Egypt tourism sector is strongly recovering reaching 60% of the 2019 rates from the German market during the winter of 2021/2022
For our top macro talks today, first, Egypt tourism sector is strongly recovering reaching 60% of the 2019 rates from the German market during the winter of 2021/2022. It is expected to resume flights from Germany to Sharm El-Sheikh and Luxor in mid-December. We believe that the Egyptian destination will achieve 2019 rates in full during the winter of 2022/2023, with regard to the volume of tourist traffic coming from the German market. Noting that the recovery will be at a faster pace during the winter season of 2021/2022, starting from the end of next October. Also, the UK announced the removal of Egypt from what it called the “red list” for travel as of September 22nd.
- Second, Egypt plans to export electric power to South Sudan during the coming period through the establishment of an electric linkage line with it, passing through the State of Sudan, which is currently linked with Egypt.
The ministry is currently increasing the capacity of the connection line with Sudan from 80 megawatts to 300 megawatts, pointing out that the line capacity increase will be completed during the last quarter of 2022. Egypt recently succeeded, through Siemens, in inaugurating 3 electric power stations, the largest in the world with a combined cycle system, which are "Bani Suef", "Al-Karimat" and "The New Capital", with capacities of 14,800 megawatts, bringing Egypt's total electricity production to about 60,000 megawatts.
- Equally important, Egyptian insurance companies have begun to move towards expanding retail activity by issuing individual products and targeting individual customers, and the company is seeking to overcome the effects of the Corona virus through means to attract new segments of customers and stimulate the demand for insurance.
“Enaya” care aims to manage “medical” premiums worth 325 million pounds next year.
- In the same fashion, Revenues of the Suez Canal rose 20% Year-on-Year in August 2021 recording 563 million USD in August 2021, compared to 468 million USD in August 2020. The number of ships transiting the waterway increased by 24.6% YoY by the end of August 2021.
Around 1,884 ships crossed the waterway during August 2021, compared to 1,512 ships during the same month in 2020. The authority indicated that the total tonnage of transiting ships increased to 110.2 million tons during August from 95.1 million tonnes in August 2020, an increase of 15.9%.
- And for our investments talks, first, South Korea plans to provide 250 million USD in loans to Egypt for a state railway modernization project in a bid to promote economic cooperation with Cairo.
The country has decided to tap the Economic Development Cooperation Fund (EDCF) to offer its low-interest rate loans to Egypt for the project to reconstruct railways linking Luxor and High Dam. Egypt is launching the 6 billion USD project to modernize railways spanning from the northern port city of Alexandria and capital Cairo to High Dam, a dam across the Nile River in Aswan.
- Second, First Investment Company and Real Estate Development (FIRE) has decided to prepare a study on the available investment opportunities in the fintech sector.
This will come under the company’s future plans to invest in an affiliated company or a subsidiary or as a main shareholder in the fintech sector. Moreover, the board has assigned the company’s chairman in choosing the research and advisor companies to conduct this study.
- By the same token, the National Bank of Egypt (NBE) and Kuwaiti energy investor, Ikarus Petroleum Industries, will invest up to 2 billon EGP in the Egyptian petrochemicals sector.
NBE’s investment arm Al Ahly Capital will act as the JV’s direct investment manager, according to the terms of a partnership agreement. Amr & Partners Law Firm was NBE’s legal advisor while Al Tamimi & Company acted as Ikarus’ legal advisor for the agreement.
- Likewise, Alameda Healthcare injects 10 billion EGP in investments into the Egyptian market of which 5 billion EGP will be in the coming period.
It is worthy to highlight that digital transformation and technology are a major priority for the group, which is reflected in the continuous development of our facilities and the use of the latest in medical equipment technology to provide the best levels of medical care to patients.
- Finally, for our EGX and companies talks, first, the Giza General Contracting and Real Estate Investment Company announced yesterday, the assignment of infrastructure works in 15 May City, with a total value of approximately 240.7 million EGP.
The company's latest business results showed an increase in net profits of 22.2 million EGP during the first quarter ended last March, compared to 9.8 million EGP during the comparative period of 2020. The consolidated results sent to the stock exchange on June 13 revealed that Giza Contracting’s revenues increased to 288.2 million pounds during the mentioned period, compared to revenues of 249.2 million pounds during the comparative period of 2020.
- Second, Zahraa El Maadi Company for Investment and Development announced the sale of three plots of land in a public auction that took place on September 16, with a total value of 47.8 million EGP noting that the average selling price for the three pieces ranged between 17 thousand and 18.2 thousand pounds per meter.
Moreover, the company’s board of directors agreed on (23 September) to offer a plot of land with an area of 53.7 thousand square meters, to be developed under the partnership system with real estate developers.
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