Rice prices fall for fourth consecutive week as supply increases, resulting in a loss of 200 pounds per ton

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25 Jul 2023

Rice prices fall for fourth consecutive week as supply increases, resulting in a loss of 200 pounds per ton. Rice and barley prices in local markets saw their fourth consecutive weekly drop on July 24, 2023, with a ton falling by roughly 200 Egyptian pounds compared to the previous week. Mostafa Al-Sultasi, a member of the Rice Division at the Federation of Industries’ Chamber of Grain Industry, noted that the price for a ton of broad-grained barley decreased to approximately 12,500 pounds, its lowest level since January, down from about 12,700 pounds at the beginning of the prior week. (Al Mal)

Egypt records a 4.2% economic growth rate in fiscal year 2022/23.
Egypt's Finance Minister, Mohamed Maait, announced a 4.2% growth in the country's real GDP for the 2022/2023 fiscal year. Government revenues saw an annual rise of 12.5%, with tax revenue up by 23.1%. Public spending also increased, up 16.7% YoY. The country registered a primary surplus of EGP 164.3 billion, equivalent to 1.7% of GDP, while the total deficit was at 6.2%. Subsidies for food commodities climbed to EGP 129.7 billion, with treasury-financed investments surging 15% to EGP 228 billion. Despite global economic challenges, the Minister describes these figures as reassuring. (Arab Finance)
Egypt earmarks 529.7 billion EGP for social safety in 2023/24 fiscal year budget.
Egypt has budgeted EGP 529.7 billion for social safety measures in the fiscal year 2023/24, marking a 48.8% year-on-year increase, states the Egyptian Finance Ministry. The decision aims to offset inflationary impacts on citizens. The allocation includes EGP 127.7 billion for food subsidies, EGP 31 billion for the 'Decent Life' program, EGP 14.1 billion for health insurance and medicines, and EGP 10.2 billion for affordable housing for low-to-middle-income residents, according to Finance Minister Mohamed Maait. (Arab Finance)
Since the start of the year, Egypt has seen a 34% rise in wheat imports.
Since the start of the year until last Tuesday, Egypt's wheat imports have increased by around 34%, totalling 5.66 million tons as compared to 4.22 million tons in the same period of the previous year, according to an official document reviewed by East Economy. Notably, during the first half of 2022, grain prices experienced a significant increase due to the Russian invasion of Ukraine and consequent disruption of supplies from these countries. Egypt, being the world's largest importer of wheat, typically imports up to 12 million tons annually for both the government and private sectors. (Asharq)
Egypt is looking to secure $400M in funds from UAE for wheat purchases.
Egypt is negotiating with the Abu Dhabi Fund for Development to secure $400 million in tranches of $100 million each for wheat purchases, says Minister of Supply and Internal Trade, Ali Moselhy. The minister didn't reveal when the deal might be finalized. Moselhy expressed dissatisfaction over Russia's withdrawal from the UN grain-export agreement. This comes as soaring grain prices, fueled by Russia's invasion of Ukraine, put pressure on Egypt's economy. (Bloomberg)
Banque Misr intends to initiate a new real estate fund valued at half a billion pounds.
Banque Misr, Egypt's second-largest government bank, intends to set up a real estate investment fund worth around 500 million pounds, with plans to launch it in the first quarter of 2024, according to a bank official. The bank previously launched its initial real estate investment fund, valued at 360 million pounds, in partnership with Banque du Caire, Misr Insurance Holding Company, and Allianz Insurance last December. This fund was predominantly invested in buying various commercial units owned by the Talaat Moustafa Group in the 'Al-Rehab' and 'Madinaty' projects. (Ashraq)
Torishima, a Japanese firm, commits $5 million to set up a water pump service center in Sokhna.
The Suez Canal Economic Zone has allocated a 30,000 square meter plot to Japanese firm Torishima for the establishment of a large-scale water pump assembly, manufacturing, supply, and maintenance center in the 'Industria Sokhna' project. The $5 million center, financed by Torishima, will focus on producing and maintaining high-capacity pumps for various applications, such as sewage treatment and water purification and desalination plants. The center is also aimed at localizing the spare parts industry to cater to the local market, with the potential for further investment within the next five years. (Economy Plus)
Egypt finalizes mining agreement terms with Centamin and Barrick Gold.
Egypt's petroleum ministry has reached an understanding with mining corporations Barrick Gold Corp and Centamin Plc on the business, financial, and legal framework for gold and associated minerals extraction in assigned concession blocks, the ministry announced on July 20th. The agreement enables the government to secure 50% of the net profit from gold mining operations. Centamin PLC operates Sukari, Egypt's biggest gold mine. The decision follows reports on July 16th that the Ministry of Petroleum and Mineral Resources was set to ink seven contracts with Centamin and Barrick Gold for gold mining commercial exploitation. (Arab Finance)
The Central Bank halts existing tourism initiative and contemplates introducing a new one.
The Central Bank of Egypt has discontinued its current low-return tourism support initiative, and is contemplating the launch of a new one in conjunction with the Ministries of Finance, Tourism and Antiquities, pending cabinet approval, as per a recent statement. The cancellation follows the Prime Minister’s decision No. 4151 of 2022, assigning the Ministry of Finance with management and follow-up of future or amended initiatives, with cabinet consent. The Central Bank has directed all banks operating in Egypt to cease granting new financing under the previous initiative. (Economy Plus)
Mountain View acquires 638-acre land parcel in Mostakbal City.
Mountain View Development and Real Estate Investment Company has signed a contract to develop a 638-acre land parcel in Mostakbal City, New Cairo, in partnership with Midar Investment and Urban Development Company. Details about the new project, which will include residential and commercial units, are expected to be announced in the third quarter of 2023. The additional land expands Mountain View's portfolio to over 3,000 feddans with 18 projects spread across Cairo and coastal areas. (Hapi Journal)