Analysts and investors upbeat on Egypt’s economy as proceeds from Ras El Hekma sale enter state coffers

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What We're Tracking Today

Kuwait Finance House is in the running for United Bank acquisition

Good morning, wonderful people, and welcome to the last workweek before Ramadan, which we expect to begin on Sunday, 10 March or Monday, 11 March.

(Our money is on the Monday after the National Research Institute for Astronomy and Geophysics called the ball.)

On everyone’s mind: Is this the week the central bank takes action on the EGP? It’s anyone’s guess. We wouldn’t have been surprised for it to have taken place last Thursday. This morning wouldn’t surprise us, either. But a small part of us thinks the Sunday before Ramadan is just as likely — kick things off when the banks move to Ramadan hours to make things a bit more manageable.

One way or another: International sentiment on Egypt is improving, according to analysts we spoke with over the weekend. (More on that later this week.)

That all suggests Egyptian companies could have an easier time of it (and a bit more investor interest) when they head to the EFG Hermes One on One, which gets underway tomorrow morning in Dubai and runs through Thursday.

The One on One will see some 670 investors from 250 global institutions meet face-to-face with senior execs from more than 215 companies in industries spanning from food and fintech to banking and petrochemicals. Companies from 29 countries will be attending.

We’ll have coverage for you on the ground starting Tuesday and continuing into next week.

** If you’re in Dubai and want to have coffee or pitch us on an interview, hit us up on 1x1@enterprisemea.com.

WATCH THIS SPACE-

#1- KFH confirms United Bank interest: The Kuwait Finance House (KFH) has submitted anon-binding offer to get the required data on central bank-owned lender United Bank for assessment, the group said on Thursday in a disclosure (pdf). The group still hasn’t submitted a final offer.

ICYMI- Asharq Business said last week that KFH and Qatar Islamic Bank (QIB) have completedtheir due diligence for United Bank in December. The unconfirmed report put the odds in QIB’s favor seeing as it seeks to enter the Egyptian market. United Bank was listed in the lineup of state companies and assets earmarked for privatization in February 2023.

#2- AFC to back Egypt’s upcoming bond issuance: The African Finance Corporation (AFC)plans to support Egypt’s upcoming international bond issuance, be it through strengthening its position or investing in the bonds, AFC Executive Director for Financial Services Sanjeev Gupta told Asharq Business. Gupta added that the AFC is holding talks with the Madbouly government to look into ways to support the central bank's FX requirements.

#3- Middle East tensions to impact aviation giants’ capacity growth in 2024:International Airlines Group and Air France-KLM Group have warned that the ongoing tension in the Middle East will constraint capacity growth throughout the year, as Israeli aggression on Gaza and the repeated Red Sea attacks scare away public and corporate flights, writes Bloomberg. The tension has caused flights to Egypt and Jordan to dry up, Air France-KLM said.

HAPPENING TODAY-

#1- Shoukry is in Riyadh: Foreign Minister Sameh Shoukry is in the Saudi capital today as part of a two-stop Gulf trip, which first saw him visit Qatar. While in KSA, the minister will participate in a consultative meeting between Egypt and GCC members, which will address “frameworks of consultation and coordination between Egypt and the Gulf states at the political and economic levels, as well as means to develop and enhance areas of cooperation between the two sides,” according to a Foreign Ministry statement.

#2- It’s the last day of the Egypt Health Tourism International Conference hosted by the Emigration Ministry. The conference, which kicked off yesterday, is bringing together government officials and medical, tourism, and medical tourism professionals to discuss ways to make Egypt a medical tourism destination.

#3- The Senate is back in session following a two-week break: The senate will reconvene today and tomorrow to discuss a draft law on social solidarity and cash-based subsidies that seek to unify all forms of cash-based subsidies into one system.

