{"id":588988,"date":"2023-06-20T00:00:00","date_gmt":"2023-06-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/20\/is-a-qatari-investor-about-to-snap-up-a-stake-in-the-state-owned-hotels-company\/"},"modified":"2023-06-20T00:00:00","modified_gmt":"2023-06-20T00:00:00","slug":"is-a-qatari-investor-about-to-snap-up-a-stake-in-the-state-owned-hotels-company","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/20\/is-a-qatari-investor-about-to-snap-up-a-stake-in-the-state-owned-hotels-company\/","title":{"rendered":"Is a Qatari investor about to snap up a stake in the state-owned hotels company?"},"content":{"rendered":"

Good morning, wonderful people, and happy Tuesday. <\/span>The news cycle is giving us a slight <\/span>but well-earned breather this morning after a hectic start to the week. <\/span><\/p>\n

Our eyes are peeled for any official confirmation of which days will be<\/span> off next week to mark the Eid Al Adha holiday.<\/span> Dar Al Ifta confirmed earlier this week that the first day of Eid is next Wednesday, 28 June, which means that the Wa\u2019fa \u2014 which is also given as a day off \u2014 will fall on Tuesday. <\/span><\/p>\n

THE BIG STORY here at home this morning: There\u2019s more from the state privatizatio<\/span>n program. <\/span>Ezz Steel has once again denied any knowledge of a potential stake sale by the government in its subsidiary Ezz Dekheila Steel; Meanwhile, murmurs abound of progress on potential sales in the state-owned hotels company and oil contractor Egyptian Drilling Co. That, and consumer finance firm valU is out with one of the biggest securitization issuances so far this year. Scroll on for more. <\/span><\/p>\n

PLUS- Tennis star <\/span>Mayar Sherif<\/a><\/span> is now the highest-ranked Egyptian in <\/span>Open era history:<\/span> Sherif is now the world #31<\/span> after she snagged <\/span>the Valencia Open<\/a><\/span> in straight sets yesterday, beating Spanish hopeful Marina Bassols Ribera. Sherif\u2019s victory is her second in as many weeks after she came out on top at the Makarska Open in Croatia earlier this month, and brings her total WTA trophies to six. \"I came from Makarska with very good momentum and I wanted to take advantage of it,\" Sherif said, \"I felt very comfortable from the beginning of the tournament and I think that was reflected in the fact that I didn't lose a set in any match.\" <\/span><\/p>\n

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The Enterprise Finance Forum is our flagship gathering \u2014 the one so many of you have <\/span>been waiting for. <\/span>The two-day event takes place this September and will be the latest in our must-attend series of invitation-only, C-suite-level gatherings. Stay tuned for more information on the location. <\/span><\/p>\n

TAP OR CLICK <\/span>HERE<\/a><\/span> if you want to express interest in attending. <\/span>We\u2019ll be sending out the first batch of invitations just after the 30 June holiday. <\/span><\/p>\n

Do you want to become a commercial partner?<\/span> Please click <\/span>here<\/a><\/span>.<\/span><\/p>\n

STAY TUNED for more detail <\/span>about our exciting agenda in the weeks to come.<\/span><\/p>\n

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

The Capital Markets Summit is taking place <\/span>at the Nile Ritz-Carlton. The annual event will be <\/span>held under the title \u2018IPOs in motion.\u2019 Register for the event <\/span>here<\/a><\/span>.<\/span><\/p>\n

The Egypt International Exhibition Center is playing host to not one but two construction <\/span>\/ infrastructure conferences: <\/span>The <\/span>Egypt Infrastructure and Water Expo<\/a><\/span> and the <\/span>Big 5 Construct<\/a><\/span> both continue today at the Egypt International Exhibition Center. The conferences bring together contractors, financial institutions, policymakers and consultants to discuss potential projects in Egypt\u2019s infrastructure and construction sectors. The three-day events close tomorrow.<\/span><\/p>\n

IN THE HOUSE AND THE SENATE-<\/span><\/p>\n

The House is back in session today <\/span>to discuss a bill that would establish a national <\/span>agency for intellectual property rights. Tomorrow, MPs are expected to vote on bills for fresh oil exploration, joining an international convention on nuclear energy safety, and establishing the Egypt-based HQ of the African Space Agency.<\/span><\/p>\n

The Senate is out for summer: <\/span>The Senate broke for its three-month summer recess after <\/span>yesterday\u2019s session and will reconvene in the first week of October. The chamber used its final session to discuss new potential legislation governing cooperatives, with Social Solidarity Minister Nevine El Qabbaj telling senators that the government is \u201cin the process of drafting a new law and strategy for cooperatives to improve their performance in society and enhance their contribution to the national economy.\u201d <\/span><\/p>\n

