stages of the city together, passing by the government district, the residential district, money, and business district and all other stages of the project.
Abdeen clarified that there will be coordination with these foreign companies to qualify leaders, employees, engineers and technicians from the administrative capital company to prepare a second row capable of leading all the capital’s companies when the foreign companies end their contracts within three or four years.
President Abdel Fatah al-Sisi has laid the first stone of the New Administrative Capital in East Cairo on July, 14. With an area of 170,000 feddans, the new capital will include 20 residential areas expected to accommodate 6.5 million people and a road network of 650km in length.
The new capital will include an international airport and an electric train to link it with the 10th of Ramadan and El-Salam cities. The city will feature 1,250 mosques and churches, a 5,000-seat conference centre, nearly 2,000 schools and colleges, over 600 medical facilities, and a park that is projected to be the world’s largest.
The New Administrative Capital is located in the area between the Cairo-Suez and Cairo-Ain Sokhna roads, east of the regional ring road. This is roughly 60km from the cities of Suez and Ain Sokhna.
American Chamber of Commerce in Egypt - Business Information Center 48 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Major Italian oil company Eni has had overall investments of $13 billion in Egypt since 2015, the CEO of the company Claudio Descalzi told Egypt’s President Abdel- Jan 17, 2019 Fattah El-Sisi in a meeting in Cairo.
In an official statement, Egyptian presidency spokesman Bassam Rady said that Descalzi told El-Sisi about the company’s plan to increase investments in the coming period.
The meeting was attended by Egyptian Minister of Petroleum Tarek El-Molla and intelligence chief Abbas Kamel.
El-Sisi praised Eni’s efforts in contributing to the optimisation of Egypt’s resources in natural gas, praising Egypt’s cooperation and partnership with Italy.
During the meeting, Eni’s CEO said that production from the giant Mediterranean gas field Zohr, which was discovered in 2015, is moving in accordance with the set timeframe.
The mammoth discovery, estimated to hold about 30 trillion cubic feet of gas, has raised interest in gas exploration in Egypt.
In 2018, Egypt said it achieved self-sufficiency in natural gas consumption in September due to the gradual increase in local production and the plan to develop major gas fields in the Mediterranean.
Egypt aims to become a regional gas hub, with announced plans to start exporting gas in 2019 through output from other newly discovered gas fields Managing Director of the International Monetary Fund (IMF) Christine Lagarde issued a statement Friday on the progress of Egypt’s economic reform programme.. Jan 27, 2019
“The Egyptian authorities embarked on an ambitious economic reform program in 2016 that is being supported by an IMF financial arrangement.”
“Since then, Egypt has made substantial progress as evident in the success achieved in macroeconomic stabilization. Its growth rate is now among the highest in the region, the budget deficit is on a declining trajectory, and inflation is on track to reach the Central Bank of Egypt’s target by the end of 2019.
“Unemployment has declined to around 10 percent, which is the lowest since 2011, and social protection measures have been expanded.
“It is important to build on the progress achieved thus far and to press ahead with structural reforms that facilitate private sector-led growth and job creation, as well as measures to increase transparency and accountability that help improve governance. This will help attain higher and more inclusive growth and will ensure better living standards for all Egyptians.
“The IMF staff team has now finalized the details required to present the fourth review for Egypt’s Extended Fund Facility arrangement to the IMF’s Executive Board. The Board will meet in the coming weeks to discuss the review and I will recommend that the Board approve the review.
“I would like to take this opportunity to commend the patience and commitment of the Egyptian people to the reform process. This will pave the way for higher and more inclusive growth for the long term, and I reiterate that the Fund stands ready to help achieve a more prosperous future for Egypt.” Credit Agricole – Egypt on Sunday reported a 12.6% year-on-year increase in consolidated profits for 2018. Feb 03, 2019
Net profit amounted to EGP 2.2 million in the January-December period, versus EGP 1.95 billion in 2017, the bank said in a filing to the Egyptian Exchange (EGX).
The bank’s revenues from interests grew by 19.1% to EGP 5.6 billion at the end of December, compared to EGP 4.7 billion a year earlier.
As for the standalone business, profits rose to EGP 2.19 billion in last year, versus EGP 1.9 billion in 2017.
In November, Credit Agricole posted a 12% year-on-year increase in consolidated profits for the first nine months of 2018.
The EGX-listed bank achieved profits of EGP 1.67 million in the first nine months of 2018, versus EGP 1.49 billion in the corresponding period of 2017.
American Chamber of Commerce in Egypt - Business Information Center 49 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Navigation at the Suez Canal has recorded on Wednesday the second highest rate worldwide in terms of the number of vessels and tonnage, said Suez Canal Authority Jan 06, 2019 (SCA) Mohab Mamish said.
In a released statement, Mamish added that 72 ships passed the waterway today in the two directions with a tonnage of 5.1 million tons.
"These numbers prove the soundness of the vision of the political leadership in Egypt and the efficiency of the SCA management in handling the developments of the world trade movement," he pointed out.
These record figures reflect positively on the canal's revenues and confirm the technical and economic viability of the New Suez Canal, he added. Egypt's annual urban consumer price inflation fell sharply to 12.0 percent in December from 15.7 pct in November, the official statistics agency CAPMAS said on Jan 13, 2019 Thursday, amid mixed expectations among analysts.
Inflation had started to cool steadily in recent months after an increase in fuel, electricity and transportation prices earlier this year had sent the rate up to a high of 17.7 percent in October on the back of increased food prices.
"What happened in October was surprising with the supply shock driving inflation up to 17.7 percent. But what we're seeing now is a return to normal conditions. That said, a 6.7 percent drop month-on-month in the price of food and beverages is a lot," said Allen Sandeep, head of research at Naeem Bokerage in Cairo.
The month-on-month decline was lead chiefly by sharp drops in the prices of tomatoes and potatoes, which fell 37.4 percent and 29.8 percent, he added.
Others, however, did not expect a decline of this magnitude.
"This was an extremely surprising result. Food prices were mainly behind the October spike and cooling led to this decline, but it is a big drop," said Alia Mamdouh, director of macro and strategy at Beltone Financial.
Egypt has implemented a series of tough austerity measures to help meet the terms of a $12 billion IMF loan programme it signed in late 2016. The programme calls for tax increases and deep cuts to energy subsidies
The central bank kept its key interest rates on hold at its December meeting, saying that the current policy rates and inflation outlook were in line with "achieving targeted disinflation."
"[The December headline inflation figure] bodes well with our view that the central bank could shift to monetary easing in 2019, particularly in the first half of the year," said Hany Farahat, senior economist at Egyptian investment bank CI Capital.
Egypt's central bank last moved its rates in March 2018, slashing the overnight deposit and lending rates by 100 basis points to 16.75 percent and 17.75 percent respectively.
American Chamber of Commerce in Egypt - Business Information Center 50 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s total public investments rose 12 percent to 175 billion Egyptian pounds ($9 billion) during the first half of financial year 2018/2019 from the same period last Jan 15, 2019 year, Planning Minister Hala al-Saeed said Sunday.
The minister was addressing the CI Capital’s 3rd Middle East and North Africa Region (MENA) Investor Conference, inaugurated by Prime Minister Moustafa Madbouly.
She added that the government has developed a comprehensive plan aimed at achieving comprehensive development and spurring the economy.
Egypt Vision 2030 was launched to offer a general framework governing plans and phased work programs in the coming years, the minister said. The economic reform programme, launched in 2016, also aimed at creating a business climate able to restore investor confidence and lure investments, which are necessary to achieve a comprehensive and sustainable growth led by the private sector as a key partner for the government in achieving development, she added.
“Comprehensive plans for achieving structural reform in seven promising sectors have been developed,” al-Saeed said.
She added that the government is also keen to create the necessary infrastructure, topped by road networks and power plants, to attract investors and achieve comprehensive and sustainable development. The lowest offer for wheat presented at Egyptian state grain buyer GASC’s international purchase tender on Tuesday was $243 a tonne for 60,000 tonnes of U.S. soft Jan 31, 2019 red wheat on a free on board (FOB) basis, traders said.
The offer was presented by Cargill.
GASC is seeking an unspecified amount of wheat for shipping March 11-20 in its first wheat tender since changing its payment terms to an on sight basis after securing a $3 billion loan from the Islamic Trade Finance Corporation.
The state buyer’s letters of credit - banking guarantees for on-time payment from a buyer to a seller - were typically issued prior to shipment, with payment guaranteed within 180 days.
The supply ministry said last week that it expected the new payment to lower the prices of wheat on offer.
However, Russian wheat export prices rose last week, due to a stronger rouble and seasonally lower supply, meaning the anticipated effect of the payment measures may not be immediately noticeable.
“The tender in Egypt today will be some of the kind of test for our competitiveness,” Arkady Zlochevsky, head of the Russian Grain Union, a non-government lobby group, told reporters in Moscow on Tuesday.
The growth in Russian domestic wheat prices in recent weeks is likely to reduce trade margin and export supplies from Russia, he added.
The results are expected later on Tuesday.
American Chamber of Commerce in Egypt - Business Information Center 51 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s top administrative court on Saturday lifted a ban on operations by ride-hailing companies Uber and Careem, which have faced fierce opposition from traditional Feb 24, 2019 taxi drivers, a judicial source and lawyer said.
A lower administrative court withdrew the permits of U.S.-based Uber and its main rival, Dubai-based Careem, in March 2018 after 42 taxi drivers filed suit, arguing the apps were illegally using private cars as taxis and were registered as a call center and an internet company, respectively.
In April last year, however, the Cairo Court of Urgent Matters said the ruling should be suspended and the two firms should be allowed to continue operating until a final decision was made by the Highest Administrative Court, which accepted the companies’ appeal on Saturday.
Uber has faced repeated regulatory and legal setbacks around the world due to opposition from traditional taxi services. It has been forced to quit several countries, including Denmark and Hungary.
The company has said Egypt is its largest market in the Middle East, with 157,000 drivers in 2017 and four million users since its launch there in 2014.
Last week, Uber reached an agreement with the Egyptian Tax Authority to pay value-added tax (VAT), which Careem said it had been paying since March 2018. With the passing of one week since the enforcement of the European Partnership Treaty, prices of Europe-based autos recorded broad discounts in the Egyptian market Jan 10, 2019 ranging from 2.6 percent, equivalent to EGP6,000, to 30.1 percent for models of Fiat Tipo (manual) and Bentley Mulsanne respectively.
Wide-ranging discounts involved up to 14 models including Audi, Bentley, Fiat, Skoda, Siat, Volkswagen, Peugeot, Opel, Jaguar, Land Rover, Maserati and Porsch as well as some Europe-originated models of Hyundai and Ford.
Following in the footsteps of their European peers, Japan-based carmakers unveiled discounts ranging from EGP30,000 to EGP40,000 in a bid to dispose of their 2018's unsold stocks and boost sales, according to sales manager of Mitsubishi at Diamond Motors Usama Oun.
In the face of EPT's customs reliefs coming into force, four European trademarks refrained from officially announcing any discounts.
Sales of European trademarks jumped by 82.4 percent during the first 11 months of 2018, as they recorded 24,587 deliveries, up from 13,477 units in the same period of 2017, according to Authomative Marketing Information Center ( AMIC).
The market share of European automakers in the Egyptian market rose to 19.9 percent up from 15.2 percent a year earlier.
American Chamber of Commerce in Egypt - Business Information Center 52 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Tourism Minister Rania Al-Mashat highlighted the country’s Tourism Reform Program (E-TRP) during her attendance at the World Economic Forum in Davos last Jan 27, 2019 week. “Just back from a very eventful and wonderful few days in Davos. This year as the WEF focused on the UN SDGs and sustainability, our Egypt-Tourism Reform Program was perfectly placed,” Al-Mashat said in a statement on Saturday.
The WEF, attended by an Egyptian delegation which included Prime Minister Mostafa Madbouly and Investment and International Cooperation Minister Sahar Nasr, saw important talks on investment opportunities between the Egyptian officials and representatives from leading global companies, including Uber and Apple. Al-Mashat highlighted Egypt’s newly launched E-TRP, which seeks to introduce structural reforms to create a better business environment for travel companies in Egypt.
E-TRP was established late last year in an attempt to continue reviving a crucial tourism sector which was hit severely during the past years due to political and social unrest.
The programme includes administrative restructuring, a managerial reshuffle, and the empowerment of junior staff, the introduction of incentive programmes to boost the competitiveness of local operators, enhancing international relations, talking to international tourism institutions, community development, and securing international grants to develop the sector.
Al-Mashat said she had the opportunity to share the country’s visit with international financial institutions, development partners and private sector.
“I emphasised that for the first time, the UN Sustainable Development Goals are at the core of the tourism sector’s structural reform programme in Egypt (E-TRP),” she said, adding that she focused on global trends, the fifth pillar of the programme.
According to Al-Mashat ,10 percent of the country’s hotel rooms are aligned with a green star certification, pointing also at an major Egyptian hotel move to shift to solar energy generation in order to allow more resources to be used for the servicing of tourists.
“We are changing and the narrative on tourism and people are witnessing the changes first hand,” she concluded.
American Chamber of Commerce in Egypt - Business Information Center 53 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s President Abdel Fattah El-Sisi and his French counterpart Emmanuel Macron on Monday witnessed the signing of a raft of cooperation agreements and Jan 29, 2019 memorandums of understanding (MoUs) between the two countries.
Egyptian investment and international cooperation minister Sahar Nasr and Remy Rioux, the French Development Agency's (AFD) chief executive officer, inked a MoU for striking a strategic partnership for social and economic development between Egypt and the AFD in 2019-2023.
This deal entails boosting cooperation between France and Egypt according to the North African nation’s 2030 Vision, local portal eXtranews reported.
Nasr and Rioux also signed a EUR 60 million credit facility for the Egyptian finance ministry, along with a EUR 50 million financing for Egypt’s Mirco, Small, and Medium Enterprises Development Agency (MSMEs) to support women’s SMEs.
