AIIB is meeting in Sharm this month. Here’s why that matters.

1

What We're Tracking Today

Inflation data for August published today; analysts expect a third successive record high

Good morning, friends, and a very happy Sunday to you all. We have a packed issue for you this morning, including why you should care about the upcoming Sharm meeting of the Asian Infrastructure Investment Bank, the latest from the G20 summit, signs of life on Planet VC, and what you can expect of Apple’s fall event on Tuesday.

Before we get underway: Join us this morning in saying a little prayer for everyone impacted by the devastating earthquake in Morocco.

PSA: There are only four days left for Egyptians living abroad to settle unfulfilled military servi ce in FX. Folks looking to settle their national service obligation will need to deposit USD 5k / EUR 5k into a Banque Misr account at the bank’s Abu Dhabi branch by Wednesday, 13 September. Head here for more information.

COUNTDOWN- There are just 8 days until the Enterprise Finance Forum, which takes place 18-19 September (Monday 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.

You won’t want to miss this one: Join Hassan Allam (CEO, Hassan Allam Holding), Fernando Morillo (group head of retail banking, Mashreq), Galal El Beshbishy (co-founder and COO, Synapse Analytics), Basma Rady (chief data scientist, Beltone Financial), Larry Lerner (partner, McKinsey), Islam Zekry (group CFO, CIB), and many others for talks on everything from the impact of AI and data science on banking, to the coming of digital and challenger banks.

Tap or click here to REQUEST AN INVITATION or view the FULL AGENDA.

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, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, and the IFC.

HAPPENING TODAY-

#1- It’s inflation day: Capmas and the central bank will release inflation data for August today.

Remember: Annual inflation has been soaring since the start of the war in Ukraine in March 2022, and in July hit a second successive all-time high of 36.5%.

A third record high in a row? A Reuters poll of analysts last week sees the annual urban rate further increasing in August. The median forecast among the survey of 14 analysts and economists sees consumer prices accelerating at a 37.1% clip during the month.

Signs inflation could be slowing down?

“Underlying momentum should be fading, particularly with global wheat prices down m-o-m and relative stability of the parallel exchange market,” said Carla Slim, MENA economist at Standard Chartered.
“We expect annual inflation to be nearly flat,” said EFG Hermes’s macro head, Mohamed Abu Basha. “Higher base effect is setting in, but some noise coming from tobacco, and to a lesser extent food prices, are likely to keep inflation elevated.”

#2- G20 wraps: The heads of state of G20 nations — as well as other leaders invited by India, which include President Abdel Fattah El Sisi — will close out the 2023 leaders summit in New Delhi today.

#3- Sahara expo: The Sahara agriculture exhibition kicks off at the Egypt International Exhibition Center (EIEC), showcasing agricultural machinery, water management systems, and post-harvest technologies. The event runs through to Tuesday.

HAPPENING THIS WEEK-

#1- Friday is supposed to be the day that the IMF starts conducting its review of our loan program: As we noted last week, the prospects of an IMF team arriving in town this week look rather slim, with a government official telling Asharq Business that the review will likely not wrap up this month. A source at the Finance Ministry we spoke to was more optimistic but admitted that the Fund was yet to set a date for the mission.

ICYMI- The first review was originally supposed to take place in mid-March but was postponed after we fell short on meeting several key conditions of the loan agreement. The delay means that the IMF is expected to roll the first and second reviews into one when it next comes to Cairo, which would see the disbursement of almost USD 700 mn.

#2- US to make decision on military aid on Thursday: The US State Department is set to decide whether to withhold a portion of Egypt’s annual USD 1.3 bn of military aid on human rights grounds by 14 September.

Remember: A number of Democratic lawmakers in the House and the Senate have called on the Biden administration in recent weeks to withhold a quarter of the USD 1.3 bn. This would be the third consecutive year that Egypt has had some of its military aid withheld: the Biden administration blocked Egypt from receiving USD 130 mn of aid in 2021, a figure that rose to USD 205 mn last year.

#3-The Hydrogen Egypt Summit : The largest green hydrogen industry event in the country will open its doors at the Nile Ritz Carlton on Wednesday and Thursday. Industry leaders at local and global energy players will be attending the event to discuss how to realize Egypt’s potential to become a regional green hydrogen hub.

#4- A big rate-hike in Europe this week? The European Central Bank could decide to go ahead with a large 25-bps interest rate hike at its policy meeting on Thursday, as it looks to combat sticky inflation, writes Bloomberg.

