Gov’t sells 10% stake in Telecom Egypt

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What We're Tracking Today

Egypt’s privatization program is up and running

Good morning ladies and gents-

We bring you good news to kick off the week: The privatization program is officially up and running after the government successfully sold down 10% of its stake in Telecom Egypt, raising almost EGP 4 bn (c. USD 129 mn) in the process.

Don’t dwell on the figure:Small potatoes it may be, considering the government’s ambitious end-of-June target of USD 2 bn: the key here is the signal it sends to the market following a string of negative pronouncements by the big three rating agencies: We mean business. Let’s hope this is the opening salvo of a string of transactions in the coming weeks that can bring in the FX we need to stabilize the exchange rate and begin restoring market confidence in the reform agenda.

The Enterprise Exports and FDI Forum istaking place tomorrow at the Four Seasons Nile Plaza. The event will see CEOs, top execs, bankers, and development finance folks attempt to solve the biggest economic issue of our time: How do we get out of our FX crunch by boosting exports and raising foreign direct investment.

We are very grateful for the interest we’ve seen from many of you and we cannot wait to meet those attending.

The event kicks off with an 8am networking breakfast, with the opening panels starting at 9am.

Who can you expect to see there? Our friend Omar Elsahy, general manager of Amazon Egypt: As local GM of the largest e-commerce giant in the world, Omar Elsahy is going to be speaking on how Amazon Egypt works with local vendors to keep the Egyptian node of its supply chain flowing. He will be joined on stage for that discussion by Tarek Kamel, CEO of Nestlé, and Khaled Morsy, CEO at DB Schenker Egypt to discuss what multinationals are looking for in a local partner, product or service and what are some of the pain points they’ve had to deal with in sourcing them.

More speakers to come: Among the CEOs, top execs, bankers, and development finance folks speaking at the conference are (in no particular order): Mohamed Talaat Khalifa, CEO of Concrete; Hossam Abou Moussa, partner at Apis; Hassan Massoud, associate director and head of private equity (Southern Mediterranean) at EBRD; Shady William, managing director of IDG; Tarek Hosny, head of investments and projects at Fertiglobe; Mark Wyllie, CEO of Beyti; Kareem Abou Ghali, chairman and CEO of Pasta Regina; Hossam Sallab, CEO and vice-chairman of Sallab Group and Royal Ceramica; Nada El Ahwal, CSO of Transmar; Yasmine Khamis, chair of The Orientals Group; Helmy Ghazi, deputy CEO of HSBC Egypt; Cheick-Oumar Sylla, director for North Africa and Horn of Africa at IFC; Shams Eweis, corporate affairs manager, Egypt, North Africa and Levant at Mars; Nadia El-Tawil, investment officer at AfricInvest; Mostafa Bedair, CEO of Giza Seeds and Herbs; Abdallah Sallam, CEO of Madinet Masr; Yassir Zouaoui, partner at McKinsey; and Mohamed ElGebely, team leader at USAID Trade.

Topics and live interviews will also include:

Why exports and FDI are the way forward and what lessons have worked from around the world;
How to attract foreign partners and figure out what they are looking for;
What lessons can we draw from food, fertilizers, and garments exporters who have increased our exports;
What are the fundamentals to creating an export and / or FDI strategy;
How industrial clusters could expedite exports and FDI and is a possibly avenue for SME development;
How Egypt’s industries need to be open to evolution to become more competitive.

Tap or click here to explore the full agenda.

** Attendees who have confirmed and RSVP'd to their personal invitations do not need a QR code to enter the venue, but please do bring a business card you can give us in exchange for your name tag and lanyard.

PSA- Going to Saudi Arabia? You won’t need a stamped visa anymore: Saudi Arabia has replaced the good old stamped visa with an e-visa with a QR code, according to the Saudi Press Agency. The new e-visa, a part of the kingdom’s digitization plan for its consular services, applies to Egypt and other six countries

WATCH THESE SPACES-

#1- Cabinet wants to test out WFH: The Madbouly government has approved a proposal to test out remote work for a number of administrative employees during its meeting last week. For the next six months, a number of those working for the Communications Ministry and the Central Agency for Organization and Administration.will go remote and the results of their WFH trial will then be presented to the cabinet for consideration.

#2- The Black Sea grain pact may not be dead after all: Ukraine, Russia, Turkey and the UN are close to an agreement to extend last year’s grain agreement, which allowed Ukraine to continue exporting via the Black Sea and helped calm the food crisis caused by the war, Reuters reported yesterday.

