Egypt is the eighth in the Arab world in high inflation rates and stability until the first quarter
For our top talks today, Egypt is the eighth in the Arab world in high inflation rates and stability until the first quarter. High inflation rates are a burden on the economies of the Middle East, especially as it is a global problem, and these increases are considered the highest since the global financial crisis in 2008, and the timing of their continuation is unknown, as well as their negative repercussions on economies. As confirmed by the Organization for Economic Co-operation and Development (OECD), prices are rising at different rates across 38 countries, which all represent about 60% of the global economy. According to a recent report issued by the International Monetary Fund (IMF), monitoring the inflation rates in 10 countries in the Middle East and Central Asia since last year, through the current year and until next year. Morocco topped the list at a rate of 1.4% compared to 0.6% last year, to decline next year to 1.2%, while Egypt came in eighth. (IMF)
- That will lead us directly to the CBE’s final policy meeting of the year, which will take place on 16 December.
Policymakers have held off lowering interest rates further this year and it is expected that will continue to remain doing so next Thursday in the face of Egypt’s current account deficit. The current account deficit widened by almost two thirds during FY 2020-2021 to 18.4 billion USD due to falling tourism revenues and rising imports. It is expecting it to narrow to 4.0% of GDP during the current FY from 4.8% in 2020-2021. (CBE)
- On the other hand, Russia will start financing construction of the industrial zone in Egypt and is considering the use of such format in other countries, First Deputy Minister of Industry and Trade Vasily Osmakov told TASS News agency.
Industrial zone construction was initially intended for 2020, but the timeframe was shifted due to the coronavirus pandemic. In 2018, Russia and Egypt concluded the intergovernmental agreement on the zone with the preferential tax treatment in Egypt. It is planned that resident companies will be able to launch production as early as in 2022. (Arab Finance)
- In a similar context, the Arab Investment Forum is looking for investment opportunities in the financial technology and defense sectors, Khaled Abu Haif in an interview with the “CEO Level” program on “ALMAL TV”.
Moreover, he added that they will inject new funds into “Al-Tawfiq Leasing”, “Perfect Yarn” and “United Investments”. They do not impose conditions when investing because our transactions are subject to the provisions of Sharia. Final stages in negotiations for food and entertainment investment opportunities. (Al-Mal)
- Equally important, it is worthy to highlight that the oil and petrochemical industries are among the vital industries that receive attention and are involved in many industries, but they face a group of risks specific to this type of industries.
The Egyptian Insurance Federation confirmed that with the development of oil industry technology and the devices used in it, it was necessary to pay attention to managing the risk of these industries, which constitute an important part Among the main and major risks of oil insurances, which include assembly, processing and storage plants, gas plants, chemical plants, and refineries. (Al-Mal)
- Also, Dr. Rania Al-Mashat, Minister of International Cooperation, launched the joint coordination platform, under the title "Investing in Human Capital for Sustainable Development",
with the aim of presenting the Academy's vision in providing multidisciplinary training programs and building cadres and leaders in light of the government's plan to invest in human capital. This comes as a continuation of the periodic meetings held by the Ministry of International Cooperation, within the framework of the joint coordination cooperation platform, to present development efforts and economic and structural reforms implemented in the various sectors of the state, with the participation of multilateral and bilateral development partners. (Al-Mal)
- And for our EGX & companies talks, WaffarX, Egypt's first Cash Back provider, closed a multi-million USD funding round from Silicon Valley VC firm Lobby Capital.
WaffarX plans to use the funds raised to expand its platform and user base, and enter new markets in the MENA region. Previously, the company raised three funding rounds, with tech investor A15 leading their latest round with 230,000 USD. Founded in 2018, WaffarX connects users with coupons, promos, and cashback rewards for its merchant partners, which include e-commerce giants Jumia, Amazon and Noon. It uses cutting-edge technology to distribute cashback rewards, helping shoppers save on every dollar they spend. (Arab Finance)
- Furthermore, Sympl, the first ‘Save Your Money Pay Later’ platform in Egypt, has raised $6 million seed round.
