ECONOMY - 1 (2019) REPORT - AMCHAM EGYPT INC
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Economy Sector - Q1 2019 Report
Economy
1 (2019) Report
American Chamber of Commerce in Egypt - Business Information Center 1 of 92Economy Sector - Q1 2019 Report
Special Remarks
The Economy Q1 2019 report provides a comprehensive overview of the Economy sector with focus on top tenders, big List of sub-sectors
projects and important news.
Banking, Finance & Insurance
Economy
Tenders Section
- Integrated Jobs (Having a certain engineering component) - sorted by
- Generating Sector (the sector of the client who issued the tender and who would pay for the goods & services ordered)
- Client
- Supply Jobs
- Generating Sector
- Client
Non-Tenders Section
- Business News
- Projects Awards
- Projects in Pre-Tendering Phase
- Privatization and Investments
- Published Co. Performance
- Loans & Grants
- Fairs and Exhibitions
This report includes tenders with bid bond greater than L.E. and valuable tenders without bid bond
Tenders may be posted under more than one sub-sector
Copyright Notice
Copyright ©2019, American Chamber of Commerce in Egypt (AmCham). All rights reserved. Neither the content of the Tenders Alert Service (TAS) nor any part of it may be reproduced,
sorted in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the American
Chamber of Commerce in Egypt. In no event shall AmCham be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits.
American Chamber of Commerce in Egypt - Business Information Center 2 of 92Economy Sector - Q1 2019 Report
Banking, Finance & Insurance - Non Tenders Section
Type Description Date Published
Business News
56 vessels crossing the Suez Canal on March 11, 2019, carrying 3.8 million tons of oil, containers and cargo equally divided between those crossing from the north with 2 Mar 11, 2019
million tons & those crossing from the south with 1.8 million tons.
Recent released data of the International Tourist Agency regarding the number of tourist arrivals in Egypt in 2018 showed they reached 11.35 million having spent 121.5 Feb 13, 2019
million tourist nights marking 3 million nights increase. That was reported in the media quoting Dr. Said El Battouty, Economic Advisor to the UN & the AYATA. They
included 6.95 million tourists from Europe, 3 million tourists from Arab Countries, 669,000 tourists from Asian countries, 456,000 tourists from the Americas, 159,000
from African Countries a.o.
Egypt's current account deficit narrowed to $1.751 billion in the three months to end-September, the central bank said on Thursday, from an apparently revised $1.754 Jan 13, 2019
billion a year earlier.
Last year the central bank had put the July-September 2017 figure at $1.64 billion.
The trade deficit increased to $9.90 billion from $8.91 billion, with exports rising 16 percent to $6.79 billion and imports 13 percent to $16.68 billion.
Petroleum exports surged 58 percent to $2.81 billion and imports climbed 27 percent to $3.50 billion, the central bank said in its quarterly balance of payments report.
Remittances from workers abroad, a major source of foreign currency, edged up to $5.91 billion in the quarter from $5.82 billion a year earlier. The central bank
apparently revised last year's figure, which it had previously put at $5.97 billion.
Partly to attract foreign investment, Egypt in late 2016 cut the value of its currency by about half against the dollar as part of a three-year, $12 billion loan agreement
with the IMF. It also implemented a value-added tax and has been slashing energy subsidies.
Net foreign direct investment fell to $1.1 billion in July-September from $1.84 billion, revised from $1.58 billion, and net petroleum investment fell to $482.1 million from
about $912.7 million a year earlier, according to a Reuters calculation. Source: Reuters
Al Ahly Kuwaiti Bank inaugurating its 21st new branch in Al Mohandesin last week on Nadi El Seid St.in Dokki, in Greater Cairo. Event was attended by Mr. Ali Maarefi, Jan 02, 2019
Chairman of Egypt Branch, Mr. Khaled Al Sellawi, CEO of the same among other executives & VIP customers. Mr. Maarefi announced the bank plans to dispose on 57
branches by the end of 2021.
Cash transfers of Egyptian expatriates abroad during 2018 increasing by $ 778.2 million or 3.1 % to reach $ 25.5 million up from $ 24.7 million reached in 2017. The Feb 14, 2019
Bank noted that the said transfers increased in December 2018 only by $ 270 million to reach $ 2.2 million deemed by all means a strong record in country's economy
evaluation.
Central Bank of Egypt requesting expression of interest for consulting services for the modernization of its clearing & settlement of depository system (CSD) for Mar 04, 2019
government securities. Expression of interest must be delivered to the address below at 54 Gomhouria St., Cairo, Egypt by 14 March 2019. E Mail contact is salwa-
ayoub@cbe.org.eg We hardly recommend personal contact to verify the issue.
N.B.E. President announcing the soon opening of 20 new branches to extend electronic banking services to attract the youth. The bank claimed it has already started the Jan 14, 2019
experience with the branch at City Star Mall & is planning other similar branches at the Arabs Mall in 6th October City, Mall Point 90 in New Cairo City & City Center in
Alexandria. Development will strengthen a fast growing trend of more I.T. trend in the banking sector & in the retail industry.
Projects in Pre-Tendering Phase
New company starts during the month of February 2019 attracting 2,172 companies & pumped funds, including. New company starts during the month of February 2019 Mar 23, 2019
attracting 2,172 companies & pumping funds, including pumped capital increases totaling L.E. 6.3 billion. That was announced by Dr. Sahar Nasr, Minister of
Investments referring to the monthly investment report of February 2019.
American Chamber of Commerce in Egypt - Business Information Center 3 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
Type Description Date Published
Business News
Egypt achieved self-sufficiency in natural gas, stated Minister of Petroleum Tarek el Molla in a meeting with President Abdel Fahat al-Sisi and Prime Minster Moustafa Mar 10, 2019
Madbouli.
The reasons of achieving self-sufficiency boil down to accelerating the excavation works for natural gas and offering international tenders that encouraged ‘ExxonMobil’
company to pump investments in the Egyptian market for the first time and ‘Shell’ company to return its investments in the market after a ten-year hiatus, the Minister
said.
