International companies submitted their technical and financial offers until, Monday, to compete for the tender to develop and modernize the transformer stations of the High Dam and Aswan Reservoir 1 and 2
For our top talks today, first, international companies submitted their technical and financial offers until, Monday, to compete for the tender to develop and modernize the transformer stations of the High Dam and Aswan Reservoir 1 and 2, affiliated with the Ministry of Electricity and Renewable Energy. The Water Stations Company – which is affiliated with the Ministry – had put out the tender at the end of last November, and 14 local and international companies bought the tender document before closing the door for buying the booklets on December 22 last. The competing entities included 4 companies: Germany’s Siemens, Russia’s SMT, and China’s Dongfang, in addition to another Kuwaiti company that the sources did not disclose. (Arab Finance)
- Second, Egypt plans to double its export revenues to 60 billion USD annually by 2025, as part of its plans to eventually reach 100 billion USD a year, according to the Trade Minister Nevine Gamea.
Egypt’s exports increased by 27% in 2021 and recorded 31 billion EGP, the country’s largest export volume in its economic history. The new record comes due to the high demand for Egyptian products, including chemical products and fertilizers, construction materials, foodstuffs, engineering and electronic goods, agricultural crops and clothes, in addition to printed materials, paper and packaging and textile, furniture, and medical industries products. Rising demand as the global pandemic eases, ramped up government support, and the increased attractiveness of Egyptian exports in light of rising global shipping costs helped drive last year’s increase. The government has recently adopted program to refund export burdens has significantly contributed to the growth of exports. (Al Arabiya)
- Egypt’s fintech funding is expected to hike by 919% Year on Year (YoY) in 2021, reaching an estimated 296 million USD, compared to the 29 million USD in 2020, according to Citi’s latest report “Africa & Middle East FinTech & e-Commerce.”
According to the report, fintech companies in countries like Egypt and Pakistan are on the cusp of gaining traction/adoption. Meanwhile, Nigeria and Kenya are seeing growing interest beyond digital payments into new forms of credit, open finance, and cryptocurrencies. It also mentioned that the availability of risk capital and a supportive regulatory backdrop are further fuelling the fintech agenda across the region. The report showed that fintech is booming globally, mentioning that 2021’s annualised VC investments are up by 164% y-o-y, reaching escape velocity in the AME. (Arab Finance)
- On the other hand, for abroad, the exchange rate of the US dollar fell, in trading on Tuesday, but it remained stuck within the last ranges as investors await the speech of US Federal Reserve Chairman Jerome Powell at a congressional hearing later today.
Investors hope that Powell will provide indications about the timing of monetary policy tightening, when he answers questions from the Senate Banking Committee as he seeks a second four-year term as Fed chair. The US dollar index fell by 0.1%, today, Tuesday, at the level of 95.817, to decline significantly from its highest level in 16 months, which was achieved at the end of November, amid increasing hardening from policy makers in the Federal Reserve. We expect any decline in the dollar to be short-lived as the accelerated tightening process by the Federal Reserve continues to provide positive support to the dollar indirectly. (Reuters)
- The price of oil witnessed a rise in global markets today, Tuesday, after two days of losses, thanks to the return of investors’ appetite for risk,
while the market awaits signals from the President of the Federal Reserve (the US Central Bank) regarding raising interest rates, while the rise comes while some oil producers find Difficulty in raising the level of their production of crude. The price of Brent crude oil rose 26 cents, or 0.3%, to $81.13 a barrel, after falling 1% in the previous session. A weak dollar helped support the price of oil on Tuesday, as it makes oil cheaper for holders of other currencies. The price of oil fell in the previous two sessions due to fears caused by the rapid global rise in infections with the mutated Omicron strain of the Corona virus, which could weaken the demand for fuel. (Reuters)
- Moving to our investments talks, UAE-based GMG, a global well-being company retailing, distributing and manufacturing a portfolio of leading international and home-grown brands across sport, food and health sectors, plans to open more than 100 sports retail stores in Egypt over the coming five years.
The company will introduce its portfolio of brands focused on personal well-being as part of its wider international expansion, outlined last October in a new corporate strategy promoting healthier and more active lifestyles through its offerings. Sun & Sand Sports, a GMG brand and the Middle East’s largest sports retailer, is already slated to open at the City Centre Almaza as well as Mall of Egypt. The company also intends to introduce its sneakers-focused concept, dropkick, and its Nu Athlete concept catering to a youth demographic. (Arab Finance)
- Turing to our EGX and companies talks, International Company for Medical Industries (ICMI) has submitted its shares listing documents to the EGX.
The issued capital increased to 57.67 million EGP from 24.189 million EGP, with the increase fully paid in cash. On the other hand, the company also plans to nationalize a number of industries to provide medical supplements to the Egyptian market and export them as part of ICMI’s ambitious plan. The company will also produce safety syringes as per the country’s directives in combating hepatitis C. ICMI will also discuss the restructuring of its board of directors in the upcoming ordinary general meeting (OGM). (Arab Finance)
- Italy’s Eni has won five new exploration licenses obtained from the Egyptian Ministry of Petroleum and Mineral Resources, after participating in the global bid for oil exploration in 2021.