HAPPENING TODAY-

The National Dialogue kicks off: After months of preparation, the National Dialogue sessions start today, with four three-hour sessions starting 11am and ending at 6pm. Two of today’s sessions will focus on the electoral system, while the other two will discuss discrimination, according to the dialogue’s published schedule. All sessions will be shared on the dialogue’s Facebookand Youtubeaccounts.

Car import scheme draws to a close: It’s the last day to sign up for the expat carimport initiative. Expats who still wish to apply must begin transferring the required amount to Finance Ministry's account at the National Bank of Egypt today, FinMin said in a statement over the weekend, explaining that it will be looking at the date on which applicants requested the transfer rather than the date on which the transfer arrives — even if the application is subject to an import approval by the Customs Authority.

Gold prices to make it to EGX’s trading screens: The EGX will start sharing spot prices for gold on its trading screens from today, Asharq Business reported Saturday, citing two unnamed sources.

HAPPENING THIS WEEK-

G7 meeting this week: Expect the war in Ukraine and China containment to be top of the agenda when G7 leaders meet in Hiroshima, Japan on 19-21 May.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

Leading the global front pages this morning: An election contest that could have a big impact on the region. Recep Tayyip Erdogan’s 11-year stint as Turkey’s president will be on the ballot today as the country’s presidential elections take place. Social democratic opposition figure Kemal Kilicdaroglu is the main challenger to Erdogan, and his chances of ending his presidency were improved last week when a third candidate, Muharrem Ince, was forced to withdraw following bribery allegations. (Reuters | Bloomberg | Financial Times | NYT | CNBC)

The elections come at a key moment for Egypt-Turkey relations: The two rivals have made serious efforts to de-escalate tensions in recent weeks, with the countries’ top diplomats holding several rounds of face-to-face talks to lay the groundwork for the reestablishment of diplomatic ties. Both countries have signaled that El Sisi and Erdogan — if he wins today’s vote — could meet for talks for the first time since El Sisi came to power in 2013.

MARKET WATCH-

No more OPEC+ production cuts? That’s what was suggested by Iraq’s oil minister over the weekend, who told Reuters that “there will be no additional reduction” in an interview with Reuters. Hayan Abdel Ghani’s are the first by an OPEC minister ahead of next month’s meeting, which will be the first since the group of oil producers took the surprise decision to cut output by 1.2 mn barrels a day. OPEC+ will meet on 3-4 June.

COME WORK FOR OUR ADVISORY ARM-Enterprise Advisory (formerly known as Inktank Communications) is looking for smart, talented people to help us tell the stories of exciting companies. Enterprise Advisory is the region’s leading investor relations advisory company and works on investor and strategic communications issues that take you deep inside the c-suite. Our clients are in Egypt, Saudi Arabia, the UAE and beyond. Egyptian and foreign nationals alike are welcome to apply.

We’re running a four-month training program for fresh grads and career switchers and will hire every successful grad of the program.

The TriFactory's Somabay Endurance Festival returns for the fifth time from 25-27 May,bringing together Egypt's multi-sport community for an amazing weekend filled with swimming, cycling, and running throughout the beautiful scenery of Somabay. Select from six different races, Sign up now, and get ready to Experience Endurance.

Egypt sells 10% stake in state-owned telecom giant

The government has offered a 10% stake in Telecom Egypt (TE) through the Egyptian Exchange (EGX), a source close to the transaction confirmed to Enterprise yesterday. The transaction is set to be executed in today’s trading session, according to local media reports.

Strong demand — and no discount: The government is said to have offered some 170.7 mn shares for EGP 23.11 a piece — the same price at which TE’s share price closed on Thursday. The sale was some 2.5x oversubscribed, according to local press reports. Bloomberg had reported last week that the shares would be sold at EGP 22.25 apiece — around a 4% discount to where shares were trading last week. If the reported figures are correct, the transaction will raise EGP 3.95 bn (c.USD 129 mn) for the government and value TE at around EGP 39.5 bn.

The sale sends a signal to investors — and the IMF: This is the first significant stake sale we’ve seen since the government announced its revamped privatization program in February (the sale of paintmaker Pachin earlier this month was for a more modest EGP 770.5 mn). The TE transaction should help build confidence among investors amid concerns that we haven’t been making enough headway on the program, which is key to progressing the USD 3 bn assistance package with the IMF and securing USD bns more in foreign investment to plug our external financing gap.