CIRCLE YOUR CALENDAR-

#1- You can now apply to the Australian government’s master’s scholarship program,Australia Awards. The scholarship program, which grants funding for Egyptian, Sudanese, and Eritrean citizens to study climate change, agriculture and food security, mining and energy, foreign policy and international security, and gender, disability, and social inclusion, according to a statement (pdf). Applications are open until 30 April, 2024, and women, people with disabilities, and marginalized groups are encouraged to apply. You can find out more about the program here and apply here.

#2- Flat6Labs, Organon kick off round two offemtech accelerator program:Applications are open until 16 May to join the second round of the Women’s Health Accelerator Program (pdf) run by Flat6Labs and women’s healthcare firm Organon. You can register at this link.

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

RED SEA WATCH-

Abandoned ship struck by Houthislast month sinks: The UK-owned Rubymar that was carrying 41k tons of fertilizers has sunk in the Red Sea, the Yemeni government said, warning of an “environmental catastrophe” in the Red Sea and calling Houthi attacks a “threat to international peace and security,” the state news agency Saba reports.

This is the first time that a ship targeted by the Houthis has sank and could further hike up ins. premiums for shipping companies operating in the area and divert ships from sailing through the Suez Canal.

SPEAKING OF SUEZ CANAL RECEIPTS-The Suez Canal has lost over USD 700 mn in revenue since the start of the war onGaza compared to the same period a year earlier, according to estimates from Bloomberg Intelligence that were cited by Asharq Business.

WARWATCH-

Israel massacre of over 100 Gazans waiting for aid sparks international outcry: Israeli forces shot dead at least 112 Palestinians and wounded at least 280 in Gaza as they waited for aid delivery on Thursday. When asked if the massacre will complicate ceasefire talks, US President Joe Biden told reporters, “I know it will,” who called the matter “tragic and alarming” on calls with President Abdel Fattah El Sisi and the Qatari Sheikh Tamim Bin Hamad Al Thani. El Sisi warned Biden of the dangerous consequences of Israeli targeting of civilians on their call. France, Germany, the UK, and other nations have called for an international inquiry into the event.

Ramadan truce up in the air: Reuters claims that two Egyptian security forces officials told the newswire that Israeli and Hamas delegations are expected to arrive in Cairo today to reconvene talks through mediators on a permanent ceasefire in Gaza, but another source said Israel would not send a delegation until it receives a full list of hostages who are still alive.

THE BIG STORY ABROAD-

In an otherwise quiet morning for business news, Elon Musk is once again in the headlines —and for once it’s not because of one of his social media posts. Three law firms that successfully argued on the behalf of shareholders that Tesla CEO Elon Musk’s USD 56 bn pay package was excessive are now seeking USD 6 bn in Tesla shares in legal fees. (Reuters | Financial Times | The Guardian | Wall Street Journal)

“We recognize that the requested fee is unprecedented in terms of absolute size,” the three law firms said in a filing.

ALSO FROM THE MUSKOSPHERE-Musk has filed a lawsuit against Microsoft-backed OpenAI and its CEO Sam Altman, accusing the company of abandoning its original purpose of developing artificial intelligence "for the broad benefit of humanity" and pursuing financial gains instead. (Reuters | Financial Times | Bloomberg | The Guardian)

Investors turn more bullish on Egypt’s economy as proceeds from Ras El Hekma sale enter state coffers

The USD 35 bn Ras El Hekma sale has led to a strong shift in Egypt’s economic outlook, with once bearish investors and credit rating agencies now changing their forecasts for the economy. The EGP has continued to recover on the parallel market following the announcement that Egypt’s FX reserves have seen a significant boost over the last few days from the first trances of money ADQ that some believe will help support the long-awaited currency devaluation and pave the way for further external financing and economic reforms.

