Egypt’s President Abdel-Fattah El-Sisi was received on Tuesday by Qatari Emir Sheikh Tamim bin Hamad Al-Thani at Doha's Hamad International Airport | Zilla Capital

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15 Sep 2022

Egypt’s President Abdel-Fattah El-Sisi was received on Tuesday by Qatari Emir Sheikh Tamim bin Hamad Al-Thani at Doha’s Hamad International Airport

Egypt’s President Abdel-Fattah El-Sisi was received on Tuesday by Qatari Emir Sheikh Tamim bin Hamad Al-Thani at Doha’s Hamad International Airport in his first ever official visit to the Gulf state. El-Sisi’s two-day visit, which is upon an invitation from the Qatari Emir, is a culmination of the intensive discussions held recently between the two countries with the aim of strengthening bilateral cooperation on all levels, Egypt’s Presidential Spokesperson Bassam Rady said in a statement. Following an extended meeting in March between Egypt’s Prime Minister Mostafa Madbouly and Abdulrahman Al Thani, a Qatari package of $5 billion in investments and partnerships in Egypt was announced within “the framework of boosting economic cooperation between the two brotherly countries. “A week before Sheikh Tamim’s visit to Cairo in June, Egypt and Qatar signed an MoU in Doha on financial policy coordination to foster cooperation and coordinate financial visions, positions and policies at the bilateral and international levels. According to Egypt’s Minister of Finance Mohamed Maait, the MoU, which aims to exchange expertise in taxation, customs, and financial policies, paves the way for reaching an agreement on preventing double taxation between the two sides with a view to stimulating joint investments. This came on the sidelines of the Qatar Economic Forum when Egyptian Minister of Industry and Trade Nevine Gamea and her Qatari counterpart, Mohammed bin Hamad bin Qassim Al-Thani, agreed on reactivating the Egyptian-Qatari Business Council. (Al Ahram)

