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There is a noticeable lull this week with little economic and stock market news making the rounds: our issue today is compact, packing updates on remittance inflows recorded during July, updates from Sodic, and more. Let’s dive in.
Remittances rise for fifth straight month in July
According to Central Bank Data, remittances flowing into the economy from Egyptian expats reached some USD 3 billion in July, representing a 86.8% YoY rise and a 15.9% month-on-month increase. This marks the fifth 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 Egyptian 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:
During the first seven months of the year, remittance inflows saw a 32.4 % hike to approximately USD 15.5 billion, the CBE notes.
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.)
In line with state targets:
One of Egypt’s main sources of foreign exchange, the government expects remittances to increase by 10% annually to ultimately reach USD 53 billion by 2030.
SODIC secures EGP 4 billion loan from CIB & Banque Misr
Sixth of October Development & Investment Company (Sodic) inked a long-term syndicated loan agreement with Banque Misr and the Commercial International Bank (CIB) worth EGP 4.14 billion, it said yesterday in an EGX disclosure.
The details:
The loan will be used to partially finance the remaining costs of its 464-acre development in New Zayed, which includes its Karmell and Vye projects.
The company says the new credit line will also help strengthen its earnings and reduce its debts, which totaled EGP 3 billion by June 30.
Remember, the company had a good 1H:
The company recorded an 87 YoY rise in net profit to EGP 626 million during the period from January to the end of June 2024. Its revenues also saw a 35% YoY jump in 1H to EGP 3.94 billion.
And is making moves:
Earlier this month, Sodic began construction on its Ogami project in Ras El Hekma. The project— which will be developed at the head of 800 meters of beach front — spans 440 acres and features a Nobu hotel, restaurant, and residences.
The company also signed an agreement with Marriott back in June to build Egypt’s first Tribute Portfolio Hotels.
Sodic will cut the ribbon on a 170-key Tribute Hotel in Sheikh Zayed three years from now, and will open the doors to another Tribute hotel with a 180-room capacity in the North Coast in June of 2029.Â
What else is clapping?
-  Egypt’s Minister of Investment and Foreign Trade said in a meeting with the EGX’s Chairman that the government is studying canceling capital gains taxes from share sales on the Egyptian Stock Exchange. Proceeds from the sale of listed shares on the EGX were planned to be subject to a 10% capital gains tax in 2022, but the plan has not come into effect yet.
- Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) announced yesterday the establishment of its new subsidiary Glow, which will specialize in the development and production of freely priced cosmetics and cosmeceuticals. Rameda says its new subsidiary’s operations  will allow it to tap into high-growth markets and generate substantial returns with minimal capex expenditure.
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