Egypt achieved the highest production of crude oil and natural gas in February with an output of 1.8 million barrels a day, the minister added.
One million housing units were supplied with natural gas in 2018, recording the highest rate ever in Egypt, Molla said, noting that investments in the petroleum sector
over the past four years hit 27 billion dollars.
After being updated on several axes regarding the important achievements implemented recently in petroleum sector, President Sisi directed government to continue all
required efforts to heavily focus on the oil and gas infrastructure projects, and to invite first international tenders for gas exploration in the Red Sea in order to achieve
optimal economic utilization of all potentials and natural resources needed for sustainable development.
Molla also signed a new petroleum agreement with German company DEA, with investment worth $20 million.
Petroleum Ministry clarified in a statement that the agreement is to explore oil and gas in Ras Badran and Khaleeg el Zeit in the Gulf of Suez .
The agreement stipulates the commitment of the German company to carry out drilling activities and development of production facilities, operation and maintenance of
the extraction plant in the Gulf of Suez; the whole production of Butane gas will be transferred to the Petroleum Authority.
The European Union (EU) plans to launch a multi-year program for the water sector in Egypt, including grants worth 120 million Euros, EU ambassador to Egypt Ivan Mar 24, 2019
Surkos said Saturday.
Called EU4WATER, the program aims at supporting the water sector in Egypt and achieving the water security according to Surkos.
This was announced in a speech during a celebration marking the world water day, inaugurated in Qanater city by Minister of Irrigation Mohamed Abdel Aati, and
Minister of Youth and Sports Ashraf Sobhi along with other senior officials and African ambassadors.
Surkos said that he wishes the program deal to be signed in the summer and its implementation starts by the end of 2019.
The EU contributed to projects worth 450 million dollars over the past 10 years, he said.
The State budget deficit hit LE 222.5 billion from July to January of 2018/2019, accounting for 4.2 percent of the Gross Domestic Product. Mar 17, 2019
In a report, the ministry said revenues rose by 29 percent to hit LE 456.5 billion against LE 353.7 billion during the corresponding period of the previous fiscal year.
The expenditure increased by 19 percent to reach LE 678.4 billion compared to LE 570.1 billion.
Wages and compensations increased 17.5 percent to hit LE 153.4 billion.
American Chamber of Commerce in Egypt - Business Information Center 4 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
Type Description Date Published
Business News
Egypt’s oil sector executing new plans that aim to improve the efficiency of transportation and distribution system of petroleum products to fulfill domestic needs, said Oil Mar 24, 2019
Minister Tarek el-Molla on Saturday.
El-Molla made these remarks during ameeting of the general assembly of Nile Company for Petroleum Marketing to endorse the business outcomes for 2018, the
ministry said in a statement.
The minister asserted that the transportation and distribution system of petroleum products has witnessed a quantum leap nationwide over the past few years, which he
said has contributed to the oil market stability.
Meanwhile, el-Molla urged taking all security, safety, and environmental protection measures while transporting and unloading fuels from warehouses to supply stations.
The Central Bank of Egypt (CBE) will issue treasury bills (T-bills) worth EGP 18.5 billion ($1.07 billion) on Thursday on behalf of the Ministry of Finance (MoF). Mar 28, 2019
The first tranche of the T-bills will be offered through 182-day notes at EGP 9 billion, while the second tranche amounts to EGP 9.5 billion and will be through 364-day
notes, according to the CBE’s official website.
The issuance will be used to finance the budget deficit, the CBE added.
Foreign investments in Egyptian T-bills and T-bonds reached $15.8 billion at the end of February, the Egyptian finance minister said.
The North African state plans to cut debt-to-gross domestic product (GDP) by 92% this year.
The MoF previously revealed plans to finance the general budget deficit of EGP 511.2 billion in fiscal year 2018/2019.
South Korean tech giant Samsung said it aims to expand production lines in Egypt for home appliances and mobile phones, a statement by the Egyptian investment and Feb 28, 2019
international cooperation ministry said on Tuesday.
The Egyptian investment ministry quoted Samsung officials as saying during a high-profile Egyptian delegation's visit to the East Asian country that it has invested $265
million in Egypt in the past years.
The volume of exports have risen to $780 million through Egyptian-made electronics to 42 countries.
The statement came during an Egyptian-South Korean business forum, which saw the biggest gathering by South Korean investors with representatives from Egyptian
companies.
According to the statement, the South Korean deputy prime minister and minister of economy and finance Hong Nam-ki said that Egypt enjoys a strategic location for
tourism, investment, and establishing logistic zones.
Since Monday, Egypt's Investment and International Cooperation Minister Sahar Nasr, Finance Minister Mohamed Maait, and Suez Canal chairman Mohab Mamish flew to
South Korea to discuss attracting South Korean investments to Egypt.
South Korean investments in Egypt stand at $560 million through tech giants LG and Samsung, according to Egyptian officials.
Egypt’s net foreign reserves rose to $44.06 billion at the end of February, the central bank said on Monday, up from $42.616 billion in January. Mar 05, 2019
Egypt’s foreign reserves stood at $42.524 billion at the end of February last year.
American Chamber of Commerce in Egypt - Business Information Center 5 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
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Business News
gyptian President Abdel-Fattah El-Sisi said that Egypt looks forward to promoting economic and commercial relations with Japan via promising investment opportunities Mar 12, 2019
in the Egyptian market in various sectors.
During a meeting with the chairman of the Japan External Trade Organisation (JETRO) Hiroyuki Ishige, El-Sisi reiterated that Egypt is keen on direct interaction with
Japanese businessmen to review Egypt's capabilities, including trained labor and the free trade agreements inked with Arab, African and European countries.
He further highlighted the economic reform measures adopted by the government in order to encourage investments and remove obstacles facing the private sector,
said presidential spokesman Bassam Rady.
The get-together, held between President El-Sisi and a high-level delegation of Japanese investors, took up the future prospects of Egypt's economy and the
comprehensive economic reform programme being implemented by the cabinet.
