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Remittances rise for sixth straight month in August
According to Central Bank Data, remittances flowing into the economy from Egyptian expats reached USD 2.6 billion in August, representing a 65.5% YoY rise. This marks the sixth consecutive month of growth for a country that saw a significant decline last year. |
Refresher:
Remittance inflows significantly decreased in 2023, seeing a 30.8% YoY dip to USD 22.1 billion as Egyptians residing abroad held onto their money or transferred it back using unofficial channels. The fall in volumes came on the back of the country’s acute FX liquidity crunch at the time.
So far this year:
Data from the Central Bank of Egypt showed that remittances over July and August 2024 saw a 76.2% increase, recording about USD 5.6 billion (compared to about USD 3.2 billion during the same period the year before).
The volume increased during the first eight months of the current year 2024 at a rate of 36.4% reaching about USD 18.1 billion (compared to about USD 13.3 billion during the same period in 2023
Going forward:
Fitch projected in its latest country report for Egypt that inbound remittance inflows will rise 31% YoY this fiscal year to USD 28.9 billion (c. 9.1% of GDP.) |
Orascom Development reports 10% profit uptick in 9M
Despite EGP 2.1 billion in FX losses, Orascom Development Egypt (ORHD) achieved a net profit of EGP 2.23 billion, reflecting a 10% YoY growth rate, it said in its latest earnings release. |
The details:
The firm’s real estate sales reached a record EGP 23.1 billion, marking a 77% increase. ORHD’s hospitality portfolio experienced a 29.1% increase in revenues, reaching EGP 2.9 billion despite geopolitical challenges throughout the Middle East
Its overall revenues surged by 49% to EGP 15.5 billion.
The share of the parent company’s shareholders in the profits during the period amounted to about EGP 1.83 billion, compared to 1.8 billion pounds during the same period last year.
This comes after a strong 1H;
The company recorded a net profit of EGP 942.7 million in the first half of 2024. ORHD’s bottom-line, after excluding currency exchange losses, soared 135.7% YoY to reach EGP 3.2 billion.
Remember:
ORHD was among the five firms delisted in August from the EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange) after the bourse completed its semi-annual periodic review of market indices. |
Madinet Masr (Masr) saw its income increase by 87.7% YoY during the first nine months of 2024 to EGP 2.52 billion. The company’s sales during the period rose to EGP 7.45 billion, compared to sales of EGP 4.69 billion in the same period last year. |
Remember, the company has been making moves:
Through its subsidiary Mink for Real Estate Development, Masr has launched its “Butterfly” project in Mostakbal City with contract sales of EGP 64 billion back in September.
In July, Masr announced the launch of its EGP 10 billion Esse Residence project in Sarai. The project, which spans 400,000 square meters, is expected to be completed in four years and the company is targeting revenues of EGP 18.2 billion from the development.
That same month, the company announced a partnership with Heliopolis For Housing & Development for construction of a residential project spanning 491 feddans in New Heliopolis in eastern Cairo. The project is expected to add EGP 194.67 billion in revenues over 12 years, with Madinet Masr holding a 63.5% stake in it.
And had a great 1H:
Masr saw its net income surge 151% YoY in the first six months of the year to EGP 1.45 billion, and almost doubled its revenues during the period, recording a 96.9% YoY rise to EGP 4.47 billion. |
E-Finance for Digital and Financial Investments recorded a 23.3% YoY rise in net income after non-controlling interest (NCI) during the first nine months of the year to EGP 1.43 billion. The company’s revenues also rose to EGP 3.44 billion, compared to EGP 2.76 billion during the same period in 2023. |
Ready for an expansion in KSA and beyond:
The firm’s CEO told Asharq Business in August that E-finance has sufficient dollar liquidity to move forward with its expansion strategy in the Saudi market, which it initiated by opening an office in Riyadh. Egypt’s foreign currency crunch had hindered its plan to apply for a financial services license in the Kingdom. However, the devaluation of the EGP resolved the issue, the company’s chief said. In a bid to offer its services beyond Egypt and KSA, E-Finance is also collaborating with global companies including “Visa” and “Mastercard” on two projects, one in the African market and another in yet undisclosed Arab countries, he said. |
What else is clapping?
- United Bank has established a preliminary price range of EGP 12.70-15.60 per share for its upcoming public debut on the EGX, potentially generating up to EGP 5.1 billion.
- CI Capital yesterday launched Egypt’s first sector fund. The specialty fund – operating across the real estate, technology & communications, export, and consumer goods sectors — is targeting investors who want to diversify investments across various stocks within the aforementioned industries.
- El Shams Housing & Urbanization company recorded a 3.4% YoY rise in net profits during 9M to EGP 84.3 million. Its revenues declined during the nine months to EGP 78.65 million compared to 175.3 million pounds in the same period last year, however.
- Fitch Solutions projected in a new report that pharmaceutical sales in Egypt will grow to EGP 152.8 billion in 2024.
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