El Sisi announces new wage hikes, financial support as cost of living soars

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What We're Tracking Today

Oil prices are creeping closer to USD 100

THERE’S JUST ONE DAY TO GO- The Enterprise Finance Forum takes place tomorrow and Tuesday at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

This invitation-only event begins at 8:00am with a standing networking breakfast and will end at 1:20pm both days.

** Registered attendees will receive their personal QR code today. Please bring this code with you both days to guarantee access to the venue.

There will be plenty of parking available at the venue for all those attending.

Tap or click here to view the FULL AGENDA with SPEAKERS.

What to expect: Join Karim Awad (group CEO, EFG Holding), Hazem Moussa (chairman, Contact Financial Holding), Tamer El Emary (group CEO, GB Capital), Todd Wilcox (CEO, HSBC Egypt), Leila Serhan (group country manager and senior vice president for North Africa, Levant and Pakistan, Visa), Pakinam Kafafi (CEO, Taqa Arabia), and many others for talks on everything from investing in uncertain times, to whether NBFIs are a bubble, and what the customers of financial institutions are saying about their bankers behind their backs.

** We are honored to count some of the region’s most important financial institutions as

our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FABMISR, HSBC, Mashreq, Banque du Caire, CI Capital, Global Corp, Visa, Hassan Allam Utilities, the IFC, and Post for Investment.

ELECTION 2024 or 2023?

Could we be heading to an earlier-than-expected election? That’s according to Bloomberg, which reported on Thursday that the government could seek a vote before the end of the year, citing unnamed sources it says are familiar with the matter. Under current plans, candidates would be invited to register from the beginning of October ahead of a vote in early December, according to the news outlet’s sources.

BUT- Nothing is yet set in stone and the current timetable could still change, Bloomberg said,

Remember: The National Election Authority is set to soon hold a press conference to announce the timeline for the 2024 presidential election. National Dialogue and State Information Service boss Diaa Rashwan has previously said to expect the process to get underway this December.

HAPPENING THIS WEEK-

Conference season gets well underway this week, with several several events opening their doors in the capital and beyond:

Sunday-Monday: Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.
Sunday-Tuesday: Sharm Rendezvous ins. conference, Rixos Premium Seagate, Sharm El Sheikh.
Wednesday-Saturday: Cityscape Egypt, Egypt International Exhibition Center, Cairo.

It’s Fed week: Expect the Federal Reserve to leave rates unchanged when it meets for its policy meeting on Tuesday and Wednesday this week. A higher-than-expected US inflation print in August now has market watchers penciling another 25-bps hike before the year is out, though for this meeting the consensus is that Fed officials will sit tight and see what happens in September before making another move.

Shoukry is in the Big Apple for the UN General Assembly: Foreign Minister Sameh Shoukry is in New York this week to participate in the UN General Assembly kicking off on Tuesday, the Foreign Ministry said Friday.

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

THE BIG STORIES ABROAD-

Arm shares pop in Nasdaq debut: Shares in British semiconductor giant Arm jumped almost 25% on their debut session on the Nasdaq on Thursday after the company completed the biggest IPO of 2023. Shares in the SoftBank-owned company were priced at USD 51 on Wednesday, and surged to USD 63.59 at the close of play on Thursday, handing the company a market cap of more than USD 65 bn. (Reuters | Bloomberg | Financial Times | CNBC)

MARKET WATCH-

Oil prices are creeping close to USD 100: Oil prices hit their highest levels since November on Friday as the global market continues to tighten on the back of Saudi Arabia and Russia’s decision to extend supply cuts until the end of the year. Brent climbed more than 2.5% on Thursday and Friday to close the week at almost USD 94.30 a barrel, while US crude breached the USD 90 mark for the first time in 10 months, ending Friday’s session at 91.20. It’s a good thing Egypt took out those hedging contracts.

