{"id":611004,"date":"2023-11-30T00:00:00","date_gmt":"2023-11-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/30\/united-bank-stake-sale-could-come-sooner-than-we-think-el-sisi-checks-on-the-economy\/"},"modified":"2023-11-30T00:00:00","modified_gmt":"2023-11-30T00:00:00","slug":"united-bank-stake-sale-could-come-sooner-than-we-think-el-sisi-checks-on-the-economy","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/30\/united-bank-stake-sale-could-come-sooner-than-we-think-el-sisi-checks-on-the-economy\/","title":{"rendered":"United Bank stake sale could come sooner than we think + El Sisi checks on the economy"},"content":{"rendered":"

Good morning, friends, and happy Thursday to you all. <\/strong>It\u2019s another slow morning as we wrap up a particularly uneventful week (on the home front, at least). This morning, the eyes of much of the world will be locked onto Dubai \u2014 where climate negotiators are gathering for the opening day of COP28 \u2014 and Gaza, where fighting could resume in the coming hours, with Hamas and Israel seemingly no closer to agreeing an extension to the week-long truce. All that and more, below. <\/p>\n

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WATCH THIS SPACE- #1- United Bank stake sale<\/strong> could be announced this year<\/strong>: <\/strong>The United Bank is expected to pull back the curtain on its sale agreement in mid-December as it currently awaits mandatory tender offers (MTO) from the bidders, a source at the state-owned lender told Enterprise. Most of the potential buyers have completed due diligence on the bank, the source added.<\/p>\n

United Bank is one of two state-owned banks in which EBRD is reportedly interested in <\/strong>taking a stake.<\/strong> The European Bank for Reconstruction and Development (EBRD) is reportedly<\/a> looking to grab stakes in United Bank and Banque du Caire, two of the three banks \u2014 along with the Arab African International Bank \u2014 slated for the government privatization program.<\/p>\n

<\/a>WATCH THIS SPACE #2- El Sisi checks pulse of the economy amid fresh deval forecasts: <\/strong>President Abdel Fattah El Sisi chaired an economy-centered meeting that included Prime Minister Moustafa Madbouly<\/strong>, Planning Minister Hala El Said<\/strong>, Finance Minister Mohamed Maait<\/strong>, CBE Governor Hassan Abdalla, International Cooperation Minister Rania Al Mashat<\/strong> and General Intelligence Service Director Abbas Kamel<\/strong> according to an Ittihadiya statement<\/a>. The meeting \u201cfollowed up on the economic situation in light of regional and international developments,\u201d the statement said.<\/p>\n

What did they talk about? <\/strong>El Sisi \u201cgave directives\u201d for the ministers to \u201ccontinue working on developing national economic programs and projects in a way that enhances the economy\u2019s ability to face current challenges and ensures the protection of citizens from its negative effects,\u201d the statement reads, without getting into further detail. <\/p>\n

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<\/a> FLOAT WATCH- Capital Economics looks into its devaluation crystal ball:<\/strong> The much-anticipated float of the EGP will shortly follow the conclusion of the presidential election in December and will be accompanied by a 200 bps interest rate hike, according to an Arab World News Agency<\/a> piece covering what a report by Capital Economics. Policymakers need to loosen their grip on the exchange rate soon to maintain the balance of payments and attract fresh capital inflows, the London-based economic research firm said. <\/p>\n

Where\u2019s the EGP headed against the greenback?<\/strong> Capital Economics isn\u2019t offering a call. The EGP currently stands at anywhere between 48-53 to the USD in the parallel market depending on how much you\u2019re buying, when, where, and from whom. The EGP is still at 30.95 to the USD per the official rate.<\/p>\n

Calls by both EFG Hermes and BMI suggest we could see the EGP recover a bit from its <\/strong>current low \u2014 provided a float is successful and the market clears.<\/strong>BMI<\/a>, a research unit of Fitch Solutions, expects the EGP to weaken 45%<\/strong> against the USD by the end of 1Q2024, following the Central Bank of Egypt\u2019s currency devaluation, which it says will take place in February<\/strong>. EFG Hermes lead MENA economist Mohamed Abu Basha sees<\/a> the \u201cEGP 40 mark [against the greenback] as being an eventual area of stability for the EGP when the FX market clears.\u201d<\/p>\n

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ELECTION 2023- Presidential hopefuls pressed pause on their election campaigns yesterday<\/strong> ahead of Egyptian expats heading to the polls tomorrow through Sunday. On the ballot: Incumbent President Abdel Fattah El Sisi<\/strong>, Al Wafd Party\u2019s Abdel Sanad Yamama<\/strong>, the Egyptian Social Democratic Party\u2019s Farid Zahran<\/strong>, and the Republican People Party\u2019s Hazem Omar<\/strong>.<\/p>\n

Polls open here at home on 10-12 December.<\/strong> First-round results are due on 18 December and a runoff, if necessary, will take place in early January 2024.<\/p>\n

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PSA #1- <\/strong>El Gouna Film Festival<\/a><\/strong> is back on the calendar <\/strong>after being postponed from October in the wake of the war on Gaza. The rescheduled festival runs from 14 -21 December<\/a> and will include a special program dedicated to Palestinian cinema, in collaboration with the Palestine Film Institute. <\/p>\n

PSA#2- - Metro commuters, you can stay out late on Thursdays. <\/strong>The Cairo Metro Line 3 will extend operating hours to 1 am on Thursdays, line operator RATP Dev Mobility Cairo<\/a> said yesterday. The extended hours start today for a one-month trial period. <\/p>\n

** DO US A FAVOUR? Did this morning\u2019s email land in your tabs? Please drag us to your inbox <\/strong>\u2014 it goes a long way toward making sure Enterprise makes it into everyone\u2019s email inbox.<\/p>\n

TOMORROW IS A NEW MONTH- <\/strong>As we near the end of the year \u2014 here are the key news triggers on which to keep your eyes as we head into December: <\/p>\n