But there’s a long way to go: The money raised from the TE and Pachin sales is a mere 8% of the USD 2 bn the government wants to raise via asset sales by the end of the fiscal year in seven weeks time.

Who bought in? Some 95% of the shares were earmarked for institutional investors, with the rest allocated for employee stock options, Asharq Business reported Thursday. Bids mostly came from local rather than foreign investors, it adds. The government is reducing its stake in the telecom giant to 70% from 80% through the sale, with the remainder in freefloat.

Advisors: Our friends at CI Capital are reportedly managing the transaction alongside Al Ahly Pharos, while NBE is also said to be involved as an advisor.

Up next: Military-owned bottled drinks firm Safi and fuel retailer Wataniya are set to start receiving offers from strategic investors this month, and the government is finalizing a number of other unspecified transactions, cabinet said last week.

Central Bank of Egypt to keep rates unchanged on slower April inflation -poll

The Central Bank of Egypt (CBE) will keep interest rates unchanged when it meets on Thursday after inflation came in slightly lower in April, according to our interest rate poll. Seven of the nine analysts we surveyed see the CBE holding rates steady. The other two expect policymakers to raise rates, with one penciling in a 100-bps hike across the bank’s next two meetings and the other penciling in a 200-bps hike this week alone.

Where we stand: The overnight deposit rate stands at 18.25% while the overnight lending rate is 19.25% and the main operation and disc. rates are at 18.75%. The central bank has hiked rates by 1k bps since March 2022.

Breathing room: April’s cooler inflation reading of 30.6% is expected to give the central bank the chance to keep rates on hold at its next meeting and assess the impact of the jumbo 200-bps hike it made in March, according to most of the analysts we polled. Higher rates would also increase the cost of public borrowing — a burden that could instead be pushed back into next fiscal year, economist Mona Bedair said.

Or not: “We expect that the Central Bank of Egypt will continue its monetary tightening cycle and hike interest rates by a further 200 bps,” Capital Economics wrote in a note last week. CI Capital also joins the contrarian’s table, penciling in “an additional 100-bps hike in any of the coming two MPC meetings.”

Further devaluation could trigger a rate hike: “Pressure is building for another sharp fall in the currency,” Capital Economics wrote. Economist Hany Genena agrees, saying the central bank could be forced to raise rates by at least 200 bps on Thursday if there is an EGP devaluation in the days before the meeting. That said, BNP Paribas and Citigroup last week both said they think the chance of another devaluation before the end of June is slim — read more in our Economy section, below.

REMEMBER- April’s inflation reading likely marks only a temporary reprieve. Price hikes eased for the first time in 10 months in April — but recent decisions to hike the prices of diesel and subsidized commodities sold to ration card holders, the threat of further currency depreciation, and seasonal factors including the upcoming Eid mean most analysts expect it to accelerate again in the coming months.

It could take more than rate hikes to bring down inflation: “For the local interest rate tool to succeed, external factors such as the exchange rate and the implications of the war in Ukraine have to be resolved first,” banking expert Mohamed Abdelaal told us. His comment echoes recent statements by CBE Governor Hassan Abdalla, who last month expressed doubts on the effectiveness of monetary policy to curb inflation due to the supply-side factors influencing local prices.

Looking longer term: Interest rates could rise by another 50 bps to 19.75% by the end of this fiscal year in June before falling back to 18.25% by end-FY 2023-2024 and 13.75% by end-FY 2024-2025, per the median forecast in an April poll conducted by Reuters. The CBE is targeting inflation of 7% (± 2%) through 4Q 2024 and wants to bring inflation down to 5% (± 2 percentage points) by 4Q 2026.

USD-EGP rate likely to hold steady through FY 2022-23, say BNP Paribas, Citigroup

We’re unlikely to see another steep devaluation of the EGP before the end of this fiscal year in June, BNP Paribas and Citigroup analysts wrote in research notes last week. Analysts at both banks say the USD-EGP rate will likely remain unchanged over the next six weeks as policymakers look to keep borrowing costs and inflation in check while we wait to secure more FX from abroad.

REMEMBER- The USD-EGP exchange rate has remained unchanged at 30.96 since mid-March following three devaluations that have caused the EGP to almost halve in value against the greenback.