Grain ships head to Ukraine despite Russia’s blockade: Ukraine is sending cargo vessels to collect grain from its Black Sea Port for the first time since Russia terminated the safe passage agreement in July, writes Bloomberg. Two ships are en route to Chornomorsk port carrying some 20k tons of wheat bound for Africa and Asia, the news outlet citing a s ocial med ia post by Ukraine’s infrastructure minister, Oleksandr Kubrakov. Since the grain pact collapse, Ukraine rerouted its grain exports via rail, river, and land, which carry the risk of being exposed to Russian attacks on river ports.

Get ready to embark on a sensational journey of entertainment: From October through December, London will be illuminated by the brilliance of three remarkable events sponsored exclusively by Somabay. The laughter will be unstoppable at the uproarious Egyptian Trilogy comedy tour, followed by the enchanting Samar Tarik. Brace yourselves for a captivating finale with the mesmerizing Farah El Dibany. Somabay brings you an unforgettable trifecta of events that will leave you utterly captivated and eagerly anticipating each spectacular moment.

Egypt’s El Sisi announces new wage hikes, financial support as cost of living spirals

Fresh wage hike, tax cut + social support as inflation bites: President Abdel Fattah El Sisi instructed the government to introduce further measures aimed at alleviating the impact of the economic crisis on vulnerable households. In a statement yesterday, Ittihadiya announced a fresh minimum wage hike for the public sector, a new income tax cut for lower earners and increased payouts to pensioners.

Remember: Inflation accelerated at a record pace in August on the back of ballooning food prices. The urban rate of inflation rose to 37.4% y-o-y from 36.5% the month before, thanks largely to food and beverage prices soaring 71.4% y-o-y.

#1- An income tax break for lower earners: The personal income tax exemption threshold will rise to EGP 45k from EGP 36k currently, reducing wage tax for mns of public- and private-sector employees.

Remember: This is the second time the exemption has been raised this year after the government lifted it from EGP 24k to EGP 36k from the beginning of the fiscal year in July.

#2- Another minimum wage hike: The president directed the government to go ahead with the third public-sector minimum wage hike in a year that will raise monthly minimum salaries to EGP 4k, from EGP 3.5k currently. In addition, public-sector employees and civil servants will see a one-time bonus payout of EGP 600, double the EGP 300 paid out last time around.

Remember: The public-sector minimum wage has climbed almost 50% since July 2022, before which it was set at EGP 2.4k a month. The level was then raised again in October and April.

#3- More support for vulnerable pensioners: Pensioners who receive support under the Takaful and Karama program will see payments increased by 15%, a decision that Ittihadiya said will impact 5 mn families. The government will also pay a EGP 600 exceptional stimulus payment to pensioners “and beneficiaries,” the statement said, without elaborating. The bonus will be paid out to 11 mn people, it said.

#4- Measures to support farmers + journalists: Indebted farmers are in line for support from the Agricultural Bank of Egypt while journalists will receive an increased tech and training allowance.

Costing the measures: The measures are expected to cost around EGP 30 bn, and will be financed from a contingency budget fund, a source at the Finance Ministry told us yesterday. The minimum wage hike will cost around EGP 10 bn while the tax cut will be around EGP 3 bn, they said.

Timing the measures: Ittihadiya did not disclose when the measures could come into effect. In a televised interview on Kelma Akhira last night, House Planning Committee Chair Fakhri El Fiqi suggested that the tax cut will likely be the only measure we’ll have to wait several weeks for, given it has to be voted through the House ( watch, runtime: 11:11). MPs are currently on summer recess and will return to start the new legislative session in October.

Is this enough? In response to show host Lamees El Hadidi’s suggestion that the measures might not be enough to alleviate inflationary pressures, El Fiqi said that the budget for the 2024-2025 fiscal year will likely include further pension and salary increases, and tax changes.

Maersk’s new green fuels venture eyes Suez Canal production hub

Maersk goes big on green fuel — with Egypt as a production hub: Danish shipping giant AP Moller-Maersk and its parent company AP Moller Holding have established a startup that will manufacture green methanol to fuel container ships in the Suez Canal Economic Zone (SCZone), according to statements by the company (here) and the General Authority for the SCZone (h er e).

