Home > Insights > Egypt government has increased the gasoline and diesel prices in the second fuel hike since the currency floatation.
Monday, 03 Jul 2017

Egypt government has increased the gasoline and diesel prices in the second fuel hike since the currency floatation.


Insights MENA

$ti2
Economic Outlook

Economic Outlook

  • Egypt government has increased the gasoline and diesel prices in the second fuel hike since the currency floatation and the latest cut in state subsidies to ease the budget deficit. The increase is part of Egypt 12 BN USD International Monetary Fund (IMF) loan agreement. The price of 92-octane gasoline has increased to 5 EGP from 3.5 EGP per liter and 80-octane has increased to 3.65 EGP from 2.35 EGP per liter.
  • Telecom Egypt will secure 13 BN EGP (720.22 MM USD) loan to improve infrastructure and mobile internet services. It is worthy to mention that Telecom Egypt was the first company to buy a 4G license from the government in August 2016 for 7.08 BN EGP.
  • Egypt will receive the second disbursal of the 12 BN USD IMF loan within two to three weeks. The 1.25 BN USD disbursal, which will complete the first 4 BN USD loan tranche, was initially expected to be received towards the end of June.
  • Egypt 2017/2018 budget will include a 75 BN EGP (4.17 BN USD) social package. The government aims to maintain a previously announced budget deficit target of 9.1% despite the introduction of the social package.
  • The volume of trade exchange between Jordan and the UAE has reached 6.7 BN AED (1.8 BN USD) in 2016. UAE non-oil exports to Jordan has reached 500 MM USD.
  • Jordan GDP grew by 2.2% in Q1-2017, compared to the same period last year. The extraction industries sector achieved the highest growth rate of 14.7%, followed by the agricultural sector with 8.2%.
  • The number of construction licenses in Jordan issued in the first four months of 2017 was 15.8% higher than that of the same period last year. A total of 13,118 licenses were issued between January-April 2017 up from 11,325 in the same period last year.
  • Jordan revenues from tourism increased by 15.4% reaching 1.8 BN USD for the January-May period of 2017. The increase was due to an increase in tourists numbers by 10.5% compared to the same period in 2016. The total number of visitors increased by 3.5%, reaching 420,600 visitors compared to 406,400 tourists in May 2016.
  • Thirteen new hotels started operating in the Sultanate of Oman during the first five months of 2017, and the number is expected to increase to 81 hotels during 2017/2018.
  • In the 18 months from November 2015 to April 2017, average rental prices have dropped by 21% in Dubai, while property sales prices declined by 20%. Around 28,000 new units are expected to be completed this year.
  • Majid Al Futtaim, the Middle East operator of French retailer Carrefour, has acquired 26 Geant hypermarket franchise stores in the UAE through BMA International. The number of Majid Al Futtaim Carrefour-operated outlets will increase to 80 stores in the UAE, 11 in Bahrain and 8 in Kuwait following the acquisition.
  • UAE Islamic assets have reached 522 BN AED (142 BN USD) in Q1-2017, this will help fuel the growth of the country's Islamic sector. Seven Islamic banks out of the 23 registered commercial banks in the UAE represent nearly a fifth of the country's banking assets.
  • Lebanon industrial exports declined by 6% in Q1-2017 reaching 596.6 MM USD compared to 633.9 MM USD in Q1-2016.
Political Events

Political Events

  • A Saudi-led coalition that has cut air, sea and land links with Qatar over accusations the country is supporting terrorism agreed to a two-day extension of its deadline as of Monday for Qatar to meet its 13 demands. This decision was made upon the request of the Emir of Kuwait. The demands included the shutting of Al-Jazeera broadcast and cutting ties with Iran.
  • The Egyptian criminal court has sentenced First Lieutenant Yaseen Hatem to 10 years in prison for killing Shaimaa Sabbagh during a march marking the fourth anniversary of a 2011 uprising.
  • Bahrain foreign minister accused Qatar of creating a military escalation in a dispute with regional powers, in an apparent reference to Doha's decision to let more Turkish troops enter its territory.
  • Saudi Arabia denied that Prince Mohammed bin Nayef has been confined to his palace and barred from travelling abroad after he was replaced by the king's son Mohammad Bin Salman Al Saud as next in line to the throne.
  • Gulf Arab states are considering fresh sanctions on Qatar and could ask their trading partners to choose between working with them or Doha.
Stock Market

