CBE bans some prepaid cards from making international transactions

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What We're Tracking Today

Egypt bans some prepaid cards from making international transactions

Welcome to June, folks: Kicking off what is sure to be an eventful month as the government looks to achieve its privatization target, we bring news of a potential IPO on the EGX in the coming weeks and confirmation that our EastMed partners are serious about an Egypt-Cyprus gas pipeline.

But first,

PSA- Some prepaid cards can no longer be used to make international transactions, a central bank source confirmed to Enterprise, after the news was reported in local mediaand circulated widely online. The move by the central bank to stop the use of prepaid cards for foreign-currency transactions only applies to those cards that aren’t linked to bank accounts, the source said — which we understand to include those issued by digital payments companies Klivvr, Nexta, and Telda.

“This will definitely have an impact on us and on other players,” Nexta CEO and co-founder Ahmed Hisham told Enterprise. “However, it’s still [only one] feature of many others that we can offer to our customers,” he added.

IT’S A BRAND NEW MONTH-

PMI: S&P Global will release May’s PMI figures on 5 June.
Foreign reserves: The central bank will publish foreign reserves figures for June next week.
Inflation: Capmas and the central bank should be out with May’s inflation data on 8 June.
Interest rates: The central bank will meet to review interest rates on 22 June.

HAPPENING TODAY-

Fintechs are heading to Hurghada: The three-dayFintech Industry retreat gets underway in Hurghada today.

House committees continue budget discussions:

The Budget Committee will discuss the 2023-2024 budgets for the Holding Company for Spinning and Weaving and General Authority for Freezones and Investment;
The Transport Committee will discuss the budget for the Egyptian Railway Authority;
The Foreign Affairs Committee will review the Foreign Ministry’s budget.

** The Manpower Ministry is going gender neutral: The ministry has been renamed the Labor Ministry following approval of ministers at yesterday’s cabinet meeting.

Sisi gets a call from the head of the IMF: President Abdel Fattah El Sisi received a phone call from IMF Managing Director Kristalina Georgieva yesterday, Ittihadiya said. The two sides discussed the government’s economic reform program and the headwinds facing the economy, according to the statement.

REMEMBER- Egypt is awaiting its first review for its USD 3 bn loan program, which has been on hold for 2.5 months. The IMF is yet to give any indication about when we might expect IMF officials in Cairo for the staff-level review.

EGP WATCH- Credit Suisse is now forecasting a larger fall in the exchange rate due to the slow pace of reforms. In a note picked up by Asharq Business, the Swiss lender now expects the currency to fall to 45-50 against the greenback by the end of August. “The longer the government takes to embark on the long-awaited reform steps, the more severe the market will price in the risk of currency devaluation,” the bank’s chief Middle East strategist Fahd Iqbal wrote in the note.

Followed by a sharp rebound? Following a steep devaluation, the bank expects the currency to rebound to EGP 33-34 against the USD within the coming 12 months.

THE BIG STORY ABROAD-

US debt ceiling deal clears the House: Lawmakers in the House this morning voted through the debt ceiling deal agreed by President Joe Biden and Republican House Speaker Kevin McCarthy earlier this week. The bill cleared the GOP-controlled chamber 314-117 despite vocal opposition among a contingent of Republican lawmakers. The bill needs to be signed into law before 5 June, the date at which the Treasury says the federal government will run out of money and default on its debt. (Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Wall Street Journal | CNBC)

Market reax: US and European equity futures rose as news of the vote came in. In Asia, shares in Japan and Australia rose while the South Korean Kospi was slightly in the red.

Egypt wants loans from the BRICS bank: Finance Minister Mohamed Maait expressed optimism that the New Development Bank — the multilateral lender set up by Brazil, Russia, India, China and South Africa (the BRICS) — will provide Egypt with concessional loans to fund infrastructure projects, according to a statement from the Finance Ministry. This came during the bank’s annual meetings in China, which for the first time included Egypt after it joined the lender earlier this year.

More local-currency financing, less USD: The NDB will raise the amount of financing it provides in local currencies and reduce its use of the USD to protect countries from exchange-rate volatility, bank head Dilma Roussef said at a press conference, according to the South China Morning Post. Currently 22% of the bank’s loans are in local currency, a figure that it wants to raise to 30%, she said.

