Pre-Trading Thoughts

Egypt and Saudi Arabia signaled their intention to strengthen economic ties during a visit by Saudi Crown Prince Mohammed bin Salman, announcing deals worth USD7.7 billion. The agreements cover key sectors including energy, tech, food, and pharma, including: Ajlan & Bros inked a USD 3.3 bn agreement to build a facility for storing petroleum products with the Egyptian Arab Supply Chain Group Company.ACWA Power and Hassan Allam Holding signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) to develop a 1.1 GW wind farm in the Gulf of Suez for USD1.5 bn.Saudi's Albaik's products could be manufactured locally by the Egyptian subsidiary of Saudi’s Halwani Bros and sold to local franchisees. Hadhim Dates plans to invest here and work with private-sector companies to cultivate palm trees in Al Wadi Al Gadeed governorate.Saudi business development company T2 signed an investment agreement with FWRY to develop fintech solutions for trade and money transfers between the two countries.Egyptian pharma player Pharco will establish a USD150 mn pharma manufacturing complex in Medina, Saudi Arabia. Production is expected to begin within two years.The Saudi-Egyptian Business Council aspires to reach more than USD50 billion of Saudi investments in Egypt before the end of the current year 2022, according to the head of the council.Minister of Finance said that more than 90% of foreign investments in government debt instruments have already exited, after the Russian-Ukrainian war.The House of Representatives approved the state’s budget for the upcoming fiscal year, with no changes to the government's version.The House gave its final approval to suspend the 14% agricultural land tax for another year to July 2023 and granted the option to cabinet to extend the suspension again until July 2024.ETEL signed an agreement with Grid Telecom, a subsidiary of the Greek Independent Electricity Transmission Operator (IPTO), to link Egypt and Greece by a new submarine cable.FWRY plans to offer “myFawry” card after obtaining the CBE approval and plans to launch an investment fund over the myFawry platform in 3Q22, along with launching the BNPL services in 4Q22.Financial Regulatory Authority (FRA) has received an official offer by Chimera Investments to acquire up to 90% of Beltone Financial, at EGP 1.485 per share in a mandatory tender offer, valuing the company at around EGP 690 mn. The FRA is currently studying Chimera's offer. HRHO has closed an EGP 651.2 mn securitized bond issuance on behalf of mortgage provider Bedaya (a joint venture between EFG Hermes Holding, Talaat Moustafa Group, and GB Capital). Abou Ghaly Motors (AGM) could receive up to EGP 175 mn (EUR 9 mn) from the European Bank for Reconstruction and Development (EBRD) to fund the acquisition of electric vehicles (EVs).