United Bank of Egypt due diligence set for September

Newsletter

23 Aug 2023

United Bank of Egypt due diligence set for September. The Central Bank of Egypt (CBE) announced that the due diligence process for the United Bank of Egypt will commence by the end of September, attracting interest from several international financial institutions. On the same note, Credit Agricole Egypt clarified that it hasn’t undertaken any due diligence on the bank, despite previous reports suggesting otherwise. Earlier in May, Barclays Bank PLC was chosen as the international adviser, and CI Capital Investment Banking as the local adviser, to oversee the CBE’s stake divestment in the United Bank of Egypt. (Arab Finance)

Cheiron Energy uncovers new oil source in Gulf of Suez, boosting daily output.
Cheiron Energy disclosed a fresh oil find in the Geisum and Tawila West concession in the Gulf of Suez. This discovery, via the GNN-11 exploration well, is anticipated to produce over 2,500 barrels daily, elevating the concession's total output to about 23,000 barrels daily, a significant jump from the initial 4,000 barrels before North Geisum field's development. The field's operations are split evenly between Petro Gulf Misr for the Egyptian General Petroleum Corporation (EGPC) and a coalition of Cheiron and KUFPEC. The latter duo intends to further drill and enhance the North Geissum field. (Arab Finance)
Egypt's unemployment dips to 7% in Q2 2023, labor force grows by 398,000.
Egypt's unemployment rate dropped to 7% in Q2 2023, a 0.1% decline from the first quarter, according to the Central Agency for Public Mobilization and Statistics. The labor force grew by 1.3% to approximately 30.97 million individuals from the preceding quarter, with urban and rural labor forces at 13.375 million and 17.594 million, respectively. Male workers constituted around 25.514 million, while females stood at 5.455 million. This uptick is credited to the employment of an extra 400,000 workers in this quarter and a reduction of 2,000 unemployed individuals, leading to an overall labor force increase of 398,000. (Hapi Journal)
Egypt revises trade regulations to streamline import-export processes.
Egypt's Minister of Trade and Industry, Ahmed Samir, has revised provisions of Law No. 118 of 1975 concerning import, export, and inspection procedures. The modifications, announced on August 21st, mandate the General Organization for Import and Export Control (GOEIC) to establish a comprehensive risk control system for inspecting non-food industrial imports. Additionally, a committee will be formed to define this system's standards. These changes aim to assist exporters and importers by reducing documentation and expediting customs clearance, as noted by GOEIC's Essam Al-Naggar. (Arab Finance)
East Port Said port celebrates global ranking and new terminal inaugurations in the presence of key officials.
The General Authority for the Economic Zone of the Suez Canal celebrated East Port Said port's achievement of ranking tenth globally in container handling. The event, which also marked the inauguration of the container terminal 2 and multi-purpose terminal contracts, and the launch of conventional and green ship fuel services, was graced by key officials, including the Minister of Transport, Engineer Kamel Al-Wazir, and Chairman of the Suez Canal Authority, Lieutenant General Osama Rabie. Leading figures from Sky Ports, OCI global, and Peninsula Company were also in attendance. (Hapi Journal)
Finance Ministry explores local-currency bond issuance with IFC for potential investment boost in Egypt.
The Cabinet has authorized the Finance Ministry to discuss with the International Finance Corporation (IFC) about a possible local-currency bond issuance. This move could lead to increased IFC investment in Egypt and provide more foreign exchange for the private sector's needs. Last year, the IFC generated a $2 billion bond, exceeding its target, to bolster its commitment to emerging markets. Furthermore, a decade ago, IFC released local currency bonds in Nigeria and Russia to enhance their domestic capital markets. (Enterprise)
Saudi Egyptian Development Company to lead sales for "Arabesque" project in historic Cairo area.
The Urban Communities Authority has entrusted the Saudi Egyptian Development Company with marketing, sales, and customer service responsibilities for the first phase of the Sur Al-Oyoun development project named "Arabesque." This project, set in Old Cairo's Magra Al-Oyoun area, houses significant Islamic archaeological sites and boasts proximity to major attractions like the Egyptian Museum of Civilization and Fustat Park. With around 79 buildings comprising 1924 housing units and 18 commercial units, "Arabesque" provides comprehensive amenities like restaurants, theaters, and a mall. All units are complete, with sales and deliveries commencing next September. (Economy Plus)
CI Capital reports 92% revenue growth and EGP 20 billion portfolio in H1 2023.
CI Capital Holding Company for Financial Investments reported a significant financial growth in the first half of 2023, with revenues surging by 92% to EGP 3.1 billion compared to the previous year. Their net profit also saw a 52% increase, amounting to EGP 517m. The company's total financing portfolio grew by 27%, reaching a peak value of EGP 20 billion, making it a market leader in Egypt. Hisham Gohar, the CEO, highlighted the robust financial and operational results across all sectors during this period. (Al Mal)
Egypt and World Bank Group discuss bolstering water systems and addressing African water challenges.
Egypt's Minister of Water Resources and Irrigation, Hani Sewilam, engaged in talks with Saroj Kumar Jha, Global Director for the World Bank Group's Water Global Practice, to explore enhancing Egypt’s water system with WBG's aid. Their discussions extended to the bank's financing role in Africa's technical and infrastructural growth, addressing the continent's water challenges, and furthering the sustainable development goals. They also considered a joint study on the Suez waterway and progress in the Nexus of Water, Food, and Energy program. Plans include adopting eco-friendly technologies and restoring water installations. (Arab Finance)
India mulls further rice export curbs amid record-high Asian prices.
India, the leading global rice exporter, is contemplating additional restrictions on rice exports in response to rising food prices. While the government deliberates on imposing a tax on boiled rice exports, no firm decision has been made. This move could potentially limit the worldwide supply. Notably, Asian rice prices surged to a 15-year high this month after India restricted certain exports and concerns grew over Thai production. (Hapi Journal)