Egypt receives first two Innovia 300 monorail trains from Alstom

Newsletter

09 Sep 2021

In the First place, we have a big news to share! Egypt receives first two Innovia 300 monorail trains from Alstom. The two trains were developed at the company’s Derby factory in the UK and the propulsion systems application was led by Alstom’s site in Trapaga in Spain. We believe the delivery of the first eight fully automated cars is a major milestone in the Cairo monorail project, which includes two monorail lines, linking the New Administrative Capital and Sixth of October City with Greater Cairo.

Second, the volume of trade between Ukraine and Egypt during the first seven months of this year was about 894.2 million USD,
distributed between Ukrainian exports worth 830.8 million USD and Egyptian exports about 63.4 million USD. Moreover, the two countries are looking forward to strengthen their bilateral cooperation in the field of information technology in specific.
Also, Egypt-Oman trade exchange hits 500 million USD.
The Omani investments in Egypt reached 77.5 million USD, injected into 92 companies operating in manufacturing, tourism, construction, and agriculture. Meanwhile, the Egyptian investments in the GCC nation stood at 680 million USD, pumped into 142 companies specialized in infrastructure, road construction, and real estate investment.
Taxes and customs duties collected from the certificates received amounted to 1.196 billion EGP, while VAT amounted to 2.809 billion EGP, while other fees collected from those certificates amounted to 377.876 million EGP. Here, it’s worth mentioning that Egypt’s President Abdel Fattah el Sisi directed proceeding with a plan to automate all tax and customs procedures by March 2022. The step aims at facilitating services offered to citizens and achieving the biggest amount of transparency to fight corruption.
With this in mind, Egypt’s economic growth is relatively strong, with real GDP growth projected to hit 5.3% in the fiscal year 2022/2023, according to Standard & Poor’s (S&P) latest report.
Adding that public investment in the country’s infrastructure and other projects will drive much of its expected growth, however, it will cause fiscal and external deficits. Moreover, Egypt’s high real interest rates compared to other emerging markets will likely also maintain some investor interest. However, the government has a very high-interest burden, and this will continue to weigh on public finances.
Likewise, for Egypt green economy, Egypt plans to increase the number and frequency of its Green bond issuances following the success of a 750 million USD sale a year ago.
Proceeds from the 2020 sale were earmarked for financing or refinancing green projects in sectors such as transportation, renewable energy and energy efficiency. It is worth noting here that Egypt is more vulnerable to sharp capital outflows today, compared with several years ago, because of its higher exposure to external debt and elevated government financing needs of more than 30% of GDP annually, which is partly driven by its large proportion of short-term debt.
More about green incentives, the Egyptian government has injected 115 million EGP in the obsolete vehicle replacement initiative until the end of August.
The finance acts as a green incentive for the replaced car owners. The allocated finance for the first phase of the initiative was estimated at 7.1 billion EGP over three years. The initiative to replace aging cars with new ones powered by natural gas has so far delivered 5,050 passenger cars and taxis.
Moving to our companies talks, first, Al-Araby Group signed an agreement of industrial technical cooperation with the Sudanese company Al-Barbari to manufacture and market household and electrical appliances in Sudan.
Al Araby’s strategy is to expand trade in the world markets through exporting and manufacturing processes, explaining that it was agreed with Al Barbari Company to establish factories to produce household and electrical appliances in Sudan.
Second, Arab Moltaka Investments Company (AMIC) has signed a contract to develop its owned land plots in Almaza, East Cairo, in partnership with Bonyan for Real Estate.
This project is expected to generate around 900 million EGP in total sales. It’s worthy to mention that AMIC invests in a diversified range of economic sectors covering a broad spectrum including industrial and agricultural investments, land reclamation and cultivation, livestock development, fisheries, real estate investments, and tourism.
And finally, Edita announces the successful implementation of the electronic invoice system in cooperation with the Egyptian Tax Authority.
The company's latest half-year results showed that its sales rose to 2.3 billion EGP during the six months ending last June, compared to sales of 1.7 billion EGP during the comparable period of 2020. And, it’s net profits rose to 196.9 million EGP during the first half of 2021, compared to 93.7 million EGP during the comparative period of 2020.