ADQ Holding, will allocate 10 billion USD in investment fund for projects in Egypt and Jordan

Newsletter

30 May 2022

Firstly, ADQ Holding, one of the region’s largest holding companies with local and international investments, will allocate 10 billion USD in investment fund for projects in Egypt and Jordan, Emirates News Agency (WAM), according to the Minister of Industry and Advanced Technology Sultan bin Ahmed Al Jaber. This comes in line with the directives of President Mohamed bin Zayed Al Nahyan following the launch of activities under the industrial partnership for Sustainable Economic Growth between the UAE, Egypt, and Jordan. Under the partnership, the funds will be directed towards agreed sectors, the minister noted. It is worth noting that the Secretary-General of the UAE International Investors Council (UAEIIC) Jamal Saif Al Jarwan said that the UAE seeks to boost its investments in Egypt to 35 billion USD over the coming five years from 20 billion USD now. Egyptian Ministry of Trade and Industry Nevine Gamea recently revealed that the trade exchange between Egypt and the UAE recorded around 3.623 Billion USD in 2021.

In addition, the UAE is looking forward to boosting its investments in Egypt to 35 billion USD over the coming five years after investment reached 20 billion USD now, according to the Secretary-General of the UAE International Investors Council (UAEIIC) Jamal Saif Al Jarwan.
The Egyptian economy is flexible and attractive to investors, Al Jarwan said, stressing that foreign investments in Egypt are being supported under the supervision of President Abdel Fattah El-Sisi. “Emirati investors will be your partners forever,” he said, noting that they will be partners in the new phase launched by the Egyptian government, which was recently announced by the Egyptian Prime Minister Mostafa Madbouly during the global press conference.
Here, it’s worthy to mention that the trade exchange between Egypt and the UAE recorded around 3.623 Billion USD in 2021, according to the Egyptian Ministry of Trade and Industry Nevine Gamea.
Gamea has called Emirati companies to visit the industrial zones in Egypt and to boost their investments in the Egyptian market. The ministry is keen on strengthening ties with Emirati firms by communications through the Egyptian Commercial Office in Dubai, in order to help investors, overcome any obstacles facing them in Egypt, she said. The Egyptian industrial sector is currently witnessing a remarkable development due to the success of the government’s economic reform program, contributing to achieving the highest growth rate of Egypt’s commodities exports by 27%, Gamea added. (Arab Finance)
Secondly, Egypt plans to sell 30% of a government hotel group to a strategic investor.
The Egyptian Prime Minister, Mostafa Madbouly, announced in mid-May that the government was working on merging 7 government hotels under the umbrella of one company in preparation for its listing on the stock exchange, as well as merging the largest 7 ports under one entity in preparation for its listing in the stock market as well. These hotels, according to government data, include: the Cairo Marriott Hotel, the Aswan Cataract, the Mena House, the Steiger hotels in Cairo and Damietta, and the Winter Palace Hotel. Egypt seeks to enhance the participation of the private sector to accelerate the pace of economic growth by offering government companies on the stock exchange and through direct participation with major investors. In addition, Abdullah Al-Abyari, head of the investment sector in the Sovereign Fund of Egypt, announced during the "Portfolio Egypt" conference sessions yesterday, Sunday, that the fund will offer the "Safi" and "Watania" companies on the stock exchange before the end of this year. The Egyptian government aims to offer some government assets to the private sector to acquire percentages of them. The government estimates the value of these assets at about 40 billion USD, to be offered over 4 years, at an average of 10 billion USD per year. (Bloomberg Asharq)
On the other hand, the EU is working on an agreement to import more Israeli gas through Egypt as the bloc tries to secure new supplies and cut imports from Russia.
We could sign an MoU with the EU and Israel that would up the amount of Israeli gas that we process into LNG and ship on to Europe, according to the business information service. The agreement could also see us work more closely with the EU and Israel on clean energy projects. All EU member states would have to approve the potential agreement for it to go through. The east Mediterranean could become one of the EU’s most important sources of natural gas in the coming years as the bloc looks to wind down imports of Russian gas, which currently provide 40% of its consumption. In a plan released earlier this month, the EU said it will invest 12 billion EUR in pipelines and LNG facilities to increase gas supplies from other producers such as Egypt and Israel. (Bloomberg)
