Net foreign reserves were essentially flat at 35.1 billion USD at the end of October compared to 34.97 billion USD at the end of September
Net foreign reserves were essentially flat at 35.1 billion USD at the end of October compared to 34.97 billion USD at the end of September. This marks the thirteenth month in a row in which the Central Bank of Egypt has reported a slight uptick in reserves. FX reserves have increased every month since September 2022, after Russia’s invasion of Ukraine triggered heavy capital outflows that saw Egypt bleed some 8 billion USD in reserves. Reserves have grown a little less than 2 billion USD over the 13-month period. We had 41 billion USD in reserves on the eve of the war in Ukraine. Almost 30 billion USD of our reserves are now made up of deposits made by Saudi Arabia, the UAE, Qatar, Kuwait and Libya. (Hapi Journal)
- Tourism in Egypt, Lebanon, Jordan could incur 16.1 billion USD amid Hamas-Israel war: S&P Global.
S&P Global Ratings expects tourism sector in Egypt, Lebanon, and Jordan to lose 16.1 billion USD collectively amid the current Hamas-Israel war. This loss represents 10% to 70% of total tourism revenues recorded last year. Several tourism agencies in Egypt reported facing cancellations of around 50% of reservations for November and December, particularly by European travelers, since the onset of the war conflict. (Asharq Business)
- Prices open higher after Saudi and Russia reaffirm supply cuts.
Oil prices opened higher in Asian markets this morning, with Brent trading above $85/bbl after Saudi Arabia and Russia reaffirmed their voluntary supply cuts of more than 1 mb/d to year-end. Last week saw Brent drop for a second consecutive week, to $84.9/bbl (-6.2% w/w), as markets gauged Gaza conflict-linked geopolitical risk to be waning and the likelihood of further US monetary policy tightening diminished after the release of softer US jobs and wage growth data. (Bloomberg)
- Crude stock builds (+774 kb) in the US and weak manufacturing data in China rounded out the bearish contributory factors last week.
That said, US lawmakers in the House did pass a bill to bolster sanctions on Iran including measures on foreign ports and refineries processing Iranian oil, though the bill must be passed by the Senate then signed by President Biden before becoming law. The Strategic Petroleum Reserve could also be replenished soon as the price of West Texas Intermediate oil is hovering just 2% above the government’s buyback range of $79/bbl. (Bloomberg)
- Egypt’s gold reserves hit 8.098 billion USD in October.
Gold reserves in Egypt rose to $8.098 billion in October from 7.644 billion USD in September. The country’s special drawing rights (SDRs), included in the net international reserves (NIR), soared to 371 million USD in October, compared to 29 million USD in September. Meanwhile, foreign currencies accounted for 26.635 billion USD of Egypt’s NIR during October, which is down from 27.299 billion USD in September. It is worth noting that Egypt’s NIR rose to 35.101 billion USD at the end of October, from 34.97 billion USD in September. (Arab Finance)
- Egypt’s trade deficit drops 28.1% in FY 2022/23."
Egypt’s trade balance deficit fell by 28.1% to 31.2 billion USD in fiscal year (FY) 2022/2023. The state’s tourism revenues amounted to 13.6 billion USD at the end of FY 2022/2023, recording an annual growth rate of 27%. Meanwhile, the country's gross domestic product (GDP) reached 10.2 trillion EGP, up from a target of 9.2 trillion EGP for the FY. Minister of Planning Hala Elsaid previously announced that Egypt achieved economic growth of 3.8% during the elapsed FY 2022/2023, down from a previous forecast of 4%. (Arab Finance)
- SCZONE seals 15.6 billion USD deals for 11 projects with China.
The General Authority for the Suez Canal Economic Zone (SCZONE) has signed 15.6 billion USD worth of agreements with a number of Chinese companies for the establishment of 11 projects. The projects will cover several fields, including green fuel and manufacturing. Set to be built on 4.9 million square meters in Egypt, the projects will offer around 9,000 job opportunities. The agreements were signed during the last visit of the SCZONE’s Chairman Waleid Gamal El-Dein to China from October 15th to 18th to promote for investing in Egypt. (Arab Finance)
- EGX seeks to launch Shariah-compliant index by H1 2024: El Sheikh.
The Egyptian Exchange (EGX) is seeking to launch an Islamic Shariah-compliant index within the first half (H1) of 2024. The index will include Shariah-compliant firms, which will be decided upon by the Sharia Supervisory Committee at the Financial Regulatory Authority (FRA). The move aims to lure further investors into the local stock market. (Asharq Business)
- Egypt intends to offer management, operation of airports to private sector.
The Egyptian government is planning to offer the management and operation of airports to the private sector. The announcement was made by Prime Minister Mostafa Madbouly while chairing a roundtable in the presence of officials from major international companies in the field of transport, logistics, and maritime navigation. The government is also mulling over partnership opportunities with the private sector in managing and operating mass transit routes, Madbouly said. (Arab Finance)
- Banque du Caire launches e-signature service for financial institutions.
Banque du Caire has launched an electronic signature service, i-Sign, for its corporate and financial institution clients. The move makes the lender the first to use the electronic signature in banking forms and documents related to cash flow management services and products, foreign trade operations, and securities products. (Asharq Business)
- Orascom Real Estate (ORE) has lined up EGP 6 bn to fast-track construction at its O West project in Six October.
The property developer will use funds from the 10-year syndicated loan to partially finance the development of O West project and meet its aim of delivering upwards of 1k units in 2024. Part of the proceeds will be used to refinance an EGP 1.5 bn bridge facility ORE took out last year for the project. (Arab Finance)
- Student career advising startup OBM Education has secured a six-figure USD investment from Saudi accelerator Value Makers Studio (VMS).
Founded in 2020 by Omar El Barbary (LinkedIn) and Ezz El Din Farag (LinkedIn), OBM provides career advice, mentoring, and training programs to middle- and high-schoolers through summits, programs, and a mobile application. OBM has helped over 500k students and their Talab application has more than 180k users. OBM Education is looking to expand its footprint in Saudi Arabia. The startup wants its flagship Talab mobile application to play a part in the kingdom’s Vision 2030 ambitions to transform education. (Al Borsa News)
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