{"id":606161,"date":"2023-09-12T00:00:00","date_gmt":"2023-09-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/12\/china-wants-a-new-industrial-zone-in-egypt\/"},"modified":"2023-09-12T00:00:00","modified_gmt":"2023-09-12T00:00:00","slug":"china-wants-a-new-industrial-zone-in-egypt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/12\/china-wants-a-new-industrial-zone-in-egypt\/","title":{"rendered":"China wants a new industrial zone in Egypt"},"content":{"rendered":"

Good morning, friends. The big stories this morning reflect the twin narratives of 2023. <\/strong> On the one hand: The Institute of International Finance is out with a paper suggesting that it\u2019s high time we move to a flexible exchange rate<\/strong>. On the other, we have signs that investment is picking up<\/strong>: There is more Chinese interest in opening up shop here \u2014 and word that an Emirati developer has pulled the trigger on a development in New Cairo with an investment cost of more than USD 1 bn. <\/p>\n

Those narratives mesh nicely with one of the big themes of a briefing call we had yesterday ahead of next week\u2019s Enterprise Finance Forum. <\/strong>Two Egyptian leaders at large international businesses made a strong case for optimism about Omm El Donia as they described how their companies are now deploying more money and more people here. Why? We have plenty of talented people, a great geographical location, and a massive domestic market. <\/p>\n

Yeah, but haven\u2019t those been our selling points forever? <\/strong>They have indeed. <\/p>\n

So, what\u2019s different? <\/strong>Even at the official rate, Egypt has become very attractively priced. \u201cMore cost competitive than India,\u201d one said yesterday \u2014 and it\u2019s far from the first time we\u2019ve heard that. <\/p>\n

Want to hear their argument in detail? <\/strong>You\u2019ll have to attend the opening session of day two of our Enterprise Finance Forum, which takes place next Monday and Tuesday. (Details below, if you\u2019ve not already accepted your invitation or asked to receive one.)<\/p>\n

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

China is looking to expand its presence in Egypt in a big way: <\/strong> Some 10-15 Chinese companies have shown interest in establishing a specialized industrial zone for chemicals with investments worth USD 7.5-12 bn in CNY across the next 3-4 years, General Authority For Investment (GAFI) CEO Hossam Heiba told Al M<\/a> al<\/a> TV in an interview on Sunday (watch, runtime: 48:50<\/a>). <\/p>\n

TEDA 3x? <\/strong> Tianjin Economic-Technological Development Area, which established the TEDA industrial zone in Ain Sokhna in 2008, wants to acquire a land plot 3x the size of the current zone, Heiba added. TEDA Egypt is currently working on the second 6 square-km phase<\/a> of the TEDA zone, which will expand its total size to 7.3 sq-km.<\/p>\n

Chinese currency for Chinese investments: <\/strong> Authorities could allow Chinese companies to make local investments in CNY, according to Heiba<\/a>, who told Al Mal that there is agreement between the GAFI and the Central Bank of Egypt to increase the use of the currency in Egypt. Talks are ongoing for the China Development Bank<\/a> to set up a branch in Egypt, a move that would enable Chinese companies to access CNY in Egypt to fund local investments, he added.<\/p>\n

Background: <\/strong>Chinese interest here comes as a growing number of manufacturers (Chinese and foreign alike) pivot to a \u201cChina +1\u201d strategy, moving into other geographies to reduce supply chain and geopolitical risk. HSBC Egypt CEO Todd Wilcox highlighted recent GAFI roadshows to China put on by HSBC, the takeaway from which, he wrote yesterday, was that investors \u201chighly \u2026 regard the future that exists for them in Egypt.\u201d You can read Todd\u2019s column here.<\/a> <\/p>\n

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<\/a> PSA #1 <\/strong> - <\/strong> There are only <\/strong> two days <\/strong> left for Egyptians living abroad to settle <\/strong> unfulfilled military <\/strong> service obligations by paying a fee in FX. <\/strong>Folks looking to settle their national service obligation will need to deposit USD 5k \/ EUR 5k into a Banque Misr account at the bank\u2019s Abu Dhabi branch by Wednesday, 13 September. Head here<\/a> for more information.<\/p>\n

<\/a> PSA <\/strong> #2 <\/strong> - Niqab school ban: <\/strong>The Education Ministry has imposed a ban on female students wearing the niqab in schools from the beginning of the next term, according to a decision picked up by state media<\/a>. The decision doesn\u2019t refer to the niqab specifically but instructs female students not to wear head coverings that obscure their faces.<\/p>\n

