Finance Ministry plans debut 500 million USD CNY bond in 2023 to fuel sustainable development

Newsletter

29 May 2023

Finance Ministry plans debut 500 million USD CNY bond in 2023 to fuel sustainable development. The Finance Ministry of Egypt plans to issue its first-ever CNY-denominated bond worth 500 million USD in the third quarter of 2023. Although the panda bond issuance was initially announced in 2019, it experienced an initial delay due to the impact of the pandemic, the ministry is now finalizing the necessary procedures for the bond’s introduction to the market. The funds raised from the issuance will be utilized for various sustainable development projects, including green transport, renewable energy, water treatment, MSME financing, and healthcare. (Enterprise)

Egypt's House Committee gives green light to progressive income tax reforms.
On Thursday, the House Planning and Budget Committee approved tax changes aimed at reducing income tax for lower earners and increasing tax for higher-income individuals. Proposed amendments to the income tax law include raising the personal income tax exemption threshold from 24,000 EGP to 36,000 EGP. Additionally, a new tax rate of 27.5% will be introduced for individuals earning over 1 million EGP annually. (Enterprise)
Ancient burial ground reveals mummification workshops and tombs unearthed in Egypt.
Egypt has made significant archaeological discoveries in the ancient burial ground of Saqqara. Officials announced the unearthing of human and animal mummification workshops, as well as two tombs. The workshops, dating back to the 30th dynasty and the Ptolemaic eras, were found near the sanctuary of the goddess Bastet. This discovery, following a year-long excavation, adds to the growing list of findings that Egypt hopes will attract tourists and boost its tourism industry. (Reuters)
VAT exemption on pharma raw materials amid import challenges.
To address potential shortages of pharmaceutical products caused by import blockages and limited reserves of raw materials, the Customs Authority has implemented a temporary VAT exemption on imported raw materials used in the pharmaceutical industry. This decision comes in response to concerns that the industry's current reserves would last only two months. By exempting VAT, the aim is to mitigate the impact of import disruptions and ensure a consistent supply of essential pharmaceutical products. (Enterprise)
TEDA Egypt secures a whopping 487 million USD Investments in new energy and textile sectors.
The Chairman of the Suez Canal Economic Zone, Walid Gamal El-Din, oversaw the signing of agreements and contracts between TEDA-Egypt and HIDIER Group for new projects in the Sokhna Industrial Zone. The first project involves the establishment of a power supply station with a 265 million USD investment. The second agreement pertains to the production of advanced carbohydrates, with a total investment of about 100 million USD. The initial phase aims to produce 50 thousand tons annually, requiring an investment of around 30 million USD. These projects aim to enhance production capabilities and contribute to the growth of the Sokhna Industrial Zone. (Arab Finance)
Saudi energy giants set to skyrocket investments in Egypt's thriving industries.
Minister of Trade and Industry Ahmed Samir held meetings with officials from two Saudi companies specializing in energy, desalination, water, and food industries. They have been operating in Egypt since 2015, with investments reaching approximately 2 billion USD. They aim to increase their investments in Egypt to 12 billion USD and are qualified for high-profile projects in Egypt's ambitious desalinated water production program. (Arab Finance)
Investment Authority grants golden licenses worth 160 million USD to "Beko" and "BSH" factories.
The General Authority for Investment and Free Zones in Egypt, led by CEO Hossam Hegazy, has granted two golden licenses in the home appliances and durable goods sector. The licenses were awarded to Beko Egypt and BSH Egypt for Home Appliances, enabling them to establish manufacturing facilities. Beko Egypt plans to complete its factory by the end of this year, requiring a 107 million USD investment and offering 1,300 job opportunities. Meanwhile, BSH Egypt aims to finish its industrial project by the end of next year, with a 50 million EUR (53.5 million USD) investment and 500 job opportunities. (Hapi)
Egypt hits pause on wheat payments amid dollar crunch.
In response to a shortage of hard currency, Egypt has postponed payments for its significant wheat purchases, sometimes by several months. Despite the deferred payments, shipments have proceeded smoothly, and the state's wheat reserves, used for subsidized bread production, remain unaffected. The country's supply minister explained that the decision to defer opening letters of credit for wheat imports aims to ease financial pressures stemming from the foreign currency shortage. (Reuters)
13 billion EGP allocated for 225 transformative development projects in Damietta Governorate.
The Ministry of Planning and Economic Development has issued a report on the citizen's investment plan for Damietta Governorate in Egypt for the fiscal year 22/2023. Damietta Governorate will witness 225 development projects with a total public investment value of 13 billion EGP, representing a significant increase of 100% compared to the previous year. The largest portion of investments, accounting for approximately 9.6 billion EGP, will be allocated to the transport sector. Other sectors such as housing, health, higher education and scientific research, local development, and various sectors will also receive investments in the governorate. (Hapi)
Talaat Moustafa Holding Group's remarkable real estate sales surge by 127% in Q1 2023.
Talaat Moustafa Holding Group, a real estate company, reported impressive sales figures for the first quarter of this year. They achieved sales worth EGP 20.17 billion, which is a significant increase of 127% compared to the same quarter in 2022. The group attributed this growth to sales from its own companies, totaling EGP 12.2 billion, as well as sales from other parties amounting to EGP 7.97 billion. (Hapi)