HOW MUCH HAS THE GOV’T COLLECTED FROM THE SALE?-

On track to receive USD 15 bn within a week of the agreement signing: Egypt receivedUSD 10 bn for the Ras El Hekma agreement over the weekend — a USD 5 bn transaction was made on Tuesday followed by a similar one on Friday — Prime Minister Mostafa Madbouly announced in cabinet statements (here and here). A third tranche of USD 5 bn will be rolled from a previous UAE deposit at the CBE, Madbouly added. Meanwhile, the remaining USD 20 bn from the agreement will be deposited within the next two months — USD 6 bn of which will be from existing UAE deposits at the CBE.

Wait, there’s more? The government also received USD 520 mn on Thursday as part of the USD 800 mn sale of seven historic hotels to Talaat Moustafa Group’s Icon Investments after the acquisition of a 51% stake in the hotels was finalized last month.

There’s also good news on the NDFs front: The EGP once again strengthened in the market for twelve-month non-deliverable forwards (NDFs) to reach 50 against the USD on Friday, down from the high fifties recorded last week, Asharq Business reported.

FITCH RATINGS WEIGHS IN-

Fitch sees Egypt’s FX liquidity improving following Ras El Hekma agreement: FitchRatings thinks that the agreement will “significantly improve” Egypt’s external financing position and its FX liquidity, paving the way for an adjustment of its exchange rate with a limited magnitude and a lower risk of currency overshooting. This would, in turn, enable Egypt to access an enhanced support package from the International Monetary Fund. “The scale of the FDI is large relative to Fitch’s expectations when we downgraded Egypt’s rating to ‘B-’, from ‘B’, with a Stable Outlook in November 2023,” the rating agency said on its website.

This doesn’t mean we’re off the hook just yet: Fitch sees Egypt’s macroeconomic situationremaining difficult for the next two fiscal years due to high inflation and weak growth levels, despite expecting annual inflation to cool in 2H 2024. The rating agency also sees pressing fiscal challenges to remain, expecting interest costs to exceed 50% of government revenues in FY 2024-25.

What else did they say? “The [Ras El Hekma agreement] provides much needed breathingroom for Egypt’s external finances and an opportunity to restore confidence, but the durability of the improvement will depend on the implementation of reforms to prevent renewed imbalances, such as a more flexible exchange-rate regime and policies to develop a more competitive export sector.”

ARQAAM CAPITAL’S VIEW ON EGYPT-

Arqaam Capital urges Egypt to act on FX adjustment: With the Ras El Hekma sale signedand the IMF agreement coming closer to fruition, Egypt should act on the FX adjustment in order to restore investors confidence, Senior Fixed Income Portfolio Manager at Arqaam Capital Fady Gendy said during an interview with Bloomberg. While Egypt has the needed “firepower” to go ahead with a full float, Gendy expects to see the EGP devalued to 40-45 against the USD.

What he said: “We've seen how delays in reforms by Egypt in the past have cost EgyptEurobond market access and have also weighed on valuations of Egypt's [USD] bonds. More recently, we've become more bullish on Egypt as we felt that the country has increased in its geopolitical importance.”

IMF AGREEMENT INCHES CLOSER AND CLOSER

Egypt’s agreement over an expanded IMF loan program is “close,” Yellen says: US Treasury Secretary Janet Yellen told Reuters on Thursday that Egypt is inching closer to finalizing an agreement with the International Monetary Fund over expanding its current USD 3 bn loan program without giving further details. She also said that the US is “supportive of the IMF helping Egypt.”

Remember: The IMF has been hinting that an expanded loan program with Egypt would beready soon, with IMF Managing Director Kristalina Georgieva saying that a finalized package would be ready “in a few short weeks” during the World Governments Summit in early February.

South Korea’s SK ecoplant to build USD 2 bn green ammonia plant in Egypt

Details emerge on South Korea’s plans to set up a green ammonia plant here:South Korean construction and plant operation company SK ecoplant will work with China’s state-run construction giant China State Construction Engineering Corporation (CSCEC) to build a green hydrogen and green ammonia plant in the Suez Canal Economic Zone (SCZone), according to a statement from the company, which helped add color to a cabinet statement released last week. The companies will set up and use 778 MWs of renewables — 500 MW of solarenergy and 278 MW of onshore wind energy — to produce 50k tons of green hydrogen and 250k tons of green ammonia a year by 2029, when the project is slated to be fully operational.

