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    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

    Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

    Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

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      Aramco, DHL to build procurement and logistics hub for the energy sector

      Aramco, DHL to build procurement and logistics hub for the energy sector

      Second runway of Muscat airport to be ready this year

      Second runway of Muscat airport to be ready this year

      UAE-Oman rail network expected to bring about new era of collaboration and growth

      UAE-Oman rail network expected to bring about new era of collaboration and growth

      Saudi Arabia issues 124 licenses to industrial units in different sectors in January

      Saudi Arabia issues 124 licenses to industrial units in different sectors in January

      Qatar’s economic growth is strong: ICAEW

      Qatar’s economic growth is strong: ICAEW

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

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      Saudi Arabia real estate: PIF-backed firm signs largest deal valued at $1.5bn

      Saudi Arabia real estate: PIF-backed firm signs largest deal valued at $1.5bn

      Construction works of Egypt’s first eco-sustainable industrial complex kick off

      Construction works of Egypt’s first eco-sustainable industrial complex kick off

      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

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        Oman signs $20bn hydrogen deals

        Oman signs $20bn hydrogen deals

        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

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          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

          Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

          Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

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        • Agrofood
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          • Agriculture
          • Environment
          • Food
          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

          Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics
            Aramco, DHL to build procurement and logistics hub for the energy sector

            Aramco, DHL to build procurement and logistics hub for the energy sector

            Second runway of Muscat airport to be ready this year

            Second runway of Muscat airport to be ready this year

            UAE-Oman rail network expected to bring about new era of collaboration and growth

            UAE-Oman rail network expected to bring about new era of collaboration and growth

            Saudi Arabia issues 124 licenses to industrial units in different sectors in January

            Saudi Arabia issues 124 licenses to industrial units in different sectors in January

            Qatar’s economic growth is strong: ICAEW

            Qatar’s economic growth is strong: ICAEW

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Saudi Arabia real estate: PIF-backed firm signs largest deal valued at $1.5bn

            Saudi Arabia real estate: PIF-backed firm signs largest deal valued at $1.5bn

            Construction works of Egypt’s first eco-sustainable industrial complex kick off

            Construction works of Egypt’s first eco-sustainable industrial complex kick off

            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Oman signs $20bn hydrogen deals

              Oman signs $20bn hydrogen deals

              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Trending Tags

              • Hospitality
                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

                Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

                Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

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              IMF support boosts investor confidence in Egypt

              Oxford Business Group

              February 3, 2017
              in Economy
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              More details have emerged regarding Egypt’s ambitious program of economic reform, as the country remains on course to receive the next allocation of a $12bn loan from the IMF to support its efforts.

              On January 18 the IMF mission chief for Egypt, Chris Jarvis, told a news conference that the country was set to receive the $1.25bn second tranche of its three-year loan from the fund, pending a review planned for the end of February.
               
              “Although [economic indicators] for December have not been published yet, early indications are that the benchmarks for the next tranche of the loan are likely to be met,” Jarvis said.

              The IMF released the first tranche of $2.75bn immediately after approving the loan in November; however, details of the agreement and an expected reform timetable were not made available at that time.

              Reforms required
              Jarvis’ comments came at the release of the IMF staff report on Egypt’s request for the extended fund facility (EFF), which outlines in full the aims of the development program.
               
              According to the document, the loan instalments are contingent on the government acting to tighten Egypt’s fiscal position, improve the business environment and liberalize the economy.

              To this end the government has promised to ease capital controls by June, scrapping a $50,000 limit on non-priority imports and a $100,000 cap on the transfer of money abroad by individuals.
               
              The move to impose a ceiling on transactions had originally been undertaken to curb an unregulated parallel exchange system that had arisen following the political turbulence of 2011. With dollar demand eventually outstripping supply by the end of 2013, businesses were resorting to the black market to access dollars.

              The IMF loan was also contingent on Egypt enacting a more flexible exchange rate. The Central Bank of Egypt (CBE) responded by floating its currency in early November to bring foreign capital back to the country and return foreign currency trading to the formal banking sector.
               
              The CBE had held the pound steady at LE8.80:$1 from March; however, the local currency quickly lost half its value against the dollar after the devaluation, reaching a low of LE19.64:$1 on December 20.

              This month Jarvis said that the Egyptian pound had reached a “genuine equilibrium exchange rate”, even though it had dropped by more than expected following the currency’s flotation.
               
              Tighter monetary policy is expected to help the CBE meet the IMF’s 7% inflation target by the end of the IMF program, with inflation projected to ease in the second half of the year. The CBE has pledged to move towards an inflation-targeting monetary policy as opposed to its current exchange rate-based model. The shift is timely, as annualized core inflation jumped above 25% in December, driven in large part by devaluation of the pound.

              Early progress
              In addition to the CBE’s adoption of a flexible exchange rate regime, other critical reforms were undertaken before the EFF was authorized last year.

              In mid-2016 the government approved the introduction of a value-added tax, set at 13% in FY 2016/17 and rising to 14% in FY 2017/18. As highlighted in the IMF staff report, such moves should help increase tax revenues by 2.5% over the course of the program.

              A fuel price hike of 50% was also enacted in early November to help reduce public outlays by the 3.5% targeted under the strategy.
               
              This dovetails with the government’s aim of lowering the fiscal deficit from an estimated 10.1% of GDP in FY 2016/17 to 8.5% the following year, Amr El Garhy, minister of finance, highlighted earlier this month. Public debt, meanwhile, is projected to ease from 93.8% to 89.1% of GDP over the same period.

              Foreign inflows
              The conditions attached to the loan and signs that reforms are taking shape have helped to boost investor confidence in Egypt.

              “The IMF loan has already shown its importance through the increased dollar inflows that followed on the heels of the deal,” Karim Kamel, vice president for consumer goods company P&G, told OBG. “While the $12bn will increase investors’ confidence, the more significant impact will come from the government’s implementation of the associated reforms.”

              Even before the IMF deal, following the pound’s devaluation, Egypt secured $2bn worth of funding from international banks in the form of dollar-denominated bonds. This saw Egypt’s blue chip index rise by 4.5%, with market data showing a surge of activity from foreign investors.
               
              Speaking to media earlier this month El Garhy said the government expected foreigners to purchase up to $11bn in T-bills and T-bonds and stocks in the coming period.
              Oxford Business Group
              3 February

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