Al Ahly Pharos

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

In line with our expectation, the Central Bank of Egypt left interest rates unchanged on Thursday. Net foreign reserves reached a new high of USD46.6 billion at the end of August 2024, up from July’s record figure of USD46.5 billion. The three-day Forum on China-Africa Cooperation, saw the government sign contracts and MoUs with Chinese companies amounting to over USD1.1 billion. The Egyptian Gene...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Market Overview  ETEL DOMT OLFI SUGR AMER Prepared by: Mayada Amin- CETA, CFTe

Egypt and Turkey seek to boost trade from USD5 billion to USD15 billion over the next five years. The two countries signed 18 MoUs to strengthen cooperation on transport, energy, defense, education, tourism, health, culture, agriculture, and finance. The Central Bank of Egypt’s (CBE) Monetary Policy Committee is meeting later today to review interest rates. We remind you that we expect the CBE to...

Market Overview  JUFO FWRY ALCN ABUK OLFI prepared by: Mayada Amin - CETA, CFTe

*Key news articles for today*   BP plans to invest USD400 million during the current fiscal year to drill two new wells at the Raven natural gas field in its North Alexandria concession. The two wells will add a combined daily 400 million cubic feet of gas to its output.  The ratio of external debt service to public revenues increased during the last fiscal year to 35% from 14.8% in FY22/23. Exter...

*Key news articles for today*   The headline PMI rose in August to 50.4, rising from 49.7 in July, to signal the first improvement in the health of the non-oil private sector since November 2020. The industry, transport, and investment ministries are mulling the creation of a freezone for African investors as part of the government’s long-term goal of increasing trade with the continent. The IMF r...

Market Overview  ABUK JUFO SWDY prepared by: Mayada Amin - CETA, CFTe

UAE’s Masdar, Infinity Power, and Hassan Allam Utilities will set up USD900 million worth of solar power plants in Upper Egypt with a combined capacity of 1 GW after the government greenlit the move, according to media.  Tunisian-owned oil and gas company HBS International plans to invest USD65 million in gas development and production in the southwest El Alamein area of the Western Desert this ye...

Market Overview  ABUK EGCH SKPC ORAS MASR prepared by: Mayada Amin- CETA, CFTe

The MPC will meet on Thursday, 5 September, to decide on key interest rates. We expect the CBE to keep the current rates on hold in its upcoming meeting on 5 September, with a potential rate cut in 4Q24, or - more conservatively - in 1Q25. Net foreign asset surplus expanded 3.5% to USD13.3 billion in July, up from USD12.9 billion in June. The government has purchased a “large volume” of fresh oil...

Market Overview  EFIH EMFD TMGH MASR prepared by: Mayada Amin - CETA, CFTe

Work is underway to make it possible for the government to commit to monthly payments to foreign companies working in the oil and gas sector, according to a cabinet statement, in a bid to boost investor appetite. The Finance Ministry will set up a central unit to facilitate customs and tax procedures for companies involved in automotive manufacturing under a decision issued by the Finance Minister...

Market Overview  SWDY  ESRS ABUK GBCO EAST prepared by: Mayada Amin- CETA, CFTe

Head of the Trade Ministry's Commercial Representation Authority discussed potential investments in Egypt with representatives from major Indian companies. The IMF said that Egypt may abandon quarterly fuel price increases in exchange for a firm commitment to raise prices to levels “Cost recovery” by the end of the year. The Ministry of Finance is considering raising the zero bracket of incom...

Market Overview  BTFH GBCO ETEL TMGH ATQA prepared by: Mayada Amin- CETA, CFTe

The International Monetary Fund is set to conduct the fourth review of our USD8 bn loan program by the end of September or in October at the latest. The state is reportedly studying a plan to provide EGP1.25k in cash assistance per family, while reducing the number of goods subsidized under the ration card system.  The General Authority for Investment and Free Zones (GAFI) and representatives of a...

Market Overview  HRHO ORAS FWRY  prepared by: Mayada Amin- CETA, CFTe

A consortium of the UAE’s Al Shafar General Contracting (ASGC) Group and Saudi Egyptian Developers (SED) has backed out of an agreement to work on the USD5 billion redevelopment of the former National Democratic Party (NDP) headquarters in central Cairo due to increased construction costs following the EGP float. Alexandria Port Authority is gearing up to hand over three maritime terminals to loca...

Market Overview  SKPC ESRS FWRY prepared by: Mayada Amin- CETA, CFTe

The Cabinet approved presidential decrees regarding three financing agreements with the EU, which will see Egypt unlock over EUR1 billion in funding. The state aims to add 28 GW of renewable energy to the country’s energy mix over the next 5-7 years. The government plans to announce “revolutionary” tax reforms next month, Prime Minister said, adding that the reforms aim to meet investor demands an...

Market Overview  BINV ORHD GBCO TMGH PHDC Prepared by: Mayada Amin - CETA, CFTe

There are no enforced FX withdrawal limits in the works. “Each bank has the discretion to determine its policy” for FX withdrawals, the CBE said in a statement yesterday following reports that led to online speculation that enforced limits are in the works. Prime Minister Moustafa Madbouly yesterday presided over a meeting where government officials reviewed the draft laws that will be presented a...

Market Overview  GBCO EAST BTFH Prepared by: Mayada Amin- CETA, CFTe