State-owned Banque du Caire (BdC) will offer a 45% stake in sales to strategic investors and an EGX offering in 1H 2023
State-owned Banque du Caire (BdC) will offer a 45% stake in sales to strategic investors and an EGX offering in 1H 2023. The stake sale, which has been postponed several times due to unfavorable market conditions, could be expedited as the government pushes through its privatization plans in the lead-up to the first IMF review of our 3 billion USD loan agreement in March. BdC has until 31 March 2023 to wrap up IPO procedures. (Al Mal)
Concord International aims to set up 40 million USD healthcare investment company in Egypt’s healthcare sector
The company will deploy funds in feeder industries for the healthcare sector, such as the production of medical equipment and supplies. The company has been involved in Egypt’s healthcare sector for years: Concord was part of a consortium that acquired 98% of Amoun Pharma for 500 million USD back in 2007, a transaction which the company describes as one of the largest private-equity transactions ever in Egypt. (Asharq Business)
Senate committee approves bill handing temporary licenses to informal industrial projects
The Senate Industrial Committee approved a new government-drafted bill that would enable unlicensed industrial projects to temporarily go legit. The two-article bill would grant the Industrial Development Authority (IDA) the power for three years to allow unlicensed industrial projects to operate for a temporary one-year period. The period could be extended for an additional two years by the trade and industry minister upon the recommendations of the IDA. (Hapi Journal)
The new bill aims to facilitate licensing measures for small-scale industrial projects to join the formal economy
“This bill is important for the Egyptian industry as building and expanding industrial projects can never be possible without first meeting all legal licensing requirements,” said committee head Mohamed Halawa. There are “hundreds of thousands of small-scale industrial projects in different governorates that are operating without having a license and as a result they are considered a part of the informal economy.” (Enterprise)
KSA warns of energy shortages on back of oil sanctions, lack of investment
EU sanctions imposed against Russian oil and under-investment in upstream assets will trigger an energy shortage, Saudi Energy Minister Prince Abdulaziz bin Salman suggested over the weekend. “All of those so-called sanctions, embargoes, lack of investments, they will convolute into one thing and one thing only, a lack of energy supplies of all kinds when they are most needed,” he said. (Reuters)
The introduction of fresh G7 and EU sanctions against Russian oil products amid China’s reopening have some predicting a tighter market this year
Goldman Sachs’ lead commodities analyst is now expecting oil to rise back above 100 USD a barrel later this year due to dwindling spare production capacity, Bloomberg reports. Lower investment will also play a big role in the supply shortfall, which by 2024 could pose a major problem for the industry. Growing demand in China could force OPEC+ to up its output, International Energy Agency Executive Director Fatih Birol said. The oil cartel and its allies last week decided to keep its output steady, sticking to an agreed plan to cut production by 2 million barrels per day through the end of 2023. (Reuters)
Egypt Gas’ profits hike 82% YoY in 2022
Egypt Gas’ (EGAS) net profit after tax surged 82% year-on-year (YoY) in 2022. The company’s net profit after tax soared to 301.980 million EGP last year from 165.829 million EGP in 2021. Revenue jumped 30% to 7.025 billion EGP in 2022 from 5.404 billion EGP a year earlier. (Arab Finance)
EGAS, Romania’s Transgaz ink cooperation MoU in natural gas transmission
The Egyptian Natural Gas Holding Company (EGAS) has signed a memorandum of understanding (MoU) with Romania’s Transgaz to reinforce joint cooperation in the field of natural gas transmission. The MoU targets deepening cooperation between Egypt and Romania in the infrastructure development projects of natural gas transmission. It also aims at diversifying ways of supplying and distributing natural gas, in order to support energy security. (Arab Finance)
Egypt’s NIR hits 34.2 billion USD end-January: CBE
Egypt’s net international reserves (NIR) recorded 34.224 billion USD at the end of January 2023. This marks a monthly increase from the recorded NIR of 34.002 billion USD at the end of December. Reserves have been on a gentle upward slope the past five months and are now up by more than 1 billion USD since the end of August. Reserves fell 20% last spring on the back of the war in Ukraine and tightening financial conditions globally. (Hapi Journal)
The Finance Ministry has no intention of scrapping its plan to hike wage taxes
The Finance Ministry last month proposed legislative amendments that would create a new 27.5% personal income tax rate on salaries of more than EGP 800k a year — a change that won’t be revised by policymakers, our sources tell us. Annual earnings over EGP 400k are currently taxed at a top rate of 25%. (Al Mal)
Stay up to date
More Newsletter to Check
SUBSCRIBE TO NEWSLETTER
Subscribe to download our daily economics and business roundup
×
![]()