The start of COP27 in Sharm El Sheikh is leading the conversation both here at home and in the international business press this afternoon

Newsletter

07 Nov 2022

The start of COP27 in Sharm El Sheikh is leading the conversation both here at home and in the international business press this afternoon. Egypt seeks to add up to 18 billion USD green hydrogen contribution to GDP by 2025. Egypt targets raising gross domestic product (GDP) by 10 billion USD to 18 billion USD by 2025 under the National Green Hydrogen Strategy. The national strategy also aims at creating more than 100,000 jobs and reducing Egypt’s imports of petroleum products. The green hydrogen strategy is being prepared and will be announced during the events of the 2022 United Nations Climate Change Conference (COP27). It is worth noting that today is the second day of the two-week UN climate summit and Sharm El Sheikh is glowing green as it welcomes over 40k participants who registered to take part in the event. (Arab Finance)

Egypt, Germany sign 2 declarations of intent for cooperation in sustainable energy
Egypt and Germany signed two declarations of intent for cooperation in the fields of liquefied natural gas (LNG) and green hydrogen to secure clean energy supply, achieve sustainable development, and tackle climate change. The declaration of intent signed in the LNG field aims to promote cooperation between the public and private sectors in the two countries in energy trade. (Al Mal)
International community pledges diversified funding for Egypt’s NWFE
The European Bank for Reconstruction and Development (EBRD), the US, and the European Union (EU), along with international financing institutions pledged to provide diversified funding instruments for Egypt’s Nexus on Water, Food and Energy (NWFE) program. The financing instruments will include incentives for the private sector, concessional facilities, and technical support grants, as well as climate finance mechanisms. (Arab Finance)
Egypt to invest 93.5 billion USD in manufacturing industries in FY 2022/2023
The Egyptian government is planning to invest around EGP 93.5 billion in the manufacturing industries sector during fiscal year (FY) 2022/2023, up by 6.1% from the FY 2021/2022 plan, according to a report by the Ministry of Planning and Economic Development. The non-oil manufacturing industries represent about 80% or 74.1 billion EGP of total investments directed to manufacturing industries in FY 2022/2023, while the oil manufacturing industries account for 20% or 19.4 billion EGP of investments. Minister of Planning Hala El-Said revealed that the manufacturing industries sector’s contribution to the gross domestic product (GDP) stands at least 16%, adding that the sector marks 15% of the total labor force. El-Said added that the sector made up 85% of total non-oil merchandise exports. (Arab Finance)
Egypt’s engineering exports jump 19% YoY in 9 months
Egypt’s engineering exports surged by 19% year-on-year (YoY) during the first nine months of 2022. Engineering exports reached 2.74 billion USD in the January-September period of 2022, compared to 2.3 billion USD in the same period last year. Exports of electronics, cables, car parts, and home appliances grew by 18%, 48%, 15.1%, and 5%, respectively, in the nine months ended September 30th. Top importers of Egypt’s engineering exports were the UK, France, Germany, Saudi Arabia, the UAE, and Algeria. It is worth noting that Egypt’s exports grew by 48.8% year-on-year (YoY) in 2021, recording 42.6 billion USD, compared to 29.3 billion USD in 2020. (Ahram Gate)
Egypt’s car replacement initiative to cover 5 additional governorates
Ministry of Finance Mohamed Maait stated that the five governorates have been included in the presidential initiative for the replacement of 20-year-old vehicles. The recently included governorates are Ismailia, Al-Sharqia, Al-Behira, Beni Suef, and Sohag. Maait noted that the government was resolved to expand the number of beneficiaries of the initiative. The minister revealed that the green incentive had cost the state more than 590 million EGP dispersed for over 24,000 citizens so far under the vehicle replacement initiative. (Hapi Journal)
Cairo Education concludes 800 million EGP future flow securitization
Cairo Education (CIRA) has successfully completed the issuance of its future flow securitization at a value of 800 million EGP. This marks the first issuance under a securitization program worth 2 billion EGP. The issuance comprises three tranches; the first worth 96 million EGP with a tenor of three years, the second valued at 304 million EGP with a tenor of five years, and the third tranche worth 400 million EGP with a tenor of seven years. The three tranches received a credit rating of “A” from Middle East Ratings and Investor Services (MERIS). (Hapi Jounral)
KIMA, Italy’s Maire Tecnimont settles disputes over ammonia plant
Egyptian Chemical Industries (KIMA) (EGCH) has signed a settlement agreement with the Italian engineering company Maire Tecnimont to end all the disputes between the two companies regarding the ammonia and urea project. The signing came after the Egyptian Cabinet endorsed the settlement of all disputes between KIMA and Maire Tecnimont on October 12th. As per the agreement, Maire Tecnimont will settle the amounts it would receive as a compensation from insurance companies or the cases it filed against Japan’s Hitachi as a result of a damage that caused the ammonia plant to stop direct production for KIMA. (Al Mal)
EgyptAir’s 1st sustainable flight carries COP27 attendees from Paris Saturday
EgyptAir launched on Saturday the first air flight fueled by sustainable aviation fuel (SAF), in collaboration with Neste MY company, transporting a delegation attending COP27. Minister of Civil Aviation’s climate change strategy aims to transform the aviation sector to become eco-friendly, civil aviation minister Mohammed Abbas said. The Dreamliner Boeing 787-900 plane transported a delegation attending COP27 from Paris to Sharm El-Sheikh. (Arab Finance)
JV of Masdar, Infinity power COP27 with renewable energy
Infinity Power Holding, the joint venture (JV) between the UAE’s Masdar and Egypt’s Infinity, will power the United Nations Climate Change Conference (COP27) via its 6-megawatts solar photovoltaic (PV) plant in Sharm El-Sheikh. The plant is now fully operational and has a capacity of 11,723 megawatt-hours (MWh) of energy per year, which is sufficient to power over 5,000 homes and reduce carbon dioxide emissions by more than 4,000 tons. (Al Mal)