Egypt revises capital market regulations, introducing new sukuk program and sustainable funds
Egypt revises capital market regulations, introducing new sukuk program and sustainable funds. The Egyptian Prime Minister, Mostafa Madbouly, has made changes to the executive regulations of Capital Market Law No. 95 of 1992, as announced by the Financial Regulatory Authority (FRA) on August 21st. These changes introduce a multi-issuance sukuk program, enable investment funds to promote their documents via FRA-licensed firms, and encourage the establishment of sustainable development investment funds prioritizing environmental and social projects. The revised regulations also allow traded investment funds to align with an FRA-approved reference index for registration on the Egyptian Exchanges (EGX) and the issuance of sukuk without mandatory credit ratings. (Arab Finance)
- Fuel prices surge ahead of crude, signaling supply concerns as winter nears.
Global fuel prices are outpacing crude oil costs, suggesting a supply shortage that concerns governments wary of inflation. With the northern hemisphere approaching winter, heating demand will rise. While the Russian invasion of Ukraine last year worsened the market, milder winter conditions helped prices drop. Current shrinking stockpiles mean unexpected price hikes, supply limits, or high demands due to cold snaps or booming economies might disrupt the market. Eugene Lindell of FGE Industrial Consulting highlighted the urgency to increase reserves before seasonal reductions in September, emphasizing the potential supply shortages, especially in Europe and the American Atlantic coast. (Al Mal)
- Suez Canal Authority and South Korean ambassador explore green initiatives; canal's role in trade underscored.
The Chairman of the Suez Canal Authority (SCA), Osama Rabie, held discussions with South Korean Ambassador to Cairo, Kim Yong-Hyun, on collaboration in green transition initiatives, as mentioned by the authority on August 20th. Yong-Hyun emphasized the significance of the Suez Canal to South Korean commerce, given that over 70% of the country's trade is international. (Arab Finance)
- Egypt releases 284,000 tons of corn and soybeans worth $141m in two weeks; total reaches $3.4bn in 10 months.
The Minister of Agriculture and Land Reclamation, Mr. Al-Qaseer, has revealed the release of 284,000 tons of corn and soybeans, valued at approximately $141 million, between 4/8/2023 and 17/8/2023, in cooperation with the Central Bank. This action follows the Prime Minister, Dr. Mostafa Madbouly's directives to monitor the fodder supply from Egyptian ports. The breakdown includes 224,000 tons of corn ($81 million) and 60,000 tons of soybeans ($45 million). Additionally, feed additives worth $15 million were also released. From October 16, 2022, to August 17, 2023, a total of 7.2 million tons was released, worth $3.4 billion. (Arab Finance)
- Prime Minister Madbouly prioritizes development of Damietta's furniture industry with a strategic road map.
Dr. Mostafa Madbouly, the Prime Minister, has ordered the creation of a development road map for the furniture industry and emphasized swift decision-making to ensure its success. To formulate this road map, he instructed a prompt workshop involving key officials including the Ministers of Business, Trade and Industry, and the Governor of Damietta. The meeting, which focused on the Furniture City in Damietta, highlighted the city's competitive advantages. Madbouly also expressed his commitment to regular meetings to monitor priority projects and strategize their optimal development. (Hapi Journal)
- Philip Morris subsidiary, UTC, in talks to buy stake in Egypt's Eastern Company.
The United Tobacco Company (UTC), an affiliate of Philip Morris International, is in discussions with the Egyptian government to acquire a minority interest in the Eastern Company (EAST). Previously, in 2019, Egypt offloaded 4.5% of Eastern Company shares for $180 million. Currently, 51% of the tobacco firm is owned by the Chemical Industries Holding Company, while South African investment management company Allan Gray and the union of shareholding workers hold 7.25% and 5.25% respectively. The remaining shares are listed on the Egyptian Exchange. Eastern Company, established in 1920, produces various tobacco goods including cigarettes, cigars, and molasses tobacco. (Asharq)
- African voices urge for greater inclusion at BRICS Media Forum in Johannesburg.
At the Fifth Media Forum for the BRICS summit held in Johannesburg, representatives from African nations emphasized the importance of amplifying Africa's voice in global discussions. Organized by China's Xinhua news agency, the three-day forum was themed “BRICS and Africa: Promoting Media Dialogue for a Common Future”. While official Egyptian representatives were absent, two Egyptian media entities participated among attendees from 30 countries. African delegates suggested a "BRICS +" similar to “OPEC +” to integrate more nations. Egypt, among others, is keen to join BRICS to bolster trade ties. The BRICS nations significantly influence the global economy, representing notable shares of global land, population, and economic output. (Economy Plus)
- Apache Corporation to invest $1.4 billion in Egypt in 2024.
US energy company, Apache Corporation, intends to invest $1.4 billion in Egypt in 2024, as stated in a cabinet release on August 20th. This was revealed during discussions between Prime Minister Mostafa Madbouly and the company's representatives. Minister of Petroleum and Mineral Resources, Tarek El-Molla, highlighted that Apache is the top American investor in the country. (Arab Finance)
- Holding Company for Construction and Development reports 12% revenue growth, eyes diverse investments.
The Holding Company for Construction and Development reported a 12% growth in its activity revenues, reaching 20.5 billion pounds at the end of the last fiscal year, as per the Council of Ministers' statement. The company's net profit rose by 4%, but specific figures were not disclosed. The company expects contracts worth 35 billion pounds in the current year, with significant projects in infrastructure, real estate, and construction. Minister Mahmoud Esmat emphasized the company's ability to compete internationally, and its plans to diversify investments, develop existing assets, and expand their scope of work, both domestically and abroad. (Economy Plus)
- Egypt and Tatarstan explore joint vehicle production; aim to boost African market reach.
The Ministry of Trade and Industry is exploring opportunities for a joint vehicle manufacturing partnership with the Republic of Tatarstan, a federal subject of Russia. The collaboration would involve importing main components from Tatarstan and completing production in Egypt, leveraging the country's auto-industry potential. This aims to expand exports, especially to the vast African market, under the African Continental Free Trade Agreement. The discussions took place between Egypt's Minister of Industry, Ahmed Samir, and Tatarstan's Deputy Prime Minister, Oleg Korbchenko. The talks revolved around enhancing trade ties, global economic developments, and shared interests, with emphasis on Egypt's strategy to boost its auto industry. (Economy Plus)
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