In the same vein, Egyptian transport minister Sherif Raafat and Eric Bobby, the head of Finance Afrique, penned a EUR 336 million deal for the fourth stage of Cairo Metro’s third line, including a EUR 286 million grant and a EUR 50 million loan.
Rasha Raghab, head of National Academy for Youth Training and Rehabilitation, and the director of the French National School of Administration (ENA) Patrick Geria signed a MoU for youth training.
Moreover, Egyptian health minister Hala Zayed and French Foreign Minister Jean-Yves Le Drian signed a letter of intent (LoI) for setting up blood derivatives project in collaboration with the concerned French firms.
Egypt’s higher education minister Khaled Abdul Ghaffar and Le Drian inked a deal to re-establish the French University in Egypt.
The agreements also included a declaration signed by Egyptian foreign minister Sameh Shoukry and his French counterpart to prop up cultural and scientific cooperation between the two countries. Egypt plans to attract investments worth $10 billion in petroleum sector within 2019, Oil Minister Tarek el-Molla told news-channel. Feb 07, 2019
The first international tender for natural gas exploration in Red Sea will be floated very soon, el-Molla said, pointing out that Egypt’s gas production amounts to around 6,400 million cubic feet per day.
He stated that Egypt is studying previous gas export contracts that would not affect the local market including a Lebanese one.
On Jan. 31, el-Molla discussed with his Lebanese counterpart Cesar Abi Khalil ways of boosting bilateral cooperation in the petroleum and gas domains. The Lebanese minister expressed his country’s desire that Egypt would resume pumping natural gas to Lebanon as part of the 2009 contract signed between the two sides.
El-Molla said earlier that in the period from 2014 to 2018, Egypt signed 63 petroleum agreements with investments of $14 billion.
The minister reviewed achievements in the sector, saying that the ministry implemented the biggest two projects for collecting geophysical data in areas of the Red Sea and Upper Egypt.
He added that debts to foreign oil partners slumped to less than one third, recording $1.2 billion by the end of June 2018, which is the lowest amount since 2010.
El-Molla clarified that 24 projects were implemented to develop gas fields, most importantly projects of Zohr, Atoll, Noras and North Alexandria, adding that these projects contributed to the hike of natural gas production by 60 percent, compared to the average production in 2015/2016.
Egypt achieved self-sufficiency of gas at the end of September 2018.
The minister also referred to the rise of the refinery laboratories’ efficiency and the expansion of infrastructure projects, maximizing the added value of petrol and gas through petrochemical industries, as three projects with investments of $4 billion were executed to increase petrochemical industries.
American Chamber of Commerce in Egypt - Business Information Center 54 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egyptian National Railways Authority’s losses reached 10 billion Egyptian pounds ($558 million) during the financial year 2017/2018, said Head of Final Accounts Jan 13, 2019 Department at Egypt’s Finance Ministry Abdel-Nabi Mansour on Saturday.
Mansour made his remarks during the meeting of the Committee of the Plan and Budget of the House of Representatives to discuss the final account of the railways in the financial year 2017/2018.
The railways’ losses went up by 40 percent of the volume of losses of the 16 losing economic bodies, which amounted to 23 billion pounds in losses, he said. In 2018, Egyptian Minister of Transport Hesham Arafat said: “The railway system has not developed in 60 years.” Transport Ministry has prepared a plan to improve the country’s trains, but admitted that progress was slow, Arafat added.
Transport Ministry announced there is a comprehensive plan to develop the railway system in Egypt within 2022, including infrastructure, vehicles, tractors, crossings, and stations, at a cost worth 55 billion pounds.
Minister of Electricity and Renewable Energy Mohamed Shaker stated that the electrical interconnection line with Sudan will be activated in February, and that Jan 17, 2019 negotiations with Saudi Arabia, Gulf countries, Greece and Cyprus are underway.
That came during his speech in the opening of the World Future Energy Summit (WFES) on Monday. WFES is held on January 14 - 17 within Abu Dhabi's Sustainability Week.
The minister revealed that Egypt’s safe reserve of power increased by 25 percent due to mega projects accomplished in the sector throughout the past five years.
Shaker added that the voltage of transmission lines is 500, and that their capacity increased to 6,000 kWh from 2,300 kWh.
The minister explained that Egypt deals with reputable international companies to execute projects. That guarantees safety and quality, and secures energy for any investment project in the country. He said that Egypt’s position in the energy sector facilitates fundraising from international entities for those projects.
As for the contribution of renewable energy, Shaker stated that its share in electricity generation will rise to 20 percent by 2020. He added that was being achieved under the auspices of President Abdel Fatah al-Sisi who always reiterates that electricity is part of Egypt’s national security.
Shaker clarified that a solar power station with a capacity of 1,500 megawatts will be accomplished by mid-2019.
The minister added that four solar plants were connected to the grid as a result of spending LE 55 billion on internal high-voltage networks, and LE 24 billion on distribution networks over the past two years. That has led to increasing the capacity of the national grid by 100 percent to 25,000 MW.
Shaker disclosed that the ministry is getting offers, including Emirati ones, to execute wind energy projects in the Red Sea governorate.
In his speech at the High-Level Forum Africa-Europe in Vienna, President Sisi said in December that he aspires to link Europe and Africa by a fiber optic network.
American Chamber of Commerce in Egypt - Business Information Center 55 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The Central Bank of Egypt (CBE) on Wednesday said that the value of Egypt's trade with other world countries hit 23.4 billion dollars in the first quarter of fiscal year Feb 07, 2019 2018/2019.
A report issued by the CBE said that the value of Egypt's imports during this period reached 16.6 billion dollars while exports reached 6.8 billion dollars.
The value of Egypt's trade with the world countries in the same period last year reached 20.58 billion dollars, added the report.
China came first on the list of trade partners as joint trade exchange reached 1.6 billion dollars including 1.5 billion dollars of imports.
The US ranked second at a value of about 1.5 billion dollars, of which 867 million dollars is the value of imports and 652 million dollars is the value of exports.
Saudi Arabia ranked third at a trade value hitting 1.48 billion dollars including 1.2 billion dollars of imports, said the report.
The UAE ranked fourth while Italy came in the first rank followed by Germany, the UK and Switzerland, added the report. The Central Bank of Egypt (CBE) will issue treasury bills (T-bills) worth EGP 18 billion on Thursday on behalf of the Ministry of Finance (MOF). Jan 31, 2019
The issue will be used to finance the budget deficit, the CBE said.
The first tranche of T-bills will be offered through 182-day notes at EGP 8.75 billion, while the second offering will be through 364-day notes at EGP 9.25 billion, according to the CBE’s official website.
Egypt’s debt instruments, especially T-bills, are attractive to foreign investors owing to their high yield. State-run banks are the largest holders of the government’s debt instruments.
The MOF previously revealed it was aiming to finance the general budget deficit of EGP 511.2 billion in fiscal year 2018/2019.
Egypt aims to issue EGP 409.6 billion T-bills and bonds at a value of EGP 101.6 billion in FY 18/19.
The CBE previously indicated that Egypt’s total foreign debt increased 2.3% quarter-on-quarter, or $1.8 billion, reaching $80.8 billion in the first quarter of FY17/18, against $79 billion at the end of June 2017.
American Chamber of Commerce in Egypt - Business Information Center 56 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Gold has been traded below the 10-month high seen in the previous session on Thursday as the dollar erased losses after the US Federal Reserve meeting minutes Feb 21, 2019 reignited expectations of a further rate hike this year.
Investors were also closely awaiting the outcome of trade talks between the US and China, the world's two largest economies.
At 7:16 am GMT, spot gold edged down 0.03% to $1,338.10 per ounce, while US gold futures declined 0.49% to $1,341.30 per ounce.
“There are both technical and fundamental reasons for this pull back in gold prices. It is under some technical selling pressure at the moment,” Margaret Yang, market analyst with CMC Markets, Singapore, told Reuters.
Commenting on the Fed’s minutes of its January policy meeting released late on Wednesday, Yang said “it was a clearly dovish statement”, adding that dollar recovered after the minutes and gold investors are now taking profits.
By 7:19 am GMT, the US dollar index, a gauge for the greenback against six major peers, inched up 0.18% to 96.6310.
The Fed meeting minutes signaled that the US economy and its labour market remained strong, rekindling some expectations of at least one more interest rate hike this year.
“Spot gold may retrace into a range of $1,321-$1,331 per ounce and could have peaked around resistance at $1,351 per ounce,” according to Reuters analyst Wang Tao.
In the same vein, markets were watching carefully signs of progress in the latest round of trade talks between the US and China.
Midlevel US and Chinese officials began this week's trade meetings, while cabinet-level negotiators will join the discussion on Thursday, 21 February.
US President Donald Trump is also expected to meet his Chinese counterpart Xi Jinping in March to strike a long-awaited deal.
Trump gave his firmest indication yet that the US may not step up tariffs on Chinese goods on 1 March, as scheduled.
The deadline to complete talks with China is “not a magical date,” the US president told reporters on Tuesday.
“After finding major support at the $1,300 per ounce mark, (gold) prices have witnessed an upthrust, and moved past the invincible $1,326 per ounce mark,” Sugandha Sachdeva, vice-president, metals, energy and currency research, Religare Broking Ltd, told Reuters.
This has laid the ground for gold to resume the upwards trajectory towards $1,365 per ounce in the near-term, Sachdeva added.
Holdings of the SPDR Gold Trust, which reflected investor appetite for the safe-haven metal, edged up 0.26% to 794.50 tonnes on Wednesday.
Among other precious metals, palladium added 0.1% to $1,490.00 per ounce, while spot platinum and silver dipped 0.2% to $821 per ounce and 0.1% to $16.01, respectively. 57 vessels crossing the Suez Canal on the first day of the year with 3.3 million tons of oil & cargo. That was announced by Mr. Tarek Hassanein, Speaker on behalf of Jan 01, 2019 the Suez canal authority indicating that 33 of which crossed from the north & 24 of the south, i.e. from the New Canal.
American Chamber of Commerce in Egypt - Business Information Center 57 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The European Bank for Reconstruction and Development (EBRD) announced that the construction of the first 16 solar plants it financed at the Benban solar park in Jan 29, 2019 Egypt, Africa’s largest solar park, has completed.
The plants are now connected to the country’s national electricity grid and began generating clean and reliable energy, the London-based lender said in a statement.
This comes within the framework of a $500 million in financing for the development of renewable energy at Benban solar park since 2017.
The 30-megawatt plant was developed by a consortium comprised of Egypt-based Infinity Solar Energy, Germany’s ib vogt GmbH, and MMID, an investment arm of the Mansour and Maghraby Groups and BPE Partners, the statement said.
It is worth noting that the project is co-financed by the Dutch Development Bank (FMO) and the Green Climate Fund (GCF).
Nandita Parshad, EBRD’s managing director for sustainable infrastructure, said: “This is really a milestone. It was not much more than a year ago that we signed the financing for these projects and the first one is already contributing to Egypt's green transition.
The speed with which these projects are already bringing clean energy to Egypt is a tribute to Infinity Solar, the Egyptian energy sector authorities and the support of the Aswan Governorate”.
The 16 plants financed by EBRD are set to have a solar photovoltaic capacity of 750 megawatts, which is more than half of the park’s 1,465 MW contracted capacity.
This project will help diminishing carbon dioxide emissions by 900,000 tonnes a year, the statement noted.
The EBRD has invested more than EUR 4.7 billion in Egypt over 92 projects since it began investments there in 2012. The Egyptian Exchange (EGX) is likely to carry on the bull-run on Thursday, the last trading session of January, analysts told Mubasher. Jan 31, 2019
Ayman Fouda, head of the capital market committee at the African Economic Council, projected that the EGX would carry on the upward trend in the short-term.
The benchmark EGX30 index is still moving sideways in the medium-term, Fouda said, adding that the index has a short-term resistance at 14,150 and 14,260 points and has support at 14,005 and 13,930 points.
Meanwhile, the small- and mid-cap EGX70 index has a short-term resistance at 695 and 705 points, and support at 677 and 669 points.
For his part, head of technical analysis at Arab Finance Securities Osama Naguib said that the EGX30 hovers around 14,100 points amid high trading volume for the third consecutive session.
The EGX30 has main support at 13,600 and 13,450 points, but it will continue seeing support at 13,300 and 13,225 points in the meantime, Naguib highlighted.
American Chamber of Commerce in Egypt - Business Information Center 58 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt is expected to achieve a growth rate of 7 percent during fiscal year 2021/2022, up from expectations of 5.8 percent during 2018/2019, the Ministry of Finance Feb 12, 2019 revealed in a report.
The ministry emphasized keenness on achieving the inclusive growth which will be reflected on all social brackets and will absorb all entries to the workforce annually, according to the bi-yearly report of fiscal year 2018/2019.
According to the report, the unemployment rate is anticipated to reach 7.1 percent in June 2022, down from 9.9 percent in June 2018.
The report also estimated the average crude oil price during fiscal year 2019/2020 to be $67 per barrel.
According to the Finance Ministry’s statement, the state’s fuel subsidies hit LE 30.17 billion during July to December 2018, compared to LE 26.65 billion during the same period of the prior year.
As per the currency, the primary expectation of the dollar in 2018/2019 is at LE 18/dollar, with an average interest of 18.6 percent on government treasury bills and bonds.
Meanwhile, financial objectives on the medium-term aim at reducing budget deficit to 5.8 percent in 2020/2021 and to record a public debt of 93.1 percent of gross domestic product (GDP) by June 2021, noting that this requires achieving a surplus of 2 percent annually starting from 2018/2019.
The report further referred that the targeted volume of GDP by the end of fiscal year 2019/2020 is LE6.18 trillion, up from the estimated volume of LE 5.25 trillion in 2018/2019.
Also, the ministry affirmed adding new mechanisms in managing the public debt, including: issuing zero-bonds, diversiting sources of foreign funding, and developing long and medium-strategies to manage public debt to reach sustainable levels.