PSA #3- Storm Daniel to make landfall in Egypt: <\/strong> You may want to ready your umbrellas if you\u2019re on the north coast today as the lingering impact of Storm Daniel brings low-to-medium rain, according to the Egyptian Meteorological Authority<\/a>. Our favorite weather app suggests Cairo will get off with little more than cloudy skies this afternoon, with gusts of wind and a chance of showers, though there remains a risk of blowing sand throughout the day. The capital city will see daytime highs of around 33-34\u00b0C before dropping to 25\u00b0C tonight, according to the latest forecast<\/a>. <\/p>\n

We look set to get off lightly: <\/strong>Authorities in eastern Libya say that more than 2k people have died after Storm Daniel caused floods in the coastal town of Derna. A spokesperson for the Libyan National Army said that the storm had caused dams above the village to collapse, \u201csweeping whole neighborhoods\u201d into the sea. As many as 5-6k people are thought to be missing. (Associated Press<\/a> | Reuters<\/a> | Wall Street Journal<\/a> | The National<\/a>)<\/p>\n

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<\/a> SIX DAYS TO GO until we see some of you at the Enterprise <\/strong> Finance Forum, which takes place 18-19 September <\/strong>(Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech \u2014 and of their clients.<\/p>\n

What to expect: <\/strong> Join Sherif El Behery <\/strong> (CEO and managing director, MDI), Mohamed Mounir <\/strong> (deputy CEO, ValU), Tarek Shahin <\/strong>(chief investment officer, CI Asset Management), Himanshu Shrimali <\/strong> (co-founder and CEO, Menthum), Amro Abou <\/strong> esh <\/strong> (founder, Maseera), Kamel Saleh <\/strong> (CEO, Grant Thornton Egypt) and many others for talks on everything from where the talent in our industry can be found, whether NBFIs are a bubble and the state of finance\u2019s professional services firms. <\/p>\n

Tap or click here to view the FULL AGENDA with SPEAKERS.<\/a><\/strong><\/a><\/strong><\/p>\n

There will be plenty of parking available at the venue <\/strong> for all those attending. <\/p>\n

** We are honored to count some of the region\u2019s most important financial institutions as <\/strong><\/p>\n

our partners for this special event. <\/strong>The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, the IFC, and Post for Investment. <\/p>\n

<\/a> <\/p>\n

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

EFG Hermes\u2019 Saudi Forum concludes today: <\/strong> It\u2019s the second and final day of the EFG<\/a> Hermes<\/a> Saudi Forum (pdf<\/a> )<\/a> in London, which brings together more than 50 companies from the KSA with major institutional investors from across the world. <\/p>\n

<\/a> We\u2019ll get our first look at the new-look iPhone <\/strong>when Apple holds its annual product event. Expect updated iPhones, two refreshed watches, and a switch away Lightning ports to USB-C (thanks, European Union, for making all of our cables redundant). You can watch the event here at 8pm CLT on Apple\u2019s website<\/a> or its Youtube channel<\/a>.<\/p>\n

PSA #4- It will likely be some time before you can get the new iPhone 15 models here in Egypt. <\/strong>Apple authorized resellers in Omm El Donia are still stuck moving small quantities of the iPhone 13 amid ongoing supply constraints thanks to (sing it with us, folks) the ongoing FX crunch.<\/p>\n

Sahara expo: <\/strong> The Sahara agriculture exhibition<\/a> concludes today at the Egypt International Exhibition Center (EIEC), showcasing agricultural machinery, water management systems, and post-harvest technologies.<\/p>\n

<\/a> Looking to do your master\u2019s degree in the UK? <\/strong>Applications for the British government\u2019s Chevening scholarship open today at 12pm GMT. The scholarship offers full financial support for students to pursue an eligible master\u2019s degree at over 150 UK universities. The deadline for applications is 7 November. Apply here<\/a>.<\/p>\n

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

#1- The <\/strong>Hydrogen Egypt Summit<\/a><\/strong> opens its doors at the Nile Ritz Carlton tomorrow. Local and global energy players will discuss how to realize Egypt\u2019s potential to become a regional green hydrogen hub. The event runs through to Thursday.<\/p>\n

#2- DEBT WATCH- Fresh securitizations from EFG Corp Solutions and Al Ahly <\/strong> Tamkeen this week? <\/strong> That\u2019s according to an unconfirmed report from Al Borsa<\/a>, which said this week that:<\/p>\n