Home > Insights > Egypt stagnant exchange rate is likely to see more movement after a system that guaranteed foreign investors the possibility of a dollar rebound.
Monday, 28 Jan 2019

Egypt stagnant exchange rate is likely to see more movement after a system that guaranteed foreign investors the possibility of a dollar rebound.


Insights Africa

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Economic Outlook

Economic Outlook

  • Egypt stagnant exchange rate is likely to see more movement after a system that guaranteed foreign investors the possibility of a dollar rebound, but the Central Bank is ready to face the speculators and ensure that debt holders won't lose.
  • Egypt non-petroleum exports increased in 2018 by 10% reaching 24.82 BN USD (444.68 BN EGP) compared to 22.62 BN USD (405.27 BN EGP) in 2017.
  • Egypt opened a new international airport "Sphinx International Airport" worth 17 MM USD (304.5 MM EGP) located near the Giza Pyramids and the new Grand Egyptian Museum, for an initial trial period expecting to operate 30 flights by early February 2019.
  • The Dubai Land Department (DLD) has signed three Memorandums of Understanding, during its participation as a strategic partner of the Egypt Mega Property Show, held recently in Cairo to encourage the real estate investment. UAE is the 2nd largest Arab investor in Egypt with 5.9 BN USD (105.68 BN EGP) in investments over the past four years.
  • Hawkamah Institute for Corporate Governance and the International Monetary Fund (IMF) are convening a high-level Central Bank Governance Forum in Dubai on January 28-30, 2019. The forum will focus on internal audit functions, financial risk management and data innovations.
  • Under the patronage of the Saudi Arabian Monetary Authority (SAMA), the General Committee of Insurance Companies is organizing the 5th Saudi Insurance Symposium (SIC) to promote the insurance sector economic role in economic development.
  • The Ministry of Labor and Social Development, the Housing Ministry, the Human Resources Development Fund (HRDF), the Council of Saudi Chambers (CSC) and the Saudi Contractors Authority (SCA) have signed a memorandum of cooperation (MoC) to localize 80,000 jobs for men and women in the real estate and contracting sectors starting in 2019 until the end of 2020.
  • Qatar Biobank, a member of Qatar Foundation, is set to bring together local and international experts on biobanking and personalized medicine for Qatar International Biobanking Conference 2019, which will take place from March 25-27 at the Sheraton Grand Doha Resort & Convention Hotel.
Political Events

Political Events

  • Saudi Arabia will support Lebanon "all the way" to protect its stability after Qatar announcement that it would buy 500 MM USD (1.82 BN QAR) U.S. dollar bonds issued by Beirut to support the Lebanese economy.
  • UAE Federal Tax Authority (FTA), has defined the conditions for tax de-registration, which state that companies must apply for de-registration if they stop operating or anticipate drop in the value of their taxable sales below 51,045 USD (190,533 SAR).
Stock Market

Stock Market

  • .TASI banking sector increased led by Alinma Bank.
  • .QSI real estate sector increased led by Mazaya Qatar and Barwa. On the other hand, banking sector declined led by Qatar Islamic Bank.
  • .ADI banking sector declined led by Union National Bank (UNB) and real estate sector led by Eshraq Properties.
  • .DFMGI real estate sector increased led by Arabtec Holding.
Companies Transactions

Companies Transactions

  • Egypt Madinet Nasr for Housing and Development (MNHD) and Sixth of October Development and Investment Company (SODIC) announced that they have been unable to finalize talks on a proposed share swap offer that would have seen SODIC take a majority stake (51%) in MNHD, citing disagreement on the swap factor.
  • In Egypt, Elsewedy Electric Co. has announced that it was considering several infrastructure projects in the New Administrative Capital with total investments of 111.65 MM USD (2 BN EGP).
  • In UAE, The Arab Trade Financing Program (ATFP), a specialized multi Arab financial institution with a mission to promote Arab trade and Citi, the leading global financial services company, announced yesterday 27 January 2019 the signing of an agreement for cooperation on risk participation.
  • In UAE, Pantheon Development launched its second project named "Pantheon Elysée" worth 200 MM AED (54.4 MM USD) with a modern sophisticated design, located in District thirteen of Jumeirah Village Circle (JVC).
  • Saudi Basic Industries Corp (SABIC) posted a 12.4% drop in profit in Q4-2018 compared to Q4-2017. The company attributed the fall to lower average selling prices and a decrease in the share of results of associates.
  • Zain Saudi Arabia announced historical record-high financial results for all key indicators for 2018 and Q4-2018 with the operator serving 8.2 million customers.
  • Qatar National Bank (QNB), the largest bank by assets in the Middle East and Africa, has issued a 500 MM renminbi (73.45 MM USD) bond with a 4.35% yield.
Sports and Culture

Sports and Culture

  • Egypt was ranked 8th in 2019 World Men's Handball Championship following loss to Spain 36-31 in Denmark. Overall, the pharaohs won three, drew twice and lost four games at this championship.
  • Egypt squash players Ali Farag and Nour El Sherbini won the 2019 J.P. Morgan Tournament of Champions in an all-Egyptian final that included World No.1s Mohamed Elshorbagy and Raneem El Welily.

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