Tourism Egypt tourism up 5% in early 2024 despite Gaza conflict The number of tourists visiting Egypt increased by five percent year on year in the first 40 days of 2024, according to Egypt’s tourism minister, Ahmed Issa. The announcement came after reports in January that visitor numbers for the whole of 2023 reached a record high of 14.9 million, just shy of the 15 million […] February 23, 2024
Analysis Economy Lebanon’s EDL harnesses the power of ‘dollarisation’ Lebanese citizens will soon be able to pay their electricity bills in US dollars as the unofficial “dollarisation” of the nation’s economy continues. The decision by Électricité du Liban (EDL) to allow customers to choose to pay their bills in USD instead of Lebanese lira was ratified by the electricity provider’s board of governors this […] February 20, 2024
Economy Lebanon switches to new exchange rate policy The Lebanese government is now using a dollar exchange rate closer to that of the parallel market when calculating taxes and fees for other administrative charges. The 2024 budget law, which was passed on January 26, ditches all references to the official LBP15,000 and LBP1,508 rates on which the bulk of government revenue was previously […] February 9, 2024
Analysis Energy Gunfights on the streets in Lebanon’s electricity Wild West A video is doing the rounds in Lebanon. The clip is not easy to find on social media, but it is being sent from friend to friend – and it’s got people talking since emerging last month. It shows an argument in a Beirut suburb turning ugly when a man pulls a gun on another […] February 7, 2024
Economy Egypt ‘close to IMF loan of $9bn’ Egypt has reached a staff-level agreement with the International Monetary Fund for an extended fund facility (EFF) two or three times bigger than the existing deal, according to various Egyptian news outlets. Al Borsa newspaper was among those reporting that a new deal could be announced “in hours or days”. Sources told Al Shorouk newspaper […] February 1, 2024
Economy Egypt stable for now but vulnerable, economists warn A few days after Israeli forces launched a ground offensive in Gaza, Fitch Ratings downgraded Egypt’s credit score to B- from B. The conflict could scare off tourists and investors, the ratings agency said in November, posing a risk to Egypt’s economy. This was Fitch’s second downgrade in six months: it stripped Egypt of B+ status […] December 6, 2023
Analysis Banking & Finance Lebanon’s new bank rules offer ‘lollar’ accounts respite The Banque du Liban (BDL), Lebanon’s central bank, has issued a circular limiting fees and commissions that commercial banks can impose on so-called “lollar” accounts. Circular No. 679 prohibits the imposition of commissions that were established after October 31, 2019 on dollar deposits made before September 3, 2019. It also obliges banks to publish their […] October 5, 2023
Oil & Gas Egypt opens bidding for new oil and gas exploration The Oil Ministry of Egypt on Monday launched an international bidding round for exploration in 23 blocks by oil and gas companies. Of the blocks on offer, 10 are in the Western Desert, seven in the Gulf of Suez, four in the Red Sea, and two in the Eastern Desert. The tenders are part of […] September 26, 2023
Economy Egypt urged to devalue pound to progress IMF talks Financial analysts have called on Egypt to devalue the country’s pound to ensure progress in negotiations with the International Monetary Fund and stabilise the economy. In a call on Wednesday, Capital Economics’ Middle East and North Africa economist, James Swanston, said that a further devaluation is “simply needed”, suggesting that the Central Bank of Egypt […] September 15, 2023
Economy Lebanon passes 2024 budget but debate rages on taxes and ‘dollarisation’ Lebanon’s caretaker cabinet passed a draft budget for 2024 on Tuesday with a focus on raising tax revenue and a move towards collecting fees and taxes in dollars. It was the first time since 2002 that a budget was approved within the constitutionally delineated time period of 31 October, which caretaker prime minister Najib Mikati […] September 13, 2023
Banking & Finance Lebanon to ditch Sayrafa currency exchange platform Lebanon’s cabinet has approved the replacement of the controversial Sayrafa currency exchange platform with a new one run through the Bloomberg trading system. Caretaker Information Minister Ziad Makari gave no indication of a time frame for the replacement when he spoke to reporters this week, saying only that the new platform would come into effect […] September 8, 2023
