Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23

Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23
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Updated 21 October 2021

Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23

Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23
  • Tourism has been gradually recovering from COVID travel restrictions put in place in March 2020

Egypt's economy will grow 5.1 percent in the fiscal year that ends in June 2022, but accelerate to 5.5 percent in each of the following two years as tourism continues to rebound and the effects of the coronavirus pandemic wane, a Reuters poll showed.

The central bank said last month economic growth surged to 7.7 percent in the final quarter of the last fiscal year, indicating growth of 3.3 percent for the entirety of 2020/21, up from a previous full fiscal-year estimate of 2.8 percent.

Economists in a July poll predicted economic growth would be 5.0 percent for the year to next June.

"We expect consumption growth to pick up from a low base post-COVID and public investment to remain strong this year," Allen Sandeep of Naeem Brokerage said.

"What will be critical to see is if this growth is sustained in 2022/23, by when the pandemic effects should hopefully subside substantially."

Tourism has been gradually recovering from COVID travel restrictions put in place in March 2020.

Tourism revenue plummeted to $4.9 billion in 2020/21 from $9.9 billion a year earlier. But in the April to June quarter it bounced back to $1.75 billion from a low of $305 million in the same quarter of 2020, according to central bank data.

In the latest Reuters poll, economists expected annual urban consumer price inflation to climb to 6.0 percent in 2021/22, then picking up even further to 6.4 percent in 2022/23 and 7.0 percent in 2023/24, still within the central bank's target range of 5 percent to 9 percent.

Egypt's annual inflation rose to 6.6 percent year-on-year in September, its highest in 20 months, from 5.7 percent in August, mainly due to rising food prices, the state statistics agency CAPMAS said this month. read more 

The currency will weaken to 15.81 Egyptian pounds per dollar by the end of 2021, to 16.25 by the end of 2022 and to 17.24 by the end of 2023, the Oct. 8-20 poll of 22 economists showed.

The central bank is expected to leave its overnight lending rate unchanged at 9.25 percent throughout 2021/22 and 2022/23, then increase it to 10.25 percent by the end of June 2024, the poll found.

"We believe Egypt's sizeable CA (current account) deficit explains the central bank's reluctance to cut interest rates," causing a strong increase in imports and income outflows, RenCap's Yvonne Mhango wrote in a note.


Saudi Arabia registers the new Bahri-owned oil tanker Rayah

Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
Updated 19 sec ago

Saudi Arabia registers the new Bahri-owned oil tanker Rayah

Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
  • The Rayah raises the total number of oil tankers owned by Bahri to 57
  • The tanker is made by Hyundai with a tonnage of 110,706 metric tons

RIYADH: Saudi Arabia’s transport authority raised the Kingdom’s flag on a new marine tanker in Dammam in the Eastern Province.
The Rayah tanker, which has been registered under the Saudi flag, is one of the national carriers owned and operated by Bahri, the Saudi National Shipping Company.
It raises the total number of national ships carrying the Saudi flag to 408 ships to date, with a tonnage exceeding 100 tons, increasing the carrying capacity of the Saudi merchant marine fleet.
The Kingdom’s fleet is experiencing rapid growth, and the addition of the new tanker is an important step in supporting business growth through developing marine capabilities and expanding shipping lanes in energy supplies to global markets.

The Rayah, made by Hyundai with a tonnage of 110,706 metric tons, raises the total number of oil tankers owned by Bahri to 57, and was registered by the regulatory and legislative authority for the Kingdom’s maritime transport sector.
Saudi Arabia’s marine fleet was ranked first regionally and 21st globally in terms of tonnage, according to the annual report of the UN Conference on Trade and Development last year.
“The Public Transport Authority will continue its endeavors and exert more efforts to enhance the logistics sector and national transport, especially maritime, and contribute to consolidating the Kingdom’s leading position on the map of shipping and global marine supply chains,” the body said in a statement.


OPEC+ delays technical meetings to review market conditions

OPEC+ delays technical meetings to review market conditions
Updated 28 November 2021

OPEC+ delays technical meetings to review market conditions

OPEC+ delays technical meetings to review market conditions

RIYADH: The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, is moving two technical meetings to later this week after oil’s rout last Friday, Bloomberg reported on Sunday.

The move seeks to allow its committees more time to evaluate the impact of a new strain of the coronavirus.

A joint technical committee meeting will now be held on Wednesday, instead of the planned date Monday, according to delegates from some member countries. 

The joint ministerial monitoring committee, which comprises representatives of the broader group, will meet on Thursday instead of on Tuesday.

The OPEC and broader OPEC+ meetings will go ahead as planned on Wednesday and Thursday with ministers set to decide on whether to go ahead with planned output increases.

The delay will allow time for the group to analyze the market after a more than 10 percent drop in prices on Friday after the emergence of new coronavirus variant spooked traders. 

