Egypt's business sector downturn moderates as inflationary pressures decrease | Zilla Capital

Newsletter

06 Jul 2023

Egypt’s business sector downturn moderates as inflationary pressures decrease

Egypt’s business sector downturn moderates as inflationary pressures decrease. Egypt’s non-oil private sector experienced a slower rate of decline in June, helped by easing inflationary pressures and a decrease in the rate of fall of output and new orders. Despite a 22-month high in the primary index, the sector still faces challenges, as indicated by the S&P Global Purchasing Managers’ Index. Notably, employment continued to fall for the seventh consecutive month, and future outlook over the next year remains low. (Asharq)

Egypt and Germany discuss enhancing their collaboration in tourism.
Egypt's Minister of Tourism and Antiquities, Ahmed Issa, met with Germany's Ambassador to Cairo, Frank Hartmann, on July 4th to discuss avenues for improving collaboration in tourism. The meeting involved reviewing the metrics of tourist arrivals from Germany to Egypt. The potential for strengthening bilateral sports tourism was also explored during the discussion. (Arab Finance)
Major oil firms plan 1.8 Billion USD investment in Egyptian gas exploration by 2025.
Major energy corporations including Eni, Chevron, ExxonMobil, Shell, and BP plan to collectively invest 1.8 billion USD in the drilling of 35 gas exploration wells in the Mediterranean and Nile Delta within the next two years. This announcement was made by Tarek El Molla, Egypt's Oil Minister, during the OPEC+ meetings held in Vienna. (WAM)
Abolishing exemptions given to government entities in economic ventures crucial for investor confidence.
Parliamentary member Ayman Mohseb emphasized the significance of a proposed law to end exemptions provided to state agencies in investment and economic activities. He clarified that the proposed changes align with Egypt's strategy to boost the private sector's involvement in the economy and to foster a conducive environment for attracting increased local and foreign investments. Mohseb, who is part of the Parliament’s Plan and Budget Committee, and the Investment Priorities Committee of the National Dialogue, believes these amendments are crucial steps. (Al Mal)
Scatec of Norway set to construct wind farm in Egypt worth 5 Billion USD.
Norway's Scatec and the Egyptian New and Renewable Energy Authority have signed a 5 billion USD agreement to build a wind power plant in West Sohag. This major renewable energy project, set to produce 5 gigawatts annually, aligns with Egypt's target to have renewable sources account for 42% of its energy mix by 2030. The project, being one of the largest in Egypt and Africa, is also expected to create around 8,000 jobs during construction and 300 permanent jobs thereafter. (Arab Finance)
Finance Ministry to initiate the sixth round of 'Immediate Cash Payment' for exporters starting next week.
Starting on July 12 and 13, Egypt's Ministry of Finance will begin paying the dues to the first group of exporting companies who have submitted complete documentation under the sixth phase of the 'immediate cash payment' initiative. This initiative aims to alleviate the export-related financial strains of companies for transactions completed with the Export Development Fund until December 31, 2022, and applies the same previous controls. (Economy Plus)
Egypt's sovereign dollar bonds advance as frontier market rally persists.
Egypt's sovereign dollar bonds saw an increase of over one cent on June 4th, mirroring a broader rally boosting debt from frontier economies like Pakistan and Ghana, according to Tradeweb data. The most significant growth was in bonds due in 2033 and later, with the February 2048 bond rising over 1.2 cents. Egypt's bonds are capitalizing on recent upswings in other smaller, riskier emerging markets, as investors turn to high-yield markets like Egypt following notable bond rallies in countries like Pakistan, stimulated by International Monetary Fund agreements. (Arab Finance)
Investcorp initiates promotional campaign for its investment vehicle launch in Abu Dhabi.
Middle East's largest alternative assets manager, Investcorp Holding, plans to promote a 600 million USD initial public offering (IPO) for its Abu Dhabi-based investment unit, according to Bloomberg sources. The IPO for Investcorp Capital could potentially launch as soon as September. Investcorp is collaborating with HSBC Holdings, Goldman Sachs, First Abu Dhabi Bank, Emirates NBD, and Moelis & Co. for this potential offering. (Hapi)
Hilton enters two management and operation agreements with City Edge for a pair of Cairo hotels..
The Prime Minister of Egypt, Dr. Mostafa Madbouly, witnessed the signing of two new partnership contracts between "City Edge Real Estate Development" and the "Hilton" group. These contracts, overseen by the Ministry of Housing, Utilities, and Urban Communities, pertain to the management and operation of two hotels in Cairo. Dr. Assem El-Gazzar, Minister of Housing, Utilities, and Urban Communities, was also present during the signing ceremony. (Hapi)
Fawry and Saudi CyberX collaborate to increase cybersecurity knowledge.
Fawry for Banking Technology and Electronic Payment has partnered with Saudi platform CyberX to boost cybersecurity awareness in Egypt. According to a press release, the partnership will generate numerous programs and media content to educate the public on cyber threats and frauds. This initiative is designed to counter cyber threats and thwart potential cyberattacks. (Arab Finance)