The round was led by Beco Capital along with A15, and Global Ventures, three of the top-tier Venture Capital firms in the region. Sympl will use the proceeds to accelerate the growth of its merchant network to serve multiple product and service categories across online and in-store merchants as well as improving the product offering to better serve the platform customers. (Al-Mal)
- In addition, the UAE’s foreign exchange and worldwide money transfer company, Al Ansari Exchange, has teamed up with the Bill & Melinda Gates Foundation to earmark 10 million USD for the regional healthcare sector.
Through the foundation’s matching program, the pledged amount will be directed to endorse healthcare humanitarian programs in the Middle East and Africa (MEA) region. The joint collaboration aims to reduce inequities in health through the development of new tools and strategies that are capable of eliminating the burden of neglected tropical diseases (NTDs), which affect over 1.7 billion of the world’s population residing in low-income areas in the Middle East, Africa, and Asia. (Mubasher)
- Likewise, El Ezz Dekheila Steel - Alexandria (IRAX) has acquired 18% of the shares of the Egyptian Steel Company for 2.5 billion EGP, provided that the deal will be financed from the company's resources.
The liquidity and investments of “Ezz Dekheila” treasury bills amounted to about 2.9 billion EGP, according to the company’s financial position at the end of last September. “Ezz Steel” owns 64% of the company’s shares, while the rest is traded on the EGX, and most of it owns financial institutions. Businessman Ahmed Abu Hashima owns 18% of the shares of "Egyptian Steel", and the remaining share of the National Service Projects Organization. The acquisition comes at a time when "Ezz Steel" seeks to seize the current opportunities with the high global demand for flat steel that feeds many industries. Ezz consolidated flat steel sales amounted to EGP 22.7 billion in the first nine months of this year, representing 46% of total sales, and Ezz Steel exported 57% of its steel production. The company's exports jumped by 269 percent in the first nine months of 2021, reaching 1.014 billion USD. (Al-Mal)
- Also, the Egyptian Modern Education Systems (MOED) has signed a corporation protocol with Nahdet Misr Publishing Group. Under the agreement, exam centers will be established as per the local and international standards.
The protocol will be implemented in accordance with the license obtained by Nahdet Misr from the UK’s Cambridge University. A study will be conducted to set the financing needs required to establish the centers and it will be reviewed by the upcoming general meeting. (EGX)
- Abu Auf is looking to grow its export volume 30% in 2022, aiming to ramp up sales of nuts, coffee and healthy foodstuffs to new foreign markets. The company plans to raise its exports in Kuwait, Bahrain, Morocco, France, Germany, and several African countries.
Recently, the company opened five branches in the UAE through a wholly owned subsidiary. The company is now looking for new foreign markets for as many as 65 of its products, including spices and dates. It is worth noting that Abu Auf plans to sell up to 49% of its shares in an offering on the EGX during the second quarter (Q2) of 2022. (Arab Finance)
- Pyramids Developments announced the launch of Pyramids City in the New Administrative Capital (NAC).
With 25 billion E`GP investment, the new project spans over 140 feddans. The newly launched city will feature stores, offices, medical units, as well as entertainment and hospitality components. Concreative Consultancy is the engineering consultant and Mohamed Talaat Architects is the architect for the project. Additionally, the real estate developer is negotiating with two companies to finalize the construction works of the project. (Arab Finance)
- Moving to our top story abroad, the United States, Australia and Japan said they would jointly fund the construction of an undersea cable to boost Internet access in three small Pacific nations, as Western allies seek to counter growing Chinese influence in the region.
It is noteworthy that technology companies are trying to enter the world of communications and Internet infrastructure by investing in the extension of submarine cables that connect parts of the world to the Internet, and Facebook has entered this field with its recent cooperation with Orange. (Reuters)
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