Economy Economic activity in Lebanon remains sluggish Lebanon’s economic activity appears to have contracted in August following a summer business lull according to a purchasing managers’ index published on Tuesday. The PMI is a monthly report based on survey responses from businesses regarding five subdivided performance indicators including new orders, output and employment. The report, compiled by BLOMInvest Bank and the ratings […] September 7, 2023
Analysis Energy Lebanon’s energy dilemma: power cuts and costly solar In a car park in West Beirut, a fuel tanker pumps 4,000 litres of diesel into barrels that will keep Bassem Jabir’s four illegal energy generators humming for another few days. Linked to local houses by dozens of thick cables strung across pavements and dangling from street lamps, generators like these have become the primary […] July 13, 2023
Transport Carlos Ghosn: $1bn Nissan lawsuit ‘not a gimmick’ Carlos Ghosn’s $1.09 billion lawsuit against his former employer Nissan, filed on Monday in Lebanon, is “not a gimmick” and the former car boss had considered claiming for an even higher amount, his legal team in Beirut told AGBI. The lawsuit, which AGBI has seen, levies 10 criminal offences against 12 individuals and two firms […] June 22, 2023
Analysis Economy Dollars make life harder in Lebanon’s cash economy At the checkouts of a busy supermarket on Souraty Street in west Beirut, waiting customers count their dollars. Since the economic crash of 2019, paying by card has fallen out of favour and, increasingly, so has the Lebanese pound. The largest national note, the LBP100,000 bill, is currently worth just $1.07 at market rates. Paying […] June 19, 2023
Economy Egypt asks to join Brics to lessen dependency on dollar Egypt has submitted an application to join the Brics group of large emerging market countries to develop trade ties and potentially reduce dependency on the US dollar, according to the Russian ambassador in Cairo. Brics consists of Brazil, Russia, India, China, and South Africa. “Egypt has submitted its application to join the Brics group because […] June 16, 2023
Economy Egypt’s economy weakens as long wait for reforms goes on Egypt’s non-oil private sector activity contracted for the 30th consecutive month in May, but at a slower pace than the previous 15 months, according to S&P Global’s latest survey. Businesses told S&P’s Egypt Purchasing Managers’ Index that high inflation continued to dent sales, output and purchasing. Some of those surveyed for May’s report, issued on […] June 6, 2023
Economy Egypt faces another devaluation, predict experts Economic analysts are predicting that the Egyptian government will be forced into a fourth devaluation of the Egyptian pound since February last year although uncertainty surrounds its timing and magnitude. Ramona Moubarak, head of Mena country risk at Fitch Solutions, cited sluggish capital inflows to Egypt and a growing parallel currency market due to persistent […] April 26, 2023
Economy Food prices drive latest hike in Egyptian inflation Egypt’s inflation hit some of the highest levels on record in March, the state statistics agency Capmas said on Monday. Year-on-year headline inflation increased to 32.7 percent while core inflation, which strips out energy and some food prices, slipped from an all-time high of 40.3 percent in February to 39.5 percent in March. The month-on-month […] April 11, 2023
Economy Egyptian interest rates nearing a 30-year high Interest rates in Egypt could soon reach a 30-year high, according to economists, amid fears that core inflation, already at a record 40.3 percent, will rise further. Last week, the Central Bank of Egypt (CBE) increased its overnight deposit rate and lending rate by 200 basis points (bps) to 18.25 percent and 19.25 percent respectively. […] April 7, 2023
Tourism Egypt’s five-year tourist visa meets an uncertain reaction Egyptian tourism will get a boost from a five-year tourist visa available for $700, the country’s government hopes. The visa has been announced as part of a national strategy to more than double tourist numbers over the next five years. Announcing the new visa at a press conference on Monday, Egyptian minister of tourism and […] March 29, 2023
Analysis Banking & Finance Rising demand for green bonds, despite ‘bleaching’ Global issuance of green bonds has increased by an average of 70 percent each year between 2016 and 2021. The market for environmental, social and corporate (ESG) governance finance in the Middle East and North Africa (Mena) region remains small compared to elsewhere, but it is growing quickly. Saudi Arabia’s Public Investment Fund issued $3 […] January 6, 2023
