Egypt seals multimillion-dollar industrial agreements with 3 Arab states

Newsletter

27 Feb 2023

Egypt seals multimillion-dollar industrial agreements with 3 Arab states. Egypt signed 12 agreements and partnerships with the UAE, Jordan, and Bahrain for 9 integrated industrial projects with an investment value exceeding 2 billion USD in the sectors of agriculture, medicine, chemicals, and electric vehicles (EVs). The agreed-upon projects would contribute to increasing local production in the partner countries by a value exceeding 1.6 billion USD, and creating about 13,000 direct and indirect jobs. (Al Mal)

Egypt’s Soda Industries announced an investment worth 500 million USD to produce sodium carbonate,
which is the main raw material in many industries, with a production capacity of 500,000 tons annually. A memorandum of understanding (MoU) was signed for a strategic partnership with the Emirates Float Glass, owned by Dubai Investments, to purchase the final product. (Al Mal)
Also, a project was announced by the Emirati M Glory Holding for the auto industry, with an investment value of 550 million USD,
to establish 3 integrated factories for EVs in the UAE, Jordan and Egypt, with a production capacity of 40,000 EVs in the first three years. Feed and chemicals firm CFC, owned by Emirati investors, announced the establishment of an industrial complex for feed and chemicals in Egypt, with investments amounting to 400 million USD. (Al Mal)
Furthermore, the Jordanian firm Itqan Pharma announced a partnership with the Egyptian Marcyrl Pharmaceutical Industries for technology transfer in the field of manufacturing biosimilars in Jordan,
with a total investment totaling of $10 million. In addition, the Emirati Global Pharma entered into a technology transfer partnership with the Egyptian Pharmaceutical firm Nerhadu to work on developing advanced manufacturing technology for the production of medicines and nutritional supplements in the UAE. (Al Mal)
France’s NGE to build 330-km of Egypt’s high-speed railway.
French construction firm NGE and its subsidiary TSO have signed a contract to construct 330 kilometers of Egypt’s high-speed electric train line. As per the contract, NGE subsidiary TSO will work with Egyptian builders Orascom and Arab Contractors. However, the value of the contract has not been disclosed. It will connect the Red Sea port of Ain Sokhna to Borg Al-Arab near Alexandria on the Mediterranean coast, running through the Cairo satellite town 6th of October City. (Hapi Journal)
Chinese Dongfeng introduces E70 EVs in Egypt.
Dongfeng's Chinese electric cars, Aeolus E70 Pro, are now available for sale in Egypt via its exclusive agent Misr Helwan Automotive Company, which is affiliated with Misr Helwan for Import and Export Company. The new car was introduced to the local market at a press conference over the weekend. Currently, only one category of the E70 electric car is available, which is the Dongfeng E70 Pro and sold for 897,000 EGP. (Al Mal)
Prime Minister Moustafa Madbouly headed yesterday to Qatar in a bid to push forward talks for fresh Qatari investment.
The PM is taking a large number of ministers and business figures with him to the Qatari capital to talk investments with the country’s political leaders. The two sides will sign agreements that will unlock new Qatari investment in Egypt. This is the second high-level trip to Qatar this month, coming less than three weeks since Planning Minister Hala El Said and Sovereign Fund of Egypt head Ayman Soliman visited the country to discuss investment. (Cairo 24)
Egyptian and US officials will be in Jordan to attend a “political-security” meeting between Palestinian and Israeli representatives called amid a surge in violence in the occupied Palestinian territories.
An Israeli raid in Nablus last week killed 11 Palestinians in what was the latest in a series of violent episodes since Israel’s ultranationalist government entered office last month. The meeting comes during the visit by US President Joe Biden’s top adviser on the Middle East Brett McGurk. His trip will include stops in Egypt, Jordan, Oman and the UAE, White House Press Secretary Karine Jean-Pierre said in a press briefing Thursday. (Al Arabiya News)
Egypt launches community participation platform "Hewar".
Egypt has launched the "Hewar" platform for community participation, as the largest interactive platform aimed at achieving the best sustainable participation of citizens in the decision-making process. The platform will also provide a direct communication channel that ensures benefit from all different opinions and points of view to improve performance in various sectors. (Arab Finance)
Societe Generale forecasts additional 10% devaluation of EGP by end-March
Emerging markets strategists at Societe Generale Phoenix Kalen and Gergely Ürmössy explained in a report that the debt-distressed North African nation will need a cheaper currency given its large current account deficit and dollar shortage. Despite three devaluations that made the pound 50% weaker over the past year, the currency has not reached its “new short-term equilibrium,” they said. “Real interest rates remain negative both on a backward- and forward-looking basis.” (Bloomberg)
The price of chicken as the government ups poultry imports from Brazil to calm soaring prices ahead of Ramadan.
Official inflation data out earlier this month showed that the price of chicken has almost doubled over the past year and surged almost 33% in January alone following the devaluation of the EGP. The cabinet yesterday denied rumors on social media that Brazilian chicken imported by the government was spoiled and expired. The National Food Safety Authority (NFSA) has confirmed that all food imports, including frozen poultry, comply with food safety standards. (Enterprise)
Egypt Kuwait Holding plans to invest 170 million USD across at least three sectors this year.
The investment company – which is dual listed on the Egyptian and Kuwaiti stock exchanges – will target the oil and gas, electricity and manufacturing sectors, in addition to raising EKH's stakes in its affiliated businesses. The news follows the announcement of EKH’s record net income last year, which jumped 41% to 241 million USD. EKH will self-finance 60%–70% of the investments, with bank financing covering the remaining 30-40%. (Bloomberg Asharq)