July 2022 - ssrdind

July 31, 2022

Egypt’s engineering exports rise to $1.8B in first half of 2022

Egypt’s engineering exports rose during the first half of 2022 by 27 percent to $1.8 billion, compared to $1.4 billion in the same period of 2021, according to the monthly report of the Export Council for Engineering Industries.

Engineering exports witnessed a 4 percent increase in June 2022 compared to the same month 2021, reaching $303 million compared to $291 million in June of 2021, according to a press release.

The council’s report indicated that the most important sectors whose exports increased during the first half of 2022 compared to the same period in 2021 were electrical appliances (49 percent), cables (60), household appliances (10 percent), machinery (117 percent) and metals (46 percent).

Source:https://www.egypttoday.com/Article/3/117960/Egypt-s-engineering-exports-rise-to-1-8B-in-first

July 31, 2022

ADNOC Distribution acquires 50% of Total Energies in Egypt

The UAE’s ADNOC Distribution Company, listed on the Abu Dhabi Securities Exchange, announced, Thursday, that it has entered into an agreement to acquire a 50 percent stake in Total Energy Egypt.

ADNOC Distribution clarified, in a press release, that it had signed an agreement with “Total Energy Marketing Afrique S.A.S.” to acquire a 50 percent stake in Total Energy Marketing Egypt, with a value of approximately $186 million, in addition to an additional amount of up to $17.3 million, if certain conditions are met during the acquisition process.

Established in 1998, Total Energy Egypt has a diversified business portfolio that includes 240 retail fuel stations, over 100 retail stores, more than 250 oil change stations, car wash centers, wholesale fuel, jet fuel and lubricant operations.

Through the deal, ADNOC Distribution and Total Energies will develop the future growth opportunities for Total Energies Egypt by taking advantage of the available capabilities and exploring aspects of fruitful cooperation in the field of fuel and lubricant distribution and aviation business, enhanced by economic growth in the wake of the recovery from the repercussions of the COVID-19 pandemic..

The acquisition also includes the renovation of a number of service stations to comply with ADNOC’s brand standards, as well as the establishment of selected new sites in the future bearing its brand, strengthening ADNOC’s presence in the fast-growing Egyptian retail fuel distribution market.

The acquisition is expected to be completed during the first quarter of 2023, as the agreement is subject to the fulfillment of certain conditions, including approvals from the relevant regulatory authorities.

This acquisition is a new important step in the implementation of ADNOC Distribution’s strategy to grow and expand internationally, after it opened its first station outside the UAE in Saudi Arabia in 2018, where the company currently operates 55 service stations across the Kingdom, as at the end of March 2022.

Source:https://www.egypttoday.com/Article/3/117965/ADNOC-Distribution-acquires-50-of-Total-Energies-in-Egypt

July 31, 2022

3 reasons why to invest in Egypt, ITIDA’s CEO explains

Working on becoming an attractive hub for foreign investments, Egypt offers a variety of incentives and advantages for investors; CEO of Egypt’s Information Technology Industry Development Agency (ITIDA), Amr Mahfouz, reviews three reasons why investors would prefer Egypt to invest in.

Mahfouz told the Polish-English business magazine, Focus on Business, that the first and the highly positioned reason is Egypt’s unique position at the nexus of Europe, Africa, and the Middle East. It is considered a nearshore location to Europe and it shares an Eastern European Time (EET) zone.

“Second, Egypt is home to a large multilingual cost-competitive talent pool of +600k annual graduates; Egypt is therefore strongly pivoted to serve the EMEA region due to the availability and abundance of multilingual skills, time zone, and cultural affinity,” he added.

According to Mafhouz, the third reason is that Egypt offers a set of attractive incentives to foreign investors provided through the entire business lifecycle, aiming at tripling the size of Egypt’s BPO and ITO exports over the next five years.

He pointed out that Egypt has long been an attractive GBS location for multinationals with its large, well-educated talent pool, strategic location, European time zone, and reliable infrastructure. Amid the current global situation where the supply chain of many industries is being disrupted and reshaped, and hence the IT offshoring is not an exception.

“We firmly believe that this time for Egypt to have its fair share of the global business services market while emerging as an economic powerhouse in the region, enabled by the recent structural reforms and Egypt Vision 2030 national agenda,” he added.

ITIDA’s CEO stated that many businesses are diversifying their operations and delivery location portfolio where we see Egypt is very well positioned to cater for the global demand and bridge the digital skills gap and global shortage of talent.

