Egypt`s Economic Summit
Egypt’s Economic Summit Egypt’s Economic Summit EU pledges EUR 1bn in aid package for Egypt The European Union said it is committed to providing a financial aid package worth more than 1 billion euros for Egypt’s economy in various sectors. More than half of the aid package will be in human and social development including education and healthcare, the EU added. Meanwhile, more than one third of the aid will go for infrastructure and environment protection. The remaining portion will be injected in initiatives for economic development, trade and innovation, in addition to human rights. Aabar & Palm Hills sign $20bn deal for Egypt project Egypt’s housing ministry signed a memorandum of understanding with UAE’s real estate developer Aabar and Egyptian property firm Palm Hills Development (PHD) for a real estate project worth $20 billion. The project, to be named Oasis October, will be built over 10,000 acres in Six of October City, and will include administrative, commercial and housing units. Palm Hills Stock Price fluctuations over 1 year: El-Sisi, bin Rashid witness agreement signing to build Egypt’s new capital Egypt’s housing minister Moustafa Madbouly has signed an agreement worth $45 billion with the UAE to build Egypt’s new administrative business capital. The agreement signing was witnessed by President Abdel Fattah El-Sisi and UAE’s vice president and prime minister and ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum. The new 70,000 acre city will be built on the road to Ain al-Sokhna, to the east of Cairo. “The Capital Cairo” is deemed to be one of the largest-of-itskind infrastructure development projects in the world. The project will cost $45bn, and will take between five to seven years to complete. Heliopolis for Housing and Development proposes Heliopark worth EGP 6bn Heliopolis for Housing and Development (HCHD) proposed two real estate projects at the Economic Summit, in New Cairo and Heliopolis City, with an investment cost of EGP 6bn. 4 Egyptian, GCC companies compete for Gamasha Gulf project Four Egyptian and GCC companies are competing to acquire the Gamasha Gulf project in the Red Sea. Gamasha Gulf is one of the areas with the most investment opportunities for Egyptian and GCC investors with a land area of over 8m sqm. Heliopolis for Housing & Development stock fluctuations over a year. Egypt, Siemens sign $10bn energy deals Egypt’s electricity ministry signed four MOUs with global energy firm Siemens for energy projects worth $10 billion. Under the first MOU, a combined power plant will be established in Beni Suef with a capacity of 11.004 megawatts. Meanwhile, the second memorandum includes establishing five combined power plants in Noubarya in Beheira governorate, Sidi Kirir in Alexandria, Southern Cairo, Qena and Kafr El-Dawwar with total capacity of 6,600 megawatts. According to the third MOU, a large factory will be established to produce manufacturing tools for the wind plants. Under the fourth memorandum, a power transformer station will be established. Dana Gas to pump additional $350m in Egypt until 2018 UAE-based energy company Dana Gas PJSC will invest $350m in Egypt over the next 2.5 years, on top of its normal operating costs. The investment comes after the company reached an agreement with the Egyptian government guaranteeing the latter would be paid any overdue debts. *Egypt will recover overdue payments to Dana Gas by 2016. Egypt, BP sign $12bn energy deal Egypt’s oil minister Sherif Ismail signed an agreement worth $12 billion with UK’s British Petroleum (BP).The deal is for the development of 5 trillion cubic feet of gas resources and 55 million barrels of condensates in the West Nile Delta. Italy’s Eni signs $5bn deals over 5 years Italian oil firm Eni signed heads of agreement with Egypt worth $5 billion over five years which would generate at least 900 million standard cubic feet of gas. *The Summit resulted in more than $ 49 bn discussed and signed investments in the electricity and energy sectors. Sawiris says to launch $500m investments Egyptian business tycoon Naguib Sawiris said that a total of $500 million worth of investments will be launched over the few coming period. These investments will include a solar power plant worth $120 million, in addition to a new production line in a sugar plant at a value of $100 million. Ministry of Electricity inks $100m deal with Orascom Construction Egypt's Ministry of Electricity announced Sunday it has signed an agreement with Orascom Construction Co. to set up solar power plant at total value of $100 million. The power plant will be with capacity of 50 megawatt and will be established at Kom Ombo, Aswan Governorate, Egypt. UAE's KBBO plans $2bn investments in Egypt Abu Dhabi-based KBBO Group is planning to invest $2 billion in key sectors of the Egyptian economy including but not limited to health, money exchange, waste management, renewable energy. GE invests $200m in Egypt General Electric (GE) Chairman and CEO Jeffrey Immelt announced that GE is investing in a new $200m multimodal manufacturing, engineering, services and training centre in Egypt.The new centre will focus on various industries, including power generation, renewables, water, oil & gas, aviation and rail transportation. The facility is expected to create 500 skilled jobs and help in smalland medium-sized enterprise growth in the technology and energy sector. Orascom Construction stock fluctuations over 1 year: Cooperation Ministry, IDB, sign fund agreement The Ministry of International Cooperation has signed a funding agreement with the Islamic Development Bank (IDB) worth $200m to develop the benzoin distillation unit of Assiut refinery. Minister of Petroleum Sherif Ismail said that the capacity of the refinery will amount to 600,000 