Pre-Trading Thoughts

The government will announce the revamped export subsidy program within weeks, Prime Minister Moustafa Madbouly said during his weekly presser yesterday The three-year program is expected to come into effect with the new fiscal year on 1 July.

Egypt’s interest payments on debt rose by 18.4% to EGP 939 bn in 1H FY 2024-25, according to the Finance Ministry’s Monthly Finance Report. Interest payments also made up 5.5% of GDP during the period, according to the ministry’s General Economic and Financial Outlook.

GDP growth almost doubling y-o-y in 2Q FY 2024-25, coming in at 4.3% for the three-month period, up from 2.3% during the same period last year, according to a statement from the Planning and International Cooperation Ministry. The figures mark an uptick from the slowdown seen in 2Q FY 2023-2024, which saw growth decline sharply from the 3.9% recorded a year earlier on the back of global economic headwinds and domestic challenges. The Planning Ministry is projecting GDP growth of 4.0% for FY 2024-25, supported by private sector reforms and gradual economic recovery

Cabinet approves the draft budget for the fiscal year 2025-2026. The state is targeting:

• a primary surplus of EGP 795 bn — or 4% of GDP.
• reducing the public debt to 82.9% next fiscal year
• trimming the debt-to-GDP ratio to below 92%.
• a 19% y-o-y jump in revenues to EGP 3.1 tn and a 18% y-o-y rise in expenses to EGP 4.6 tn.

Alstom’s invests EUR 80 mn in a manufacturing complex in Borg Al Arab, which will include a plant to produce electrical systems and railway components and another to produce units for the metro, monorail, high-speed train, and LRT.

The Egyptian Tax Authority (ETA) is working on sector-specific tax guidelines across a number of sectors in Egypt’s economy as part of an effort to eliminate tax disputes in the future.

Chinese office supplies and stationary manufacturer Deli Group is planning to establish a USD 200 mn industrial complex in the Tenth of Ramadan City, according to an Industry Ministry statement.

HDBK Annual General Meeting (AGM) has approved the distribution of cash dividends amounting to EGP5.00 per share. The distribution date is set for April 15, and the record date is April 10.

SAUD to distribute cash dividends of EGP0.850 per share on April 16, 2025, with record date of April 13, 2025. 

The FRA approves BTFH's request to the issuance of an invitation to existing shareholders to subscribe to the remaining 424.22 million shares. 

MCQE’s general assembly approved a cash dividend distribution of EGP1.00/share for FY24, to be paid over two tranches. The first tranche will be disbursed in June, followed by the second tranche in November.