The CBE's MPC is scheduled to meet today. We remind you that we expect the CBE to prefer to hold rates unchanged in today’s meeting due to persistent inflationary pressures, among other factors.

Senior private and public sector figures from Egypt and the UAE inked numerous investments:

Cabinet greenlit two power purchase agreements for two separate solar projects for a consortium made up of the UAE’s Masdar, Hassan Allam Utilities, and Infinity Power.

Cabinet approved a draft decision to establish a USD10 million private freezone for ready-made garments in Sadat City.

Sources in the Ministry of Electricity revealed that USD3.5 billion are expected as investments in the renewable energy plant project located in Zaafrana.

Egypt’s fourth IMF review is set to wrap by tomorrow, with only procedural stages left before the Fund’s Executive Board formally greenlights the decision that will unlock USD1.3 billion in financing.

Sources said that although the Suez Canal Authority’s contributions to the state coffers plummeted 92% y-o-y to EGP1.0 billion in the first quarter of FY24-25, the shortfall was partially offset by a 108% surge in revenues from special funds.

Turkish Investment group Erciyas Holding is looking to establish a USD60 million oil, natural gas, and water pipelines factory in Egypt.

Turkish clothing manufacturer Eroglu Holding has broken ground on its USD51 million garments factory in the Qantara West Industrial Zone.

The government is getting ready to launch the EGP115 billion second phase of the universal health insurance system in the next fiscal year.

Egypt may need to seek alternatives to Russian wheat, as Russian farmers are turning their backs against the grain, saying they will sow less wheat in favor of higher-margin crops like peas, lentils, and sunflowers, Reuters reports.

HRHO 3Q24 net profit after tax and minority interest recorded EGP697 million (-12% q/q, +76% y/y), bringing 9M24 attributable bottom line to EGP3,309 million (+97% y/y). The company is currently trading at 7.7x P/E25 and 0.9x P/B25.

The coverage rate of the private offering of United Bank on the EGX reached 1.06 times yesterday, Wednesday, on the first day of opening the subscription door, which lasts for five days, while the public subscription starts on November 27 until December 3.

ValU Consumer Finance Company’s financing recorded EGP1 billion during the first half of November, which witnessed the White Friday offers, according to Walid Hassouna, the company’s CEO.

CANA and Mint Real Estate Assets, a joint venture between Al Ahly Sabbour and the National Bank of Egypt, have set up a new real estate development company called Anchors for Real Estate Development.

CCAP’s consolidated revenue grew 64% YoY to EGP38.2 billion in 2Q24 supported by solid performances across all subsidiaries. However, the Group’s net loss expanded by 255% YoY to EGP1.4 billion during the quarter as a result of an increase in non-operating expenses, including revaluation of Allied Corp and TAQA Arabia shares, as well as legal costs associated with the restructuring and settlement of bank debt.

ECAP released weak 3Q24 financial results, with net profit dropping to only EGP2.6 million (-96% YoY, -97% QoQ) on the back of a contraction in operating margins, a surge in net interest expense, along with a FX loss of EGP32.8 million. The stock is trading at FY25e P/E of 6.4x.

The European Bank for Reconstruction and Development (EBRD) is set to provide some USD21.3 million in new funding to the Red Sea Wind Energy (RSWE) — a JV between ORAS, France’s Engie, and Japan’s Toyota Tsusho/Eurus Energy.

Market Overview
EMFD
HELI
PHDC
TMGH
GGCC


prepared by: Mayada Amin - CETA, CFTe

United Bank will kick off its planned offering on the EGX today. The total offering could see the bank raise up to EGP5.1 bn by floating an equivalent to a 30% stake.

The number of tourists visiting Egypt increased during Jan - November 2024 by 4% compared to the same period last year.

Egypt's imports of fuel shipments increased to more than USD12.5 billion during 10M2025, compared to USD10.5 billion in the same period last year.

EGAS is negotiating long-term agreements to import LNG, moving away from reliance on global tenders. The move aims to secure gas supplies and protect Egypt from fluctuating spot market prices. Tenders will remain in use, but only for limited imports.

IFC wants to collaborate with the government on mining materials it thinks will aid local manufacturing.

The government wants to replace 250k gasoline-fired car engines to ones that run on natural gas. The government will soon start converting its own fleet of vehicles to run on natural gas.

Al Dahra Egypt, a subsidiary of Emirati agribusiness Al Dahra, is planning on investing some USD 200 mn to add between 80k-90k feddans to its land portfolio over the next five years.

Abu Dhabi Tourism Investments Company, owned by the Abu Dhabi Fund for Development, is pumping new investments worth USD100 million to establish the Sofitel Legend Pyramids Hotel.

The House also greenlit a EUR 1.8 mn grant agreement to support people with disabilities, with Italy set to provide EUR 1.65 mn and the Social Solidarity Ministry providing EUR 181k.

We updated our FV for POUL to EGP21.29/share and maintain Overweight recommendation. The updated FV factors in:

1. Adjusting revenues to new market prices.

2. Normalized margins to average at 21.3% through the forecast period.

3. Strong cash position.

4. New macro assumptions.

POUL is currently trading at 2025f P/E of 3.3x.

OIH is set to acquire Misr for Entertainment Investments with its non-executive expert directors and independent directors approving the acquisition in principle.

Credit rating agency Fitch Ratings has upgraded the credit ratings of four major Egyptian banks. The agency upgraded the ratings of the National Bank of Egypt, Banque Misr, COMI, and Banque du Caire to B from B- with a stable outlook.

Al Marakby Steel to invest EGP1.5 billion in the coming five years within the company's expansion plan and establishing a solar power station.

Three Chinese companies had injected USD400 million of investments in the sanitary ware sector during the last few months.

Kempston, specializing in the production of SPC flooring, to launch the first phase of its new factory in Ain Sokhna in 1Q25 with a capacity of 1 million sqm per year. The second phase is planned to be operational by the end of 2025 doubling the capacity to 2 million sqm a year.

Chinese state-owned auto manufacturer FAW Group is re-entering the Egyptian market in 1Q25 under a partnership with an unnamed new agent.

Chery International subsidiaries Omoda and Jaecoo are in talks to enter the Egyptian market through a partnership with an unnamed local agent.