HAPPENING THIS WEEK-<\/span><\/p>\n

It\u2019s interest rate week:<\/span> The Central Bank of Egypt is expected to leave interest rates <\/span>unchanged when it holds its policy meeting on Thursday. That\u2019s according to <\/span>our customary rate poll<\/a><\/span>, where seven of eight analysts forecast a pause due to slowing global tightening and lower prospects of a near-term EGP deval.<\/span><\/p>\n

<\/a> <\/span>Make that seven of nine:<\/span>Mohamed Abdelmeguid, MENA economist at BNP Paribas, is <\/span>expecting t<\/span>he CBE to raise rates by 100 bps at Thursday\u2019s meeting in a pre-emptive move against higher inflation in the coming months. Expectations for higher electricity tariffs and fuel prices in the second half of the year, together with the latent impact of April\u2019s diesel price hike, will likely cause headline inflation to peak at 33.2% in the third quarter,<\/span> according to a note from the bank on Friday.<\/span><\/p>\n

A <\/span>Reuters poll<\/a><\/span> thinks the CBE will stick:<\/span> All 17 of the analysts polled by the news <\/span>agency expect the central bank to keep rates on hold this month after President Abdel Fattah El Sisi <\/span>appeared to rule out<\/a><\/span> an EGP devaluation in coming months.<\/span><\/p>\n

Modi in town:<\/span> Indian prime minister Narendra Modi will land in Egypt for a two-day visit on <\/span>Saturday, 24 June, according to <\/span>Indian media<\/a><\/span>. <\/span><\/p>\n

WATCH THIS SPACE-<\/span><\/p>\n

<\/span><\/a> <\/span>#1- Is a Qatari entity about to acquire state-owned hotels?<\/span> We\u2019re picking up <\/span>chatter <\/span>that a Qatari investor could announce it will buy a significant minority stake in a state-owned hotels holding company in the coming days. Several sources familiar with the government\u2019s plans told us yesterday that the investor is in line to acquire as much as 30% of the company and could make an announcement in a few days.<\/span><\/p>\n

Remember:<\/span> Reuters <\/span>reported earlier this month<\/a><\/span> the Qatari sovereign wealth fund was in talks to acquire a minority stake in seven Egyptian hotels (including Cairo Marriott and Marriott Mena House), whose ownership the government has recently <\/span>transferred to a holding company<\/a><\/span> it intends to part-privatize.<\/span><\/p>\n

That\u2019s not all:<\/span> Our sources tell us that the hotel transaction is one of two Qatari acquisitions in the pipeline. More details as we get them.<\/span><\/p>\n

<\/a> <\/span>#2- Is Egyptian Drilling going up for sale via the SFE\u2019s pre-IPO fund? <\/span>A 30% stake <\/span>in Egyptian Drilling Company (EDC) has been transferred to the Sovereign Fund of Egypt\u2019s pre-IPO fund by its parent company, the Egyptian General Petroleum Corporation (EGPC), <\/span>Al Borsa<\/a><\/span> reports citing sources it says are in the know<\/span>. <\/span><\/p>\n

The government is reportedly looking to sell the EDC stake to a strategic investor in 4Q 2023<\/span>, with an additional stake to be offered on the EGX at a later stage, the sources added. CNN Arabic <\/span>reported earlier this month<\/a><\/span> that the government was in talks with strategic investors to sell a 49% stake in EDC to strategic \u2014 most likely Emirati \u2014 investors. The company is on the list of <\/span>32 state-owned firms<\/a><\/span> in which the government is looking to offload stakes under its privatization program. <\/span><\/p>\n

<\/span><\/a> <\/span>#3- New USD CDs to hit the market?<\/span> State-owned banks National Bank of Egypt (NBE) <\/span>and Banque Misr are reportedly <\/span>studying <\/span>the launch of USD certificates of deposit (CDs) that would pay out 10% interest in USD or 17% interest in EGP as they look to ramp up their pool of hard currency, <\/span>Asharq Business<\/a><\/span> reports, citing documents it says it has obtained.<\/span><\/p>\n

Not everyone would be eligible:<\/span> The certificates will be offered to Egyptian expats abroad, foreigners in Egypt, and dual nationals, the news outlet reports. <\/span>Neither bank responded to our requests for comment yesterday.<\/span><\/p>\n

One of several options on the table:<\/span> A senior source at the NBE reportedly told the outlet that the certificates are just one of a number of options that the bank is looking at to increase its FX earnings.<\/span><\/p>\n