FX first, deval second: “Egypt may now be looking to allow a gradual EGP depreciation after it secures foreign investment flows and the second IMF tranche — to mitigate the risk of a disorderly exchange rate correction,” wrote Mohamed Abdelmeguid, BNP Paribas’ senior MENA economist. The bank had previously expected the EGP to fall to 34.00 against the greenback by the end of June. The CBE might also hold out for “bumper tourism” revenues of about USD 14 bn before opting for an FX adjustment, Bloomberg cites Citigroup as saying in its note.

No deval needed to unblock Gulf investment? BNP Paribas no longer sees another devaluation as “a strict condition” to unlock FX inflows from the Gulf. The successful saleof state-owned Paint and Chemical Industries (Pachin) to Dubai-based National Paints Holding (NPH) earlier this month “suggests that earnings and exports potential of Egyptian companies is enticing to some buyers — with or without a devaluation,” according to Abdelmeguid.

The threat of a ratings downgrade could be at play: A further depreciation could push up the government’s debt bill, leading Moody’s to act on its threat last week to downgrade our sovereign credit rating, Abdelmeguid wrote. Higher borrowing costs would also make it more difficult for the government to hit its 6.4%target for the budget deficit this fiscal year, Citigroup noted. BNP Paribas also thinks that a sharp narrowing of the current account deficit in 1Q FY 2022-2023 — thanks in part to a lower imports bill — makes a further devaluation less urgent.

Traders agree: The EGP has in recent weeks been regaining value against the USD in the one-month non-deliverable forwards (NDFs) market, suggesting traders are pulling back from wagers of another devaluation in the short term, according to Bloomberg. One-month NDFs had the USD-EGP rate at around 32.90 on Thursday, from a record high of 35.30 on 25 April.

As do local bankers: BNP Paribas “gauged a broad agreement amongst the major [Egyptian] banks that the central bank is likely to hold off from another devaluation until after sufficient inflows from the GCC are secured,” Abdelmeguid wrote.

A delay, not a halt: Twelve-month NDF contracts have climbed to 43.30, suggesting investors think the EGP still has a long way to fall against the USD over the next year. Moving to a flexible FX rate is a key condition of our USD 3 bn loan agreement with the IMF, and a senior Fund official said earlier this month that they believe the country is “serious”about making that shift.

War in Sudan to raise economic pressure on Egypt, says US

More price hikes ahead thanks to crisis in Sudan: The ongoing war in Sudan could place further pressure on the Egyptian economy, according to the US Department of Agriculture (USDA), which expects the resulting trade disruption to hit exports and fuel further inflation. “The Sudan conflict has created a supply shortage in Egypt, causing food prices to soar,” it wrote in a short report (pdf) on Wednesday, noting the particular impact on domestic beef prices.

Remember: Food price inflation in Egypt has hit record highs this year as the impact of three large devaluations and higher fuel prices cause inflation to accelerate throughout the economy. A kilo of beef has roughly doubled from a year ago, jumping from EGP 150-200 to EGP 350-400, according to the report.

Sudan is a major exporter of livestock and agricultural products: Egypt imported some 110k live animals and 10k tons of beef from Sudan last year. The war has forced Egypt to look for other suppliers in Chad and Somalia to maintain supplies, the USDA said. The government turned to Chad for beef supplies earlier this year as it looked to increase imports and get prices under control.

It’s also one of our biggest African export markets: The war is likely to deal a blow to Egypt’s exports to Sudan, which has been one of the country’s biggest export markets on the continent. Trade and Industry Ministry figures show that Sudan was the second-largest buyer of Egyptian goods in Africa during 1Q 2023. In 2022, Egypt exported USD 929 mn of goods to Sudan, according to the USDA.

And a key trade hub: Egyptian exports to other African countries could be disrupted by the conflict due to Sudan’s position as a major trans-shipment point, the USDA notes.

The US spots an opening: “Opportunities for US chicken leg quarters continue to grow, as the [Egyptian government] and Egyptian military seek more affordable sources of protein for their citizens in the face of a depreciating currency and related economic hardship,” the report said.

Sudan army, RSF sign pact to protect civilians. PLUS: Egypt brokers ceasefire in Gaza

Sudan army, RSF sign agreement to protect civilians as fighting continues: The Sudanese army and the rival paramilitary group the Rapid Support Forces (RSF) signed an agreement on Thursday to protect civilians and allow in humanitarian aid. The pact was the result of a week of peace talks in Jeddah mediated by Saudi Arabia and the US, and is hoped to lay the groundwork for a ceasefire agreement in the coming days.

