The SC
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This is not a marriage or dating site dude.. you can find many Arab and Muslim marriage oriented sites.. you'll be luckier there..
Egyptian National and Strategic Development Projects: News and Updates
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The SC
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Details of the Korean company project to grow 300 thousand acres south-east of low Qattara.
A government committee has been set up to raise the areas requested by the South Korean company from the government for agricultural investment in the south-east of the Qattara lowlands in Matrouh within days in order to begin the procedures for handing over the said areas to the company in accordance with the mechanisms adopted by the Joint Cooperation Protocol Between the General Authority for Reconstruction and Agricultural Development Projects of the Ministry of Agriculture and the Korean Arab Society for Cultural and Economic Exchange represented in Egypt by the Korean Arab Company for Economic and Cultural Consultancy.
The sources pointed out that the areas requested by the Korean company for agricultural investment have a water ration suitable for low-consumption crops for water and higher return, including export crops or consumer crops that are popular in the local market. Sources told Al-Masry Al-Youm that the Korean company through its experts will inspect the site allocated for a total area of 300 thousand acres southeast of the low Qattara, and located 100 km from the new city of Alamein, explaining that the experts of the company offered the Ministry of Agriculture crop composition, and prepared tables of water consumption for each crop,and also Areas to be cultivated by plant production.
The sources pointed out that the studies presented by the Korean company to the government include the establishment of giant bovine and poultry production projects in the region, as well as the allocation of some areas for the establishment of projects for intensive fish farming, as part of the projects of the fish, especially as the Korean studies confirmed that the climate in the region were suitable for agricultural and fisheries farms, Which is scheduled to be part of the Egyptian national project to establish 100 thousand greenhouses.
Reclamation Project of 300 thousand acres in the south-east of the Qattara lowlands based on the latest global systems with 50 thousand agricultural greenhouses project fully powered by solar energy..It is a South Korean investments of $3 billion dollars..
A government committee has been set up to raise the areas requested by the South Korean company from the government for agricultural investment in the south-east of the Qattara lowlands in Matrouh within days in order to begin the procedures for handing over the said areas to the company in accordance with the mechanisms adopted by the Joint Cooperation Protocol Between the General Authority for Reconstruction and Agricultural Development Projects of the Ministry of Agriculture and the Korean Arab Society for Cultural and Economic Exchange represented in Egypt by the Korean Arab Company for Economic and Cultural Consultancy.
The sources pointed out that the areas requested by the Korean company for agricultural investment have a water ration suitable for low-consumption crops for water and higher return, including export crops or consumer crops that are popular in the local market. Sources told Al-Masry Al-Youm that the Korean company through its experts will inspect the site allocated for a total area of 300 thousand acres southeast of the low Qattara, and located 100 km from the new city of Alamein, explaining that the experts of the company offered the Ministry of Agriculture crop composition, and prepared tables of water consumption for each crop,and also Areas to be cultivated by plant production.
The sources pointed out that the studies presented by the Korean company to the government include the establishment of giant bovine and poultry production projects in the region, as well as the allocation of some areas for the establishment of projects for intensive fish farming, as part of the projects of the fish, especially as the Korean studies confirmed that the climate in the region were suitable for agricultural and fisheries farms, Which is scheduled to be part of the Egyptian national project to establish 100 thousand greenhouses.
Reclamation Project of 300 thousand acres in the south-east of the Qattara lowlands based on the latest global systems with 50 thousand agricultural greenhouses project fully powered by solar energy..It is a South Korean investments of $3 billion dollars..
The SC
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Minister of Housing with Amr Adib reviews the achievements of 3 years work in the housing sector
12 new cities adopted by the state at the same time and the end of the designs of the 13th city
- Administrative capital
- City of Jalala
- New Ismailia
- East Port Said
- New Alexandria
- Nasser Assiout
- New Suhaj
- New Beni Suef
- West of Minya
- New Alalamein
- Toshki
- New Suez
- End of designs of the New Mansoura
And
- One million housing units in the social project
- Elimination of slums in mid-2018
- 700 sewage and water projects at the level of the Republic
- Roads and bridges made by the Ministry of housing.
Malaysia's ACASYS ECO HOMES is seeking to build an integrated city in the new administrative capital with 250 thousand housing units at an initial investment cost of over $ 5 billion, according to Hilmi Sarhan, the company's consultant in Egypt.
Sarhan said to «money and business-Shorouq» that the Malaysian company wishing to enter the Egyptian market for the first time is seeking to develop about 2,600 acres in the administrative capital as an integrated development project.
