Al Ahly Pharos

Sources told local press that Abu Dhabi Developmental Holding Company, the sovereign arm of the UAE, signed the final contracts with the Sovereign Fund of Egypt to purchase stakes in 3 government companies in the pre-IPO fund portfolio, which are “Ethydco” and “National Drilling.”, and “Elab”. The sources added that the value of the deal, amounting to USD800 million, will be transferred immediatel...

Market Overview  COMI ABUK AMOC ATQA EFID EGCH MFPC ALCN Prepared by: Mayada Amin - CETA, CFTe

The CBE's MPC is scheduled to meet on Thursday, 2nd November, to decide on interest rates. We expect the CBE to prefer to keep rates unchanged, until further notice, linking interest rate movement to any probable currency movement. The Cabinet said that the country’s gas imports have fallen to zero from a previous 800 million cubic feet of gas per day, naming it as one of the main reasons for...

The CBE's MPC is scheduled to meet on Thursday, 2nd November, to decide on interest rates. We expect the CBE to prefer to keep rates unchanged, until further notice, linking interest rate movement to any probable currency movement. The Cabinet said that the country’s gas imports have fallen to zero from a previous 800 million cubic feet of gas per day, naming it as one of the main reasons for...

Market Overview 

The CBE has eased its restrictions on credit card use abroad. The new rules require users to provide proof that the card was used while abroad. The CBE’s Monetary Policy Committee will meet on Thursday to review rates. The government is drafting legislation that would introduce a carbon tax.  The Planning Ministry said that private-sector firms will have to pay their employees a gross wage of at l...

Market Overview  COMI HRHO ASCM CLHO  EAST  HELI  MTIE PHDC Prepared by: Mayada Amin- CETA, CFTe

Market Overview  PHDC HRHO ORWE DSCW EFIC EMFD HELI prepared by: Mayada Amin- CETA, CFTe

The war in Gaza will negatively impact the economies of neighboring countries, including Egypt, Jordan, and Lebanon, according to the Managing Director of the International Monetary Fund (IMF). Plane ticket purchases to Egypt, Jordan, and Lebanon have plummeted since the start of the war in Gaza, according to travel analysis firm ForwardKeys. The EBRD is considering making a USD40 million equity i...

Market Overview  COMI HRHO SWDY ABUK Prepared by: Mayada Amin - CFTe, CETA

The CBE could receive another USD5 bn in deposits from the UAE and Saudi Arabia to top up its foreign reserves. The funds will likely be converted into investments over several years.   Egypt aspires to attract USD25 billion in FDI within 5 years, with a goal of attracting foreign investments of about USD12 billion during the current FY2023/24.   Xinxing Cathay International Group wants to scale b...

The government wants to secure as much as USD3 bn in fresh debt financing by the end of the fiscal year, this is set to include: USD 1.5 bn from a range of financial institutions; USD 500 mn from Deutsche Bank and the Arab Banking Corporation; The equivalent of USD 500 mn from the recently-closed panda bond; Another USD 500 mn from an upcoming samurai bond. Egypt's 5-year CDS rate rose to 18....

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Suez Canal Authority (SCA) announced an increase in transit fees by 5-15% starting as of 15 January 2024. The CBE has asked banks to impose limits on the use of credit cards for foreign-currency transactions on concerns of misuse. Credit card holders will only be allowed to make USD250 a month in local FX transactions. Chinese companies could invest as much as USD15.5 bn in the Suez Canal Economic...

Market Overview  HDBK EXPA HELI ORHD SKPC EAST Prepared by: Mayada Amin- CETA, CFTe

Egypt issued the first sustainable Panda bonds in the Middle East and North Africa at CNY3.5 billion (USD500 million) with a yield of 3.5% over three years.  Suez Canal revenues jumped by 34.7% to hit USD9.4 billion up from USD7 billion, and are projected to reach USD10.3 billion by the end of 2023, according to Chairman of the Suez Canal Authority. The House of Representatives gave final approval...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Saudi Arabia and the United Arab Emirates plan to renew their deposits with the Central Bank of Egypt that amount to more than USD10 billion and are due next year.  The House approved amendments to the Income Tax Act that would raise the tax exemption threshold by 25% to EGP45k from EGP36k. It also approved a draft bill that will amend the 2022 law to raise the exceptional cost of living allowance...

Market Overview  ALCN EGCH HDBK RMDA ACGC EKHOA CCAP SWDY ETEL Prepared by: Mayada Amin- CETA, CFTe

The government is in talks with the IMF to raise its USD3 billion loan program to more than USD5 billion.  The government expects to borrow at least USD1.5 billion between now and the end of the year, Minister of Finance said. This includes the planned USD500 million issuances of CNY-denominated bonds in October and JPY-denominated bonds in November.  The IMF expects our budget deficit to widen si...

Market Overview  ABUK SWDY EGCH PHAR ORWE prepared by: Mayada Amin - CETA, CFTe

Egypt's IMF loan review will come before the end of the year, Finance Minister said, without elaborating further. Head of the House Planning and Budget Committee, said the EGP would be pegged to a basket of hard currencies including the USD, EUR, JPY, and GBP, as well as gold, adding that the authorities will likely reach an agreement with the IMF in 1Q2024 on a new currency regime. The IMF c...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The IMF lowered its forecast for Egypt's real GDP growth to 3.6% in 2024,  down from the 4.1%. Expectations for inflation in 2023 were decreased to 23.5% down from 24.4%, while increasing to 32.2% up from 32% in 2024. Annual urban inflation climbed from 37.4% in August to 38% in September. On a monthly basis, urban inflation accelerated from 1.6% in August to 2% in September. Core Inflation,...

Market Overview  CIEB ADIB HRHO CCAP BTFH EGCH ABUK FWRY prepared by: Mayada Amin - CETA, CFTe