Stock Market

  • .TASI banking sector has significantly increased led by Banque Saudi Fransi and Saudi British Bank (SABB).
  • .KWSE banking sector has slightly increased led by National Bank of Kuwait (NBK) and Commercial Bank of Kuwait (CBK).
  • .QSI banking sector has declined led by Qatar National Bank (QNB) and Qatar Islamic Bank (QIB). In addition, Industrials sector went down led by Industries Qatar.

Note:  Weekly values are calculated on Thursday of each week.

Companies Transactions

Companies Transactions

  • Qatar Airways  will acquire a stake of up to  4.75% in  American Airlines ; hoping to build a passive shareholding in the U.S. airline.
  • Egypt telecoms operators have received the wireless frequencies needed to deliver 4G mobile broadband networks. The companies will redistribute the frequencies in preparation for offering the service commercially in the market within two months.
  • Egypt state-run Heliopolis Company for Housing and Development will deliver two power plants and a water treatment station at New Heliopolis project in New Cairo within Q1-2018. The total cost of the two plants and the station amounts to  580 MM EGP (31.9 MM USD).
  • Commercial International Bank (CIB), will seek approval to issue bonus shares to increase its capital by  25% reaching  14.522 BN EGP (809 MM USD) compared to 11.618 BN EGP (605 MM USD) through the distribution of a bonus share for every four original shares. CIB invited its shareholders to hold a general meeting on 18 th of July.
  • General Electric (GE Power) signed a multi-year agreement (MYA) with  Samra Electric Power Company (SEPCO) in Jordan. GE will provide SEPCO with full plant maintenance services, including parts and repairs for critical power generation equipment for the 1,175 megawatts (MW).
  • First Abu Dhabi Bank (FAB) has been recognized as the  'Best Trade Finance Bank in MENA' at the GTR Leaders in Trade 2016 Awards in recognition of its excellence in the trade, commodity, supply chain and export finance markets.
  • Dubai Electricity and Water Authority (DEWA)  has awarded a contract to supply, extend and commission 40 km of water pipelines, with a total cost of 248 MM AED (67 MM USD).
Sports and Culture

Sports and Culture

  • Phone users in the Sultanate have been warned over threats from a new ransomware variant, WannaLocker, which is attacking android phones in Oman.
  • Nearly 68.5% of sales staff in Saudi markets, companies and shops were foreigners in 2016. Foreigners comprised 521,609 sales employees, compared to 239,952 Saudis.
  • According to the Ministry of Haj and Umrah, about 6.75 million visas were issued for Muslims to perform the minor pilgrimage this year. This is an increase of nearly 6% compared to last year. According to Vision 2030 the number of pilgrims and visitors are expected to increase more.
  • Youths in the UAE performed 5,000 hours of volunteer work, locally and internationally, during the holy month of Ramadan, operating under the theme, "Our Solidarity is Our Responsibility", in its 14th edition. The volunteering program was undertaken, following an initiative by the Zayed Giving Initiative, Dar Al Ber Society, Sharjah Charity House, Saudi German Hospitals Group, and Emirates Volunteering Centre, in cooperation with government and private institutions.

Dubai

Office No. N307, North Tower,
Emirates Financial Towers, DIFC, Dubai, UAE
P.O Box: 506726
Tel: +9714 351 8187
info@multiplesgroup.com

Cairo

Zepter Office Building,
S5-6, Area 5, District 1, New Cairo, Egypt.
P.O Box: 11477
info@multiplesgroup.com

Nairobi

Kenya Block C, Ground Floor, Fortis Office Park Muthangari
Dr Westlands, Nairobi, Kenya
Tel: +254 20 5148174
P.O. Box: 66488-00800

BETA