"What Not to Miss" is a report highlighting the most important news that took place over a month within 4 main countries (Egypt, UAE, Saudi Arabia and Qatar) covering economic, financial and political aspects that may shape your decisions.
  • Egypt expects GDP growth of 5.3-5.4% in Q3-2017/2018 FY. The cabinet aims to target a budget deficit of 8.4% for year 2018/2019. However as re-structuring takes place, austerity measures impact the middle class.
  • Overall,  Egypt foreign reserves have increased to  42.52 BN USD at the end of February compared to  38.209 BN USD in  January 2018.
  • Egypt Suez Canal revenues fell from 451.9 MM USD in January 2018 to 435.8 MM USD in February 2018.
  • On the bright side, Al-Futtaim investment in Cairo Festival City will reach 1.7 BN USD by 2023.
  • Egypt President Abdel Fattah Al Sisi stated on Friday, 23rd of March, that his first term in theoffice had strengthened the state.
    • He defended the need for extreme austerity measures faced by the middle class during his term.
    • He also stated that the Islamic State militants will be soon defeated in the Sinai Peninsula. Elections started on Monday the 26th of March.
    • Voters will choose between Abd El Fattah El Sisi and Moussa Mostafa Moussa
  • Egypt and China havesigned a deal of 71 MM USD to build an Egyptian satellite and training center for the Suez Canal Economic Zone Authority (SCZone). Minister of International Cooperation, Sahar Nasr and China's ambassador at Cairo, Song Aiguo, signed the grant agreement in Cairo.
  • Egypt, which is the world's largest importer of wheat, will buy more than four million tons of domestically produced wheat. Overall, procurement prices for wheat will be announced by the end of March.
    • Local production is still less than imported wheat, it is expected that Egypt will import 7 million tons of wheat this year.
  • A bombing in Alexandria took place on March 24th, causing the injury of 5 people and killing two policemen, the bomb was left under a car. The government condemned the bombing then stated that the bombing will not affect the election.
  • Saudi Arabia annual inflation rate has declined in February 2018 to 2.9% compared to 3.0% in January, as the government introduced a 5% value added tax and increased domestic gasoline prices. Yet, figures suggest that the economy can escape a spiral inflation as the new tax and expensive fuel will constraint demand.   
    • The new tax and fuel prices are a part of a government movement to cut its own budget deficit.
    • Observing Food and Beverages, their prices increased by 6.5% compared to the last year, 2017. Restaurant and hotels also witnessed an increase in prices by 6.8%, compared to last year. The rise in prices is influenced by the new tax. Moreover, transportation costs have increased by 10.1% due to the current expensive fuel.
  • Saudi Arabia is revamping its education system to prevent "extremist ideologies". Crown Prince Mohammed bin Salman plans to modernize the deeply conservative Islamic kingdom. He had stated that the education ministry would "ban such books from schools and universities and remove those who sympathies with the group or its ideology".
  • Saudi Arabia has been strengthening investment relations with two specific countries,the U.S and the U.K.
    • The U.S investments in Saudi has reached a total of 56.40 BN USD. There are currently 373 American companies that have invested in areas of service, industry, real estate, scientific and technical sectors. Industrial activities make up a large lump share of the investments. The investments make a total of 193 BN SAR (51.47 BN USD) represented in 95 projects. Meanwhile services account for 13.5 BN SAR (3.60 BN USD) for 245 projects.
    • As for the investments with the U.K, Saudi Arabia General Investment Authority has announced that 10 UK firms have been licensed to expand their operations and current business in the kingdom. The 10 firms includeAstraZeneca, Unipart Rail, ARC Middle East, Dudley College of Technology, Mott MacDonald Middle East, Standard & Poor's Credit Agency and MEMF REPL. Even more, when Crown Prince Mohammed Bin Salman andPrime Minister Theresa May met, they have stated that they are expecting ambitious investment and trade deals that amount to 90.29 BN USD.