Meet C2X: The new company, dubbed C2X, hopes to produce more than 3 mn tons of green methanol annually by 2030, according to its statement. It is 20% owned by AP Moller-Maersk, with the majority 80% stake held by AP Moller Holding — the investment company belonging to the Maersk founding family. C2X hopes to supply green methanol to AP Moller-Maersk as well as other customers in the chemicals and shipping industries. The company has hired energy industry veteran Brian Davis (LinkedIn) as CEO and Alastair Maxwell (LinkedIn) as its CFO, leading a team of 60 employees.

Where we come in: C2X “is presently pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain” as well as other undisclosed projects, its statement reads.

This could mean bns of USD in FDI for our green energy industry: Maersk signed a preliminary agreement with the government during the COP27 climate summit last year to invest as much as USD 15 bn to set up clean fuel projects here. C2X didn’t disclose its capital or the size of its expected investment in the SCZone.

Expect more details next month: Maersk is expected to sign a framework agreement for the project with the SCZone, the Sovereign Fund of Egypt, the New and Renewable Energy Authority, and Egyptian Electricity Transmission Company at the start of October, the SCZone statement reads.

Maersk has already been laying the groundwork: Maersk is reportedly on course to purchase half of the government’s 545-MW Zafarana wind farm to help power green fuels production. In May, cabinet also approved requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320-MW wind farm to power their green fuel projects.

What they said: “There is a pressing environmental requirement to scale the production of green methanol,” said AP Moller Holding CEO Robert Uggla. “C2X was founded to enable the energy transition in several hard to abate industries, including plastics, glues, textiles, and fuels.”

PLUS- Maersk’s maiden green methanol voyage is complete: The launch of C2X came in the same week that Maersk completed the maiden voyage of the world’s first green methanol-powered container ship. European Commissioner Ursula von der Leyen named the vessel Laura Maersk at a ceremony after it docked in Copenhagen, the company said Thursday. The vessel set out from Asia and last month passed through the Suez Canal on its way to Europe, being refueled at East Port Said port by our friends at OCI Global.

Green fuels? Green fuels are most promising in their potential to substitute fossil fuels in “hard-to-decarbonize” industries including steel, petrochemicals, and fertilizers, and in heavy duty transport including shipping, aviation, and trucking. Already some 100 ships with methanol burning engines have been ordered by shipping giants including Maersk, Cosco and CMA CGM. Read our recent explainer on green fuels for more.

Egypt could sell 30% of state-owned plastics firm -Asharq. PLUS: More Ebank stake sale rumors

Alamal Alsharif Plastics stake sale next year? The government is looking to sell a 30% stake in state-owned plastics manufacturer Alamal Alsharif Plastics to a single strategic investor, A sharq Busine ss reports, citing two unnamed government sources it says are in the know.

Advisor TBA: The state is close to appointing a local investment bank to advise on the sale, which it expects to take place by 1Q 2024, according to the report.

A transaction worth EGP 2.1 bn? The plastic pipe maker has a market value of some EGP 7 bn, one of the sources is quoted as saying, putting the value of a 30% stake at some EGP 2.1 bn. As with any M&A transaction, the final ticket price will depend on the results of independent valuations and negotiations with potential buyers.

Who owns what? Some 47% of Alamal Alsharif is held by state-owned banks including the National Investment Bank (with a 29.5% stake), the National Bank of Egypt (11.3%), United Bank (5.3%) and Suez Canal Bank (0.5%), according to the company’s w ebs ite. The remaining 53% is held by unnamed individual shareholders.

Remember: Alamal Alsharif is one of 35 state-owned assets earmarked for privatization as part of the reform agenda agreed with the IMF under the USD 3 bn loan program. The government is now aiming to raise USD 5 bn from asset sales between October 2023 and June 2024.

More rumors of an Ebank sale: A sharq Busines s is the latest to report that the government is planning to add the EGX-listed Export Development Bank (Ebank) to its privatization program, citing unnamed sources it says are in the know. State financial institutions currently hold an 84% stake in Ebank.

