Egypt Registers Primary Surplus of $5.2 Billion

Monthly inflation rate in Egypt fell below zero for the first time since December 2021. (Reuters)
Monthly inflation rate in Egypt fell below zero for the first time since December 2021. (Reuters)
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Egypt Registers Primary Surplus of $5.2 Billion

Monthly inflation rate in Egypt fell below zero for the first time since December 2021. (Reuters)
Monthly inflation rate in Egypt fell below zero for the first time since December 2021. (Reuters)

Egypt registered a primary surplus of EGP98.5 billion ($5.23 billion) in the 2021/22 financial year to June 30, the country’s finance ministry said on Thursday.

The overall budget deficit stood at 6.1% of GDP, the statement added.

Meanwhile, Egypt’s annual urban consumer inflation slowed to 13.2% year-on-year in June from 13.5% in May, data from the state statistics agency CAPMAS showed on Thursday.

Month on month, headline inflation eased 0.1%, compared to a 1.1% increase in May.

The sharpest annual price increases were in the food and drink, recreation, and restaurant and hotel sectors, according to CAPMAS.

The agency attributed the decline to an 18.8% drop in vegetable prices, and a 10.5% drop in fruit prices. The broader food and beverage index recorded -2.2% yoy in the country as a whole, and -1.8% in the cities.

Egypt, one of the world’s biggest wheat importers, has been hit by the knock-on effect of global commodity price rises that accelerated with Russia's invasion of Ukraine, though the government has absorbed some of that impact.

It has been working to mitigate the war’s effect on the tourism sector, knowing that Russian and Ukrainian tourists represented almost one third of the total number of visitors.

The Central Bank targets an inflation rate between 5% and 9%, but it said when it raised interest rates by 200 basis points in May that it would temporarily tolerate inflation above that level.

The committee kept rates unchanged in June, and its next meeting is scheduled for Aug. 18.

“Prices are somewhat stable globally as oil prices saw a fall recently,” said Noaman Khalid, an economist at Arqaam Capital. “Also, there were no commodity price hike decisions from the Egyptian government.”

Inflation trends in coming months would depend on whether Egypt would need to allow commodity prices to rise under the terms of an expected deal with the International Monetary Fund (IMF), he said.



Saudi Arabia’s flynas Successfully Completes Final Allocation of IPO Shares

A Saudi flynas aircraft. (Asharq Al-Awsat) 
A Saudi flynas aircraft. (Asharq Al-Awsat) 
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Saudi Arabia’s flynas Successfully Completes Final Allocation of IPO Shares

A Saudi flynas aircraft. (Asharq Al-Awsat) 
A Saudi flynas aircraft. (Asharq Al-Awsat) 

Saudi Arabia's flynas has successfully completed the final allocation process for its initial public offering (IPO) shares, setting a minimum allotment of 10 shares for each individual subscriber.

This IPO is considered the first of its kind for a Gulf airline in nearly 20 years. flynas will become the third Gulf airline to go public, following the listings of Air Arabia in the UAE and Jazeera Airways in Kuwait.

In a statement, the company confirmed that any surplus subscription funds - if any - will be refunded to individual subscribers no later than June 5. The company will be listed on the Saudi stock exchange once regulatory procedures are completed.

Saudi Minister of Transport Saleh Al-Jasser stated on the X platform that the IPO of the first Saudi airline on the stock market, along with the high oversubscription rates, “reflects the high level of confidence in the Kingdom's aviation sector, which is witnessing remarkable developments and unprecedented annual growth rates, increased air traffic and connectivity, as well as significant investments in infrastructure, all supported by Prince Mohammed bin Salman, Crown Prince and Prime Minister.”

“Congratulations to flynas on the successful IPO and listing. The aviation sector will continue to enhance its developmental role in supporting the national economy and expanding investment and growth opportunities, in partnership with the private sector,” he added.

The individual investor subscription period, which began on May 28 and lasted for three days, saw the participation of 666 investors, with a final offering price of 30 riyals per share.

Total demand from this segment reached approximately SAR 2.868 billion ($746.5 million), resulting in a coverage ratio of 349.70%.

Meanwhile, flynas reported a net profit of SAR 148 million ($39.4 million) for the first quarter of this year, marking a 1% decrease compared to the net profit of SAR 149 million recorded in the same period last year. However, the company's adjusted net profit increased by 78%.

In a statement, the company attributed the decline in profit to exceptional gains of 66 million riyals recorded in Q1 2024 from a sale and leaseback transaction, which did not recur in the current quarter.

Operating profit rose by 78%, and the company generated revenues of SAR 1.8 billion in the first quarter of 2025, a 6% increase, supported by improved ticket yields and growth in ancillary revenues.

The company stated that its revenue increased by 5% to reach SAR 1.8 billion during the first three months of 2025, attributing the growth to stronger ticket yields and increased ancillary income.