Petroleum Minister Tarek el Molla witnessed Tuesday the inking of an agreement between Egypt's Arab Petroleum Pipelines Co. (SUMED) and Saudi Aramco’s trading Feb 14, 2019 arm, Aramco Trading Company (ATC) to provide 222,000 cubic meters of gas oil storage capacity in Sidi Kerir for re-export to Europe.
The companies also signed a second deal to supply fuel oil storage capacity of 165,000 cubic meters in the Red Sea port of Ain Sokhna, a statement by the Petroleum Ministry said.
That deal may include re-exporting and supplying fuel oil to power plants in Saudi Arabia, meeting the needs of the Egyptian market and providing fuel to ships in the region, according to the statement.
The deals were signed on the sidelines of an energy forum in Cairo.
American Chamber of Commerce in Egypt - Business Information Center 59 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The Regional Center for Renewable Energy and Energy Efficiency (RCREEE) signed a new cooperation agreement with Egypt’s housing ministry aimed at encouraging Jan 13, 2019 investments in renewable energy and energy efficiency applications in the country’s construction sector.
The agreement was signed on Thursday by RCREEE Executive Director Ahmed Badr and First Undersecretary of the Ministry of Housing and Head of Construction and External Relations Mohamed Hesham Darwish.
The centre describes itself on its website as “an intergovernmental organisation with diplomatic status that aims to enable and increase the adoption of renewable energy and energy efficiency practices in the Arab region.” It is based in Cairo.
The agreement facilitates the two parties’ efforts in research, capacity development and technical assistance for renewable energy and energy efficiency applications in the construction sector, according to a press release.
The centre will provide technical support through its experts to the Egyptian ministry in the fields of renewable energy and energy efficiency in the construction sector, as per the agreement.
The two parties will also jointly undertake funded projects as well as encourage cooperation with all relevant national stakeholders to develop, implement and follow up policies, strategies and action plans for renewable energy and energy efficiency applications in the construction sector, in line with Egypt’s priorities.
“This agreement reflects RCREEE and the ministry’s efforts to encourage private sector investments in renewable energy and energy efficiency projects in the construction sector in Egypt,” the statement said.
The use of energy in the construction sector in the country represents about 40 percent of total electricity consumed locally.
The demand for the usage of energy in the construction sector is expected to increase by 50 percent by 2050 due to population growth and rapid growth in purchasing power, according to the centre.
American Chamber of Commerce in Egypt - Business Information Center 60 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt achieved an initial budget surplus worth 20.8 billion Egyptian pounds ($1.1 billion) during the first half of financial year 2018/2019, said Minister of Finance Jan 22, 2019 Mohamed Maait on Monday.
The 2018/2019 budget’s expenditures total 1.41 trillion pounds, and projected revenues are targeted at 990 billion pounds.
In a press statement, the minister described these figures as good results, saying that this initial surplus represents 0.4 percent of the GDP, compared to an initial deficit of 0.3 percent of the GDP in the same period of the previous financial year.
Maait explained that the positive figures are partly due the government’s policy of encouraging investments in infrastructure in order to attract private sector business activity to all vital economic sectors.
The 2018/2019 budget aims to reduce the debt rate of state bodies to 93 percent of the GDP, while achieving a real growth rate of 5.8 percent, he added.
In financial year 2017/2018, Egypt’s budget deficit recorded 9.8 percent of GDP down from 10.9 percent in the previous financial year, the lowest level below the 10 percent benchmark for six years,
It was also the first time in 15 years for the final state budget account to record a primary surplus of 4.4 billion pounds.
The 2017/2018 primary balance figures do not take into consideration interest payments on outstanding government debts for the fiscal year, which stood at 438 billion pounds.
Investment and International Cooperation Minister Sahar Nasr said Monday that German investments in Egypt currently stand at $7.1 billion in different fields with some Feb 05, 2019 1215 German companies operating here.
She detailed that such investments are in the fields of information technology, communication, agricultural services, manufacturing, petrochemicals, engineering and car industries, among others.
The minister made her statements on the sidelines of the activities of the Egyptian-German business forum, organized by the German-Arab Chamber Of Industry and Commerce and attended by Trade Minister Amr Nassar, Minister of Petroleum Tariq El Molla and German Federal Minister for Economic Affairs and Energy Peter Altmaier.
Nasr urged the German companies to make further investments, asserting the importance of the Egypt-Germany strategic partnership.
She pointed out that Egypt, under President Abdel Fattah El Sisi, places high priority on investing in human capital, citing great progress made in implementing the plan of economic development.
El Molla affirmed the importance of fostering cooperation and strategic partnership between Egypt and Germany and expressed hope for more partnerships and signing of more agreements to strengthen economic relations between the two countries in the oil, gas and petrochemical domains.
American Chamber of Commerce in Egypt - Business Information Center 61 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The total investments of Egypt’s state-owned Misr Insurance Holding and its subsidiaries increased 13.2 percent to 65.4 billion Egyptian pounds ($3.73 billion) during the Feb 24, 2019 financial year 2017/2018.
Misr Insurance’s revenue rose 53.3 percent to 1.744 billion pounds during the financial year 2017/2018, according to the Middle East News Agency (MENA).
Net profit went up by 56.6 percent to 1.45 billion pounds.
The insurer’s subsidiaries revenues jumped 15.8 percent to 16 billion pounds during the last financial year, while the three firms’ net profit reached 3.204 billion pounds.
EGX Administration announced the total of recorded asks that responded to North Africa Co. for Real Estate Investment (NOAF) bids in order to buy back the stake of Mar 10, 2019 affected shareholders from delisting are 18,200,946 shares.
It is worth to mention, EGX opened the OPR market to recorded selling orders of North Africa Co. for Real Estate at LE2.18 per share starting March 03, 2019, till ending of trading session March 07, 2019. Microsoft Corp. and Telecom Egypt announced their collaboration to extend Microsoft’s cloud network to Egypt. Telecom Egypt will provide low-latency connectivity into Mar 24, 2019 and across Egypt to help enhance performance and increase reliability for customers of Microsoft services. The collaboration will increase Microsoft’s reach to the large Egyptian market in addition to improving connectivity across North Africa and the Middle East. Microsoft’s global network is one of the largest and most innovative in the world. It connects Microsoft’s cloud infrastructure of more than 100 datacenters, 135 edge node locations, and more than 100,000 miles of fiber and undersea cable systems to deliver Microsoft services to customers. The new point of presence in Egypt will benefit from a direct connection to Microsoft’s global infrastructure to enhance the delivery of numerous services for customers. “It is important to take full advantage of the unique geographical location of Egypt overlooking the Red Sea and the Mediterranean, which enables the country to become a regional digital hub.” He added Yousef Khalidi, corporate vice president, Azure Networking, Microsoft said, “Through our collaboration with Telecom Egypt, we are extending Microsoft’s global network in Egypt and improving connectivity across North Africa and the Middle East. We are continuously investing to increase the size, speed, reliability and intelligence of Microsoft’s global network to help enable the digital transformation of organizations and enterprises locally and abroad.” The government is debating a new system for export subsidies, with Prime Minister Mustafa Madbouli starting discussions on 29 January with the country’s various Feb 26, 2019 export councils to find a more effective support mechanism for exporters.
According to the current system, the government provides between eight and 12 per cent of the value of the exports to the exporters concerned provided that the products include 40 per cent local components.
Around 2,000 exporting companies are qualified to receive export subsidies, usually paid out after the deals are implemented.
However, the government has failed to pay its dues to qualified exporters for the last two years, with some putting the value of the arrears at between LE15 and LE21 billion.
“The delays in payments have had a serious impact on exporters who have not been able to include these funds when calculating the cost and revenues of export deals because there has been no accurate date for receiving them,” Mohamed Nassef, secretary-general of the Export Council for Engineering Industries, told Al-Ahram Weekly.
Exporters complained that they could lose their shares of foreign markets if they are not able to conclude future plans. Many Egyptian exporters have had difficulty maintaining their shares in international markets in the past few years because of difficult economic conditions.
Boosting exports, and thus increasing hard currency revenues, has been one of the main expected benefits of the government’s economic reform programme, with the devaluation of the pound in particular making Egypt’s exports more attractively priced.
Madbouli has so far held meetings with the members of four export councils, including engineering industries, and he is scheduled to meet members of the remaining ones this month.
American Chamber of Commerce in Egypt - Business Information Center 62 of 92 Economy Sector - Q1 2019 Report
“The government wants to find out the views of each council regarding the best formula for the export-subsidies system in order to avoid the current problems,” Nassef said.
During the Engineering Industries Council meeting with the prime minister last week, members had submitted 11 suggestions to create a more effective export-support system, according to Nassef.
He explained that there were different kinds of support other than financial incentives that the government could look at. “Introducing better shipping facilities is one,” he added.
Over the last four months, the Federation of Egyptian Industries together with the Egyptian Businessmen’s Association have suggested exchanging owed export subsidies for other privileges like tax deductions or insurance payments.
While Nasser said that these suggestions would be difficult to implement, it might be practical to exchange the dues for the land parcels needed to expand the exporters’ factories.
“It would be better for exporters to receive fewer financial incentives and for these to be disbursed on time, rather than large amounts delayed for years,” he said.
Although the government announced that its new mechanism will be announced by the end of February, Nassef does not expect it before the end of April.
Mustafa Al-Nagari, a member of the Agricultural Products Council, said that “it is too early to know the features of the new system as the government is discussing it with members of 13 different export councils that have different visions.”
Al-Nagari said that on 26 February the Egyptian Businessmen’s Association would hold a meeting with exporters to examine the results of these meetings with the government.
Many sectors are qualified to receive export subsidies, including agricultural products, the chemical industries, the spinning and weaving industries, leather products, engineering products, furniture and the construction materials industries.
Each sector can benefit from export subsidies according to the value-added of the products concerned, the percentage of local components, and the geographical location of factories, as well as the exports’ destination, employment incentives, and the use of innovative technologies.
According to the current system, requests for receiving the subsidies are submitted to the Egyptian Export Development Fund (ESF) within a year of the products’ export date. The documents needed include a valid certificate from a government-authorised agency and an industrial and export register.
The documents are examined by specialised committees, and if approved export subsidies are released within six months of submission.
The government allocates LE2.6 billion annually to the ESF, with the aim of encouraging Egyptian companies to increase their products’ competitiveness in foreign markets.
However, in the 2018/2019 budget, the government allocated an additional LE1.4 billion to the ESF to reach LE4 billion in order to pay long overdue funds.
Nassef explained that the government plans to increase the funds allocated for export-subsidies dues in the country’s budget for 2019/2020 in an attempt to end this problem.
He added that the government was seeking to raise export volumes to double what they are now within five years to reach $50 billion.
“If the government supports the exports sector, we can achieve this figure easily,” Nassef said.
Egyptian non-oil exports increased during 2018 by 16 per cent on a year-on-year basis to record $25 billion compared to $22.4 billion in 2017.
Last month, Amr Nassar, the minister of trade and industry, issued decree 12/2019 that reduced the number of export councils from 16 to 13. The decree merged some sectors and changed the heads of other councils.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s natural gas output is expected to reach 8 billion cubic feet per day during the fiscal year 2019/2020, after the completion and operation of developmental gas Jan 27, 2019 field projects nationwide, the petroleum minister has said. In a press statement released on Saturday, Petroleum Minister Tarek El Molla said that the forecasted “unprecedented production is a direct result to the successful strategy of the ministry anchored by political and economic stability in the country.”
He added that the success in security, the strategic needs of natural gas, and the accomplishments made in gas field discoveries and petroleum and gas production has contributed in sustaining the power supply to the local market and economic and production fields.
Saturday's figure comes a few months after officials said that the country’s natural gas output had risen to 6.6 billion cubic feet per day after an increase in production at its mammoth Zohr offshore gas field.
Egypt aims to become a regional gas hub for the trade of liquefied natural gas through major gas discoveries in recent years, including the Zohr gas field, which holds an estimated 30 trillion cubic feet of gas.
It has announced plans to start exporting gas in 2019 through output from other newly discovered gas fields.
Egypt said it achieved self-sufficiency in natural gas consumption in September last year due to the gradual increase in local production and the plan to develop major gas fields in the Mediterranean.
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Economy - Non Tenders Section Type Description Date Published Business News The Egyptian pound has risen against the US dollar on the back of investors’ interest in local sovereign debts, the Egyptian Exchange (EGX), and the increase in Jan 29, 2019 remittances from expatriate Egyptians, as well as positive indicators of Egypt’s economic recovery.
The EGP exchange rate against USD has risen, beating the expectations of the Central Bank of Egypt (CBE) Tarek Amer that it was witnessing a period of volatility.
The exchange rate of USD fell relatively in a number of banks on Sunday at ranges between 10 to 20 piasters.
Amer previously told Bloomberg that the EGP-USD exchange rate would see further volatility over the coming days, following the shutdown of the system allowing foreign investors to repatriate dollars.
The USD exchange rate at the CBE fell by 20 piasters for selling and by 22.2 piasters for buying, registering EGP 17.7697 and EGP 17.6303, respectively on Sunday, versus EGP 17.9743 and EGP 17.8553 last Wednesday.
Yehia Abu El-Fotouh, deputy chairman of the National Bank of Egypt (NBE), attributed the drop in the USD exchange rate to foreign investor’s high demand for investing in Egypt’s debt instruments.
The USD exchange rate against the EGP fell since the beginning of the week due to the increase in dollar inflows from foreign investors since the beginning of this month, Abu El-Fotouh added.
National banks have USD surplus in the meantime, which has helped in boosting the EGP value against the USD, he stressed.
Remittances from expatriate Egyptians, tourism revenues, exports, and diversification of financing sources have also contributed to the fall of USD exchange rate against the EGP, he highlighted.
In the same vein, a banking source said that the EGP rate increased against the USD by 20 piasters since the beginning of this week on the back of foreign investments in Egypt’s stock market and debt instruments.