Remember: Ebank denied any knowledge of a potential sale to private investors lastmonth . A recent change in the establishment laws governing Ebank and two other local lenders — bringing the three banks’ governance fully in line with the 2020 Banking Act and removing potential obstacles to restructuring them — had added to speculation that Ebank could be up for a sale. An early study was underway to explore the idea of the bank bringing on board new investors via a capital increase, local media reported back in April.

Could 35 become 40? The government plans to expand the number of companies in its IPO program from 35 to 40 companies, Asharq adds.

Egypt’s Acdima to set up USD 165 mn pharma factory. PLUS: Another record year for SCZone

Acdima to set up USD 165 mn factory in SCZone: The Suez Canal Economic Zone (SCZone) board on Thursday greenlit a decision allowing the Arab Company for Drug Industries and Medical Appliances(Acdima) to set up a USD 165 mn factory for the production of 28 active substances used in the pharma industry, according to an SC Zone stateme nt

In detail: The first phase of the project, worth some USD 101 mn, will see Acdima set up production lines for 21 pharma raw materials and is set to start operations in 2026. The second, USD 64-mn phase of the project for the remaining seven inputs is scheduled to come online in 2030.

A first for SCZone Istithmar: The factory will operate in partnership with SCZone’s joint-stock investment company — dubbed SCZone Istithmar — marking the company’s first endeavor. The company was set up in August with the aim of planning and managing the authority’s current and future investments, as well as helping establish industrial development and utilities companies that serve the SCZone in partnership with private investors.

ANOTHER RECORD YEAR FOR SCZONE-

SCZone revenues hit new record: Revenues from the SCZone recorded nearly EGP 6.1 bn in FY 2022-2023, the highest recorded level in the zone’s history. Revenues rose 78% y-o-y from EGP 3.49 in the previous fiscal year.

ALSO FROM THE SCZONE BOARD-

Next stops for the SCZone roadshow 2.0: The SCZone will carry out a promotional campaign targeting global investments, with a focus on the Brics countries, Gulf countries, European nations, and the US. The SCZone’s roadshow has recently visited countries including India, China, Japan, the Netherlands, and Vietnam and has plans to go to South Korea, Germany, the UK, Vietnam, Singapore, and Brazil before the end of the year.

OCI HyFuels receives temp permit: OCI subsidiary OCI Hyfuels received a six-month renewable license to roll out green methanol bunkering services at the East and West Port Said ports, according to the statement. OCI refueled the world’s first green-methanol powered container ship, chartered by Maersk earlier this year. We have more news on Maersk’s plans for green fuels in Egypt in this morning’s newswell.

Egypt to reopen expat car import scheme, tweaks citizenship rules in push for FX

All about expats and FX at the weekly cabinet meeting: The Madbouly cabinet last week greenlit changes to two of its expat-focused FX-raising schemes — bringing back its initiative allowing Egyptians living abroad to import a new car to Egypt, and tweaking its citizenship-for-FX scheme.

#1- Expat car import scheme, round 2: The government is set to reopen its expat car import initiative for a three-month period under a draft law approved by the Madbouly cabinet at its weekly meeting, according to a ca binet stateme nt. The scheme allows expats to receive full rebates on customs fees, VAT, and other taxes within five years of purchasing a vehicle, provided they pay them upfront in FX.

Remember: Some 167k Egyptian expats reportedly registered in the first round of the scheme, which raised around USD 900 mn — a little over a third of the USD 2.5 bn originally targeted by the Finance Ministry. The scheme was initially set to remain open for three months from November 2022 but was extended through to May 2023 as part of the government’s efforts to maximize FX inflows.

No repeat customers: Those who took part in the first round of the initiative cannot do so again this time around.

Exact dates TBD: Expats who want to sign up will have a three-month window to pay the necessary fees in FX to the Finance Ministry, starting from the day after the new draft law is ratified. The law will also give the government the option to extend that window by a further three months. Draft laws are usually sent to parliament for debate before they are approved and then signed into law by President Abdel Fattah El Sisi.

