Egypt has implemented the first phase of the light rail transit mega project at a cost of 1.30 billion USD
For our top talks today, first, Egypt has implemented the first phase of the light rail transit (LRT) mega project at a cost of 1.30 billion USD. The first phase has been carried out in Alexandria and is comprised six rail cars that each can transport up to 600 passengers per trip. This project is a part of an integrated transportation system executed by the Egyptian government across the country, the minister pointed out. The government is keen on finalizing the entire project, which will extend over 100 kilometers, over the coming period.
- Second, the Egyptian Tax Authority stated that individuals who make electronic content (bloggers - YouTubers)
must open tax files, as long as their income exceeds 500,000 pounds, within 12 months from the date of practicing the activity. The authority pointed out that in the event of any inquiries related to e-commerce, the integrated call center should be contacted on 16395 or heading to the headquarters of the e-commerce unit at the Egyptian Tax Authority.
- The Egyptian Gas Regulatory Authority (GASREG) has approved to grant 10-year term licenses for four local companies to operate natural gas compression and supply facilities.
The new licenses have been issued in favor of Egyptian International Gas Technology (GASTEC), Natural Gas Vehicles Company (Car Gas), Master Gas Company, and Crystal Egypt. It is worth noting that the Egyptian Natural Gas Holding Company (EGAS) is the main supplier and seller of gas in the local market. Egypt now has a remarkable surplus in terms of gas supply and output.
- Moving to our M&As and companies talks, Amer Group Holding discloses that it has acquired the right to trademark three new restaurants.
Amer Group acquires the trademark of “Studio Misr, Cofchino and Carino’s” restaurants. Also, on August 17, Amer Group disclosed that the management of the Porto Heliopolis project was assigned to the Marriott International Group, which is specialized in the field of hotel management. Moreover, the group launched two new projects in Port Said and Minya, with an investment cost of approximately 7.7 billion EGP (5 billion for the first and 2.7 billion for the second).
- In addition, the Egyptian Petrochemicals Holding Company (ECHEM) is currently studying several projects as part of the national plan for petrochemicals for 2020-2035.
One of these projects is the soda ash project with investments of 420 million USD as well as the metal silicon project and titanium dioxide project with investments of 300 million USD. Here, it is worth noting that the petrochemicals industry achieved production of 4.34 million tons, driving revenues higher by 43% than the target and by 50% year-on-year (YoY).
- Moreover, Hussein Sabbour Consulting Office is negotiating with another Saudi to enter into a partnership that qualifies to compete for projects in the Kingdom of Saudi Arabia.
Sabbour believes that Saudi Arabia will be the winning horse in the Gulf region during the next stage, within the framework of the plan it has set for the year 2030, as it is witnessing a large number of infrastructure and development project. It is worth mentioning that Hussein Sabbour's office is already present in the Saudi market, as it undertakes consulting tasks for a commercial entertainment project on the Jeddah Corniche with one of the Al Hokair Group companies.
- likewise, National Bank of Kuwait Egypt (NBKE) has signed a seven-year term partnership agreement with the multinational financial services cooperation Visa Inc.
It is worth mentioning that the long-term cooperation between NBK Egypt and Visa is one of the most prominent achievements in the banking sector in terms of digital products and modern e-payment solutions. Additionally, Banque Misr is in the process of obtaining its largest-ever syndicated loan worth about 1 billion USD. There are 22 banks from 11 countries, including banks from the US, Europe, Middle East and Asia have signed on to provide the loan.
- In the same fashion, for our investments talks, Speed Medical Company (SPMD) is planning to open 13 branches of its labs
during the first half of October 2021, with 20 million EGP in investments. The company will open 13 labs in Upper Egypt, which will bring the total number of Speed Medical’s labs to 134. Speed Medical revealed that its 30%-owned Egypt Labs has already prepared 19 branches under the expansion plan. Also, Ora Developers is close to obtaining a loan worth EGP 700 million from the Commercial International Bank (CIB) to begin the construction works at ZED Sports Club in New Cairo. The required financing to establish the company’s project in El Tagamoa El Khamis amounts to nearly EGP 6 billion, pointing out that Ora Developers will begin with the implementation of ZED Club as a first phase.
- Equally important, Rowad Tourism (Al Rowad) has witnessed a change in its shareholding structure as shareholder Ahmed Mohamed Nabih Hassanen purchased 1.130 million shares in the company at an average price of 55.84 EGP per share.
As a result, Hassanen’s stake in the company rose to 11.89% from 5.36%. The total value of the shares’ purchase transaction amounted to 63.142 million EGP. Noting that the transaction has been executed by Arabeya Online for Securities Brokerage. Also, Azimut Egypt Asset Management plans to launch 3 new investment funds within 6 to 9 months with a volume of between 16 or 17 million USD. One of these funds will specialize in a technology sector different from the conventional, while the second will focus on investing in a well-known field, for which there is a demand in the local market.
- Finally, for our EGX talks, Alhsn for Consulting Co lowered its stake in United Company for Housing and Development to 2.28% from 3.06%.
The transaction involved the sale of 2.150 million shares for 10.82 million EGP, averaging 5.03 apiece EGP. Also, Alexandria Spinning and Weaving (Spinalex) turned to net losses of 41.88 million EGP in fiscal year (FY) 2020/2021, against net profits of 97.59 million EGP a year earlier. The revenues declined to 120.64 million EGP in the year ended 30 June, compared to 137.266 million EGP in 2019/2020. During the first nine months of FY20/21, Spinalex incurred net losses of 19.4 million EGP, down from 35.69 million EGP in the prior-year period.
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