This came during his interview with the English-Polish magazine where he discussed the Information and Communications Technology (ICT) sector in Egypt and steps taken by Egypt to become the next big hub for digital and high-end services.

Source:https://www.egypttoday.com/Article/3/117968/3-reasons-why-to-invest-in-Egypt-ITIDA%E2%80%99s-CEO-explains

July 31, 2022

Egypt aims to increase petroleum production to 790 bln during new fiscal year 22/23

During the new fiscal year 2022/2023, the government aims to increase production for the petroleum and mineral resources sector at current prices from 671.5 billion pounds in the previous year to about 790.9 billion pounds, an increase of 17.8 percent, according to the economic and social development plan submitted by the Minister of Planning, Dr. Hala Al-Saeed, and approved by both houses of Parliament (Representatives, Senators).

At constant prices, it is expected to rise to about 675.5 billion pounds during the same period, with a slight increase of 0.6 percent. The increase in production of crude oil and natural gas at these high rates is due to the rise in international energy prices.

The government targest to increase the output of the extractive sector to reach 686.9 billion pounds at current prices, compared to 575.6 billion pounds in the previous year, achieving a growth rate of more than 18.1 percent, at constant prices, to reach 581.2 billion pounds in the same period, with a slight increase of 1 percent due to the decline in the output of extractives Crude oil by 2.9 percent.

The economic and social development plan for the new fiscal year 22/23 directs investments for the development of the petroleum and mineral wealth sector amounting to 49.5 billion pounds during the year of the plan, of which 17.6 billion pounds was for refining activity, and EGP 31.9 billion for extraction activities, representing 3.5 percent of the total investment.

The private sector is expected to acquire the largest share of the sector’s investments by about 70%, while the public sector belongs to the remaining 30%, which is divided between the investments of each of the economic bodies 7.2 billion pounds, and public companies 7.8 billion.

The petroleum sector is one of the mainstays of economic growth, as it is a main source for providing the state’s energy needs, which contributes positively and directly to meeting the requirements of sustainable and comprehensive economic development plans adopted by the Egyptian state. As well as strengthening the trade balance by developing its exports to foreign markets and rationalizing its imports from them, in a sustainable manner consistent with the consumption needs of the growing population, and the requirements of the country’s ambitious development plans.

Source:https://www.egypttoday.com/Article/3/117982/Egypt-aims-to-increase-petroleum-production-to-790-bln-during

July 31, 2022

Al-Qamzi Developments invests EGP 14bn in 204-feddan SeaZen project in North Coast

AL-Qamzi Developments announced the launch of its new project, SeaZen — which spans 204 feddans — on Sunday, with investments worth EGP 14bn.

In a press conference Abdallah Al-Qamzi — Chairperson of Al-Qamzi Emirati Group — said that construction on the project will begin in October and that the first phase will be completed in 2025.

SeaZen offers 2,000 various residential units, including chalets and villas with different surface areas, Al-Qamzi added.

“We achieved several accomplishments in the Egyptian market through our projects since we started our operations in Egypt 12 years ago. Moreover, we are keen to have a strong presence in the Egyptian market through the injection of more investments in mega projects. This aligns with our expansion strategy in the coming period,” he noted.

For his part, Yasser Zidan — Executive Chairperson of AL-Qamzi Developments — revealed that the company completed the allocation procedures for the land that SeaZen will be located on, adding that the project will have a surface area of 204 acres in the North Coast near Al-Dabaa City with a beach that is 690 metres overlooking the Mediterranean Sea.

He also stated that all approvals regarding the project have been granted.

SeaZen is scheduled to be implemented over two phases, lasting about four years. The project will provide more than 4,000 direct and indirect working opportunities.

Zidan pointed out that his company has contracted DMA to carry out the construction works and engineering designs of the project.

He added that the investment opportunities in Egypt are promising, especially after the growth achieved by the real estate sector during the last years, asserting that the Egyptian economy is able to achieve more growth and attract more serious investments.

SOurce:https://dailynewsegypt.com/2022/07/04/al-qamzi-developments-invests-egp-14bn-in-204-feddan-seazen-project-in-north-coast/

July 31, 2022

Banks and companies injected EGP 46.368bn in Egypt under the Real Estate Financing Initiative

Banks operating in the Egyptian market and a number of real estate financing companies have injected EGP 46.368bn in financings to about 29,000 customers within the Central Bank of Egypt’s (CBE) initiative to finance real estate for low and middle-income people.

