Suez Canal’s revenues increased 11.2% year on year in the first 8 months of the year, reaching 3.88 BN USD
For our hottest news of the day, Suez Canal’s revenues increased 11.2% year on year in the first 8 months of the year, reaching 3.88 billion USD compared to 3.49 billion USD in the same period last year. The number of ships that passed through the Suez Canal increased in the first half of 2021 to 9,763 vessels compared with 9,546 ships during the same period last year despite the complete blockage of the canal for 6 days after a giant container ship Ever Given became jammed across the canal in high winds. It is worth noting that about 15% of the world’s shipping activity passes through the Suez Canal and it represents one of the main sources of hard currency for the country.
- Second, Egypt set to issue the first sovereign Islamic compliant bonds, sukuk, during the second half of the year following the latest regulatory approval for the Islamic bonds.
The bill’s bylaws will be issued within three months in collaboration with the Financial Regulatory Authority (FRA) and Al-Azhar’s grand imam to issue the bonds in a way that is compatible with Islamic Sharia. The returns from the Islamic bonds will be taxed in the same manner as the treasury bills.
- Third, The Egyptian Tax Authority sets a deadline by 15 September for top taxpayers to join the electronic invoice system with non-compliant companies facing the possibility of prosecution.
In mid-November 2020, the Egyptian Tax Authority required 134 companies of the top corporate taxpayers to issue electronic tax invoices. The second phase began on 15 February 2021 and included 347 companies, while the third phase, which started on 15 May 2021, included the remaining of the top corporate taxpayers. So far, a total of 2,200 companies have joined the system.
- On another note, Egypt Kuwait Holding (EKH) plans to invest over 500 million USD over the next 5 years.
As per the investment plan, 80 million USD is to be invested to launch a pressed wood production plant of which 50 million USD has already been invested, with an expected launch date by Q2-2022. The company also plans to invest 75 million USD in drilling wells in North Sinai along with 100 million USD reserved for a potential acquisition.
- Moving on to the Investments coverage, El Ahly Sabbour signs a parentship Agreement with The Commercial International Bank (CIB) for mortgage financing of 150 residential units in Green Square project located in New Cairo.
The project, Green Square, is built over an 80 feddans plot in Mostakbal City with investment over 1.08 billion EGP. Construction completion of phase 1 of the project has reached 95% which includes 1128 residential units with delivery expected to start during the current year.
- Equally important, Elsewedy Electric (SWDY) and Madkour Group submit their financial offers for the establishment of a medium-voltage transformers station at Sheikh Zayed’s monorail which is expected to be built within 8 to 10 months on a turnkey basis with a capacity of 220 kilovolts.
The project will provide the required electrical energy for the Sheikh Zayed-6th of October monorail project. The Ministry of Electricity will review both offers and contract signings are expected to be concluded by September.
- With regards to companies’ coverage, Firstrand Bank Ltd reduces its shareholding stake in Alexandria Co. for Pharmaceuticals and Chemicals Industries to 2.8% from 5.4%.
The transaction involved the sale of 61,170 shares for EGP 8.1 million with an average share price of 133.02 EGP. Alexandria Co. for Pharmaceuticals and Chemical Industries reported net profits of 131.47 million EGP in FY 2021/2022, compared to 170.05 million EPG in FY 2019/2020.
- Finally, for our Covid-19 watch, Egypt has produced around 15 million doses of the Vacsera-Sinovac vaccine to be distributed to the vaccination centers nationwide starting August 24th.
The number of vaccination centers has been expanded last week to 657 centers across the country, including 512 centers for citizens and 145 centers for travelers. In addition, the Egypt Health Passport app will be launched in the coming days to facilitate the issuance of QR Code vaccination certificates online with 150,000 digital certificates with QR Codes have been issued so far.
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