{"id":576904,"date":"2022-11-02T04:00:01","date_gmt":"2022-11-02T04:00:01","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/02\/this-morning-egp-at-24-24-mubadala-energy-to-set-up-a-regional-hq-in-egypt\/"},"modified":"2022-11-02T04:00:01","modified_gmt":"2022-11-02T04:00:01","slug":"this-morning-egp-at-24-24-mubadala-energy-to-set-up-a-regional-hq-in-egypt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/02\/this-morning-egp-at-24-24-mubadala-energy-to-set-up-a-regional-hq-in-egypt\/","title":{"rendered":"THIS MORNING: EGP at 24.24 + Mubadala Energy to set up a regional HQ in Egypt"},"content":{"rendered":"

Good morning, wonderful people, and welcome to another very brisk news day.<\/strong> We have a bit of everything this morning, from M&A to investments in energy, and the imminent release of some goods from customs.<\/p>\n

Also today: <\/strong>It\u2019s PMI and Fed day (as we note below) and the second-to-last business day before COP27 kicks off \u2014 there will be plenty for us to think about together over the next 48 hours before the news storm that is COP begins.<\/p>\n

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MORE OF THIS, PLEASE <\/strong>Mubadala Energy is going to set up a regional headquarters in <\/strong>Cairo<\/strong>, CEO Mansoor Al Hamed told Oil Minister Tarek El Molla. Mubadala Energy (formerly known as Mubadala Petroleum<\/a>) also wants to invest in our renewables and LNG sectors, the Oil Ministry<\/a> said.<\/p>\n

In context: Mubadala\u2019s move underscores the success of the Oil Ministry\u2019s consistent, <\/strong>focused effort to transform Egypt into an <\/strong>energy hub for the Eastern Med<\/a><\/strong>. <\/strong>The Oil Ministry understands long-term planning horizons and has for years helped lead the charge to turn us into a significant exporter of LNG (ours and more from Israel). Together with the Electricity Ministry, officials are now aiming higher, positioning us as the region\u2019s premier energy hub by adding electricity to the mix (we have excess generation capacity and links in place or coming to Europe, Jordan<\/a>, Sudan and Saudi Arabia, among others) and getting into the burgeoning<\/a> green hydrogen and green ammonia markets<\/a>.<\/p>\n

Other industries should follow suit. <\/strong>Our rents, abundance of talent and land, and geographic location make Egypt an ideal base for regional and multinational countries that want to export to (or otherwise do business in) any two of Southeastern Europe, the GCC and Africa. It\u2019s almost like \u2014 if we thought about it and were focused \u2014 we could become a magnet for FDI and exports<\/a>\u2026<\/p>\n

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<\/a> EGP WATCH- The EGP edged slightly lower against the greenback yesterday<\/strong>, slipping another 0.2% to close the day at 24.2417, according to central bank figures. The currency has now fallen 22.6% since the central bank moved to what it called a \u201cdurably flexible\u201d exchange rate last Thursday, and is down 53.6% since the initial devaluation in March.<\/p>\n

PSA #1- The always-on-point Charlie Robertson is doing a talk on his new book, The <\/strong>Time Traveling Economist<\/strong> tomorrow (Thursday, 3 November) at 5pm CLT. The chat will \u201coutline what has held Egypt back in the 20th century and why we should expect a boom time for the economy from about 2025-30 onwards,\u201d Charlie says. The talk is being hosted by the Egyptian Private Equity Association\u2019s Sara Badran and you can sign up here<\/a>.<\/p>\n

PSA #2- There is no rain in the Cairo forecast for today<\/strong> after the surprise showers yesterday in the capital city. Look for a high today of 26\u00b0C in Cairo and Alex (29\u00b0C in El Gouna) and an overnight lwow of around 14\u00b0C.<\/p>\n

HAPPENING TODAY-<\/strong><\/p>\n

It\u2019s PMI day:<\/strong> We\u2019ll know how Egypt\u2019s private sector fared in October tomorrow when S&P Global releases the latest purchasing managers\u2019 index at 6:15 CLT. A 22-month contraction in private sector activity didn\u2019t show signs of abating in September<\/a> as high inflation continued to weigh on demand and output.<\/p>\n

<\/a> The <\/strong>Arab League summit<\/a><\/strong> wraps in Algeria: <\/strong>President Abdel Fattah El Sisi is among the attendees at the regional summit, which will be the first since the start of the covid-19 pandemic two years ago. Attendance isn\u2019t exactly strong this year, with a third of Arab leaders absent from the gathering for various reasons, while a diplomatic spat between the hosts and Morocco mean that the chances of any diplomatic breakthroughs are slim.<\/p>\n

Yesterday:<\/strong> El Sisi discussed COP27 with UN Secretary-General Antonio Guterres on the sidelines of the summit, according to an Ittihadiya readout<\/a> that was otherwise short on details.<\/p>\n

Adipec 2022<\/a><\/strong> continues in Abu Dhabi:<\/strong> Expect more headlines today from Oil Minister Tarek El Molla who is in the Emirati capital for the oil and gas expo. Highlights from day two of the conference:<\/p>\n