Egypt secures game-changing partnerships with 29 global giants

Newsletter

22 May 2023

Egypt secures game-changing partnerships with 29 global giants, aiming for 1 billion USD surge in digital exports by 2025. Egypt sets its sights on an economic breakthrough as it joins forces with 29 international companies, aiming to boost annual digital exports by 1 billion USD by 2025. This strategic move, announced by Minister of Communications and Information Technology Amr Talaat, not only promises a significant financial surge but also creates 34,000 job opportunities through 35 information technology export centers. Egypt’s growing digital export industry, which reached 4.9 billion USD in 2022, plays a vital role in the country’s GDP, contributing 5%. With its strategic location facilitating over 90% of data transfer between Asia and Europe through 14 submarine cables, Egypt is further enhancing its connectivity by establishing five new cables. (Arab Finance)

Golden surge: 21-Carat hits a whopping 2350 EGP amidst price spike!
Gold prices experienced a significant increase during trading on both Friday and Saturday. On Friday, 21-carat gold opened at 2225 EGP per gram and closed at 2300 EGP, marking a rise of 75 pounds. Simultaneously, the global market saw a 21 USD decrease in the price per ounce, opening at 1957 USD and closing at 1978 USD. On Saturday, gold prices continued to climb, with a 50 EGP increase compared to Friday's closing, reaching 2350 pounds per gram for 21-carat gold. The ounce settled at 1978 dollars. The surge in global gold prices was influenced by the Federal Reserve's announcement of a potential lack of interest rate hikes due to the banking sector's struggles. Additionally, the collapse of talks regarding the US debt ceiling resulted in a decline in the dollar's value, further bolstering gold's position as a safe haven. (Hapi Journal)
Parallel market witnesses pound surge as dollar demand declines.
The Egyptian pound saw a significant 12% increase against the US dollar in the parallel market last week, reaching 37 EGP per USD on Thursday, compared to 42 EGP the pervious Friday. This rise was driven by a decrease in demand for the dollar, attributed to exemptions on gold imports for Egyptians returning from abroad and requests from trade associations to halt dollar purchases. The pound's one-month non-deliverable futures also rose by 2.4%, indicating a positive outlook and suggesting traders do not expect a depreciation of the pound in the near future. (Arab Finance)
Egypt’s unemployment rate sees slight drop in Q1 2023, with labor force participation on the rise
There has been a decrease of 0.1 percentage points in the unemployment rate compared to the fourth quarter of 2022. Similarly, the jobless rate has also decreased by 0.1 percentage points compared to the same period last year. Furthermore, the labor force participation rate, which includes individuals aged 15-64 who are either employed or actively seeking employment, has increased to 43.0%, marking a rise from both the previous year and the previous quarter, where it stood at 42.8%. (Enterprise)
UAE firms on the verge of sealing Wataniya and Safi acquisition deals
Emirati companies are on the verge of purchasing stakes ranging from 20% to 25% in the National Company for the Sale and Distribution of Petroleum Products (Wataniya) and the National Company for Natural Water Bottling (Safi). An insider from East Economy revealed that the UAE's Agthia Group, a subsidiary of Abu Dhabi's sovereign wealth fund ADQ, has already submitted a bid to acquire a stake in Safi. Additionally, UAE's ADNOC and ENOC, along with Saudi Arabia's Petromin, have shown interest in acquiring a stake in Wataniya. The progress in Egyptian privatization efforts signals the advancement of these potential deals. (Arab Finance)
African Development Bank empowers Egypt's green and social Initiatives with 345 million USD credit guarantee.
The African Development Bank grants Egypt a 345 million USD partial credit guarantee to support green and social initiatives, according to a statement by the bank. The partial credit guarantee will enable Egypt to raise the equivalent of 500 million USD in the panda bond market, which consists of bonds denominated in Chinese yuan and issued by foreign borrowers. The proceeds from the bonds will be directed towards clean transportation projects, renewable energy, energy efficiency, sustainable water and sanitation management, as well as financing small and medium-sized projects in Egypt. (Asharq)
Abu Dhabi Islamic Bank Egypt teams up with New Avenue, offering mortgage financing programs with extended 15-Year repayment options.
ADIB Egypt and New Avenue have partnered to provide Sharia-compliant real estate financing options with extended repayment terms. Under this agreement, customers can benefit from competitive rates and repayment periods of up to 15 years. ADIB Egypt will offer residential financing of up to 80% of the unit value, while commercial and administrative financing will be available for up to 70% of the unit value. This collaboration presents an opportunity for individuals and businesses to fulfill their property aspirations with flexible and convenient financing solutions. (Al Mal)
Swiss Sika and Orascom Construction seal Mega equity sale agreement worth 59 million USD.
Egypt's Orascom Construction has successfully completed the sale of its entire stake in its construction chemicals subsidiary to Swiss company Sika for a value of 59 million USD (1.8 billion EGP). Orascom Construction held a majority equity ownership of 56.50% in United Holding Company, which, in turn, acquired the remaining 50% stake in the divested subsidiary. This transaction follows Sika's global acquisition of MBCC Group, which owns a 50% shareholding in the construction chemicals unit. The subsidiary was involved in the production of specialty chemicals and construction products in Egypt and Algeria. (Waya)
Nassef Sawiris skyrockets Aston Villa's brand by an astonishing 40% in just two years!
Nassef Sawiris, the billionaire entrepreneur, stands out as the sole Egyptian owner of a club in the major European leagues, including England, Spain, Germany, Italy, and France. Taking over Aston Villa in July 2018, Sawiris acquired a 55% stake in a deal worth approximately 39 million USD. Through his strategic investments, he successfully steered the team back to the prestigious Premier League during the 2019-2020 season. The club's current value is estimated to be around 370 million USD, marking a remarkable 40% surge compared to the previous valuation of 265 million USD in 2021. (Economy Plus)
EBRD, EU, and ILX management collaborate to boost private-sector financing in EBRD countries.
The European Bank for Reconstruction and Development (EBRD) has joined forces with the European Union (EU) and emerging-market asset manager ILX Management in a promising partnership. As per the EBRD's website on May 17th, this collaboration aims to enhance private-sector financing in EBRD-operated countries, including Egypt, with a substantial commitment of up to 300 million USD over the next three years. The funds, to be co-financed by Dutch and other European pension funds, will be dedicated to supporting sustainable development projects, with a particular focus on climate-smart solutions, digital transformation, and financial inclusion. (Arab Finance)
Sultan of Oman Haitham bin Tariq to visit Egypt for the first time today since taking office.
Sultan Haitham bin Tariq of Oman will visit Cairo, Egypt, leading a high-level delegation in his first trip since assuming office. He is scheduled to meet Egyptian President Abdel Fattah Al-Sisi to discuss strengthening joint Arab action and regional developments. The visit is significant as it precedes potential investments by the Oman Investment Authority, considering allocating around 5 billion USD for renewable energy projects in Egypt. Egypt aims to enhance economic relations with countries like Saudi Arabia, the UAE, Kuwait, Oman, and Qatar to bridge its 17 billion USD financing gap and attract more foreign direct investment. (Arab Finance)