Reminder: The US Federal Reserve will be the next major central bank to hold its meeting. The Federal Open Markets Committee meets next week, on 19-20 September.

TECH TUESDAY-

We’ll get our first look at the new-look iPhone on Tuesday when Apple holds its annual product event. Here’s what you can expect:

A brand new iPhone: The company is widely expected to unveil the 15th generation of its flagship product and could launch a new top-range Ultra model to replace the Pro Max. (Techcrunch)
A new Apple Watch: Rumor has it that we’ll be getting first looks at the Apple Watch Series 9 and Ultra 2, upgrades that will reportedly focus more on tech and less on aesthetic overhauls. (Macworld)

Other tech unveilings this fall: Microsoft will show off new hardware on Thursday, 21 September and Google will formally announce the Pixel 8 and an updated watch on Wednesday, 4 October.

THE BIG STORIES ABROAD-

#1- More than 2k dead as r escuers search for survivors of Morocco’s devastating earth quake: A 7.2 magnitude earthquake that hit Morocco’s High Atlas mountains late Friday night has killed more than 2k people and damaged buildings stretching from the mountain range to Marrakech. The death toll is expected to continue to rise as emergency workers search the rubble for survivors. The quake is the country’s deadliest in 120 years.

Egypt reacts: President Abdel Fattah El Sisi and the Foreign Ministry expressed their condolences to the victims of the earthquakes.

News of the disaster is everywhere in the foreign press, from the Associated Press and Reuters to Bloomberg, the Financial Times, the Wall Street Journal and CNBC.

#2- G20: The first day of the G20 leaders summit is also attracting plenty of attention from the Western media, most of which are focusing on yesterday’s joint declaration (pdf) that didn’t condemn Russia for invading Ukraine. Heading into the summit, a joint communique seemed to be a long shot given the divisions over the war in Ukraine though summit host India has apparently been able to convince Western leaders to drop some of the hostile language and agree to a more neutral statement. (Reuters | Bloomberg | Financial Times | New York Times | Wall Street Journal | CNBC)

What you need to know from the first day:

The African Union now has permanent representation at the G20: The G20 granted permanent membership to the African Union on Saturday, handing it the same level of representation as the EU. (Reuters)
The W est’s answer to the Belt and Road Initiative? The EU, India, Saudi Arabia, UAE and US signed an MoU for a Middle East-South Asia infrastructure project that would link Middle Eastern nations and India by new rail networks and ports. (Reuters)

OIL WATCH-

Expect oil prices to keep on rising in the weeks and months ahead after Saudi Arabia and Russia agreed last week to maintain supply curbs through to the end of the year. That’s according to Bloomberg, whose interviews with energy analysts suggest a price spike ahead. “Crude tightness seems quite legitimate and quite real,” said one. “This certainly keeps oil markets on the boil.”

A return to three-figure oil isn’t a certainty: Heading into an election year in the United States, an uptick in inflation is the last thing that President Biden wants — and his administration could choose to release more crude from the strategic petroleum reserve should prices rise significantly. Then there’s China, where just a few months ago a surge in demand was expected to cause serious tightening in the energy markets but now whose economy now seems to be on the cusp of a downturn.

Where we’re at: Oil prices closed Friday at a nine-month high, with Brent up 0.6% at USD 90.40 per a barrel and US crude rising 0.4% to USD 87.20.

What does this mean for emerging markets? The combination of oil price uncertainty, sluggish growth in China and greenback strength will make for a “wild ride” for local emerging markets, according to a note by Barclays strategists picked up by Bloomberg. Risk sentiment in the asset class took a hit towards the end of last week, with MSCI’s EM equities index falling for the second day by 0.5% and EM currencies dropping to a more than two-week low.

What they’re saying: “China’s woes and the US term premia shock sent EM assets on a roller-coaster and make for a challenging backdrop for EM flows,” the strategists wrote, noting that moves in the oil markets have “become hard to ignore.”

CIRCLE YOUR CALENDAR-

#1- Looking to do your master’s degree in the UK? Applications for the British government’s Chevening scholarship will open from Tuesday, 12 September and close on 7 November. The scholarship offers full financial support for students to pursue an eligible master’s degree at over 150 UK universities. Applications will be open here.

