Al Ahly Pharos

Egypt and Turkey seek to boost trade from USD5 billion to USD15 billion over the next five years. The two countries signed 18 MoUs to strengthen cooperation on transport, energy, defense, education, tourism, health, culture, agriculture, and finance.The Central Bank of Egypt’s (CBE) Monetary Policy Committee is meeting later today to review interest rates. We remind you that we expect the CBE to keep the current rates on hold, with a potential rate cut in 4Q24, or - more conservatively - in 1...

Market Overview ETELDOMTOLFISUGRAMERPrepared by: Mayada Amin- CETA, CFTe

*Key news articles for today* BP plans to invest USD400 million during the current fiscal year to drill two new wells at the Raven natural gas field in its North Alexandria concession. The two wells will add a combined daily 400 million cubic feet of gas to its output. The ratio of external debt service to public revenues increased during the last fiscal year to 35% from 14.8% in FY22/23. External debt service represented 14.8% of total expenditures at the end of the last fiscal yea...

Market Overview JUFOFWRYALCNABUKOLFIprepared by: Mayada Amin - CETA, CFTe

*Key news articles for today* The headline PMI rose in August to 50.4, rising from 49.7 in July, to signal the first improvement in the health of the non-oil private sector since November 2020.The industry, transport, and investment ministries are mulling the creation of a freezone for African investors as part of the government’s long-term goal of increasing trade with the continent.The IMF revealed that Egypt aims to gradually reduce government guarantees in the coming period.Saudi Ara...

Market Overview ABUKJUFOSWDYprepared by: Mayada Amin - CETA, CFTe

UAE’s Masdar, Infinity Power, and Hassan Allam Utilities will set up USD900 million worth of solar power plants in Upper Egypt with a combined capacity of 1 GW after the government greenlit the move, according to media. Tunisian-owned oil and gas company HBS International plans to invest USD65 million in gas development and production in the southwest El Alamein area of the Western Desert this year.Tax revenues increased during the first two months of the current fiscal year by 25.6% y/y...

Market Overview ABUKEGCHSKPCORASMASRprepared by: Mayada Amin- CETA, CFTe

The MPC will meet on Thursday, 5 September, to decide on key interest rates. We expect the CBE to keep the current rates on hold in its upcoming meeting on 5 September, with a potential rate cut in 4Q24, or - more conservatively - in 1Q25.Net foreign asset surplus expanded 3.5% to USD13.3 billion in July, up from USD12.9 billion in June.The government has purchased a “large volume” of fresh oil hedging contracts, Prime Minister Madbouly said.The government has stocked up on strategic reserves...

Market Overview EFIHEMFDTMGHMASRprepared by: Mayada Amin - CETA, CFTe

Work is underway to make it possible for the government to commit to monthly payments to foreign companies working in the oil and gas sector, according to a cabinet statement, in a bid to boost investor appetite.The Finance Ministry will set up a central unit to facilitate customs and tax procedures for companies involved in automotive manufacturing under a decision issued by the Finance Minister.American power tool manufacturer Black+Decker is in talks with the General Authority for Investme...

Market Overview SWDY ESRSABUKGBCOEASTprepared by: Mayada Amin- CETA, CFTe

Head of the Trade Ministry's Commercial Representation Authority discussed potential investments in Egypt with representatives from major Indian companies.The IMF said that Egypt may abandon quarterly fuel price increases in exchange for a firm commitment to raise prices to levels “Cost recovery” by the end of the year.The Ministry of Finance is considering raising the zero bracket of income taxes for individuals to EGP45,000 annually instead of EGP40,000 currently.Prime Minister Moustafa Mad...

Market Overview BTFHGBCOETELTMGHATQAprepared by: Mayada Amin- CETA, CFTe

The International Monetary Fund is set to conduct the fourth review of our USD8 bn loan program by the end of September or in October at the latest.The state is reportedly studying a plan to provide EGP1.25k in cash assistance per family, while reducing the number of goods subsidized under the ration card system. The General Authority for Investment and Free Zones (GAFI) and representatives of all governorates are set to form a permanent joint committee to promote and facilitate investme...

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

A consortium of the UAE’s Al Shafar General Contracting (ASGC) Group and Saudi Egyptian Developers (SED) has backed out of an agreement to work on the USD5 billion redevelopment of the former National Democratic Party (NDP) headquarters in central Cairo due to increased construction costs following the EGP float.Alexandria Port Authority is gearing up to hand over three maritime terminals to local and foreign operators before the end of the year.The government has asked the Finance Ministry t...

Market Overview SKPCESRSFWRYprepared by: Mayada Amin- CETA, CFTe

The Cabinet approved presidential decrees regarding three financing agreements with the EU, which will see Egypt unlock over EUR1 billion in funding.The state aims to add 28 GW of renewable energy to the country’s energy mix over the next 5-7 years.The government plans to announce “revolutionary” tax reforms next month, Prime Minister said, adding that the reforms aim to meet investor demands and encourage exports.The Prime Minister ruled out fresh wage hikes with the anticipated social suppo...

Market Overview BINVORHDGBCOTMGHPHDCPrepared by: Mayada Amin - CETA, CFTe