Thumbs up from Egypt: Egypt’s Foreign Ministry welcomed the agreement, expressing hope that it will pave the way for the two sides to reach a permanent ceasefire.

Accusations continued: The army and the RSF continued to accuse each other of targeting civilians in statements after signing the agreement.

Talks to continue today: Sudan’s factions will return to the negotiating table today under Saudi and US-sponsored mediation, a senior Saudi diplomat told Reuters. Representatives from the two sides are remaining in the Saudi city to begin the next stage of negotiations, they said. Diplomatic sources last week expressed hope that a permanent ceasefire will soon be signed.

The fighting continues: Khartoum was hit by fresh airstrikes and artillery bombardment on Friday, reported Reuters.

Refugee count: Almost 200k people have fled Sudan and sought refuge in neighboring countries since the start of the war, reported the UN refugee agency. As of Friday, an estimated 153.2k people, including 143.7k Sudanese refugees and 9.5k foreigners, have fled Sudan, with around 81k of them arriving in Egypt, according to UN data.

Support from the EU: The EU has allocated EUR 200k to the Egyptian Red Crescent to assist refugees who have arrived in Egypt from Sudan, it said Wednesday.

Attention Egyptian university students: Students transferring from universities in Sudan, Ukraine, and Russia, can now register to resume their education in Egyptian universities, the Higher Education Ministry said Saturday.

CEASEFIRE IN GAZA-

Israel, Islamic Jihad agree to ceasefire: Palestinian militant group Islamic Jihad and Israel yesterday agreed to an Egypt-mediated ceasefire, bringing five days of violence between the two sides to an end, ِAl Qahera News (watch, runtime: 0:31) reported yesterday. Israeli airstrikes and cross-border rocket fire from the strip ended when the truce came into effect at 10 pm CLT.

Violence has been ongoing since Tuesday when the Israeli military assassinated three senior commanders of Islamic Jihad ini targeted airstrikes. The five days of fighting saw at least 10 civilians killed in Gaza and two people die in Israel, according to Reuters.

Egypt’s talking heads comment on Telecom Egypt stake sale, falling gold prices and Gaza ceasefire

The economy dominated the airwaves last night in the wake of the Telecom Egypt stake sale and the introduction of new measures aimed at curbing soaring local gold prices.

The reaction to the Telecom Egypt sale: Kelma Akhira’s Lamees El Hadidi was the only one to cover the successful sale of a 10% stake in Telecom Egypt (TE) to investors, bringing on former EGX board member Ihab Said to discuss what it means for the government’s privatization efforts (watch, runtime: 8:54). The sale will be conducted in EGP, meaning that no new FX will enter the country should the buyers be local, he pointed out. We have the full details in this morning’s Privatization Watch, above.

Talks over the sale of TE’s 45% stake in Vodafone Egypt are still happening, Said said, adding that they were stalleddue to disagreement over the stake sold. “I expect, over the coming period, that we see this sale happening,” he added. TE’s stake in Vodafone Egypt has received interest from the Qatari and Abu Dhabiwealth funds.

Peace in Gaza?Israel and Islamic Jihad agreed to an Egypt-mediated ceasefire yesterday, putting an end to days of violence. Palestine’s factions will respect the ceasefire, Emad Gad, deputy director of Al Ahram Center for Political and Strategic Studies, told El Hekaya (watch, runtime: 12:35). The two sides had no choice but to accept Egypt’s mediation of the situation because the Biden administration was not going to step in, he added. Kelma Akhira also covered the news (watch, runtime: 2:54).

Gold prices drop: Local gold prices have dipped following the decision last week to allow people to bring gold into the country without paying customs. The price of 21-carat gold has fallen around 8% since Wednesday to EGP 2,350 per gram. “Gold prices have dropped after people started feeling like there is a sufficient supply in the market,” Hani Milad, head of Federation of Egyptian Chambers of Commerce’s (Fedcoc) gold and jewelry division, told Al Hayah Al Youm (watch, runtime: 5:29). “We will start to see an abundance of gold in the market which will help local gold prices match international prices,” he added

More about the decision: It applies to both Egyptians and foreigners entering the country, Assistant Supply Minister Ibrahim Ashmawy told Kelma Akhira (watch, runtime: 4:24| 2:05 | 2:06). He explained that the decision doesn’t have any regulations yet but the government has learnt from previous experiences — such as the car import scheme — not to overcomplicate the rules. El Hekaya (watch, runtime: 3:14) and Masa’a DMC (watch, runtime: 5:00) also dedicated some airtime to gold prices.

