Egypt’s Suez Canal Economic Zone (SCZone) signed in January five framework agreements to launch projects worth approximately $250 million in total, according to a Cabinet statement. Under the agreements, the Suez Canal Economic Zone will participate in the preparation of feasibility studies for various projects, which would be an initial step to 50 other agreements currently under negotiations, SCZone’s Chairman Waleed Gamal El-Dien stated. Agreement details The five agreements encompass a deal with the Aurajlo Company for the Garment Industry that will construct a ready-made clothes factory spanning 75,000 square meters, with investments amounting to $150 million under the usufruct…
Author: Doaa A.Moneim
The Egyptian Ministry of Finance has revised its projections for the budget deficit in the current fiscal year 2023/2024, ending in June, indicating an expected increase to 7.6% of gross domestic product (GDP), up from the previous estimate of 7%. The ministry also adjusted its forecasts for general revenues downward, anticipating a decrease of approximately EGP 153.6 billion. This revision brings the total general revenues to EGP 1.98 trillion, compared to the originally targeted EGP 2.14 trillion. The decrease in general revenues stems from reduced expectations for resources and other capital sources for investment financing, which have been revised to…
ICON, a subsidiary of Talaat Mostafa Group (TMG) Holding, has successfully acquired a 51% stake in Legacy Hotels, which owns historic hotels in Egypt. Through a capital increase, the final acquisition agreement grants ICON a majority stake with full management rights in Legacy, according to a bourse disclosure to the Egyptian stock exchange on Sunday. TMG owns 83.3% of ICON’s shares. The group transferred the agreed deposit to a foreign account within the banking sector, awaiting completion of capital increase procedures for transfer to Legacy Hotels, the real estate developer said. In December, TMG’s ICON finalized an $882 million deal…
Egypt’s state-owned and the country’s largest telecommunications network operator, Telecom Egypt, and Hungarian telecommunications and IT services provider 4iG Plc, will form a joint venture to build an express subsea cable between Albania and Egypt, according to a statement released on February 1. Subsea cable The express subsea cable will create a high-capacity, intercontinental connection linking Africa and Asia, through the Red Sea, to Europe, via Egypt, the Mediterranean, and Albania. The cable is the first of its kind to link the two countries. Telecom Egypt said that the planned subsea cable’s Mediterranean route will be unique, adding another layer…
The Egyptian House of Representatives has recently passed a new law permitting the sale of lands located outside urban areas, specifically desert lands, to foreigners in US dollars, in a bid to bolster the North African country’s foreign investment. Boosting foreign reserves The plots of land that the government offers to be purchased are located in the cities of New Damietta, 10th of Ramadan, Shorouk, Sheikh Zayed, Obour, Sadat, New Borg El-Arab, New Cairo, October Gardens, Badr, New Sphinx, New October, New Sohag, 6th of October, Obour, Sadat, and New Aswan. The decision was made following the cabinet’s approval of…
Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, has signed a contract between the Mineral Resources Authority and the Canadian company Aton Resources to explore gold ore and associated minerals in the Abu Marawat area in the Eastern Desert, according to a statement released by Egypt’s Cabinet. The agreement follows the company’s commercial gold exploration in the Hamama Gharb and Rodrin areas, situated within the Abu Marawat concession and encompassing an area of approximately 58 square kilometers. Geologist Yasser Ramadan, Head of the Mineral Resources Authority, and Tony Hawkins, the Executive Director of Aton Resources, were present at…
Beltone Financial Holding and gold investment solutions provider Evolve Gold have joined forces to unveil the ‘Beltone Evolve Gold Fund – Sabayek,’ a novel gold investment solution in the Egyptian market,” announced Beltone. This marks the second fund in the series, following the initial “B-Secure,” which focuses on fixed-income instruments in Egyptian Pounds and boasts a size exceeding EGP 1.6 billion. Sabayek, co-sponsored by Beltone Securities Holding and Evolve Investment Holding, aims to directly invest in physical gold bullion with a minimum purity of 999.9. The fund targets raising EGP 10 million through the offering of 100,000 units, each with…
Abu Dhabi wealth fund ADQ announced on Saturday that it will acquire a 40.5% stake in ICON, the listed hospitality arm of Egypt’s Talaat Moustafa Group (TMG), allowing the ADQ to take part ownership of several luxury hotels across the country. The value of the acquisition was not disclosed. Under the deal, a special purpose vehicle owned by ADQ and its unit Abu Dhabi National Exhibitions Company (ADNEC), with respective 49% and 51% holdings, will carry out a capital increase to acquire the ICON stake. EFG Hermes is acting as the sole financial advisor to TMG Holding on the transaction,…
Egypt is exploring the possibility of issuing securitized bonds that would be backed by state-owned assets to address the ongoing US dollar shortage. Under this plan, the bonds would be secured by expected US dollar revenues generated from unspecified state-owned assets, and investors would receive payments from the cash flows of these financial assets. Credit availability Securitization is a process that helps increase credit availability by transforming non-tradable financial assets into securities. These securities can be issued to investors and traded on capital markets. The payment rights are divided into several “tranches” and are paid in a specific order. Credit…
The World Bank has lowered Egypt’s 2024 Gross Domestic Product (GDP) growth forecast to 3.3% from the anticipated 3.7% in October, citing geopolitical tensions in the Middle East in the Global Economic Prospects report. Egypt GDP growth The report suggests these tensions could contribute to inflation, restrict private sector activity, and increase pressure on external accounts due to expected reductions in tourism and remittance revenues. Since October, Egypt has seen a decline in both headline and core inflation rates, as reported by the Central Agency for Public Mobilization and Statistics (CAPMAS) and the Central Bank of Egypt (CBE). The annual…