The International Monetary Fund’s (IMF) recent positive report on the recovery of Egypt’s economy has boosted foreign investors’ confidence in the Egyptian sovereign debts and bourse, the source said.
Christine Lagarde, the IMF managing director, has called for maintaining economic reforms in Egypt, indicating that the North African country is on the right track.
A group of analysts agreed that the recent comments of the CBE’s governor have been positively reflected on the Egyptian banking sector. Daimler AG’s Mercedes-Benz is planning to build an assembly plant in Egypt. Jan 20, 2019
The German global automobile brand said that it will collaborate with an Egyptian partner to complete the project, according to a company statement.
Both the company and the Egyptian government were in talks in respect of the project.
“[Egypt is an] attractive and competitive location for production and supporting logistics,” the board member Markus Schaefer commented.
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Economy - Non Tenders Section Type Description Date Published Business News The International Monetary Fund’s (IMF) board approved on Monday a $2 billion loan payment to Egypt, the latest in the country’s three-year aid programme. Feb 05, 2019
The latest installment brings the total paid to Cairo to about $10 billion since the loan deal was signed in November 2016.
The previous loan tranche was approved in July of last year but this fourth review of Egypt’s programme had been awaiting board approval since October, when IMF staff and government officials had finalized it. IMF chief Christine Lagarde announced Jan. 25 that the final details had been worked out, clearing the way for the payment.
Since the 2011 revolt that toppled former President Hosni Mubarak, the economy of the Arab world’s most populous country has received multiple shocks caused by political instability and security issues.
Egypt has imposed harsh austerity measures to try to right the economy and reduce the budget deficit, including hiking fuel prices and electricity rates.
Lagarde has praised the “substantial progress” made by the Egyptian government on the reforms, which have boosted growth and cut unemployment to the lowest rate since 2011.
But she also urged the government “to press ahead with structural reforms that facilitate private sector-led growth and job creation.”
The fund expects the nation’s economy to grow 5.5 percent this year.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt has started construction works of a six-metre wall around the popular tourist hotspot Sharm El-Sheikh, in a bid to protect foreign tourists from the ongoing conflict Feb 24, 2019 in the Sinai Peninsula.
Despite Egyptian officials denying the existence of the project, the Guardian shared verified pictures and videos of the wall taken by local residents showing completed and unfinished parts of the barrier.
“It’s not a wall, who told you it’s a wall. We don’t have a wall,” General Khaled Fouda said of project, describing it instead as a mix of high concrete barriers and at least 37 kilometre of razor-wire fence, with “four very beautiful doors” to access the town.
It was intended to “beautify and secure Sharm El-Sheikh”, he said. “We are doing this for the future. The project will help Sharm El-Sheikh recoup lost tourism revenues.”
However local residents decried the construction, saying that it was destroying the region’s natural beauty.
“This security barrier isn’t going to make a difference, it will just annoy people more and it won’t stop terrorism. It’s a joke. Any tourist coming out of the city will be worried they’re not safe,” one local told reporters.
Similar plans for a wall around the popular tourist destination were briefly considered by the South Sinai authorities in 2005. Whilst Fouda declined to state why the project had been revived, it is believed to be one of many measures aimed at reviving tourism, which has fallen in recent years due to ongoing conflict in the region.
Egypt has been conducting a long-running campaign in the Sinai governorate, allegedly against Daesh militants.
However the operation has witnessed thousands of human rights violations, with the military accused of indiscriminately bombing civilian areas and conducting thousands of extra-judicial killings of residents, regardless of their affiliation.
Nearly 420,000 people in four north-eastern cities are in urgent need for humanitarian assistance due to the ongoing battle, according to Human Rights Watch, with the military also known to be using US-manufactured cluster bombs in civilian areas.
The operation also cut off Bedouin communities in the surrounding desert area, many of whom have been enlisted to aid Egyptian forces in their manoeuvres in the Sinai.
“This wall tells the Bedouin that they’re not part of the community – it sends the message that they’re not worth protecting from terrorism,” said the resident.
Many tourists have also stopped travelling to Egypt’s Red Sea and Sinai resorts since militants brought down a Russian passenger jet over the Peninsula in 2015.
Moscow suspended flights in the aftermath of the attack, which killed all 224 people on board and was claimed by Daesh. Russian officials said a homemade explosive device was detonated on board the plane, which had taken off from Sharm El-Sheikh.
Flights between the beach resorts and several destinations, including Russia and the UK are still yet to resume.
Egypt has been trying to attract tourists, an important source of foreign currency, since visitors fled after the 2011 uprising. Last year, Egypt moved to establish tourist only beaches in Alexandria and approve a law which fined Egyptian vendors for “pestering tourists”, in a bid to encourage travel to the country.
Tourism revenues had begun to rebound, jumping 77 per cent in the first half of 2018 to $4.8 billion, before a deadly attack on a bus in December killed three Vietnamese tourists and their Egyptian guide. The targeting of the bus was the first attack against foreign tourists in Egypt for over a year.
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Economy - Non Tenders Section Type Description Date Published Business News Egypt’s gold prices have fallen sharply on Monday by EGP 8 per gram, as compared with last Friday, secretary of the gold division at the Federation of Egyptian Jan 29, 2019 Chambers of Commerce (FEDCOC) said.
Prices of the precious metal have declined as the US dollar’s exchange rate fell against the Egyptian pound, as well as the global prices of gold dropped by $1 to $1,302 per ounce, Nady Naguib added.
He noted that the price of 21-karat gold stood at EGP 640 per gram on Monday, versus EGP 648 last Friday.
Moreover, the price of 18-karat gold slumped to EGP 539 yesterday, versus EGP 547 last Friday, while the 24-karat’s price per gram reached EGP 720 from EGP 728. An Egyptian state purchase tender for wheat drew a lowest offer of $235 per tonne for 60,000 tonnes of U.S. soft red wheat on a free on board (FOB) basis, traders said Feb 10, 2019 on Friday. The offer was presented by Cargill.
Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), is seeking an unspecified quantity of wheat for shipment March 21-31.
“This looks like a new sign that the Russian grip on sales to Egypt has come to a close after such a long time this season,” one European trader said.
“It has been expected that rising Russian prices would transfer more export business to the United States and west Europe.”
At its last purchase tender for wheat, GASC bought 360,000 tonnes of French and Romanian wheat last week.
The Russian wheat on offer was too expensive to be competitive.
The Russian agriculture ministry said this week that grain exports will slow down in the short term as high domestic prices make it harder for exporters to offer competitive prices abroad.
The ministry’s next meeting with Russia’s grain exporters is scheduled on Feb. 11. The chairman of Egypt's Suez Canal Authority (SCA) and the General Authority for the Suez Canal Economic Zone (SCZone) Mohab Mamish says an agreement was Feb 21, 2019 reached with Russia to establish a company to operate and administer the anticipated $7 billion Russian industrial zone east of Port Said before April. According to a statement issued by SCzone on Tuesday, Mamish, who is on a visit to Russia, said Russia has agreed to provide all required assurances guaranteeing that the new company will administer the zone project.
Mamish also said that the SCzone has agreed to Russia's request to prepare the land necessary for establishing the project, which is expected to provide 35,000 job opportunities.
Agreed upon in May 2018, the Russian industrial zone is set to be established over three phases on a 5.25 million square-metre plot of land, with the first phase to cost $190 million.
Following his talks with the Russian side, Mamish attended a workshop in the presence of representatives of about 200 major Russian firms interested in investing in the project.
Havel Solar is among the companies that participated in the workshop. The company is an integrated solar energy consortium seeking to find solutions to electricity problems in remote areas and industrial zones. Egypt’s stock market has been on an upward trend since the beginning of the year, something reflected in most of the emerging markets thanks to a weaker dollar and Feb 19, 2019 a truce in the trade war between the United States and China.
The Institute of International Finance (IIF) said in a recent report that a “sharp spike” in emerging markets inflows had been seen since the Federal Reserve, the US central bank, announced that it would keep rate-hikes on hold.
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“Following a tumultuous 2018, emerging markets enjoyed their best month of inflows in a year in January with investors ploughing $51.1 billion into emerging market stocks and bonds,” the report noted, quoted by Enterprise, an online research outlet.
The Egyptian bourse’s main EGX30 index lost 13.2 per cent in 2018 amid global market fluctuations and the emerging markets sell-off.
Egypt was the top-performing Middle East and North Africa (MENA) market in January, beating the US investment bank Morgan Stanley’s emerging markets index MSCI EM, according to Enterprise. “The EGX 30 gained 10 per cent in dollar terms, beating Saudi Arabia and the MSCI EM, which both rose nine per cent,” it said.
Good macroeconomic news has also supported the rebound over the last six weeks. The appreciation of the local currency in the last week of January was caused by and coupled with a rebound in foreign investments and purchases of local treasury bills.
Foreigners bought one-third of Egyptian local-currency treasury bills and more than half of longer-dated bonds auctioned during the week. Moreover, they gobbled up 100 per cent of the five-year bonds offered in the same week.
Foreign holdings in Egyptian treasuries stood at $13.1 billion by the end of January, which alone witnessed inflows of $900 million, according to Finance Minister Mohamed Maait speaking in a press conference last Wednesday. This is compared to an outflow of $10 billion during the second half of 2018 on the back of the emerging markets meltdown.
The thumbs up given by the International Monetary Fund (IMF) to Egypt’s economic reform programme, followed by the release of the fifth tranche of the $12 billion loan, also gave the market a kick.
Added to the above was good news from listed companies. The market bellwether the Commercial International Bank, Egypt’s largest privately-owned lender, reported a fourth-quarter net profit after interest of LE2.56 billion compared to LE1.87 billion a year ago. Shares in the bank gained almost four per cent on the session following the announcement of the results.
In the same trading session, Global Telecom Holding, the IT and media company founded by businessman Naguib Sawiris, climbed 3.3 per cent to its highest since July after its major shareholder Veon said that it had offered to buy the shares it did not already own in the company.
Its offer to buy 42.3 per cent of the firm at LE5.03 per share puts the value of the offer at $600 million, according to Reuters. Veon is a Netherlands-based company with outreach in Russia. It had previously offered to buy the shares at LE7.9 in 2017 but withdrew the following April as it did not get regulatory approval.
The market ended on 5 February at its highest point in the six-week period.
Moody’s Investors Service has maintained its positive outlook on Egypt’s banking sector, thanks to an improving operating environment. A note issued by the ratings agency on Monday said that banks operating in Egypt would have good access to “stable, deposit-based funding and hold large liquid asset volumes, especially in the local currency”.
Moody’s said that real GDP growth in Egypt was forecast to reach 5.5 per cent in 2019 and 5.8 per cent in 2020, and that banking penetration would deepen, supporting deposit and loan growth.
The accelerating growth reflected “increased public and private-sector investment, higher exports and a recovery in tourism,” said Constantinos Kypreos, a vice- president at Moody’s Investors Service. “We expect balance sheet growth of around 15 per cent in 2019 and for banks to maintain ample local currency funding, high liquidity, and strong and stable profitability,” he added.
The better than expected results for a number of blue-chip stocks was another factor that supported the rebound. The juice-maker Juhayna posted a 24 per cent increase in its net profits for the second quarter of 2018 /2019. Sidi Krier petrochemicals, one of five companies to be offered for privatisation, registered a 31 per cent increase in its third-quarter profits.
The expected initial public offerings (IPOs) of state-owned companies will add interest to the market. While the unfavourable market conditions of 2018 pushed the government to postpone the offering of stakes in a number of state-owned companies, there are rumours that March might witness the sale of a stake in Eastern Tobacco.
The IPOs are expected to boost market capitalisation and increase the range of commodities sold.
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The market ended Monday transactions at 14,800 points, its highest level since mid-September. Prime Securities, a consultancy, expected in a note that “exceeding the resistance level of 14,300 will push the index to continue its upside movement to target the levels of 14,500-15,000 points in the short term.”
However, it pointed to the possibility of a correction wave, especially after the sharp upward movement the market has been witnessing since the beginning of the year and the approach of the resistance level of 15,000 points. Egypt and the German Development Bank KfW signed on Tuesday an agreement to disburse the second tranche, worth $250 million, of a soft loan worth of $500 Feb 14, 2019 million. The agreement was signed in Cairo by Sahar Nasr, the minister of investment and international cooperation, and Helmut Gauges, the head of the Africa/Middle East Directorate at the German Development Bank KfW.
According to Minister Nasr, the agreement aims to support social development as part of the Egyptian government’s economic reform programme.
Nasr added that the agreement reflected Germany's confidence in the success of Egypt’s economic and social reform programme.
The minister also called on German companies to inject more investments in Egypt, and noted that German investments in the country have increased to $7.1 billion over the past four years, with 1,215 German companies investing in different fields including oil, petrochemicals, cars, telecommunications and steel.
Germany’s ambassador to Cairo Julius Georg Luy praised the agreement, saying that his country has supported the economic reforms in Egypt since the beginning.
KfW head Gauges expressed Germany’s keenness to support Egypt economically in the upcoming period.
Following the signing of the agreement, Nasr held a meeting with ambassador Luvy and KfW representatives to discuss increased cooperation between the two countries in the coming period through debt for development exchange. The government is debating a new system for export subsidies, with Prime Minister Mustafa Madbouli starting discussions on 29 January with the country’s various Feb 24, 2019 export councils to find a more effective support mechanism for exporters.
According to the current system, the government provides between eight and 12 per cent of the value of the exports to the exporters concerned provided that the products include 40 per cent local components.
Around 2,000 exporting companies are qualified to receive export subsidies, usually paid out after the deals are implemented.
However, the government has failed to pay its dues to qualified exporters for the last two years, with some putting the value of the arrears at between LE15 and LE21 billion.
“The delays in payments have had a serious impact on exporters who have not been able to include these funds when calculating the cost and revenues of export deals because there has been no accurate date for receiving them,” Mohamed Nassef, secretary-general of the Export Council for Engineering Industries, told Al-Ahram Weekly.