#2- Help keep Wadi Degla clean: Trail running events organizer Ultra Ibex is holding a trash clean-up in Cairo’s Wadi Degla between 9-11 am on Friday, 15 September. Volunteers will clear trash from the 3-km stretch from the entrance of the Wadi, the same area where they collected more than 100 bags of trash last year. All proceeds collected from the event will go towards installing 10 new trash collection units in the Wadi. Register to help out here.

Are you a corporate and want to back the cleanup? Our friends at Ultra Ibex are actively looking for partners.

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

AIIB meets Egyptian private sector players ahead of annual meeting in Sharm El Sheikh

Private-sector players talk with the AIIB: Asian Infrastructure Investment Bank(AIIB) officials virtually joined Finance Minister Mohamed Maait, Deputy Finance Minister Ahmed Kouchouk, and a number of private sector players at the Finance Ministry’s new headquarters in the new administrative capital on Thursday to discuss how the Beijing-backed multilateral lender can benefit private-sector players ahead of the bank’s a nnual meetin g in Sharm El Sheikh later this month. Enterprise was in attendance.

AIIB and Egypt have some history: Egypt was one of the bank’s founding members, helping bring it to life in 2016. So far we have received nearly USD 1.3 bn in the funding from the bank, across five projects, the latest of which was a EUR 250 mn loan for the redevelopment of the Abu Qir railway in Alexandria. Maait is Egypt’s governor to the bank, while Kouchouk is the bank’s director for constituency six, which includes Egypt, Algeria, Argentina, Brazil, Morocco, Sudan, and Tunisia, among 12 other countries.

The beginning of a bigger conversation: Thursday’s discussion came in the lead-up to the bank’s 2023 annual meeting, which takes place on 25-26 September in Sharm El Sheikh. The meeting is the bank’s first post-covid, in-person event and the first to be hosted by an African country.

We need resilient infrastructure: “We can respond to climate change by improving the quality and accessibility of infrastructure services,” AIIB’s VP and Corporate Secretary Ludger Schuknecht (LinkedIn) said. “We have to enhance the resilience and adaptability of infrastructure systems to shocks and stresses such as natural disasters and climate change, and we need to increase the transparency and accountability of infrastructure governance and management such as procurement, financing, and monitoring.”

And that takes serious investment: “The world faces a roughly USD 50 tn gap between projected investment and the end amount needed to provide adequate global infrastructure by 2040,” Shucknecht said. “For Egypt alone, that figure is projected to be USD 675 bn between now and 2040 … this is an amount that cannot be met by governments and [multilateral development banks] alone,” he added.

Private-sector involvement is crucial: “Private equity is necessary to ensure infrastructure projects are being built,” Schuknecht continued. “The infrastructure gap is critically high for critical infrastructure such as energy, telecommunications, transport, and climate-resilient infrastructure.” AAIB is also “working with its members on transport and logistics projects to help bottlenecks and facilitate connectivity in cross border trade”, he said.

The AIIB de-risks projects: “AIIB can help member countries unlock leverage and catalyze private-sector finance for investment. The bank can provide policy guidance and financial support … to sufficiently change the risk-reward balance to attract private capital to infrastructure opportunities,” said AIIB board member Fabrizio Costa (bio).

Some 40% of the bank’s funded projects are in the private sector: “Today we have already financed 231 projects in 35 member countries, with a total approved funding of USD 44 bn, including 97 private sector projects … within this active portfolio, in one third of projects we mobilize capital to leverage our own investments,” said the bank’s VP of investment operations, Konstantin Limitovskiy (LinkedIn).

AIIB offers concessional financing: “It is important to support the private sector, we are very happy to do so. We are happy to take more risk for a longer tenor compared to the more commercially-oriented lenders. We can do this through USD financing, investments, capital market issuances, or selective equity investments,” said Director-General, Region 2 Banking, Najeeb Haider (LinkedIn).

What projects is the bank after? “When we work with the private sector we have several key goals: We want to selectively engage in transformative projects to have significant impact, particularly by investing in infrastructure in the private sector and increasing private capital mobilization. We want to support the private sector in developing high quality and resilient infrastructure. We want to promote a green economy to stimulate growth, and develop digital infrastructure to foster innovation,” Limitovskiy continued. “The top three sectors which we finance today are transport, energy, and multisector.”

It’s not all sunshine and rainbows: “We need to be aware that we are also facing some challenges when we work with the private sector. As a bank we have to be cautious of the country … aligning our financing approach with current market conditions. At AIIB we aim to provide competitive financing packages while avoiding underpricing or undercutting commercial lenders,” Limitovskiy said.

