Egypt + Qatar sign dual taxation elimination agreement to boost investment: Egypt and Qatar yesterday signed an agreement to eliminate double taxation and crack down on tax evasion, cabinet said in a statement yesterday. The treaty covers capital gains, income, corporate profits, interest and dividends, and was signed during Prime Minister Moustafa Madbouly’s visit to Doha where he held talks with senior Qatari officials about investing in Egypt.

Emir pledges to increase investment: Emir Sheikh Tamim bin Hamad Al Thani vowed that Qatar will make new investments in Egypt during the “coming period” during a meeting with Madbouly. Meanwhile, Qatari Prime Minister Khalid Bin Khalifa Bin Abdulaziz Al Thani said that the double taxation agreement will help create a “tangible” impact on boosting and encouraging Qatari investments in Egypt. The countries discussed cooperation in several areas including construction, green hydrogen, pharma manufacturing, ports, and real estate.

Reminder: Qatar pledged last year to invest USD 5 bn to help tackle Egypt’s FX crunch following Russia’s invasion of Ukraine but is yet to pull the trigger on any significant investments.

No news on Qatar acquisition talks: Madbouly’s trip to Doha came amid reports of stalled negotiations over two of the Qatar Investment Authority’s main targets: Vodafone Egypt and two state-owned container terminal operators. Asharq Business reported earlier this month that the two sides are not seeing eye-to-eye over Vodafone Egypt, with Qatar wanting to acquire the state’s full 45% stake and the government only putting 25% on the table. Likewise, the QIA has submitted an offer to acquire majority stakes in the Port Said and Damietta container terminal operators, a size that the Transport Ministry is reportedly reluctant to sell down.

The weakening EGP and valuations are causing issues: Sources reportedly told Bloomberg last week that the UAE, Saudi Arabia and Qatar are all keeping a close eye on the EGP ahead of signing off on the bns of USD of pledged investment, only a fraction of which has materialized. The decline of the EGP — which has nearly halved in value over the past year — is complicating valuations: Long-running talks with the Saudi wealth fund for the sale of state-owned United Bank were reported last week to be in jeopardy with the two sides unable to agree on how to value the lender following the depreciation of the EGP.

And commitment to reform: Bloomberg’s sources said that the three countries all want to see signs that Egypt is serious about reducing state involvement in the economy and improving the transparency of state companies before making further investments. Saudi Finance Minister Mohammed Al Jadaan said as much at Davos last month when he said that Riyadh will no longer provide unconditional aid to countries and will start insisting on reforms. Egypt committed under its USD 3 bn loan agreement with the IMF to reducing the economic involvement of state- and military-owned enterprises.

Egypt has been stepping up its efforts to lure Gulf investment: Planning Minister Hala El Said and Sovereign Fund of Egypt head Ayman Soliman toured the GCC earlier this month to market state-owned companies that the government is readying for privatization, while President El Sisi recently traveled to Dubai to hold talks with Emirati leaders during the World Government Summit.

Accompanying the PM in Doha: The finance, planning, health, and trade and industry ministers, as well as the heads of the Suez Canal Economic Zone and GAFI are part of the delegation. The visit will also see Egyptian officials meet with representatives from the Qatari Businessmen Association and the country’s chamber of commerce and industry, the cabinet said.

The news got attention in the foreign press: Reuters | Bloomberg.