Arafa Holding has “no plans to inject any new investments in Egypt” in the coming period following the central bank’s decision to raise interest rates, Chairman and CEO Alaa Arafa told Al Shorouk. The cost of capital at the moment is not conducive to new investment, Arafa said, adding that no project can now be profitable given the mix of taxes, tariffs, and the high interest rate. The safest option now is to park funds in deposits, he added, stressing that the government needs to expand investment incentives if it wants to deliver on its economic goals. Arafa is the latest in a string of business leaders who have said they’re holding back on new capex given the prevailing interest rates after successive rate hikes.

More interest rate ripples as Naeem Holding will not extend subscriptions on its EGP 1 bn real estate fund for now because of the rate hike, the company said in a regulatory filing (pdf). The fund — the first of its kind in Egypt — is 1.3x oversubscribed, the company said.