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There\u2019s no one BIG STORY ABROAD<\/span> dominating the front pages of the international press this morning. <\/span><\/p>\n

US Secretary of State Antony Blinken and Chinese President Xi Jinping agreed to \u201cstabilize\u201d tensions <\/span>between their countries as Blinken wrapped up a rare visit to Beijjing \u2014 but don\u2019t expect the superpower rivals to be trading friendship bracelets any time soon. <\/span>Reuters<\/a><\/span> and the<\/span>Washington Post<\/a><\/span> has more. <\/span><\/p>\n

Curse of the Titanic:<\/span> Global media has been captivated this morning by a search and rescue mission unfolding in the North Atlantic, after a diving craft that operates tours to the Titanic shipwreck went missing, reports <\/span>Bloomberg<\/a><\/span>. The OceanGate Expeditions craft, which is carrying five passengers and crew, went missing on Sunday after it lost communication with other vessels. British b\u2019naire, aviation exec, and adventurer Hamish Harding is among the passengers, the <\/span>FT<\/a><\/span> reports. <\/span><\/p>\n

THE REALIGNMENT-<\/span><\/p>\n

UAE and Qatar reopen embassies after years-long rift:<\/span> The <\/span>UAE<\/a><\/span> and <\/span>Qatar<\/a><\/span> have <\/span>reopened their embassies in each other\u2019s countries, marking an improvement in Gulf Arab relations<\/span>, the two countries said yesterday<\/span>.<\/span> The foreign ministers of both countries congratulated each other on the reestablishment of diplomatic ties during a phone call, according to a <\/span>statement<\/a><\/span> from Qatar\u2019s foreign ministry. <\/span><\/p>\n

Egypt welcomed efforts by the UAE and Qatar<\/span> to resume diplomatic relations and commended the two countries for bolstering Arab solidarity, the Foreign Ministry said in a <\/span>statement<\/a><\/span>. Egypt and Qatar <\/span>normalized relations<\/a><\/span>back in 2021 after signing a <\/span>declaration<\/a><\/span> with Saudi Arabia, the UAE, and Bahrain to end the diplomatic rift with their neighbor. <\/span><\/p>\n

The restoration of ties between Doha and Dubai comes amid a <\/span>broader push for reconciliation in the region. <\/span>Egypt is looking to improve relations with <\/span>Iran and Turkey<\/a><\/span>, <\/span>Syria has been welcomed back into the Arab League<\/a><\/span>, and Saudi Arabia and Iran are <\/span>working to end decades of hostilities<\/a><\/span>.<\/span><\/p>\n

CIRCLE YOUR CALENDAR-<\/span><\/p>\n

<\/a> <\/span>PSA- Property owners have until 30 June to pay the first installment of their <\/span>annual property tax<\/span>, the Real Estate Tax Authority said in <\/span>a statement<\/a><\/span> yesterday. The second installment can be paid from July to December. Owners of properties that have been demolished or damaged, and <\/span>owners of properties that are used as primary family residences and have a price tag of less than EGP 2 mn<\/span> can request tax exemption, the statement reads. <\/span><\/p>\n

What does generative AI mean for journalism and education in the Arab world?<\/span> The AUC <\/span>School of Global Affairs and Public Policy is hosting <\/span>a panel discussion<\/a><\/span> tomorrow about the implications of the technology and how it might change how we understand the world. The event starts at 6pm at the AUC Tahrir Complex.<\/span><\/p>\n

Attention, climate enthusiasts: <\/span>Ten startups (pdf)<\/a><\/span> hailing from Upper Egypt <\/span>will present <\/span>their climate change solutions next Saturday during a virtual demo day held by the USAID-backed Climate Action Accelerator. You can register to attend the hour-long Zoom event <\/span>here<\/a><\/span>.<\/span><\/p>\n

Check out our full calendar on the web<\/a><\/span> for a comprehensive listing of upcoming news events, national holidays and news triggers.<\/span><\/p>\n

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help <\/span>us build some very cool new things.<\/span> Enterprise \u2014 the essential morning read on all the important news shaping business and the economy in Egypt and the region \u2014 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.<\/span><\/p>\n

We have tons more in the pipeline \u2014 come help us build new publications.<\/span> 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.<\/span><\/p>\n

Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.<\/span><\/p>\n

That said, we're looking for gifted story-tellers from all walks of life and across all professions<\/span>, 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\u2019re an equities analyst tired of the rat race, we\u2019re a great place to come work.<\/span><\/p>\n

NEVER WORKED IN A NEWSROOM BEFORE?<\/span> 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.<\/span><\/p>\n

During the program you will learn:<\/span><\/p>\n