Good morning, dear readers, Welcome to a new issue of our morning newsletter.
The most prominent local news: We review in more depth what Finance Minister Mohamed Maaait said during his participation in the Qatar Economic Forum in Doha. Maaait called for a focus on foreign direct investment instead of hot money, hinting at the possibility that Egypt would receive a four-year facility from the International Monetary Fund.
Legislation also has a space in our newsletter today. We are reviewing the views of property developers on the new controls that will ensure tighter control over the sector. We are also talking about the debate in Parliament on the amendments to the Competition Protection Act.
It’s interest day. The Central Bank’s Monetary Policy Committee will hold its meeting today to review interest rates amid rising inflation and the acceleration of the largest monetary tightening cycle the world has seen in decades. With rising inflation and the Federal Reserve’s decision to raise interest rates by 75 basis points at a time, emerging markets around the world – including Egypt – are expected to come under increasing pressure from monetary tightening and higher borrowing costs.
But it is difficult to predict what monetary policymakers will do this time: A limited majority of analysts surveyed by Enterprise last week expected interest rates to remain unchanged during today’s meeting. The central bank will wait to determine the impact of recent interest rate hikes on inflation in June and July, according to their expectations. The central bank has raised interest rates by 300 basis points since March in response to domestic inflation and global changes.
Reuters poll predicts this week That the central bank raises interest rates. The survey expected a 50 basis point increase in the price of the main operations to reach 11.75%, and a 25 basis point increase in the lending rate of 12.5%. “In the context of the Fed’s tighter policy and the pressure on Egypt’s external liquidity, a significant increase in the interest rate at the Central Bank of Egypt is needed for portfolio inflows to recover,” said Pascal Defoe, chief economist at BNP Paribas.
The Ministry of Finance emphasized that Minister Mohamed Maaait’s statements during the Qatar Economic Forum did not mention the existence of a food crisis in Egypt. She said some of the minister’s statements about the global food crisis had been taken out of context by some websites, according to a press release. She stressed that the strategic commodity reserve is sufficient for a period of six months.
More Saudi support for EgyptSultan bin Abdul Rahman Al-Murshed, CEO of the Saudi Development Fund, said during his meeting with International Cooperation Minister Rania Al-Mashat that the Fund looks forward to working more in renewable and clean energy projects as well as food security. in Egypt, adding that the Fund will visit Egypt in September to review the projects contributing to it, according to the statement issued.
And theskyline Yesterday, the Council of Ministers approved a draft decision to amend some provisions of the executive regulations of the Investment Act. It expands the company’s base that can benefit from a single approval, provided it is linked to the establishment of strategic or national projects that contribute to the achievement of sustainable development, or public and private sector partnership projects.
The Egyptian Exporters’ Association “Expolink” intends to issue a document specifying the environment for stimulating exports within weeksaccording to the Middle East News Agency, as the government intensifies its efforts to increase exports to $ 100 billion by 2025. The document will specify all the requirements companies need to enable them to export and increase their competitiveness. increase.
The most prominent news worldwide – the Fed recognizes the possibility of a recession: Federal Reserve Chairman Jerome Powell acknowledged that the US Federal Reserve’s stricter policies could cause a recession. In a speech to Congress, Powell said: “We are not trying to create a recession and we do not think we need to do it, but we think it is definitely necessary” to combat inflation, which has risen to levels not reached in decades. Powell added that a recession is “definitely a possibility,” according to the Wall Street Journal.
Is it not possible to make a “soft landing”? Powell did not address whether the Fed could implement a “soft landing”, which means slowing down price increases and curbing inflation without causing an increase in unemployment and a recession, and bringing the inflation rate to its 2% – bring down target without causing an economic collapse. “The events that have taken place around the world over the past few months have made it difficult to achieve what we wanted,” Powell said. Powell’s comments were covered by the Financial Times and Reuters.
More analysts warn of recession. Deutsche Bank and Citigroup have joined banks that have warned of the risk of a major recession, amid the global trend of monetary tightening and the war in Ukraine, according to Bloomberg. Deutsche Bank CEO Christian Swing said there was a 50 percent chance of a global recession, while analysts at Citigroup said there was a 50/50 chance of a recession, adding that, historically , the reduction of inflation usually entails significant costs on the growth side.
See you next week –
An upcoming debate in Parliament on the amendments to the Competition Protection Act: The House’s Committee on Economic Affairs this week debated proposed amendments to the Competition Protection Act and the Prevention of Monopolistic Practices, which proved controversial. Committee Chairman Ahmed Samir told Enterprise that officials from the Central Bank of Egypt, the Egyptian Financial Supervisory Authority, the Egyptian Stock Exchange and the Agency for the Protection of Competition and the Prevention of Monopolistic Practices were unable to resolve their disputes over the new amendments. two separate meetings this week. The committee is scheduled to hold a final meeting with representatives of the previous parties next Sunday in an effort to reach consensus on the draft law.
Changes are allowed, which have been postponed Since last yearThe Agency for the Protection of Competition and the Prevention of Monopolistic Practices has wider powers, Merger and acquisition transactions are also subject to the supervision of the Authority to prevent monopolistic practices in the market. It also grants the Authority the right to authorize or reject mergers and acquisitions. The current law gives the agency the power to object to merger and acquisition transactions that may be competitive, but only after the transaction has been completed.
Controversy: Samir said the dispute between officials is over the period during which companies must notify the competition authority of mergers and acquisitions, and the amount of fees that will be charged, without providing any additional details.
next step: Samir said the committee insisted on approving the proposed amendments before the council’s summer recess.
A number of Saudi real estate development companies will visit Egypt next week, to become familiar with the investment opportunities available in the local market, especially in new cities, according to the newspaper Al-Mal, quoting Fathallah Fawzy, vice president of the businessmen’s association. Several meetings have been scheduled between these companies and the Minister of Housing, Essam Al-Jazzar, and the Minister of Public Affairs, Hisham Tawfiq, in addition to the Saudi delegation’s visit to the new administrative capital and the new city of Galala and Al Alamein.
in notebook –
The US Chamber of Commerce in Cairo will hold its annual general meeting on Monday, June 27. The St. Regis Cairo. Finance Minister Mohamed Maaait will address the meeting.
You can view the full notebook at Our website, In which you will find a comprehensive list of upcoming news events, national holidays, conferences and everything that affects the business and financial community.