ICYMI: SK ecoplant was one of seven international and local companies to ink MoUs with anumber of state bodies to develop green hydrogen and renewable energy projects in the SCZone over the next ten years, worth a combined USD 41 bn.

The price tag? The project is expected to cost KRW 2.6 tn (c. USD 2 bn).

What’s next?The Madbouly government will soon allocate a plot of land for the project, afterwhich the two companies will be able to conduct their feasibility studies and then decide on the exact size and timeline of the project.

Part of a wider plan: SK ecoplant and CSCEC last year inked an MoU to “dominate the globalrenewable energy market” and work together on global renewable energy projects in Asia and Africa.

B Investments granted more time to submit MTO for OFH. PLUS: Agthia ups stake in Abu Auf, Basata acquires Jordanian fintech stake

It’s a busy day for acquisitions, with Egyptian companies acquiring stakes overseas, foreign companies upping their stakes in Egyptian companies, and — for good measure —Egyptian companies trying to acquire other Egyptian companies.

B INVESTMENTS’ MTO FOR ORASCOM FINANCIAL KICKS OFF TODAY-

Orascom Financial Holding (OFH) shareholders have 30 trading sessionsstarting today to respond to B Investments’ bid to acquire up to 90% of the company via a share swap. The Financial Regulatory Authority agreed on Thursday to extend the MTO to be run from today until 15 April, according to an EGX disclosure (pdf).

Remember: B Investments’ board in December agreed to a share swap ratio of one BInvestments share for every 56.76 OFH shares. To enable the swap, the board approved raising its issued share capital from EGP 800 mn to EGP 1.2 bn through the issuance of 75 mn shares at a par value EGP 5 per share. The board also put the share premium per share at EGP 20.22 to accommodate the share swap ratio. The FRA approved the MTO last week.

In the making since last summer: B Investments had approved a plan to submit the MTOback in June, but requested a deadline extension in September.

AGTHIA UPS STAKE IN ABU AUF-

UAE’s Agthia has acquired an additional 10% in Abu Auf parent company for EGP 691 mn (c. USD 22 mn),bringing its total share in the Egyptian snack and coffee company to 70%, according to an ADX disclosure (pdf) from Agthia. Food and beverage firm Agthia acquired a 60% stake in Abu Auf in 2022.

BASATA ACQUIRES STAKE IN JORDANIAN FINTECH PLAYER-

Basata, Jordan Kuwait Bank to snap up 30% of MadfoatCom:Fintech platform BasataHolding for Financial Payments and Jordan Kuwait Bank have put forward a binding offer to acquire a 30% stake in Jordanian bill payment provider MadfoatCom, according to a statement (pdf) from Basata. Madfoatcom’s shareholders have accepted the offer and it is now pending regulatory approval in Jordan. The value of the acquisition was not disclosed.

What they said: “We are excited to be part of this unique transaction which will enhanceregional cooperation between Jordan and Egypt,” Jordan Kuwait Bank CEO Haethum Buttikhi said.

Redcon Properties inks EGP 925 mn syndicated factoring agreement

Redcon Properties signs the country’s first joint factoring agreement: Real estate developer Redcon Properties has inked an EGP 925 mn syndicated factoring agreement with a number of local non-bank financial institutions, according to a statement (pdf) by Beltone Holding, which led the transaction through its subsidiary Beltone Leasing and Factoring. The agreement is the “factoring product of its kind in Egypt,” said Beltone Leasing and Factoring CEO Amir Ghannam.

The players on board: Beltone Leasing and Factoring contributed some EGP 412.5 mn, while the remaining EGP 512.5 mn came from Cairo Leasing Corporation, Enmaa Finance, Misr Finance, and Aur Leasing and Factoring. Banque Misr acted as the escrow agent.

