The European Bank for Reconstruction and Development, expected a rise in the rate of foreign direct investment
The European Bank for Reconstruction and Development (EBRD), expected a rise in the rate of foreign direct investment (FDI) flows to the local market in the coming period in the non-oil sectors, noting that the past years witnessed the attraction of many foreign investments in the oil and gas sectors. We believe there is a state of anticipation and waiting for foreign investors to start implementing projects in Egypt in light of the economic reforms implemented by the government, various projects in infrastructure and industrial areas, and speeding up customs procedures.
- Moving to Egypt sector talks, local paper prices witnessed new increases during the current month of July, on the back of the Qena Factory's recent announcement of raising its price.
Pointing out that the Qena factory attributed the increase to the increase in the prices of imported paper pulp and imported local and international raw materials, which led to an increase in production costs for all types of paper and printing locally. It is worthy to highlight that the demand for paper decreased due to the Coronavirus crisis, and that merchants did not resort to storing goods as usual annually, forcing them to bear the current price hikes.
- Second, Egypt's non-oil private sector activity edged up to growth at the end of H1-2021 thanks to an increase in activity, export volumes, and tourist numbers.
The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI) increased to 49.9 in June, compared to 48.6 in May, slightly down from the neutral 50.0. Output and new orders grew for the first time in seven months as export sales grew at the fastest pace since February.
- In other news, Nile Misr Healthcare platform intends to complete at least 3 new acquisitions by the end of this year.
It is noteworthy that “Nile Misr Healthcare” was recently launched under a partnership between Misr Capital, the investment arm of Banque Misr, and Elevate Private Equity, the strategic manager of the Nile Centers and Laboratories group, with a value of USD 380 mn, with the aim of investing in the healthcare sector.
- Equally important, “Nissan” topped the top of the most recognized brands in the presidential initiative to replace old vehicles that have been in production for 20 years with new dual-fuel vehicles “natural gas-gasoline” after it managed to acquire a share of up to 37% of the total deliveries of the first three months of its entry into force, with 898 cars.
It is worth noting that the total value of the green incentive, which the Ministry of Finance guaranteed to pay to the car companies participating in the initiative, amounted to USD 51 mn at the end of June, in return for the delivery of 2,427 cars during the first three.
- By the same token, investment Bank Naim's research unit raised the fair value of Alexandria Mineral Oils Company (AMOC) share from 2.6 to 4.34 EGP.
Naim attributed the target price growth to expectations that refining margins would grow to their highest rates in 3 years, supported by an increase in oil prices and an improvement in internal efficiencies.
- Not to mention the GERD filling, Ethiopia has notified Egypt that it has resumed filling the reservoir of the Grand Ethiopian Renaissance Dam (GERD).
Noting that there won’t be an immediate impact on our water supply, according to the ministry’s spokesperson. This raises the temperature ahead of the UN Security Council meeting, which is expected on Thursday to discuss the GERD dispute at the request of Egypt and Sudan.
- Regards yesterday’s big talks abroad, oil prices continued to rise in global oil markets on Tuesday, reaching their highest levels since 2018 after the cancellation of talks by the Organization of the Petroleum
Exporting Countries and its allies, raising expectations of a supply restriction as global demand for fuel recovers from the stagnation caused by Covid-19.
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