The World Bank lowered its annual global growth forecast for 2022 down from 4.1% to 3.2%, citing the impact that Russia’s invasion of Ukraine.

Egypt's external debt has increased to USD145.5 billion in December 2021, up from USD137.4 billion in September (5.9% QoQ increase).

Saudi Shura Council approved a draft agreement between the governments of Saudi Arabia and Egypt regarding the investment of the Saudi Public Investment Fund (PIF) in Egypt.

Prime Minister met with Emirati investor Mohamed Al-Abbar to discuss opportunities to expand his investments in Egypt. 

Minister of Transport, discussed with the Qatari Prime Minister strengthening bilateral cooperation and partnerships in the transport sector, especially in the field of maritime transport, during his visit to Doha.

Deputy Tourism Minister said that the war in Ukraine is set to stall the growth of tourism revenues, but the resumption of flights between Moscow and Cairo as well as limited flights running between Russia and Red Sea resorts will help in regaining some of the loss. 

A member of the Parliament submitted a request addressed to the Prime Minister and Minister of Finance requesting a review of the decision to cancel the documentary credit system in import operations.

Ebtikar Holding announced that Vodafone has purchased a stake of 9.99%  (at par) in Bee and Masary. Post transaction, Ebtikar’s stake reached 90.01% in Bee and 63.64% in Masary. MTIE’s stake in Ebtikar stands at c.40.5%. 

AMOC’s 3Q21/22 net profit after taxes inclined to EGP354 million compared to EGP178 million recorded in 2Q21/22 and EGP146 million in 3Q20/21 (+99% QoQ and 1.43x YoY). On an annual basis, net profit after taxes for 9M21/22 came in at EGP762 million that is up 6.38x YoY. Reasons: Higher brent prices; The increase in Diesel- HSFO spreads; Higher volumes. AMOC is currently trading at FY21/22 P/E of 4.3x and FY21/22 EV/EBITDA of 3.3x.

Five new countries, including Germany and Brazil, are considering importing fertilizers from Egypt, in an attempt to compensate for the lack of supply in their markets.

ORHD AGM approved awarding EGP2.5 billion construction contracts to Red Sea for Construction Company for construction in ORHD's projects during FY22.

CIRA declared that 3 schools will be launched by the upcoming academic year (September 2022). By September 2024, a new school will be added in Assiut. This follows guidance of opening 6 new schools within two years of 2022-23. CIRA is currently trading at a FY21/22 P/E of 19.9x and EV/EBITDA of 10.1x.

Car distributors and traders tended to dispose of their stock before the deadline set by the Consumer Protection Agency to commit to selling at the official price announced by the assemblers and importers, which is around May 7.

Sri Lankan conglomerate LOLC Group has acquired 100% of First Microfinance in a transaction worth EGP 80.2 mn, with the target to increase the microlender’s outstanding portfolio to EGP 1.4 bn from a current EGP 190 mn over the next three years. It also wants to expand the company’s branch count by more than 10x to reach 100 over the next two years.

Weekly Commodities Update

Brent futures are trading at USD1113.45/bbl and averaged USD99.30/bbl YTD.

The Egypt Urea Index was unchanged WoW and prices are currently at USD1,130/ton

Polyethylene (HDPE) prices were unchanged WoW and prices are currently at USD1,550/ton

Diesel-HSFO spreads were up 26% WoW and are at USD562/ton

Polypropylene prices dropped 0.7% WoW to reach USD1,330/MT

Steel/Iron Ore spreads inched down 1% WoW to record USD622/ton compared to last week

Aluminum prices stood at USD3,286/ton, -3% WoW 

Retail cement prices in Egypt dropped during the week to range EGP1,300 -1,350 per ton 

Steam Coal prices surged 6% WoW to record USD309/ton

Wheat prices climbed WoW 5.5% to reach USD1