Fuel subsidies in Egypt jump 290% in 6 months to 66 billion EGP

Newsletter

26 Feb 2023

Fuel subsidies in Egypt jump 290% in 6 months to 66 billion EGP. The Egyptian government aimed not to exceed subsidies for petroleum products in the budget for the current fiscal year 2022-2023, amounting to 28 billion EGP. While the fuel subsidy bill in the final account of the 2021-2022 budget amounted to 59 billion EGP, an increase of 212% over the fiscal year 2020-2021, which recorded 18.9 billion EGP. (Bloomberg Asharq)

Egypt has adopted the price of a barrel of oil at 80 USD in the budget for the current fiscal year 2022-2023, up from 75 USD a barrel a year ago
Egypt annually consumes about 12 million tons of diesel and about 6.7 million tons of gasoline, according to the latest data of the Central Agency for Public Mobilization and Statistics for the fiscal year 2019-2020. Petroleum prices are awaiting a new increase during the review of the next automatic pricing committee, which is held 4 times a year, as a result of changing exchange rates. (Bloomberg Asharq)
Egypt Kuwait Holding plans to invest 170 million USD across at least three sectors this year
The investment company – which is dual listed on the Egyptian and Kuwaiti stock exchanges – will target the oil and gas, electricity and manufacturing sectors, in addition to raising EKH's stakes in its affiliated businesses. The news follows the announcement of EKH’s record net income last year, which jumped 41% to 241 million USD. EKH will self-finance 60%–70% of the investments, with bank financing covering the remaining 30-40%. (Bloomberg Asharq)
Norway’s renewable energy developer Scatec discussed an Egypt-Europe electricity interconnection project
The project would be backed by the Norwegian government, the statement said, and would export electrical renewable energy to Europe with a capacity of about 3 GW, the statement quotes Scatec CEO Terje Pilskog as saying. (Bloomberg Asharq)
A two-month extension to the government’s expat car-for-FX scheme
Which cabinet approved last week, will head to the House for a final discussion and vote on Monday. Among the issues up for debate: MPs have yet to agree on a response to a proposal to grant Egyptians living in the Gulf 50% off of taxes and customs. Moreover, a government-drafted bill that would allow unlicensed industrial projects to obtain temporary licenses will also be up for a final discussion and vote on Monday. The House Industry Committee had approved the bill last week in a bid to provide temporary relief to the informal businesses. (Al Mal)
Company Misr Life is ready to offer stakes, barring some final technical details that advisors are working on — in a transaction that could go ahead before the end of June
The company will be on offer or specify whether the company would be up for listing on the EGX, to a private investor, or both. The Misr Ins. subsidiary is one of the 32 companies on the government’s privatization list for the next year. It was previously eyeing a 2H 2022 window for its IPO but was put on ice due to unfavorable market conditions. (Bloomberg Asharq)
Egypt's Nasr City contracts with contracting company to implement two projects worth half a billion EGP
Egyptian real estate developer Madinet Nasr for Housing and Development has signed a Memorandum of Understanding (MoU) with Construction & Design (CONSTEC), an Egyptian joint stock company specialized in the contracting sector, to implement two projects costing half a billion pounds (16.3 million USD). (Zawya)
Constec will carry out construction works for two projects within the Saray Compound project, which is being developed in New Cairo, minutes away from the New Administrative Capital
The first project is a commercial mall named "Arena Mall" on an area of about 8,12 square meters, and its construction takes months from the date of its start. The second project is the implementation of construction works in the "Cavana" residential project within the Saray project with a total number of units of 215 villas, and the period of work on the project takes 20 months from the date of the start of work. (Zawya)
Abu Dhabi Investment Authority mulls bid to buy stake in major UK port company
The Abu Dhabi Investment Authority (ADIA), the Abu Dhabi government's sovereign wealth fund, and other investors are considering a 34% stake in Associated British Ports (ABP) in Britain that could be valued at around 2.4 billion USD or more. The Associated British Ports (ABP) owns and operates about 21 ports in England, Scotland and Wales. U.S.-based Stonepick Partners and Canada's British Columbia Investment Management are among other investors interested in the stake that the CBI plans to sell. (Hapi Journal)
Madbouly follows up on project for localization of EV industry
The Dean of the Applied Research Department at the Arab Academy for Science, Technology, and Maritime Transport (AASTMT) Mohamed El Ghamry reviewed the components of EV that will be manufactured locally for the first time. He expected high returns from this project, whether in terms of investment or job opportunities. He indicated that a complex will be established to manufacture EVs on an area of 50,000 square meters, and arrangements will be made to deepen the local component in mechanical design, motors, and electronic circuits, to reach 100%. (Arab Finance)
Talks over Saudi Arabia's acquisition of United Bank of Egypt stalled
Negotiations over Saudi Arabia’s acquisition of the United Bank of Egypt have ended due to a dispute over the valuation of the estimated multimillion-dollar deal. The talks are over at a time when the Egyptian government works on raising the necessary funding to bridge the financing gap. The discussions about the Central Bank of Egypt (CBE)-owned lender stumbled over how to calculate the impact of the devaluation of the Egyptian pound on the deal. (Bloomberg Asharq)
e-finance plans for business expansion abroad in collaboration with Saudi PIF.
e-finance for Financial and Digital Investments is seeking to expand its business across different foreign markets in the second or third quarter of this year in collaboration with the Saudi Arabian Public Investment Fund (PIF), e-finance’s Chairman Ibrahim Sarhan said. The Saudi PIF acquired about a 25% stake in e-finance in 2022. The company has a roadshow in Dubai last week, and it will start another one in Saudi Arabia in cooperation with PIF. (Bloomberg Asharq)
Moreover, e-finance is earmarking EGP 2 billion in new investments for subsidiaries during 2023
On February 21st, e-finance announced that it reported a 54.67% year-on-year (YoY) leap in its consolidated net profits after tax and non-controlling interests in 2022, recording EGP 803.924 million, compared to EGP 519.738 million in 2021. The board of directors of e-finance also approved the proposal of paying cash dividends worth EGP 0.23 per share to shareholders, which is subject to the approval of the company's ordinary general meeting (OGM). (Bloomberg Asharq)