Banking & Finance Egypt’s currency weakens further amid higher dollar demand Egypt’s currency weakened on Thursday by about 2.3 percent against the US dollar, though bankers said trading was thin and demand for dollars high following the third effective devaluation of the pound in less than a year. The Egyptian pound (EGP) closed at 27.11 per dollar, according to the central bank, after fluctuating more than […] January 6, 2023
Banking & Finance Egypt bonds jump after latest currency devaluation Egypt’s government bond prices jumped and Egyptian pound non-deliverable forwards (NDFs) climbed 5.5 percent to seven percent to 29.4-32.4 per dollar on Wednesday after the central bank devalued the currency for the third time in less than a year. Egypt’s central bank allowed the pound to weaken to 26.49 to the dollar earlier from about […] January 5, 2023
Economy Egypt private sector activity continues to shrink in December Activity in Egypt’s non-oil private sector contracted in December for the 25th straight month as inflation, a weaker currency and continued import controls dampened business, a survey showed on Wednesday. The S&P Global Egypt Purchasing Managers’ Index (PMI) rose to 47.2 in December from 45.4 in November, but was still below the 50.0 threshold that […] January 4, 2023
Energy Ducab powers giant wind farm as UAE-Egypt trade ties strengthen Ducab Group, one of the UAE’s largest manufacturers, is supplying 633km of cable to a new Egyptian wind farm in a move that reinforces the strong industrial partnership between the two countries. The Gulf of Suez project will play a key role in Egypt’s commitment to generate 42 percent of all electricity from renewable energy […] January 3, 2023
Exclusive Banking & Finance UK fintech Total Processing to expand to Saudi and Egypt Online payments firm Total Processing plans to start operating in Saudi Arabia by the middle of 2023 and then in Egypt, after achieving 30 percent month-on-month revenue growth since it launched in Dubai in 2021. The company, headquartered in the UK, has witnessed strong growth in the Mena e-payments sector as e-commerce booms and governments […] January 3, 2023
Banking & Finance Egyptian sovereign fund attracts investments worth $1.5bn The Sovereign Fund of Egypt has attracted 43 percent of total foreign direct investment, or EGP37 billion ($1.49 billion), since 2018, Ahram Online newspaper reported, citing a statement by Egyptian presidential spokesman Bassam Rady. The money has been invested in 14 projects across several economic sectors, including green hydrogen, water desalination and education. “This will […] January 2, 2023
Real Estate Egypt increases home loan repayment limit to 50% Egypt’s Financial Regulatory Authority (FRA) has increased the maximum installment limit for mortgage finance schemes up to 50 percent of the purchaser’s income, according to a local media report. Previously, the maximum limit was set at 40 percent. This aims to increase the number of beneficiaries from real estate financing, said FRA Chairman Mohamed Farid, […] January 1, 2023
Economy Egypt lifts import curbs, backs bigger private sector role Egypt has lifted a key restriction on imports and approved a list of economic activities the government would leave to the private sector, in an effort to meet two key conditions attached to the International Monetary Fund’s (IMF) $3 billion support package. In a statement, the central bank said it dropped a requirement for importers […] December 30, 2022
Banking & Finance Gold prices hit all-time high in Egypt as local currency weakens The price of gold in Egypt has risen to unprecedented highs as nervous savers seek refuge from a weakening currency and some companies export bullion to raise scarce dollars to fund imports, industry experts say. Figures from the Federation of Egyptian Chambers of Commerce’s (FEDCOC) gold division show the price of 21-carat gold surpassing EGP […] December 28, 2022
Agriculture Egypt plans to double exports to $100bn annually Egypt plans to double exports to $100 billion annually by rationalising imports and labor-intensive and strategic industries, Egypt Today newspaper reported. Agricultural exports reached six million tons in 2022, up 200,000 tons from last year. Among the top crops were citrus (1.7 million tons), potato (621,900 tons) and onion (510,552). Exports of frozen strawberries have […] December 28, 2022