The Ministry of Investment has signed a memorandum of understanding with China's CFLD to develop 60 million meters in the new administrative capital with investments of 20 billion dollars over a period of 10 years, for a 40% of the profits without burdening the government. In addition to a region for technologically advanced and environmentally friendly industries, and a residential city, as well as a full range of roads, facilities and services including schools, university, research centers and recreational clubs.
During the Sharm el-Sheikh Economic Summit in March 2015, the Egyptian government announced the establishment of the new administrative capital at an investment cost of $ 45 billion to be pumped over 5 years. On an area of 700 square kilometers.
Dr. Mustafa Madbouli, Minister of Housing, Utilities and Urban Communities, said that the first phase of the new administrative capital project will accommodate about 1.5 million people and will be implemented on an area of 12.5 thousand acres.
The minister added in previous statements that the investment of the urgent phase of the new administrative capital project amounts to 8 billion dollars, and is scheduled to provide about 2 million jobs.
12 new cities adopted by the state at the same time and the end of the designs of the 13th city
- Administrative capital
- City of Jalala
- New Ismailia
- East Port Said
- New Alexandria
- Nasser Assiout
- New Suhaj
- New Beni Suef
- West of Minya
- New Alalamein
- Toshki
- New Suez
- End of designs of the New Mansoura
And
- One million housing units in the social project
- Elimination of slums in mid-2018
- 700 sewage and water projects at the level of the Republic
- Roads and bridges made by the Ministry of housing.
----------------------------------------------------
Malaysia's ACASYS ECO HOMES is seeking to build an integrated city in the new administrative capital with 250 thousand housing units at an initial investment cost of over $ 5 billion, according to Hilmi Sarhan, the company's consultant in Egypt.
Sarhan said to «money and business-Shorouq» that the Malaysian company wishing to enter the Egyptian market for the first time is seeking to develop about 2,600 acres in the administrative capital as an integrated development project.
----------------------------------------------------
The Ministry of Investment has signed a memorandum of understanding with China's CFLD to develop 60 million meters in the new administrative capital with investments of 20 billion dollars over a period of 10 years, for a 40% of the profits without burdening the government. In addition to a region for technologically advanced and environmentally friendly industries, and a residential city, as well as a full range of roads, facilities and services including schools, university, research centers and recreational clubs.
During the Sharm el-Sheikh Economic Summit in March 2015, the Egyptian government announced the establishment of the new administrative capital at an investment cost of $ 45 billion to be pumped over 5 years. On an area of 700 square kilometers.
Dr. Mustafa Madbouli, Minister of Housing, Utilities and Urban Communities, said that the first phase of the new administrative capital project will accommodate about 1.5 million people and will be implemented on an area of 12.5 thousand acres.
The minister added in previous statements that the investment of the urgent phase of the new administrative capital project amounts to 8 billion dollars, and is scheduled to provide about 2 million jobs.
Gomig-21
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They're making very smart deals in order to bring in all these $100 of billions in investments to Egypt. This 2030 vision is moving right long. This will be a completely different country in 10 years.
The real question will be if Sisi respects the constitution and runs for only his 2nd term and doesn't pull an Erdogan with some BS referendum vote to consolidate his power. And, if a newly elected president in 5 years time has the wherewithal to continue the rapid development that Sisi has done in just 4 years. These are going to be the real determining factors as to whether there is some sense of democracy in Egypt, despite the military, and if this sustained growth will continue to take place without any more political/religious clamoring.
Egypt Posts Balance-of-Payments Surplus as Investments Surge
By
Ahmed Feteha
September 11, 2017, 3:14 PM EDT September 12, 2017, 1:08 AM EDT
- Current-account deficit declines 22% in 12 months through June
- Nation saw about $16 billion in portfolio investments
The North African nation recorded a balance of payments surplus of $13.7 billion in the year ending June 30, compared with a $2.8 billion deficit a year earlier, the central bank said in a statement on its website. Egypt saw about $16 billion of net investments in its debt and equities last year, versus an outflow of about $1.3 billion in the previous 12 months, the regulator said.
Egypt removed most restrictions on its currency in November in a bid to end a foreign-exchange crisis that crippled economic growth, paving the way to a $12 billion International Monetary Fund loan. Foreign reserves have grown to over $36 billion, a record, as the government increased borrowing from international financial institutions and friendly nations.
“Despite the improvement, I would not say the economy has turned a corner yet,” said Hany Farahat, senior economist at Cairo-based CI Capital. “More needs to be done to ensure such short-term gains are sustainable, especially if the Egyptian pound gains some value in the coming months.”
The current-account deficit, which includes trade in goods and services as well as financial transfers, narrowed 22 percent to $15.6 billion. The trade deficit narrowed 8.4 percent, or about $3.3 billion, to $35.4 billion as oil exports rose by $1.9 billion. Proceeds from non-oil exports rose 16 percent thanks to the “improvement of the competitiveness” after the pound lost about half of its value since the flotation, the central bank said.