#2- Citizenship applicants can’t flip their local real estate: Foreigners looking to acquire a green passport by investing in property must hold onto it for at least five years in order to qualify for citizenship, per legal amendments approved by cabinet on Thursday.

Admin fees need to be paid in FX: The USD 10k administrative fee citizenship applicants pay to have their application processed must now be paid in USD, according to the statement. Applicants previously had the option to pay the fee in its EGP equivalent.

Remember: Amendments to the Citizenship Act passed this year lowered the amount of money foreigners have to bring into the country in order to obtain citizenship. Foreigners can now invest USD 300k into local assets such as real estate to get the green passport, down from USD 500k previously.
EDITOR'S NOTE: This story was corrected on 17 September, 2023 to reflect that where foreigners could previously pay the USD 10k administrative fee in its EGP equivalent, they can now pay the fee in USD only.

EBRD supports Afia’s raw material imports through USD 20 mn loan

EBRD to loan Afia USD 20 mn for imports: Savola Group’s edible oil company Afia Egypt will receive a USD 20 mn loan from the European Bank for Reconstruction and Development (EBRD) to help it pay for raw material imports, according to the lender’s website. The news comes against the backdrop of an FX crunch at home and increased food insecurity globally thanks to the knock-on effects of Russia’s war in Ukraine. The loan has been under consideration since December.

What they said: The loan “will support the company’s working capital requirements and the purchase of raw materials, including bulk crude vegetable oil. It will also help the company diversify its financing sources by providing approximately 15% of what it needs annually,” the statement reads. Through the loan the EBRD will help Afia “diversify and enhance its local value chain by adding new local suppliers and improving its quality and operating standards, which will help it expand into new export markets.”

PLUS- Better governance: The EBRD will also help Afia set up a “gender-sensitive” internship program that will increase women’s access to employment and training.

We’ve seen a ton of EBRD money lately: The lender is expected to approve a USD 125 mn loan in October to finance Damietta Port’s second container terminal, and is investing EGP 927 mn in water and power infrastructure in our new cities. It’s also in the process of granting a USD 400 mn loan to the National Bank of Egypt and USD 100 mn to Banque Misr.

The US is letting Egypt have more of its human rights-linked military aid. PLUS: El Sisi meets French foreign minister

The Biden administration is withholding USD 85 mn in military assistance to Egypt this year, but will allow the transfer of the remaining USD 235 mn of human rights-contingent aid, Reuters and the Associated Press reported Friday, citing anonymous US officials. Reuters had reported earlier in the week that the State Department had decided to block the payment of USD 85 mn of aid but that no decision had been reached regarding the USD 235 mn.

Remember: Some USD 320 mn of the USD 1.3 bn the US gives to Egypt in military aid each year is contingent on the country making improvements to its human rights situation. Of that, USD 85 mn is tied to making “clear and consistent progress” in releasing political prisoners, ensuring due process, and preventing the intimidation of US citizens. The other USD 235 mn is linked to other democracy and human rights requirements and can be overruled by the government on national security grounds.

This is more than Egypt got the previous two years: The Biden administration withheld U SD 130 mn in aid in 2021 and 2022.

In perspective: The amount withheld is less than 7% of the total USD 1.3 bn of military aid the US allocates to the country.

From Cairo to Taipei: The Biden administration told Congress it will redirect USD 55 mn of the military financing usually earmarked for Egypt to Taiwan to strengthen its defense capabilities, the Wall Street Journ al reported Wednesday.

Egypt-US talks: Foreign Minister Sameh Shoukry spoke over the phone with US Secretary of State Antony Blinken on Thursday, according to a Foreign Ministry statement. Diplomatic efforts to settle the crises in Sudan and Libya were discussed ahead of the UN General Assembly meetings in New York this week. The State Department’s decision on military aid was not mentioned in the readout.