Where will the money go? Redcon Properties will use the funds to expedite construction on its Golden Gate project in the Fifth Settlement, CEO Tarek El Gamal said.

Redcon has big expansion plans: The company is looking into setting up sustainable residential complexes on the North Coast and in the Fifth Settlement. Redcon Properties also plans to ink contracts worth some EGP 18-20 bn this year, Redcon Properties Vice Chairman Ahmed Abdallah told us last month.

What they said: "Signing the first joint factoring agreement in Egypt represents a milestone in the real estate industry,” said Abdallah. “It makes us the first real estate development company to use this non-banking financial tool to finance our projects, opening the door for its use by other companies in the future to contribute to the sustainable growth of the real estate sector.”

SODIC ups funds allocated for 2024 projects 66% in anticipation of real estate sector boom following Ras El Hekma announcement

SODIC allocates over EGP 10 bn to accelerate its projects this year: Upmarket real estate developer SODIC has allocated some EGP 10 bn to accelerate the completion of its projects this year, Asharq Business reports. This reflects a 66% from the funds allocated for construction projects last year.

The firm will also reopen sales of its units in many of its developments in the coming days, after having suspended its sales in November due to instability in the real estate market complicating the pricing of units, SODIC General Manager Ayman Amer told the outlet.

This could signal a major shift in the developers’ sentiments on the market: The rate of price increases of building materials began to decline following the government’s announcement of the Ras El Hekma agreement last Friday, according to Asharq Business. SODIC, like many other real estate developers, had been hedging against price fluctuations by purchasing raw materials in bulk, spending a total of EGP 2 bn for its needs in 2024, Amer said.

Cabinet approves EU + EIB financing, new golden license, green hydrogen consultant

Soft financing from the EIB, grant from EU get greenlight from ministers: Thecabinet, during its latest weekly meeting, approved EUR 135 mn in soft financing from the European Investment Bank (EIB) and a EUR 30 mn grant from the EU, according to a cabinet statement. The funds will help finance the Sustainable Green Industry project.

Golden license granted: Limited liability company ICE LINX has been handed a goldenlicense to build and operate an 100% export-orientated food processing and packaging plant with investments of up to EGP 204 mn in New Borg El Arab. The factory is slated to be fully operational by the end of the year and its products will meet a 50% local component quota.

Green hydrogen consultant wanted, apply within: The Sovereign Fund of Egypt’s request to contract a specialized international legal consultant to oversee the drafting of green hydrogen contracts got the cabinet greenlight.

E-Finance, GB Corp report 2023 results

GB Corp and e-Finance are out with their earnings for 2023: e-Finance celebrated a record year, while GB Corp’s release showed it had a solid year after taking into account its 2022 MNT-Halan stake sale.

E-FINANCE REVENUES AND BOTTOMLINE UP IN 2023-

A record high year for e-Finance: State-owned fintech player e-Finance saw its net income after non-controlling interest rise 56% y-o-y to a record-high EGP 1.3 bn in 2023, according to its latest earnings release (pdf). Revenues jumped 48% y–o–y to EGP 3.9 bn in 2023, which the company attributes to “broad-based expansion across the group’s subsidiaries.”

On a quarterly basis: Revenues rose 61% y-o-y to EGP 1.1 bn in 4Q 2023. Meanwhile, netincome after NCI fell 9% to record EGP 110.3 mn.

Driving the trend: Subsidiary e-Finance Digital Operations contributed the lion’s share of the group’s revenues for the year, making up 90% of the total count. The subsidiary saw its revenues increase 46% y-o-y to EGP 3.5 bn in 2023 “on the back of solid results in its cloud hosting services, its transaction revenue, as well as its build and operate services.”

What they said: “With strategic decisions, our extensive network of partnerships, andinnovative solutions, we are well positioned to capture opportunities and drive growth. I am confident that e-finance will not only maintain its robust performance but also create increased value for the group and its shareholders in the coming year,” Chairman Ibrahim Sarhan said.