FACT CHECK- Food subsidies aren’t going anywhere: The Madbouly government will not be replacing food subsidies with cash handouts, cabinet said yesterday after local media misinterpreted comments made by ITDA head Ibrahim Ashmawy. “Transitioning from ration cards to cash handouts is not supported at the moment due to ongoing economic conditions, price hikes, and inflation,” Ashmawy told Kelma Akhira’s El Hadidi (watch, runtime: 3:42 | 3:29), adding that ration cards have become part of Egyptian culture that all point against that move.

Ashmawy defends recent price hikes: “Price adjustments are always happening in response to inflation and global price changes — wheat, oil, sugar,” he said. The Supply Ministry raised the prices of almost all subsidized commodities sold to ration card holders earlier this month and indicated it would make further incremental price hikes. “These are all tiny increases that don't match up with inflation levels,” he added.

Also on the airwaves:

Khufu is closed for renovation: Former Antiquities Minister Zahi Hawass appeared on Kelma Akhira to discuss the two-month closure of the Pyramid of Khufu among other topics (watch, runtime: 0:57).
Moussa and El Wazir hit the streets: Transport Minister Kamel El Wazir joined Ala Mas’ouleety’s Ahmed Moussa yesterday (watch, runtime: 11:10) to discuss all things transport and talk to members of the public about the government’s rail infrastructure projects.

Egypt’s economic troubles is getting more attention overseas

It’s a mixed morning in the foreign press as far as Egypt is concerned, with more stories on our economic troubles and the annoying balancing act between our relations with the US and Russia surfacing over the weekend.

Egypt + Tunisia’s debt problems are escalating: Analysts and investors warn about the looming debt crisis facingEgypt and Tunisia, posing tough choices to their Arab Gulf neighbors and investors, due to fiscal deficits, high public sector wage bills, and shortages of FX and essential commodities. (Reuters)
Presidential hopeful returns to Egypt:Ahmed Al Tantawy — a former leftist MP who plans to run in next year’s presidential election —said Thursday he has returned to Egypt after a nine-month absence, a week after claiming that two of his uncles had been detained by authorities. (Associated Press)
Vatican recognizes Egyptian Copts as martyrs: Pope Francis has honored the 20 Egyptian Copts and one Ghanaian who were murdered by the Islamic State in Libya in 2015 by recognizing them as martyrs. (Reuters)

Ashok Leyland in talks with Egyptian government to partner on EVs

AUTOMOTIVE-

El Nasr potentially has a new suitor on EVs:Ashok Leyland, a subsidiary of Indian conglomerate HindujaGroup, could partner with state-owned firm El Nasr Automotive to form a joint venture for locally-made electric vehicles, according to the Public Enterprises Ministry, which recently met with the firm to discuss the project. Local media last month reported that El Nasr was in talks with unnamed Indian and Chinese firms to partner on the project. The government has been searching for a replacement partner since talks with Chinese firm Dongfeng fell through in 2021.

TRANSPORT-

Saudi’s Al Gihaz to acquire non-operational marine units + Saudi subsidiary owned by Maridive: Maridive & Oil Services’ board of directors approved last week Saudi conglomerate Al Gihaz Holding’s bid to acquire two non-operational marine units and a dormant Saudi unit owned by its subsidiary, Valentine Maritime, for a total of USD 115.6 mn to settle the group’s bank debt and trade liabilities, Maridive said in an EGX disclosure (pdf). The transaction is within Maridive’s strategy to deleverage its balance sheet and divest its non-core offshore EPC unit. There will be no net proceeds for Maridive as part of the agreement.

REMEMBER- Maridive in November was mulling two separate bids from Al Gihaz Holding and Abu Dhabi’s Ancla Marine Ship Management to acquire Valentine Maritime, which specializes in oil rig and chartering services and currently operates in India and the Gulf.

TOURISM-

From Sphinx International to Italy: Hungarian budget airline Wizz Air will start operating four weekly flights from Sphinx Airport to several cities in Italy — Rome, Milan and Venice — starting from the middle of June, Al Mal reports, citing head of the Egyptian Airports Company Ahmed Mansour.

