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Thursday, 10 June 2021

The annual cost of net-zero emissions in developing countries: USD 1 tn

The annual cost of net-zero emissions in developing countries: USD 1 tn. Developing economies will need more than USD 1 tn in clean energy investments each year by 2030 if the world is going to achieve net-zero emissions by the middle of the century, the International Energy Agency (IEA) said yesterday. This is a 7x increase from the USD 150 bn that was invested last year.

“A major catalyst is needed to make the 2020s the decade of transformative clean energy investment,” IEA Executive Director Fatih Birol said. “Governments need to give international public finance institutions a strong strategic mandate to finance clean energy transitions in the developing world.”

The IEA said last month that new fossil fuel projects must not be given the go-ahead if the world is going to hit its targets. Energy-related emissions from developing countries are predicted to grow by 5 bn tonnes over the next two decades, making clean energy investment a top global priority.

Saudi Aramco raised USD 6 bn in its first USD-denominated sukuk bond issuance — after receiving subscription requests worth USD 60 bn — in an effort to fund part of its USD 75 bn dividend payout, Reuters reports. In 2019, the state oil giant received USD 12 bn in its maiden bond issuance, before completing a follow-up USD 8 bn sale in November last year.

Low liquidity, falling prices, and stagnant trading activity has been driving a spate of real estate delistings in Dubai: Damac Properties is the latest to consider taking its business private, after Hussain Sajwani made a USD 599 mn “voluntary conditional offer” yesterday to buy out the company’s minority shareholders at a price 31% below the average share price over the past five years, Bloomberg reports.

This comes a few months after Emaar Properties said it would delist one of its subsidiaries for only two thirds of its IPO price, as well as government-controlled Meraas Holding’s offer to acquire DXB Entertainments at a discount of a third. Observers say this trend could hurt an already struggling industry, with Dubai planning to add 62k new homes to the market this year and 63.5k in 2022.

Up

EGX30

10,042

+0.8% (YTD: -7.4%)

None

USD (CBE)

Buy 15.62

Sell 15.72

None

USD at CIB

Buy 15.62

Sell 15.72

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

10,790

+0.5% (YTD: +24.2%)

Up

ADX

6,711

+0.6% (YTD: +33.0%)

Down

DFM

2,831

-0.1% (YTD: +13.6%)

Down

S&P 500

4,219

-0.2% (YTD: +12.3%)

Down

FTSE 100

7,081

-0.2% (YTD: +9.6%)

None

Brent crude

USD 72.22

-%

Up

Natural gas (Nymex)

USD 3.16

+0.9%

Down

Gold

USD 1,891.40

-0.2%

Up

BTC

USD 37,160

+10.5% (as of midnight)

The EGX30 rose 0.8% at today’s close on turnover of EGP 1.38 bn (5.8% above the 90-day average). Regional investors were net sellers. The index is down 7.4% YTD.

In the green: Edita (+6.0%), Sidi Kerir (+5.8%) and Orascom Financial Holding (+4.5%).

In the red: Telecom Egypt (-2.3%), Oriental Weavers (-1.5%) and TMG Holding (-1.0%).

Asian markets are in the green this morning, while futures suggest that European and US shares will follow them later today.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.