The bid was previously announced by the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company, through Egypt upstream Gateway Project. The bid results are aligned with Eni’s strategy to keep exploring and producing gas to sustain the Egyptian domestic market and contribute to LNG export, thanks to the recent restart of the Damietta LNG plant. (Offshore Energy)
- Fawry for Banking Technology and Electronic Payment (FWRY) has signed a cooperation agreement with the Recruitment and Mobilization Office, affiliated to the Egyptian Armed Forces.
Under the agreement, Fawry will offer e-payment solutions through the website of the Recruitment and Mobilization Office. This cooperation enables citizens to pay digitally for services provided by the Recruitment and Mobilization Office, including Travel permit, recruitment exemption certificates, and letters, through retailers, Fawry Plus outlets, and myFawry app. (Al-Mal)
- e-Cards, a subsidiary of e-finance Investment Group, has signed an agreement with MoneyFellows. Under the agreement, the two companies will team up to offer facilitated financing solutions for beneficiaries of government and union pensions and cash support programs in Egypt.
Through this partnership, MoneyFellows will provide services to new sectors in Egypt, benefiting from the different digital technologies offered by e-Cards that would ease payment and receiving of funds. Moreover, this partnership will enable MoneyFellows to serve more Egyptians, giving them the chance to take part in its digital money circles and other financial planning services. (Arab Finance)
- Emirates NBD Egypt has launched a bundle of auto lending programs.
The diversified programs come in line with the bank’s strategy to meet the customers’ different needs and requirements with the easiest and most convenient procedures. Emirates NBD Egypt is the first bank to offer “instant approval” on auto loans, where borrowers can have their loans in 30 minutes, with financing 50% of car’s value without investigation. In addition to, another program with an offer to finance 60% of car’s value and a cash back. This offer is valid till the end of March 2022. The bank is also offering three more programs, the first of which provides financing 50% of car’s value, capped at 500,000 EGP with no insurance policy required. (Arab Finance)
- BP announced that it had won the rights to explore for gas in an offshore concession area in the eastern Mediterranean, following its successful participation in the first digital global bid for gas exploration and exploitation in the Mediterranean, previously announced by the Egyptian Natural Gas Holding Company through the Egypt Gateway for Exploration and Production in 2021.
BP has acquired the 50% exploration rights on par with Eni, the Italian operator of the EGY-MED-E5 concession area. The concession is located about 130 km northeast of Port Said. The concession area covers an area of about 3,200 square km, at a depth of between 500 and 1,200 meters. (Reuters)
- Madinet Nasr for Housing and Development announced its success in completing the second issuance of securitization bonds, worth 300 million EGP, in cooperation with EFG Hermes.
Madinet Nasr for Housing and Development said in a disclosure sent to the EGX on Tuesday that this transaction is secured by a portfolio of receivables worth 373.9 million EGP. The company added that this operation comes within the framework of a complete program to issue securitization bonds worth approximately 3 billion EGP during the next three years. EFG Hermes succeeded in issuing the offering on three tranches with different maturities and returns ranging between 13 months, three years and 5 years. The value of the first tranche is 120 million EGP, while the value of the second tranche is 135 million EGP, while the value of the last tranche is 45 million EGP. (Al-Mal)
- Al-Tameer Real Estate Finance Company aims to issue securitization bonds worth 900 million pounds, during the first half of this year. Ayman Abdel Hamid, Vice Chairman of the Board of Directors and the new managing director of the First Real Estate Finance Company,
said that it plans to reduce its focus on clients in collecting revenues, and wants to diversify the financing sources, by issuing securitized bonds in the coming period. It is worthy to mention that there is a current boom in the issuance of securitization bonds in the local market, which coincides with the interest of financial institutions and banks in purchasing this financing tool, which has strengthened the desire of the former to issue it. (Al-Mal)
- The research unit of the investment bank “Hermes” chose a preferred list of 20 stocks in the Middle East and North African markets for the year 2022, which included 3 Egyptian companies:
“Cairo Investment and Real Estate Development”, “Commercial International Bank” and “Egyptian-Kuwaiti Holding”, explaining that it had expressed its recommendation on 44 shares listed on the EGX between buying, selling and neutral. The markets covered by “Hermes” research included 11 markets, according to its annual report, which are Egypt, Saudi Arabia, UAE, Kuwait, Qatar, Morocco, Pakistan, Vietnam, Bangladesh, Nigeria and Kenya. The investment bank “Hermes” expressed a more optimistic view of the Egyptian market during 2022 as a result of the valuation differences in profit margins between Egypt and the markets of the Gulf Cooperation Council countries, which reached their highest levels in years. (Al-Mal)
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