Read more: Egypt to Keep Narrowing Trade Deficit After Pound Devaluation
Despite the improvement in competitiveness, the weaker pound, along with lower subsidies and an increase in value-added taxation, has propelled inflation to more than 30 percent, squeezing households in a country where about half of the population lives below or near the poverty line.
The central bank also said:
- Of the total surplus, $12.2 billion generated since November
- Net foreign direct investment rose to $7.9 billion from $6.9 billion as a result of $2.3 billion increase in oil sector
- Foreigners’ net purchases of Egyptian stocks reached $497 million from $157 million
https://www.bloomberg.com/news/arti...-organic&utm_source=twitter&utm_medium=social
Saif al-Arab
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@Gomig-21 @The SC @EgyptianAmerican @mahatir
Good to hear brothers and please continue the good work.
Egyptian economy witnessing remarkable development across all sectors: Kabil
Trade exchange between Egypt and China amounted $11bn in 2016
Daily News Egypt September 7, 2017 0 Comments
View attachment 424917 Jobzella Email
Minister of Industry and Trade Tarek Kabil said the Egyptian economy is currently witnessing remarkable development across all sectors and levels as a result of the comprehensive economic reform plan adopted by the government, which has strengthened Egypt’s position on the global investment map.
This came in the context of the minister’s speech at the China-Egypt Trade and Investment Promotion Conference, held in Yinchuan, in the presence of Qian Keiming, vice minister of commerce, and a large number of representatives of the business community in Egypt and China.
Kabil added that the ministry’s strategy aims to increase the industrial growth rate to 8%, increase the growth rate of exports by 10% annually, and increase the contribution of industrial output in the GDP from 18% to 21%. In addition, 3 million jobs will be provided, and there will be an increase in the rate of public investment in the industrial sector to reach nearly EGP 100bn by 2020.
The minister said that the strategy is based on the development of five strategic axes: industry; exports; small and medium enterprises; technical and vocational education and training; and standards of governance and institutions.
Chinese companies have large production and technological capacity to lead China’s economic growth locomotive, he said, pointing to the importance of increasing Chinese investment in the Egyptian market and benefiting from the economic ties and ties between Egypt and China within the framework of the comprehensive strategic partnership.
Furthermore Kabil said that the volume of trade exchange between Egypt and China had recorded $11bn in 2016.
He called on Chinese companies to participate in this forum to direct their investments to the Egyptian market in various investment sectors available and to benefit from the investment advantages offered by the Egyptian market, such as large consumer capacities and surplus demand and the abundance of natural resources and inputs of production and skilled labour at competitive prices.
https://dailynewsegypt.com/2017/09/...-remarkable-development-across-sectors-kabil/
7% increase in Egyptian exports to the UAE
$735m surplus in trade balance between the two countries for Egypt, says ECA head
Shaimaa Al-Aees 20 hours ago
Egyptian exports to the United Arab Emirates (UAE) have increased to register $1.204bn in the first half of the current year compared $1.126bn in the same period of last year, an increase of 7%, according to Egyptian Minister of Trade and Industry Tarek Kabil.
From his part, Egyptian Commercial Service (ECA) head Ahmed Antar said that the boom in Egyptian exports during the mentioned period contributed to the increase in the surplus of the trade balance between the two countries to $735m for Egypt compared to $685m during the same period last year.
Antar added that the increase in exports to the UAE is attributed to the success of promotional efforts by the ECA in Abu Dhabi in providing consumers in the UAE of different nationalities with details of Egyptian products through Egyptian participation in various exhibitions held in the UAE.
The main items of Egyptian exports to the UAE market were gold, televisions, furniture, fresh oranges, fresh onions, monitor screens, fresh potatoes, frozen vegetables, cheeses, electric cables, copper wires, and coal, Antar said.
In the UAE’s case, Egyptian exports increased by 125% in 2016 to reach $2.4bn from $1bn in 2015. On the other hand, Egyptian imports from the UAE decreased by 27% during the same period to register $885m compared to $1.2bn in 2015, achieving a surplus in the trade balance in favour of Egypt, with $1.5bn from a deficit of $156m previously in 2015, according to reports received by Kabil from Egypt’s commercial representation offices in Istanbul and Abu Dhabi.
https://dailynewsegypt.com/2017/09/11/7-increase-egyptian-exports-uae/
Foreign investments back to Egypt as FX crunch fades away
Government’s steps to amend economy lure investors to pour fresh cash
Elsayed Solyman
It seems the worst is over for the economy of the most populous Arab country, as foreign investors are back to pour money in the $300bn economy, according to IMF estimates, the biggest in North Africa.
