The Most Highlighted News
Trade exchange between Egypt and the United States increased by 29.2% in the first seven months of 2018 reaching 3.8 BN USD (68 BN EGP), compared to 2.96 BN USD (53 BN EGP) in the same period in 2017.
  • US is one of the major markets for Egyptian imports, which totaled 832 MM USD in the first seven-month of 2018.
  • American investments in Egypt now stand at 2.4 BN USD, distributed over 1,222 projects across various sectors, accounting for nearly 35.4% of American investments in Africa, and 46.2% in the Middle East.
  • Egypt is the biggest receiver of American investment in the continent and the second in the MENA region.
The Suez Canal Authority has signed three contracts valued at over 1 BN USD with major Chinese companies specialized in the industry of textile and gypsum boards. The contracts will be executed at the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain El Shokhna:
  • The first contract was signed with Shandong Ruyi Technology Group Co, upon which the Chinese textiles and clothing company seeks to pump 830 MM USD investments in setting up an industrial zone for textile production at TEDA which will provide 10,000 jobs.
  • The second contract was signed with Taishan Gypsum Co Ltd, which it plans to establish a gypsum products factory at TEDA with 125 MM USD in investments, which will provide around 300 jobs.
  • As for the third contract, the SCA signed the deal with Xiamen Yan Jiang New Materials Co to manufacture and supply non-textile products at the Chinese-Egyptian industrial zone. The contract will be implemented at a value of nearly 50 MM USD and will offer around 200 jobs
Egypt is ranked the second wealthiest country in Africa in 2017 with a net worth of 330 BN USD . South Africa topped the list with a net worth of 722 BN USD , while Nigeria came in the third place with 253 BN USD . However, Cairo came in the third spot among the wealthiest African capitals as the net worth of individuals living in the Egyptian capital estimated at 140 BN USD. 
Egypt central bank is expected to leave interest rates on hold as emerging market turbulence weighs on the economy even as inflation shows signs of slowing. The bank monetary policy committee was likely to maintain its deposit and lending rates at 16.75% and 17.75% respectively.
  • In June 2018, prices leapt after the government reduced subsidies on electricity and a wide range of fuel products, including petrol, diesel, fuel oil and natural gas, part of a program drawn up with the IMF two years ago to reduce the budget deficit. In May 2018, the government also raised the price of metro tickets.
  • The yearly inflation ratio declined to 14.24% in August 2018 compared to 31.92% in August 2017, when the bite of the fiscal reforms was at its most painful. Despite the improving inflation figures, investors have grown warier of Egypt and other emerging markets since currency crises hit Turkey and Argentina in August.
Egypt domestic liquidity increased by 17.8% y-o-y to 3.49 TR EGP at the end of July 2018, compared to 2.94 TR EGP in July 2017. On a monthly basis, liquidity increased slightly in July 2018, compared to 3.45 TR EGP in June 2018.
The Saudi Arabia-based Islamic Corporation for the Development of the Private Sector ( ICD ) has signed sharia-compliant financing agreements with six banks in Uzbekistan . Uzbekistan, the most populous country in Central Asia where a majority of its 32 million people are Muslim, is introducing Islamic finance rules to expand its banking sector and tap foreign markets.
  • The financing lines from the ICD, the private-sector arm of the Islamic Development Bank Group, are modest in size but would help local banks offer Islamic financial products of their own.
  • The lines include a 7.5 MM USD financing agreement with state-controlled Asaka Bank, which would be used to support private companies.
Saudi Aramco has signed a long-term deal with Zhejiang Rongsheng to supply crude oil to the Chinese company new refinery in eastern China. Zhejiang Petrochemical, 51% owned by textile giant Rongsheng Holding Group, was in August awarded a quota to import 5 million tons of crude oil in 2018. The company plans to start up its 400,000-barrels-per-day refinery-petrochemical project in eastern China in late 2018.
Saudi Basic Industries Corp. ( SABIC ) is preparing to offer its dollar-denominated unsecured bond to the global market with investor meetings. SABIC will be meeting investors in London, New York, Los Angeles and Boston. The Saudi company is likely to be keen to tap into the heightened international interest in Saudi Arabia financial markets following the lifting of some restrictions on foreign investors’ activities at the start of the year.
  • SABIC has also confirmed the appointment of BNP Paribas and Citigroup as global coordinators on the sale, alongside HSBC Bank, Mitsubishi UFG Securities EMEA and Standard Chartered Bank acting as joint lead managers, in its Tadawul note.

The Saudi Authority for Intellectual Property has signed an MoU with the South Korean Intellectual Property Office to cooperate in the protection of intellectual property rights. The MoU aims to establish a general framework for intellectual property cooperation between the two countries and the development of automation systems, including workflow mechanisms, information systems and administrative processes.
