Al Ahly Pharos

The Finance Ministry is updating its tax policy framework so that it is more attractive to potential investors. The policy will be ready in 1Q 2025. The government expects its tax revenues to jump by around EGP 100 bn once the new policy is put in place, as a result of incorporating the informal economy and encouraging further investment.An international consortium has submitted a proposal to manage the Cairo International Financial Center (CIFC), an area of the new capital that will house fi...

Market overview ARCCCCAPBTFHHELIMFPCSKPCKABOPrepared By: Mayada Amin- CETA, CFTe

*Key news articles for today*Egypt’s external debt has decreased by 8.43% after hitting USD153.86 billion at the end of May 2024 compared to USD168.03 billion at the end of December 2023. This is mainly attributed to the waiver of UAE's deposits in the CBE, amounting to USD11 billion.Egypt's expected external debt obligations in May during the 12 months ending in May 2025 declined by about 16.7% to USD37.5 billion, compared to April's position at USD45 billion.Egypt’s foreign reserves can now...

Market Overview EKHOACIEBPrepared by: Mayada Amin - CETA, CFTe

The IMF Executive Board has added the third review of Egypt's USD8 billion loan program — set for 29 July — back to its calendar.Egypt paid USD3 billion to the IMF in 1H2024 and intends to pay another USD257 million until the end of July.It is possible there were some malfunctions or increased pressure on the electricity grid due to the continued heatwave, which may have led to power cuts, Electricity Ministry spokesman said, as blackouts continue despite the promise of pause.COMI (FV: EGP100...

Market Overview BTFHCICHHELIABUKMFPCACAMDprepared by: Mayada Amin- CETA, CFTe

The CBE's Monetary Policy Committee decided to maintain the overnight deposit rate, overnight lending rate, and the rate of the main operation steady at 27.25%, 28.25%, and 27.75%, respectively. The MPC attributed the decision to the decline of the inflationary pressures.The Suez Canal Economic Zone (SCZone) saw its revenues grow 36% y-o-y to hit a record EGP8.3 billion during the fiscal year 2023-2024.Suez Canal revenues recorded USD315 million in June, dropping by 63% YoY, due to less traff...

Market Overview ORWEORASEASTFWRY KABO ORHDPrepared by: Mayada Amin - CETA, CFTe

We published yesterday our earnings expectations sheet for companies under coverage in 2Q24/FY24: 1) In 2Q24, aggregated net profit is expected to increase 61% YoY and decrease 19% QoQ, 2) In FY24, aggregated net profit is expected to increase 38% YoY, 3) Stocks that are expected to witness a shift from net loss to net profit YoY in 2Q24: OIH, AMOC, CCAP, EGAL, MCQE, 4) Stocks that are expected to witness a shift from net loss to net profit YoY in FY24: ESRS, 5) Stocks that are expected to wi...

Market Overview GBCOAMERARVATMGHPHARAMOCCSAGOLFIFWRY prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today*The MPC will meet tomorrow to decide on key interested rates. In general, we believe the inflation outlook underscores a disinflation view that supports easing to kick off by 2024-end, or – more conservatively – by 1Q2025. We believe the CBE might prefer to keep rates unchanged in its upcoming meeting tomorrow. The IMF has revised down its projection for Egypt’s real GDP growth by 0.3% in FY2023/2024 and the current FY2024/2025 to 2.7% and 4.1% percent,...

Market Overview ALCNAMERISMQOFHORWEFWRY prepared by: Mayada Amin- CETA, CFTe

The IMF is in discussions with the new cabinet over its policy and goals for the coming three years, these talks should wrap up next week. The Oil Ministry is set to receive two LNG shipments within the coming ten days.Suez Canal revenues fell 23% y-o-y during the fiscal year 2023-2024 to record USD7.2 bn.Egypt and Saudi Arabia have completed 60% of the electrical interconnection project between the two countries, and the first phase of operation is scheduled to begin in July 2025, at a ...

Market Overview ETELISPHAMOCKZPCCLHORACCCIRAPrepared by: Mayada Amin - CETA, CFTe

The Oil Ministry is studying the possibility of leasing another floating storage regasification unit (FSRU) in Ain Sokhna to meet the need for additional quantities of natural gas.The Oil Ministry aims to drill 110 exploratory wells for gas and oil, with a total investment of USD1.2 billion during FY 2024/25. It is also planning to drill 586 exploratory wells for gas and oil, with a total investment of USD7.2 billion until 2030.EGPC contracted to import fuel shipments of diesel and butane in ...

Market Overview COMICCAPPHAREASTMICHEKHOprepared by: Mayada Amin- CETA, CFTe

Annual urban inflation cooled for the fourth consecutive month, registering 27.5% YoY in June, down from 28.1% YoY in May.The new government explained detailed plans for its three-year term. Goals include:Private investments to make up 51% of total investments in Egypt by the fiscal year 2026-2027 and 70% by 2030. Cabinet aims to reduce the unemployment rate to 6.5% by FY2026-27 and to 6.1% by 2030.Cabinet has revised downwards its tourism target and now expects to welcome 25 million tou...

Market Overview BTFHFWRY EFIHORWEprepared by: Mayada Amin- CETA, CFTe

The IMF's board will meet to discuss the staff-level agreement-approved third review of Egypt's USD 8 bn loan program on 29 July, after initially being penciled in for today. An anonymous senior government official said that the delay stems from Egypt “not meeting some conditions.” However, the source clarified that these were “simple procedures by the Fund that will be clarified soon.The Chairman of the General Investment Authority, revealed that Egypt aims to attract USD20 billion in privat...

Market Overview DOMTEFIHGBCOORHDPRCLTMGHPrepared by: Mayada Amin- CETA, CFTe