Net foreign liability gap widens plus a new loan from China
Net foreign liability gap widens plus a new loan from China. Net foreign liabilities in the banking system increased to 26.8 billion USD in September from 25.9 billion USD in August amid a widening in net liabilities of the central bank to 10.5 billion USD from 9.4 billion USD. Excluding the CBE, NFLs were relatively stable at 16.3 billion USD from 16.5 billion USD the previous month. Meanwhile, the state-owned China Development Bank announced that it gave the CBE 957 million USD on 30 October as part of an agreement signed in the latest Belt and Road Forum. (Arab Finance)
- Egypt targets investing 363 billion EGP in North Sinai over 5 years: Madbouly.
The Egyptian government is targeting to inject 363 billion EGP into new projects in North Sinai over the coming five years. Moreover, the government will start implementing a previously planned tourism development project in North Sinai with investments of 2.5 billion EGP. The country had invested more than 600 billion EGP in Sinai over the last 10 years, 283 billion EGP of which were invested in projects in North Sinai. (Arab Finance)
- Egypt has denounced Israel’s plan to push displaced Palestinians into Gaza in the strongest terms yet, with Prime Minister Moustafa Madbouly yesterday raising the threat of hostilities if officials in Benjamin Netanyahu’s government try to push ahead with the plan.
“We are prepared to sacrifice millions of lives to ensure that no one encroaches upon [Sinai],” the prime minister said in a speech in North Sinai yesterday, where he announced the government’s EGP-bns plan to develop the governorate. Israel has displaced 1.4 million civilians and driven 800k from the north to the south of the territory, and the fear in Cairo is that it will try to force them across the border with the blessing of some of its key Western backers. “We will not give up a single meter of Sinai land,” Madbouly said yesterday. (Economy Plus)
- The UAE is considering injecting new investments into Egypt.
After returning from North Sinai to announce the new development plan for the region and inspecting the Rafah land crossing on Tuesday, Prime Minister Mustafa Madbouly met with the UAE Minister of Investment, Mohamed Al Sweidi, as well as several Emirati officials and investors. During this, the UAE Minister of Investment stated that there is a directive from Sheikh Mohammed bin Zayed Al Nahyan to enhance cooperation with Egypt and increase investments in the country. He confirmed that a meeting was held with Egyptian officials to review various Egyptian projects for potential collaboration, with the aim of injecting new investments into these developmental sectors. (Economy Plus)
- MSMEDA invests 642 million EGP in small and micro-projects in Sinai.
MSMEDA has put into action the government's plan to enhance and construct Sinai, fostering a favorable atmosphere for the expansion of small enterprises. The agency invested around EGP 642m from 2014 to 2023 (9 years) to finance about 9,000 small and micro-projects in North and South Sinai, providing about 20,000 job opportunities. (Daily News)
- Sky-Reliance consortium eyes 65 million USD loan from Bank du Caire to establish multipurpose terminal.
A consortium made up of Sky Logistics and Reliance Logistics is in talks with Bank du Caire to borrow 65 million USD to set up a multipurpose terminal at the East Port Said Port. The consortium is expected to finalize the loan’s procedures within the coming few days. The project will be executed over three stages, with the first stage to be operated this month. The second and third phases are set to be fully completed by the end of 2024. (Al Borsa News)
- AfDB to finance Egyptian projects with 350 million USD before end-2023.
This brings the total financing offered by the bank to Egypt in 2023 to 730 million USD. The bank will finance the country’s private sector via loans directed toward companies and banks’ credit lines and through financing private development projects. (Arab Finance)
- UAE’s ADQ finalizes 800 million USD deal to acquire stakes in state-owned Egyptian firms.
Abu Dhabi’s sovereign wealth fund ADQ has signed final contracts worth 800 million USD with The Sovereign Fund of Egypt (TSFE) to acquire stakes in three state-owned oil and petrochemical firms. Under the deal, ADQ acquired a 25% stake in the Egyptian Drilling Company (EDC), a 30% stake in the Egyptian Ethylene and Derivatives Company (Ethydco), and a 35% stake in Egyptian Linear Alkyl Benzene (Elab). The Egyptian government previously announced exiting from state assets worth up to 1.9 billion USD. (Al Borsa News)
- A total of 39 billion Egyptian pounds in taxes have been collected from Treasury bond transactions since May.
The tax revenue generated for the Ministry of Finance from trading in debt instruments exceeded 7.5 billion in a month, and around 39 billion Egyptian pounds from Treasury bond transactions since mid-May 2023. The number of traders in Treasury bills on the stock exchange has reached 35 banks, an increase from the previous 16 major traders before trading was made available. It is expected that more brokerage firms will join in the coming period. (Arab Finance)
- The government is reducing gas supplies to energy-intensive industries by up to 30%.
The government has decided to reduce natural gas supplies to energy-intensive industries, including fertilizers, iron, and aluminum, as reported by Al-Borsa newspaper. However, these reductions will be temporary and last for several days. The reductions are not uniform, with the largest impact on fertilizer manufacturing companies. According to Economy Al-Sharq, the reduction in gas supplies to fertilizer factories can be as much as 30%. (Arab Finance)
- A 20% growth in the number of tourists visiting Egypt over 9 months.
The number of tourists arriving in Egypt increased by approximately 20% to 11 million tourists during the first 9 months of the current year, according to reports from East Economy. Despite the ongoing events in the region, preliminary indicators of international tourist arrivals to Egypt in October of the past year showed a 10% growth in the number of tourists compared to the same period last year. The increased demand for spending holidays in Egypt during the past nine months has raised hotel accommodation prices by percentages ranging from 20% to 30% compared to last year, which will have a positive impact on Egypt's dollar revenue. (Arab Finance)
- The profits of the Central and Western Delta Mills have increased by 10% to around 50 million EGP during the past three months.
The Central and Western Delta Mills Company achieved a net profit after tax of 49.980 million Egyptian pounds during the first quarter of the fiscal year 2023/2024, compared to 45.394 million Egyptian pounds in the same period, representing a 10.1% increase. The company attributed the increase in profits to a rise in the milling fee by 26 pounds per ton. (Hapi Journal)
- Amer Group's profits have increased by 14% to reach 40.07 million EGP during the first nine months.
The Board of Directors of Amer Group Holding Company "Amer Group" has approved the independent and consolidated financial statements for the first nine months of the current year 2023. The consolidated financial statements of Amer Group included achieving a 14% increase in net profits, reaching 40.07 million EGP. (Al Mal)
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