The delegation, which comprises members of the Egypt-Japan Business Council, hailed the ambitious development plans adopted by the state and the political
leadership, which are helping Egypt restore its pivotal regional status, the spokesman said.
South Korean Prime Minister Lee Nak-yeon expressed his country's appreciation for having distinguished relations with Egypt in view of its vital role in maintaining Feb 28, 2019
stability and peace in the Middle East region.
The South Korean premier's remarks were made during his meeting on Tuesday with Egypt's Minister of International Cooperation and Investment Sahar Nasr, Minister
of Finance Mohamed Maait and head of the Suez Canal Authority Mohamed Mamish, currently on a business visit to Seoul.
A statement released by the investment ministry said that Nasr asserted that Egypt is seeking to set up partnership relations with South Korea as it is considered a
successful example in the economic field, adding that Cairo is looking forward to enhancing its relations with Seoul in all domains, especially in light of the mega
development projects which are currently under construction in Egypt.
Meanwhile, Finance Minister Mohamed Maait reviewed the economic reform efforts introduced by the Egyptian government, the recent economic indices as well as
growth rates.
Mamish also briefed the Korean side on the investment opportunities in the Exclusive Economic Zone in Suez Canal which includes six harbours, adding that currently
161 companies are operating in the zone.
The focus of business in EEZ in the coming phase is to build three ship arsenals.
The Korean premier, said his country is willing to join in partnership with Egypt in the ship building in the EEZ of the Suez Canal, asserting that Korean companies could
benefit from such projects.
American Chamber of Commerce in Egypt - Business Information Center 6 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
Type Description Date Published
Business News
The government has to support the domestic consumption of electricity with subsidies up to LE 46.7 billion; however, the amount of subsidy available is only LE 16 Mar 03, 2019
billion, so the Ministry of Electricity raised the electricity of some consumer segments to compensate LE 10 billion, Electricity Minister Mohamed Shaker said in a three-
hour meeting on Saturday with the Energy and Environment Committee of the House of Representatives, according to al-Borsa news website.
Even if all electricity bills are collected, the deficit will be LE 21 billion, he said, pointing out that the sector is going through a difficult stage and that the ministry will
resort to increasing electricity prices in July.
The ministry launched a service to charge the electric meters through an application on mobile phones, Shaker said, pointing out that the service is currently available
only in some areas and will be applied widely soon.
Shaker announced in January that lifting the electricity subsidies has been postponed from the 2018-2019 fiscal year to 2021-2022, due to changes in the US dollar
exchange rate.
Shaker pointed to a deficit in the collection of electricity bills of LE 15 billion, so the trend was initiated to install pre-paid electricity meters.
Since June 2015, electricity has not been cut off once due to power shortage, but any power cuts were the result of malfunction, Shaker said.
The Electricity Ministry increased electricity prices in July 2018. In 2017, Egypt had hiked household electricity prices by up to 40 percent. Egypt’s government had
previously increased electricity prices in July 2015.
Egypt’s government announced in 2017 that it would lift energy subsidies over five years as part of the economic reform program sponsored by the International
Monetary Fund (IMF), which includes eliminating fuel subsidies.
In an attempt to reinvigorate its economy since 2011, Egypt obtained an IMF loan in 2016 in exchange for implementing a rigorous reform program, beginning with the
flotation of the pound. Egypt also removed its fuel subsides, causing an increase in fuel prices by 66.6 percent.
Egypt’s non-oil exports reached $2.043 billion in total by the end of January, according to a statement released by the General Organisation for Export and Import Mar 12, 2019
Control (GOEIC) on Monday.
Non-oil manufacturing exports amounted to $1.611 billion during the same month, whereas food exports registered $432 million, the statement added.
Egyptian exports to Arab countries amounted to $747 million, followed by those to EU at $637 million, the US at $131 million, Africa at $117 million, and others at $410
million, the organisation said.
Egypt's Petroleum Minister Tarek Tarek El-Molla has stressed the importance of expanding operational and maintenance services in refining and petrochemical projects Mar 26, 2019
using the latest technologies to help increase production rates and maximise the value gained from petroleum wealth.
El-Molla’s statements were made at a General Assembly Meeting of the Egyptian Projects Operation and Maintenance (EPROM) to endorse its performance report for
2018.
In a statement on Monday, the Egyptian Minister called for focusing on projects related to engineering inspection, technical support services and training in the field of
improving electricity efficiency for companies affiliated with the petroleum sector.
Speaking at the meeting, EPROM chairman and CEO Amgad El-Ahmadi said that his company has achieved the highest performance rates in its various sites.
He further underlined that EPROM has managed to raise the efficiency of production units at the Middle East Oil Refinery.
American Chamber of Commerce in Egypt - Business Information Center 7 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
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Business News
Egypt’s Complete Energy Solutions, a specialised Engineering, Procurement, and Construction company, is negotiating with one of the companies operating in food Mar 28, 2019
industries sector to build a solar power plant with a capacities of 1 megawatt.
The new solar power plant will be with investment between $60 and $70 million to meet the company’s needs of electricity and energy.
Al-Haddad added that his company has multiple solar energy solutions and systems suitable for all areas, noting that it works on building solar plants with capacities
between 1- 50 megawatts.
CES has opened a solar power plant with 20MW capacity for Al – Daher Agricultural Reclamation Company. The plant is located in Toshka area with investments up to
$30 million, Al-Haddad pointed out.
The General Agency of Public Mobilization and Statistics (CAPMAS)¡ has issued a statement says that Egypt’s produce of electricity of renewable sources grew by 24.9% Mar 24, 2019
in the course of 2016-2017.
Those sources include the sun and wind.
The amount of electricity generated in that year was estimated at 2780 megawatt hour, compared to 2225.5 megawatt hour in 2015-2016.
The CAPMAS issued a statement on the International Day of Meteorology that comes on March 23¡ saying that consumption of natural gas in Egypt grew by 12.9% in
2106-2017 to hit 41503 thousand tons.