According to official figures, foreign direct investment in Egypt is expected to have risen to about $8.7bn in the fiscal year (FY) of 2016/17 that ended last June, compared to about $6.9bn the previous year.
Egypt late last year signed a $12bn three-year IMF loan agreement and floated its currency in a bid to lure back investors that fled after its 2011 political uprising.
Recent reports from international business institutions said the country has re-emerged as a destination of choice for global investors flocking to its energy, real estate, and financial sectors.
The reports expected Egypt to witness a significant economic improvement starting next year in terms of foreign investment inflows, especially in the oil and gas, real estate, and consumer product sectors.
They also forecast inflation rates to fall sharply in the Egyptian market, which will be followed by a sharp cut of interest rates by the Central Bank of Egypt (CBE), from nearly 20% now to around 10% by the end of 2019.
In a report on the Egyptian economy, Renaissance Capital, an investment firm specialised in emerging markets, predicted that in the coming period Egypt would witness an increase in inflows driven by the new discoveries of oil and gas fields, especially after the Egyptian government solved the debts crisis with the international oil companies and paid the largest share of dues.
The real estate, retail, and consumer product sectors come next on the list of foreign investors’ interests.
Renaissance Capital said more than 50% of foreign direct investment that flowed into Egypt in the fourth quarter of 2016 ($4.1bn) went to the oil and gas sector.
The firm pointed out that Britain, the United States, and Belgium are among the biggest contributors to foreign direct investment (FDI) in Egypt, while the UAE is the largest contributor among the Gulf Cooperation Council (GCC) countries.
It also noted that Britain has always been the largest contributor to FDIs in Egypt, as its investments during the first quarter (Q1) of 2017, acquired 55% of the total FDI of $1.8bn, followed by the United States by 14% and $482m.
The report showed that with many multi-national companies operating in the Egyptian market in the food sector, the retail sector may see significant investments in the coming years, as Egypt is still in the early stages of growth in the modern retail sector. The banking sector is also witnessing great opportunities as a result of the operations of mergers and acquisitions taking place in the country.
High interest rates is a good reason to inject cash
Since Egypt floated its currency last November, interest rates have been on the rise by almost 700 bp.
This is a good reason for investors to pump cash in Egypt’s debt market.
“Higher rates lure investors, but also play a role in taming inflation rates—which have surged to multi-decade highs as the government scaled back energy subsidies,” Capital Economics said in a recent research note.
expected the Egyptian central bank’s monetary policy committee to smoothen the monetary policy by the end of the year by cutting interest rates more than expected.
In a report issued last week, it said the decision of the policy committee at its meeting not to change the lending and deposit rates (18.75 percent for deposits and 19.75 percent for overnight lending) came with the possibility of a sharp drop in inflation over a period of six to nine months. It also expected interest rates to fall to 12.75 percent by the end of 2018 and 10.20 percent by the end of 2019.
Capital Economics said that the Central Bank’s decision to fix the interest rate came despite the significant increase in inflation in the past month on an annual basis, since the Policy Committee had not found any need for more policy restrictions. The last raise in interest rate was 200 basis points last month, which came in anticipation of the recent increase in inflation.
Capital Economics predicted that inflation in Egypt would begin to fall more quickly than expected, pointing out that inflation in Egypt had peaked, and that its decline promises a large financial recovery that would help the Egyptian economy.
“Our outlook for the Egyptian market is positive. Egypt is well-positioned for economic growth, as the country’s macro environment has improved,” Asha Mehta, senior vice president and portfolio manager at Acadian Asset Management, told CNBC in an interview.
“The implementation of a new investment law is widely expected to improve the ease of doing business and sanctity of contracts. Meanwhile, more discipline on public spending imposed by the IMF should put government finances on a more sustainable footing. The fund is currently anticipating growth of about 4%,” she added.
“investors wish to see a strategy put in place to develop sustainable, job creating, manufacturing exports,” Hasnain Malik, global head of equities research at Exotix Capital said.
“Free zones and more equal access to land,” are key attributes of a recovery, with a boost to exports seen as “the holy grail” for job creation, Malik added.
According to Malik, foreign direct investment is flowing into oil and gas, power and real estate.
Egypt’s real estate is also providing a hedge for the high inflation environment. All of this should drive a better outlook for building materials, construction and property.
“The much more competitive exchange rate should also favor exporters. Tourism is picking up but from a very low base and with excess capacity, for now, in hotels,” he added.
Yet risks remain, even with the Egyptian pound having now recovered from being the worst emerging market performer in 2016.
“Despite the macro view, corporate quality is somewhat weak given the historical currency environment, both in terms of cash-flow generation and overall asset quality,” said Malik.
Where is the money coming from?
