Egypt considers selling real estate units in USD to buyers overseas
Egypt considers selling real estate units in USD to buyers overseas. Egypt is considering selling real estate units in US dollars to Egyptians abroad and foreigners. Private real estate developers will take part in this initiative with their units, provided that a number of incentives will be offered. This initiative aims to improve the performance of the Egyptian Exchange (EGX) and enhance the rapid growth of projects at the New Administrative Capital. (Hapi Journal)
- Sellers are now required to settle their value-added tax (VAT) dues in FX if the service or product they offer is invoiced or paid for in foreign currency.
Businesses can settle their foreign-currency VAT dues in local currency if they present evidence that they’ve exchanged FX worth the same amount or more than the value of the VAT within a month of the sale being booked. The amendment will go into effect a day after being published in the Official Gazette. The move is the latest in a string of government measures designed to drum up hard currency in response to the ongoing FX crunch. The shortage of hard currency has triggered the reemergence of a black market, where the EGP has sunk to record lows against the USD in recent days. The currency is currently trading hands at more than 50.0 / USD in the parallel market, almost 40% lower than the official rate. (Al Mal)
- The developer of Egypt’s new capital could raise more than 150 billion EGP from its planned EGX IPO
ACUD, a joint venture between the military and the Housing Ministry, plans to offer 5-10% of its shares in what could be the largest-ever public share sale in Egypt. there is a possibility of either the parent company or a subsidiary being selected for the IPO, and a decision will be made with the advisors. The company is considering a dual listing in a Gulf or international market if it goes public. The IPO is expected to take place in the second quarter of 2024. (Economy Plus)
- An Emirati investor is seeking to acquire "Egypt Life Insurance".
Preferring inclusion, the cost of insuring Egypt's sovereign debt has decreased by 1.7% within a week. An Emirati investor has preliminarily proposed the full acquisition of the shares of Egypt Life Insurance, a subsidiary of "Insurance Holding," listed on the government offerings program. The company recently joined the pre-offering fund affiliated with the Sovereign Fund of Egypt. The investor presented an offer to the Sovereign Fund of Egypt to purchase 100% of the company's shares with the aim of penetrating and expanding operations in the Egyptian market. It was further mentioned that the Sovereign Fund of Egypt is considering the idea of selling but prefers the option of listing at least 25% of the company on the Egyptian Stock Exchange, intending to execute this offering in the first half of 2024. (Economy Plus)
- An agreement worth 54 million EUR within the debt swap program with Germany.
The first follow-up report of the "Nawafa" program, issued by the Ministry of International Cooperation to mark the one-year anniversary of the launch of the national platform for the "Nawafa" program, revealed the initiation of the implementation of a debt swap agreement between Egypt and Germany valued at 104 million EUR. This comes in light of the efforts made with local and international partners to mobilize innovative financing tools to fulfill the commitments of the "Nawafa" program, which serves as a link between water, food, and energy projects. (Arab Finance)
- Egypt Customs release of goods valued at 63 billion USD since the beginning of 2023.
Egypt has released goods worth 63 billion USD since the beginning of the current year until now. However, there are still goods at ports valued at 5 billion USD. Egypt has been facing a severe shortage of foreign currency liquidity since the outbreak of the Russo-Ukrainian War and its repercussions. This has led to a threefold devaluation of the Egyptian pound since March 2022, pushing the pound to decline against the dollar by about 25% since the beginning of 2023 and approximately 50% since March of the previous year. These preceding pressures indicate a potential further devaluation of the pound, which the markets are anticipating at a time when international financial institutions are increasingly urging authorities to implement flexible exchange rates. (Asharq Business)
- Egypt may resort to compulsory pricing for sugar within 10 days.
The Egyptian Minister of Supply, Ali El-Moselhi stated that the country will give traders a 10-day grace period to regulate sugar prices in the markets. In the event of non-compliance, "we may resort to compulsory pricing. Sugar prices in Egypt surged by over 50% in the past week, exceeding 50 Egyptian pounds per kilogram in the markets. Some traders have been stockpiling the commodity in anticipation of a government price increase. El-Moselhi added, that the country's sugar stock is sufficient for up to 5.5 months. He emphasized that the Ministry of Supply will not resort to flooding concerning sugar to preserve reserves. (Asharq Business)
- The stock market rises slightly in morning trading, with the Seventy Index increasing by 0.45%.
The Egyptian stock market indices started trading on Sunday with a collective increase. The main index, EGX30, rose by 0.06%, reaching 25,535 points. The Commercial International Bank (CIB) stock, with the highest relative weight in the EGX30, recorded a 0.67% increase, trading at 79.83 Egyptian pounds. The EGX70 and EGX100 indices, with equal weights, increased by 0.45% and 0.39%, respectively. The total trading volume on the Egyptian stock exchange amounted to 670.631 million Egyptian pounds, involving 194 companies and 22,770 thousand transactions. (Hapi Journal)
- Spinneys Egypt" signs a new hypermarket operation contract in partnership with "Neom Arabella."
"Spinney’s Egypt" has signed an agreement with "Neom Arabella for Real Estate Development" to establish and operate a " Spinneys " hypermarket in the Inawax Mall project in the Fifth Settlement. Muhannad Adly, the CEO of Spinneys Egypt, stated that the branch is set to be implemented as a hypermarket covering a total area of 4,000 square meters, with planned investments estimated at around 150 million Egyptian pounds. He added that the branch is expected to provide approximately 300 new direct job opportunities, along with over three times that number in indirect employment opportunities. (Al Borsa News)
- The Petroleum Ministry signs a 2.5 million USD contract with the Canadian company "Lotus" for gold exploration.
The Ministry of Petroleum and Mineral Resources has signed a contract with the Canadian company "Lotus" worth $2.5 million for gold and associated minerals exploration in the city of Marsa Alam. "Lotus" is among the largest Canadian companies operating in the mining sector and participated in the global gold bid number (1) for the year 2020 in its first and second rounds. In its first round, the company acquired 7 sectors, covering an area of approximately 1,219 square kilometers. (Economy Plus)
- CBE sets rules for credit information, rating companies
The Central Bank of Egypt (CBE) has introduced fresh guidelines for credit information and rating firms. These rules are designed to guarantee the robustness and effectiveness of these companies while safeguarding the rights and interests of their clients. The companies are given a one-year timeframe to adhere to these regulations, failure to comply may result in penalties. In accordance with Law No. 194 of 2020, the CBE holds the authority to grant licenses, oversee, and regulate these entities. Additionally, the CBE will monitor their adherence to applicable laws, regulations, and standards. (Daily News)
- "Fawry" Egyptian company seeks to recover "compromised" data due to a cyber breach.
"Fawry," the largest electronic payment company in Egypt, is working with regulatory authorities in the country to recover "compromised" data recently affected by a partial cyber breach in the company's application testing system. Ashraf Sabry, the founder and CEO of the company, stated that "it is difficult to determine the volume of data that has been encrypted by hackers." He revealed that 2,030 servers for live operating systems used by individuals and institutions were examined, and it was confirmed that they were not compromised. (Asharq Business)
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