Egyptian Mortgage Refinance Company closes inaugural securitized bond sale

Egyptian Mortgage Refinance Company (EMRC) has issued EGP 472 mn in securitized bonds, Dreny & Partners, the legal counsel on the transaction, said in a press release (pdf ) on Thursday. The three-tranche issuance was rated between AA+, AA and A by the Middle East Ratings and Investors Service (MERIS). The issuance is the first in a planned three-year, EGP 3 bn program.

First of its kind: The transaction marked the first securitization issuance for EMRC, which is the country’s sole provider of refinancing to mortgage lenders, according to the release. EMRC has been eyeing a securitized bond sale as far back as 2020.

Who subscribed? EFG Hermes, the National Bank of Egypt, and the Arab African International Bank were joint underwriters.

Advisors: EFG Hermes and Al Ahly Pharos acted as joint financial advisors on the transaction. AAIB was bookrunner and custodian, KPMG was the auditor, and Dreny & Partners acted as legal counsel.

DATA POINT- This brings the total value of securitized bonds issued in Egypt so far this year to nearly EGP 50.8 bn — almost 12% more than total volumes across the whole of 2022, according to data tracked by Enterprise.

Egypt’s finance ministry targets USD 2 bn in fresh debt raises this year

The Finance Ministry is looking to secure USD 1.5-2 bn in fresh loans by 4Q 2023, Finance Minister Mohamed Maait told A sharq Busines s in an interview. This includes a planned USD 500 mn CNY-denominated panda bond issuance and a second JPY-denominated samurai issuance worth USD 500 mn.

This target has tempered somewhat from July, when the minister said the government was targeting USD 3 bn in fresh debt raises before the end of the year.

Remember: Egypt has only tapped the international debt markets once since March 2022 after the knock-on effects of the war in Ukraine and tighter global financial conditions all but locked us out of the international debt markets and raised concerns about Egypt’s debt sustainability.

Progress on panda issuance next week? The Asian Infrastructure Investment Bank(AIIB) is expected to approve ins. coverage worth USD 230 mn for our panda bond issuance in a meeting in Cairo on 21 September, Maait told the news outlet. The African Development Bank(AfDB) has said it will provide USD 345 mn in ins. coverage for the issuance. The money will be used to fund sustainable development projects.

Refresher: The government is facing a USD 17 bn external financing gap between 2023 and 2026, according to the IMF, which it is trying to fill via a mixture of state asset sales, new concessional financing from multilateral lenders, higher tourism revenues, and increasing exports, as well as the USD 3 bn IMF loan. The country’s external debt bill rose to a record USD 165.4 bn by the end of March 2023

1H 2023 was expensive for debt repayments: The government spent USD 25.5 bn on debt servicing costs during the first half of the year, Maait said in an interview with the state MENA news agency yesterday.

Putting this in perspective: The state paid off USD 52 bn in principal and interest across the entire 2021-22 and 2022-23 fiscal years, the minister said.

Things don’t let up in the coming months and years: The government has another USD 15.1 bn in short- and long-term debt repayments during the second half of this year, followed by another USD 46.3 bn in medium- and long-term repayments during 2024 and 2025, according to the most recently-available central bank figures (pdf).

Beltone Venture Capital acquires 20% of Egypt-based home decor brand Ariika

Beltone Financial Holding’s recently launched venture capital arm has acquired 20% of local furniture and homeware brand Ariika for EGP 31 mn in a series A round, according to separate press releases from Beltone (pdf) and Ariika on Wednesday.

Ariika: Launched in 2016 as an online bean bag store, Ariika now sells outdoor furniture, linens, sofas, bedding accessories, and more, largely through digital channels. Over the past seven years it has grown at a CAGR of more than 85% and has served some 800k customers across the region. Ariika is a Dutch firm, based in Cairo, and currently exports to markets including Saudi, the UAE, Iraq, Germany and Australia.

The firm has its eye on KSA: Ariika will use the fresh capital to establish a presence in Saudi Arabia in 4Q 2023 and is also eyeing other countries in the region. The company will also use the funds to expand its sales strategy and develop its tech and digital design offering with augmented-reality (AR) tools.

And export growth: Ariika says the funding will help it grow its exports from a current c. 15% of its sales to 50% by 2025.

Advisors: White & Case, El Boraie Law Firm, and Van Doorne acted as legal advisors on the transaction.