Egypt has been looking to reduce its reliance on the greenback amid a prolonged shortage of foreign-currency triggered by the spillover effects from the war in Ukraine. Government officials have said they are working to increase the use of the RUB, CNY and INR in bilateral trade with Russia, China and India in a bid to reduce its exposure to the greenback.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications. Today, we run four daily Egypt and MENA-focused publications, five weekly industry verticals, and a weekend lifestyle edition designed to make our readers feel just a bit smarter.

We have tons more in the pipeline — come help us build new publications. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of >250k daily readers by telling stories that matter.

Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.

That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

During the program you will learn:

The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
Business and finance for non-finance people: Whether it's industry jargon or key concepts or simply how to read a balance sheet;
How to construct an Enterprise story: From idea formulation down to the structure, style and tone of writing;
How to develop sources that will give you the key insights needed to tell a complete story;
How to communicate these stories with the confidence and language of an insider.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

CIRCLE YOUR CALENDAR-

Innoxera’s annual EdTech summit is coming to Egypt on 5 June. Sponsored by Classera, the event will bring together experts, innovators, and entrepreneurs in the field of technology and education to discuss innovations in smart learning, with a specific focus on AI. The event will take place at the Royal Maxim Palace Kempinski Hotel in New Cairo. You can register here.

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

An energy company is preparing to IPO on the Egyptian stock exchange, says bourse chief

An energy firm will soon make its debut on the Egyptian Exchange (EGX),EGX boss Ramy El Dokany told CNBC Arabic in an interview, without naming the firm. The bourse hopes to finish listing procedures for the company within a week or two and for trading to commence within the next two months, he said.

A first for 2023: The listing would mark the first for the main index this year after economic headwinds on the back of the war in Ukraine saw the fresh-paper pipeline all but dry up. 2022 saw just two IPOs: Macro Group and Al Khair River for Development and Investment.

Goodbye, EGX50: The exchange is terminating its EGX50 index due to its limited usefulness and will launch a new shariah-compliant index, El Dokany added. The EGX boss previously suggested that the index could launch this summer.

NewMed and partners to build Egypt-Cyprus gas pipeline

A new pipeline project between Cyprus and our LNG plants: The developers of Cyprus’ Aphrodite field plan to build a subsea pipeline linking the offshore gas reservoir to an Egyptian LNG processing facility, according to a statement from NewMed Energy.NewMed, Chevron, and Shell “have submitted an updated plan for development of the reservoir for the Cypriot government’s approval” that includes the pipeline project, the statement reads. The story was also picked up by Reuters.

REFRESHER- Chevron, NewMed and Shell earlier this month began drilling to appraise reserves at Aphrodite,which is thought to contain up to 129 bcm of gas. They said at the time that the appraisal well would take three months to finish. Chevron and Shell are equal 35% partners in the Aphrodite field while NewMed holds 30%. At least 50% of the output is slated for export.

We knew this was coming: Egypt and Cyprus have been talking about laying the pipeline for several years, which Oil Minister Tarek El Molla last year said would be up and running by 2025, though until now the companies working on the field have not disclosed plans to work on the link. Chevron in February reportedly requested permission from Shell to use its underutilized West Delta Deep Marine (WDDM) facilities on Egypt’s Mediterranean coast to process gas from Aphrodite, while NewMed has said it is “committed to finding a way to develop the Aphrodite reservoir via the Egyptian infrastructure and the liquefaction facilities there.”

Is the pipeline replacing a floating terminal? The Times of Israelsuggests the pipeline will replace earlier plans for a floating LNG terminal that would have allowed gas to be processed on-site and exported directly to Europe, bypassing our liquefaction facilities. The statement makes no mention of a floating terminal, but it does call the pipeline “a change to the fundamental project concept from the original plan” that will “accelerate and reduce the cost of development” at the field.

This would be good news for our LNG exports: Alongside a deep push into renewables and hydrogen, Egypt is trying to maximize its exports of natural gas as the EU looks for new energy suppliers to fill the gap left by the loss of Russian fossil fuels. The Oil Ministry is targeting a 40% increase in LNG exports by 2025, the bulk of which will be sent to Europe. BP and the Abu Dhabi National Oil Company (Adnoc) are also bidding for a 50% stake in NewMed — an acquisition in part aimed at building ever-closer gas ties between Israel (which already exports large amounts of gas here for liquefaction and re-export), Cyprus, and Egypt as a trio of gas producers serving European energy demand.

Cyrus wants LNG facilities of its own to transport Israeli gas: Cyprus wants to accelerate building a pipeline to Israel’s natural gas fields and acquire its own LNG facilities to transport it to Europe, the country’s energy minister told Bloomberg earlier this week.