ALSO IN THE DIPLO SPHERE-

#1- El Sisi meets French FM: President Abdel Fattah El Sisi discussed strengthening bilateral relations on the energy, transport and climate fronts with French Foreign Minister Catherine Colonna on Thursday, Ittihadiya said in a statement. The meeting also touched on joint development efforts, anti-terrorism operations, and combating illegal migration, as well as regional issues including the conflicts in Palestine, Sudan, and Libya.

#2- Chinese markets open for Egyptian mango: Agriculture Minister El Sayed El Quseir inked an MoU with the Chinese Customs Vice Minister Wang Lingjun to export Egyptian mango to Chinese markets. (Agricultural Ministry statement)

New emergency supports measures, Sisi’s visit to Beni Suef dominate the talk shows

The new social security measures and El Sisi’s trip to Beni Suef dominated the talk shows yesterday:

#1- All the nation’s talking heads covered the new package of emergency financial measures announced by the president yesterday. House Planning Committee Chair Fakhri El Fiqi dropped into Kelma Akhira (watch, runtime: 11:12) to discuss the measures while in an interview on Ala Mas’ouleety (watch, runtime: 10:18), Journalists' Syndicate head Khaled El Balshy called on all news outlets to pay journalists the new minimum wage. Masaa DMC (watch, runtime: 3:20), Al Hayah Al Youm (watch, runtime: 6:24) and El Hekaya (watch, runtime: 3:03) also had coverage.

#2- El Sisi’s Beni Suef visit: Al Hayah Al Youm (watch, runtime: 9:47), Masaa DMC (wat ch, runtime: 3:44), and Ala Masouleety all dedicated airtime to cover the president’s visit to Beni Suef yesterday, where he visited a village to inspect ongoing infrastructure projects under the Decent Life Initiative, did some photo ops with the locals, and announced the new social support measures in a speech.

#3- It’s mid-September — so why are the blackouts getting longer? The cabinet spokesperson said in July that the near two months of rolling blackouts cuts would end by the middle of September under the worst case scenario as the summer temperatures cooled and electricity demand fell. Unfortunately, though, the opposite seems to be happening, with a number of places around the country last week reporting longer-than-usual and unscheduled blackouts.

Lamees El Hadidi wasn’t particularly happy: “You cannot ask the citizens to endure without being transparent with them,” said El Hadidi, criticizing the government’s lack of transparency around the worsening blackouts (watch: runtime: 6:10).

Oil prices to blame, says El Sisi: In his speech yesterday, the president blamed rising global oil prices and the FX shortage for the continued electricity disruption. Oil prices reached new 10-month highs last week, with Brent futures edging towards USD 95 a barrel.

Yes, but: The Finance Ministry reportedly recently took out new hedging contracts that lock in crude purchases at USD 75-80 a barrel.

US military aid + jailing of Hisham Kassem dominates the conversation on Egypt in the foreign press

Two stories are dominating the conversation on Egypt in the international press this morning:

#2- Hisham Kassem jailed: Prominent newspaper publisher and political activist Hisham Kassem was sentenced to six months in jail yesterday on charges of slander and verbal assault. Kassem, the former publisher of Cairo Times and Al Masry Al Youm, will serve three months for allegedly insulting a former minister and three months for verbally assaulting policemen after his arrest. Kassem earlier this year founded the opposition coalition El Tayar El Hurr to participate in the upcoming presidential election process. (Associated Press | Reuters | AFP | Wall Street Journal | The National)

Tourist numbers up 40% in 7M 2023 -Issa. PLUS: Egypt-Hong Kong investment ties, incorporation goes online

TOURISM-

We welcomed 40% more tourists from January to July: The number of tourists visiting Egypt increased 40% y-o-y in the first seven months of 2023, Tourism Minister Ahmed Issa said last week, according to Al Mal. This came during the minister’s visit to Moscow last week, where he met several tourism and flight companies and discussed increasing the number of Russian visitors to Egypt. Issa didn’t say how many tourists visited Egypt during the seven month period.

