Egypt to establish Cabinet unit for BRICS engagement

Newsletter

31 Aug 2023

Egypt to establish Cabinet unit for BRICS engagement. Egypt is set to join the BRICS (Brazil, Russia, India, China, South Africa) grouping from January 2024, following an announcement during the fifteenth BRICS summit in South Africa. In response, Egypt’s Cabinet has approved the establishment of a dedicated BRICS unit to handle cooperation matters with the group. This unit will include relevant ministers and officials, aiming to enhance Egypt’s engagement with the BRICS nations on various fronts. (Hapi)

Egypt gears up for USD 500 million Samurai Bond issuance.
The Egyptian cabinet has approved the issuance of USD 500 million worth of Samurai bonds, denominated in US dollars and lasting for 5 years. Samurai bonds are yen-denominated bonds issued by foreign entities in Tokyo. This move follows Egypt's debut issuance of Samurai bonds in March 2022, aimed at diversifying markets, currencies, and investors for budget financing and extending debt maturity. (Asharq)
Government aims to raise USD 5 billion via state asset privatization by June 2024.
The government plans to raise USD 5 billion in investment by privatizing state-owned assets in the next nine months. The revised strategy includes selling wind energy plants, military-owned firms, a power plant, and desalination plants by June 2024. Leaked policy details reveal the ambitious economic move. (Enterprise)
Local gold prices drop amidst global trends and economic uncertainty.
Gold prices in local markets declined for the third consecutive day despite a rise in global exchange rates, as the US Federal Reserve's potential monetary policy change looms amid negative economic data. The local market saw a 5-pound drop today, with 21-carat gold at EGP 2,215 per gram, while the global ounce rose to USD 1,940. Market focus is on upcoming GDP and price index releases. The dip is attributed to lower demand amid economic uncertainty. (Hapi)
Nobu and SODIC forge partnership for Egypt hospitality expansion.
SODIC and Nobu Hospitality are partnering to expand the Nobu brand with two hotels, restaurant, and residential units in Egypt. The projects in New Zayed and the North Coast involve multi-million dollar investments, enhancing Egypt's hospitality offerings. The SODIC North Coast project will feature a seasonal Nobu Hotel & Units spread across 440 acres. This collaboration aims to elevate the hospitality experience to international standards. (Hapi)
Government to offload majority stake in Beni Suef Power Plant amidst potential buyer interest.
The government aims to sell around 70% of the 4.8-GW Beni Suef power plant, with an estimated value between USD 1.4 billion to USD 1.9 billion. Reports suggest potential buyers include private equity firm Actis and Malaysian company Edra, with the transaction also factoring in outstanding debt of EUR 735 million in foreign currency and EGP 3.5 billion in local currency. (Enterprise)
Egypt pursues USD 1.9 billion plan to expand natural gas wells and production.
Egypt is executing a USD 1.9 billion initiative to drill 45 natural gas wells in the Mediterranean and Nile Delta, with 10 wells already completed in the past fiscal year. The plan involves an additional 35 wells for the upcoming fiscal years, aiming to enhance production capacity and reserves. Moreover, there's a proposal to start drilling five more wells at the Zohr natural gas field by 2024, supplementing the ongoing effort to increase the current daily production capacity of approximately 2.2 billion square feet. (Arab Finance)
Consortium plans 3GW wind farm in Egypt's Sohag for clean energy and job creation.
A consortium including Orascom, ENGIE, and Toyota Tsusho will build a 3GW wind farm in Egypt's Sohag, supplying clean energy to 2 million homes and cutting 6.5 million tons of carbon emissions yearly. The project will create 2,000 direct, 5,000 indirect jobs during construction, and 1,000 permanent jobs post-operation. (Arab Finance)
Egypt Cabinet forms National Council for Green Hydrogen advancement.
The Egyptian Cabinet, led by Dr. Mostafa Madbouly, has approved the establishment of the National Council for Green Hydrogen and its Derivatives. The Council, chaired by the Prime Minister, includes various ministers, officials, and heads of key entities. Its purpose is to coordinate efforts, stimulate investment, and ensure competitiveness in the green hydrogen sector, aligning with sustainable development goals. The Council will oversee strategy implementation, policy coordination, obstacle resolution, and regulatory updates for the field. (Arab Finance)
BP to initiate new Mediterranean gas wells as part of Egypt's exploration drive.
BP, in collaboration with the Oil Ministry, is set to commence drilling four new exploratory wells for natural gas in the Mediterranean during Q4 2023. This effort includes two wells in the King Mariout Offshore concession and two in the Raven natural gas field within the North Alexandria concession. Notably, BP secured full exploration rights in King Mariout last year and has been actively producing gas from the Raven field since 2021. The company's commitment aligns with a larger USD 3.5 billion investment plan for Egypt's exploration and production endeavors over the next three years. (Enterprise)