Renewable Energy Egypt poised for $3bn green hydrogen facility Belgium-based Deme Group will invest $3 billion to build a green hydrogen facility in Gargoub port in the western region of Egypt. Significant progress has been made toward the final agreement and starting project implementation in coordination with the transport ministry, Daily News Egypt reported, citing Luc Vandenbulcke, CEO of Deme Group. The project will be implemented in […] October 29, 2023
FII Economy Egypt targets $35bn foreign investment in next five years Egypt expects foreign direct investment of $35 billion over the next five years as the government aims to boost economic growth. The government aims to attract around $12 billion in foreign direct investment in 2023/2024, with a projected annual increase of 15 percent and 20 percent, Egypt Today reported, citing General Authority of Free Zones […] October 26, 2023
Analysis Economy Egypt needs more dollars before devaluation, warn experts Egypt will devalue its currency further after December’s presidential election, as the country needs more time to increase its dollar reserves and give it a better chance of stabilising its ailing currency, analysts told AGBI. The Egyptian pound is linked to a basket of currencies in which the dollar is dominant. Policymakers have slashed the […] October 25, 2023
Finance S&P lowers Egypt’s rating as funding pressures mount S&P Global Ratings has lowered Egypt’s long-term sovereign credit rating to B- from B. The downgrade is based on the recurring delays in implementing monetary and structural reforms, which are worsening imbalances in the currency market, S&P said in a statement. The agency added that Egypt’s net foreign asset position was deteriorating, with a delay […] October 23, 2023
Infrastructure Orascom ‘treading water’ in Egypt but remains bullish The value of Orascom Development’s strong growth in Egypt has been almost wiped out as a result of continued currency devaluations. But group CEO Omar El Hamamsy remains bullish on the future of the North African country. The conglomerate, that is based in Switzerland and develops infrastructure at scale, has grown 60 percent in Egypt […] October 20, 2023
Analysis Finance Egypt shines as Mena’s top performing bourse in 2023 Egypt’s benchmark stock index soared to another all-time high this week, extending a prolonged rally as investors bought equities to hedge against soaring inflation and a fragile Egyptian pound. The EGX30 Index is the Middle East and North Africa region’s top performer in 2023, rising 51.2 percent to October 17, although in dollar terms its […] October 18, 2023
Energy Suez Canal Economic Zone signs $15bn energy deals Egypt’s Suez Canal Economic Zone signed a $6.75 billion deal with China Energy Engineering Corporation on Tuesday, for a green ammonia and green hydrogen project to be built in its Sokhna industrial zone. On the same day, another Chinese company, Hong Kong’s United Energy Group, signed a memorandum of understanding for a potassium chloride production […] October 17, 2023
Markets Egypt issues $500m of green panda bonds in China Egypt issued $500 million of sustainable panda bonds on the Chinese financial market on Tuesday, becoming the first country from the Middle East and North Africa to do so. The panda bonds – securities denominated in yuan but issued by non-Chinese borrowers – will be used to finance projects that support sustainable development goals, in […] October 17, 2023
Renewable Energy Egypt offers tax rebates to boost green hydrogen output Egypt is offering incentives to boost local green hydrogen production as it aims to transition to a sustainable economy, finance minister Mohamed Maait said. The incentives include tax rebates of 33 percent to 55 percent for green hydrogen production and local production of electric vehicles, Egypt Today reported. “The total green investments in Egypt have […] October 13, 2023
Analysis Banking and Finance Turkey and Egypt can trip up Gulf lenders says analyst Gulf banks are in a resilient position as oil production cuts crimp economic growth, but lenders could face headwinds from macroeconomic volatility in Egypt and Turkey, an S&P Global analyst said this week. In Turkey, Dubai’s Emirates NBD owns Denizbank and Qatar National Bank owns QNB Finansbank, the country’s eighth and ninth largest banks by […] October 12, 2023
Finance Moody’s downgrades ratings of five Egyptian banks Moody’s Investors Agency has downgraded five Egyptian banks by one notch, including the largest private bank, after downgrading the country’s credit rating on high inflation and rising borrowing costs. The long-term bank deposit ratings of the National Bank of Egypt, Banque Misr and Banque Du Caire, and privately-owned Commercial International Bank were lowered to “CAA1” […] October 12, 2023
Energy Chevron halts gas exports from Israel to Egypt Chevron has halted natural gas exports through a major subsea pipeline between Israel and Egypt and is supplying gas via an alternative pipeline through Jordan, the company said on Tuesday. The decision to halt exports via the East Mediterranean Gas (EMG) pipeline came as fighting has intensified between Israel and militants in the Gaza Strip. […] October 11, 2023
Industry Egypt to lower commodity prices by up to 25% Egypt’s government and the country’s private sector have joined forces and agreed to lower the prices of seven essential commodities by 15 to 25 percent, according to a local media report. The new initiative will initially focus on beans, lentils, dairy products, white cheese, pasta, sugar, cooking oil and rice. In addition, prices of live […] October 10, 2023
Leisure & Hospitality Egypt’s tourism revenue rises 27% to $14bn Egypt’s tourism revenue reached a record high of $13.6 billion in 2022-23, climbing 26.8 percent from $10.7 billion in 2021-22, according to data released by the country’s central bank. The number of tourists surged by 35.6 percent to 13.9 million, Egypt Today newspaper reported, citing the Central Bank of Egypt. The number of nights spent […] October 9, 2023
Finance Egypt’s bonds fight back after Moody’s downgrade Egypt’s government bonds fought back from an initial heavy tumble on Friday after Moody’s had downgraded the country’s credit rating to a new low and the head of the IMF had warned Cairo against delaying another currency devaluation. Moody’s, which had been eyeing up a possible downgrade for months, concluded the process late on Thursday […] October 8, 2023
Finance Moody’s downgrades Egypt on rising borrowing costs Moody’s Investor Service has downgraded Egypt’s credit rating to “Caa1” from “B3”, citing high inflation and rising domestic borrowing costs. The downgrade also reflects the persistence of foreign currency shortages due to increasing external debt service payments over the next two years. “An inability to arrest a further drawdown in foreign currency liquidity in the […] October 6, 2023
Finance Egyptian banks suspend overseas use of debit cards At least two Egyptian banks have suspended the use of Egyptian pound debit cards outside the country to stop a drain on foreign currency as the country’s currency shortage worsens. Arab African International Bank sent a notice to customers on Wednesday and Arab International Bank sent one on Thursday announcing the suspension, according to several […] October 6, 2023
Finance Egypt posts current account surplus as imports plunge Egypt’s current account turned to a surplus in the April-to-June quarter as imports plunged and revenue from tourism and the Suez Canal rose, its second quarterly surplus in less than a year, the central bank said on Wednesday. Egypt devalued its currency by more than half in the year to March, making imports more expensive. […] October 5, 2023
Energy Egypt to resume LNG exports this month Egypt, which faces growing demand for gas from its population of 105 million, will resume liquefied natural gas (LNG) exports this month as planned, petroleum minister Tarek El Molla said on Tuesday. “We are still arranging and preparing for that, quantities are not yet defined,” he told Reuters on the sidelines of the Adipec energy […] October 4, 2023
Banking and Finance Saudi turns to discounting as costs rise in Qatar and Egypt Increased competition has led Saudi Arabian businesses to embrace discounting, despite an increase in the price of raw materials and higher wages amid the rising cost of living. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) indicated that “competitive pressures” had limited sales for some businesses, resulting in a decrease in prices […] October 4, 2023
