Egypt is set to apply a minimum monthly wage of 2,400 EGP for private sector employees
For our top talks today, Egypt is set to apply a minimum monthly wage of 2,400 EGP for private sector employees with a monthly bonus worth 3 percent of the employee’s insurance starting January 1st 2022, according to the National Wages Council (NWC). This is the first time that Egypt has set a minimum wage for the private sector. According to the NWC, a number of private sector entities will be exempt from applying the minimum wage through mid-February 2022, with a total of 3,090 individuals and 2,855 entities, as they are still suffering the economic impacts of the COVID-19 pandemic. These entities had submitted applications to the NWC asking to postpone implementing the minimum wage. (Economy Plus)
- Suez Canal revenues jumped 13% Year on Year (YoY) to 6.1 billion USD in 2021, according to a recent statement by the Suez Canal Authority (SCA). The waterway recorded 5.61 billion USD in full-year receipts in 2020.
The waterway had a record-breaking year in terms of revenues and traffic volumes, with almost 20,000 ships crossing the canal this year so far, compared to 18,000 ships in all of last year, with a 5.1% YoY increase in annual net tonnage. The performance comes despite the Ever-Given crisis that blocked the canal for almost a week in March. (Arab Finance)
- Moreover, the Suez Canal Economic Zone (SCZone) and Abu Qir Fertilisers and Chemicals Industries Company signed a contract establishing the biggest complex for methanol and ammonia production in the Ain Sokhna Industrial Zone at an investment cost of 2.6 billion USD.
The complex, operated by the International Company for Methanol and Derivatives, will be established on a span of 2 million square metres with a storage area of 50,000 square metres. The Egyptian joint stock company is owned by Abu Qir Fertilisers Company, Helena Fertilisers Company, and Al-Ahly Capital Holding Company. It will be established over two phases, with the cost of the first phase estimated at 1.6 billion USD, the statement said, adding that it will be completed in 2025. (Al-Mal)
- In a similar context, Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the World Bank Group (WB), conducted a meeting with the team responsible for the World Bank’s Development Policy Financing (DPF) loan program.
Al-Mashat discussed extending the Country Partnership Framework (CPF), in order to maintain the momentum and build on the strong progress achieved over the course of the 2015-2019 CPF and its two-year extension that followed. It is worth noting that Egypt will host the 27th Conference of Parties to the United Nations Climate Change Convention (COP 27) in 2022. (Arab Finance)
- In addition, Dr. Mahmoud Mohieldin said that the financial markets in the major countries are heading to the red color due to the conditions of uncertainty. He explained that "volatility is still a feature of the markets, and this reflects the state of uncertainty and this is due to the health effects of the pandemic.
Mahmoud Mohieldin stressed that the global economy does not operate alone, but is affected by political conditions, and this is clearly evident in the performance of the American, European and East Asian stock exchanges, as they represent a mirror of the economy compared to the Egyptian market, which reflects the performance of the real economy. (Al-Mal)
- Moving to our investments talks, the Sovereign Fund of Egypt (SFE) and Mobica agreed to establish two schools in the Cosmic Village. The project will be executed by SFE and Mobica within the framework of the Fund’s plan to exploit movable assets and support education.
Under the deal, GEMS Egypt will manage the two schools for an administrative fee. Hala El-Said, Minister of Planning and Economic Development and Chairperson of the SFE, said the project reflects the Egyptian state’s intention to invest in untapped assets to achieve the highest possible returns, and that investment in education related to modern technologies is consistent with the national program for structural reforms and supports improving the quality of the human element in the labour market. (Al-Mal)
- The Medium, Small and Micro Enterprise Development Agency (MSMEDA) and Misr El Kheir Foundation signed an agreement to establish new business incubators and launch programs to raise the capabilities of young people and entrepreneurs nationwide, especially in Upper Egypt.
Tarek Shash, Executive Vice President of MSMEDA, said that the agency is coordinating with various concerned authorities to spread the idea and culture of self-employment among citizens, especially in the governorates of Upper Egypt. (Arab Finance)
- Turing to our EGX and companies talks, Kyndryl, the world’s largest IT infrastructure services provider, lunches in Egypt and expresses commitment to help digital transformation.
At its official launch in Egypt, the event comprised dozens of government officials, customers, business partners and members of the press to discuss the advantages of new and emerging technologies in speeding digitalization and innovation as well as spurring the country’s competitive growth. According to IDC, approximately 65% of global GDP will be digitalized by 2022 as companies and organizations build on strategies and investments to scale for the future of business. (Arab Finance)
- Wadi Consulting has purchased 5.80 million shares in Cairo Housing and Development Company (ELKA), acquiring a 6.442% stake in the company. The transaction has been carried out at a total value of 197.20 million EGP, equivalent to an average price of 34 EGP per share.
Cairo Housing is an Egypt-based firm engaged in real estate and housing development operations. The listed company’s main activities include acquiring, selling, and leasing lands and buildings as well as city planning and infrastructure construction activities. (EGX)
- Pioneers Properties for Urban Development has sold 5.80 million shares in Cairo Housing and Development Company (ELKA). Accordingly, Pioneers Properties has cut its stake in Cairo Housing to 70.002% from 76.446%.
The transaction has been implemented at a total value of 197.20 million EGP, equivalent to an average price of 34 EGP per share. Cairo Housing is an Egypt-based firm engaged in real estate and housing development operations. (EGX)
- United Development Group (UDG) announced achieving EGP 200 million of contractual sales in its project “E Tower” in the New Administrative Capital (NAC) within two weeks after the launch. E Tower is spanned over 14,000 square meters at an investment cost of 750 million EGP. The 14-storey project is scheduled to be delivered in 4 years.
Tarek El Gedawy, CCO and Board Member at UDG, said that E Tower witnessed high demand due to its distinctive location in CBD, its architectural design, and the various unit sizes and spaces offered. El Gedawy added that the company is currently planning to launch a number of projects worth EGP 5bn across several new cities soon. The real estate developer also plans to launch another project in the NAC during the first half of 2022. (Arab Finance)
- And finally, Zahraa Maadi Investment and Development (ZMID) has signed a contract with Heliopolis Housing and Development (HHD) (HELI) to purchase a land plot extended over 31,201 square meters in New Heliopolis city at a price of 3,470 EGP per sqm at a total value of 108 million EGP.
The company has settled 10% of the total value as a down payment, the statement added. Zahraa Maadi will pay the remaining 90% in quarterly installments over 5 years as of March 2022 until December 2026. (EGX)
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