Egypt raises natural gas prices for cement, petrochemical industries

Newsletter

11 Oct 2022

Egypt raises natural gas prices for cement, petrochemical industries. Egyptian Prime Minister Mostafa Madbouly issued a decree setting the sale price of natural gas supplied to the cement industry to 12 USD per million British thermal units (MBTU). The decree also set the price of natural gas supplied to the petrochemicals industry for the production of the ethane-propane mix to a minimum of 4.5 USD per MBTU. On September 13th, Madbouly issued a decree increasing the minimum price of natural gas supplied to the producers of nitrogen fertilizers, who are set to pay 4.5 USD per MBTU. (Al-Arabiya News)

Egypt’s annual inflation hits 15.3% in September.
Egypt's annual headline inflation reached 15.3% in September 2022, compared to 8% in the same month of 2021. The monthly consumer price index (CPI) recorded 133.8 points in September, marking a 1.6% increase as compared to August. The CAPMAS attributed the increase in CPI to a 1.8% month-on-month (MoM) increase in meat and poultry prices, a 4.4% MoM increase in the prices of milk, cheese, and eggs, and a 6.2% MoM hike in the prices of vegetables. (CAPMAS)
Egypt’s net FDI jumps 71.4% YoY in FY 2021/22.
Net foreign direct investments (FDI) injected into Egypt during the fiscal year (FY) 2021/2022 surged by 71.4% year-on-year (YoY) to around 8.9 billion USD. The increase was ascribed to an 81.3% YoY hike in FDI in the non-oil sector, which reached around 11.6 billion USD in FY 2021/2022. Net inflows for greenfield investments and capital increases of existing companies increased to around 3.4 billion USD in the year that ended on June 30th 2022 from 2.1 billion USD a year earlier. (Arab Finance)
Madbouly holds meeting to discuss offering stakes in some of the affiliated hotels to the Egyptian General Company for Tourism and Hotels (EGOTH).
A group of international investors and investment funds submitted offers for the hotels. The hotels are currently under evaluation and the procedures of the offering are coordinated between both ministries, the Ministry of Public Business Sector and the Ministry of Planning and Economic Development pertaining. It is worth noting that EGOTH is a subsidiary of the state-owned Holding Company for Tourism, Hotels, and Cinema (HOTAC). (Arab Finance)
Russian-Ukrainian war adds 24 billion EGP to Egypt’s bread subsidy bill, according to the Minister of Supply and Internal Trade Ahi El-Moselhi.
El-Moselhi called for the formation of a joint parliamentary committee among the committees of agriculture, economics, and social solidarity to discuss upgrading the efficiency of bread subsidies. Egypt is seeking to increase the total area of lands cultivated with wheat in the coming period, El-Moselhi noted, adding that the country is consuming around 18 million tons of wheat annually and produces up to 10 million tons. El-Moselhi stated that one million feddans of wheat would be added to the total cultivated area in the coming period. (Gomhuria Online)
World Bank supports 14 projects in Egypt with 7 billion USD.
The portfolio includes a 500 million USD food security project and another 400 million USD dedicated to developing a trade logistics line between Egypt and Alexandria. The World Bank also allocated 900 million USD to boost the social protection network and 1 billion USD to a social housing project. The international institution’s portfolio included 500 million USD dedicated to a project supporting local development in Upper Egypt. (Arab Finance)
CI Capital’s arm launches Misr Equity.
CI Capital Holding for Financial Investments (CICH) announced that its subsidiary CI Asset Management has launched Misr Equity, an investment fund for shares with cumulative return. CI Capital is also planning to offer 3 new investment funds in 2023, including a commodity fund and a cash fund. Misr Equity is the first-of-its-kind to echo the returns of the EGX30 Capped Index through investments in an equity portfolio similar to that of the EGX30. The subscription into the fund will be opened on October 10th only for the customers of CI Asset Management, CI Capital, Misr Capital Brokerage, and Mubasher. (Hapi Journal)
NATCO buys 33% stake in Electrified.
National Automotive Company (NATCO) acquired around 33% of Electrified, a company offering online services for electric vehicles (EVs). CEO of NATCO Yasser Saleh said that the acquisition deal is part of the efforts for supporting Electrified’s growth and expansion. The deal comes in line with NATCO’s goals to become among the biggest companies specialized in all EV services, including manufacturing, sale, maintenance, spare parts, and financing, Saleh added. He revealed that the company’s factory in west Port Said seeks to increase production capacity, adding that several memoranda of understanding (MoUs) were signed with three companies to receive a portion of the factory’s output. (Al-Mal News)
B.TECH to relocate administrative headquarters to MNHD’s Kinda.
B.TECH has signed a contract with Madinet Nasr Housing and Development (MNHD) to relocate its administrative headquarters to the latter’s Kinda project in Taj City, New Cairo. The new headquarters will be established on an area of 12,000 square meters (sqm), and is set to be delivered by the end of 2023. Marking the beginning of long-term cooperation between the two companies, this deal comes in line with B.TECH’s expansion plan in the Egyptian market as well as MNHD’s strategy to expand in administrative and services projects. (Hapi Journal)
El-Dokki Court cancels verdict against Qalaa Holdings.
El-Dokki Court accepted the objection by Qalaa Holdings (CCAP) regarding the cases pertaining to Ali bin Hassan Al Dayekh, canceling an earlier verdict against the group in three cases that cover four cheques worth 10.17 million US. On September 12th, Qalaa Holdings announced it deposited about 18.5 million USD in El-Dokki Court’s treasury as the total value of cheques related to the company’s dispute with Ali bin Hassan Al Dayekh until the final adjudication in this case. The group has filed several civil cases and initiated criminal reports over the past period regarding this dispute. (Arab Finance)
Nemow for Consulting sells 1.12% stake in Arab Dairy Products.
Nemow for Consulting Company has sold a 1.12% stake in Arab Dairy Products Co. Arab Dairy (Panda) (ADPC) for 7.621 million EGP, equivalent to an average price of 2.345 EGP per share. Accordingly, the company’s stake in Panda has been cut to 2.96% from 4.08% after selling 3.25 million shares. (Arab Finance)
QNB Al Ahli’s consolidated profit jumps 22% YoY in 9 months.
Qatar National Bank Alahli (QNB Al Ahli) (QNBA) posted a 22.06% year-on-year (YoY) increase in consolidated net profit attributable to the bank for the first nine months 2022. Consolidated net profit excluding minority interest amounted to 7.33 billion EGP in the period from January to September 2022, compared to 6.006 billion EGP in the same period of 2021. In the third quarter (Q3) of 2022, the bank recorded a consolidated net profit of 2.57 billion EGP, compared to 1.90 billion EGP in Q3 2021. (Mubasher)