Exporters complained that they could lose their shares of foreign markets if they are not able to conclude future plans. Many Egyptian exporters have had difficulty maintaining their shares in international markets in the past few years because of difficult economic conditions.
Boosting exports, and thus increasing hard currency revenues, has been one of the main expected benefits of the government’s economic reform programme, with the devaluation of the pound in particular making Egypt’s exports more attractively priced.
Madbouli has so far held meetings with the members of four export councils, including engineering industries, and he is scheduled to meet members of the remaining ones this month.
“The government wants to find out the views of each council regarding the best formula for the export-subsidies system in order to avoid the current problems,” Nassef said.
During the Engineering Industries Council meeting with the prime minister last week, members had submitted 11 suggestions to create a more effective export-support system, according to Nassef.
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He explained that there were different kinds of support other than financial incentives that the government could look at. “Introducing better shipping facilities is one,” he added.
Over the last four months, the Federation of Egyptian Industries together with the Egyptian Businessmen’s Association have suggested exchanging owed export subsidies for other privileges like tax deductions or insurance payments.
While Nasser said that these suggestions would be difficult to implement, it might be practical to exchange the dues for the land parcels needed to expand the exporters’ factories.
“It would be better for exporters to receive fewer financial incentives and for these to be disbursed on time, rather than large amounts delayed for years,” he said.
Although the government announced that its new mechanism will be announced by the end of February, Nassef does not expect it before the end of April.
Mustafa Al-Nagari, a member of the Agricultural Products Council, said that “it is too early to know the features of the new system as the government is discussing it with members of 13 different export councils that have different visions.”
Al-Nagari said that on 26 February the Egyptian Businessmen’s Association would hold a meeting with exporters to examine the results of these meetings with the government.
Many sectors are qualified to receive export subsidies, including agricultural products, the chemical industries, the spinning and weaving industries, leather products, engineering products, furniture and the construction materials industries.
Each sector can benefit from export subsidies according to the value-added of the products concerned, the percentage of local components, and the geographical location of factories, as well as the exports’ destination, employment incentives, and the use of innovative technologies.
According to the current system, requests for receiving the subsidies are submitted to the Egyptian Export Development Fund (ESF) within a year of the products’ export date. The documents needed include a valid certificate from a government-authorised agency and an industrial and export register.
The documents are examined by specialised committees, and if approved export subsidies are released within six months of submission.
The government allocates LE2.6 billion annually to the ESF, with the aim of encouraging Egyptian companies to increase their products’ competitiveness in foreign markets.
However, in the 2018/2019 budget, the government allocated an additional LE1.4 billion to the ESF to reach LE4 billion in order to pay long overdue funds.
Nassef explained that the government plans to increase the funds allocated for export-subsidies dues in the country’s budget for 2019/2020 in an attempt to end this problem.
He added that the government was seeking to raise export volumes to double what they are now within five years to reach $50 billion.
“If the government supports the exports sector, we can achieve this figure easily,” Nassef said.
Egyptian non-oil exports increased during 2018 by 16 per cent on a year-on-year basis to record $25 billion compared to $22.4 billion in 2017.
Last month, Amr Nassar, the minister of trade and industry, issued decree 12/2019 that reduced the number of export councils from 16 to 13. The decree merged some sectors and changed the heads of other councils.
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Economy - Non Tenders Section Type Description Date Published Business News Request Of Information (RFI)- USAID/Egypt is in the process of designing a new five-year $15 million activity to support the Government of Egypt in automating court Mar 05, 2019 functions within Egypt's Economic Courts such as case filing and e-litigation. This program is intended to improve management of the court system, including resource allocation.
The resulting contract will provide technical assistance, equipment, hardware, software and software development in order to select, design, build and install a scalable automated function in at least one primary site. The contractor will simultaneously provide capacity building and training to court staff, key stakeholders and others involved in using, maintaining, populating and ensuring the usability of the system. Throughout the program, the contractor will work with key stakeholders to identify and provide technical assistance in advanced legal topics and developments such as the new law on Bankruptcy and the forthcoming amendments to the Economic Courts Law.
This is a Request for Information (RFI) which intends to provide information to parties interested in USAID support in Egypt as well as to collect any information and suggestions about USAID planned programming in this sector. Description: RFI - Egypt Economic Courts RFI_Economic_Courts_2019.pdf
Expiry Date: March 13th, 2019
Primary Point of Contact.: Abeer FaroukRizk, Contract Specialist [email protected] Phone:2522-6884 Fax: 2516-4739 First tourist Group from Uzbekistan arriving at Sharm El Sheikh. The Airport has recently received the first charter flight coming from Uzbekistan carrying 166 tourists. Mar 05, 2019 Uzbekistan used to enjoy tourism in Egypt highly prior to suspending/ stopping tourist flights from Russia. The recent arrived Group was warmly received by Egyptian officials ®ular citizens. The Central Bank of Egypt (CBE) will issue treasury bills (T-bills) worth EGP 18 billion on Thursday on behalf of the Ministry of Finance (MoF). Feb 28, 2019
The first tranche of the T-bills will be offered through 182-day notes at EGP 8.75 billion, while the second tranche amounts to EGP 9.25 billion and will be through 364- day notes, the CBE said in a statement on its website.
The issuance will be used to finance the budget deficit, the CBE added.
Egypt’s debt instruments, especially T-bills, are seen as attractive to foreign investors owing to their high yield. Egyptian state-run banks are the largest holders of the government’s debt instruments.
The MoF previously unveiled plans to issue EGP 146 billion in debt instruments in February, coinciding with the recent retreat in yields on T-bills and T-bonds.
The North African state plans to cut government debt to 92% of gross domestic product (GDP) in fiscal year 2018/2019, along with financing the state budget deficit by EGP 511.2 billion.
Egypt previously revealed plans to issue T-bills worth EGP 409.6 billion and T-bonds valued at EGP 101.6 billion in the current fiscal year.
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Economy - Non Tenders Section Type Description Date Published Business News Minister of Finance Mohamed Maait said Sunday that his ministry is working on preparing a new public finance bill as part of a number of regulations it plans to introduce Jan 15, 2019 in 2019.
Maait’s remarks came during his meeting with the House of Representatives’ planning and budget committee.
The new bill is expected to improve the state’s current audit system to cope with global standards, Maait said.
He said that the finance ministry will refer to the House several bills, including a bill on the customs and another on the state’s budget. 47 vessels crossing the Suez Canal on 1/27/2019 carrying 2.9 million tons of oil & cargo in both directions. Figures include 25 vessels which crossed it from north with Jan 28, 2019 1.7 million tons of cargo & 22 vessels which crossed it from south with 1.2 million tons of cargo. Foreign investors bought all of the five-year Egyptian treasury bonds auctioned on Monday, the country’s finance ministry said on Tuesday in a sign of renewed Jan 31, 2019 emerging market debt appetite.
Egypt’s central bank sold 1.16 billion Egyptian pounds ($66 million) in five-year bonds at an average yield of 17.59 percent, down from a yield of 18.03 at the last similar auction.
The Egyptian pound stabilised on Tuesday, trading at an average price of 17.68 to the dollar, after two days of consecutive appreciation that pushed it to a nine-month high.
“The rise in foreign investments in government debt certainly contributed to the pound strengthening, but there are also better global sentiments at large and confidence in the Egyptian balance of payments situation,” Allen Sandeep, Naeem Brokerage head of research, told Reuters.
Foreign investors bought around 30 percent of treasury bills and around 55 percent of five- and ten-year bonds auctioned this week, the finance ministry said.
“With the Egyptian pound’s appreciation also coinciding with a sizable drop in treasury yields - due to increased carry trade appetite - the same is likely to have resulted from increased foreign currency inflows into banks,” Sandeep said.
Yields in Egyptian five-year bonds had declined at every auction since mid-December. Average yields on bonds of other tenors were mixed. Egypt will maintain the existing customs exchange rate for essential goods at EGP 16 per $1 until the end of January, the finance ministry, said, while increasing the rate Jan 03, 2019 for non-essential and luxury goods to EGP 17.9739 per $1. In an official statement, the finance ministry said the customs dollar exchange rate for essential goods will remain unchanged.
The raised customs duty, which was approved in December, will apply until the end of January, with an average custom dollar exchange rate at EGP 17.9739 per $1.
In December Egypt sharply raised customs duties on hundreds of goods to encourage local production and curb a hiking trade deficit.
Egypt says increasing the customs dollar exchange rate will raise revenues from the value-added tax (VAT) by EGP 2.5 billion and will lead to an increase of EGP 6 billion in customs revenues, according to statements by the finance ministry last month.
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Economy - Non Tenders Section Type Description Date Published Business News International Property Show (IPS), the biggest property sales platform for local and international real estate markets in the Middle East, is being held for the first time in Jan 13, 2019 Egypt from 10 January to 13 January 2019.
Held for the first time outside Dubai, IPS is organised by the UAE’s two strategic companies for exhibitions and conferences as well as the MREC Integrated Real Estate Services.
Held under the patronage of Prime Minister Moustafa Madbouly, IPS will allow retail sale and purchases for both local and international properties through providing an ideal platform for investors and home buyers, giving an opportunity for exhibitors to showcase and sell their commercial and residential projects.
The four-day exhibition assembles top notch real estate exhibitors from diverse sectors of building and 30 real estate companies from Arab and European countries, including Dubai Land Department (DLD) and Wafi programme, also known as off-plan sales and rent program launched by the Saudi government, General Director of Strategic Marketing and Exhibitions Company Walid Farghal said.
Furthermore, the exhibition will highlight investment opportunities in Egypt, recent developments in the real estate sector and the cooperation between Arab investors.
In a December press release, General Director of Strategic Marketing and Exhibitions Company Farghal remarked that more Egyptian-Arab partnerships are expected to take place on the sidelines of IPS Egypt.
He pointed out that Arab investors always prefer to ink agreements with local investors that have considerable experience with Egypt’s market needs.
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Economy - Non Tenders Section Type Description Date Published Business News The new national e-payment card Meeza (meaning “merit” in Arabic) is being released onto the market through the National Bank of Egypt (NBE) and Banque Misr and Jan 20, 2019 will soon be rolled out at other banks such as Banque du Caire.
Meeza is the latest financial inclusion initiative by the Central Bank of Egypt (CBE) to push towards more cashless payments in Egypt.
The prepaid card can be recharged through the banks or ATMs as many times as its holder desires before it expires. Only an ID is required to issue the card — people 16 years or older can access Meeza cards — and it is exempted from administrative fees for the first month.
An NBE statement explained that Meeza would be available at all its branches in the second half of January to serve the needs of a wide stratum of people. Fees after the first month are set at LE25, according to the NBE.
People can also use the Meeza card without the need to open a bank account. Shopping online, making transfers and paying for different government and private-sector services are some of the merits granted to Meeza holders, who can also withdraw cash from ATMs, pay government bills, and buy from a wide network of merchants who have point-of-sale terminals.
Another merit of the Meeza card is its low administrative fees, said Mohamed Al-Itribi, president of Banque Misr. This would encourage vendors to do business via the prepaid card who may avoid using others because of expensive fees, he added.
Meeza provides the same services offered by Visa and MasterCard, but it can only be used locally. Its holder should also have a valid balance on the card, since it is prepaid.
The card is issued by the Egyptian Banks Company in cooperation with the Ministry of Communications and Information Technology, the CBE, and a number of banks in the domestic market.
Applicants can receive only one Meeza card, which is usually issued without the name of its holder printed on it unless the holder wishes otherwise, in which case a request is filed at the bank. The bank destroys the card if the applicant does not receive it within three months.
NBE and Banque Misr plan to issue two million Meeza cards this year, starting with the prepaid cards in the first phase, followed by debit cards, and then cards to receive payments at a later stage.
Five other banks will start issuing Meeza cards in 2019, including the Qatar National Bank and the Housing and Development Bank.
The CBE aims to issue 20 million Meeza cards in the next three years, according to a statement by Ayman Hussein, the CBE’s deputy governor.
Earlier statements made by Tarek Fayed, chairman of the board of Banque du Caire, explained that his bank was preparing to launch different types of Meeza cards at the end of January, starting with 450,000 prepaid cards to be issued throughout the year.
Using Meeza cards, merchants can easily pay all their government dues, be they to the tax, customs or other authorities, said Akef Al-Maghrabi, deputy chairman of the board of Banque Misr.
Since the card enjoys low fees in comparison to competing cards, hundreds of traders are likely to join the e-payment system, he added.
At a later stage, Meeza can also be used to pay pensions and payments from the Takaful and Karama cash-subsidy programmes, Al-Maghrabi added, as part of the government’s plan to reduce the dependency on cash and encourage e-payments.
The Ministry of Finance announced in September that Meeza cards would be able to handle all government payments, such as pensions and subsidies, within the framework of amendments to the public accounting system that dictates that all government payments should be electronically settled in 2019.
American Chamber of Commerce in Egypt - Business Information Center 75 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Britain's Standard Chartered Bank named Egypt among the world’s top 10 economies by 2030, the Cabinet information center announced on Saturday. Feb 10, 2019
The bank forecast that Egypt will be ranked 7th among the world's top 10 economies by 2030 with gross domestic product hitting about $8.2 trillion, compared with 2017, when the country was ranked the 11th with GDP of about $1.2 trillion, the center said on its Facebook page.
The figure was estimated using purchasing power parity exchange rates. After six years, Damietta liquefaction will resume its work in April and export around 550 million cubic feet per day of natural gas, a Petroleum Ministry source told the Feb 19, 2019 local newspaper.
This decision came after the Egyptian government signed an agreement with the foreign partners of the project, as the plant is a joint venture between Union Fenosa Gas and the Italian Company Eni.
In January, it was reported that the government was about to sign an agreement with the main partner of the plant, the Spanish Union Fenosa, to drop a $2 billion arbitration claim lodged after gas to the facility was cut off in 2012.