Banking & Finance Saudi Arabia’s investments in Egypt hit over $6bn Saudi Arabia has invested $6.1 billion into 6,017 projects across Egypt, becoming the second largest investor in the country, local media reported. The kingdom’s investments cover various sectors, including industry, construction, tourism, agriculture, services, finance, communications and information technology, Arab News reported, citing Egypt’s minister of trade and industry Ahmed Samir. Bilateral trade exchange rose […] December 27, 2022
Banking & Finance World Bank approves $500m to expand social security in Egypt The World Bank’s executive board has approved $500 million in development financing for Egypt to expand its social safety net and protection programme in the face of global economic pressures filtering through to the country’s economy, the international cooperation minister said on Friday. The funds will support the government’s Takaful and Karama conditional and unconditional […] December 25, 2022
Economy Egypt’s central bank ups interest rates amid inflation worries Egypt’s central bank hiked overnight interest rates by a greater-than-expected 300 basis points (bps) on Thursday, warning that inflationary pressures were building. The rate hike may signal the central bank may be preparing for a further weakening of the currency. The bank’s Monetary Policy Committee (MPC) raised the deposit rate to 16.25 percent and its […] December 23, 2022
Food & Drink $5.5m initiative for food security in Mediterranean countries A new $5.5 million package of technical assistance to improve food security in Tunisia, Egypt, Jordan, Lebanon, Morocco and the West Bank and Gaza has been agreed by the European Bank for Reconstruction and Development and the Food and Agriculture Organisation of the United Nations. The joint initiative, which will be launched in January, is […] December 21, 2022
Economy Egyptian shops face shortages as government acts to tame prices Supplies of basic foods at Egyptian supermarkets have been squeezed and some stores are rationing products, with shopkeepers blaming an import slowdown and speculation by traders as prices rise. Headline inflation has surged to five-year highs of more than 18 percent in Egypt, spurring many shoppers to cut back on purchases or switch to cheaper […] December 21, 2022
Economy IMF looks for Egyptian currency flexibility after December-end The International Monetary Fund (IMF) will be watching for a shift by Egypt to a flexible exchange rate after a requirement to finance imports through letters of credit is phased out at the end of this month, a senior IMF official said on Monday. The IMF’s executive board on Friday approved a 46-month, $3 billion […] December 20, 2022
Analysis Sustainability Green deals jump as Middle East returns to pre-Covid levels Mergers and acquisitions activity in the Middle East has returned to pre-pandemic levels, with green deals on the increase. A Boston Consulting Group analysis shows the Middle East recording 283 deals valued at $23.8 billion in the first three quarters of 2022, an increase of 16 percent compared to the same period last year. The […] December 19, 2022
Energy Egypt discovers large gas field in east Mediterranean Egypt has discovered a large gas field in the Nargis block in the eastern Mediterranean, petroleum minister Tarek El Molla said. Evaluation is still ongoing to determine the field’s reserves, he said in a briefing to a parliamentary committee. Nargis is one of four offshore exploration blocks in which Chevron holds operating interests in Egypt […] December 19, 2022
Economy IMF approves $3bn financial support package for Egypt The International Monetary Fund (IMF) executive board has approved a 46-month $3 billion financial support package for Egypt, saying it will catalyse additional funding of about $14 billion, the fund said in a statement. The package, extended fund facility, includes a flexible exchange rate regime and enhanced social safety nets to protect the vulnerable, the […] December 18, 2022
Economy Egypt and Arab countries trade exchange hits $22bn The volume of trade exchange between Egypt and Arab countries reached $21.9 billion during the first nine months of 2022, compared to $18.4 billion in the previous year, Ahram Online newspaper reported, citing the Egyptian Central Agency for Public Mobilisation and Statistics. Egypt’s exports to Arab countries climbed to $8.8 billion during the period, up […] December 16, 2022