Aur Leasing raises EGP 1.1 bn from securitization

Aur Leasing closes second securitized bond issuance in as many months: The leasing arm of private equity outfit Aur Capital has closed a EGP 1.1 bn securitized bond issuance, Dreny & Partners, the legal firm that worked on the transaction, said in a statement (pdf) yesterday. The three-tranche issuance is backed by a portfolio of Aur Leasing and Factoring’s receivables and is part of a wider EGP 8 bn, three-year program. The firm closed aEGP 790 mn issuance in April. All tranches of the bonds were rated A+ by the Middle East Rating and Investors Service (MERIS).

Advisors: The Arab African International Bank acted as financial advisor, bookrunner, and custodian, it is also the only disclosed subscriber to the transaction. Aur Financial Advisory also acted as financial advisor, while KPMG was auditor. Dreny & Partners provided legal advice.

A good year for securitization: This issuance pushed the total value of securitized bond issuances this year to EGP 15.5 bn, up 35% from the same period last year.

El Sisi signs bills on citizenship, new tourism chambers, and more into law

New rules making it easier for foreigners to get citizenship were signed into law by President Abdel Fattah El Sisi yesterday, according to a decree published in the Official Gazette. El Sisi also ratified bills regulating tourism chambers, cracking down on ‘fake weather news’, and protecting historic manuscripts. Here’s the rundown on the bills that are now official law:

#1- Amendments to the Citizenship Actthat make it easier for some foreigners to become Egyptian citizens and help the state secure much-needed hard currency. The changes will allow foreigners to acquire citizenship by purchasing real estate, investing directly in local projects, or depositing money with the central bank. MPs signed offon the bill last month.

#2- A bill that will strip the power to form and regulate tourism chambers from the Tourism Ministry and place it instead in the hands of the Egyptian Tourism Federation (ETF). The legislation got the nod from the House of Representatives in April.

#3 - A law regulating the General Meteorological Authority which allows fines of up to EGP 5 mn to be handed out for spreading fake weather news, which MPs also passed last month.

#4 - A bill that protects historic, hand-written Egyptian manuscripts by establishing a specialized committee for their preservation, signed off on by lawmakers earlier this month.

Cabinet approves decision granting investors year-long residencies

Ministers greenlight further investment facilities: The cabinet yesterday approveda recentdecision by the Interior Ministry to amend the Investment Act regulations to allow foreign investors to acquire year-long non-touristic residencies when proposing investment plans to the General Authority for Freezones and Investment (GAFI). The residency can then be renewed for six-month or year-long periods depending on how long it takes to establish the business.

Opening up local bank accounts is also getting easier: The amendments will also allow foreign investors to open accounts at local banks while they’re in the process of establishing a new business.

It’s getting easier to pay for industrial licenses:Trade and Industry Minister Ahmed Samir yesterday issued a decision allowing industrial investors to pay for licenses every three or five years, instead of annually, the Industrial Development Authority said yesterday. Owners of high-risk factories will be able to pay every three years and operators of low-risk factories can pay every five years.

Part of a bigger plan: Both moves are part of a series of measures taken by the government last month aimed at boosting foreign investment. The 22 changes encompass bureaucratic reforms aimed at speeding up licensing and improving the transparency of state firms, new financial incentives for certain industries, and legal reforms to improve contract enforceability.

ALSO FROM THE CABINET-

Getting El Enany to Unesco: The cabinet decided to form a group, headed by a representative from the Foreign Ministry, to help former tourism minister Khaled El Enany become Unesco’s next director-general. Prime Minister Moustafa Madbouly nominated El Enany for the position in April. If successful, he would head the organization for a four-year term starting from 2025.

Skoda will carry out train maintenance: Cabinet approved a request from the Egyptian Railway Authority to haveCzech car manufacturer Skoda renovate and maintain Henschel and Adtranz locomotives for a 15-year period as well as help localize the production of spare parts.

Sudan army quits Saudi, US-sponsored peace talks

Sudan army walks away from peace talks:The Sudanese army, headed by General Abdel Fattah Al Burhan, has called it quits on peace talks with the Rapid Support Forces (RSF), ending over three weeks of unfruitful negotiations backed by Saudi Arabia and the US. In a statement yesterday, the army said it suspended talks “due to the rebel militia’s lack of commitment in implementing any of the terms of the agreement and its continuous violation of the ceasefire.” Neither Saudi Arabia or the US have commented publicly on the collapse of the talks.