The source stated that the Ministry of Petroleum agreed with the partners to compensate the company for its loss through the stoppage period with profits derived from the Egyptian Natural Gas Holding Company (Egas)'s 10 percent ownership of the facility.
The ownership of the Damietta Liquefaction plant is 26 percent for Italy's ENI, 26 percent for Union Fenosa and Spanish Egyptian Gas Co. (Segas) and 48 percent for the Egyptian government.
The source added that the ministry agreed to allow the Damietta plant to export quantities of natural gas produced locally, until the arrival of gas from the fields of Cyprus and Israel in the Mediterranean Sea, thus achieving an economic return in Egypt and ending the arbitration disputes.
Negotiations with foreign partners in the Damietta Dam plant were conferred with gas prices and charges of the use of the national gas network in exchange for the gradual re-operation of the plant and the export of locally produced natural gas.
Also, Eni is now waiting for approval from the Petroleum Ministry to connect the Damietta plant to the Zohr gas treatment plant.
Union Fenosa filed a lawsuit against Egypt at International Centre for Settlement of Investment Disputes (ICSID) in 2014 to compensate it with $8 billion after the Ministry of Petroleum stopped supplying liquefied gas to Damietta plant due to lack of energy resources inside the country following the January 2011 revolution.
With gas production amounting to around 6.4 billion cubic feet per day, Egypt achieved self-sufficiency of gas by the end of September 2018, aiming to become a regional hub of energy.
American Chamber of Commerce in Egypt - Business Information Center 76 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt's current account deficit narrowed to $1.751 billion in the three months to end-September, the central bank said on Thursday, from an apparently revised $1.754 Jan 13, 2019 billion a year earlier.
Last year the central bank had put the July-September 2017 figure at $1.64 billion.
The trade deficit increased to $9.90 billion from $8.91 billion, with exports rising 16 percent to $6.79 billion and imports 13 percent to $16.68 billion.
Petroleum exports surged 58 percent to $2.81 billion and imports climbed 27 percent to $3.50 billion, the central bank said in its quarterly balance of payments report.
Remittances from workers abroad, a major source of foreign currency, edged up to $5.91 billion in the quarter from $5.82 billion a year earlier. The central bank apparently revised last year's figure, which it had previously put at $5.97 billion.
Partly to attract foreign investment, Egypt in late 2016 cut the value of its currency by about half against the dollar as part of a three-year, $12 billion loan agreement with the IMF. It also implemented a value-added tax and has been slashing energy subsidies.
Net foreign direct investment fell to $1.1 billion in July-September from $1.84 billion, revised from $1.58 billion, and net petroleum investment fell to $482.1 million from about $912.7 million a year earlier, according to a Reuters calculation. Source: Reuters
Egyptian Exchange (EGX) suspended trading on Wednesday in the Sixth of October Development and Investment Company (SODIC) and the state-owned Madinet Nasr Jan 27, 2019 for Housing and Development (MNHD) after the two firms called off a planned merger.
SODIC said earlier it was no longer interested in a mandatory purchase offer for MNHD. Meanwhile, MNHD said in a letter seen by Reuters on Tuesday that it had called off the planned deal.
Trading in SODIC’S shares was suspended pending a response to enquiries, the stock exchange said on its website. Egypt achieved a primary budget surplus of EGP 21 billion, representing 0.4 percent of gross domestic product (GDP) in July-December 2018, compared to a primary Jan 31, 2019 budget deficit of EGP 14 billion that constituted 0.3 percent of GDP a year earlier, according to an official report.
During a cabinet meeting chaired by Prime Minister Mostafa Madbouli on Wednesday, Minister of Finance Mohamed Maait reviewed a report about the main features of financial performance for the 2018/2019 fiscal year.
Egypt’s total budget deficit declined to 3.6 percent of GDP in the first half of the 2018/2019 fiscal year, compared to 4.2 percent of GDP during the same period last year, the minister said during the meeting.
This improvement in financial performance comes as a result of the continuity of enhancing the country’s economy, its efforts to maintain fiscal consolidation of the general budget as well as implementing the economic and financial reform program.
The report noted that Egypt’s government revenues registered an annual surge of 28 percent in July-December 2018, while the budget expenditures were estimated at 18 percent during the same period.
Tax revenues recorded an annual increase of 22.2 percent in the last six months of 2018, it added.
American Chamber of Commerce in Egypt - Business Information Center 77 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News "Egypt's investment inflows increased and the country occupied the fifth position among countries that attract investments,” Minister of Investment and International Feb 05, 2019 Cooperation Sahar Nasr stated.
This upgrade will boost the flow of investments from European countries to participate in major national projects. Such great progress comes in line with the achievements lead by President Abdel Fatah al-Sisi such as facilitating the procedures and measures of establishing projects.
"Egypt is a leading country that our organization cooperates with due to its reform program," Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development, stated.
This came during a meeting between Minister of Investment and International Cooperation Nasr and Gurria at the Financial Forum for Sustainable Development in Paris.
The coming period will witness setting a cooperative strategy between Egypt and the Organization for Economic Cooperation and Development to set cooperative priorities that meet the needs of the Egyptian people and the government's Program proposed by Prime Minister Mostafa Madbouly.
American Chamber of Commerce in Egypt - Business Information Center 78 of 92 Economy Sector - Q1 2019 Report
Producers and experts in the textile industry said the establishment of a Chinese textile city in Egypt will severely harm the debt-ridden local clothing manufacturing Feb 17, 2019 industry, which operates with dated equipment and machinery.
Mankai Textile Industrial Park will contain 592 factories, making it one of the largest specialised industrial zones in the country.
To expedite formal procedures and speed the project’s implementation, its oversight was transferred from the Industrial Development Authority to the New Urban Communities. “The beginning of May will see the start of the pilot operations of the Chinese industrial city’s first-phase factories,” said Egyptian Minister of Commerce and Industry Amr Nassar said.
He added that Sadat City, 90km north of Cairo, was chosen as the site of the Chinese industrial park, which will cover 3.1 million sq. metres. It is expected that all phases of the project will be completed within four years.
The Egyptian Army Engineering Corps has completed the first half of the initial phase of the project, covering about 600,000 sq. metres, for 150 factories. It will employ state-of-the-art spinning and weaving technology.
Former Minister of Industry Tariq Qabeel, who last year signed the agreement establishing the Industrial Park, said the value of the total production of the project, once it is operating at full capacity, will be approximately $9 billion per year.
Chinese government-owned Ningxia Mankai Investment Company, which will oversee the project, signed preliminary sales contracts with 48 Chinese factories for the first phase and is negotiating with more than 60 Chinese investors to sign contracts selling more factories for the same phase.
The company is having promotional and marketing trade shows for the project in several Chinese provinces. About 25 Chinese delegations recently visited the park.
Mufrih el-Beltagy, president of Misr Ameriya Spinning & Weaving Company, said new textile and clothing city spells the end of the Egyptian textile industry, especially because the project’s output is meant for the local market instead of for exportation.
“The new factories and the textile will be using modern machines and equipment that reduce production costs and this will complicate matters for Egyptian factories and could drive them out of the market,” Beltagy added.
The Egyptian Ministry of Business Sector allocated approximately $1.5 billion to update state-owned spinning and weaving companies whose production lines have aged but financial indicators show the process has been difficult.
Of the 32 companies of the state-run Cotton & Textile Industries Holding Company, 22 are operating at losses totalling nearly $152 million.
The local textile industry is suffering from economic reform measures, especially the lifting of energy subsidies, implemented by the government more than two years ago. The industry had grown since its inception in the cradle of governmental support and protection.
Factories import Indian yarn at about $3 per kilogram, while local yarn costs about $3.40 per kilogram, of which $1.70 goes towards workers’ wages.
Furthermore, the new Chinese factories will rely on digital automation, which will greatly reduce labour costs and make matters more complicated for local manufacturers. In Egyptian textile factories, and especially the state-owned ones, about 74% of revenues go to wages, compared to 13% in international companies.
Mohamed el-Morshedi, head of the Textile Industries Chamber of the Federation of Egyptian Industries, said the Chinese Textile Industrial Park would not contribute to solving the problems of the spinning and weaving sector but would adversely affect it if production is directed to the local market.
Morshedi stressed the necessity to have the new park focus on foreign markets. “This is a step that we are expecting,” he said, “but things have not been clear so far.”
The government has begun a plan to develop the spinning and weaving sector and imported gins exceeding current production capacity. The sector’s problem, therefore, does not reside in the number of factories available but rather in low production capacity.
The Ningxia Mankai Investment Company is establishing a school to bring workers up to speed with the spinning and weaving industry’s latest technology to guarantee skilled labour to handle new production techniques in the textile park.
American Chamber of Commerce in Egypt - Business Information Center 79 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt has said it plans to auction treasury bills and bonds with a total value of EGP 181.5 billion in January, the finance ministry announced on Tuesday. Jan 03, 2019 In an official statement, the ministry said treasury bills will be offered with maturities of 3, 6, 9, and 12 months, with total values of EGP 42.5 billion, EGP 43.75 billion, EGP 42.5 billion, and EGP 46 billion respectively.
Treasury bonds with maturities of three years (December 2021) and five years (October 2023) will be offered this month, with total values of EGP 1.75 billion and EGP 2.25 billion respectively.
The ministry’s plans will include also EGP 1.25 billion in seven-year treasury bonds, maturing in August 2025, and EGP 1.5 billion in ten-year bonds, maturing in November 2028. Smart Villages Development & Management Company is negotiating with four Arab and foreign investors to launch a business hotel in the smart village with total Feb 28, 2019 investments worth 400-500 million Egyptian pounds, its CEO Ahmad Touni said.
Al-Touni told Amwal al-Ghad” that the smart villages will contribute to the investments by its share in the land, expecting to be allocated by the Ministry of Communications and Information Technology as the mediator between the government and smart villages during the first quarter of this year.
He added that the project is expected to be finished within three years.
The Smart Village is expected to become the focal point for over 500 corporations that would host over than 100,000 employees conducting their business from 100 operational buildings as it reaches its completion.
It does not lack anything except the presence of a comfortable & safe accommodation to serve all employees and visitors for long periods or terminate short missions for expatriates and foreigners knowing that the current number of employees is 50,000 in addition to more than 15,000 daily visitors.
Stretching over 700 acres of greenery and state-of-the-art buildings, Smart Villages Development and Management Company was founded in 2001 — a Public-Private Partnership (PPP). It was designed to be Egypt’s hub for technology and telecommunication entities from all over the world.
Smart Village West encompasses 72 buildings, populated by approximately 50,000 employees who work for governmental bodies, multinational corporations, telecommunication-affiliated services, technical support and incubation centers, real estate developers, financial services and banks headquarters. The performance of the Egyptian Exchange (EGX) indexes varied on Tuesday amid selling and purchasing operations by Arab and foreign investors on one hand and Jan 17, 2019 local investment funds on the other.
The market capital gained EGP 2.6 billion to reach EGP 764.8 billion.
The EGX 30 benchmark index went up by 0.84 percent to reach 13,447.12 points.
The broader EGX 70 index of the leading small and mid cap enterprises (SME) was down by 1.47 percent to reach 675.44 points.
The all-embracing EGX 100 index decreased by 1.06 percent to reach 1,702.64 points.
American Chamber of Commerce in Egypt - Business Information Center 80 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News 140 Egyptian firms will participate in the of Gulfood 2019, the world’s largest annual food and beverages trade show, at Dubai World Trade Center on from 17th to 21th Jan 29, 2019 February 2019, said head of Egypt’s Food Export Council on Monday.
The firms, which will display their high-quality products in Egypt’s 1300-sq. meter-area pavilion, are major in the field of food industries and harvests in Egypt, Hani Berzi said in statements on Sunday.
Egypt is celebrating the passage of 20 years since it first participated in this international event, director of the exhibitions department in the council Heba Soheil said. Building on its strong performance since entering the Egyptian market, Al-Ahli Bank of Kuwait-Egypt (ABK-Egypt) reported earlier this week a significant increase of 62 Feb 07, 2019 percent in net profit for 2018, reaching EGP 537 million for the financial year 2018. ABK-Egypt’s operating profit for 2018 was EGP 735 million, a 44 percent increase compared to EGP 511 million in 2017.
The bank’s customer deposits increased by 36 percent to reach EGP 24 billion, compared to EGP 17.6 billion in 2017, while gross customer loans grew 45 percent in 2018 to reach EGP 16 billion. Asset quality remained strong with non-performing loan ratio reaching 2.8 percent with a coverage of 78.76 percent, while capital adequacy ratio was robust at 14.66 percent.
Commenting on these results, Ali Marafi, chairman of ABK-Egypt, said that 2018 has proved to be a successful year for ABK-Egypt reflected in achieving a record net profit.
"ABK-Egypt has made important strategic strides and we have continued our geographic expansion within the Egyptian market," he said.
"In addition to our improved financial performance, ABK-Egypt was recognised as the fastest growing bank and most innovative bank in Egypt earlier this year. Our capital base remains robust, and we look forward to further accelerating our growth in Egypt," Marafi added.
CEO and managing director Khaled El-Salawy said, "we have aligned our services and touch points in line with customer preferences through innovative tools that make the banking experience more accessible, easier and convenient. Going forward, we aim to set new milestones, which will play an important role in strengthening our relationship with the country’s Fintech community."
"We will continue to focus on growing our market share and footprint in the country, develop our human capital within the bank and further enhance our competitive advantage across all sectors,” he added.
ABK-Egypt has established two specialised hubs for trade finance services covering east Cairo and Alexandria, with plans to add a central Cairo hub in 2019 to cater to the needs of its corporate customers.
The bank aims to expand its regional footprint to reach 57 branches by the end of 2021, which will offer modern and simplified retail services to individuals. This will be supported by advanced customer service offerings such as high-speed customer response, e-services, and innovative upgrades on ATM machines that will continue to grow in number across the country. Developing ports becomes top priority to the government. Feb 19, 2019
Dr Hesahm Arafat¡ Minister of Transportation revealed that there is a plan of developing the sea ports affiliated to his ministry and ones under the Economic Authority of the Suez Canal.
