Egypt’s net foreign asset deficit reaches a record level
Egypt’s net foreign asset deficit reaches a record level. Egypt’s net foreign assets deficit increased to negative 27.1 billion USD in June from negative 24.5 billion USD in May. Declining remittances and gas exports, along with the impact of the Russian-Ukrainian conflict, contributed to the worsening deficit. Finding sustainable sources of hard currency, like boosting tourism, Suez Canal earnings, and exports, is crucial, says the experts. (Asharq)
- EFG aims to launch four gulf companies worth 2 billion USD in IPOs.
EFG Holding plans four 2 billion USD IPOs in Gulf countries this year, reflecting sustained IPO activity. New sectors and regions are entering the scene, while Saudi Arabia's IPO market shows signs of recovery with two approved deals, one for an oil exploration company backed by the Public Investment Fund and another for an air cargo company. (Asharq)
- Egypt's largest wind farm might see Maersk acquiring a 50% stake.
Maersk aims to acquire 50% of Egypt's 545-MW Zafarana wind farm after government approval. The company plans to use half of the output for green fuel production. Other investors are interested in the facility, and Maersk is already investing in Egypt's green energy sector with a 15 billion USD clean fuel project. (Enterprise)
- Egypt and Turkey aim to boost trade exchange to 15 billion USD in the next five years.
Egypt's Minister of Trade and Industry, Ahmed Samir, visited Turkey at the invitation of Turkish Minister of Trade, Dr. Omer Polat, marking the first mutual visit between trade ministers in ten years. They aim to increase bilateral trade volume from 10 billion USD to 15 billion USD within 5 years, expand the existing free trade agreement, and encourage mutual investments. (Arab Finance)
- Al-Mashat announces 1.5 billion EGP funding for 3,524 projects, generating 17,000 job opportunities.
Egypt's Ministry of International Cooperation discussed efforts to develop SMEs with a 200 million USD Saudi grant, supporting projects across sectors and creating 17,000 job opportunities. The grant aims to enhance growth, innovation, and local manufacturing, benefiting 27 governorates. (Arab Finance)
- Dragon Oil boosts oil production in Egypt by 25% in just two months.
Dubai's Dragon Oil plans to raise Egypt's oil production by 27% in October to address power outages. Output will reach 70,000 barrels per day, with production from the North Safa field in the Gulf of Suez starting in two months, adding 15,000 barrels per day. Egypt aims to become a major energy hub, and the North Safa field holds 170 million barrels of reserves, a significant find in the Gulf of Suez. (Asharq)
- New app launched to promote foreign investment with golden license system application.
Cabinet launches English app to enhance global communication and promote foreign investment through the "Golden License" system application. The app covers government news, economic indicators, "Egypt 2030" vision, ministerial formation, and allows easy access to permits for project establishment. (Arab Finance)
- MNT-Halan's Tasaheel and Talaat Moustafa Group Successfully Close Securitization Deals.
Local securitization market stays strong in July, with Tasaheel and a Talaat Moustafa Group subsidiary closing combined 3.75 billion EGP issuances. Tasaheel's 3.34 billion EGP securitized bond issuance was oversubscribed 1.8 times, supporting planned growth and market expansion. TMG's subsidiary, Arab Company for Projects and Urban Development, sold 411 million EGP in bonds backed by securitized future cashflows, a first in Egypt for club membership fees. (Enterprise)
- Beltone targets acquisition of unnamed Egyptian microfinance player.
Beltone Financial has signed an MoU to acquire an undisclosed local microfinance firm, indicating its intent to proceed through its holding company or a subsidiary, as disclosed to the EGX. The acquisition is subject to regulatory approval, after which Beltone will conduct due diligence to assess the microfinance firm's operations and financial standing before finalizing the deal. (Enterprise)
- June sees decline in auto sales.
Auto sales in June declined to the lowest level since February due to the ongoing FX crisis, with car companies selling 6.3 thousand vehicles, a significant drop from May's 7.3 thousand sales. The figures represent a 64% decrease compared to June 2022's 17.1 thousand vehicles sold, reflecting the impact of the currency crisis on the sector's ability to import vehicles amid soaring inflation. (Enterprise)
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