The Social Housing and Mortgage Finance Support Fund revealed in a report on Sunday that the banks provided real estate financing worth EGP 44.335bn to about 411,000 customers, while the volume of funds pumped by real estate finance companies amounted to EGP 2.193bn.

The National Bank of Egypt (NBE) topped the list of banks participating in this initiative, with a financing volume of EGP 12.34bn, benefiting 112,973 clients with a market share of 26.5%.

Banque Misr ranked second with a share of 21.4% at a value of EGP 9.976bn worth of loans directed to 91,336 clients, followed by the Housing and Development Bank with EGP 6.242bn of financing directed to 67,543 clients, representing a 13.4% share.

Banque du Caire came in fourth place with a value of EGP 2.997bn in financing, directed to 32,862 clients — a share of 6.4% — followed by the Commercial International Bank (CIB) with loans worth EGP 2.735bn obtained by 21,816 clients with a share of 5.9%.

Meanwhile, the Industrial Development Bank came in sixth place with EGP 1.664bn directed to 15,816 clients — a 3.6% share of the total financing.

Furthermore, QNB AL-AHLI provided financing worth EGP 1.559bn directed to 12,465 clients, followed by the United Bank with EGP 1.474bn and 11,318 clients.

Additionally, the Arab African International Bank ranked ninth with a value of EGP 1.097bn directed to 9,578 clients, followed by BLOM Bank in tenth place, with a financing volume of EGP 626.995m for 5,501 clients.

At the corporate level, Al-Tameer Real Estate Finance acquired the largest share of the financing by 1.7% with a financing value of EGP 813.617m for 6,742 clients.

Contact Real Estate Finance ranked second with a market share of 1.5% of the total real estate finance with a value of EGP 698.347m until the end of last June, targeting 5,364 clients.

Moreover, Al-Ahly Real Estate Finance came in third place with a share of 0.6% with a value of funds of EGP 285.116m directed to about 2,543 clients, and in fourth place came Amlak Real Estate Finance with a share of 0.5% and a value of EGP 252.940m in financing directed to 2,328 clients. Finally, Tamweel Financing came in sixth place with a financing size of EGP 68.66m for about 602 clients.

Source:https://dailynewsegypt.com/2022/07/17/banks-and-companies-injected-egp-46-368bn-in-egypt-under-the-real-estate-financing-initiative/

July 31, 2022

Hegaz Development invests EGP 1.2bn in 1st phase of Sokhna Hills Project

Chairperson of Hegaz Development Ibrahim Ahmed Al-Zawawi said that the company is developing the Sokhna Hills Project in Ain Sokhna on an area of 100 feddans and that it will be developed over three phases.

Al-Zawawi explained that the project includes residential units, a hotel, a commercial mall, and an athletic area, pointing out that the total investments of the first phase amounted to EGP 1.2bn.

He added that the first phase of the project includes 600 different units ranging from chalets, villas, and townhouses, noting that the completion rate of the first phase is approximately 50%.

Al-Zawawi also disclosed that it the company plans to deliver 90 fully finished units in the project within three months and 75 units within a year, in addition to delivering the rest of the units within two years, revealing that the company aims to bring in EGP 200m in sales by the end of this year.

For his part, Mohamed Makkawi — Marketing and Sales Manager of Sokhna Hills — said that the community is designed on a modern basis, and that the company provides various solutions and facilities in payment plans for clients.

The second phase of the project is scheduled to be delivered by the end of 2023, and the third phase in 2024.

In 1988, Hegaz Development started its work in the real estate market in Ain Sokhna and the Gulf of Suez. The company has developed a number of high-profile projects, including Hegaz Oasis and Dolphin Beach.

SOurce:https://dailynewsegypt.com/2022/07/25/hegaz-development-invests-egp-1-2bn-in-1st-phase-of-sokhna-hills-project/

July 31, 2022

Lozan Urban Development launches 2nd phase of Apex Business Mall at NAC

“The second phase of the project comprises unique units in a variety of areas that meet the ambitions and desires of customers by providing a number of commercial units under the ‘franchise system’ to achieve the highest investment return for customers in its project,” said Adel Abdel Moneim — Chairperson of LUD’s Board of Directors.