  • Saudi Arabia air defense shot down seven missiles that were fired from Yemen Houthi's milita group. Three of the missiles were shot at Northeastern Riyadh, the remaining four were targeting Najran, Jizan and Khamis Mushait. Fragments of the missiles killed an Egyptian resident and wounded two other Egyptians.
  • On 20th of March, Crown Prince Mohammed Bin Salman and U.S President Donald Trump, met at the Oval Office at the White House in Washington. The two sides discussed the importance of finding a political resolution to the crisis in Yemen. They have also discussed efforts to tackle the Iranian Nuclear issue.
    • Saudi Arabia stated that President Trump has renewed U.S historic commitment to establish stability and security of Saudi Arabia, as it would contribute to achieving the Kingdom 2030 Vision.
  • UAE non-oil economy has witnessed a rise in its foreign trade which reached 354 BN USD in 2017, compared to 35 BN USD in 2016. This has fixated Dubai position as a global hub despite the economic challenges in the region. Overall, Dubai foreign free zone trade grew by 5% from 2016 figures, with China accounting for 13.6% total value, followed by India accounting for 7.6% of total trade.
  • The chairman of the department of economic development, Saif Mohammed Park Kang, have discussed ways to encourage more investment opportunities through a number of economic sectors. Abu Dhabi government seeks to develop areas of joint cooperation with South Korea aiming to enhance economic and investment relations, specifically the non-oil sector. The meeting discussed both countries potential in enhancing the private sector and creating strategic partnership with Korean and UAE companies.
  • Saudi Arabia, UAE and US are planning to launch a security forum to address Iran "malign activity" at the Middle East. The forum is to be held at a national-security-advisor-level. It would also engage monthly on issues of strategic topics. This includes U.S South-Asia strategy as a part of the Gulf Cooperation Council and the war in Yemen.
  • UAE Central Bank raised its interest rate by 25 bps (basis points) following the US Federal Reserve's decision to raise interest rates by 25 bps as well.
  • Abu Dhabi National Oil Company (ADNOC) signed a 40-year agreement with China National Petroleum Corporation, providing its subsidiary (PetroChina), a 10% stake in Umm Shaif and Nasr concession and another 10% stake in Lower Zakum concession.
    • PetroChina contributed a 2.1 BN AED (575 MM USD) for the former concession and 2.2 BN in the latter.
  • Qatar plans on restraining government spending during the years 2018-2022. The five-year budget plan has been recalled as the National Development Strategy by the Prime Minister, Sheikh Abdullah bin Nasser al-Thani. The strategy aims for the economy to become more self-reliant specially in food production and efficient in energy use, as it faces a boycott by Saudi Arabia, UAE, Egypt, Bahrain and Mauritania. The budget plan will continue to spend on infrastructure, as it hosts the upcoming World Cup soccer tournament in 2022.
    • According to the plan it is to achieve consistent budget surpluses and transfer less amountto its sovereign wealth fund as long as oil and gas prices do not rise; assuming oil prices will stay in line with their levels in January 2017.
    • The GDP growth would average 2.1% and 3.0%.
    • The government current spending on goods and services will be an average of 21.2% of GDP in 2018-2022, compared to 32.6% in 2015.
  • AISUS, an inspection company has announced a first major contact dealin the Middle East with the North Oil Company (NOC). The agreement is a six-figure deal, and it marks a new step for the firm.
    • AISUS will undertake 2 inspection programs through two assets located in Al Shaheen oilfield, off the north-east coast of Qatar.
    • The project is expected to boost in Qatar economy.
  • The United States Department has approved 467 MM USD, for military sales to Qatar and the UAE. The Qatar Emiri Air Force was approved for 197 MM USD worth of equipment for air operations. The Pentagon was informed to buy global positioning system equipment and information distribution systems.
Cairo Office:
Z epter Office Building  S5-6 ,  Area 5, District 1, 5th Settlement,  New Cairo, Egypt.  P.O. Box:  1147
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Tel:  +97142820301

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