He pointed out that this program costs at least EGP 71.156 billion.
The minister affirmed that ports of Alexandria¡ Damietta and ports of the Reds Sea will be developed in the near future.
He pointed out that railways will be extended to sea ports to transferee more goods into and out those ports.
It is worth to mention that Egypt has thousand kilometers of coasts look over the Mediterranean and Red Seas
American Chamber of Commerce in Egypt - Business Information Center 81 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Tax proceeds from the Egyptian General Petroleum Corporation (EGPC) and Suez Canal rose by 29.3% year-on-year in the first five months of fiscal year 2018/2019, Jan 03, 2019 data by the Ministry of Finance (MoF) showed on Wednesday.
Total tax receipts from the two corporations amounted to EGP 25.87 billion during the period from July to November 2018, versus EGP 20.04 billion in the same period of 2017, according to a recent report.
Tax proceeds from the EGPC recorded around EGP 11.4 billion at the end of November, versus EGP 9.4 billion in the corresponding five-month period of FY17/18, the ministry highlighted.
Meanwhile, tax proceeds from the Suez Canal stood at EGP 14.47 billion during the July-November period of the current fiscal year, versus EGP 10.6 billion in the prior- year period.
The MoF also posted that Egypt’s tax revenues increased by EGP 47 billion or 23% year-on-year during the first five months of FY18/19.
The North African nation has logged EGP 250.9 billion in tax receipts in the period from July to November 2018, versus EGP 203.9 billion in the corresponding period of 2017.
The country’s total revenues during the five-month period rose to EGP 321.07 billion, compared to EGP 252.6 billion in the same period of FY17/18. The First Deputy Director-General of the International Monetary Fund (IMF), David Lipton, hailed on Wednesday Egypt’s progress in implementing the economic reform Jan 27, 2019 programme.
Lipton said what Egypt has done is appreciated by the IMF and expresses a political will that has a vision and is keen to move ahead with efforts to build a strong and competitive economy.
This came during Lipton’s meeting with Prime Minister Moustafa Madbouly, in the presence of the ministers of investment and international cooperation and tourism, on the sidelines of the World Economic Forum in Davos, Switzerland.
Madbouly expressed the appreciation of President Abdel Fattah al-Sisi for the cooperation between Egypt and the IMF, as well as the successes that have so far benefited the Egyptian economy, which has now gained a competitive position and is attractive to investments.
Madbouly said the government is keen to continue the success of the economic reform programme to maintain the momentum generated by the implementation of the programme, and therefore will continue to receive technical support from the IMF after the conclusion of the program.
Lipton welcomed this trend, stressing that this will preserve the gains of the programme and prevent any decline of growth achieved by Egypt.
Egypt began implementing the IMF reform programme in November 2016. The international lender made a deal to provide Egypt with a $12 billion loan in exchange for wide-ranging structural economic reforms.
The reforms include a raft of measures such as devaluing the Egyptian currency, loosening capital controls, ending energy subsidies, reforming public enterprises and overhauling monetary policy – all in a bid to restore economic stability and long-term growth.
The first step the IMF commended was the flotation of the pound, a measure taken in November 2016. The following year Egypt slashed parts of its energy subsidies, resulting in a 60 percent surge in fuel prices.
The IMF has since recommended that the government continue removing subsidies on fuel. French investments in Egypt now estimated at Euro 4.5 billion divided on 473 projects spread over a wide variety of sectors & industries. That includes the I.T., agro Jan 27, 2019 industries, construction & cement industries, new & renewable energy industry, transport & communication industry, banking & insurance, aviation industry, water desalination & purification, infrastructure & tourism, railways & traction industry, Annual bilateral foreign trade reached lately Euro 2 billion.
American Chamber of Commerce in Egypt - Business Information Center 82 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt’s Social Solidarity Ministry said on Wednesday it is relocating 82 families from Cairo informal area of Manshiyet Nasser to Asmarat City district after a Monday Jan 31, 2019 rockslide destroyed some homes in the area.
According to Minister Ghada Wali, the families whose homes were affected by the rockslide will be relocated to residential units built by Nasser Social Bank in Asmarat City south of Mokattam.
Manshiat Nasser is a densely-populated informal housing area built adjacent to Mokattam hill in south Cairo.
Egypt has been pushing with efforts to eliminate informal housing through the provision of adequate alternatives to residents, including the newly constructed Asmarat City near Mokattam.
There were no reported injuries or fatalities as a result of the rockslide.
In press statements, the head of Manshiyet Nasser neighborhood, Mohamed Abdel-Galil, explained that the area affected by the fall of mountainous crusts was uninhabited at the time of the incident because it was already evacuated of residents by the authorities in accordance with the recommendations of the country’s Geological Scientific Committee. The Arab Brazilian Chamber of Commerce (ABCC) has announced the inauguration of its first regional headquarters in Dubai. Feb 24, 2019
The new office will support Arab businessmen that desire to invest in Brazil, along with the services it will offer to Brazilian businessmen in the Arab World, according to an official statement released on Saturday.
“Through this new office, the ABCC will now find it easier to mark its presence in the Arab region—living up to our vision of reinforcing ties between Brazil and the Arab world,” ABCC’s president Rubens Hannun commented.
ABCC will offer a variety of services through its new headquarters in Dubai, among them the identification of business partners and business opportunities; feasibility studies and potential analysis for investments; custom consulting; and the promotion of members’ products and services in Arab and Brazilian media.
Hannun concluded: “The new office is expected to help bring us closer to our members--giving us the opportunity to aid them in managing potential crisis situations, problems and addressing issues in the region, while also providing them with better, improved and even newer services”. Ghabbour Auto (GB Auto) on Thursday announced it turned a profit during the full-year 2018 on the back of growing sales. Feb 28, 2019
The Cairo-based car assembler and distributor’s profit amounted to EGP 636.73 million ($36.35 million) last year, compared to a loss of EGP 723.6 million ($41.31 million) in 2017, including minority shareholders’ rights, the company said in a filing to the Egyptian Exchange (EGX).
The Egyptian automaker and importer’s revenues grew to EGP 25.8 billion in 2018, from EGP 17.6 billion in the prior year.
GB Auto posted EGP 15.8 million in standalone losses last year, against a profit of EGP 703.11 million in 2017.
During the first nine months of 2018, GB Auto’s profits amounted to EGP 515.28 million, including minority shareholders’ rights, versus losses of EGP 475.5 million in the corresponding period a year earlier.
American Chamber of Commerce in Egypt - Business Information Center 83 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News Egypt will issue new green and Asian currency-denominated bonds for the first time in addition to dollar and Eurobonds within the financial year 2018/2019, said the Jan 29, 2019 Finance Ministry on Monday.
Four international investment banks, Goldman Sachs, Citibank, JP Morgan and HSBC, have been selected by Egypt to issue the dollar-denominated bonds.
Another four international investment banks- BNP Paribas, Natixis, Alex Bank San Paolo and Standard Chartered- will issue the Eurobonds, the statement said.
The National Bank of Egypt and Banque Misr assisted in managing the issuance.
In media statements earlier this month, Finance Minister Mohamed Maait said that his ministry had received cabinet approval for $3 billion to $7 billion in foreign bond offers.
In December, Maait that said that Egypt was looking for at least two foreign currency bond issuances in the first quarter of 2019.
This is the first time Egypt has released green bonds, which are earmarked for use in environmental projects.
Egypt’s foreign debt stood at $92.64 billion at the end of the previous financial year in June. Its borrowing requirement for the repayment of external debt is $10.51 billion in the current financial year. Kuwaiti investments in Egypt, estimated now at $16 billion +, assure they place it among the major investor in the country & their highly seen weight and strength to Feb 27, 2019 shape those relations. The issue is not only supported by Kuwaiti funds or Banks, nor by the warm relations to the Kuwaiti people & the ruling family but rather by the chemistry flowing in the blood of both countries' people and rulers. Egypt is currently exporting 520 million cubic feet of liquified natural gas (LNG) per day from its Idku export plant, a petroleum ministry official said on Wednesday. Jan 03, 2019
The country had been exporting 300 million cubic feet of LNG, the official said. The gas is exported by Malaysia’s Petronas, Royal Dutch Shell, and Egypt’s two main state oil and gas companies. Egyptian billionaire and chairman of Orascom Investment Holding Naguib Sawiris denied on Wednesday cancelling the deal of managing the pyramids of Giza area, Jan 27, 2019 according to Mubasher.
The company is set to receive the site on 29 January, the Egyptian tycoon posted on Twitter.
In December, Orascom announced it was willing to develop the sound and light shows at the pyramids of Giza area if the Egyptian government offer the project again.
The company signed a licensing contract with the Supreme Council of Antiquities in December to operate and provide services at the visiting area of the pyramids of Giza.
American Chamber of Commerce in Egypt - Business Information Center 84 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News President Abdel Fatah Al Sisi issued decree No. 420 of 2018 approving an agreement between the governments of Egypt and Russia concerning the establishment and Feb 03, 2019 operation of the Russian Industrial Zone in the Suez Canal Economic Zone in Egypt, which was signed in Moscow on May 23, 2018.
The decree was published in the official gazette Al-Waqa'i' al-Misriyya on Jan. 23, 2019. As per the Egyptian constitution, any presidential decree shall be published in the official gazette to come into force.
Since February 2015, Egypt and Russia have been negotiating $7 billion worth of Russian investments in the Russian Industrial Zone (RIZ) project in the East Port Said region.
RIZ would be established on an area of 5.25 million square meters and will be built over three phases, according to a statement issued by the Suez Canal Economic Zone.
The project will be conducted on three phases, the first phase involves 1 million square meters, will be carried out by a Russian developer who will also work on attracting Russian investors and companies throughout 2018 and 2019. This phase will create 7,300 jobs in the construction field.
The second phase will develop 1.6 million square meters and will be finished by 2022, creating 10,000 jobs, while the third phase will develop 2.65 million square meters and generate 17,000 jobs.
The three phases are expected to be finished by 2031, when Russian companies will start operations, providing some 35,000 direct and indirect jobs, the statement said. Commercial International Bank (CIB) (COMI) announced in a statement sent to EGX, the audited financial results for the fiscal period starting January 1, 2018, and Feb 05, 2019 ending December 31, 2018.
The company posted consolidated net profits of LE9.581 billion, versus net profits of LE7.539 billion in the same period a year ago, taking into account the minority rights.
Moreover, it posted standalone net profits of LE9.555 billion, versus net profits of LE billion in the same period last year.
It is worth to mention, the Board suggested dividends attributable to shareholders of LE2,143,177 for FY2018. A number Egyptian mortgage finance firms pumped 911 million Egyptian pounds ($51.5 million) in favour of low-income citizens at the end of January among Central Feb 05, 2019 Bank of Egypt (CBE) mortgage initiative.
These remarks were made by May Abdel Hamid, Chairman of Egypt’s Mortgage Finance Fund (MFF), on Monday.
Egypt’s El-Taamir Mortgage Finance Company- Al-Oula captured around 39.4 percent out of the funds of mortgage finance firms as part of CBE’s initiative to register 358.7 million pounds at the end of last January, Abdel Hamid added.
American Chamber of Commerce in Egypt - Business Information Center 85 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News The Ministry of Petroleum awarded Shell Egypt N.V. (Shell) five Production Sharing Contracts (PSC) for three concessions in the Western Desert and two concessions in Feb 18, 2019 the Offshore Nile Delta. The award of five blocks is a result of a competitive bid process with other operators in country. Those contracts were signed in light of Shell's mission to increase its strategic investments in Egypt. Shell Egypt was awarded the blocks in February 2019 as part of the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) 2018 international licensing rounds. The record award results are in line with Shell Egypt's growth strategy, aiming to expand the existing footprint and secure a material position in the country. This is evident by the company increasing its onshore natural gas production by driving up activities over the last two years, and launching a new offshore drilling campaign- phase 9B - in the Mediterranean last year, both bringing additional production onstream ahead of schedule and also making a significant offshore gas discovery with its SwanEast 1 well. Shell also recently pioneered the use of Fishbones technology in the Western Desert, where its Bed 9G well tested at significantly higher rates than expected, unlocking tight gas in the first pilot of its kind. In addition, Shell is currently undertaking the first endeavor in Egypt to unlock tight gas in deep hard rock. "Shell is building on more than 30 years of expertise in exploration and production in the Western Desert, a delivery heartland for us over many years, through the Badr El Din Petroleum Company. We are very proud of winning the additional exploration acreage which fits well into Shell's growth strategy in Egypt. At the same time, we welcome the opportunity to grow our position and footprint in the Nile Delta. Shell has a strong infrastructure position with the West Delta Deep Marine concession and Egyptian LNG facilities and has firm growth plans to expand its offshore production through an ambitious exploration programme", said Eng. Gasser Hanter, VP and Country Chairman for Shell Egypt, adding, "We are committed to start the exploration operations as soon as possible after final ratification, and will strive to bring any commercial discoveries onstream in record time, similar to what we did in our North Um Baraka concession where first gas was brought onstream only 6 months after the concession award and only 40 days after discovery." The Head of the Suez Canal Authority (SCA) and the Suez Canal Economic Zone (SCZone) Mohab Memish said Thursday that the volume of achievements attained over Jan 08, 2019 the past two years in the SCZone made it one of the most attractive regions for investment in Egypt due to its distinguished geographical location.
This remark came during Memish's meeting with SCA Deputy Head Mohamed Shabaan Mar'ie who just assumed his new post.
During the get-together, Mamish thanked the former SCA deputy head Mahfouz Taha on the efforts exerted during his tenure, said a statement released by the SCZone.
Mamish called for exerting utmost efforts to attain more achievements in the SCZone which is one of the national mega projects in Egypt, the statement read.