On the other hand¡ consumption of petroleum products retreated in that year to 37837 thousand tons. That volume of consumption declined by 3.9 %
The National Bank of Egypt (NBE) aims to pump LE 180 billion to finance mega and infrastructure projects during three years, Vice Chairman of the bank, Yehia Abul Feb 26, 2019
Fotouh said.
Abul Fotouh elaborated that the volume of the projects’ finance portfolio currently reached LE 400 billion, adding that the bank targets to raise the volume to LE 580
billion by the end of 2021.
“NBE targets to achieve an annual growth rate of 15 percent in corporate finance portfolio,” he stated, adding that this portfolio includes financing companies operating
in the sectors of petroleum, electricity, infrastructure and mega projects.
Furthermore, the vice chairman of NBE said that the volume of financing the bank offers to mortgage rose to LE 6.4 billion and includes LE 400 million for middle-income
class.
Upon the Central Bank of Egypt’s (CBE) initiative of mortgage, the volume of financing hit LE 6.4 billion to around 63,000 clients.
CBE’s initiative targets low and middle- income citizens.
In September, NBE signed a loan contract worth $600 million with China Development Bank in order to finance the working capital of the bank’s clients after signing a
financing agreement worth €375 million with the European Investment Bank (EIB) by the end of July to fund investments in small and medium-sized enterprises (SMEs)
and mid-caps in Egypt.
NBE allocates 27 percent of the market share in terms of credit and deposit portfolios and ATMs network.
American Chamber of Commerce in Egypt - Business Information Center 8 of 92Economy Sector - Q1 2019 Report
Economy - Non Tenders Section
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Business News
Egypt’s Minister of Electricity and Renewable Energy decided to postpone lifting electricity subsidies to 2021-2022 state budget in spite of the high cost of energy Mar 28, 2019
production, Mohamed Shaker said.
During a meeting organized by the Energy Committee of the Egyptian Businessmen’s Association, he said that the government will continue supporting low-income
citizens
Despite the increase in electricity prices, Egypt is still one of the lowest countries in the world in this regard, Shaker added.
Shaker explained that the price of selling electricity for high voltage is up to $9 globally, compared to $6 in Cairo, reassuring businessmen that energy prices will not
exceed those of foreign competitors.
Shaker reviewed his ministry’s strategy till 2030, starting from the measures taken to overcome the problem of energy deficit, and noting that they were able to add
3,636 MW in 8.5 months with investments of $2.7 billion.
He pointed out that the long-term strategy of the Ministry of Electricity is to provide electric power until 2035 with investments of $135.3 billion to add 51,000 MW to the
national electricity grid by adding new capabilities to the national network through coal-fired stations starting 2019.
Egypt, the world’s largest wheat buyer, aims to harvest 3.6 million tonnes of its own wheat in the coming season that starts in April, the supply minister said on Mar 10, 2019
Wednesday.
The state will pay farmers between 655-685 Egyptian pounds($38-$39) per ardeb (150 kilograms) of wheat depending on quality, Ali Moselhy said.
“This is a fair and special price ... We are targeting [a harvest of] 3.6 million tonnes and the funds from the finance ministry have been secured,” Moselhy said, in
footage broadcast by state TV.
The head of the farmers’ union, however, told Reuters that farmers had requested the government pay 800 Egyptian pounds per ardeb and that the current price would
drive farmers away from growing wheat.
“I expect the crop to fall this year due to the spread of yellow rust and climate change, which will increase the losses incurred by farmers,” Hussein Abu Saddam said.
Egypt procured 3.15 million tonnes of wheat during the harvest season last year, one of its lowest tallies in years, at 570-600 Egyptian pounds per ardeb.
Traders said at the time that some of the local crop was bought by private mills, which offered higher prices than the government, as global prices rose above the
government’s price during harvest time.
Egypt’s Ministry of Public Business Sector seeks to pump investments of 25 billion Egyptian pounds to develop Textile sector, Hesham Tawfik said. Mar 21, 2019
The minister added that these investments are in the frame work of the ministry’s plans to convert the textile centers into export outlets through upgrading their
capacities , efficiency and productivity plans.
He pointed out that the ministry is keen on providing all means of technical support as well as financial support to develop the textile industry and turn it into profitable
industries during the medium term.
The minister further noted that the ministry also pays attention to the other sectors, mainly cars through the signing of new contracts and partnerships with new
investors to support the presence of Egyptian cars again.
American Chamber of Commerce in Egypt - Business Information Center 9 of 92Economy Sector - Q1 2019 Report
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Minister of Investment and International Cooperation Sahar Nasr met with the CEO of the International Islamic Trade Finance Corporation Hany Salem Sonbol on Friday, Mar 03, 2019
to discuss efforts to increase ITFC support for the private sector through investment projects.
The ministry has been working on increasing the volume of direct foreign investment and paving the way for increasing private sector investment in Egypt, Nasr said
according to a ministry statement.
The minister praised the role ITFC played in providing basic commodities for citizens through a $3 billion agreement signed last year.
Sonbol said the total funds from his group to Egypt reached $8 billion dollars last month, which contributed to supporting small and medium-sized enterprises.
Egypt’s Prime Minister Moustafa Madbouly said on Wednesday recent statements by IMF’s managing director praising the state of Egyptian economy indicate that the Jan 31, 2019
country is on the right track with its ongoing economic reform programme.
Last week, the International Monetary Fund’s (IMF) managing director Christine Lagarde said Egypt has made substantial progress as evident in the success achieved in
macroeconomic stabilisation.
Lagarde noted that Egypt’s growth rate is among the highest in the region, with the budget deficit on a declining trajectory and inflation on track to reach the Central
Bank of Egypt’s target by the end of 2019.
Madbouly added that Lagarde’s remarks are having a positive impact internationally.
The prime minister also discussed the outcome of his recent visit to Switzerland to attend the Davos economic forum, saying that the Egyptian delegation received
appreciation during the gathering thanks to the country’s successful economic reform programme.
On foreign relations, Madbouly praised the outcome of French President Emmanuel Macron’s recent visit to Egypt, which witnessed the signing of cooperation
agreements in many areas to push forward bilateral relations and attract more French investments into Egypt.
