The CBE revealed that foreign currency reserves increased by 63 million USD to reach 40.672 billion USD at the end of last August
The Central Bank of Egypt revealed that foreign currency reserves increased by 63 million USD to reach 40.672 billion USD at the end of last August, compared to 40.609 billion USD at the end of July 2021. Egypt FX reserves came in the face of all the negative repercussions that passed in 2020, supported by the success of the CBE in building it strongly before the emergence of the pandemic, and bringing it to unprecedented levels, the highest ever in the history of Egypt, as it had reached about 45.510 billion USD in February 2020, which contributed to increasing the central bank’s ability to support the state in light of the Corona crisis. Second, the Global Finance magazine has chosen the Governor of the Central Bank of Egypt (CBE) Tarek Amer as among the top-ten central banks’ governors list for 2021, awarding him “A” grade along with central bank governors of European Union, China, among others.
- Equally important, nearly 16 global and local consortiums have been technically qualified to compete for the implementation of Abu Qir Metro in Alexanderia.
A consortium comprised Elsewedy Electric (SWDY) and Siemens as well as the consortium consisting of Orascom Construction and Arab Contractors are among the qualified alliances. A limited bid is set to be launched to award the project at a cost of 1.5 billion EUR. It is worth noting that the Ministry of transport is targeting to turn Abu Qir railway in Alexandria to underground extending over 21.7 kilometers in 2022. With this in mind, we need to mention that Egypt attracts second most inbound M&A transactions worldwide in the first half of 2021, recording 18 transactions valued at 1.8 illion USD during the first half of the year.
- Likewise, a consortium led by the National Bank of Egypt (NBE) has been successful in providing a medium-term syndicated loan worth a total of 12.3 billion EGP to Gharably integrated Engineering Company (GIECO).
The syndicated loan aims at partially financing the expansion of Abu Qir Port and the development of New Abu Qir city; this project is set for implementation at a total cost of 19.06 billion EGP.
- Moreover, regarding the NBE and Egypt education sector, the bank has launched a new service aimed at paying egyptian universities for students coming in foreign currencies, which is in line with the presidential initiative "study in egypt".
Here, we need to highlight that Egypt is also seeing rising demand for K-12 private school education, but expansion remains heavily Cairo-focused. Noting that expanding beyond the capital just isn’t worth it due to the high land costs and potentially lower revenues. However, expanding into the governorates will facilitate meeting the substantial demand, facing low competition, and having the chance to develop Egypt’s education system. Expansion beyond Cairo is a smart move!
- Moving to our real estate sector talks, Nakheel Developments will launch 2nd project in NAC in September.
With this in mind, we need to mention that the Ministry of Transport is currently preparing a new law that includes increasing the period of use for land and dry ports to 30 years to attract the largest number of companies to implement the ministry's plan to establish 9 projects by the end of 2025.
- And for our energy talks, Enppi aims to open new business areas in a number of promising markets and countries, most notably Sudan, Oman and Algeria.
It is noteworthy that Enppi recently signed a long-term agreement for a period of 6 years, renewable for the same period, with Saudi Aramco to implement the petroleum projects of the latter. And in contrast to Saudi Arabia, Enppi is currently implementing another project in the petroleum sector for the “ADNOC Offshore Company”.
- In addition, Elsewedy Electric Co and Toyota Tsusho Corporation (TTC) announced the completion of the engineering, procurement, and construction (EPC) contract of four gas-insulated switchgear (GIS) substations for the Iraqi Ministry of Electricity in Southern Iraq.
Furthermore, Abu Dhabi National Oil Company (ADNOC) is planning to sell at least 7.5% of its drilling unit’s shares on the ADX, in what could be one of the largest IPOs in the UAE.
- And in the light of Corona vaccines, first, Egypt has received the second batch of Johnson & Johnson vaccine of 525,600 doses.
In addition, the Egyptian government is studying reinstating some preventative measures to combat the fourth wave of COVID-19 due to the climbing case numbers and spread of the delta variant in many governorates. Second, State-owned vaccine-maker Vacsera will increase the production of Sinovac shots to 300,000 per day as of Wednesday, September 8th. Accordingly, the company is expected to produce up to 9 million doses a month. And after the opening of its new facility in Sixth of October in November, the production capacity could be increased to 15-18.5 million doses per month. On the other hand, the first shipment of Moderna vaccines and the 3.2 million doses of the Pfizer shot are set to arrive before and mid September.
- And for our EGX listed companies, Egypt plans to instate a 10% capital gains tax on the capital gains realized by residents (retail and institutional investors) from the sale of shares registered on the Egyptian Exchange (EGX).
The decision will be effective as of January 1st, 2022. The capital gains realized by non-residents from the sale of shares registered on the EGX will not be subject to a capital gains tax. Accordingly, stamp tax will remain effective until December 31st, 2021.
- Furthermore, Macro Group Pharmaceuticals will continue the procedures of its listing on the Egyptian Exchange (EGX) through an initial public offering (IPO) by the end of 2021 or early 2022.
It is worth mentioning that the evaluation of the company is expected to increase over the coming period, noting that this is the reason why the IPO has been postponed.
Stay up to date
More Newsletter to Check
SUBSCRIBE TO NEWSLETTER
Subscribe to download our daily economics and business roundup
×
![]()