Climate change and the race to net zero are arguably the most significant challenges facing the construction industry. The building and construction industry is responsible for 40% of worldwide greenhouse gas emissions. Global Property Guide, a real estate data curation portal, found real estate prices in Egypt rose by nearly 58% between January 2022 and 2023. A significant portion of those increases is due to more expensive building materials. Published research from the Faculty of Engineering in Mansoura estimated 60% to 70% of the cost of low-income housing, which the developers usually sell at near-zero profit margins, is down to…
Author: Ola Noureldin
Green and sustainable finance—broadly defined as financial tools that support activities that address climate change and other environmental and social challenges—plays a critical role in realizing the UN Sustainable Development Goals (SDGs) and the Paris Agreement’s target of limiting global warming to 1.5 degrees Celsius. Such funding comes from the public and private sectors, including international financial institutions, central banks and financial regulators, banks and institutional investors. Among depository institutions, the financing of environmentally friendly projects has been dubbed ‘green banking.” The Central Bank of Egypt (CBE) issued guidelines for sustainable financing in Egypt’s banking sector in July 2021, based…
The S&P Global Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, dropped to 46.7 in March, down from February’s 46.9. As such, the index moved further below the 50.0 no-change thresholds, where it has been mired since November 2020. The reading signaled a steeper deterioration in private sector operating conditions from the previous month. March’s downtick was chiefly due to a sharp contraction in new orders as steep inflationary pressures dampened client demand. This, coupled with difficulty securing key inputs due to import controls and currency restrictions, led to a marked fall in output levels.…
Egypt announced on March 8 that it would be offering citizenship to foreign investors willing to spend at least $250,000 in the country, as it struggles to fill its devoured foreign reserves. The announcement comes as the value of the Egyptian pound continues to plummet and the exchange rate of the US dollar continues to hike. Since March 2021, Egypt has been struggling with a shortage of foreign currency reserves. With three devaluations in less than one year, the Egyptian pound has lost nearly half of its value. According to Prime Minister Mostafa Madbouly’s decree, the Egyptian nationality will be…
Egypt has resumed its initial public offering program to sell its stakes in state-owned companies, announcing 32 planned companies. Starting from the first quarter of 2023, Egypt will hold IPOs for 32 state-owned companies to strategic investors via offerings on the Egyptian Exchange, and a mix of both, Prime Minister Mostafa Madbouly said in February. Madbouly said that the IPOs will include companies from 18 sectors, selling stakes in companies within sectors such as banking, insurance, construction, energy, tourism, oil, energy, and petrochemicals. “The whole goal is to increase the participation of citizens and the private sector in the development process…
The Egypt Economic Profile is an essential reference for decision-makers looking for timely information about the country’s transforming economy. It is filled with key, up-to-date data on all of Egypt’s major services and goods sectors as well as a review of the current macroeconomic landscape – including foreign trade, investment and the stock market. This report is distributed to more than 2,000 AmCham Egypt member companies and affiliate members as well as local institutions that rely on well-researched, trustworthy information to guide their decisions. All AmCham Members receive one complimentary copy. The Egypt Economic Profile is sponsored by bp and…
The Central Bank of Egypt (CBE) has launched in November its financial inclusion strategy for 2022-2025, which sets objectives for financial inclusion in the country. Egypt’s financial inclusion rate — the percentage of citizens above the age of 16 who hold a bank account, mobile wallet, or pre-paid card — has grown 131% between 2016 and 2022. 40 million adults, around 60.6% of Egyptians were banked by June 2022, up from 17.1 million in 2016, the report says. More than 56% of Egyptian adults — nearly 37 million people — were banked at the end of 2021, up from almost…
John Kerry, a former US secretary of state and now the special presidential envoy for climate has called for the private sector to lead global decarbonization efforts and keep alive the goal of limiting temperature increases within a key global warming threshold of 1.5 degrees Celsius. “World leaders have less than twelve years to implement policies to avoid the worst consequences of the climate crisis, not the crisis itself,” Kerry told the special dinner event titled “US-Egypt Partnership: Towards a Sustainable Tomorrow,” hosted by the American Chamber of Commerce in Egypt, in partnership with the U.S Chamber of Commerce on…
Egypt has a host of resources to support its transition from a fossil fuel-driven economy to a green, sustainable one. That transition started in earnest with the Renewable Energy Law 203 of 2014, which offered new tariff plans and other incentives to attract investors. In 2016, the state launched its 2035 Sustainable Energy Strategy, which addressed restructuring the gas sector, promoting energy efficiency, and combating global warming by reducing greenhouse gas emissions. To power a more sustainable, eco-friendly economy, Egypt needs to diversify its energy sources. AmCham Egypt’s latest Industry Insight highlights the growing investment opportunities in renewables, decarbonization, green…
Bidayat, a subsidiary of Alsara Investment Group, the investment vehicle founded by Valentino board chairman, Rachid Mohamed Rachid, has acquired an undisclosed minority stake in Egyptian jewelry brand Azza Fahmy, a statement released Monday said. Financial details were not disclosed, but Azza Fahmy said the new capital is expected to support the brand’s regional development, retail expansion and international growth. Through the fund, Azza Fahmy is looking to boost its sales in the Middle East and North Africa as well as New America by launching two flagship stores in the first half of 2023, according to Fashion Network. Bidayat has…