Analysis Economic success for Menap hinges on greater regional trade Many countries in the Middle East, North Africa, Afghanistan and Pakistan (Menap) region are enjoying growth, but new research has found that intra-regional exports account for only 2.9 percent of total gross domestic product. This compares to a global average of 7.9 percent, and 22 percent across the European Union (EU), Norway, Switzerland and the […] January 24, 2023
Banking & Finance Egypt signs $1.5bn financing pact for energy and commodity imports Egypt has signed a $1.5 billion financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund its trading, including imports of energy products and essential commodities, CNBC Arabia wrote on Twitter, citing the head of the corporation. Last year Egypt signed a similar agreement also worth $1.5 billion with the ITFC, which is […] January 23, 2023
Banking & Finance Russia adds Egyptian pound and UAE dirham to exchange rate list Russia’s central bank has added nine currencies to its list of exchange rates against the ruble, including the UAE dirham, Qatari riyal and Egyptian pound (EGP), from January 18, Ahram Online reported. The other six are Thai baht, Vietnamese dong, Serbian dinar, New Zealand dollar, Georgian lari and Indonesian rupiah, the news portal said, citing a […] January 20, 2023
Economy Egypt’s soaring prices drive home economic pain In better times, Om Mohamed’s family used to take holidays at resorts on Egypt’s Red Sea coast. Now there is no money for vacations. Om Mohamed, 61, and her husband, who live with two grown-up sons in an apartment near the Cairo ringroad, are cutting back on items like meat as they try to get […] January 20, 2023
Economy Egypt sees high demand from investors after currency drop Egypt is seeing good investor appetite for stakes in its state-owned enterprises, the country’s planning minister said, as the government pursues partial privatisations to drum up funds after a sharp fall in the value of its currency. Egypt, faced with a currency crunch exacerbated by the war in Ukraine, recently started a $3 billion International […] January 19, 2023
Banking & Finance Egypt’s banks can cope with sharp currency drop, say experts Egyptian banks can withstand the impact of further currency depreciation as they are supported by “healthy internal capital generation”, analysts say. Fitch Ratings report that large private sector banks are better placed to deal with a weaker pound than the two largest public banks, National Bank of Egypt and Banque Misr, due to their higher […] January 18, 2023
Sustainability $100bn ‘a drop in the ocean’ for climate action, says Cop27 host The world still urgently needs to address the “elephant in the room” in the climate crisis, which is financing action for vulnerable developing countries, officials from Cop27 host nation Egypt said. In 2020 combined adaptation and mitigation finance flows fell at least $17 billion short of the $100 billion pledged annually to developing countries, according […] January 17, 2023
Markets Foreign investors pour $925m into Egypt in just three days Foreign investors transferred more than $925 million into the Egyptian foreign exchange market in the three days since its currency sharply depreciated last week, Egypt’s central bank said in a statement. The Egyptian pound weakened to about 32 to the dollar from 27.60 at the open on Wednesday before rebounding to 29.61 pounds by end-Monday. […] January 17, 2023
Energy New gas discovery in Egypt’s Eastern Mediterranean sea Italian energy group Eni and US energy major Chevron said they have made a new gas discovery in an Egyptian offshore field in the Eastern Mediterranean sea. The Nargis-1 well is part of Egypt’s 1,800sq km Nargis Offshore Area concession operated by Chevron, which holds a 45 percent interest in it. Eni also holds a […] January 16, 2023
Economy Egyptian small businesses optimistic about 2023 The majority of Egyptian small business owners are optimistic about their growth prospects for 2023. YouGov and GoDaddy’s 2023 Small Business Survey found that 67 percent of Egyptian entrepreneurs are expecting growth this year, with the food and beverage, technology and e-commerce sectors perceived as having the most potential. Selina Bieber, commercial strategy senior director […] January 16, 2023
Banking & Finance Dollars flow into Egypt’s forex market after pound depreciation Hundreds of millions of dollars have flowed through Egypt’s interbank market since the central bank allowed the Egyptian pound to depreciate by 13 percent to a historic low, bankers said. The Egyptian pound weakened to as low as 32.20 to the dollar on Wednesday from 27.60 at the opening of trade. It since rebounded to […] January 13, 2023
Analysis Banking & Finance Agtech startups and Egypt are hot prospects for Mena funding Startups across the Middle East and North Africa region raised $125 million in funding in December last year, with Egyptian companies leading the pack, ahead of regional powerhouses the UAE and Saudi Arabia. A joint report by Wamda and Digital Digest showed that Egyptian startups secured $45.7 million across 11 deals in December, more than […] January 13, 2023
Economy Egypt’s pound hits new lows after shift to more flexible forex regime Egypt’s pound weakened by more than 13 percent to a new low below 32 to the US dollar on Wednesday as the central bank moved to a more flexible exchange rate under the terms of an International Monetary Fund (IMF) financial support package. The pound’s decline prompted speculation as to how far the currency might […] January 12, 2023
Banking & Finance Egypt commits to IMF to slow projects and increase fuel prices Egypt committed to a flexible currency, a greater role for the private sector and a range of monetary and fiscal reforms when it agreed to a $3 billion financial support package with the International Monetary Fund, according to an IMF staff report. In a letter of intent to the IMF dated November 30, the government […] January 11, 2023
Energy Egypt awards exploration rights for offshore blocks to ExxonMobil US oil and gas major ExxonMobil has obtained exploration rights to two offshore blocks in Egypt’s outer Nile Delta, Ahram Online reported, citing a company statement. The two blocks – Masry and Cairo – stretch over 11,000sq km, with exploration expected to start in 2023 after the government grants its final approval. “The addition of […] January 11, 2023
Banking & Finance Egypt orders ministries to curb spending amid forex crunch Egypt’s government has instructed ministries to cut non-essential spending until the end of the fiscal year in June as it tries to cope with continuing pressure on its currency and rising inflation. The decision, dated January 4 and published in the official gazette this week, includes the postponement of any new national project heavily reliant […] January 11, 2023
Energy Texan energy firm expands Egyptian oil and gas footprint Apex International Energy has announced the acquisition of interests in four additional concessions in Egypt’s oil-producing Western Desert region. Purchased from IEOC Production, a unit of Italian energy firm Eni, the new concessions will increase Apex’s production capabilities by 65 percent — up to 11,500 barrels per day. Apex, who are based in Houston, Texas, […] January 10, 2023
Economy Egypt’s inflation accelerates to 21.3% beating expectations Egyptian annual urban consumer inflation in December rose to 21.3 percent from 18.7 percent in November, exceeding analyst expectations, data from the statistics agency CAPMAS showed on Tuesday. The inflation figure was the highest since December 2017, when it hit 21.9 percent. The price rises followed a currency devaluation in October and continued restrictions on […] January 10, 2023
Banking & Finance Abu Dhabi Islamic Bank’s stake in ADIB Egypt reaches over 52% Abu Dhabi Islamic Bank (ADIB) has announced the increase of its ownership in ADIB Egypt to more than 52 percent, the UAE state-run WAM news agency reported. In a disclosure to the Abu Dhabi Securities Exchange, ADIB stated that it had acquired 9.6 million shares from National Investment Bank (NIB), representing 2.4 percent of ADIB […] January 8, 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