A running start for Beltone’s new VC arm: The investment is the second in as many weeks for Beltone Venture Capital, which recently participated in healthtech startup Sehatech ’s USD 850k pre-seed funding round alongside A15. The firm launched earlier this year, with the aim of providing early stage funding around the USD 250k mark to tech-enabled startups in impact sectors. In addition to Ariika and Sehatech, the company currently also has investments in courier service Bosta and online sportswear retailer Wayup Sports. Its parent company also last week acquired 100% of Minya-based microfinance provider Cash.

Remember: Beltone has money to spend following its landmark EGP 10 bn capital increase in July, placing some 5 bn new shares on the EGX.

ICYMI- Ariika CEO and co-founder Khaled Attalah sat down with us in May to discuss the highs and lows of founding a startup.

Egypt’s FX reserves inch up in August

CBE adds another USD 50 mn to FX reserves in August: Net foreign reserves were essentially flat in August at USD 34.93 bn, up from USD 34.88 bn in July, according to c entral bank figure s. This is the 11th consecutive month that foreign reserves have increased, albeit very modestly each time.

USD 1.8 bn and counting: The central bank has been trying to rebuild its reserves since last year when Russia’s invasion of Ukraine precipitated heavy capital outflows and caused its FX stockpile to fall almost USD 8 bn to USD 33.1 bn last August.

Background: The global shock triggered by the war, combined with tightening global financial conditions across the world, has plunged the country into its worst FX crunch in years and left the EGP down by almost half against the greenback. The FX shortage and continued uncertainty about the currency has fuelled a resurgent parallel currency market that has placed further pressure on FX liquidity in the banking system.

Morocco earthquake, G20 summit dominate coverage on Egypt’s talk shows

Morocco’s deadly earthquake dominated the airwaves last night,with Al Hayah Al Youm (watch, runtime: 4:26), Masaa DMC (watch, runtime: 6:52), and Ala Mas’ouleety (watch, runtime: 2:47) all providing coverage of the disaster which has killed more than 2k people. El Hekaya’s Amr Adib, who was back from his summer break yesterday with a broadcast live from London, also discussed the events in the North African country (watch, runtime: 3:23). We have more details in this morning’s What We’re Tracking Today, above.

The first day of the G20 summit in India also got plenty of attention: Al Hayah Al Youm’s Lobna Assal spoke with economist Mostafa Badra (watch runtime 6:50), who said the G20’s recommendations represent a shift from talks to action but called on them to go further and provide more debt relief for struggling countries. He also highlighted calls for reforming international financial institutions, such as the World Bank and the IMF, saying they don’t provide sufficient finance to poorer nations struggling amid the current global economic headwinds.

There was more: Masaa DMC’s Eman El Hosary talked to the head of the Cairo Center for Economic Research, Abdel Moneim El Said, about Egypt’s participation at the summit (watch, runtime: 9:23 | 6:27) and Fakhry El Fiqi, head of the House Planning and Budget Committee, who touched on the African Union joining the G20 and Egypt’s role in advancing the African Continental Freetrade Area.

ALSO- The Grand Egyptian Museum got airtime after the prime minister’s visit to the site over the weekend to check up on progress. In an interview with Al Hadath Al Youm’s Said Ali (watch, runtime: 6:15), Secretary-General of the Supreme Council of Antiquities Mostafa Waziri said that all of the works will wrap up by October and that it would be ready for opening in November. He declined to provide an official opening date, saying only that “it’s up to decision makers due to global conditions.” Waziri also sat down for an extended interview with Ala Mas’ouleety’s Ahmed Moussa (watch, runtime: 36:11) while Al Hayah Al Youm covered the PM’s visit (watch, runtime: 3:11).

A mixed bag for Egypt in the international press on the morning of 10 September 2023

There’s no single story dominating the global conversation on Egypt this morning. The Washington Post has a look at whether the State Department will withhold part of America’s USD 1.3 bn in military aid to Egypt, while the National notes that veteran publisher and political organizer Hisham Kassem will hear a verdict this week in a defamation case involving a former government minister. Meanwhile, the Economist notes that a court will soon decide whether to allow the government to demolish more of the City of the Dead to make room for a flyover.

More than 6 consortiums interested in north coast solar tender. PLUS: Local wheat, Yalla is heading to KSA, golden licenses in the bag for 4 projects.

