Egyptian Pound seen as overvalued; market anticipates further devaluation
Egyptian Pound seen as overvalued; market anticipates further devaluation. The Institute of International Finance asserts that the Egyptian Pound is overvalued by around 10%, aligning with the International Monetary Fund’s push for exchange liberalization. The institute’s recent report suggests that market imbalances will persist if the exchange rate stabilization policy continues. A flexible exchange rate can help handle external shocks and allows monetary authorities to prioritize price stability. The parallel market’s exchange rate exceeds the official rate by up to 30%, and markets anticipate a near-term devaluation of the Egyptian currency, especially after significant devaluations in 2022 and 2023. (Asharq)
- Heliopolis Housing to channel "Helio Park" sale proceeds into new developments and shareholder benefits.
"Heliopolis Housing and Development" plans to utilize the proceeds from selling the "Helio Park" project land, valued at 15 billion pounds, in four distinct ways: providing cash distributions to shareholders, developing the "New Heliopolis" project, acquiring new land, and other development endeavors. The "Helio Park" spans 1,695 acres and is situated between the "Al-Rehab" and "Madinaty" projects. The company recently agreed to sell the land to the "National Social Insurance Authority" for 15 billion pounds in a single payment. Despite these details, Heliopolis Housing later clarified to the Egyptian Stock Exchange that the reported utilization of the sale proceeds was inaccurate. (Asharq)
- Five bids received for Egypt's Gabal El Zeit wind farm; deal expected by November.
The Egyptian government has received five bids for the Gabal El Zeit wind farm, with a closure on the deal anticipated in October or November, revealed Minister Hala Elsaid. Notably, UK's sustainable infrastructure investor, Actis, has been previously reported to be nearing the purchase of this 580 Megawatt wind project. Both Saudi-based ACWA POWER and UAE's Alcazar Energy had also shown interest earlier this year in the wind farms situated in Gabal El Zeit and Zafarana. (Arab Finance)
- Golden Triangle Authority in talks for $2bn industrial zone in Upper Egypt.
The General Authority of the Golden Triangle Economic Zone in Egypt is in discussions with industrial developers to set up an industrial area in Upper Egypt. The projected investment for the initial phase stands at $2 billion (around 62 billion pounds). The "Golden Triangle" project, spanning over 2.2 million acres, is pivotal for southern Egypt and taps into the mining resources of the Eastern Desert. The project encompasses industrial, mining, tourism, agricultural, and commercial sectors. (Asharq)
- Egypt and "Rostamsmash" discuss localizing Russian agricultural equipment production.
Egypt's Minister of Agriculture, Mr. Al-Quseir, met with representatives from the Russian company "Rostamsmash", a manufacturer of agricultural equipment, to discuss acquiring machinery tailored for Egypt's small agricultural lands. Al-Quseir highlighted the need for this equipment to aid small farmers, reduce production costs, and combat fragmented land holdings. The Minister ordered a comprehensive study on Egypt's equipment requirements. Both parties are laying groundwork for showcasing "Rosmetmash" machinery across Egypt and formulating a cooperation protocol. Furthermore, they discussed setting up a local production zone for these Russian machines, leveraging Egypt's BRICS association and its potential as a logistics hub for Africa. (Economy Plus)
- Palestinian Authority and Egypt set to finalize Gaza Marine gas deal.
The Palestinian Authority is poised to finalize an agreement with the Egyptian Natural Gas Holding Company (EGAS) within five days to develop the Gaza Marine natural gas field, as per Dhafer Melhem, head of the Palestinian Energy Authority. Located 30 km off the Gaza coast, the field contains over one trillion cubic feet of natural gas, surpassing Palestine's needs. The extraction will proceed without Israeli involvement. Initially, Israel had signaled approval for the project's development, subject to security coordination. The field offers the Palestinian Authority potential financial independence from foreign aid and Israeli energy. (Asharq)
- Egypt secures three green investment MoUs at environmental forum.
Egypt signed three MoUs to bolster green investments at its inaugural Climate and Environment Investment Forum. The agreements were announced by the Ministry of Environment on September 12th. The first MoU, between the Waste Management Regulatory Authority, KIT Innovation Hub, and Green Build Egypt, aims to enhance waste management. The second, involving the Arab Organization for Industrialization and two German companies, seeks to form a joint venture called “AOI – INTEC Egypt” in Cairo for tire recycling. Lastly, Green Planet Solutions and Emirati firm ZERO CARBON Limited have agreed to develop technologies for decarbonization. (Arab Finance)
- CI Capital reports 92% revenue growth and EGP 20 billion portfolio in H1 2023.
The General Authority of the Suez Canal Economic Zone, led by Walid Gamal El-Din, has entered a partnership with a consortium of Dutch companies to enhance green hydrogen production and distribution. This collaboration focuses on establishing green hydrogen stations, using the fuel for vehicles, and facilitating its export. This initiative also aims to explore green hydrogen derivatives and receive technical guidance from the Dutch government on the projects. The partnership's inception traces back to the Global Hydrogen Forum in Rotterdam, emphasizing the potential of the Suez Canal Zone as a pivotal green fuel hub for the Middle East and Europe. (Hapi Journal)
- Extension granted for foreign investors buying land in new cities using overseas transfers.
The Urban Communities Authority's Board of Directors has extended the policy allowing foreign investors to acquire plots in new cities using dollars transferred from abroad for an additional six months. In 2022, 106 land allocations, covering 247 acres, were made through this mechanism. The figure for 2023 has reached 113 allocations, spanning 679 acres. The initiative has successfully attracted foreign investments, benefiting the development of these new cities and boosting employment opportunities, stated Minister of Housing, Assem Al-Gazzar. Originally, this approach was designed for a 6-month trial before being reassessed. (Economy Plus)
- Arab Organization partners with German firms for tire recycling in line with Egypt's 2030 vision.
The Arab Organization for Industrialization has collaborated with two German firms, INTEC Rubber Powder GmbH and RECOM Patent & License GmbH, to create a facility for recycling all kinds of vehicle tires. This initiative, aligned with President Abdel Fattah El-Sisi's guidelines, seeks to bolster local manufacturing, utilize national resources, and incorporate advanced technology with global expertise. This aids in reducing imports and enhancing the value of Egyptian products, aligning with Egypt's Vision 2030 for sustainable development. (Economy Plus)
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