Egypt Cabinet: Suez Canal revenues hit 2.1 billion USD in Q3, highest quarter in history

Newsletter

09 Oct 2022

Egypt Cabinet: Suez Canal revenues hit 2.1 billion USD in Q3, highest quarter in history. Revenues during September rose by about 22% to 683.2 million USD. Over 2,000 vessels crossed the canal during that period from both directions compared to 1,856 vessels during the same period of last year — an increase of 9.1%. The total net payload reached 120 million tons, compared to 112 million tons during September of last year, reflecting a 7.1% increase. This increase is supported by the unprecedented jump in revenues during the month of August that hit a historical record at 744.8 million USD. (Arabnews)

Egyptian banks double fees for using payment cards abroad to 6%.
Egyptian banks ouble the number of the fees for using payment and credit cards abroad increased from 3% to 6%, while other banks resorted to restricting the withdrawal ceiling abroad with specific values, coinciding with a clear shortage of hard currency, with anticipation of obtaining new financial support from the International Monetary Fund. Since the beginning of the year, Egypt's economy has witnessed a number of challenges, extending from the repercussions of the Corona pandemic, and exacerbated by the Russian-Ukrainian crisis. Based on the recommendation of the central bank, Banque Misr has modified the withdrawal limits and commissions, and also reduced the limit available to a traveling customer when presenting a travel card to 1,000 USD from 2,000 USD previously. (Asharq Business)
While the Commercial International Bank (CIB) denied raising withdrawal fees on its cards outside Egypt.
but stated in a text message to the bank’s customers today: “The maximum purchase limit in foreign currencies using direct debit or credit cards will be adjusted starting tomorrow, October 6, 2022.” So, for example, the monthly limit for cash withdrawal outside Egypt for the "Plus Titanium" card will be 10,000 pounds, and the monthly use limit for purchases outside the country will be 50,000 pounds, or its equivalent in hard currency.
We believe that as long as a commodity has two prices in the same market, there will inevitably be an opportunity to profit by balancing the two prices or “Arbitrage” … which means buy in the cheap market and sell in the expensive market.
The credit card is not determined by withdrawal, but by raising the exchange rate for any service in the card, the exchange rate equal to the parallel market rate or higher. The reason for raising fees and placing restrictions on withdrawals is “the gap in the exchange rate between the official and parallel market, as well as an attempt to reduce spending by customers abroad. (Zilla Capital)
Egypt announces new incentives for investors by the end of this month during the country's economic conference, which is scheduled to start October 23^rd.
As the country seeks to support its economy, which was affected by the Russian-Ukrainian crisis and its consequences, after it suffered from the Corona epidemic. The announcement of the devaluation of the pound related to the upcoming agreement with the International Monetary Fund, is one of the main issues that investors are anticipating in Egypt, as this step will contribute to alleviating the turmoil in the market, including the storage of imported goods, the high demand for foreign currencies, and the increase in prices. (Asharq Business)
Egyptian government to pay 2 billion EGP to support exporters for many companies.
The amounts paid to exporters under the cash payment initiative reached 33 billion EGP in two years. The finance ministry supports the private sector through a group of incentives including allocating 6 billion EGP to subsidize electricity for the industrial sector. It is worth noting that the Egyptian government seeks to increase the participation of the private sector in total investments in the country to 65% by the fiscal year (FY) 2024/2025. It also includes offering 40 billion USD worth of state-owned assets to the private sector by the FY 2025/2026. (Hapi Journal)
On the global level, Lebanese banks close their doors to clients indefinitely.
Lebanese banks have unanimously decided to close their doors to clients indefinitely after a series of holdups by depositors seeking funds frozen in the banking system because of the country's financial meltdown. Banks will continue urgent operations for clients and back-office services for businesses, the bankers said, but front-office services will remain suspended after more than a dozen holdups in less than a month. Banks closed for about a week last month in similar circumstances, but reopened at the beginning of October to allow employees to withdraw salaries. (Reuters)
OIH considers building 4 hotels with 300 million USD.
Orascom Investment Holding (OIH) is seeking to build four hotels in the fields of tourism and entertainment in Egypt with up to 300 million USD in investments, according to the CEO of Orascom Investment Holding (OIH) Naguib Sawiris. OIH has focused investments, mainly in the fields of the new and renewable energy sector. Sawiris noted that his company is considering entering the field of electric vehicles (EVs) in Africa. It is worth noting that OIH reported a consolidated profit attributable to the parent company of 94.887 million EGP in H1 2022, compared to a consolidated loss of 93.064 million EGP in H1 2021. (Hapi Journal)
ICON’s board approves launching 5 million SAR company in Saudi Arabia.
The board of directors of Industrial Engineering Company for Construction and Development (ICON) approved the establishment of a company in Saudi Arabia with a capital of 5 million SAR. The new company will operate in the manufacturing, supply, and installment of prefabricated buildings and all their accessories. (Arab Finance)
EGYtrans studies acquisition of NOSCO.
The board of directors of Egyptian Transport and Commercial Services Company (ETRS) (EGYtrans) is considering the acquisition of a majority stake in National Transport and Overseas Services Company (NOSCO). Through the deal, EGYtrans aims to establish an integrated entity with unified management to increase profits and expand outside Egypt. EGYtrans is an Egypt-based company engaged in the international sea, air, and land transportation services. (Arab Finance)
Nasr City offers 1 billion EGP in securitization bonds within 6 months.
Nasr City for Housing and Development, which was established in 1959 and listed on the Egyptian Stock Exchange in 1995, expects to achieve contract sales of about 6 billion EGP in 2022, coinciding with raising the prices of its units by about 15% in new projects. Nasr Housing has developed up to 35% of its 9.5 million square meter land portfolio, and aims to develop the remaining percentage over the next five years. (Asharq Business)
Solutions by STC has completed the acquisition of 88.2% of Giza Systems.
The company didn’t disclose the final value of the transaction, but said Giza Systems has an enterprise value of 158 million USD, almost 10% above the initial valuation back in April. Major shareholder B Investments said it sold its 44.7% stake at an equity valuation of 119 million USD. Solutions by STC was on course to take an 89.5% stake in Giza Systems from SPV Inergia Technologies, in which B Investments is the majority shareholder. Inergia holds a 65.7% stake in Giza Systems (including B Investments’ stake). It’s not known who the other sellers are. (Arab finance)