The UK has always been the biggest contributor of FDI to Egypt. In Q3 FY 2016/17 (ending June 2017), it contributed 55% of the total, amounting to $1.8bn and stable year-on-year (y-o-y). The first nine months (9M) FY 2016/17 period shows total investment of $4.8bn, up by 11% y-o-y and signalling increased interest, according to Renaissance Capital report.
“in our view. The UK was followed by the US, with a share of 14% of all FDI in Q3 FY 2016/17 (at $482m), significantly increasing its share from 4% last year. Arab countries appear to be slowing their investment pace, with the UAE’s contribution falling to 5% in Q3 FY 2016/17, from 17% in Q3 FY 2015/16,” it explained.
“More than 50% of all FDI went into the oil and gas sector in Q2 2016/17, amounting to $4.1bn. We think the oil and gas sector is likely to dominate future inflows, especially as these companies’ large arrears are now being cleared following the easing of dollar liquidity. The second-largest sector was services, with 6.1%, and dominated by financials (2.2% share). Real estate, manufacturing, and construction still account for an insignificant share of total FDI, with respectively 0.7%, 1.7%, and 0.5% shares in Q2 FY 2016/17,” the report added.
The report noted that aside from oil and gas—historically Egypt’s largest recipient of FDI—commercial real estate could be likely to see a greater impact from continued foreign interest, given Egypt’s limited mall space and low penetration of modern retail.
“We have already seen investments from the UAE (Lulu, Majid Al Futtaim) and Saudi Arabian (Hokair, Al Othaim) groups in this sector. With several multinationals already operating in the food sector, we think modern retail could see significant investment in coming years,” the report noted.
However, the report do not see this as posing a potential major threat to existing players, as Egypt remains in the early growth phases in terms of modern retail (compared with GCC peers), with a highly fragmented market, as well as rising per-capita consumption and income.
Banking could also present interesting opportunities, given what the report see as scope for consolidation—most recently Attijariwafa Bank’s acquiring of Barclays Egypt.
“We think other regulated sectors, such as utilities and tobacco, are unlikely to see much FDI, which should help incumbents to benefit from ongoing reforms in these sectors. Egypt’s Minister of International Cooperation Sahar Nasr, in a recent media interview, mentioned Al Ghurair Group and Emaar Properties as potential investors, with interest from investors in sectors including oil and gas, real estate, tourism, and logistics; she also said multinationals such as Mars Inc. and General Electric were planning expansion in Egypt. Billionaire Saudi Prince Alwaleed bin Talal, who owns 40 hotels in Egypt (in addition to 18 others still under construction) is to invest c. $800m to expand the Four Seasons resort in Sharm El-Sheikh, and we see the Tourism sector likely to continue to generate strong interest,” the report finished.
https://dailynewsegypt.com/2017/09/12/foreign-investments-back-egypt-fx-crunch-fades-away/
Some actors are clearly not happy about this great news seeing what is going on in Sinai from time to time, most recently (unfortunately) as late as yesterday. However rest assure that they will fail, just like they have failed in Bahrain, Eastern Province, Iraq and Yemen.
Good to hear brothers and please continue the good work.
Egyptian economy witnessing remarkable development across all sectors: Kabil
Trade exchange between Egypt and China amounted $11bn in 2016
Daily News Egypt September 7, 2017 0 Comments
View attachment 424917 Jobzella Email
Minister of Industry and Trade Tarek Kabil said the Egyptian economy is currently witnessing remarkable development across all sectors and levels as a result of the comprehensive economic reform plan adopted by the government, which has strengthened Egypt’s position on the global investment map.
This came in the context of the minister’s speech at the China-Egypt Trade and Investment Promotion Conference, held in Yinchuan, in the presence of Qian Keiming, vice minister of commerce, and a large number of representatives of the business community in Egypt and China.
Kabil added that the ministry’s strategy aims to increase the industrial growth rate to 8%, increase the growth rate of exports by 10% annually, and increase the contribution of industrial output in the GDP from 18% to 21%. In addition, 3 million jobs will be provided, and there will be an increase in the rate of public investment in the industrial sector to reach nearly EGP 100bn by 2020.
The minister said that the strategy is based on the development of five strategic axes: industry; exports; small and medium enterprises; technical and vocational education and training; and standards of governance and institutions.
Chinese companies have large production and technological capacity to lead China’s economic growth locomotive, he said, pointing to the importance of increasing Chinese investment in the Egyptian market and benefiting from the economic ties and ties between Egypt and China within the framework of the comprehensive strategic partnership.
Furthermore Kabil said that the volume of trade exchange between Egypt and China had recorded $11bn in 2016.