The Saudi Cabinet expressed its approval for a royal order establishing a rural development program for sustainable agriculture that will support and develop the dates and palms sector. The program, backed with an initial capital outlay of 1.5 BN SAR and investment of more that 7 BN SAR over seven years , is an extension of the king’s care for Saudi farmers. 
The Export Unit Value Index in the Emirate of Abu Dhabi was up to 87.3% in Q2-2018, a growth of 7.6% compared to 81.2% in Q2-2017. In the meantime, the Import Unit Value Index increased to 108.7% in Q2-2018 compared to 103.4% compared to Q2-2017. UAE has maintained its position as the most important market for commodity exports and imports in the region.
It is predicted that integrating the two economies of UAE and Saudi Arabia will create an economic entity with a GDP of around 1.1 TR USD. Trade and economic relations between the UAE and Saudi Arabia are the largest among the GCC countries , and the UAE is a key trading partner of the kingdom in the Arab region. According to the latest figures:
  • The GDP of Saudi Arabia in 2017 reached 685 BN USD, while the UAE GDP reached 407.2 BN USD.
  • The total non-oil intra-trade between the UAE and Saudi Arabia amounted to 720 BN AED (196 BN USD) since the establishment of the GCC Customs Union in 2003 until the end of H1-2018, marking a growth of 1,23%.
  • UAE imports from the Kingdom reached 244.2 BN AED (67 BN USD) during the monitored period and exports to 144.8 BN AED (39.7 BN USD).
  • UAE re-exports totaled 330.9 BN AED (90.6 BN USD) during the same period.
The UN Human Development Index ( HDI ) in 2017 has joined the UAE into the comity of nations that have achieved " Very High Human Development " for their citizens and residents. The Emirates was ranked 34 th in the index, one mark lower than in 2016 but still better than 155 countries. The UAE is ranked high in HDI mainly due to two key social parameters:
  • Life expectancy and education have seen significant improvement for the UAE over the years. This is mainly because of its sustained policies and focus by the authorities to provide a state-of-art-health and education infrastructure in the country.
  • UAE is well-poised to become a major hub in the region both for health and education. In addition, the UAE is also in the forefront in the Gender Development Index, signifying the active role of women and their empowerment in all walks of life. 
Emirates Islamic , one of the leading Islamic financial institutions in the UAE, announced the launch of home finance solutions to help non-residents purchase property in the UAE. Investors residing in Kuwait, Oman, Bahrain, Saudi Arabia, India, the United Kingdom, China, Hong Kong and Russia can benefit finance up to 50% of their UAE property value for a 25-year tenure at attractive profit rates.
Dubai-based BIC contracting Company ( BICC ) received a contract worth of 28 MM USD (103 MM AED) from real estate developer Arada for construction works at the Aljada project . BICC will be entrusted with supervising and executing all infrastructure development works, including water, power and road networks for the first phase of the development. 
Dubai Investments PJSC , the leading diversified investment company listed on the Dubai Financial Market, has announced its readiness to provide innovative solutions to the construction sector through diverse activities provided by its 18 subsidiaries working in the sector.
  • Dubai Investments expansion plans stem from its interest in supporting the strategy of economic diversification supported by the UAE leadership to reduce dependence on oil resources.
  • In addition, Dubai Investments has contributed to strengthening the industrial base of the country, upgrading local capacities to keep pace with global industrial and technical developments, and providing support to future projects and sectors in the country.
Qatar Al Khalij Commercial Bank mandated Barclays, QNB Capital, Standard Chartered and Qatar Commercial Bank to arrange fixed income investor meetings in Asia and Europe before a potential U.S. dollar-denominated benchmark bond issue. Benchmark deals are generally meant to be upwards of 500 MM USD. The Qatari lender is rated A3 by Moody's and A by Fitch. 
Huawei , a leading global provider of information and communications technology ( ICT ) infrastructure and smart devices, has become one of the first technology firms to register with 100% ownership in Qatar . The move is intended to accelerate the development in all economic and commercial activities, attract foreign capital inflow, and achieve economic diversification in accordance with the Qatar National Vision 2030. In order to support its increased activities in the country, the company has also opened a new office in West Bay, Doha. 
Turkey will sign an economic and trade partnership agreement with Qatar , in order to secure cheaper supply of refined oil products and natural gas. The deal will target a comprehensive liberalization of goods and services trading between the two countries, will also include telecommunications sector and financial services.

Qatar Petroleum ( QP ) has concluded a 3-year sale agreement to supply India Haldia Petrochemicals Ltd. ( HPL ) in West Bengal, with a total of 600,000 tons of Light Naphtha starting in 2018. This long-term supply agreement is the first naphtha feedstock sale of Qatar Petroleum for the Sale of Petroleum Products Company ( QPSPP ) to an end-user in India, highlighting QPSPP push for more direct sales with established end-users.
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