ICYMI- The government is aiming to attract 15 mn tourists this year, and increase annual visitor numbers to 30 mn by 2028.

Part of the plan: Egypt wants to attract 4.5 mn tourists from Arab countries in 2024, up 45% from 3.1 mn in 2022, Tourism Promotion Board head Amr El Kady told Asha rq Bus iness. El Kady also said that Egypt is targeting a total of 18 mn tourists next year.

REGULATION-

Incorporation goes online-only: Companies must register their establishment through GAFI’s online portal starting from today, the investment and freezones authority said in a statement. New firms will need to provide a valid e-signature and use electronically issued powers of attorney

GAFI cuts red tape: The authority has now cut the number of documents required to set up a new company by two-thirds, it said in a separate statement. The move to make it easier to set up businesses was one of 22 recommendations by the country’s Supreme Investment Council to reduce bureaucracy and encourage more FDI to the country.

INVESTMENT-

#1- GAFI inks Hong Kong investment promotion MoU: The General Authority for Investment and Freezones (GAFI) has signed a cooperation MoU with Hong Kong’s investment promotion authority InvestHK, according to statements (here and here) over the weekend. The MoU focuses on sharing information regarding the business environment in the two countries, in addition to expertise and increasing FDI flows. It also aims to support incoming business missions and joint events to encourage bilateral investment flows between Cairo and Hong Kong. The agreement was signed on the sidelines of the Belt and Road Summit in Hong Kong.

SPEAKING OF HONG KONG- Al Mashat meets with Hong Kong chief: International Cooperation Minister Rania Al Mashat met with the Hong Kong Chief Executive John Lee at the Belt and Road Summit to discuss cooperation, the ministry said yesterday. During the meeting, Al Mashat highlighted Egypt’s efforts to attract foreign investment into priority sectors such as the Suez Canal Economic Zone. The minister also discussed multilateral financing and private-sector development with HSBC Deputy Chairman David Eldon, according to a separate statement.

ICYMI- GAFI head Hossam Heiba said last week that some 10-15 Chinese companies have shown interest in establishing a specialized industrial zone for chemicals with investments worth USD 7.5-12 bn in CNY across the next 3-4 years.

#2- Two more golden licenses granted: The Madbouly cabinet granted two new single-approval licenses to EnviroProcess and Fayoum Company for Storage and Warehouses, per a decision published in the Official Gazette. Both companies received preliminary approval for the licenses in July. Fayoum Company is building an EGP 1.3 bn project for strategic warehouses in Fayoum governorate, while EnviroProcess will build an EGP 73.5 mn recycling plant for alternative fuels and fibers in Minya.

ADES on course to raise USD 1.2 bn in Saudi IPO

ADES set to price shares at top of expected range in Saudi IPO: Egypt-born oil and gas driller ADES Holding is expected to sell its shares at SAR 13.50 in its initial public offering (IPO) on the Saudi stock exchange, Bloomberg reports, citing a terms sheet it has seen.The company is set to raise USD 1.2 bn by offering 30% of its share capital to the public, in what is projected to be the kingdom’s biggest listing of the year. The shares were significantly oversubscribed within the first hours of institutional bookbuilding, according to Bloomberg. The final pricing will be announced on 20 September.

The sellers: Company shareholders PIF, ADES Investments Holdings and Zamil Group Investment will sell a combined 101.6 mn existing shares, and ADES will also issue 237.1 mn new shares, according to Reuters.

Where the money’s going: ADES intends to use the proceeds from the offering to reduce part of its indebtedness and fund its growth strategy, as well as for “general corporate purposes”, Bloomberg reports.

Advisors: EFG Hermes, Goldman Sachs, JPMorgan and SNB Capital will act as the financial advisors, global coordinators, bookrunners, and underwriters on the transaction. SNB Capital will also act as the lead manager. HSBC, GIB Capital, Al Rajhi Capital, and Saudi Fransi Capital were appointed as bookrunners and underwriters to the offering. Lazard Financial Advisory is ADES’s independent financial advisor.