International Monetary Fund Managing Director Christine Lagarde said on Friday that she will recommend that the Fund’s executive board approve a fourth review of Jan 27, 2019 Egypt’s $12 billion loan programme, a move expected to unlock a $2 billion disbursement.
Lagarde said in a statement the board will meet in coming weeks to discuss the review. She commended Egyptian authorities for reforms that have put the country’s budget deficit on a declining trajectory, and that have helped to reduce its unemployment rate to 10 percent, the lowest since 2011. Egypt’s domestic liquidity rose slightly last December to EGP 3.62 trillion, versus EGP 3.58 trillion in November 2018. Feb 03, 2019
Year-on-year, domestic liquidity increased 13%, versus EGP 3.2 trillion in December 2017, data by the Central Bank of Egypt (CBE) showed on Sunday.
The CBE stated that Egypt’s foreign reserves fell by $1.962 billion, or 4.4% month-on-month, in December.
The North African country’s net foreign reserves recorded $42.55 billion at the end of December, versus $44.51 billion in November, the CBE posted on its official website.
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Economy - Non Tenders Section Type Description Date Published Business News Mercedes-Benz looks forward to resuming production in Egypt soon, a senior official of the German company said on Friday. Jan 13, 2019
The global vehicle manufacturer is also considering additional models in Egypt, Markus Schafer, member of the Divisional Board of Mercedes-Benz Cars, told Egyptian Prime Minister Mostafa Madbouly, who is visiting Berlin.
Madbouly said that Cairo is seeking cooperation with Mercedes-Benz to manufacture self-driving and electric cars.
He suggested that the company dispatch a delegation to Egypt to investigate investment opportunities.
He cited new investment incentives and Egypt's free trade agreements with several countries.
Madbouly also held a meeting with representatives of German recycling companies in Berlin on Saturday, in the presence of Egypt's ambassador to Germany Badr Abdel Ati.
During the meeting, the CEO of Germany's largest municipal waste management company Berliner Stadtreinigungsbetriebe (BSR), explained to the premier how the company collects and recycles about 8 million tons of household and solid waste in Berlin, cabinet spokesman Nader Saad said in a statement.
BSR has 16 organic waste recycling units and six large collection points for hazardous waste, and runs four power-generating factories, the German company chairman said.
The state-owned company, which hires some 5,400 workers, offers its recycling services for Berlin residents at affordable prices, the CEO said.
For his part, the prime minister praised the German company’s system, which he hoped will be applied in large Egyptian cities, the spokesman added.
The prime minister also listened to a detailed presentation from representatives of a German alliance of three companies specialised in hazardous waste disposal, garbage recycling, and waste-to-energy facilities.
The three German companies expressed their willing to invest in the field of garbage recycling in Egypt, the spokesman noted.
Madbouly urged the Egyptian embassy in Berlin to arrange a meeting with BSR and the tripartite German alliance officials with the ministers of military production, environment and local development to discuss potential cooperation offers.
The Egyptian ministers of military production, environment and local development will visit Germany this month.
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Economy - Non Tenders Section Type Description Date Published Business News Seoul-based LG Electronics is looking to invest $15 million in Egypt. Jan 15, 2019
The South Korean electronics company is planning to expand its current production lines in Egypt after its investments volume stood at $240 million, managing director for LG Egypt Don Kwack said.
Kwack remarked that this is the best time for investing in Egypt, according to a statement by the Egyptian investment ministry.
There are many different investment opportunities in Egypt, he added, pointing out that LG’s exports in the North African nation reached $200 million last year, accounting for 75% of the company’s total production.
LG aims to boost its export base by opening new markets in Africa amid Egypt heading the 2019 African Union, Kwack noted.
For his part, LG Egypt’s vice chairman said that the company is planning to expand in microwaves, fridges, and washing machines production.
Omar stressed that the company’s products are not only dedicated for the local market, but they are also being exported to several Arab states such as Libya, Syria, Tunisia, and Morocco, as well as the African countries under the logo of “Made in Egypt”.
This came as a result of a meeting between the Egyptian investment and international cooperation minster Sahar Nasr and LG’s top officials. Egypt’s National Authority for Tunnels (NAT) has signed a $1.2 billion agreement with China’s EximBank to finance a light rail system. Jan 17, 2019
The line of the new electric train will begin from an industrial city on the outskirts of Cairo to reach the New Administrative Capital, Egypt’s transportation minister Hesham Arafat Said.
The loan has a 1.8% interest and a five-year maturity, Arafat added, noting that $461 million of the financing will be allocated to infrastructure, while the other $739 million will cover the projected train’s cost.
The rail line will cover 67.846 kilometres and comprise 11 stations (61 km surface tracks, 6.1 km over an upper bridge, and 0.665 km in tunnels).
Egypt’s giant Zohr offshore gas field increased output to 2.1 billion cubic feet per day (bcf/d) and partners in the project will invest $1.2 billion within the financial year Feb 10, 2019 2019/2020 to intensify development activities in the Zohr area, Oil Ministry said on Wednesday.
The largest gas field in the Mediterranean, Zohr was discovered in 2015 by Italy’s Eni and began production in late 2017. It contains an estimated 30 trillion cubic feet of gas.
Zohr development costs in financial year 2018/2019 are seen at $3.2 billion, the ministry added.
American Chamber of Commerce in Egypt - Business Information Center 88 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News BP’s Egyptian Giza and Fayoum fields, part of its West Nile Delta Development, are expected to hit 700 million cubic feet of gas per day by April, Egyptian Petroleum Feb 12, 2019 Minister Tarek el-Molla said on Monday.
BP announced earlier on Monday that the second stage of the West Nile Delta had begun production. It said output at several fields in the area would help push production to almost 1.4 billion cubic feet per day this year.
In a statement issued on Monday by BP, its chief executive Bob Dudley said that the important project start-up benefitted from the excellent working relationship between BP and the Egyptian government. “With the second stage of West Nile Delta now online, BP has now safely brought 21 new upstream major projects into production over the last three years, keeping us on track to deliver 900 000 boe/d by 2021.” He added.
The West Nile Delta development includes a total of five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks.
It was originally planned as two separate projects, but BP said in its statement that it and its partners realised the opportunity to deliver it in three stages, accelerating delivery of gas production commitments to Egypt.
Egypt will auction $1 billion in one-year dollar-denominated treasury bills on Monday, the central bank said on Thursday. Feb 10, 2019
The auction will be settled on Feb. 12.
Egypt sold $854 million in dollar-denominated bills at an average yield of 3.797 percent at a similar auction on Jan. 6. Dollar T-bills worth $1.075 billion are due to mature on Tuesday.
Officials say they are trying to diversify the country's sources of foreign debt and lengthen its average maturity.
Egypt's short-term dollar-denominated debt had fallen to about $14 billion as of the end of 2018, the deputy finance minister said on Sunday. The head of the Organisation of Economic Co-operation and Development (OECD) Angel Gurría has hailed the economic reforms that adopted by Egypt over the Jan 20, 2019 past four years.
The OECD secretary-general made the remarks during the inaugural session of the "Private Investment for Sustainable Development" conference which is currently being held in Paris as part of the week on the role of responsibilities of the private sector in achieving the Sustainable Development Goals (SDGs).
Gurria cited Egypt's promising economic programme which is aimed at achieving inclusive growth with effective and sustainable participation of all parties.
The legislative reforms that have been carried out by Egypt recently created a suitable business climate that is capable of luring more investments to the country, Gurría said.
In her speech, Egyptian Investment Minister Sahar Nasr underlined the major role played by the private sector in achieving the SDGs at both national and international levels, said a statement released by the ministry.
Nasr said that Egypt is committed to working on achieving fair economic and social development by engaging all parties concerned with the development file.
Nasr highlighted Egypt's reforms which created an environment that encourages the private sector to participate in the development process, citing the investment law which offers tax incentives ranging between 30 and 50 percent for investing in the national projects and small and medium-sized enterprises.
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Economy - Non Tenders Section Type Description Date Published Business News President of Ukraine Petro Poroshenko believes that Egypt and Ukraine can achieve a trade turnover of $2 billion. Feb 17, 2019
Egypt is a very good trading partner from the point of view of the agrarian market and from the point of view of possible export of engineering products. Today it’s absolutely realistic for us to reach the figure of $2 billion, Poroshenko told journalists in Munich on Friday.
Poroshenko noted that the agreements reached during his meeting with Egyptian President Abdel Fattah al-Sisi during the Munich Security Conference provide for extensive cooperation in the military-technical sector and in the economy, as well as in the fields of education and culture.
I raised the issue of the safety of Ukrainian tourists. Even in more difficult times, when many refused to fly to Egypt, we still had the opportunity for Ukrainians to visit Egypt. Today, the level of safety is already much higher, Poroshenko noted.
He also stressed that Ukraine and Egypt are coordinating their actions to effectively respond to possible terrorist threats. Trade exchange between Egypt and Japan rose 30.5 percent during 2018, recording $1.26 billion, compared to $969 million during 2017, the Egyptian Commercial Mar 14, 2019 Service Office said.
The office added that Egypt’s most significant exports to Japan included Petrol, ready-made clothes, carpets, medicinal plants, cotton, vegetables and food products.
Egypt’s imports from Japan included cars, tractors, machinery, electrical appliances, iron, steel, plastics and articles thereof.
Minister of Investment Sahar Nasr met with a high-profile Japanese business delegation on Monday, where they discussed their country’s keenness to increase investments in Egypt.
The delegation said that Japanese investments in Egypt saw a surge by 74 percent in 2018.
Nasr stated that around 23,000 companies have been established, with a total capital of LE 60 billion, since President Abdel Fatah al-Sisi inaugurated the center in February 2018, adding that those new companies secured more than 90,000 jobs, she noted.
The delegation comprises a number of representatives of major Japanese companies, including Hiroyuki Ishige, Chairman and CEO of Japan External Trade Organization (JETRO) Yoshifumi Omura, chief Representative of JICA Egypt Office, and a senior managing director at Japan Bank for International Cooperation Yasushi Hasegawa, as well as members of the Egypt-Japan Business Council.
American Chamber of Commerce in Egypt - Business Information Center 90 of 92 Economy Sector - Q1 2019 Report
Economy - Non Tenders Section Type Description Date Published Business News US-based Halliburton has signed an agreement with the Egyptian Ministry of Petroleum & Mineral Resources (MoP) to support a specialized development program for Mar 17, 2019 Egypt’s middle management and young professional employees.
The memorandum of understanding (MOU), which aligns with the ministry’s Oil and Gas Modernization Program, is a collaborative agreement under which Halliburton will utilize its strength in human capital development to provide on-the-job training for Egyptians who show the potential to be future leaders in the oil and gas industry.
Additionally, Halliburton will customize a development program for select participants to enhance their capabilities and assist Egypt in its role as a leading regional oil and gas hub.
"We are excited to collaborate with the Ministry to improve the development of its local workforce," said Halliburton chairman, president and CEO Jeff Miller. "We have a 50-year, established working relationship with Egypt, and this MOU is a testament to our ongoing commitment to the country and its efforts to build its presence in the oil and gas industry."
"As we embark on our Modernization Program to create a more conducive environment for business and investment in Egypt, one of the most important pillars of this effort is to build world-class human capital," said Tarek El Molla, Egypt’s Minister of Petroleum & Mineral Resources. "We believe Halliburton’s robust employee development experience will contribute greatly to positioning our local talent for success and sustaining the promising vision of our ministry."
"This MOU is a wonderful way to celebrate Halliburton’s 100th anniversary and our rich history of developing future leaders," said Halliburton vice president of Egypt and Libya Colby Fuser. "It embodies our core values of creativity and collaboration and helps set us on the right path for the next century."
Founded in 1919, Halliburton celebrates its 100 years of service as one of the world's largest providers of products and services to the energy industry. Nissan Motor Company is looking to launch new models in the Gulf as part of a plan to ratchet up its market share in GCC countries and Egypt to more than 20% by Mar 19, 2019 2022.
The Japanese automaker’s current market share in the Gulf and Egypt stands at 16% and 15%, respectively, Bloomberg News reported on Tuesday.
“We want to double our industrial footprint in the Middle East, Africa and India by 2022,” Peyman Kargar told the New York-based news agency in an interview.
He added that Nissan, which currently comes in third place in Egypt and the second in the Gulf, is looking to boost its production facilities in the region to more than six.
The Yokohama-based auto manufacturer has three factories in Egypt, India, and South Africa, and has plans to add other two plants in Pakistan and Algeria.
Kargar pointed out that Nissan has invested $200 million in Egypt since it began operating the Arab world's most populous country in 2005, and it plans to inject more investments in the company’s fiscal year starting in April.
The auto manufacturer plans to raise the full capacity of its plant in Egypt to 28,000 cars per year, instead of the current 22,000.
The Japanese company is facing a challenge in the Egyptian market regarding the government’s move to exempt imported cars from the European Union (EU) from customs duties in the short and medium term.
“We asked them to support the local industry to be able to compete, to not put us in a less competitive situation,” Peyman commented.
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Economy - Non Tenders Section Type Description Date Published Loans & Grants The Managing Director of the International Monetary Fud (IMF) Christine Lagarde said on Saturday that the Egyptian economy has good potential for growth, praising Feb 10, 2019 the fundamental financial and monetary reforms the government has implemented. In a meeting with Egypt's Finance Minister Mohamed Maait on the sidelines of the fourth annual forum of the Arab Monetary Fund in Dubai, Lagarde added the government's reforms have placed the economy on the right track and protected the country from a risky and gloomy future.
On Tuesday, Egypt received the fifth tranche of the IMF’s $12 billion loan following the IMF’s executive board approval of its fourth review of Egypt's economic reform programme.
Lagarde explained that she understood that the reforms had affected the middle class in the country and that the economic potentials should concentrate on this class in the coming period.
For his part, Maait said that the government acknowledges the fact that more efforts should be exerted to ensure the sustainability of the reforms, adding that the government pays great attention to investment in human resources.
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