Pre-Trading Thoughts

Al Ahly Pharos

Egypt and Cyprus have begun serious steps to reach an agreement to build a 90-km marine natural gas pipeline to connect the two countries.

A consortium made up of SPE Capital-run equity fund SPE PEF III, European Bank for Reconstruction and Development, local private equity firm Tanmiya Capital Ventures, and the UK government’s British International Investment, inked an agreement to fully acquire local microfinance provider, Tamweely, from its current state-owned shareholders in a transaction worth EGP2.8 billion.

Saudi renewable energy developer ACWA Power expects to complete the first USD4 billion portion of its green hydrogen project in the Suez Canal Economic Zone by 4Q28.

The Urban Development Fund received eight offers from foreign and Egyptian investors to develop two projects in Kafr El-Sheikh and Mahalla El-Kubra in partnership with a total investment of EGP55 billion.

New tax incentives are set to be announced within the coming days.

Egypt's trade deficit decreased 5.1% y/y to USD2.9 billion in June 2024.

Car imports grew about 46.9% y/y to USD1.2 billion in 1H24.

MASR (FV: EGP5.24, OW) launched Butterfly, its project in Mostakbal City. The project is expected to generate sales of EGP64.0 billion.

According to local media, TMGH (FV: EGP75.00, OW) opened the first phase of its sports club in Celia in the New Administrative Capital.

Egypt’s ITIDA, ETEL, and China’s Tsinghua Unigroup are collaborating to set a USD300 million fund that will focus on AI and semiconductor development, along with establishing a data center and research facilities, according to local press.

Egypt Post plans to establish a digital bank in collaboration with financial and technical partners, according to local press.

Alpha Oryx Limited is preparing to acquire 35% of Egyptian Linear Alkyl Benzene (ELAB), 30% of Ethydco, and 25% of the Egyptian Drilling Company (EDC).

Meds shortages are set to be completely over by the end of September, according to the Head of the Pharma Industry Chamber of the Federation of Egyptian Industries.

SAUD’s Islamic financial services arm Al Baraka Capital and SME financing firm Invia will launch a new sharia-compliant investment fund focused on financing small companies concentrated in the industrial sector.

Egypt's ceramics exports declined 22% YoY to record USD64 million in the first 7 months of 2024.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 71.1 | -9.8%
| Diesel-HSFO Spread, USD/ton | 269 | 7.1%
| Egypt Urea, USD/ton | 349 | 1.2%
| Polyethylene, USD/ton | 1,020 | 0.0%
| Polypropylene, USD/ton | 965 | 0.0%
| Iron Ore 65%, USD/ton | 113 | -3.5%
| Steel/Iron Ore Spreads, USD/ton | 411 | 4.0%
| LME Copper Cash Price, USD/ton | 8,876 | -3.2%
| LME Aluminum Cash Price, USD/ton | 2,321 | -8.5%
| Egyptian Retail Cement, EGP/ton | 2,793 | -0.2%
| Steam Coal FOB Newcastle Australia, USD/ton | 142 | -2.5%
| SMP, USD/MT | 2,753 | 4.4%
| Last price may vary week over week in some indices due to time difference