Moody’s Ratings has revised Egypt’s outlook from negative to positive while affirming the country’s Caa1 long-term foreign and local currency issuer ratings. The Caa1 rating indicates that Egypt is in poor standing and faces very high credit risk, according to Moody’s Long-term Corporate Obligation Rating definitions. Why now? Moody’s decision follows the recent move by the Central Bank of Egypt (CBE) to raise key interest rates by 6% in an unscheduled meeting and allow the local currency rate to be determined by market supply and demand forces. “The change in Egypt’s outlook to positive reflects significant official and bilateral support…
Author: Doaa A.Moneim
S&P Global Ratings revised in March its outlook on Egypt’s economy to positive from stable while affirming its B-/B’ long- and short-term foreign and local currency sovereign credit ratings of Egypt. The action came almost two weeks after the unprecedented moves taken by the Central Bank of Egypt (CBE) on March 6, through which the key interest rates have been hiked by 6% (600 bps), as well as letting the local currency be set according to the local market’s supply and demand forces. On the same day, the International Monetary Fund (IMF) announced an expansion for its Extended Fund Facility…
After two years of negotiations, the International Monetary Fund (IMF) has reached an agreement with Egypt to increase its loan under the Extended Fund Facility (EFF) to $8 billion, up from $3 billion. The first and second reviews under the program are set to be completed soon. “We are pleased to announce that the Egyptian authorities and the IMF team have reached a staff-level agreement on the economic policies needed to complete the first and second reviews of the EFF arrangement,” said IMF Mission chief to Egypt, Ivanna Vladkova Hollar. The deal, subject to approval by the IMF Executive Board,…
Egypt’s recent agreement with the UAE to develop the coastal zone Ras El-Hikma offers a promising solution to the country’s pressing challenges, particularly concerning its US dollar liquidity requirements. The deal, valued at $35 billion, will see Egypt receiving the amount in two installments over the next two months. As part of the agreement, Egypt will obtain 35% of the project’s revenues throughout its duration, with $11 billion from the UAE’s deposits at the Central Bank of Egypt (CBE) earmarked for project investments. In an interview with Business Monthly, Ali Metwally, an Economic Consultant at IBIS Consultancy, emphasized the critical…
Last year, Haleon, the renowned British consumer healthcare giant, marked its grand entrance into Egypt in June, placing a significant focus on consumer health post its split from GSK. In an exclusive interview with Mohamed Mostafa, the Country Manager of Haleon EG Limited, he delves into the company’s remarkable journey towards becoming the globe’s largest standalone healthcare enterprise. Mostafa passionately underscores the company’s ambitious goal of attaining 90% local manufacturing for its Egyptian operations. Noteworthy among Haleon’s esteemed brands are Advil, Centrum, Voltaren, and Otrivin, which have garnered widespread recognition and trust. The Q&A has been edited for length and…
Emirates NBD-Egypt has introduced a personal loan option tailored to finance the purchase of solar panels, empowering individuals to embrace clean energy solutions, according to a company statement in February. Green loans The loan offers coverage of up to 100% of the solar panel costs, ranging from EGP 100,000 to a maximum of EGP 1 million, with repayment options spanning a 7-year tenor and competitive interest rates. This initiative aligns with Egypt’s Sustainability Strategy and 2030 Vision, furthering the bank’s commitment to international sustainable development goals and promoting clean energy initiatives. “This loan reinforces our ongoing commitment to sustainability, as…
Hossam Heibah, President of the General Authority for Investment and Free Zone (GAFI), signed a Memorandum of Understanding (MOU) with Todd Wilcox, Deputy Chairman and CEO of HSBC Bank Egypt, aimed at supporting the authority’s strategy of attracting foreign direct investment (FDI) to Egypt. Attracting FDI Under the pact, HSBC will facilitate the introduction of more international investors to Egypt’s growing business opportunities through closer cooperation with the Authority, Heibah noted. He added that this cooperation reflects Egypt’s commitment to enhancing the private sector’s role in the economy. GAFI will provide HSBC Egypt with information regarding investment opportunities in the…
Egypt’s Minister of Petroleum and Mineral Resources, Tarek El-Molla, announced plans to increase foreign investments in the oil and gas sector by approximately 25% in the upcoming fiscal year 2025/2024 to reach $7.5 billion, he said on the sidelines of Egypt’s Petroleum Exhibition and Conference “EGYPS 2024”. Foreign investments This is compared to the expected $6 billion in the current fiscal year 2023/2024, which concludes at the end of June, El-Molla highlighted. Foreign investments in Egypt’s oil and gas sector increased to $5.6 billion in FY 2022/2023, up from $4.7 billion in the previous fiscal year, according to data from…
Egypt signed a $35 billion investment partnership agreement with the Abu Dhabi Developmental Holding Company ADQ on Friday to develop Ras El Hikma’s coastal zone, located west of Alexandria. Ras El Hekma development Ras El-Hekma, located about 350 kilometers northwest of Cairo and spanning over 170 million square meters, is slated to become a premier destination in the Mediterranean, boasting unparalleled attractions such as hotels, yacht marinas, and entertainment facilities, Prime Minister Mostafa Madbouly announced in a press conference on Friday. Under the agreement, ADQ will acquire the development rights for Ras El-Hekma for $24 billion, aiming to transform the…
Amid Egypt’s economic challenges over the past two years and the repercussions of the Middle East conflict, industry leaders stress the crucial role of the private sector in driving growth and job creation, as discussed during a workshop organized by the Egyptian Centre for Strategic Studies (ECSS) in February. During two sessions, key figures in leading sectors in Egypt addressed some challenges facing both the Egyptian economy and the industrial sector, offering real-time solutions to navigate the complex situation. Here are the workshop’s main takeaways: Slow implementation Mohamed El Sewedy, Head of the Federation of the Egyptian Industries (FEI), highlighted…