LOCOMOTIVE-

#1- Egypt eyes USD 500 mn in railway projects in Iraq: State-owned Holding Company for Roads and Bridges is looking to secure USD 500 mn worth of railway projects with the Iraqi government as a part of Iraq’s plan to spend USD 100 bn on infrastructure over three years, two unnamed sources tell Asharq Business. The company has submitted technical and financial proposals for the projects, with negotiations ongoing and a final agreement expected by March 2025.

Remember: Iraq has been emerging as a prime destination for infrastructure investment of late, with a delegation from the Contractors Union visiting Baghdad last month to check out construction sector investment opportunities at the Iraq Investment Forum. A number of local players have made plans to enter the country, with Talaat Moustafa Group, Ora Developers, Elsewedy Electric and Algammal for Contracting among those getting ready to penetrate the Iraqi market.

#2- Italy’s Mermec could embark on a railway signalling and control systems factory: Transport and Industry Minister Kamel El Wazir called on Mermec to establish a factory to localize the production of signalling and control systems for railways, according to a ministry statement. The project aims to enhance railway safety and reduce the reliance on imported components, and eventually make Egypt a regional hub for railway parts and components.

We’re also getting new sleeper trains: The Egyptian National Railways also finalized an agreement with Spain’s high-speed train manufacturer Talgo to supply seven new luxury sleeper trains, following the recent delivery of six similar models. A EUR 200 mn loan to import sleeper trains from the company was given the presidential thumbs up in August after being passed by the House in June.

FINANCIAL SERVICES-

Fawry MSME facilitated some EGP 2 bn in payments: Fawry’s SME-focused subsidiary Fawry MSME has facilitated over EGP 2 bn in loan transactions over 750k transactions with its buy now, pay later overdraft feature — dubbed Al Nota — since the beginning of the year, according to a press release(pdf). Al Nota offers merchants a digital limit that can be used to finance working capital needs, “transforming bill payments and B2B transactions into short-term loans with maturities ranging from 3 to 15 days,” according to the statement.

ECONOMY-

Kuwait renewed a USD 2 bn Central Bank of Egypt deposit certificate due for repayment in April for another year, according to a report (pdf) from the central bank. The report, which shows the status of bank deposits through June 2024, does not clarify whether Kuwait’s other USD 2 bn tranche due for repayment in September was renewed or repaid.

Total long-term deposits fell to USD 9.3 bn, down from the USD 14.9 bn recorded at the end of June 2023 due to the UAE converting its deposits to help fund its Ras El Hekma mega project.

Remember:Unconfirmed reports in October suggested that the Gulf nation was mulling converting its USD 4 bn in deposits with the central bank into direct investments. The news followed Saudi Investment Minister Khalid Al Falih telling Prime Minister Moustafa Madbouly in August that the kingdom was looking to convert some of its USD 5.3 bn worth of deposits at the CBE into investments.

M&A-

Amoun for Real Estate and Tourism Development acquired a 30.7% stake in Atlas For Investment and Food Industries, purchasing 199.9 mn shares for EGP 155.9 mn at an average price of EGP 0.78 per share, according to a EGX disclosure (pdf). The Financial Regulatory Authority had previously extended the offer period to facilitate Amon’s bid for up to 65.59% of Atlas’s capital.

DIPLOMACY-

Foreign Minister Badr Abdelatty was in Port Sudan yesterday, becoming the first Egyptian foreign minister to visit the country since the civil war began in April 2023, according to a statement from the ministry. Abdelatty met with Sudan’s de-facto ruler Abdel Fattah Al Burhan and his Sudanese counterpart and reiterated calls for an immediate ceasefire, the ramping up of humanitarian aid, and safeguarding of shared water resources.

EXPANSION-

All roads lead to Riyadh: Five unnamed Egyptian engineering firms plan to establish factories in Saudi Arabia with total investments worth around SAR 500 mn, head of the Egyptian-Saudi Business Council’s industry committee, Mohamed Genedy, told Mubasher. The companies aim to use the investments to strengthen their presence in Gulf export markets

DEBT-

EBRD greenlights EUR 50 mn risk-sharing agreement with CIB for SME on-lending: The European Bank for Reconstruction and Development (EBRD) has given final approval for a risk-sharing facility with CIB to support SME lending in Egypt, CIB said in a statement. The EBRD will guarantee 50% of a EUR 50 mn loan portfolio, allowing CIB to expand its lending capacity to underserved SMEs over the next five years.

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