He called on Chinese companies to participate in this forum to direct their investments to the Egyptian market in various investment sectors available and to benefit from the investment advantages offered by the Egyptian market, such as large consumer capacities and surplus demand and the abundance of natural resources and inputs of production and skilled labour at competitive prices.
https://dailynewsegypt.com/2017/09/...-remarkable-development-across-sectors-kabil/
7% increase in Egyptian exports to the UAE
$735m surplus in trade balance between the two countries for Egypt, says ECA head
Shaimaa Al-Aees 20 hours ago
Egyptian exports to the United Arab Emirates (UAE) have increased to register $1.204bn in the first half of the current year compared $1.126bn in the same period of last year, an increase of 7%, according to Egyptian Minister of Trade and Industry Tarek Kabil.
From his part, Egyptian Commercial Service (ECA) head Ahmed Antar said that the boom in Egyptian exports during the mentioned period contributed to the increase in the surplus of the trade balance between the two countries to $735m for Egypt compared to $685m during the same period last year.
Antar added that the increase in exports to the UAE is attributed to the success of promotional efforts by the ECA in Abu Dhabi in providing consumers in the UAE of different nationalities with details of Egyptian products through Egyptian participation in various exhibitions held in the UAE.
The main items of Egyptian exports to the UAE market were gold, televisions, furniture, fresh oranges, fresh onions, monitor screens, fresh potatoes, frozen vegetables, cheeses, electric cables, copper wires, and coal, Antar said.
In the UAE’s case, Egyptian exports increased by 125% in 2016 to reach $2.4bn from $1bn in 2015. On the other hand, Egyptian imports from the UAE decreased by 27% during the same period to register $885m compared to $1.2bn in 2015, achieving a surplus in the trade balance in favour of Egypt, with $1.5bn from a deficit of $156m previously in 2015, according to reports received by Kabil from Egypt’s commercial representation offices in Istanbul and Abu Dhabi.
https://dailynewsegypt.com/2017/09/11/7-increase-egyptian-exports-uae/
Foreign investments back to Egypt as FX crunch fades away
Government’s steps to amend economy lure investors to pour fresh cash
Elsayed Solyman
It seems the worst is over for the economy of the most populous Arab country, as foreign investors are back to pour money in the $300bn economy, according to IMF estimates, the biggest in North Africa.
According to official figures, foreign direct investment in Egypt is expected to have risen to about $8.7bn in the fiscal year (FY) of 2016/17 that ended last June, compared to about $6.9bn the previous year.
Egypt late last year signed a $12bn three-year IMF loan agreement and floated its currency in a bid to lure back investors that fled after its 2011 political uprising.
Recent reports from international business institutions said the country has re-emerged as a destination of choice for global investors flocking to its energy, real estate, and financial sectors.
The reports expected Egypt to witness a significant economic improvement starting next year in terms of foreign investment inflows, especially in the oil and gas, real estate, and consumer product sectors.
They also forecast inflation rates to fall sharply in the Egyptian market, which will be followed by a sharp cut of interest rates by the Central Bank of Egypt (CBE), from nearly 20% now to around 10% by the end of 2019.
In a report on the Egyptian economy, Renaissance Capital, an investment firm specialised in emerging markets, predicted that in the coming period Egypt would witness an increase in inflows driven by the new discoveries of oil and gas fields, especially after the Egyptian government solved the debts crisis with the international oil companies and paid the largest share of dues.
The real estate, retail, and consumer product sectors come next on the list of foreign investors’ interests.
Renaissance Capital said more than 50% of foreign direct investment that flowed into Egypt in the fourth quarter of 2016 ($4.1bn) went to the oil and gas sector.
The firm pointed out that Britain, the United States, and Belgium are among the biggest contributors to foreign direct investment (FDI) in Egypt, while the UAE is the largest contributor among the Gulf Cooperation Council (GCC) countries.It also noted that Britain has always been the largest contributor to FDIs in Egypt, as its investments during the first quarter (Q1) of 2017, acquired 55% of the total FDI of $1.8bn, followed by the United States by 14% and $482m.
The report showed that with many multi-national companies operating in the Egyptian market in the food sector, the retail sector may see significant investments in the coming years, as Egypt is still in the early stages of growth in the modern retail sector. The banking sector is also witnessing great opportunities as a result of the operations of mergers and acquisitions taking place in the country.
High interest rates is a good reason to inject cash
Since Egypt floated its currency last November, interest rates have been on the rise by almost 700 bp.
This is a good reason for investors to pump cash in Egypt’s debt market.
“Higher rates lure investors, but also play a role in taming inflation rates—which have surged to multi-decade highs as the government scaled back energy subsidies,” Capital Economics said in a recent research note.
expected the Egyptian central bank’s monetary policy committee to smoothen the monetary policy by the end of the year by cutting interest rates more than expected.