Moreover, the Minister of Oil and Gaz, Tarek El Molla, stated that We have ambitious plans to coordinate with neighboring eastern Mediterranean countries on meeting the increased demand from the EU and the world for LNG over the next few years.
The Cairo-based East Mediterranean Gas Forum brings Egypt, Greece, Cyprus, Jordan, Israel, Palestine, Italy and France together to work on developing regional gas assets. The Madbouly government also late last year signed agreements with Greece and Israel laying the groundwork to up import and re-export volumes, and will start construction by the end of this year on a pipeline connecting Cyprus’ Aphrodite natural gas field to Egypt’s liquefaction plants. (Bloomberg)
However, shoring up EU supplies significantly would require the development of new large gas deposits in the east Mediterranean.
Israel is set to double its gas production to reach around 40 billion cubic meters over the next few years. Israel currently ships gas to Egypt via the Eastern Mediterranean Gas pipeline that runs between Ashkelon and Arish, which has an approximate annual capacity of 7 bcm. The country in March began exporting gas to Egypt via the Arab Gas Pipeline for the first time, with exports targeted at 2.5-3 bcm this year, potentially increasing to 4 bcm in the future. (Bloomberg)
Also, Egypt aims to increase the share of eco-friendly projects in budgets to 50% of general investments, according to the Minister of Finance Mohamed Maait.
This will pave the way for new partnerships with the private sector, which will contribute to economic growth and create job offers, Maait highlighted. The presidential initiative, under which obsolete cars that were manufactured 20 years ago would be replaced with new cars run by gas, will be launched within a few days in Sharm El Sheikh in accordance with the government’s efforts to face climate change and reduce CO2 emissions, the minister noted. The initiative comes in line with the directives of President Abdel Fattah El-Sisi to achieve the green economy transition, in line with the ongoing preparations for hosting the 2022 United Nations Climate Change Conference (COP27) in Sharm El Sheikh next November, he stressed. (Arab Finance)
In addition, Siemens Mobility, Orascom Construction (OC) and Arab Contractors have signed a contract with the government for the second phase of the planned 2k-km high-speed rail line.
The consortium will design, install, commission and maintain the line for 15 years in what Siemens CEO Roland Busch called “the biggest order” in the company’s history. The second line will run 1.1k km between Greater Cairo and Abu Simbel near the southern border, passing through Luxor and Aswan, while the 225-km third line will connect Luxor and Hurghada. The consortium signed a 4.5 billion USD contract to build the first phase of the line last September. This section runs 660 km between Ain Sokhna and Marsa Matrouh. (Bloomberg Asharq)
This will be the sixth-longest and most-modern high-speed rail network in the world, Busch said. The project will connect 60 cities nationwide, with trains running at up to 230 km/h.
“This means that approximately 90% of Egyptians will have access to this modern, safe, and integrated rail system,” the Siemens statement read, with the project slashing carbon emissions by 70% compared to traditional modes of transportation. Neither of the companies provided a value for the contract, instead breaking it down into individual shares. Siemens said its total share of the combined contract is 8.1 billion EUR (c. USD 8.7 bn) while OC’s share is USD 1.8 bn. Arab Contractors’ share is unknown. The German conglomerate will supply 41 Velaro eight car high-speed trains, 94 Desiro high-capacity four car regional train sets, and 41 Vectron freight locomotives. It will install the signaling systems on all three lines, and deliver the power supply system for the project. (Bloomberg Asharq)
Egypt is engaging in mutual plans with East Mediterranean countries to increase supplies of liquified natural gas (LNG) to Europe over the coming period.
The minister stated that amounts of LNG pumped from Damietta and Edco plants are contributing to meeting the European Union's (EU) demand. Egypt has ambitious plans in coordination with East Mediterranean neighbors to supply a big chunk of European and global LNG demand in the coming few years, El-Molla noted. (Business Asharq)