Egypt

Economic and general news

S&P Global Ratings expects Egyptian authorities to further devalue the EGP from EGP31/USD to a level more in line with the parallel market rate, currently at about EGP60/USD, it said in a release. Increased exchange rate flexibility is a key element of the existing USD3bn IMF program. Subject to exchange rate adjustment, S&P believes the IMF loan funding could be disbursed while the loan itself may be extended, and more clarity on the exchange rate policy would benefit trade and economic growth and trigger an increase in remittance inflows. S&P sees that tighter monetary conditions, which are unlikely to ease in the aftermath of a devaluation, have led to a sharp increase in the government’s debt service on local-currency debt over the past few months. (S&P Global Ratings)

The Egyptian government has extended the car import initiative for Egyptians living abroad at 100% tax and customs exemptions for three months, effective 29 January, according to the initiative’s spokesperson. Total payment orders since the launch in November 2022 reached USD1.50bn while the total number of applicants on the initiative’s online platform reached 437,000 applicants, with more expected over the coming days, he added. A total of 170,000 approvals were issued to date while 20,000 cars were released under the initiative, he also said. (Al Borsa)

The Egyptian Cabinet approved the compensations to contractors who were negatively affected by the economic decisions issued by the Egyptian government from 1 March 2022 until 31 May 2023, according to the Official Gazette. The decision became effective on 25 January 2024. (Official Gazette)

The head of the Suez Canal Authority (SCA) held meetings with representatives of fifteen international navigation lines and agencies to discuss the repercussions of the Red Sea tensions on transit activity in the Suez Canal, and some companies requested additional discounts and incentives from the SCA to compensate them for higher insurance fees while linking the discounts to the transit volume, according to the head of SCA. (The SCA)

The Central Bank of Egypt (CBE) is preparing the technical setup for a digital borrowing plan based on the consumption patterns of borrowers with the National Telecom Regulatory Authority (NTRA) and The Egyptian Credit Bureau (I-SCORE), it announced. The plan will allow banks to offer instant credit services to mobile wallet owners based on these consumption patterns, it added. (Al Borsa)

Egypt plans to establish six new wheat silos in different areas in Egypt with a total investment cost of USD146m and a storage capacity of 420,000 tons, of which, The Agence Française de Développement (AFD) will finance USD61.5m, according to unnamed sources familiar with the matter. The new silos will raise Egypt’s wheat storage capacity to 4.62m tons, which increased to 4.20m in 2023 from 1.25m in 2017, the sources added. (Al Borsa)

The Egyptian government will enforce new measures to control food and medicine price increases, the Prime Minister announced. The measures will include the Consumer Protection Agency (CPA) launching a mobile app that allows buyers to report price increases and increase the presence of CPA offices, he added. (Al Ahram)

The new one-year high-yielding certificates of deposit (CDs) offered by the National Bank of Egypt (NBE) and Banque Misr attracted a total of EGP471bn, including EGP305bn by the NBE and EGP166bn by Banque Misr, according to the heads of the two banks. (Youm 7)

Egypt’s wheat imports from Russia increased c39% y-o-y to 7.5m tons in 2023, while its wheat imports from Ukraine reached 1.2m tons and Romania reached 1m tons, according to an official document. Lower average Russian wheat price by c27% y-o-y to USD260/ton in 2023 and fast transportation of only 4–6 days by ships were behind the higher imports of Russian wheat, an unidentified official said. (Al Borsa)

Egypt’s car sales are expected to drop to 90,000 cars in 2023 from 184,000 cars in 2022 and around 215,000 cars in 2021, according to the executive director of the Egyptian Automobile Manufacturers Association (EAMA). (Al Shorouk)

The Egyptian government sold 6-month T-bills worth EGP6.09bn, with a bid-to-cover ratio of 2.28x, at an average yield of 26.960%, up from 26.398% previously, and 12-month T-bills worth EGP3.98n, with a bid-to-cover ratio of 6.67x, at an average yield of 26.960%, down from 27.680% previously, according to the CBE’s data. (CBE)

Company news

Telecom Egypt (ETEL EY): The company signed a Joint Build Agreement with NaiTel, a licensed telecom service provider in Jordan and the telecom arm of Aqaba Digital Hub, to construct Coral Bridge, a new subsea cable system connecting Egypt and Jordan, it announced.  The Coral Bridge system will cross the Gulf of Aqaba, creating a point-to-point, well-established infrastructure between Taba on the Egyptian side and Aqaba on the Jordanian side. With no repeaters and a high fiber count, the system will serve as a key project, maximizing the geo advantages of the region to cater to the international community’s needs and act as a meeting point for the traffic flowing between East and West. (Company release)

B Investments (BINV EY): Travco Group increased its stake in the company to 5.12% from 4.99% previously by buying some 200,000 shares at an average price of EGP25.1/share for a total of EGP5.03m, it announced. (EGX)

Prime Holding (PRMH EY): The company is planning to launch three new investment funds, including fixed-income, Shariah-compliant, and precious metals, according to its chairman. (Al Mal)

Misr Chemical Industries (MICH EY): The company’s 1H23/24 net income inched up c0.2% y-o-y to EGP281m, it announced. The company’s board also approved increasing its paid-in capital by EGP147m to EGP439m by distributing a 0.5:1 stock dividend. (EGX)

Alexandria Mineral Oils Company (AMOC EY): The company’s 1H23/24 consolidated net income retreated by c9% y-o-y to EGP918m, despite a c33% y-o-y increase in revenue to EGP14.3bn, according to its announced KPIs. (EGX, Al Borsa)

Centamin (CEY LN): The company’s FY23 revenue increased by more than c10% y-o-y to USD892m, according to its CEO. The Egyptian government’s share of the Sukari gold mine production is expected to exceed USD130m in FY23, he added. (Hapi Journal)

Egypt Gas (EGAS EY): The company’s FY23 net income dropped c46% y-o-y to EGP162m,  according to its announced KPIs. (EGX)

Dice Sport and Casual Wear (DSCW EY): Egypt’s Financial Regulatory Authority (FRA) gave the company the green light to proceed with amending article three of incorporation to include manufacturing diverse garment accessories, the FRA announced. (EGX)

El Shams Housing (ELSH EY): The company approved the resignation of its chairman, Osama El-Husseiny, and the appointment of Ahmed Galal as an acting chairman, it announced. (EGX)

Qatar

Company news

Qatar Gas Transport Company (Nakilat) (QGTS QD): The company’s FY23 net income increased c8.3% y-o-y to QAR1.56bn, and its board recommended an FY23 DPS of QAR0.14, it announced in a bourse release. (Bloomberg)

Saudi Arabia

Company news

Advanced Petrochemical Company (APPC AB): The company’s propylene and polypropylene plants will undergo scheduled maintenance from 4 February until 27 February, it announced. (Bloomberg)

Saudi Arabian Oil Co (ARAMCO AB): Luberef signed with the company a supply agreement to receive a minimum of 3000 bbl/day of heavy vacuum gas base oils and by-products from the Yanbu facility, subject to product availability, it said in a statement. (Bloomberg)