Egypt aims for a 15% surge in oil exports to reach 21 Billion USD in 2023

Newsletter

12 Jun 2023

Egypt aims for a 15% surge in oil exports to reach 21 Billion USD in 2023. Egypt is strategizing to boost its petroleum exports by 15% this year, aiming to attain roughly 21 billion USD and to maintain a similar growth rate into 2024, reaching an expected 24 billion USD, according to a governmental document reviewed by the “East Economy.” The discovery of the Zohr field in 2015 has invigorated investor interest in Egypt’s gas sector, leading to an increased number of explored wells. As a result, Egypt has ceased gas imports completely since the end of September 2019 and has even started exporting it. Egypt currently aims to become a leading energy hub in the region, focusing on gas liquefaction and re-export. Currently, Egypt’s total natural gas production stands between 6.5 to 7 billion cubic feet per day. (Asharq)

Goldman Sachs predicts Egypt's headline inflation may reach 37% in Q3 2023.
Goldman Sachs economist, Farouk Soussa, suggests that Egypt's headline inflation could surge to approximately 37% in Q3 2023 due to potential currency depreciation and increasing costs of subsidized goods. This comes after the Central Agency for Public Mobilization and Statistics (CAPMAS) reported that the annual headline inflation rate rose to 33.7% in May from 15.3% during the same period in 2022. Notably, the Central Bank of Egypt (CBE) aims to achieve an average inflation rate of 7%, plus or minus 2 percentage points, by Q4 2024. (Bloomberg)
Beni Suef power plant targeted for acquisition by British-Malaysian Consortium.
Actis and Edra Power Holdings are planning to submit bids to acquire the Beni Suef power station, located south of Cairo, in a potential 2 billion USD deal. This move could bolster Egypt's economy, which is currently facing a crisis. The companies are keen to acquire a significant share, possibly full ownership, and secure operational rights of the facility. This follows their initial expression of interest in 2019, which did not reach a final agreement. (Asharq)
Suez Canal Economic Zone plans to list 20% of Port Said terminal operator on the Egyptian Stock Exchange.
The Suez Canal Economic Zone (SCZone) has approved a plan to list a 20% stake in Port Said Container and Cargo Handling (PSCCHC) on the Egyptian Stock Exchange (EGX), as part of the government's latest privatization efforts. At present, SCZone owns a 39% stake in PSCCHC, while the Holding Company for Maritime Transport owns 40%. Canal Shipping Agencies Company holds the remaining shares. (Enterprise)
Egypt secures 700 Million USD loan from Islamic Trade Finance to purchase grain.
The International Islamic Trade Finance Corporation (ITFC), a part of the Islamic Development Bank Group, has agreed to offer 700 million USD in funds to Egypt for the importation of grains, stated Egypt's Supply Minister Ali Moselhi. This loan is part of an ongoing agreement, dating back to 2018, between Egypt and the ITFC, which was renewed last year for another five years, boosting the credit limit from 3 billion USD to 6 billion USD. (Asharq)
Egypt witnesses a 17.3% year-over-year increase in agricultural exports over five months.
In the first five months of 2023, Egypt saw a 17.26% increase in agricultural exports, resulting in a total of 4.118 million tons. The growth was driven by key exports including citrus, potatoes, and onions, among other crops. (Arab Finance)
Egypt has acquired 3.4 Million tons of domestic wheat to date.
Egypt has collected 3.4 million tons of domestic wheat to date in the ongoing harvest season that lasts from mid-April to the end of August, according to the Minister of Supply and Internal Trade. This year, 5.5 million tons of storage has been allocated for the wheat supply. Additionally, the government has approved an incentive, increasing the purchase price to 1,500 EGP per ardeb of 23.5 carats, to encourage more supply from farmers. (Arab Finance)
Fayez al-Daba'ani appointed as new Chief of Egyptian Tax Authority, replacing Mukhtar Tawfiq.
Egypt's Finance Minister, Dr. Mohamed Maait, has appointed Dr. Fayez Al-Dabbani as the acting head of the Egyptian Tax Authority in accordance with Decision No. 278 of 2023. Al-Dabbani takes over from Mokhtar Tawfiq, who retired after a dedicated career of service. Al-Dabbani will manage the role at the top-level within the Ministry of Finance until a permanent appointment is made. (Hapi Journal)
Ain Sokhna to house new Petrochemicals Industrial Park by SCA and Anchorage Investments.
A Memorandum of Understanding has been signed between the Suez Canal Authority (SCA) and Anchorage Investments for the establishment of a petrochemicals industrial park in Ain Sokhna, as reported by the SCA on June 8th. The project, set to be implemented on land owned by SCA in the northwest of the Gulf of Suez, is in line with SCA's goals to diversify income sources, encourage development projects within the Suez Canal Economic Zone (SCZONE), and stimulate job growth, according to SCA Chairman Osama Rabie. Furthermore, Anchorage Investments' Founder and Managing Director Ahmed Moharram sees the initiative as a step towards transforming Egypt into a regional center for industry, petrochemicals, and energy. (Arab Finance)
Four companies Equally Assigned Management of Financial Portfolios Valued at 320 Million EGP by Investor Protection.
EFG Hermes, Al Ahly Investments, Beltone, and NI Capital have each secured the management of stock portfolios valued at 80 million EGP each, under the Investor Protection Fund on the stock exchange. The total value of the portfolios comes to 320 million EGP. (Arab Finance)
SEII Nearing Completion of 70% Share Purchase in El Nasr Glass & Crystal.
Saudi Egyptian Industrial Investment (SEII) is nearing the final stages of purchasing a 70% stake in Egypt's El Nasr Glass & Crystal (NGC), according to the Minister of Public Business Sector, Mahmoud Esmat. This deal will be concluded with SEII increasing its capital in NGC. The company also has plans to introduce a new production line for solar power cell glass panels. NGC, which exports to over 35 countries, experienced a 91% increase in profits during the 2021/2022 fiscal year. (Arab Finance)
Foundation for Egypt's First Strategic Food Products Warehouse in Suez Laid.
Egypt's Minister of Supply and Internal Trade, Ali Moselhy, initiated the construction of the country's first strategic food product warehouse in Suez, according to a ministry statement on June 10th. The warehouse, covering 10 feddans, represents an investment of 1.5 billion EGP. Moselhy highlighted the crucial role of such warehouses in ensuring long-term food security and meeting the citizens' needs. The initiative aligns with President Abdel Fattah El-Sisi’s strategy to maintain sufficient stocks of essential commodities year-round. Similar warehouses will be set up in other governorates in subsequent stages. (Arab Finance)