EGX30	19,540	+0.9% (YTD: +33.9%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	11,155	+0.3% (YTD: +6.5%)
ADX	9,880	+0.9% (YTD: -3.2%)
DFM	4,043	+0.2% (YTD: +21.2%)
S&P 500	4,450	-1.2% (YTD: +15.9%)
FTSE 100	7,711	+0.5% (YTD: +3.5%)
Euro Stoxx 50	4,295	+0.4% (YTD: +13.2%)
Brent crude	USD 93.93	+0.3%
Natural gas (Nymex)	USD 2.64	-2.4%
Gold	USD 1,946.20	+0.7%
BTC	USD 26,577	-0.9% (YTD: +60.7%)

THE CLOSING BELL-

The EGX30 rose 0.9% at Thursday’s close on turnover of EGP 2.0 bn (3.9% below the 90-day average). Foreign investors were net buyers. The index is up 33.9% YTD.

In the green: Talaat Moustafa Group (+11.7%), Abu Dhabi Islamic Bank - Egypt (+3.5%) and Abu Qir Fertilizers (+2.7%).

In the red: Beltone Holding (-1.3%), Fawry (-1.2%) and AMOC (-1.2%).

CALENDAR

SEPTEMBER

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous (insurance conference), Rixos Premium Seagate, Sharm El Sheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

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

19-26 September (Tuesday-Tuesday): UN General Assembly, New York.

20-23 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

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

23-29 September (Saturday-Friday): Engineering Export Council of Egypt Iraqi trade mission.

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.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

27 September (Wednesday): Prophet Muhammad’s birthday.

26 September (Tuesday): Taqa Arabia’s ordinary general assembly meeting.

27 September (Wednesday): Deadline for bidding in the fifth phase of the investment map offered by the Industrial Development Authority (IDA).

27 September (Wednesday): Deadline for bidding in tender for five solar plants on north coast.

28 September (Thursday): Eastern Company will hold an ordinary general assembly meeting to approve the company’s financials for the 2022-2023 FY.

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

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm El Sheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

30 September (Saturday): The start of the new academic year for Egyptian schools.

Signposted to happen sometime in September:

Sustainable Debt Coalition Initiative agreed at COP27 to launch
IDH to open first branch in Saudi Arabia
The Egypt-Germany trade and investment joint conference in Cairo
ADQ to acquire stakes in Elab, Ethydco and EDC by end of month

OCTOBER

1-3 October (Sunday-Tuesday) International Expotec for water economics management, Egypt International Exhibition Center, Fifth Settlement, Cairo.

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

2 October (Monday): Government meeting with investors to look into liberalizing electricity grid.

6 October (Friday): Armed Forces Day.

7 October (Saturday): HHD shareholders to consider NOSI’s offer to acquire Heliopark land.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

10-12 October ( Tuesday-Thursday) Ceramica Expo, Cairo International Convention Center.

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

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

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

Signposted to happen some time in October:

Deadline for ins. providers to link their databases with the FRA
Egyptian-Jordanian Business Council, Amman, Jordan
Gov’t expects to finalize sale of Gabal El Zeit wind plant
October or November: Gov’t expects to finalize stake sale for military-owned fuel retailer Wataniya

NOVEMBER

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

8 November (Wednesday): Turkish-Arab Economic Forum 2023, Istanbul.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

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

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

22 November (Wednesday): Deadline to apply to FRA for credit rating license.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

9-15 December (Saturday-Friday) :The Engineering Export Council of Egypt’strade mission to Saudi Arabia.

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

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

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

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

Signposted to happen sometime in December:

Gov’t expects to finalize sale of a stake in military-owned bottled drinks company Safi
Gov’t expects to finalize sale of Zafarana wind farm

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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.

3Q 2023: E-Finance to launch in Saudi Arabia.

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

4Q 2023: EGX to launch a shariah-compliant index.

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

2024: Standard Chartered Bank to open a branch in Egypt.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

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

2Q 2025: Safaga Terminal 2 to start operations.

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