In a report issued last week, it said the decision of the policy committee at its meeting not to change the lending and deposit rates (18.75 percent for deposits and 19.75 percent for overnight lending) came with the possibility of a sharp drop in inflation over a period of six to nine months. It also expected interest rates to fall to 12.75 percent by the end of 2018 and 10.20 percent by the end of 2019.
Capital Economics said that the Central Bank’s decision to fix the interest rate came despite the significant increase in inflation in the past month on an annual basis, since the Policy Committee had not found any need for more policy restrictions. The last raise in interest rate was 200 basis points last month, which came in anticipation of the recent increase in inflation.
Capital Economics predicted that inflation in Egypt would begin to fall more quickly than expected, pointing out that inflation in Egypt had peaked, and that its decline promises a large financial recovery that would help the Egyptian economy.
“Our outlook for the Egyptian market is positive. Egypt is well-positioned for economic growth, as the country’s macro environment has improved,” Asha Mehta, senior vice president and portfolio manager at Acadian Asset Management, told CNBC in an interview.
“The implementation of a new investment law is widely expected to improve the ease of doing business and sanctity of contracts. Meanwhile, more discipline on public spending imposed by the IMF should put government finances on a more sustainable footing. The fund is currently anticipating growth of about 4%,” she added.
“investors wish to see a strategy put in place to develop sustainable, job creating, manufacturing exports,” Hasnain Malik, global head of equities research at Exotix Capital said.
“Free zones and more equal access to land,” are key attributes of a recovery, with a boost to exports seen as “the holy grail” for job creation, Malik added.According to Malik, foreign direct investment is flowing into oil and gas, power and real estate.
Egypt’s real estate is also providing a hedge for the high inflation environment. All of this should drive a better outlook for building materials, construction and property.
“The much more competitive exchange rate should also favor exporters. Tourism is picking up but from a very low base and with excess capacity, for now, in hotels,” he added.
Yet risks remain, even with the Egyptian pound having now recovered from being the worst emerging market performer in 2016.
“Despite the macro view, corporate quality is somewhat weak given the historical currency environment, both in terms of cash-flow generation and overall asset quality,” said Malik.
Where is the money coming from?
The UK has always been the biggest contributor of FDI to Egypt. In Q3 FY 2016/17 (ending June 2017), it contributed 55% of the total, amounting to $1.8bn and stable year-on-year (y-o-y). The first nine months (9M) FY 2016/17 period shows total investment of $4.8bn, up by 11% y-o-y and signalling increased interest, according to Renaissance Capital report.
“in our view. The UK was followed by the US, with a share of 14% of all FDI in Q3 FY 2016/17 (at $482m), significantly increasing its share from 4% last year. Arab countries appear to be slowing their investment pace, with the UAE’s contribution falling to 5% in Q3 FY 2016/17, from 17% in Q3 FY 2015/16,” it explained.
“More than 50% of all FDI went into the oil and gas sector in Q2 2016/17, amounting to $4.1bn. We think the oil and gas sector is likely to dominate future inflows, especially as these companies’ large arrears are now being cleared following the easing of dollar liquidity. The second-largest sector was services, with 6.1%, and dominated by financials (2.2% share). Real estate, manufacturing, and construction still account for an insignificant share of total FDI, with respectively 0.7%, 1.7%, and 0.5% shares in Q2 FY 2016/17,” the report added.The report noted that aside from oil and gas—historically Egypt’s largest recipient of FDI—commercial real estate could be likely to see a greater impact from continued foreign interest, given Egypt’s limited mall space and low penetration of modern retail.
“We have already seen investments from the UAE (Lulu, Majid Al Futtaim) and Saudi Arabian (Hokair, Al Othaim) groups in this sector. With several multinationals already operating in the food sector, we think modern retail could see significant investment in coming years,” the report noted.
However, the report do not see this as posing a potential major threat to existing players, as Egypt remains in the early growth phases in terms of modern retail (compared with GCC peers), with a highly fragmented market, as well as rising per-capita consumption and income.
Banking could also present interesting opportunities, given what the report see as scope for consolidation—most recently Attijariwafa Bank’s acquiring of Barclays Egypt.
