New player in the EGX + Saudi to boost investments + Fitch outlook

Egypt Claps

The Clap

GV Developments plans to list on the EGX in 2024.

What

Speaking to Alborsa News, the company’s chairman stated that the listing is happening quicker than previously expected, to support the increasing pace of project executions.

So What

The company will join other heavyweight developers on the EGX, including Orascom Developments, Talaat Moustafa Group, and Palm Hills.

Now What

The Chairman also disclosed that the company sold 1,050 land plots to date, and signed 13 companies to develop Tarboul city’s industrial areas, which the government is transforming into a centralized market to attract investments.

The Clap

Saudi’s private sector is heavily eyeing investments in Egypt, sources told Asharq Business.?

What

Even with the chance of an EGP devaluation early next year, the Gulf country is still interested.

Fayez Al-Shuaili, Vice President of the Saudi Chambers, told Asharq Business that the Egyptian market is vast and promising.??

So What

Foreign Direct Investments (FDI) are one of the factors that could alleviate Egypt’s current foreign currency crunch.?

Some Context

Saudi investments have recently made several headlines, including KSA-based Alkrida Dates opening its first factory in Egypt in two weeks.

The Gulf country’s investments in Egypt reached USD 32 billion, according to Egypt’s Ministry of Planning and Economic Development.

The Clap

In its latest report, Fitch expected the EGP <> USD official foreign exchange (FX) rate to increase in 2024.?

What

Fitch expects that the official FX rate will reach EGP 45/USD in Q1-24.?

So What

This will help Egypt unlock the remainder of the International Monetary Fund (IMF) program.?

Now What

Fitch stressed that the official FX rate will remain at the 31 mark until the end of the year.?

Egypt needs a total of USD 20 billion — USD 8 billion to cover the current deficit, and another USD 12 billion to repay its foreign currency debt — according to Fitch.