Al Ahly Pharos

The letters of credit system for imports will be cancelled within two months in coordination with the CBE. The Trade and Industry Ministry will focus on no more than seven priority sectors. These include chemicals, engineering, textiles, building materials, food and agriculture, meds, and furniture. The incentives include a 55% tax cut on income generated by projects in the sectors, to be rebated...

- Market Overview - COMI - CIEB - CLHO - SWDY - TMGH -Prepared by : Mayada Amin - CETA, CFTe

Correction: The PM referred to the coordination with Paris Club and some Arab states back in the early 1990s, which had resulted in the debt relief of USD43 billion of Egypt's external debt through a multi-year program that is still in effect, including a debt-investment swap, but did not refer to a "recently reached agreement" on this regard. The state ownership policy document is...

- Market Overview - ABUK - ALCN - EKHO - RMDA - COMI - MNHD - ISMA - ELEC - Prepared by : Mayada Amin- CETA, CFTe

Talks with the IMF on an assistance package are set to continue “the first week of November” in Cairo, according to Jihad Azour, the IMF’s director for the Middle East and Central Asia.  During the economic conference which kicked off on Sunday, Prime Minister affirmed that Egypt prioritizes curbing inflation over the issue of the exchange rate.  CBE is about to launch an index for the Egyptian po...

- Market Overview -AMOC - AUTO - CLHO - COMI - HRHO - MNHD - ORAS - SWDY - EMFD - EXPA - Prepared by: Mayada Amin- CETA, CFTe

S&P Global Ratings has affirmed Egypt’s BB credit rating with a stable outlook on the back of expectations that fresh financial support from the IMF and the GCC will help Egypt meet external funding needs for FY 2022-2023, which total around USD 18 bn.  Egypt attracted USD6.5 bn in inbound M&A in 9M2022, making it third-biggest destination in the MENA region after the UAE and Saudi Arabia....

- Market Overview - COMI - ABUK - ALCN - AMOC - AUTO - ETEL - MFPC - Prepared by :Mayada Amin - CETA, CFTe

The government’s highly-anticipated economic conference kicks off on Sunday and runs through Tuesday. The conference has three main tracks: Macroeconomic policies; empowering the private sector and improving the business environment; and formulating a future roadmap for priority sectors. Egypt and the UAE will host a two-day gathering on Wednesday-Friday (26-28 October).  Day one is an economic fo...

- Market Overview - COMI - AUTO - MFPC - ORWE - SWDY - TMGH - EGCH - EMFD - prepared by: Mayada Amin - CETA, CFTe

El Sisi held a meeting with a delegation of Egyptian business leaders and investors from a range of industries. El Sisi said import issues will be resolved in a month or two. Foreign companies rejected the Egyptian Electricity Transmission Company’s decision to pay the value of contracts and tenders for the supply and installation of station equipment in EGP-equivalent instead of USD. The House of...

- Market Overview - AUTO - CCAP - CLHO - ESRS - FWRY - TMGH - PHDC - CSAG - EGCH - EMFD - Prepared by: Mayada Amin - CETA, CFTe

Three-month non-deliverable forwards on the EGP slipped to EGP 22.90 against the USD on Monday, down from EGP 24.00. Local rebar prices are expected to stabilize till the end of the year despite the recent declines in iron ore prices. Oil prices plummeted more than 3% this week as global recession fears and weak oil demand, especially in China, outweighed support from a large cut to the OPEC+ supp...

- Market Overview - COMI - ABUK - ALCN - AMOC - AUTO - CCAP - CLHO - EFIH - MNHD - ORWE - EMFD - PHDC Prepared by: Mayada Amin - CETA, CFTe

CBE and the Ministry of Finance announced that Egypt and the IMF have reached an agreement on the economic and structural policies and reforms for Egypt’s new IMF-backed economic reform program. Expats could send some EGP50 billion (c. USD2.5 billion) into Egypt under a cabinet program that will allow Egyptians living abroad to buy new cars in exchange for hard currency. The state has settled disp...

- Market Overview - COMI - ALCN - AMOC - CLHO - MNHD - HRHO - ACAMD - ACGC - Prepared by: Mayada Amin -CETA, CFTe

IMF staff and the Egyptian authorities made substantial progress on all policies including a continued fiscal consolidation path, additional fiscal and related structural policies that would further expand the social safety net, monetary and exchange rate policies that would anchor inflation expectations, improve monetary policy transmission, improve the functioning of the foreign exchange market,...

- Market Overview  - Prepared by; Mayada Amin - CETA, CFTe

We published our earnings expectations for 3Q22/FY22. We expect 3Q22 aggregated profits to rise 16% YoY and decline 8% QoQ and FY22 aggregated profits to rise 30% YoY. According to the Minister of Finance, an assistance package from the IMF is in the “final confirmation” stage. Egyptians resident abroad will be able to import a new car and eventually get a full rebate on all customs fees and taxes...

- Market Overview - Prepared by: Mayada Amin - CETA, CFTe

The IMF predicts global growth will slow to 2.7% in 2023, 0.2% lower than its July forecast. The IMF revised its forecast for Egypt’s economic growth during FY2022/23 to 4.4%, compared to 4.8% that was projected in July. Egypt external debt decreased to USD155.7 billion by the end of June 2022, compared to USD157.8 billion at the end of March. The trade deficit decreased to USD2.7 billion during J...

- Market Overview - COMI - SKPC - PHDC - CSAG - EGCH - ACGC - ALCN - Prepared by: Mayada Amin - CETA, CFTe

Cabinet announced yesterday a new gas pricing formula for cement and petchem producers, whereby: Cement producers will pay USD12/mmbtu, which will impact only SVCE since it is the sole local producer that is still using gas. The rest use coal and petcoke mainly. It is notable that coal, at current prices, is equivalent to USD17/MMBtu in gas prices. The formula for petchem producers for the product...

- Market Overview - ALCN - AMOC - CCAP - ETEL - EKHO - ETRS - SUGR Prepared by: Mayada Amin - CETA, CFTe

Banks have started to open letters of credit for the release of basic strategic commodities, as they work on securing the dollar liquidity necessary for the release of basic commodities.  Supply Minister called on MPs to form an ad hoc committee to look into possible changes to the country’s bread subsidy program. The EGX is looking to drum up interest in listed companies on a roadshow to Dubai an...