INFRASTRUCTURE-

The Damietta Port Authority is looking to cooperate with private sector players to establish a new 5k sqm container terminal for dry bulk cargo, Al Borsa reported. The winning bidder will be responsible for constructing, operating and maintaining the terminal for three years, according to the newspaper.

MANUFACTURING-

Public-private silicon partnership: State-owned oil and metals companies have formed a silicon manufacturing JV with private sector players Libra Capital, a subsidiary of Enara Group, and Central Desert Mining Company, according to an Oil Ministry statement. El Alamein Silicon Products Company will build a USD 172 mn factory that is set to produce silicon metal, polysilicon and silicon derivatives.

ADES International, Aramco Trading reportedly push Saudi IPOs

Is the Gulf IPO boom running out of steam? Two IPO prospects for the Saudi stock exchange are delaying their plans, Bloomberg reported last week:

#1- ADES: Regional oil and gas services company ADES International has pushed its IPO to the second half of the year, the news outlet reported, citing people familiar with the matter. The Public Investment Fund-backed firm was planning to begin assessing investor demand in March but has chosen to delay the process, the people said, adding that the company wants to time the sale right. The company — which started life in Egypt and is currently the country’s largest offshore driller — hopes to raise USD 1 bn from the sale. The PIF helped take ADES private in 2021 in a transaction that valued it at USD 516 mn.

#2- Aramco Trading:Saudi Aramco’s energy trading business likely won’t be going public until next year after the company postponed the IPO due to market conditions, according to Bloomberg, which cites informed sources. Valuing the firm at more than USD 30 bn, the IPO was expected to be one of the world’s largest this year, and the company now has doubts about whether it is possible to go ahead with a listing of this size during current conditions, according to the news outlet’s sources.

What’s going on? The decline in oil prices is sucking the momentum out of the boom in listings seen in the Gulf last year. The Tadawul is down 16% from its high last year as fears of recession hit oil prices. As a result, money raised from IPOs in the Gulf is down almost 70% from the same period last year, according to Bloomberg data, while the USD 72 mn raised in Saudi Arabia is the lowest year-to-date total since 2014.

ALSO WORTH NOTING:

The Middle East’s second SPAC could be in the works:MEASA Partners, an investment company backed by Abu Dhabi’s Al Maskari family, is reportedly planning to launch this year the Middle East’s second SPAC listing, the first since ADQ and Chimera Investments’ blank-check firm went public in April 2022, sources familiar with the matter told Bloomberg.
Twitter has a new CEO: Elon Musk has appointed advertising veteran Linda Yaccarino as Twitter’s new CEO, removing himself from the position he gave himself following his USD 44 bn takeover of the company last year. (Elon Musk)
UK interest rates at 15-year high: The Bank of England on Thursday raised its main interest rate by 25 bps to 4.5%, its highest level since late 2008. (Bank of England)
PwC on firefighting mission amid Aussie tax scandal: Global execs PwC flew to Sydney last week after it emerged the Big Four firm had provided tax avoidance advice to clients using secret government tax plans. (FT)
Binance bails on Canada: Binance, the world’s largest crypto trading platform, on Friday announced its plans to shut down its operations in Canada as the country tightens regulations on the industry. (Binance)

EGX30	17,271	-1.3% (YTD: +18.3%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,393	+0.9% (YTD: +8.7%)
ADX	9,635	-0.4% (YTD: -5.6%)
DFM	3,559	-0.3% (YTD: +6.7%)
S&P 500	4,124	-0.2% (YTD: +7.4%)
FTSE 100	7,755	+0.3% (YTD: +4.1%)
Euro Stoxx 50	4,318	+0.2% (YTD: +13.8%)
Brent crude	USD 74.17	-1.1%
Natural gas (Nymex)	USD 2.27	+3.5%
Gold	USD 2,019.80	0.0%
BTC	USD 26,921	+1.8% (YTD: +62.3%)

THE CLOSING BELL-

The EGX30 fell 1.3% at Thursday’s close on turnover of EGP 2.11 bn. Foreign investors were net sellers. The index is up 18.3% YTD.

In the green: Cleopatra Hospitals (+4.3%), Credit Agricole Egypt (+2.8%) and Rameda Pharma (+2.3%).

In the red: E-finance (-2.9%), Sidi Kerir Petrochemicals (-1.1%) and Elsewedy Electric (-2.3%).

