Shell to start drilling oil exploration wells in Egypt in September

Newsletter

03 Aug 2023

Shell to start drilling oil exploration wells in Egypt in September. Shell is set to begin drilling new oil exploration wells in Egypt’s Mediterranean in September, investing over $80 million in the first well. The company has completed seismic surveys for the concession areas including the Northeast Amriya offshore concession in the Nile Delta, North Sidi Gaber, and North Al Fanar Concessions. This move is in line with Shell’s plans to become a key energy hub in the region, especially in light of ongoing power cuts due to shortages in the gas supply required for power stations. (Arab Finance)

Egyptian-Turkish trade reaches $7 billion in 2022.
Trade between Egypt and Turkey reached $7 billion in 2022, marking a first, according to Egypt's Minister of Trade and Industry. The number of Turkish companies operating in Egypt has surpassed 790, with total investments around $2.5 billion. Additionally, $400 million in new investments were made in 2020 across various sectors such as medical, food, and engineering industries, as well as pharmaceuticals and cosmetics. The number of Turkish firms in Egypt is expected to exceed 800 within the week and reach 1,000 by the end of the year. (Arab Finance)
Moreover…
Egypt's Minister of Trade and Industry, Ahmed Samir, and his Turkish counterpart, Omer Bolat, have agreed to increase bilateral trade to $15 billion over the next five years, up from the current $10 billion. The ministers also plan to hold a joint committee meeting to expand the existing free trade agreement between the two nations and will jointly provide facilities to boost mutual investments. Additionally, they will soon discuss the possibility of using local currencies in bilateral trade. The agreements were made during a three-day visit by Samir to Turkey. (Arab Finance)
Fitch lowers US credit rating to AA+.
Fitch Ratings has downgraded the United States' credit rating from "AAA" to "AA+", citing factors such as erosion of governance and repeated disputes over the public debt ceiling. The downgrade reflects the expected deterioration of public finances over the next three years, increased government debt, and the lack of a medium-term fiscal framework. Additionally, Fitch noted only limited progress in addressing challenges related to rising pension and health insurance costs due to an aging population. Economic shocks, tax cuts, and new spending initiatives have also contributed to the increases in debt over the past decade. (Hapi Journal)
Egypt's top 10 real estate companies achieve EGP 168 billion in sales; Talaat Moustafa Group leads with 30% share.
The top 10 real estate companies in Egypt achieved contractual sales of around EGP 168 billion in the first half of this year. Talaat Moustafa Group Holding led with sales of EGP 51 billion, a growth rate of 351%, acquiring about 30% of the total. Aura Developers and Palm Hills Development Company came second and third with sales of EGP 25 billion and EGP 17 billion, respectively. Other companies in the top five include Founders Company and City Edge Real Estate Development Company. Mountain View was the only company in the list to see a decline in sales. (Economy Plus)
Egypt's Council of Ministers increases funding for export support initiative by EGP 2 billion to total EGP 12 billion.
During a meeting chaired by Dr. Mostafa Madbouly in the new city of El Alamein, the Council of Ministers agreed to increase the allocation for the sixth phase of the immediate payment initiative to support exports by 2 billion pounds, taking the total to 12 billion pounds. Launched in April 2023, this phase aims to reimburse exporting companies for the arrears of export burdens for shipments completed by December 31, 2022. The extra 2 billion pounds will help maximize the benefit to the business community and companies from this initiative. (Hapi Journal)
Madbouly examines procedures to activate agricultural cooperation between Egypt and Italy.
Prime Minister Mostafa Madbouly of Egypt reviewed the steps needed to activate joint cooperation with Italy in agriculture and agricultural industrialization on August 1st. During a meeting with officials, Madbouly noted that Italian investors had previously expressed interest in investing in various agricultural areas in Egypt. The intention also includes utilizing these areas for agricultural industrialization projects. (Arab Finance)
Egypt enhances its competitive edge in the green hydrogen sector, says Madbouly.
On August 2nd, Egypt's Prime Minister Mostafa Madbouly stated that the country has taken significant measures to enhance its competitiveness in the green hydrogen industry. During a meeting focused on green hydrogen, he announced the completion of the second update of the nationally determined contributions (NDCs), aiming to achieve 42% renewable energy in power capacity by 2030, five years ahead of previous targets. Madbouly emphasized Egypt's potential in renewable energy production, particularly in solar and wind, and expressed the country's interest in boosting investments in the green hydrogen sector. (Arab Finance)
63,000 tons of wheat received by Damietta port for the Supply Commodities Authority.
The port of Damietta in Egypt received a shipment of 63,000 tons of wheat from Russia, destined for the Supply Commodities Authority. The delivery was part of the country's efforts to secure strategic commodities and meet its wheat needs. The Damietta Port Authority also reported receiving 13 ships in the past 24 hours, transporting various commodities including scrap, beech wood, plywood, marble, and corn, among others. The port also managed exports including urea, clinker, salt, and sugar. The port's grain silo stock for the public sector stood at 171,827 tons, with an additional 157,951 tons in private sector warehouses. (Al Mal)
Council of Ministers gives green light to create an Egyptian joint stock company for localizing railway industries in Egypt.
In a recent meeting, the Council of Ministers approved the creation of an Egyptian joint stock company named "The Egyptian Company for Engineering Industries and Development," in collaboration with Linza Egypt. This move aligns with President Abdel Fattah El-Sisi's directives to localize railway industries in Egypt, aiming to provide mechanical spare parts in local currency and generate revenue for the National Authority for Egyptian Railways. The company also plans to export products to emerging markets, particularly in Africa. Additionally, the Council approved the deduction of land in South Sinai and the Red Sea Governorate for various service and development projects. (Al Mal)