Also at the meeting, Minister of Education Tarek Shawky said he discussed with Apple officials in Davos how to enhance cooperation and integrate technology into
Egypt’s new education system using devices created by Apple.
Minister of Agriculture Ezzeddin Abu Steit reviewed the outcome of his recent visit to Zambia and his meeting with Zambian President Edgar Lungu in Lusaka to discuss
cooperation between the two countries, especially in the fields of agriculture and fish farming.
BP’s Chief Executive Bob Dudley on Monday said the company will invest about $1.8 billion in Egypt this year and he expects a crude oil price of $50-65 a barrel over the Feb 12, 2019
next year.
Dudley added that the current oil price is healthy and fair and that the market feels balanced.
Misr Insurance Holding has stated the total investments of the company and its subsidiaries in Egypt reached EGP 65.4 billion ($3.73 billion) during the fiscal year Feb 24, 2019
2017/2018, up 13.2% from the year-ago period.
Misr Insurance’s revenue surged 53.3% year-on-year to EGP 1.744 billion in FY17/18, according to the Middle East News Agency (MENA).
Net profit went up 56.6% to EGP 1.45 billion in FY17/18, compared to the year before.
The insurer’s subsidiaries revenue rose 15.8% year-on-year to EGP 16 billion in the last fiscal year, while the three companies’ net profit reached EGP 3.204 billion.
Eng. Mohamed El Sewedy, Head of the Egyptian Federation of Industries, announced the increase of the bilateral trade between Egypt & Greece in 2017 by 22.7 % Mar 06, 2019
above their level in 2016. Eng. El Sewedy added that ongoing Greek development projects operating in Egypt reached 160 units involved with industry, services,
construction, tourism, communication & I.T.
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Italian energy company Eni on Thursday announced a new natural gas discovery off the Egyptian coast. Mar 17, 2019
The discovery is in the Nour North Sinai Concession located in the Eastern Egyptian Mediterranean, some 50 kilometres north of the Sinai peninsula, which Eni operates
with a 40 percent stake.
"The Nour-1 New Field Wildcat (NFW), which has led to the discovery, was drilled by the Scarabeo-9 semi-sub in a water depth of 295 metres and reached a total depth
of 5,914 metres," the company said in a statement on its official website.
The Nour-1 well found an estimated gas column of 90 metres, Eni said, adding that the well has yet to be tested.
Eni said it would start the feasibility studies to "accelerate the exploitation of these new resources" after finalising the discovery evaluation.
Eni signed a concession agreement for exploration in the Nour prospect in August 2018.
In the joint concession with Egyptian Natural Gas Holding Company (EGAS), Eni holds a 40 percent stake, British Petroleum holds 25 percent , Mubadala Petroleum 20
percent and Tharwa Petroleum Company 15 percent.
Eni’s 2015 discovery of the giant Mediterranean gas field Zohr, estimated to hold around 30 trillion cubic feet of gas, has promoted gas exploration in Egypt.
American Chamber of Commerce in Egypt - Business Information Center 11 of 92Economy Sector - Q1 2019 Report
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Cairo-based Al Ahly for Real Estate Development Sabbour (Al Ahly) is expecting sales to rise by around 9 percent this year to hit 6 billion Egyptian pounds ($346.6 Mar 28, 2019
million), up from 5.5 billion pounds in 2018, its chief executive has told Zawya.
In an interview at the Cityscape Egypt exhibition, the company’s CEO, Ahmed Sabbour, told Zawya that the company is also planning to open marketing offices in Saudi
Arabia and Kuwait this year, working with joint venture partners to offer people in each market access to its projects in Egypt.
“The company carries out residential projects through Saudi and Kuwaiti partnerships, besides other residential and commercial projects, inside Egypt,” Sabbour said.
The firm has a project with Kuwaiti real estate firm Manazel Holding in New Cairo that will start “within the second half of 2019”, Sabbour said. The first phase, which
involves an investment of 2.25 billion points, will see its flagship Aria compound start on site in Mostakbel City.
“The project will be carried out on a space of 108 feddans (45.4 hectares) and it will include 2,200 various villas and apartments,” Sabbour said, adding that it had
begun marketing 50 percent of the units.
Its joint venture with a Saudi company, Dar Al Maaly for Development and Real Estate, is a 1 billion pound project stretching over 32.4 hectares known as Green
Square. Around 45 percent of this scheme is already built, and Sabbour has said that this rate is expected to increase to 70 percent by the end of the year. The site
contains 1,027 units – 75 percent of which have already been brought to market.
In total, Sabbour said that Al Ahly aims to pump around 3 billion Egyptian pounds into work on both its new projects and completing ongoing projects this year.
The company owns a land portfolio of 5 million square meters, and aims to increase this to 6 million square meters by the middle of next year, Sabbour said.
He said that the areas of keenest interest are the New Administrative Capital and Sheikh Zayed City, alongside New Al Alamain, Ain Sukhna and the Upper Egypt
governorates.
The company is also implementing its City of Odyssia project in partnership with El Mostakbal for Development – a site with an area 242.8 hectares, which has been
designed by US architects Gensler and is being project managed by Hill International.
City of Odyssia is a mixed-use residential complex set to contain Egypt’s largest multipurpose hall which will be used to showcase arts and cultural events, as well as a
50-acre central business district. The site will contain a mix of different house types set around parkland, starting from 130 square metre apartments through to
duplexes, townhouses and a number of villas. The total cost of the project, including the land, is around 25 billion pounds, according to Sabbour, but the initial central
district will cost around 3.5-4 billion pounds, he added.
The company also owns several residential tourism projects outside Cairo in the North Coast area. One of these is a 2.8 billion pounds project known as Amwaj being
built on a 147 hectare site, where 700 million pounds of property has been sold in three phases, with a fourth now underway.
Finally, the company is still developing plans for its Gaia beach resort on the northern coast with developer Dar Global. The 119.7 hectare site is being developed at a
cost of 5 billion pounds, and work is due to start on site by the first quarter of next year, Sabbour said.
