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The Gaza war on the border with Egypt's Sinai Peninsula comes after the impact of Russia's invasion of Ukraine and the coronavirus pandemic exposed long-standing frailties in the Egyptian economy. "Foreign sentiment on Egypt is so weak, and now with this coming along it's last thing that Egypt needed. A foreign currency shortage has led to a $5 billion backlog of imports stuck at ports, and problems for foreign companies repatriating dividends, bankers say. So far, the Gaza war has affected the popular Sinai destinations of Taba, Nuweiba, Dahab and Sharm el-Sheikh but left the rest of the country relatively unscathed. Egypt's tourism minister told Reuters this week that the impact of the war was contained to under 10% of bookings.

Persons: Mohamed Abd El Ghany, Monica Malik, Moataz, Sharm, Karim ElMinabawy, Siamak Adibi, Egypt's, Olumide Ajayi, Malik, Patrick Werr, Sarah El Safty, Aidan Lewis, Toby Chopra Organizations: REUTERS, Abu, Tourism, Countrywide, Emeco, Middle East Gas, FGE, United Arab, Thomson Locations: Giza, Cairo, Egypt, CAIRO, Gaza, Ukraine, Dhabi, Taba, Dahab, Luxor, Aswan, Israel, Europe, Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Gulf . Saudi

☆ Egypt hopes BRICS entry will lure foreign cash, but analysts counsel patience
▼ + stars: | 2023-08-25 | by ( Patrick Werr | ) www.reuters.com time to read: +3 min

The bloc, which includes Brazil, Russia, India, China and South Africa, on Thursday invited Egypt and five other countries to join, and Egypt immediately welcomed the offer. "The group's aim of reducing dollar transactions will lower the foreign currency pressure in Egypt," the cabinet said in s statement on Thursday. Monica Malik of ADCB said BRICS membership may eventually help Egypt attract more investment. "Egypt has two deep needs - FDI and a cheaper debt burden - and BRICS membership can help with both," Robertson said. The BRICS group on Thursday also invited Saudi Arabia, Iran, Ethiopia, Argentina and the United Arab Emirates to join.

Persons: Egypt Mostafa Madbouly, MARCO LONGARI, Abdel, Fattah, Sisi, Monica Malik, ADCB, Charles Robertson, " Robertson, Robertson, James Swanston, Patrick Werr, Nafisa Eltaher, Sarah El Safty, Giles Elgood Organizations: Rights, New Development Bank, FIM Partners, United, Capital Economics, Thomson Locations: Egypt, Sandton, Johannesburg, South Africa, Rights CAIRO, Brazil, Russia, India, China, Ukraine, Saudi Arabia, Iran, Ethiopia, Argentina, United Arab Emirates, Saudi, UAE

☆ Analysis: Egypt faces external debt reckoning after borrowing spree
▼ + stars: | 2023-06-06 | by ( Patrick Werr | ) www.reuters.com time to read: +6 min

Amid a foreign currency crunch, Egypt has drawn down net foreign assets in the banking system by more than $40 billion in two years, partly used to prop up the pound. Reuters Graphics Reuters GraphicsReuters GraphicsFINDING FOREIGN FUNDSTwo of Egypt's main foreign currency streams, tourism and Suez Canal transit fees, have edged up. The hard currency squeeze has raised concerns about Egypt's ability to repay foreign debt. Those repayments to the IMF and foreign bond holders alone, worth about $4.5 billion, amount to more than half the annual $8 billion Egypt earns from the Suez Canal. Egypt's external loans leapt to $162.9 billion by December 2022 from under $40 billion in 2015, central bank data showed.

Persons: snubbing, Monica Malik, Moustafa Madbouly, Moody's, politican Abdel Fattah al, Sisi, Farouk Soussa, Goldman Sachs, Patrick Werr, Sumanta Sen, Aidan Lewis, Edmund Blair Organizations: Investors, International Monetary Fund, Finance, Reuters Graphics Reuters, Reuters, Reasssured, Stockholm International Peace Research Institute, Thomson Locations: CAIRO, Egypt, snubbing Egypt, Ukraine, Abu Dhabi, Suez, Cairo, Stockholm

☆ IMF says yet to agree date with Egypt for programme review
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +2 min

Disbursements under the 46-month programme are subject to eight reviews, the first of which was dated March 15, 2023, in an IMF staff report published in December. "Egypt really needs to show some meaningful measures to rebuild confidence and show that the process has started," said Monica Malik of ADCB. "It's better to start the review once there is tangible signs of process with reforms, including on a flexible currency." In its December accord with the IMF, Egypt also promised to sell state assets worth billions of dollars over the next four years. "Egypt has done important reforms over the last few years, and the fund has been very supportive..," Azouri said.

☆ Analysis: Pressure builds on Egypt to devalue currency further
▼ + stars: | 2023-03-28 | by ( Patrick Werr | ) www.reuters.com time to read: +5 min

Egypt has sharply devalued the currency three times since Russia's invasion of Ukraine in February 2022 exposed vulnerabilities in the country's finances. But with each devaluation the central bank aimed to keep the currency steady afterwards, only for the black market and non-deliverable forwards to quickly push beyond the new rate. "No time like the present to align foreign exchange rates with fundamentals," Urmossy said, adding that the March 30 policy announcement was "one of the most anticipated events in the African Frontier space." And the black market shows the hard currency shortage that has plagued Egypt for more than a year persists. "Demand for foreign exchange continues to outstrip supply, providing the conditions for the parallel market to grow," said Farouk Soussa of Goldman Sachs.

☆ UAE exchange house Al Ansari to float 10% in Dubai IPO
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

DUBAI, March 9 (Reuters) - UAE-based exchange house Al Ansari Financial Services said on Thursday it plans to float 10% of the company on the Dubai Financial Market (.DFMGI) through an initial public offering (IPO). Al Ansari said Abu Dhabi Commercial Bank (ADCB.AD), EFG Hermes UAE and Emirates NBD Capital were mandated as joint global coordinators for the IPO. It made 595 million dirhams ($162.01 million) in net profit last year, up from 491 million dirhams in 2021. Operating income rose to 1.15 billion dirhams from 988 million dirhams in 2021. The Emirates Investment Authority, the UAE's only federal sovereign wealth fund, has the right to subscribe to up to 5% of the offering, Al Ansari added.

RIYADH, Dec 7 (Reuters) - Saudi Arabia expects to post a second consecutive budget surplus in 2023, though down 84% from this year as an uncertain global economic outlook and lower crude prices look set to weigh on the top oil exporter's revenues. Spending is slightly lower than 1.132 trillion riyals this year. Revenues are expected at 1.13 trillion riyals, down from 1.234 trillion riyals in 2022 as oil prices are seen falling from this year's high levels. Public debt is seen falling 3.5% to 951 billion riyals next year, or 24.6% of GDP. Government reserves at the Saudi Central Bank are estimated to reach 399 billion riyals at the end of next year, the finance ministry said.

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