Three days remain of the ceasefire: A temporary truce agreed during the talks to facilitate humanitarian relief efforts will remain in place until Saturday. The ceasefire has failed to quell fighting in various parts of the country though has allowed a limited amount of aid to reach people on the ground.

Palm Hills Developments’ revenues rise 22% in 1Q 2023

Palm Hills Developments’ (PHD) revenues grew 22% y-o-y to EGP 3.5 bn in 1Q 2023 thanks to a rise in residential sales, according to the real estate developer’s earningsrelease (pdf). Net income after tax and minority interest dropped 14% y-o-y to EGP 252.7 mn as higher financing costs — which more than doubled y-o-y — ate into the company’s margins.

West Cairo drives new sales: New sales grew 22% y-o-y to EGP 6.8 bn, driven by sales in PHD’s West Cairo locations including residential developments Badya and the Crown. Some 69% of new sales in 1Q were in West Cairo, where sales grew 65% y-o-y to EGP 4.7 bn. Sales in Badya alone grew 54% y-o-y to reach EGP 2.9 bn, accounting for 43% of total new sales. Commercial sales dropped 45% y-o-y to EGP 466 mn after the company paused all new commercial launches.

Rising rates hit profit margin: PHD’s borrowing costs surged 145% y-o-y to EGP 368.4 mn during the quarter on the back of sharply higher interest rates. This caused the company’s profit margin to fall to 7% from 10% in 1Q 2022.

Construction spending was up 23% to EGP 1.2 bn as PHD “continues to expand [its] focus on Badya and Palm Hills New Cairo, the company’s largest integrated developments,” said Executive Chairman Yasseen Mansour. “Looking ahead, we are well positioned with high quality assets and product offering complemented by a strong balance sheet and an attractive development pipeline.”

ELSEWEDY ELECTRIC PROFITS SURGE-

Elsewedy Electric’s net income after minority interest rose nearly fourfold to EGP 2.9 bn in 1Q 2023, according to its earnings release(pdf). Revenues climbed 80% y-o-y to EGP 33.3 bn. The strong bottomline growth came on the back of “higher profitability across all business segments, coupled with higher FX gains that partially offset rising financing costs and [operating] expenses,” the release read.

Revenues from the company’s key wires and cables segment nearly doubled to record EGP 17.9 bn during the quarter, accounting for 54% of total revenues. Turnkey project revenues were up 53% y-o-y to EGP 11.6 bn, accounting for 35% of the company’s top line.

What they said: “Our top-line has maintained solid growth as a result of strategic planning and an export driven focus, as we continue to leverage our expansive geographic footprint,” CEO Ahmed El Sewedy said. “This growth, coupled with efficiency measures, has resulted in improved profitability this quarter, as our agile business model allows us to capitalize on the double effect of exports and efficiencies.”

Rotary Foundation launches initiative to curb cervical cancer in Egypt

Rotary launches USD 2 mn cancer initiative: US-based Rotary Foundation has launched a USD 2 mn initiative to curb cervical cancer in Egypt, it said in a statement this week. The initiative aims to vaccinate over 30k girls between the ages of 9-15 against HPV and offer 10k women cervical cancer screenings.

Tarek Nour’s Magdi Yacoub ad gets international recognition: Tarek Nour Communications received an award from Design and Art Direction for its direction of the Magdi Yacoub commercial titled Lonesome Traveller, it said in a statement (pdf).

Post for Investment recognized for innovation: Egypt Post’s investment arm, Post for Investment, won the International Finance Awardfor being the most innovative direct investment company in Egypt, it said in a statement (pdf).

Talk shows cover what happened to prepaid cards + No Tobacco Day

It was a very quiet night on the airwaves to wrap up a more than eventful week. With Kelma Akhira and El Hekaya off for the night, the only news worth noting came from Masa’a DMC and Ala Mas’ouleety.

What happened to prepaid cards? The central bank has instructed a number of digital payment providers to stop their prepaid cards from making foreign-currency transactions. Prepaid cards aren’t linked to bank accounts which opens the door for FX misuse, Masa’a DMC’s Ramy Radwan said (watch, runtime: 3:57), adding that debit and credit cards are working fine. “I hope that in the future these kinds of decisions are officially announced,” he said, explaining that an official announcement will help limit the spread of social media speculation. We have the details in the news well, above.

Yesterday was the World Health Organization’s No Tobacco Day and Masa’a DMC (watch,runtime: 5:43) and Ala Mas’ouleety (watch, runtime: 17:02) took the chance to call on their viewers to quit smoking. “According to latest figures, 16.8% of the Egyptian population are smokers, representing around 18 mn people,” Radwan said. “Egyptians smoke around 80 bn cigarettes a year,” former head of the Egyptian National Heart Institute Gamal Shabaan told Ala Mas’ouleety.