Al Ahly Real Estate Development was established in 1994 by chairman Hussein Sabbour. The Sabbour family retains a 60 percent stake in the company, while National
Bank of Egypt owns the remaining 40 percent.
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Al-Ghurair Group of the UAE, along with a number of other UAE investors, has said that it will pump $100 million in a project by the Canal Sugar Company to establish Mar 17, 2019
an agricultural and industrial beet sugar project in western Minya, Upper Egypt, with a total investment of $1 billion.
According to feasibility studies, the shares of the non-Egyptian partners in the company will reach $210 million.
In a statement on Thursday, Investment and International Cooperation Minister Sahar Nasr asserted that her ministry is continuously following up all the current
investment projects and encouraging more foreign direct investments in the Egyptian market.
Nasr said that this project is an unprecedented step in the field of industrial agricultural investment as it will contribute to bridging the gap between sugar production and
consumption in Egypt.
She also said that 180,000 feddans will be used in western Minya to cultivate sugar beet, adding that the entire harvest will be used to operate the Minya-based sugar
factory, which will be the world's biggest in producing sugar from beet.
The project will contribute to covering 75 percent of the local market's supply with 1 million tonnes of sugar annually.
Improving gold prices on the world markets driven Sentamin Egypt to increase its production targets for 2019 in Egypt to reach 550,000 ounces up from 472,400 in Jan 10, 2019
2018 marking almost 16 % increase . That was announced by Mr. Shadi El Rajhy, Sentamin audit manager, revealing that gold reserves of the Sokkary mine are now
estimated at 15.5 million ounces, deemed one of the largest mines world wide. He further revealed that payments effected to the Egyptian treasury during 2018 totaled
97.4 million including payments on account profits & royalties.
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Egypt’s Prime Minister Moustafa Madbouly said that his country is looking forward to benefiting from Germany’s experience in waste recycling as Germany is one of the Jan 13, 2019
leading countries in the world in this field.
His statement came during a meeting on Friday with the Vice President of the Local Parliament of the State of Brandenburg Dieter Dombrowski, Managing Director of the
Brandenburg Economic Development Corporation (WFBB) Sebastian Saule, and the head of the RKD waste recycling company Florian Duhr.
Madbouly added that the Egyptian government attaches great importance to the establishment of an integrated system for the recycling of garbage and solid waste
treatment, in view of the economic and environmental benefits expected as a result of the establishment of this system, both in terms of the economic return of
recycling products or in the safe disposal of solid waste in a healthy and safe manner that doesn’t harm the environment.
Duhr presented elements of the study conducted by the company on the waste management system in Egypt, which includes the volume of solid waste produced
annually in Egypt, the current system of garbage collection, and mechanisms of separating household waste as an important point for the success of the system.
He stressed that the company is interested in entering the Egyptian market and cooperating with the Egyptian government in this field, especially as the success of the
system at the beginning requires government investment support.
Duhr suggested entering into a partnership with the Egyptian government through a joint venture.
Madbouly also held a meeting on Friday with representatives from several German companies working in waste recycling, within the presence of Egyptian Ambassador to
Berlin Badr Abdel-Ati.
The meeting included an explanation from the head of the BSR, which is responsible for collection and recycling of waste in the Berlin region.
The Prime Minister praised the model provided by the company as this model carries many similarities with what is needed in the major Egyptian cities, explaining that
the government will seek to adopt three or four different models to suit the requirements and conditions for different cities and governorates in Egypt.
Madbouly listened to a detailed presentation by officials from an alliance of 3 companies working in the fields of hazardous waste, waste recycling, waste dumps and
power generation from waste. The coalition officials expressed their enthusiasm for investment in Egypt’s garbage recycling field.
Madbouly also asked the embassy in Berlin to arrange a meeting between BSR representatives and the tripartite alliance with Egypt’s ministers of Military Production,
Environment, and Local Development during their next visit to Germany within the upcoming 10 days to discuss the technical details of the proposed cooperation
proposals, to discover which is the most suitable to apply in Egypt.
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Egypt’s JW Marriott Hotel launched its roof-top solar power station on Saturday, a statement by the United Nations Information Centre in Cairo said. Jan 20, 2019
The solar energy plant has a capacity of 150 KW and was established through technical and financial support from the UNDP-GEF Grid Connected Small Scale
Photovoltaic System Project, which is implemented by the Industrial Modernization Center.
The objective of the project is to support expansion of roof-top solar energy systems in residential, commercial and industrial buildings and develop the small-sale
renewable energy technology market in Egypt.
The launch was marked by a ceremony attended by Minister of Electricity and Renewable Energy Mohamed Shaker, Minister of Tourism Rania Al-Mashat, Minister of
Environment Yasmin Fouad, Executive Director of the Industrial Modernization Center Ahmed Taha, and UNDP Resident Representative Randa Aboul-Hosn.
According to the statement, Aboul-Hosn said the project supports the implementation of the country’s sustainable development strategy and capitalises on Egypt’s
abundant solar energy.
The solar station is the first solar energy station that the UNDP-GEF project has implemented at a hotel in Cairo.
It is hoped it will help encourage the hotel sector in Egypt to establish similar stations, according to the statement.
Property developer firm Beta Egypt for Urban Development plans to invest 1.5 billion Egyptian pounds ($85.3 million) in two projects in Eastern and Western Cairo within Feb 19, 2019
2019, announced its chairman Alaa Fikry on Monday.
” We target 1.2 billion pounds in sales from the two projects this year,” Fikry further said.
Beta Egypt is currently completing one of these flagships in Sixth of October City, while the other project is being implemented in Mostakbal City, New Cairo, he added.
Moverover, Beta Egypt launched the first phase of its flagship Beta Green in New Cairo over 48.7 feddans in El Mostakbal City during 2017, with investments exceeding
5 billion pounds.
