Home > Insights > The Monetary Policy Committee (MPC) has announced the raise in discount rate by 2% reaching 17.25%.
Monday, 22 May 2017

The Monetary Policy Committee (MPC) has announced the raise in discount rate by 2% reaching 17.25%.


Insights MENA

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Economic Outlook

Economic Outlook

  • The Monetary Policy Committee (MPC) has announced the raise in discount rate by 2% reaching 17.25%. In addition, increasing overnight deposit rateovernight lending rate and the rate of the Central Bank of Egypt (CBE) main operation by 2% reaching 16.75%, 17.75% and 17.25% respectively.
  • Egypt has acquired two million tons of wheat from local farmers since its harvest began in mid-April. Egypt consumes 9.5 million tons of wheat to produce its subsidized bread; 4 million tons of which are sourced from local farmers and the remaining are imported
  • Egypt will make a debt payment of 750 MM USD to international oil companies on 1st of June 2017. It is worthy to mention that Egypt's debts to international oil and gas companies have reached 3.5 BN USD.
  • Egypt unemployment rate declined to 12% in Q1-2017 compared to 12.4% in Q4-2016, with the labor force growing by 71,000 people. The country has been struggling to restore economic growth since political uprising in 2011.
  • Dubai trade with Qatar grew by 92% from 2011 to 2016, reaching 15 BN AED last year.
  • Qatar investments in Turkey have reached 20 BN USD. An increasing number of Qatari companies are investing in Turkey, making Qatar the second leading investor in terms of value in Turkey.
  • Saudi Arabia Health and Safety Association has announced that the work injuries in the private and public sectors have amounted to over 67,000 in 2016, costing over 370 MM SAR (100 MM USD) in medical treatment.
  • UAE has provided the Yemeni healthcare sector, from 2015 to 2017 with financial support of 502 MM AED (137 MM USD) to support its medical and health services in emergency cases, as well as to train healthcare sector employees.
  • The Emirates Nuclear Energy Corporation (ENEC) has signed a Memorandum of Understanding (MoU) with the Abu Dhabi Sports Council under the Partners in Excellence initiative, to improve the quality of services at social and sports levels.
  • Tunisia economy grew by 2.1% in Q1-2017 compared to zero growth in the same quarter last year. The growth was driven by a recovery in the phosphate production and tourism, which had been hit by Islamist militant attacks in 2015.
Political Events

Political Events

  • U.S. President Donald Trump has signed a joint "Strategic Vision" with Saudi Arabia worth 110 BN USD American arms sales and other new investments.
  • Egypt's President Abdel-Fattah El-Sisi and King Abdullah II of Jordan have stressed the importance of fostering international efforts to fight terrorism in the region during a meeting in Cairo last Wednesday. Discussions aimed at addressing the bilateral relations as well as regional issues, including the Palestinian-Israeli peace process.
  • A car bomb exploded in Syria's Rukban refugee camp near the border with Jordan causing injuries.
  • Three workers died and several were injured at a building site in Qatar, which has come under pressure to improve conditions for labor working on venues for the 2022 World Cup.
Stock Market

Stock Market

  • .TASI banking sector has slightly increased led by Alinma Bank and telecommunication sector led by Zain.
  • .KWSE banking sector has slightly increased led by Boubyan Bank and Ahli United Bank.
  • .QSI banking sector has declined led by Doha Bank.

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

Companies Transactions

Companies Transactions

  • Egypt's largest listed bank, Commercial International Bank (CIB), has agreed to sell 10% of its investment banking arm CI Capital to a local investor.  CI Capital also plans to launch a company in the fourth quarter of this year that will focus on funding microfinance projects.
  • Egypt's property developer Misr Italia Group has signed a contract to buy a land plot on a space of 200 feddans in the country's new capital city for 2.06 BN EGP (113.8 MM USD).
  • Gulf Bridge International (GBI), a global cloud, connectivity and content enabler, has finalized a loan to support its expansion. The refinancing deal is worth 1 BN QAR (285 MM USD) signed between GBI and a major financial house in Qatar and the Arabian Gulf.
  • Qatar Petroleum (QP) will sell Al-Shaheen crude through a joint venture with Total as of July 2017. The joint venture, North Oil Company (NOC), will sell four cargoes of al-Shaheen in a tender. QP represents 70% of NOC while Total represents the remaining 30%.
  • Al Jazirah Vehicles Agencies has successfully opened the world's largest Ford's dealer showroom in Riyadh branch of Al Jazirah Vehicles, located on Khurais Road.
  • Asian frozen food giant Al Kabeer has opened its largest production facility in the region at King Abdullah Economic City in Rabigh, 120 km from Jeddah. The facility operates through state-of-art technology and focuses on reducing waste and energy consumption.
  • Mobily continues providing the best offers in its Haj and Umrah package for Pilgrims. The company enables subscribers to get additional free balance up to 300% when recharging with 10 SAR or more.
  • Nestle has opened a new 145 MM USD culinary and coffee factory in Dubai as part of its regional expansion plans Al-Maha factory, located in Dubai's Jebel Ali free zone area, will locally manufacture Nestle's famous Maggi culinary products and Nescafe coffee mixes, creating 340 new jobs.
Sports and Culture

Sports and Culture

  • Careem, the region's leading app-based car booking service, has recently expanded its network in the Delta region to cover a total of seven cities which are: Mahalla, Banha, Damnhour, Mansoura, Tanta, Kafr El Dawar (Behira) and Zagazig. Careem now offers its services across 10 Egyptian cities with a current fleet operated by 50,000 Captains nationwide.
  • Saudi Minister of Municipal and Rural Affairs Abdullatief Al-Asheikh is planning to establish 10 smart cities in the Kingdom as part of realizing the goals of the National Transformation Program of 2020.
  • Emaar Turkey, the country-subsidiary of Emaar Properties, has opened Emaar Square Mall in Turkey. The mall has several outlets of renowned brands from Turkey along with other global names, and is projected to welcome around 25 million visitors annually.

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