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Tuesday, 21 June 2022

THIS EVENING: Egypt signs USD 7.7 bn-worth of MoUs with Saudi to develop key sectors + Kellogg to split into three companies

As we predicted this morning, it’s a busy news day on the home front, ladies and gentlemen, with investment front and center.

THE BIG STORY TODAY

We just signed 14 investment agreements with Saudi Arabia worth USD 7.7 bn covering key sectors including renewable energy, logistics, agriculture, and others, Saudi Commerce Minister Majid al-Qasabi said, according to a statement from Saudi’s Investment Ministry. Egypt and Saudi signed the agreements to coincide with Saudi Crown Prince Mohammed bin Salman’s visit to Cairo as part of a three-day tour that will next take him to Jordan and Turkey.

The agreements include a USD 3.26 bn agreement to build the Egypt Center for Petroleum and Petroleum Products Storage, between Saudi’s Ajlan & Bros Holding Company and the Egyptian Arab Supply Chain Group Company, according to Arab News. Meanwhile, Acwa Power signed an agreement with the Electricity Ministry that will see the Saudi company invest USD 1.5 bn to set up the MENA region’s biggest wind power facility, according to a cabinet statement. Benya Capital also signed an agreement with Saudi’s Al Fanar to set up a USD 200 mn tech-focused joint venture in Saudi Arabia that will focus on data centers, smart cities, and cybersecurity, Benya Chairman Ahmed Mekky told Bloomberg Asharq.

THE BIG STORY ABROAD

We have another thoroughly mixed bag this afternoon, but news that Kellogg is planning to split into three companies by sectioning off its snackfoods, cereal, and plant-based food businesses is getting front-page treatment (at varying levels of importance) in the international business press: Reuters | the Financial Times | the Wall Street Journal | CNBC.


** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • The Madbouly cabinet imposed a slate of new regulations for real estate players yesterday designed to protect consumers and reduce market risk.
  • EGAS signed an MoU with Chevron to explore ways to transport, import, liquefy, and re-export gas from the Eastern Mediterranean, with the two companies set to work on developing infrastructure to transport gas from offshore fields to Egypt, where it can be liquefied and re-exported.
  • Madbouly gets his ministers together for a status update on privatization plans: Prime Minister Moustafa Madbouly yesterday brought key cabinet ministers around a table to follow up on President Abdel Fattah El Sisi’s new economic agenda, including plans to sell stakes in state-owned firms to local and international investors.

🗓 CIRCLE YOUR CALENDAR-

It’s interest rate week: The Central Bank of Egypt will meet on Thursday to discuss interest rates. A majority of analysts and economists we surveyed expect policymakers to leave rates unchanged, according to our customary poll. A separate poll from Reuters suggests the CBE could enact a 50 bps rate hike in the face of persistent inflationary pressures.

The Big 5 Construct Egypt (pdf) construction industry exhibition runs from 25-27 June at the Egypt International Exhibition Center (EIEC) in Cairo.

Amcham AGM later this month: Our friends over at Amcham will hold their annual general meeting on Monday 27 June at the St. Regis Cairo Hotel. Finance Minister Mohamed Maait will address the gathering.

A call for women entrepreneurs: Visa, in collaboration with CIB and USAID, launched the She’s Next initiative (pdf) in Egypt, giving women-led businesses the chance to snag one of five USD 10k grants, as well as one year of coaching from IFundWomen with access to networking and mentoring. Applications close on 20 July.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect a daytime high of 38°C tomorrow before the mercury falls to a more manageable 21°C at night, our favorite weather app tells us.

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