Oppo will set up a USD 20 mn mobile phone plant in Egypt under an agreement signed yesterday with the Communication Ministry’s Information Technology Industry Development Agency (ITIDA), according to a cabinet statement.
The facility will have an initial production capacity of 4.5 mn devices per year and create some 900 jobs within the next three to five years, with the potential to expand further according to market demand, according to the statement. The move comes as part of ITIDA’s Egypt Makes Electronics initiative, which aims to position Egypt as a regional hub for electronics assembly. The ministry in March discussed setting up a factory with the Chinese firm, which is a dominant player in the local mobile market and has been eyeing opening a factory from as far back as 2017. This is the third multinational phone manufacturer to have signed an agreement to set up shop in Egypt in recent months, following Vivo and HMD Global. Between them, the three companies will invest USD 75 mn and produce some 16 mn phones every year, Communications Minister Amr Talaat told Kelma Akhira’s Lamis El Hadidi last night. Companies will be required to source at least 40% of the components from local suppliers. (Enterprise)
Egypt’s trade deficit plummeted by 12.4% year-on-year (YoY) to $3.21 billion in June 2022 from $3.66 billion, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
The Arab Republic exported goods worth $3.75 billion in June 2022, an annual slide of 3.3% from $3.88 billion. On an annual basis, the value of Egyptian exports of fertilizers as well as flat-rolled products of iron and steel declined in June 2022 by 20.9% and 31.7%, respectively. Meanwhile, the country posted a jump in the value of petroleum in addition to natural and liquefied gas products by 49.40%, plastic materials by 29.40%, and crude oil by 15.60%. Egypt’s imports amounted to $6.96 billion in June 2022, down 7.70% YoY from $7.54 billion. The value of imported goods like soybeans, plastic materials, and pharmaceutical supplies retreated annually in June 2022 by 35.3%, 9.9%, and 3.5%, respectively. On the other hand, imports of wheat, petroleum products, and corn surged by 238.4%, 165.8%, and 50.1%, respectively. (Mubasher)
The Central Bank of Egypt (CBE) has renewed its warning against dealing in any type of cryptocurrency through regional or international platforms.
In a statement on Tuesday, the CBE said that virtual currencies are not issued by the Central Bank or any official authority, so they are not considered legal tender. The CBE warned that the Central Bank and Banking System Law prohibit issuing cryptocurrencies or trading in them. Since 2017, the CBE has been warning against dealing in all types of cryptocurrencies, including bitcoin. Egyptian security authorities have arrested dozens of cryptocurrency traders for mining cryptocurrencies illegally. In January 2018, Egypt’s Dar El-Ifta – which is responsible for issuing religious edicts – issued an edict banning the trade in cryptocurrencies. According to Dar El-Ifta, “virtual currencies” are not permissible as they are not considered by legitimate bodies as an “acceptable interface of exchange.” (Mubasher)
Amazon Egypt’s General Manager Omar El-Sahy and CEO of General Authority For Investments (GAFI) Mohamed Abdel Wahab discussed the expansion of the company’s investments in Egypt.
The discussion included plans to increase Amazon’s delivery stations in Egypt to 23 by the end of 2022. Egypt is very important to Amazon in the Middle East, El-Sahy said. He noted that the company will continue its investments to transfer knowledge and expertise and provide exceptional opportunities to its customers in Egypt in terms of competitive prices and fast delivery. (Arab Finance)
Egypt’s food industry exports to France grew by 15% in 2021 to register $50 million, compared to $43 million in 2020.
The statement was made by the Egyptian Food Export Council’s (FEC) Deputy Executive Director, Tameem El-Dawy, during a session organised by the FEC under the theme of “Development Opportunities for Egypt’s Food Industry Exports” on the sidelines of SIAL Paris. In 2021, France was ranked 23rd in a list comprising the most important markets importing processed food from Egypt. The number of Egypt-based companies exporting processed food to France in 2021 amounted to 135 companies, including 16 firms whose exports exceed $1 million, representing 77% of the total exports, revealed El-Dawy. Ten food commodities dominated 92% of Egypt’s food industry exports to France with $45 million, led by oil and resins exports, topping the list with $14 million, representing 29% of total exports, followed by oil seed and oleagic fruits' exports with $7 million, representing 15%. Exports of frozen strawberries and frozen vegetables came next with $7 million and $4 million, respectively. (Mubasher)
Now to EGX and Company News , A block-trading transaction has been carried out on 48.139 million shares of Tenth of Ramadan for Pharmaceuticals Industries and Diagnostic Reagents (Rameda) (RMDA) at a value of EGP 144.418 million, the Egyptian Exchange (EGX) announced.
Rameda is an Egypt-based pharmaceutical company that manufactures both human and veterinary pharmaceuticals. It operates three fully independent factories at its plant, including 20 production lines capable of producing a wide range of general medicinal forms. (Arab Finance)
Al Arafa for Investment and Consultancies (AIVC) has purchased an additional stake of 5% or 714,168 shares in Golden Textiles and Clothes Wool (Goldentex) (GTWL) at a total value of EGP 4.285 million, according to a shareholding disclosure.
Accordingly, Al Arafa’s stake in Goldentex increased to 48.95% from 43.95%. This came after the United Bank has sold a stake of 5%, representing 714,168 shares, in Goldentex at an average price of EGP 6 per share, according to a separate disclosure. The United Bank’s stake in Goldentex fell to 0.703% from 5.703%. Earlier this day, the Egyptian Exchange (EGX) announced that a block-trading transaction was executed on 714,168 shares of Goldentex at a value of EGP 4.285 million. Goldentex is an Egypt-based company engaged in the manufacture of textile products. The company is involved in the processing and dyeing of wool, woolen blended synthetic fiber, and industrial yarn. (Arab Finance)
Abu Qir Fertilizers studies impacts of new natural gas price for nitrogen fertilizers’ producers.
The study is being conducted in accordance with the global prices of exporting urea, the local sale price, and the US dollar to Egyptian pound exchange rate. Moreover, the company highlighted that the price equation included in the decree indicates that the selling price of natural gas to nitrogen fertilizers’ producers is connected with the price of selling/exporting urea per ton and is based on the average global prices of Free on Board (FOB) Egypt that are monthly updated. The minimum price of natural gas supplied to nitrogen fertilizers’ producers would not be lower than $4.5 per million British thermal units (BTU). (Mubasher)
Egypt Aluminum Company (Egyptalum) (EGAL) posted an 8,746.5% surge in net profit after tax for fiscal year (FY) 2021/2022, according to the unaudited financial income statement filed to the Egyptian Exchange (EGX).
Net profit after tax amounted to EGP 2.501 billion in FY 2021/2022, compared to EGP 28.276 million in FY 2020/2021. Revenues climbed to EGP 14.48 billion in the period from July 1st 2021 until June 30th 2022, compared to EGP 11.36 billion a FY earlier. Egyptalum is the largest aluminum producer in Egypt and is one of the leading companies in Africa. (Arab Finance).
Egyptian Government approves to issuing a new 2 EGP Coin Currency and partners with UK Royal Mint.
The Egyptian Council of Ministers approved the proposal to conclude a partnership agreement between the Department of the Public Treasury and the Egyptian Mint, and the UK Royal Mint, to establish a British-Egyptian mint in the Suez Canal Economic Zone. This approval comes within the framework of the Ministry of Finance's aspiration to establish a partnership that goes beyond transferring technical expertise, and seeks a partnership based on participation in the production and operational process, with the aim to localize metal industries in Egypt, and that Egypt will be a leading regional center for the production of currencies for the Arab World and Africa, based on local inputs in the manufacturing process of currencies intended for exports instead of importing raw discs. (Hapi Journal)
The Council of Ministers approved the proposal of the Ministry of Finance to establish an Egyptian joint stock company, Global Blue Egypt, to implement the VAT refund system for foreign visitors to Egypt leaving the country.
The company will be established in participation with of Global Blue Public Limited and Global Blue Netherlands Private Limited. The company is established within the framework of Egypt's Vision 2030, the digital transformation strategy of the Egyptian state, and efforts to promote tourism and foreign shopping, and a specialized committee will take over all the technical issues discussed during the meeting. (Hapi Journal)