Lozan Urban Development (LUD) announced the launch of the second phase of its Apex Business Complex in the Downtown area of the New Administrative Capital (NAC).

Abdel Moneim added that the new phase includes a variety of facilities and flexible payment systems provided by the company to its customers in accordance with their different needs.

He explained that the mixed-use project comprises administrative, commercial, and medical units on an area of 2,600 sqm with investments of approximately EGP 700m.

The project also includes a ground floor and 12 storeys with a variety of units, with areas starting from 35 metres up to 100 sqm.

The chairperson added that the company offers payment plans with 5% down payment and payment periods up to 12 years, and that it expects to fully deliver the project within four years of construction.

He also noted that LUD has contracted engineering consultant office HAFEZ Consultants for the project’s engineering designs, in addition to CAD — a business management company — as a management and operating consultant to ensure the operation and management of the Apex Business Mall.

LUD has succeeded in developing a number of various projects in Abu Dhabi, UAE, with investments that exceeded AED 250m, in addition to its strategic partnership with a number of companies operating in the NAC with investments of up to EGP 300m.

Moreover, the company is currently working on a number of administrative, commercial, residential, and tourism projects in the Delta’s governorates with investments amounting to EGP 350m.

https://dailynewsegypt.com/2022/07/25/lozan-urban-development-launches-2nd-phase-of-apex-business-mall-at-nac/

July 3, 2022

Oman set to extend economic reforms as finances stabilise after Covid shock

Oman is set to extend an economic overhaul that has helped to stabilise the finances of the weakest Gulf state, according to its foreign minister.

“Our fiscal position is now sound and improving,” Sayyid Badr bin Hamad Albusaidi said in a podcast hosted by Al-Monitor.

“This gives us really a solid foundation to make real progress toward some of the perhaps ambitious economic goals we have set for ourselves in the vision,” he said, referring to Vision 2040, an economic blueprint.

Since taking power in January 2020, Sultan Haitham bin Tariq has moved to balance Oman’s finances and prepare it for a time after oil.

The effort included cutting subsidies, introducing a value-added tax and even planning for income tax – which would be a first for a Gulf Arab state.

Oman’s cost-cutting steps along with a rally in oil prices helped the sultanate return to global debt markets. Some rating agencies have raised their outlook for the country.

Future reforms will look at subsidies, public-sector employment and the provision of safety nets, while “developing ways for those who enjoy the privileges of relative wealth to make an appropriate contribution to the common good,” the foreign minister said.

A “renewed emphasis on inclusion will contribute to making Oman an even more attractive and more desirable location for foreign business and investments,” he said.

Source:https://www.arabianbusiness.com/politics-economics/oman-set-to-extend-economic-reforms-as-finances-stabilise-after-covid-shock

July 3, 2022

Oman desalination major completes first phase of IPO

Barka Desalination Company (BDC) has announced the successful close of the first phase of its IPO for listing on the Muscat Stock Exchange (MSX).

Based on the price discovery process completed through book building by large and institutional investors, the allotment price for shares has been determined at 145 baisa at the highest end of the price range of 115-145 per share.

The company previously said it will offer 40 percent of its share capital to the public through the IPO.

Phase one of the IPO, being managed by Bank Muscat, received a strong response with an oversubscription of 4.83 times of offer shares, a statement said.

It added that the investors included a cross-section of Oman’s leading corporates, banks, insurance companies, asset management companies, sovereign entities, pension funds, as well as high net worth individuals.

As anchor investors to the IPO, each of National Power and Water Co, an investment arm of Bahwan Engineering Group, and Bank Muscat had provided commitments to invest up to 10 percent of the IPO at 145 baisa per share.

“The interest from institutional and large investors demonstrates the strong interest in this offering from the investor community in Oman as an attractive offering,” the company said in the statement.

Phase two of the IPO, where shares will be offered to retail investors at the price of 145 baisa, opens for subscription from Tuesday until February 14.

Patrick Thienpont, CEO of BDC, said: “We are extremely pleased with the success of phase one of the IPO, which is a positive indication of the confidence in the industry and market in BDC.

“Retail investors now have the advantage to see the strong response from the large investors and can now apply to become part of the success story of Barka Desalination.”

Bank Muscat Investment Banking, Oman’s largest investment banking team, is the financial advisor and sole issue manager for the IPO transaction.

Source:https://www.arabianbusiness.com/gcc/oman/oman-markets/oman-desalination-major-completes-first-phase-of-ipo