ENERGY-

#1- Interest in north coast solar plants: More than six consortiums have expressed interest in the tender for five solar power plants up for grabs on the north coast, Ash arq Busin ess reports, citing a government official. Bidders for the plants include Saudi Arabia’s Acwa Power, Norwegian renewables producer Scatec, Japan’s Toyota, France’s Engie, Al Nowais subsidiary AMEA Power, and British renewables investment company Aquila, according to the news outlet. The consortiums have until 27 September to submit their offers to the Egyptian Electricity Holding Company.

The five concentrated solar power plants will power water desalination plants on the Mediterranean coast . The plants are expected to require a combined USD 270 mn worth of investment and will be built under a 25-year build-own-operate contract. They will have a combined capacity of 250 MW and will help desalinate over 400k cubic meters of water per day.

#2- Our new council for green hydrogen gets ratified: Prime Minister Moustafa Madbouly has issued a decision to set up the council for green hydrogen that was approved by the cabinet late last month. The council is tasked with overseeing the implementation of the government’s green hydrogen strategy. The body will formally be called the National Council for Green Hydrogen and Its Derivatives and will be headed by the PM and featurekey cabinet ministers as well as the heads of the Suez Canal Economic Zone, the General Authority for Investment (GAFI) and the Sovereign Fund of Egypt.

Remember: We still haven’t seen the government’s long-awaited green hydrogen strategy. Cabinet published a list of draft tax incentives in May but we are yet to see the full strategy.

COMMODITIES-

Gov’t falls short of local wheat procurement targets -Asharq: The government procured around 3.4 mn tons of wheat from local farmers during this year’s harvest, down 10% from last year, As harq Busine ss reports, citing government documents it says it has seen. This is lower than the 4 mn-ton target originally set for the 2023 season, which wrapped up in August. The government had hiked prices to EGP 1.5k per ardeb in a bid to increase production and reduce reliance on imported wheat.

Farmers went private: Some wheat farmers sold their harvest to private-sector players, who were offering EGP 1.7k per ardeb, a number of farmers told Asharq. Others have been storing their wheat or using it as livestock feed amid a shortage of corn and other expensive grains,

Fewer crops planted: This year’s season saw some 3.2 mn feddans planted with wheat, down from last year’s 3.65 mn acres, as farmers shift their focus to feed, one government official told the news outlet. Egypt currently has some 4.7 months of wheat in reserve.

FINTECH-

Yalla gears up for Saudi launch: PaySky’s Yalla fintech platform has signed agreements with Saudi’s Alinma Bank, Digital Pay, and a number of financial institutions in preparation to launch its platform in Saudi Arabia later in 2023, the company said Thursday in a press release (pdf). The agreements, announced at an industry conference in Riyadh, will make Yalla’s wide range of electronic payment solutions, including Yalla Super App and Yalla Business, accessible to Saudi individuals and businesses.

What they said: Yalla founder and CEO Waleed Sadek called the entry into Saudi Arabia a “pivotal milestone” for the company, and said it aims to attract 1 mn users there within the first year. The Yalla super app has 2 mn users in Egypt and has been used to process more than 7 mn transactions.

INVESTMENT-

Four projects get their golden licenses: The 500-MW wind farm in Ras Ghareb, Gennvax’s USD 150 mn vaccine factory, Midea Group’s USD 105 mn home appliance factory in Sadat; and BLM & Africa’s EGP 885 mn medical dressings factory formally received their golden licenses at a ceremony on Friday, according to a cabinet statement. The government had p reviously announced that all four projects would receive the single approval licenses, which speed up bureaucratics procedures for priority projects.

TOURISM-

Flydubai to launch daily Dubai-Cairo flight: Dubai-based airline Flydubai will begin daily flights to Cairo’s Sphinx International Airport on 28 October to cater for increasing demand, UAE state news agency WAM reports.

Bookbuilding for Arm + Saudi car rental firm Lumi’s IPOs see strong investor demand

IPO WATCH- #1- Arm IPO 5x oversubscribed: Bankers pitching investors on SoftBank’s initial public offering of Arm say the flotation is more than five times oversubscribed, bankers involved in the book-building process tell the the Financial Times. The strong demand comes as the company tries to position itself as one of the future’s big AI companies in response to concerns about its growth prospects in its core market.