GB CORP’s 2023 REVENUES, INCOME DOWN AFTER 2022 MNT-HALAN SALE-

GB Corp net revenues dipped 5% y-o-y to EGP 28.3 bn last year, while thecompany’s net income fell some 81% y-o-y to EGP 1.9 bn, which it attributed to “the capital gain from the sale of a 7.5% stake in MNT-Halan ” realized in the last quarter of 2022, according to its earnings release (pdf).

Always read the small print: Excluding these gains in 2022, GB Corp’s topline rose 12% y-o-y during 2023, while its bottomline was up 6% y-o-y.

On a quarterly basis: The EGX-listed company’s revenues were up 27% y-o-y in 4Q 2023 torecord EGP 8.8 bn, while its net income for the quarter was down 93% y-o-y to EGP 620 mn.

The details: The company’s automotive assembly and distribution unit GB Auto — whichcontributed 84% of the company’s revenues — saw its revenues up 10% y-o-y in 2023 to EGP 23.9 bn, “underpinned by robust consumer demand and price-mix tailwinds, against a backdrop of supply shortages,” the company said. Revenues from passenger cars rose 127% y-o-y during 4Q 2023 and 3% y-o-y in the year as a whole, mainly driven by “improved pricing and an enhanced product mix supported by GB Auto’s local assembly business.”

EFG Hermes leads EGX brokerage league table in February

EFG Hermes topped the EGX brokerage league table in February, with a marketshare of 14.2%, according to EGX figures (pdf). Thndr Securities came in second (8.4%), followed by CI Capital (7.3%), Mubasher Securities (5.6%), and Arabeya Online (4.2%). EFG had a monopoly over the top spot every month, but one last year.

Vicat Egypt’s Sinai Cement appoints Tamer Ragheb as chairman

New chairman at the helm of Sinai Cement: Vicat Egypt’s EGX-listed subsidiary SinaiCement has appointed Tamer Ragheb (LinkedIn) as chairman following the resignation of Mohamed El Kady, the company said in an EGX disclosure (pdf). Ragheb enters the role following a five-year stint as the company’s managing director. His career of over two decades also saw him serve as group CFO of mining outfit ASCOM. His appointment is yet to be approved by the general assembly.

Taking over from Ragheb: Pietro Calà (LinkedIn), the regional director of Vicat in India andKazakhstan, has been appointed as managing director of Sinai Cement in place of Ragheb. Calà has been with Vicat for 20 years, during which he also served as country manager of Vicat in Kazakhstan and managing director of the company’s unit in Italy.

More Emirati investments coming for the North Coast?

The promise of more Emirati investment once again captured the imagination of some of the nation’s talking heads on the airwaves last night. On a more solemn note, the nation’s hosts also turned their attention to the tragic death of Arish University student Naira Salah, which got considerable airtime across the channels yesterday.

The North Coast is on Al Habtoor’s radar: Emirati businessman and CEO of Al Habtoor Group Khalaf Al Habtoor told Ala Mas’ouleety’s Ahmed Moussa that he is looking to invest in the North Coast and voiced his admiration for the region (watch, runtime: 57:24). Al Habtoor also confirmed that he intends to set up one to two schools in Cairo.

The Public Prosecution ordered the exhumation of Arish University student Naira Salah’s body for an autopsy to determine the cause of death amid reports of alleged foul play. Salah was reportedly blackmailed by a fellow student at the dormitory of the veterinary faculty before her tragic passing last Saturday, reportedly from poisoning. The story got coverage on Kelma Akhira (watch, runtime: 8:08), El Hekaya (watch, runtime: 26:24), and Ala Mas’ouleety (watch, runtime: 17:22).

Ras El Hekma isn’t just making the news in Egypt

Ras El Hekma is once again leading the conversation on Egypt in the international press: Bloomberg and the DW are both out with pieces dissecting the transaction and what it means for Egypt’s tourist inflows and its “struggling economy.” DW described the transaction as a “turning point in the worst economic crisis Egypt has dealt with in decades.”