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On Wednesday, during MWC Barcelona 2019, Microsoft Corp. and Telecom Egypt announced their collaboration to extend Microsoft’s cloud network to Egypt. Telecom Feb 28, 2019
Egypt will provide low-latency connectivity into and across Egypt to help enhance performance and increase reliability for customers of Microsoft services. The
collaboration will increase Microsoft’s reach to the large Egyptian market in addition to improving connectivity across North Africa and the Middle East.
Microsoft’s global network is one of the largest and most innovative in the world. It connects Microsoft’s cloud infrastructure of more than 100 datacenters, 135 edge
node locations, and more than 100,000 miles of fiber and undersea cable systems to deliver Microsoft services to customers. The new point of presence in Egypt will
benefit from a direct connection to Microsoft’s global infrastructure to enhance the delivery of numerous services for customers. Microsoft’s network investment will
increase capacity and use the latest in network optimization for the delivery of Microsoft services in Egypt.
Committing on the announcement, Dr. Amr Talaat, Minister of Communications and Information Technology of Egypt said, “Egypt is moving forward to become a global
digital path in the light of its unique characteristics, especially its geographical location overlooking the red and Mediterranean seas. The Ministry is committed to the
development of the telecom and information technology industry in Egypt, and appreciates partnerships that empower local institutions and drive business
development.”
Yousef Khalidi, corporate vice president, Azure Networking, Microsoft said, “Through our collaboration with Telecom Egypt, we are extending Microsoft’s global network
in Egypt and improving connectivity across North Africa and the Middle East. We are continuously investing to increase the size, speed, reliability and intelligence of
Microsoft’s global network to help enable the digital transformation of organizations and enterprises locally and abroad.”
Telecom Egypt’s global network was built over the years through investments in consortiums and private international submarine cable systems. Its reach and position
as an international hub with tens of terabits per second lit capacity makes it the partner of choice for content providers. Egypt’s distinctive geographic location on the
Red and Mediterranean seas has enabled Telecom Egypt to connect more than 11 cable systems from the east and 13 from the west linked with the Red-Med Corridor
consisting of 7 diversified highly reliable routes across Egypt.
“We are pleased to partner with Microsoft as it represents one of the first steps toward our strategic digital transformation plan,” said Adel Hamed, chief executive
officer, Telecom Egypt. “Telecom Egypt’s geographical position and its digital infrastructure will enable major cloud providers such as Microsoft to enhance their reach to
consumers and enterprises in Egypt as well as reach other markets”
Khaled Abdel Kader, general manager, Microsoft Egypt said: “Microsoft is committed to providing world-class cloud services to enable and accelerate the digital
transformation of organizations, businesses and people in Egypt. Our collaboration with Telecom Egypt and Microsoft’s investment in the country will further empower
Egypt to achieve more through Microsoft services.”
The new enhanced network presence in Egypt will connect via Microsoft’s global network to transatlantic and trans-Arabian paths, which will improve connectivity across
North Africa and the Middle East, including enhancing connectivity to the new Microsoft cloud regions in development in South Africa and the United Arab Emirates.
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Egypt’s Housing Minister Assem al-Gazzar said works started on installing the reinforced concrete for the foundations of administrative tower C02, or the ‘Iconic Tower’, Feb 24, 2019
in the New Administrative Capital’s Central Business District, set to be the tallest tower in Africa.
The concrete foundations of the skyscraper are currently at 50 meters high, Gazzar said in a press statement on Friday. Construction of the rest of the tower’s
foundation, over 340 meters tall, is expected to continue for around 3 days.
He added that construction companies operating in the New Administrative Capital will work day and night to complete this immense national project.
The Iconic Tower is the first tower to be started in the Central Business District, Gazzar said, explaining that the Central Business District includes 20 towers of various
uses with estimated investments of about $3 billion.
The Central Business District is being implemented in cooperation between the Ministry of Housing, represented by the New Urban Communities Authority and the China
State Construction Engineering Corporation (CSCEC), one of the largest construction companies in the world.
Egypt’s government is racing to complete construction of the New Administrative Capital in record time and wrap up ongoing projects. President Abdel Fattah al-Sisi
announced in July that 2020 would see the inauguration of the New Administrative Capital and other projects and cities.
The new capital will be located between Cairo and the Suez Canal region, boasting its own airport, and will include 490 square kilometres of available land for urban
development.
The housing ministry has said that the city is set to be a 270-square-mile hub, with 21 residential districts to accommodate up to five million people.
Egypt's Suez Canal revenues rose to $468.7 million year-on-year in January from $451.9 million in the same month last year, the Suez Canal Authority said on Monday. Mar 05, 2019
The canal is the fastest shipping route between Europe and Asia and one of the government's main sources of foreign currency.
Egypt’s M2 money supply was up 14.04 percent year-on-year in November, data from the central bank showed on Monday. Jan 03, 2019
M2 was up by 15.4 percent in October.
The money supply stood at 3.58 trillion Egyptian pounds ($200 billion) at end-November
Data of the International Tourist Organizations & the UN showing the growth of tourists numbers in Egypt increased from about 9 million in 2017 to exceed 10.5 million Jan 12, 2019
during the first 11 months of 2018 & to obviously hit the 1the fourth source of 1.5 million tourists by the year end. As such tourism ranks now ranks now as the 4th
source of foreign currency earner in the country after Egyptian expatriates transfers with $ 26.4 billion, non petroleum exports with $ 17.1 billion & followed by Suez
Canal tolls reaching lately $ 5.7 billion. According to recants statistics Egypt disposes on 1169 hotels comprising 196,923 rooms.
Sixth of October for Development and Investment (SODIC) plans to inject EGP 5.15 billion in investments this year, the company’s managing director said. Mar 28, 2019
SODIC aims to direct EGP 3.7 billion to construction projects, along with EGP 1.45 billion for paying installments of land plots and acquiring partnership shares, Maged
El-Sherif added on the sidelines of Cityscape Egypt conference on Wednesday.
The Egyptian real estate developer invested EGP 3.19 billion over the course of 2018, including EGP 2.4 billion for construction projects and EGP 791 million for paying
installments of land parcels and acquiring partnership shares, the managing director revealed.