tonnes of benzoin annually, expecting the production to begin in 2017. Omar Al- Futtaim Group to invest more than $ 3.5 bn in Egypt IDB discussed more than one project in the Economic summit including the benzoin distillation unit of Assiut Refinery, the Development of Sharm El Sheikh’s airport, and the Egyptian Saudi Electricity connection project. Omar Al-Futtaim group announced during the economic summit that it will invest more than $3.5 billion different diversified projects in Egypt. UAE’s Al-Futtaim increases its Egypt investments to EGP23bn Cairo governorate signed a cooperation protocol with UAE’s Majid Al-Futtaim (MAF) for the establishment of a retail chain in Egypt at a total value of EGP 5 billion. Thus, the company’s total investments in Egypt will be raised to EGP 23 billion. GCC states pledge $12.5bn in fresh aid for Egypt GCC states have pledged $12.5 billion in financial aid for Egypt’s economy. Kuwait have contributed with $ 4 billion, Saudi Arabia contributed with $ 4 billion, United Arab Emirates have contributed with $4 billion, and Oman have contributed with $ 500 million. $500m to be invested by PepsiCo in Egypt in 2015 PepsiCo Egypt is set to invest $500m across all its business units in Egypt in 2015. The investments will be injected for expanding the company’s portfolio and in the company’s total supply chain network as well as infrastructure and capacity. Al-Suwaidan to inject $6bn in logistics center, commercial city Emirati Company Al-Suwaidan intends to pump investments worth $6bn in a logistics center of grains and yields in Damietta and a commercial and shopping city in Ain Sokhna. Kuwait: $ 4 billion Saudi Arabia : $ 4 billion Emirates: $ 4 billion Oman: $ 500 Million Coca-Cola reveals $500m investment plan in Egypt Coca-Cola revealed further details about its previously announced commitment to invest $500m in Egypt within three years. The investment will fund new manufacturing, distribution, sales and marketing capabilities, which will include the opening of a new bottling facility in 6th of October City in 2016, while creating additional employment opportunities. World Bank offers $400m to Egypt The World Bank will offer $400m to Egypt to launch programmes to eliminate poverty and to elevate the standards of living in Egypt. Coca Cola & PepsiCo to invest $ 500 mn in Egypt to expand their portfolio, distribution, sales , manufacturing, and the whole supply chain network Khalifa Fund activates development loan agreement to Egypt A loan agreement between the Khalifa Fund for Enterprise Development, the Egyptian Ministry of International Cooperation and Social Fund for Development has been reintroduced. The agreement is worth $200m to be invested in Egyptian micro-project developments, following all the legal procedures in both states. FourWinds Capital to establish $1bn fund in Egypt FourWinds Capital Management, the financial services and asset management arm of FourWinds Group of Companies that it will establish a new $1 billion fund dedicated to infrastructure investments in Egypt. Economic Summit Summary as per Sector Sector Amount Housing & Real Estate Projects $ 68 billion Electricity projects $ 21.2 Billion Energy projects $ 28 billion Logistics projects $ 6 billion Transportation projects $ 5.9 billion Socio-economic projects $ 3 billion Tourism projects $ 12.7 billion The rest of the amounts will be invested in other types of projects including but not limited to food & beverage, infrastructure, factories, retail and agriculture. The total amount of announced investments is $ 145 billion. The total amount of the signed investments during the summit totaled$ 60 billion. MGM Financial & Banking Consultants Investment Banking Division B2111 Smart Village – Cairo Alex Desert Road – Egypt Tel: +20 23 53 70662 Fax: +20 23 5370663 www.mgm.com.eg Economic Summit Summary as per project & country The below table summaries most of the investments discussed and/or signed in the summit Project Parties Involved Country Sector Amount Oasis October Palm Hills & Abar UAE Real Estate $ 20 bn Power Plants Siemens Germany Energy $ 10 bn Retail Majid al Futtaim Group UAE Retail $ 700 mn Diversified projects Omar AL Futtaim group UAE Diversified $ 3.5 bn Gas project British Petroleum United Kingdom Energy $ 12 bn Cairo's New Capital UAE UAE Real Estate $ 45 bn Gas project ENI Italy Energy $ 5 bn Solar power and other projects Orascom Construction Egypt Energy & Other $ 500 mn Manufacturing & supply chain Coca Cola United States Food & Beverage $ 500 mn Manufacturing & supply chain PepsiCo United States Food & Beverage $ 500 mn Manufacturing General Electric United States Engineering $ 200 mn Energy project Dana Gas UAE Energy $ 350 mn A Logistics center UAE Logistics $ 6 bn Real Estate projects Al Suwaidan Heliopolis for Housing and Development Egypt Real Estate $ 800 mn benzoin distillation unit Islamic Development Bank Saudi Arabia Energy $ 200 mn Poverty Elimination projects Sharm El Sheikh Airport Development Egyptian-Saudi Electricity Connection World Bank N/A Socio-Economic $ 400 mn Islamic development bank Saudi Arabia Transportation $ 227 mn Islamic development bank Saudi Arabia Saudi Arabia $ 800 mn Petroleum Projects Islamic development bank Saudi Arabia Saudi Arabia $ 3.5 bn Logistics project DHL Germany Logistics $ 500 mn Energy Kuwait Energy Kuwait Energy Mutual agreement Power Project ACWA Power Saudi Arabia Mutual agreement Loans & General investments Saudi Arabia Saudi Arabia Loans & General investments Kuwait Kuwait Loans & General investments UAE UAE Loans & General investments Oman Oman Electricity Loans & General investments Loans & General investments Loans & General investments Loans & General investments $ 4bn $ 4 bn $ 4 bn $ 500 mn
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