According to Bloomberg, the Central Bank of Egypt (CBE) is expected to raise interest rates by 200-300 bps when it meets on Thursday, 30 March

Newsletter

26 Mar 2023

According to Bloomberg, the Central Bank of Egypt (CBE) is expected to raise interest rates by 200-300 bps when it meets on Thursday, 30 March. The central bank has already raised rates by 800 bps in the past year, but will need to go further to curb soaring inflation and contain downward pressure on the currency, pundits suggest. The Fed went on Wednesday for a smaller-than-expected rate hike amid the still-brewing banking crisis, raising rates by 25 bps. It also pulled a united front, saying that the US “banking system is sound and resilient,” and signalling that it isn’t too worried about industry following the fallout from the Silicon Valley Bank collapse. (Bloomberg)

The Sisi administration pushed ahead with new measures to lessen the impact of inflation on low-income earners
Including through an announcement of plans to raise the personal income tax exemption threshold to 36,000 EGP from 24,000 EGP currently. MPs also approved a new round of wage and pension hikes. Government employees and public-sector workers will see raises starting 1 April, while pension payouts will rise 15%. The government also announced new earmarks for social protection programs. (Arab Finance)
Egyptian Linear Alkyl Benzene (Elab) will be the first company to go to market via the Sovereign Fund of Egypt’s (SFE) pre-IPO fund
Six of the first eight companies set to debut on the EGX are energy and petchem firms. The SFE expects it will start taking companies in its pre-IPO fund to market after Ramadan, with the eight companies included in the fund currently being promoted to potential investors ahead of the sales. (Al Mal)
Telecom Egypt, where the sale of a stake presently held by the state was indefinitely put on ice, ostensibly due to volatility in markets after turmoil roiled the global banking sector
In the wake of SVB’s meltdown in the United States. State-owned, EGX-listed Egypt Aluminium (EgyptAlum) is in early-stage talks with Emirates Global Aluminium (EGA) for a capital increase. State-owned real estate companies El Nasr Housing and Development and Maadi for Development and Construction are also reportedly planning to seek capital from strategic investors through capital increases rather than seeing existing shareholders sell stakes. (Al Mal)
The Financial Regulatory Authority (FRA) approved Dubai-based National Paints Holding’s (NPH) takeover bid to paintmaker Pachin, giving shareholders until 3 April to decide whether to sell their shares
On the same day, Eagle Chemicals, a rival bidder, upped its offer to Pachin shareholders by 20%, valuing the EGX-listed company at some 840 million EGP. At 35.00 EGP per share, Eagle Chemicals is offering 1.00 EGP per share more than the UAE’s NPH. (Hapi Journal)
El Gouna launches The Chedi for luxury seekers
El Gouna, a fully-integrated sustainable towns of Orascom Development, has launched The Chedi El Gouna, a five-star beachfront hotel. The launch of the luxurious destination that targets guests seeking lavish experiences at the Red Sea comes in line with El Gouna’s vision to ramp up the Egyptian tourism sector and offer customers first-class amenities. (Arab Finance)
Egypt, Spain ink protocol to establish railway passenger cars’ factory
Egyptian National Railways (ENR) has signed a cooperation protocol with the Spanish company Talgo to establish the Talgo Egypt factory for the manufacture of railway passenger cars. Minister of Transport Kamel Al Wazir said that this cooperation protocol comes as per the Egyptian President Abdel Fattah El-Sisi's directives to localize heavy industries in Egypt. (Al Mal)
Abu Dhabi Ports (ADP) will develop and operate a container terminal at Safaga Port under a 200 million USD
30-year concession agreement signed with the government. Meanwhile, Mercedes-Benz, local shipping firm Kadmar and two Chinese companies inaugurated new logistics zones and factories in the Suez Canal Economic Zone. (Al Mal)
UAE exchange firm Al Ansari upsizes IPO on strong investor demand
UAE-based exchange house Al Ansari Financial Services, which is looking to raise up to 772.5 million AED (210.4 million USD) in its ongoing initial public offering (IPO), has increased the size of the retail tranche from 5% to 7.5% of its share capital due to strong investor demand. The global offering size remains unchanged at 750,000,000 ordinary shares, which is 10% of Al Ansari Financial Services’ issued share capital. (Zawya)
British billionaire to offer 5 billion against Qatari bid for Man United
British billionaire Sir Jim Ratcliffe is to offer 5 billion USD in a down to the wire bidding battle against a series of potential buyers of UK Premiership football club Manchester United, including Qatari Sheikh Jassim bin Hamad al-Thani. London’s Financial Times reported Thursday that Ratcliffe’s bid would value the club at 5 billion USD, a record acquisition price for a sports team. The current record is held by Walmart heir Rob Walton’s acquisition of Denver Broncos American football franchise at 4.65 billion USD. (Zawya)