Egypt’s contribution to AI: Radwan interviewed Egyptian AI researcher at Meta Alaa El Nouby (watch, runtime: 7:17) to discuss his contribution to Meta’s ImageBind — an AI model capable of bringing together images and video, audio and text, as well as data from the physical world.

Disruptech to invest USD 5 mn in Egyptian fintechs this year. PLUS: real estate in new cities, delayed customs clearance fees

STARTUPS-

More fintech investment from Disruptech this year: Local fintech fund Disruptech Venturesplans to invest some USD 5 mn in four local fintech startups before the end of 2023, Managing Partner Mohamed Okasha confirmed to Enterprise after the news was first reported by Daily News Egypt. Okasha declined to name the firms.

Where the money’s coming from: The early-stage fintech fund made its USD 36 mn second close earlier this year with investments from various DFIs and investment funds, including the French government's private-sector investment arm Proparco and the International Finance Corporation. Similar amounts were contributed by the government’s Micro, Small, and Medium Enterprises Development Agency and Avanz Capital Management’s Avanz Manara fund, Okasha told us. The fund made a first USD 25 mn close in February 2022.

The fund has deployed some 40% of its capital across 14 startups — including Brimore, Cassbana, Fatura, Gahez, Khazna, MNT Halan, and Mozare3 — and has plans to eventually double the number of firms in its portfolio, Okasha said. It has recently invested in companies including WideBot, iSupply, NiceDeer, Teradix, and MalBazaar, he added. Disruptech buys minority stakes of 5-10% in its portfolio firms and is targeting a 3-4 x return on its investment over the 10-year lifespan of the fund.

REAL ESTATE-

More support for real estate developments in new cities: The New Urban Communities Authority (NUCA) has widened support measures introduced in February to help real estate developers complete projects in new cities through the current economic headwinds, Housing Ministry said yesterday.

What’s happening:

More time: Developers will receive another 20% deadline extension on their projects — even if they’ve already been granted a 20% extension under the previous set of measures or previously paid to push back their deadlines.
Fewer fines: Projects will be considered finished when they are 80% complete, allowing developers to complete the final 20% of construction at their own pace without being fined for late delivery. The ratio was reduced from 90% to 85% in February.
Laxer building regs: The authority is also loosening various rules on the maximum building density of projects and the split between buildings, utilities, and services.

Remember: The move is among the 22 measures announced by the government last month aimed at boosting foreign investment.

REGULATION-

Importers have more time to pay customs fees: Importers can now pay just 1% of the tax and fees required to proceed with the customs clearance process before the arrival of imports, down from 30% previously, according to a Finance Ministry decision published in the Official Gazette. The remaining 99% is to be paid upon the arrival of imports, the statement reads. The decision went into effect on 30 May.

TRANSPORT-

Abela Egypt to run the country’s sleeper trains? The Transport Ministry intends to award catering and services company Abela Egypt — a subsidiary of the Sawiris family’s Gemini Holding — a 15-year contract to manage and operate sleeper cars for the Egyptian Railway Authority, Al Borsa reports, citing sources it says are in the know. Set to be signed next month, the contract would hand Abela 3% of revenues during the first five years, 2.5% throughout the second third of the contract, and 2% throughout the last third, the newspaper reports.

CLIMATE-

Six green projects have graduated from the UK-backed Climate Finance Accelerator, according to a press release (pdf). The companies are: alternative plastics manufacturer Al Dawara, agritech company Farmtopia; sustainable infrastructure developer IRSC for Renewable Energy Solutions; environmental tech firmReNile; eco-friendly building materials startup Tile Green; and climate change and farming app Zr3i.

Fed officials suggest they could pause rate hikes in June

Fed could pause rate hikes in June: Federal Reserve officials are hinting that the central bank will keep rates unchanged for their upcoming meeting in two weeks before potentially raising them again at later meetings, Reuters reported. “Skipping a rate hike at a coming meeting would allow the [Federal Open Market] Committee to see more data before making decisions about the extent of additional policy firming,” Fed Governor Philip Jefferson said yesterday.

Investors are expecting rate cuts later this year: Following April’s inflation figuresinvestorswere expectingthe Fed to cut interest rates to 4.2% by the end of the year but have since revised their forecast to 4.7%.

