The Central Bank of Egypt and Kuwait Investment Authority are each set to offload a 20% stake in the Arab African Investment Bank

Newsletter

12 Nov 2023

The Central Bank of Egypt (CBE) and Kuwait Investment Authority (KIA) are each set to offload a 20% stake in the Arab African Investment Bank. The CBE and the KIA each own a 49.4%stake in AAIB. The sellers are lookin to divest their shares on the EGX and to strategic investors. AAIB is on the government’s list of 35 state owned companies geared for privatization.

In order to achieve a successful floatation in the coming months, the CBE needs around 8 to 10 billion USD liquidity to overcome the FX crunch.
Recent debt agreements with the UAE and China have contributed a further 2.4 billion USD in addition to inflows from revenue-raising measures such as the car import and the military service settlement schemes. It is worth mentioning that the government wants to raise another 5 billion USD from its offering program between November and June and is working on the sale of a number of assets including two military owned companies, wind farms and one of the Siemens built combined cycle power plants. Moreover, the government is expected to raise another 1 billion USD from the sale of state assets over the next three months, taking total proceeds from the privatization program to almost 3 billion USD. (Enterprise)
Cabinet extends customs duties exemption on gold brought by travelers for 6 months.
The Cabinet has ratified extending the period of customs duties exemption on gold imports brought by Egyptian travelers from abroad for another six months to end on May 10th, 2024. However, travelers will still have to pay value-added tax on these imports. It is worth noting that this decision is not applicable to natural pearls, cultured pearls, precious stones, and semi-precious stones. This comes within the framework of the country’s efforts to stabilize gold prices in markets and control gold smuggling across customs points. (Hapi Journal)
Egyptian stocks and gold hit record highs last week, as investors attracted to non-EGP assets avoiding the currency uncertainty exacerbated by the war in Gaza.
The combination of a widely anticipated devaluation and concerns about the impact of the war in Gaza have caused the rally to accelerate over the past month. The EGX30 and gold have both climbed more than 20% in the past five weeks alone. (Al Mal)
Cabinet ratifies draft resolution on establishing Egyptian-Italian free zone in Ain Sokhna.
The Egyptian cabinet has endorsed a draft resolution on the establishment of a private free zone, referred to as the Egyptian Italian Company for Sustainable Technological Industries (SIM-TECK), in Ain Sokhna. Under the resolution, the firm will export at least 80% of its annual production abroad and use local components in 90% of its production over a maximum of three years as of operation date. The cabinet has also authorized the Suez Canal Authority (SCA) to take part in the incorporation of a joint stock company to manufacture, maintain, and export yachts and marine units. (Arab Financee)
NERIC receives golden license to operate 3.6 billion EGP factory.
The Egyptian cabinet has granted the golden license to the National Egyptian Railway Industries Company (NERIC) for the establishment and operation of its railway components manufacturing factory. The project’s total investments amount to up to 3.575 billion EGP, and is expected to hire around 500 employees. The General Authority for Investment and Free Zones (GAFI) will be in charge of following up on the execution of the project as per the timetable agreed upon. (Hapi Journal)
Fawry denies cyberattack rumors.
Fawry has denied facing a cyberattack, confirming the efficiency and security of its electronic defense across all its platforms. The e-payment firm added that it has checked all its servers, ensuring that they were not exposed to any damage. It confirmed that no customer financial or banking data was leaked. (Asharq Business)
Standard Chartered will open in Egypt by the end of the year.
StanChart received its full banking license from the CBE in November 2022 allowing to offer services to sovereign and government related bodies, financial institutions and multinationals working in Egypt. The bank announced last year its plans to exist seven markets, including Lebanon and Jordan to focus on bigger and faster growing markets like Saudi Arabia and Egypt. (Al Mal)
"Saudi Arabia's Tamr" is nearing the acquisition of a 30% stake in an Egyptian pharmaceutical company.
The "Tamr Healthcare Group," one of Saudi Arabia's various suppliers of pharmaceuticals and medical supplies, is close to acquiring a stake of up to 30% in the Egyptian company "United Pharmacists." Noting that the American company "Amryisus Virgin," which owns approximately 50% of the shares of "United Pharmacists," has already agreed to sell 30% of the company to the Saudi "Tamr Healthcare Group" for up to 35 million USD. Additionally, the Egyptian company "Eva Pharma" has signed an agreement to build a pharmaceutical manufacturing complex in Saudi Arabia worth 500 million SAR. (Asharq Business)