OPEC will also weigh the potential impact of a planned release of strategic petroleum reserves by the US and other oil consuming nations.


Saudi M3 money supply grows in October: SAMA

Saudi M3 money supply grows in October: SAMA
Updated 28 November 2021

Saudi M3 money supply grows in October: SAMA

Saudi M3 money supply grows in October: SAMA

RIYADH: The M3 monetary aggregate, known as “broad money,” posted an annual growth rate of 7.9 percent in October, having decelerated slightly from the September value of 8.4 percent, according to data published by the Saudi Central Bank.

On a monthly basis, the M3 indicator grew by SR10.6 billion ($2.8 billion) in October, or 0.5 percent from the previous month.

The monthly increase in M3 money supply was driven mainly by the SR15.1 billion increase in time and saving deposits, which grew 3.3 percent month-on-month, the fastest rate of growth since October 2020. Demand deposits fell by SR4.5 billion, or 0.2 percent, to SR1.324 trillion as of Oct. 31. 


Sajwani buys 15.6% of DAMAC shares through Dubai Financial Market

Sajwani buys 15.6% of DAMAC shares through Dubai Financial Market
Updated 28 November 2021

Sajwani buys 15.6% of DAMAC shares through Dubai Financial Market

Sajwani buys 15.6% of DAMAC shares through Dubai Financial Market

RIYADH: Maple Invest, owned by businessman Hussein Sajwani has bought a 15.6 percent stake in Damac Properties through the Dubai Financial Market.

It is part of a plan by which the Emirati businessman aims to acquire up to 100 percent shares of the company he established in 2002 and de-listing it  from the Dubai market, Asharq reported on Sunday.

According to Damac Properties’ disclosure to the Dubai market on Sunday, Maple executed approximately 944 million shares, representing 15.6 percent of the property firm's issued capital, at a price of 1.4 dirhams per share.

Maple made a conditional offer to buy the rest of the shares of the firm — which is not owned by Maple or its subsidiaries — on June 9. The offer included a price of 1.3 dirhams per share. Damac shareholders rejected the offer and called on its board of directors to appoint advisers to assess the fairness of the offer's value.

In late October, Maple announced that it intends to purchase 800 million shares of Damac Properties through the Dubai Financial Market, provided that the purchase process is outside the offer made by Maple to acquire all of Damac’s shares.

The data issued today is the implementation of a quantity higher than the target, bringing Sajwani’s direct and indirect share in the company to approximately 88 percent.


Crypto exchange Coinstore enters India despite restrictions on trade: Crypto wrap

Crypto exchange Coinstore enters India despite restrictions on trade: Crypto wrap
Updated 28 November 2021

Crypto exchange Coinstore enters India despite restrictions on trade: Crypto wrap

Crypto exchange Coinstore enters India despite restrictions on trade: Crypto wrap

RIYADH: Singapore-based virtual currency exchange Coinstore has begun operations in India at a time when the Indian government is preparing legislation to effectively bar most private cryptocurrencies.

Coinstore is the second global exchange to enter India in recent months, following in the footsteps of CrossTower which launched its local unit in September.

Coinstore has launched its web and app platform and plans branches in Bangalore, New Delhi and Mumbai which will act as its base in India for future expansion, its management said.

"With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market," Charles Tan, head of marketing at Coinstore told Reuters.

Asked why Coinstore was launching India despite the pending clampdown on cryptocurrencies, Tan said: "There have been policy flip-flops but we hope things are going to be positive and we are optimistic that the Indian government will come out with a healthy framework for cryptocurrencies."

Tan said Coinstore plans to recruit about 100 employees in India and spend $20 million for marketing, hiring and development of crypto-related products and services for the Indian market.

The price of the world's biggest cryptocurrency, Bitcoin, has more than doubled since the start of this year, attracting hordes of Indian investors.

Industry estimates suggest there are 15 million to 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees ($5.33 billion).

Coinstore also plans to expand into Japan, Korea, Indonesia and Vietnam, according to Tan.

Crypto payments

Newegg, one of the major technology-focused e-commerce platforms, has announced that SHIB is coming soon to its platform.

Newegg currently accepts cryptocurrency via Bitpay and the crypto payment service provider is expected to add shiba inu to its list of supported cryptocurrencies, which includes the rival meme cryptocurrency dogecoin.

Meanwhile, AMC theaters are also preparing to accept SHIB payments in the first quarter of next year, according to the CEO Adam Aron.

Daily trading

Bitcoin, the leading cryptocurrency in trading internationally, traded lower on Sunday, falling by 1.17  percent to $54,322. at 5:46 p.m. Riyadh time.

Ether, the second most traded cryptocurrency, traded at $4,077, down by 1.52 percent, according to data from CoinDesk.