Earlier in March, SODIC signed a partnership agreement with the New Urban Communities Authority (NUCA) to establish a full-fledged urban project over 500 acres in
Sheikh Zayed city.
For the full-year 2018, SODIC’s profits amounted to EGP 450.9 million, compared to EGP 598.6 million in 2017, including minority shareholders’ rights.
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US investments in Egypt totaled some $21.8 billion by the end of 2018, the investment minister said. Mar 26, 2019
Some American companies increased their businesses and expanded in Egypt, pumping an additional $1 billion during the fiscal year 2017-2018, Sahar Nasr said in a
statement Monday.
In a meeting with US Agency for International Development (USAID) administrator Mark Green, Nasr reviewed cooperation with the agency in Africa in light of Egypt's
presidency of the African Union in 2019.
This entails support for policies of development funding in order to achieve comprehensive growth in the continent, the minister noted.
Cooperation with the USAID could very well translate into joint regional projects that would contribute to upgrading the infrastructure of and boosting integration among
African countries, Nasr said.
Green was pleased with Egypt's socio-economic reform program, believing measures taken have improved the investment climate in the Arab country.
The USAID is seeking a strong economic partnership with Egypt in the coming stage, Green said.
The meeting took up efforts to support the drinking water and waste water sector and expand social protection programs in Egypt.
Egypt’s real-estate market is in a slump. People’s purchasing power has declined with a rise in the prices of properties on the back of costlier building materials and land, Mar 05, 2019
and this has led to a series of setbacks in the property market.
After the floatation of the pound in November 2016, the prices of building materials almost doubled, said Afifi Fahmi, a member of the Real Estate Investment Division at
the Federation of Egyptian Chambers of Commerce.
He cited the price of a ton of aluminium, which cost LE6,000 before the floatation and is now LE12,000. The overall cost of real-estate projects increased, causing a
slowdown in sales that is estimated at 80 per cent, he said.
People who were able to buy property when a ton of steel cost LE1,400 can often no longer afford it when steel costs LE12,000 per ton, Fahmi explained.
Few people can spend more than 40 per cent of their income on real estate, and with the price rises the purchasing power of customers has plummeted, he added.
People who could afford to buy a house for LE100,000 two years ago can often no longer do so after prices have doubled, said Mamdouh Badreddin, head of the Real
Estate Investment Division.
Besides the increasing prices and decreasing purchasing power, real-estate developers are also faced with the reluctance of the banks to finance projects.
“If the banks do not want to fund real-estate projects, how can investors complete them amid the hiking prices,” Badreddin asked.
However, he hoped that in two or three years, sales in the real-estate market would regain momentum as salaries and economic growth pick up.
GDP growth in Egypt in the second quarter of the current fiscal year recorded 5.3 per cent, with all sectors seeing positive growth.
The construction sector recorded growth of 8.9 per cent, becoming one of the five achieving the highest rates.
The weakening demand for property has led many real-estate investors to offer buyers attractive payment facilities, such as reduced down payments and longer
instalment plans.
Construction costs have increased by 80 per cent since the floatation of the pound, acknowledged Alaa Fekri, a member of the Real Estate Investment Division, adding
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to the investors’ burdens.
In one project, the price per square metre was LE3,400 in the first phase three years ago, but LE9,000 in the last phase last year, he said.
The market slowdown has been particularly acute in luxury property, while demand for smaller units still exists, albeit less than three years ago.
The slowdown began to be felt late last year, Fekri said.
He added that investors were being forced to offer better financial facilities to their clients because they sometimes either have to settle for less profit or shut down
altogether.
Fahmi said the Central Bank of Egypt (CBE) should increase the maximum amount that could be borrowed in mortgages for medium-size units, currently LE950,000.
With the rising cost of construction, the price of one square metre has sometimes reached LE10,000, meaning mortgages are limited to units measuring 100 square
metres, he said.
Fekri said that increases in the price of land had limited developers’ ability to buy land to initiate new real-estate projects.
The current high interest rates had also encouraged developers to deposit their money in the banks, opting to receive interest payments instead of risking money on
housing projects, he added.
A report by local investment bank Pharos Holding anticipated a slower real-estate market this year, despite the longer plans offered by many developers.
The report expected a five per cent increase in prices and a 10 per cent rise in construction costs.
A report by Jones Lang LaSalle Cairo, a US-based real-estate consultancy, said the sector had yielded positive results in 2018, but that resale values had been affected
because buyers preferred to invest in units under development to take advantage of easier payment facilities.
L.E. 540 million grant endorsed to Egypt from the EU to support Egypt's family planning program. That was announced by Dr.Sahar Nasr, Minister of Economy & Mar 05, 2019
International Cooperation, indicating the development targets to facilitate accessing family planning means on the market particularly for male & female youth in fertility
age.
AlexBank, a member of Italian bank Intesa Sanpaolo, achieved a net profit of 3.025 billion Egyptian pounds by the end of 2018, compared to 2.7 billion pounds by the Mar 07, 2019
end of 2017, with an increase of 243 million pounds.
The Bank achieved a total profit of 3.9 billion pounds, of which 955 million pounds was income tax expenses at the end of the year.
Moreover, loans increased to 38.2 billion pounds by the end of the previous year, compared to 32.1 billion pounds at the end of 2017, as a result of the bank’s
expansion in SME and individual loans.
The bank’s customer deposits amounted to 78.7 billion pounds by the end of 2018, compared to 63.5 billion pounds at the end of 2017, with an increase of 15.2 billion
pounds.
The cabinet, at its weekly session under Prime Minister Moustafa Madbouli, gave the green light to a draft law presented by Minister of Investment Sahar Nasr amending Mar 07, 2019
the investment law No. 72 for the year 2017.
The amendments are aimed at encouraging businessmen to pump more investments on the Egyptian market.
The new amendments provide more incentives to investors and ease up measures to start a business in Egypt.
She added that also the amendments are seeking to encourage investors doing business in Egypt to expand their activities on the Egyptian market.
Nasr said that her ministry will keep introducing legislative amendments for encouraging investments in the country and coping up with the international economic
legislation.
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