** We’ve got the latest updates on the Ras El Hekma agreement, and what it means for the economy and devaluation prospects in the news well, above.

CBE issues tighter regulations for financial leasing firms. PLUS: Hassan Allam + Sumou Holding JV, Magic Land Al Hokair, EGP 1.1 bn entertainment project, China hands over satellite center, EGP 1 bn auto assembly plant

REGULATIONS-

CBE tightens controls over financial leasing: The Central Bank of Egypt has issued a fresh batch of regulations targeting the financing provided to financial leasing firms from banks, in a bid to better govern the funds given to financial leasing firms and mitigate associated risks, according to a statement (pdf).

The details: Under the regulations, the total credit facilities and investments made in the securitization portfolios of leasing companies should not exceed 5% of the bank’s total portfolio of loans and credit facilities and no more than 1% of a bank’s credit portfolio can be granted to a single financial leasing company.

AUTOMOTIVE-

A new assembly plant in the pipeline: Local car distributor El Safa Automotive plans toset up an EGP 1 bn assembly plant in Borg El Arab, which will have a capacity of 3k car a year when it goes online in 4Q 2024, the company’s executive director, Nour Eldin Mohamed, told Asharq Business. The plant will have a capacity of 25k cars a year within five years of starting operations.

Part of a wider plan: This comes as part of the firm’s plans to invest EGP 2 bn in the localmarket over the coming five years.

REAL ESTATE-

Saudi-Egyptian real estate JV in the works: Local real estate giant Hassan Allam Properties has inked a MoU with Saudi real estate player Sumou Holding to set up a JV to open up cross-border investments for the companies in Egypt and Saudi Arabia and to share expertise between the two companies, according to a statement (pdf) from Somou Holding subsidiary Adeer International Egypt.

LEISURE-

Magic Land Al Hokair launches EGP 1.1 bn entertainment project: Saudi-Egyptian company Magic Land Al Hokair — a joint venture between Saudi Arabia’s Al Hokair Group, Egyptian Media Production City (EMPC), and local developer Al Kayan Developments — has launched an EGP 1.1 bn integrated entertainment destination dubbed Tanza, according to a statement (pdf) from the company. Al Hokair group has also requested its usufruct contract to be extended to 2078 from 2058, according to Al Borsa.

In detail: EMPC has given Magic Land Al Hokair the right to its land to build and launch the 2.5 sq. km project encompassing seven entertainment zones — including a dolphinarium, forest, cinema and theater, kid’s area, sports games, racing, and adventure-based attractions — that will “redefine the entertainment industry in Egypt” and attract more tourists and investors from across the globe, the statement reads. The company will finish opening the seven entertainment zones in 1Q 2024 and then launch similar projects in other governorates, Tanza CEO Mahmoud Jaber told Al Borsa.

TELECOMS-

China delivers satellite assembly center: China officially handed over theChinese-backed satellite assembly, integration and test center to the Madbouly government last week, according to a cabinet statement. The Chinese grant-funded project was completed in June of last year.

UK companies push for higher CEO pay to rival the US

Let the transatlantic salary wars begin: UK boards are increasingly boosting CEO pay to match those of their US counterparts in a bid to attract and retain top execs, the Financial Times reports.

Sign of the times: The trend signals a shift in attitude among UK executives, boards, and investors who were once reluctant to engage in salary wars. “When you look at standards for compensation around the world, the US is in a different place,” said London Stock Exchange Group CEO David Schwimmer. “And that is an issue companies competing on a global basis from a base in London need to take into account.”

Warning shots: Among CEOs leaving the UK in search of larger salaries stateside was Laxham Narasimham who left a USD 7.5 mn role at the UK’s Reckitt Benckiser in 2022 to head Starbucks in the US for USD 28 mn a year — a nearly 4x salary increase.