Spiking interest rates to cause wave of defaults in US, Europe -Deutsche: Companies across the US and Europe will soon be hit with a “default wave” that won’t peak before 4Q 2024, according to a Deutsche Bank study picked up by Reuters. At its peak, default rates are expected to hit 9% for US high-yield debt, 11% for US loans, and 7% for European loans, mainly driven by the aggressive monetary tightening cycles adopted by many central banks in efforts to curb soaring inflation.

ALSO WORTH NOTING-

China recovery stumbles: China's factory activity contracted faster than expected in May due to lower demand, suggesting that its economic recovery from its strict covid-19 curbs could be losing steam. (Reuters)
UK firms are struggling with inflation: UK business confidence declined for the first time in three months on the back of persistent inflationary pressures, according to a survey. (Lloyds Business Barometer)

EGX30	17,496	-0.2% (YTD: +19.9%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,014	-1.1% (YTD: +5.1%)
ADX	9,407	-0.8% (YTD: -7.9%)
DFM	3,577	+0.3% (YTD: +7.2%)
S&P 500	4,180	-0.6% (YTD: +8.9%)
FTSE 100	7,446	-1.0% (YTD: -0.1%)
Euro Stoxx 50	4,218	-1.7% (YTD: +11.2%)
Brent crude	USD 72.66	-1.2%
Natural gas (Nymex)	USD 2.26	-2.8%
Gold	USD 1,981.40	+0.2%
BTC	USD 27,119	-2.4% (YTD: +63.9%)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 3.42 bn. Local investors were net buyers. The index is up 19.9% YTD.

In the green: Elsewedy Electric (+8.6%), Juhayna (+1.9%) and CIRA Education (+1.0%).

In the red: Orascom Construction (-6.7%), Abu Dhabi Islamic Bank (-6.5%), and Mopco (-3.0%).

Egypt, Palestine PMs hold talks in Cairo

Madbouly, Shoukry hold talks with Palestinian PM: Palestinian Authority Prime Minister Mohammad Shtayyeh joined Prime Minister Moustafa Madbouly for discussions on the future of Egyptian-Palestinian relations, cabinet said yesterday. Madbouly pledged Egypt’s support of the Palestinian issue, according to the statement, which carried few details about the talks. Agreements were signed that will see the two sides cooperate on agriculture and the Egyptian Foreign Ministry provide political consultations to the Palestinian Authority. Shtayyeh was in Egypt for a three-day visit that concluded yesterday.

FM Shoukry holds talks with Palestinian counterpart: Foreign Minister Sameh Shoukry discussed Egypt’s latest efforts to help resolve the Palestinian-Israeli conflict with his Palestinian counterpart Riyad Al Maliki, according to a Foreign Ministry statement.

Sisi x Erdogan meeting soon? Diplomatic officials are expecting President Abdel Fattah El Sisi and his Turkish counterpart Recep Tayyip Erdogan to meet soon, the Turkish charge d’affaires in Cairo reportedly told Asharq Business. The two countries earlier this week agreed to “immediately” move to restore ties and reappoint ambassadors following Erdogan’s reelection.

CALENDAR

JUNE

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

June: Egyptian-Saudi business forum.

1-3 June (Thursday-Saturday): Fintech Industry retreat, Hurghada.

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

4 June (Sunday): Senate back in session.

4 June (Sunday): National Dialogue.

5 June (Monday): Innoxera’s annual EdTech summit

6 June (Tuesday): National Dialogue.

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

8 June (Thursday): National Dialogue.

10 June (Saturday): Thanaweya Amma examinations begin.

11 June (Sunday): House reconvenes.

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

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

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

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

19-21 June (Monday-Wednesday): Big 5 Construct, Egypt International Exhibition Center.

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

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

30 June (Friday): June 30 Revolution Day.

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

JULY

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

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

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

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

18 July (Tuesday): Islamic New Year.

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

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

23 July (Sunday): Revolution Day.

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

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

Late July-14 August: 2Q2023 earnings season.

AUGUST

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

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

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

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

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

SEPTEMBER

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

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

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

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

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

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

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

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

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).

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

OCTOBER

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

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

6 October (Friday): Armed Forces Day.

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

Late October-14 November: 3Q2023 earnings season.

26 October (Thursday): Daylight saving time ends.

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

NOVEMBER

November: Cairo to hostIntra-African Trade Fair.

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

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

DECEMBER

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

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

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

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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

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

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

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

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

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

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

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

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

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

2Q 2025: Safaga Terminal 2 to initiate operations.

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