IPO WATCH #2- There’s huge demand for Saudi car rental firm Lumi, which has priced its IPO at the top of the range after last week’s institutional book-building process was 94.5x oversubscribed, it said (pdf) Thursday. The company’s shares will debut on the Saudi stock exchange at SAR 66 apiece, valuing the firm at SAE 3.63 bn. It will raise almost SAR 1.1 bn by selling 16.5 mn shares, equivalent to a 30% stake.

What’s next: The retail component of the offering will take place on 12 September, and the final allocation of the shares will happen on 21 September.

Advisors: EFG Hermes is working as a joint bookrunner alongside Saudi Fransi Capital, which is also the financial advisor, lead manager and underwriter.

ALSO WORTH NOTING-

Another sign of warming Gulf-China ties: Mubadala, one of the largest sovereign investment managers in the Gulf, has opened an office in Beijing as it looks to deepen its investments in China. (Reuters)
Good news for Turkey: Fitch Ratings has revised Turkey’s credit rating from negative to stable, as President Erdogan’s new administration adopts more conventional fiscal and monetary policies to steer the country out of its economic crisis. (Bloomberg)

EGX30	19,376	+0.8% (YTD: +32.7%)
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	11,216	-0.7% (YTD: +7.0%)
ADX	9,691	+0.3% (YTD: -5.1%)
DFM	4,067	+0.2% (YTD: +21.9%)
S&P 500	4,457	+0.1% (YTD: +16.1%)
FTSE 100	7,478	+0.5% (YTD: +0.4%)
Euro Stoxx 50	4,237	+0.4% (YTD: +11.7%)
Brent crude	USD 90.65	+0.8%
Natural gas (Nymex)	USD 2.61	+1.0%
Gold	USD 1,942.70	0.0%
BTC	USD 25,863	-0.1% (YTD: +56.5%)

THE CLOSING BELL-

The EGX30 rose 0.8% at Thursday’s close on turnover of EGP 1.83 bn (13.7% below the 90-day average). Regional investors were net buyers. The index is up 32.7% YTD.

In the green: Telecom Egypt (+4.0%), Fawry (+2.7%) and Eastern Company (+2.6%).

In the red: Ezz Steel (-1.9%), Orascom Development Egypt (-1.4%) and Alexandria Containers and Cargo Handling (-1.2%).

Egyptian president attends G20 leaders summit in New Delhi

President Abdel Fattah El Sisi led a delegation to New Delhi on Saturday to join G20 leaders (minus China’s Xi Xinping and Russia’s Vladimir Putin) for the 2023 leaders summit over the weekend, Ittihadiya said in a statement. Egypt is among the non-G20 countries invited by the hosts India to attend the events this year. The two-day summit ends today.

On his agenda: El Sisi is focusing on issues concerning developing countries, with a focus on Africa, Ittihadiya said. He will stress the importance of “strengthening international efforts to facilitate the integration of developing countries in the global economy in an equal manner,” and adhering to pledges made to the developing world on climate finance.

Yesterday’s meetings were a who’s who of European leaders: El Sisi held one-on-one meetings with European Commiss ion President Ursula von der Leyen and European Council President Charles Michel to discuss bilateral relations and regional issues, including Egypt’s role combating illegal immigration. He also participated in a mini-summit between African and European leaders, during which he called on the international community to work together to solve the rising food insecurity among developing countries.

Also: The president held conversations with global leaders including South African President Cyril Ramaphosa, Brazilian President Lula da Silva, Japanese Prime Minister Fumio Kishida, Chinese Prime Minister Li Qiang, Comorian President Azali Assoumani, and WHO Director-General Tedros Adhanom Ghebreyesus, according to a separate Ittihadiya readout.

ALSO IN DIPLO- Egypt-World Bank talks: Planning Minister Hala El Said met with a World Bank delegation led by the lender’s Human Development Director for the MENA region Fadia Saadah in Cairo yesterday, the Planning Ministry said yesterday. Development programs in Upper Egypt, the ministry’s structural reforms, and the country’s green agenda were all discussed, according to the statement.

CALENDAR

SEPTEMBER

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

10-12 September (Sunday-Tuesday): Sahara agriculture exhibition, Egypt International Exhibition Center, Cairo.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

13 September (Wednesday): Deadline for settling outstanding military service in FX.

15 September (Friday): Ultraibex Wadi Degla Protectorate clean-up event.

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

15 September (Friday): Deadline for applications to EGYAID scholarship program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

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 ElSheikh.

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

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

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

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

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.

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

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 ElSheikh.

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.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

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.

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.

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

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily