Egypt put under negative review in JPMorgan bond index

Newsletter

25 Sep 2023

Egypt put under negative review in JPMorgan bond index. JPMorgan said Egypt’s eligibility will be on review for three to six months, due to reports of ‘material’ hurdles in currency repatriation. “If the hurdles cited by benchmarked investors persist, a status review will be triggered for Egypt’s removal from the GBI-EM series,” JPMorgan said. Egypt will remain in the index during the review. (Reuters)

An Emirati-Saudi-Egyptian alliance is about to seize the land of the “National Party”.
The investment value of the targeted tourism project reaches 5 billion USD. In September 2020, the Egyptian government annexed the National Party’s land, with an area of about 16.5 thousand square meters, overlooking the Nile River, to the “Sovereign Fund of Egypt” after years of conflict between the Ministry of Antiquities and the Cairo Governorate over the ownership of the land. (Asharq Business)
The UAE “Al Shafar” alliance with the “Saudi Egyptian Development Company”, owned by both countries, will undertake the development of the land by increasing the capital of the companies “Nilos Residential Services” and “Nilos Hotel and Commercial Services”
which They were established by the Sovereign Fund of Egypt, and ownership of the land was transferred to them last August. The winning consortium with the two companies affiliated with the sovereign fund will undertake the establishment of a tourist and commercial hotel project, which will be completed within 5 years, with an investment value reaching 5 billion USD. (Asharq Business)
Egypt seeks loan facility from Emirati bank to purchase Kazakh wheat.
The move could give Egypt a cheap alternative to grain from Russia, which has supplied an increasing share of Egypt's wheat since last year, but recently blocked a deal for a purchase below an unofficial price floor for wheat purchases. Talks over the loan deal for purchases from Kazakhstan are in early stages, with negotiations taking place over the price and quantities of wheat and the value of the loan, a source with knowledge of the talks said. Traders were told GASC was negotiating a price that could be lower than the unofficial price floor set by Russia's government, which was believed to have been set at a free-on-board price of 270 USD per metric ton in the tender. (Reuters)
UAE’s ADNOC Distribution inaugurates 3 service stations in Egypt.
The UAE’s largest fuel and convenience retailer Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) has opened three service stations in Greater Cairo. This marks the first investment of ADNOC Distribution’s fueling services in the Egyptian market. The company also plans to open additional six service stations nationwide by the end of 2023. The Emirati group is working on boosting its presence in Egypt as an investment partner through implementing an ambitious plan in the state’s oil and gas sector. (Arab Finance)
Egypt earmarks 75 billion EGP in FY2023/24 budget to develop healthcare sector.
Egypt is allocating 75 billion EGP of its budget for the current fiscal year (FY) 2023/2024 for the development of the healthcare sector. The figure represents 4.6% of the country’s total investments under the current FY plan. On September 20th, it was announced that a total of 99.4 billion EGP will be directed for the development of educational services. (Al Mal)
SCZONE, Brazil mull cooperation in industrial, green fuel fields.
The General Authority for Suez Canal Economic Zone’s (SCZONE) Chairman Waleid Gamal Eldien has met with the Brazilian Ambassador to Cairo Paulino Carvalho Neto to discuss potential cooperation opportunities between the SCZONE and Brazil. A special focus was on industrial activities and green fuel field. During the meeting, Gamal Eldien expressed the zone’s readiness to engage in several industrial activities, along with offering various maritime services via its ports. He also expressed the authority’s eagerness to offer financial and non-financial incentives to lure and back investors. (Al Mal)
Egypt's ban on onion export to come into effect as of October 1st.
Egypt's decision to halt the export of onions for a period of three months will be effective starting October 1st. Onion prices have surged to as much as 35 EGP per kilo, part of a wave of record-high inflation triggered by several currency devaluations and a prolonged shortage of FX. Food prices accelerated at a record rate of 71.4% y-o-y in August. The ministry has also extended its sugar export ban for another three months until 20 December. Exports of any “excess” supply of sugar could go ahead with approval from the ministry. (Arab Finance)
Suez Canal’s revenues climb by 19.2% YoY in August.
The Suez Canal has generated $888.6 million in revenues in August, with an annual growth rate of 19.2%. In fiscal year (FY) 2022/2023, the Suez Canal recorded the highest annual revenues in its history, amounting to 9.4 billion USD. The Suez Canal pumped over 143.864 billion USD into the state’s public treasury over 67 years since nationalization. (Asharq Business)
Sidi Kerir Petrochemicals Company’s (Sidpec) board of directors agreed to postpone the company’s merger with Ethydco until it assesses ADQ’s acquisition of a 27% stake in the company.
Sidpec has intended to acquire the entirety of Ethydco since last year, and signed off on an all-share merger in July. ADQ’s acquisition of a stake in Ethydco may have slowed down the merger, with the local press reporting last week that the Financial Regulatory Authority is looking into whether the sovereign wealth fund would have to make a mandatory tender offer for the merged entity. (Al Mal)
New cities receive 23 billion USD investments.
Total investments in Egypt’s new cities reached 705 billion EGP (23 billion USD), Deputy Chairman of the New Urban Communities Authority (NUCA). Abbas added that the New Administrative Capital, Egypt's megaproject, has seen investments worth 163 billion EGP so far. (Ahram Online)