Egypt, Oman to sign double taxation agreement this month

Another regional double taxation agreement in the works: Egypt and Oman will this month sign an agreement in Cairo to eliminate double taxation, Finance Minister Mohamed Maait agreed with his Omani counterpart Sultan bin Salim Al Habsi on Friday, according to the Finance Ministry. This came on the sidelines of the Islamic Development Bank Group annual meetings in Jeddah over the weekend. The news comes days after cabinet greenlit a similar agreement signed with Qatar in February.

ALSO ON THE SIDELINES OF THE ISDB MEETING:

Maait held talks with Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation;
Planning Minister Hala El Said met the head of the ISDB’s ins. arm, Oussama Kaissi, in a meeting that touched on the bank increasing its support for Egyptian exporters;
Maait met with Emirati Financial Affairs Minister Mohamed Bin Hadi Al Hussaini to talk FDI and fiscal policy;
He also joined Malaysia Deputy Finance Minister Ahmad Maslan and discussed establishing a free-trade agreement between the two countries;

GAFI boss in the UAE: General Authority for Freezones and Investment (GAFI) head Hossam Heiba met up with a number of Emirati companies and agencies — including Dubai FDI, Fujairah Freezone, and Abu Dhabi Capital Group — on the sidelines of the Annual Investment Forum in Dubai, GAFI said in a statement yesterday. Discussions focused on the companies’ plans to increase their involvement in the Egyptian economy.

CALENDAR

APRIL

Late April – 15 May: 1Q2023 earnings season.

MAY

7-11 May (Sunday-Thursday): First round of applications for sixth phase of export subsidy program.

9-11 May (Tuesday-Thursday): First edition of the Arab Actuarial Conference, Cairo.

12-15 May (Friday-Monday): Egypt Fashion Week.

13 May (Saturday): Transport Ministry’s Maritime Transport Sector is hosting its Excellence and Creativity conference in Alexandria.

14 May (Sunday): First National Dialogue session.

14 May (Sunday): Expat car import scheme ends.

14 May (Sunday): EgyptAir to launch a new route to Dhaka, Bangladesh.

14 May (Sunday) Egytrans’ shareholders to vote on NOSCO acquisition.

15 May (Monday): Enterprise Exports & FDI Forum, Four Seasons Hotel Cairo at Nile Plaza.

16 May (Tuesday): National Dialogue session.

16-18 May (Tuesday-Thursday): Egypt will host its first conferenceon cybersecurity and defense intelligence systems (CDIS-Egypt).

17-31 May (Wednesday - Wednesday): Second round of applications for sixth phase of export subsidy program.

18 May (Thursday): National Dialogue session.

18 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

19 May (Friday): Arab League summit, Riyadh.

19-21 May (Friday-Sunday): G7 summit, Hiroshima, Japan.

20-21 May (Saturday-Sunday): eGlob Expo, St. Regis Almasa Hotel, Cairo.

21 May (Sunday): Senate to reconvene.

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

28 May (Sunday): House to reconvene.

29 May (Monday): IEF-IGU Ministerial Gas Forum, Cairo.

30 May (Tuesday): Listed companies have until this date to report and publish their 1Q results.

JUNE

June: Indian representatives to discuss prospect investments in the Suez Canal.

3-4 June (Saturday-Sunday): OPEC+ meeting, Vienna.

7-10 (Wednesday-Saturday): The second edition of Africa Health Excon.

10 June (Saturday): Thanaweya Amma examinations begin.

12 June - 15 July (Monday-Saturday): Thanaweya Amma exams.

13-14 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

15 June (Thursday): Deadline for bids in EGPC’s mature oil fields tender.

19-20 June (Monday-Tuesday): The forum for insolvency reforms and corporate restructuring in the Middle East and North Africa.

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo debuts at the Egypt International Exhibition Center.

22 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Egypt to exit Grains Trade Convention.

JULY

1 July: House of Representatives deadline to approve the FY 2023-2024 budget.

1 July: GAFI to launch the country’s first integrated electronic platform to facilitate setting up a business.

5 - 6 July (Monday - Tuesday): Gov’t to pay out subsidies to first wave of applicants under its sixth export subsidy program.

18 July (Tuesday): Islamic New Year.

19 - 20 July (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

27 July (Thursday): National holiday in observance of Revolution Day.

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

2 - 3 August (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

15 September (Friday): IMF to review USD 3 bn program.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

21 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

26 October (Thursday): Daylight saving time ends.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

November: Cairo to hostIntra-African Trade Fair.

2 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

DECEMBER

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

21 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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