But understandably, not everyone is on board: “All increasing increasing executive pay is likely to do is increase the pay packages of some of the richest people, while doing nothing to tackle the fundamental issues underlying the UK’s economic woes,” a spokesperson for the thinktank High Pay Centre told the salmon-colored paper.

EGX30	28,964	+0.3% (YTD: +16.4%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	21.25% deposit	22.25% lending
Tadawul	12,631	+0.2% (YTD: +5.5%)
ADX	9,279	+0.3% (YTD: -3.1%)
DFM	4,357	+1.1% (YTD: +7.3%)
S&P 500	5,137	+0.8% (YTD: +7.7%)
FTSE 100	7,683	+0.7% (YTD: -0.7%)
Euro Stoxx 50	4,895	+0.4% (YTD: +8.3%)
Brent crude	USD 83.55	+2.0%
Natural gas (Nymex)	USD 1.84	-1.3%
Gold	USD 2,095.70	+2.0%
BTC	USD 61,946.48	-1.0% (YTD: +46.7%)

THE CLOSING BELL-

The EGX30 rose 0.3% at Thursday’s close on turnover of EGP 4.8 bn (3.3% below the 90-dayaverage). Foreign investors were net sellers. The index is up 16.4% YTD.

In the green: Ezz Steel (+8.9%), Eastern Company (+6.7%) and Alexandria Containers and Cargo Handling (+6.3%).

In the red: Juhayna (-4.7%), Telecom Egypt (-4.7%) and Madinet Masr (-4.6%).

CALENDAR

2024

MARCH

2-3 March (Saturday-Sunday): The Emigration Ministry’s International Health Tourism Conference at the St Regis Almasa Hotel, New Administrative Capital.

7 March (Thursday): Deadline to apply to Shalateen Mining Company’s international gold exploration tender.

10 March (Sunday): First day of Ramadan (TBC).

20 March (Wednesday): End of sugar export ban.

28 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 March (Thursday): Industrial Development Authority to close applications for 1 mn sqm of land in 10 different governorates.

29 March (Friday): Egypt removed from JPMorgan Chase’s Emerging Local Markets Index Plus.

APRIL

1 April (Monday): Deadline to bid for 23 blocks in an international oil and gas tender.

9 April (Tuesday): Eid El Fitr (TBC) (national holiday).

15-21 April (Monday-Sunday): The IMF / World Bank Spring Meetings.

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC) (national holiday).

28 April (Sunday): Grace period to ins. brokerage firms to comply with Law 215 for 2023 expires.

28-29 April (Sunday-Monday): Saudi Arabia hosts a World Economic Forum (WEF) meeting on ‘global collaboration, growth, and energy.’

29 April (Monday): The government’s car export scheme expires.

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC) (national holiday).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

20 May (Monday): Malaysian Palm Oil Forum in Cairo, with attendance from Malaysian Plantation and Commodities Minister Johari Abdul Ghani.

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

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC) (national holiday).

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

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

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

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

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

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

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

DECEMBER

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

EVENTS WITH NO SET DATE

January 2024: The Red Sea Ports Authority is set to finalize an agreement with the Abu Dhabi Ports Group for the operation and maintenance of the tourist passenger terminal in the Sharm El Sheikh Sea Port.

February 2024: Egypt will sign a USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC).

February 2024: Funds from the Islamic Development Bank for the high speed electric railway will get the sign off.

April 2024: President Abdel Fattah El Sisi will visit Turkey.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

1Q 2024: The government is set to finalize the sale of the Gabal El Zeit wind farm.

February-May: The Grand Egyptian Museum could officially open to visitors.

March 2024: The USD 2.7 bn MIDOR Refinery is set to begin full operations.

May 2024: Arab Finance Ministers’ meeting at Egypt’s administrative capital.

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.

1H 2024: The European Union is set to hold an investment conference in Egypt during spring.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

November 2024: Egypt to host the World Urban Forum (WUF12).

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

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

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