Analysis Economy The rise and fall of millionaires in Morocco and Egypt The number of millionaires living in Morocco has increased by 28 percent over the last 10 years, but fallen by 25 percent in Egypt. While Morocco was awarded a $5 billion credit line from the International Monetary Fund (IMF) this week to shield it from the impact of the pandemic, droughts and the Ukraine war, […] April 6, 2023
Banking and Finance Egypt closes $680m funding for 500MW wind farm The Red Sea Wind Energy consortium has signed a financial closing agreement worth $680 million to establish a wind farm in the Gulf of Suez with a capacity of 500mw. The project will be funded by the Japan Cooperation Bank and the European Bank for Reconstruction and Development, Egypt Today newspaper reported, citing an Egyptian […] April 6, 2023
Banking and Finance Egyptian bond sales fall on likely currency devaluation Sales of three-year Egyptian treasury bonds issued on Tuesday plummeted to EGP1.09 million ($35,332) after the government baulked at the high yields demanded by investors concerned the currency is likely to depreciate soon. The central bank received 26 bids worth EGP5.77 billion with a weighted average yield of 24.15 percent at an auction on Monday, […] April 5, 2023
Transport Egyptian electric train project gets IsDB green light The Islamic Development Bank has approved $344.5 million in financing towards the first phase of the planned Egyptian electric train system. The 660 km railway will connect Egypt’s port cities of Alexandria and Marsa Matrouh on the Mediterranean with Ain Sokhna on the Red Sea. The Egyptian electric train project is expected to benefit 25 […] April 3, 2023
Economy Egypt’s Sisi heads to Saudi Arabia amid financial pressure Egyptian President Abdel Fattah Al Sisi has travelled to Saudi Arabia as Cairo continues to seek financial inflows to ease pressure on its currency and bolster a faltering economy. Sisi was welcomed in Jeddah on Monday morning by Saudi Crown Prince Mohammed bin Salman. Oil-rich Saudi Arabia has long provided financial support to Egypt but […] April 3, 2023
Banking and Finance Turkish firms to invest $500m in Egypt amid improved ties Turkish companies are set to invest $500 million in Egypt in 2023-2024, targeting a trading volume of $20 billion in the long-term, a local newspaper reported. Turkish investors have significantly increased their investment in Egypt, with 35 companies employing 70,000 Egyptians at an investment of $1.5 billion, Daily Sabah newspaper reported, citing Mustafa Denizer, chairperson […] April 2, 2023
Economy Egypt approves extra $5.4bn in current budget for social care Egyptian President Abdel Fattah al-Sisi has approved additional budget spending of EGP165 billion ($5.4 billion) for this fiscal year ending in June, local media reported on Friday, citing the official gazette. The additional money was allocated for wages, subsidies and grants, and for social benefit spending, state-owned newspaper Al Ahram reported. Egypt is facing economic […] April 2, 2023
Banking and Finance Egypt raises interest rates by 200 bps to tame inflation The Central Bank of Egypt (CBE) raised its overnight interest rates by 200 basis points (bps) on Thursday following a meeting of its monetary policy committee (MPC), saying it aimed to bring high inflation into check. The bank set the lending rate at 19.25 percent and the deposit rate at 18.25 percent. The median forecast […] March 31, 2023
Economy Egypt to raise food subsidies by 20% in 2023-24 draft budget Egypt expects to raise its allocation for food subsidies by 20 percent and for petroleum products by 24 percent in the 2023-24 fiscal year, according to a draft budget approved by the cabinet on Wednesday. The budget forecasts GDP growth of 4.1 percent and inflation at an average rate of 16 percent during the next […] March 30, 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
Banking and Finance Egypt faces pressure to devalue currency further The Egyptian pound lost ground on the black market again in recent days in a sign that halving its official value over the past year could still not be enough and the central bank may have to let it slide further. Despite its pledge in October to allow supply and demand determine exchange rates, the […] March 29, 2023
Banking and Finance Egypt central bank may hike interest rates to tame inflation Egypt’s central bank (CBE) is forecast to hike its overnight interest rates by 200 basis points (bps) on Thursday as it struggles to bring soaring inflation under control, a Reuters poll showed on Monday. After that meeting, the state statistics agency announced that annual inflation in January had surged to 25.8 percent and in February to 31.9 percent, […] March 29, 2023
Banking and Finance China spent $240bn bailing out ‘Belt & Road’ countries China spent $240 billion bailing out 22 developing countries between 2008 and 2021. The amount soared in recent years as more have struggled to repay loans spent building “Belt & Road” infrastructure, according to a study published Tuesday. Almost 80 percent of the rescue lending was made between 2016 and 2021, mainly to middle-income countries […] March 28, 2023
Manufacturing Chinese firm to invest $2bn in Suez Canal Economic Zone Chinese company Xinxing Ductile Iron Pipes intends to invest $2 billion in iron and steel plants in the Suez Canal Economic Zone, Egypt’s cabinet said on Thursday. The plants are planned in an industrial zone at the Egyptian Red Sea port of Ain Sokhna developed by China’s Tianjin and will manufacture iron pipes and steel […] March 26, 2023
Banking and Finance World Bank approves $7bn loan to accelerate Egypt reforms The World Bank has approved a new $7 billion partnership agreement with Egypt for 2023-2027 with a focus on boosting private sector jobs, provision of better health and education services and adaptation to climate change. The country partnership agreement (CPF) will entail $1 billion per year from the International Bank for Reconstruction and Development (IBRD) […] March 23, 2023
Markets Egypt suspends sale of state-owned Telecom Egypt stake Egypt has decided to suspend the sale of a stake in state-controlled Telecom Egypt because of market conditions, three sources close to the matter said. Telecom Egypt said on March 7 that the government had started to consider a sale of an additional stake in the company. Sources had previously told Reuters the government was […] March 22, 2023
Economy Egypt to increase tax exemption limit amid rising cost of living Egypt will increase the annual income tax exemption limit to mitigate the effects of the global economic crisis and its repercussions on citizens. President Abdel Fattah El Sisi issued a directive to increase the tax limit to EGP36,000 ($1,168.68) from EGP24,000 ($776.91) per year, Ahram Online reported. The country aims to achieve a growth rate […] March 20, 2023
Logistics AD Ports to invest $200m to develop Safaga Port in Egypt Abu Dhabi’s AD Ports Group has signed a 30-year concession agreement worth $200 million to develop and operate Egypt’s Safaga port. In addition, two 15-year agreements, a memorandum of understanding (MoU) and three head of terms (HoT) for ports in Egypt’s Red Sea region and the Mediterranean Sea were signed. These agreements allow for expanded […] March 19, 2023
Energy Rolls-Royce sees Mena as ‘driver’ for green power growth The Middle East and Africa’s rapid urbanisation and push to decarbonise power generation is a “great economic driver” for Rolls-Royce, the British engineering firm’s regional chief told AGBI. Rolls-Royce is one of the world’s top aero engine manufacturers, supplying civilian and military craft, although its power systems division provided 26.4 percent of its £12.69 billion […] March 17, 2023
Economy Egypt asset sales face obstacles as state maintains grip Egypt has promised the International Monetary Fund it will roll back the state’s involvement in the economy and allow private companies a much greater role, yet several recent moves show it continuing to expand its holdings and tighten its control. As part of a $3 billion, 46-month financial support package announced with the IMF in […] March 17, 2023
