Home > Insights > Local farmers sell 4.88 million tons of wheat to the Egyptian government for a fixed price of 420 EGP per ardeb (150 kg). On the other hand, the Egyptian government has bought 5.3 million tons of wheat in 2015 compared to 3.7 million tons in 2014.
Monday, 20 Jun 2016

Local farmers sell 4.88 million tons of wheat to the Egyptian government for a fixed price of 420 EGP per ardeb (150 kg). On the other hand, the Egyptian government has bought 5.3 million tons of wheat in 2015 compared to 3.7 million tons in 2014.

Insights MENA

Economic Outlook

Economic Outlook

  • Local farmers sell 4.88 million tons of wheat to the Egyptian government for a fixed price of 420 EGP per ardeb (150 kg). On the other hand, the Egyptian government has bought 5.3 million tons of wheat in 2015 compared to 3.7 million tons in 2014.
  • Abu Dhabi will impose taxes of 9.35 USD on airline passengers and hotel guests starting from June. The tax revenue is targeted to cover the loss that resulted from low oil prices.
  • Food and beverage prices dropped by 0.5% in Dubai while the cost of housing and utility increased by 3.3%.
  • UAE issues value added taxes (VAT) based on revenue ranges of the companies. The companies that record higher than 3.75 MM AED will be obligated to the VAT, while it is optional for companies with revenues between 1.87 and 3.75 MM AED.
  • The Sultanate of Oman; the fast and attractive tourist destination in MICE (meeting, incentives, conferencing and exhibitions) is expected to witness an increase of 15-20% in the number of Indian tourists this year.  Moreover, number of Indian tourists in 2015 has reached 2.9 million with an increase of 17% compared to 2014.
  • Telecom sector in Qatar recorded revenues of 10 BN QAR in excess in 2015 compared to 9.45 BN QAR. The largest portion of the revenue was covered by the mobile market.
  • Profits of the banking sector in Qatar rose by 1.7% in Q1-2016. On the other hand, profits dropped by 10.1% in Kuwait and 7.7% in UAE.
  • Lebanon's failure to apply economic and fiscal reforms since the murder of former Prime Minister Rafik Hariri, is keeping it at a financial deficit and with a negative outlook.
  • Saudi Arabia allows for larger foreign investment by opening an international retail sector that allows for 100% ownership. The decision was taken in line with the vision of 2030 plan.
  • Saudi Arabia's aid to developing countries has exceeded UN's rate of development target of 0.7% of GDP of fund-providing countries.
  • Egyptian chemical exports have declined by 10% in Q1-2016 amounting to a value of 226.9 MM EGP compared to 252.9 MM EGP.
  • In Egypt, the rice prices have surged from 4.5 EGP to 8 EGP and 10 EGP for higher quality per kilogram during Ramadan season and the market faces a shortage.
  • The sales in the gold market has increased by 60% due to Ramadan and summer vacation, and is expected to rise even more till after Haj period and the marriages that follow.
  • Cairo neighborhoods are about to witness a great development and utilization of main roads and squares in different areas within Egypt's capital city. The government is going to invest 100 MM EGP to implement the development plans.
  • Consumer price index fell by 1.2% in Jordan at the end of the first five months of 2016, due to slowdown in prices of transportation, fuel and lighting.
  • Kuwait International Airport faces a 7% increase in the number of passengers as the number of passengers in May 2015 has exceeded 1 million passengers compared to 937,070 million passengers in May 2014.
Political Events

Political Events

  • Search teams in Egypt has found the cockpit voice recorder from EgyptAir flight MS804 crashed plane. The team successfully managed to regain the memory unit of the recorder.
  • Bombing actions take place outside the headquarters of Blom Bank in Beirut after the bank froze Hezbolla's related accounts to cope with US sanctions against Hezbollah. The terrorist act is considered a threat for the whole banking sector and the national security whereas both bankers and government officials demand repercussions.
  • Morocco accuses an Italian citizen who was planning to carry out attacks in the kingdom.
Stock Market

Stock Market

  • .EGX30 banking sector declined led by Commercial International Bank (CIB) and EFG Hermes.
  • .TASI banking sector declined led by Al Rajhi Bank.
  • .KWSE real estate sector declined led by Al Dar National Real Estate and banking sector led by Ithmaar Bank.
  • .QSI telecommunication sector increased slightly led by Ooredoo. On the other hand, banking sector declined led by Qatar National Bank (QNB) and Qatar Islamic Bank.
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Companies Transactions

Companies Transactions

  • Emirates National Oil Company (ENOC) acquired a 230 MM USD loan from the Industrial and Commercial Bank of China to be used in financing economic development projects.
  • A new center of excellence for oil and gas industry is established in Dubai by Microsoft. The center provides companies with assistance on how to drive digital transformation, cut costs and optimize their operations in the region.
  • Mubadala Development Company; Abu Dhabi state-owned investment fund, hires Ahmed Saeed al-Calily as the new chief executive of the group's energy platform. Calily worked as the director-general of the Abu Dhabi Technology Development and before that he was the chief executive of Abu Dhabi Ports company.
  • Gulf Shadows Computers is the new distributor for Fujitsu in UAE. Fujitsu aims to use Gulf Shadows excellent retailing and channeling capabilities and its provision of various products to push its presence in UAE.
  • International Petroleum Investment Co (IPIC) submitted a case with Malaysian state fund 1MDB (1Malaysia Development Berhad) to London court. IPIC claims 6.5 BN USD from the Malaysian company due to its failure to fulfill their part of the debt restructuring agreement.
  • Etisalat Groups in Abu Dhabi sells 92.3% of its shareholding in one of the Sudanese fixed line operators for 95.2 MM USD to Bank of Khartoum which already owns 3.7% of the operator.
  • Nozul Hotels & Resorts bought St. Regis Florence and The Westin Excelsior Florence for 213 MM USD from Starwood Hotels & Resorts Worldwide.
  • QNB has completed the acquisition of 99.81% of Finansbank's stake in Turkey. The transaction was a part of QNB Group strategy to expand internationally and to boost the economic relationship between Turkey and the Middle East.
  • Misr Insurance company has won Elsewedy Electric's insurance policy bid worth 340 MM EGP. The policy covers all medical risks, bills, outpatient clinics, medications, dental treatments, and chronic diseases. Duration of the policy is one year that can be extended.
  • Mokhtar Ibrahim; an Egyptian construction company, is set to compete for infrastructure projects with cost 2 BN USD in Kuwait. The projects will include building roads, bridges and industrial institutions.
  • Americana's Kuwait Food Co is planning to sell a majority stake to a group of Gulf investors.


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