“We think other regulated sectors, such as utilities and tobacco, are unlikely to see much FDI, which should help incumbents to benefit from ongoing reforms in these sectors. Egypt’s Minister of International Cooperation Sahar Nasr, in a recent media interview, mentioned Al Ghurair Group and Emaar Properties as potential investors, with interest from investors in sectors including oil and gas, real estate, tourism, and logistics; she also said multinationals such as Mars Inc. and General Electric were planning expansion in Egypt. Billionaire Saudi Prince Alwaleed bin Talal, who owns 40 hotels in Egypt (in addition to 18 others still under construction) is to invest c. $800m to expand the Four Seasons resort in Sharm El-Sheikh, and we see the Tourism sector likely to continue to generate strong interest,” the report finished.
https://dailynewsegypt.com/2017/09/12/foreign-investments-back-egypt-fx-crunch-fades-away/
Some actors are clearly not happy about this great news seeing what is going on in Sinai from time to time, most recently (unfortunately) as late as yesterday. However rest assure that they will fail, just like they have failed in Bahrain, Eastern Province, Iraq and Yemen.
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The SC
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Egyptian parliament is getting a bill through to extend the 4 yeas presidential term to 6 years.. if not already passed.. They say that Egypt can not afford a 4 years term..
The Only problem is that the reforms are felt as a bit harsh on the people, in the short term..the real results should show in the medium and long term..But compared to some extreme sufferings by China or South Korea's peoples to reform their countries' economy, the Egyptian price is quite soft and low..
Gomig-21
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Not yet, bro.
Parliament doesn't reconvene until October, then they'll need 20% support of the lawmakers just to begin considering a discussion in the assembly on the term increase. Then after that discussion and depending on how it goes, they'll still need 2/3 majority vote in the parliament to put it to a referendum vote as a proposed amendment to the constitution. It's good that there are a lot of checks and balances in place to change such an important amendment. It shouldn't be an easy thing to do because it delegitimizes the constitution. What's the sense of having one if it can easily be changed.
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The SC
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Not that easily changed, it is a work in progress..I've heard it is going to pass because a lot of votes were already secured, but never know.. anyway.. why 4 years like mainly Western countries who don't have those quinquennial plans anymore like the developing countries.. 5 years should be good but 6 years is better because it gives a 1 extra year to show the tangible results..I know that projects are usually continued through government transitions.. but this change will entice every new government to start other 5 years major projects to add some value to the ongoing ones..Not yet, bro.
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The highest daily load record in Suez Canal history
With the crossing 65 vessels with a total tonnage of 4.3 million tons in both directions, stressing the importance of the new Suez Canal project in increasing the capacity of the channel..
With the crossing 65 vessels with a total tonnage of 4.3 million tons in both directions, stressing the importance of the new Suez Canal project in increasing the capacity of the channel..
The SC
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Ambassador of Ukraine in Cairo: Delegation visits the Iron Complex in Helwan next week for rehabilitation..
To study opportunities for overhaul of this huge plant.
http://www.elbalad.news/2854274
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President Sisi inaugurates 10 hospitals, within days within his state plan to open 100 new hospitals before June 2018.
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New Grain reserve towers
To study opportunities for overhaul of this huge plant.
http://www.elbalad.news/2854274
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President Sisi inaugurates 10 hospitals, within days within his state plan to open 100 new hospitals before June 2018.
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New Grain reserve towers
mahatir
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I have seen videos about Asmarat 1 and 2 located close to moqatam . Are you sure all slums from major cities by mid 2018 ? this sound ambitious to achieve . I can see this in coastal cities but Cairo is quite complex .
There are many people like Sisi who can come out and continue his path . If the Egyptian parliament extends the term to 6 years it will really create a lot of problems . Egypt needs to stick to its constitution , thats the only safe way to ensure future stability .
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Major General Majdi Mohammadine, Chairman of the Board of Directors of Banha Electronic Industries of the Ministry of Military Production signed a cooperation protocol with Samsung Energy Company of Samsung Group of Korea, the world's largest solar panel producer. To build a plant to produce solar panels in Penha company with a capacity of 200 MW a year.
http://www.ahram.org.eg/NewsQ/585045.aspx
http://www.ahram.org.eg/NewsQ/585045.aspx
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250 Polish companies looking for investment opportunities in Egypt
http://www.ahram.org.eg/NewsQ/585045.aspx
http://www.ahram.org.eg/NewsQ/585045.aspx
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250 Polish companies looking for investment opportunities in Egypt
Gomig-21
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At an average rate of $465,000 per vessel x 65 = $30,225,000 in revenues for the Suez Canal for that one day.
$30,225,000 x 12 = $3.6 billion per year.
After maintenance fees and expenses and what-not, just guessing...$3B +/-. Not bad if that's a close figure.
The SC
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The most inhabitable ones first.. and yes the project concerns all the slums in Egypt by 2030 or before..
Sisi is not alone it takes a very competent team.. a rare commodity in the Arab world..
Gomig-21
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Totally agree. When it gets to a referendum, it will be up to the registered voters to turn out and vote. Then we'll see if there is an actual, electoral system that works. If it was left to the MPs, they can easily be intimidated. But being put to a referendum will ensure the people have the final say.
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