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Cityscape Egypt Offers Attractive Opportunities to End Market Recession

Cityscape Egypt exhibition (Asharq Al-Awsat)
Cityscape Egypt exhibition (Asharq Al-Awsat)
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Cityscape Egypt Offers Attractive Opportunities to End Market Recession

Cityscape Egypt exhibition (Asharq Al-Awsat)
Cityscape Egypt exhibition (Asharq Al-Awsat)

Egypt’s property exhibition, Cityscape Egypt, concluded its events on Saturday after a huge turnout of visitors wanting to seize the chance of the various offers presented by the development and real estate companies.

The three-day exhibition was held at the Egypt International Exhibition Centre (EIEC), with the participation of about 65 exhibitors.

The managing director of Al-Futtaim Real Estate Group, Ashraf Ezzeddine, indicated that the real estate market is regaining momentum, noting that the company's operations in the Egyptian market were not affected by the coronavirus pandemic.

He indicated that the company increased the installment period from five years to eight years in some projects to keep pace with the market.

Ezzeddine told Asharq Al-Awsat in an exclusive interview, that Al-Futtaim group intends to pump over EGP5 billion in investments in its projects during the year 2021, and that it is considering a study to "build about 30 palaces, with an area of 3000 meters for each, in the Cairo Festival City project in the 5th Settlement, which may start in 2022.”

The market was able to overcome its first shock caused by the spread of the virus, according to Ezzeddine, who believes that everyone has learned their lesson.

“The repercussions of the coronavirus do not affect the company's business and basic needs must be met, especially that of housing units.”

He pointed out that the company's sales to Arabs amounted to about 20 percent, stressing that there are no plans to invest outside Cairo at the present time.

Cairo Festival City participated in the exhibition with the CFC Club, Oriana, Aura, and Podium projects.

Meanwhile, Mardev Developments began the construction of the Menorca project in the new administrative capital, with a total investment of about EGP1.5 billion.

Mardev’s Chairman, Zohdy Zahran explained that the company provides different payment systems that suit all market requirements.

Speaking on the sidelines of the exhibition, Zahran explained that the company aims to pump EGP500 million of the EGP1.850 billion investments during the fiscal year 2021.

Also, Seldar Misr launched at the exhibition “al-Jazi Egypt '' project planned over two separate plots of land with a total area of 63 acres, and an investment cost of EGP7 billion.

The entire project is self-financed and expected to be finalized by the end of 2022.

The Chairman of Seldar Egypt, Tarek El-Sayed, announced that the project was developed by one of the company’s subsidiaries, Gulf Building and Construction.

The company launched the JW Marriott Residences New Cairo, al-Jazi Gardens, and all the units have been marketed and sold within three days only, indicated Sayed.

He added that 95 percent of al-Jazi Egypt had been completed in New Cairo, and all of the housing units of the first phase of the project were sold. He indicated that the company has spent about EGP4 billion so far.

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Business

Gulf Markets Hold Firm Despite Tensions, US Rate Hike

A man watches stocks fall in the Kuwaiti market (AFP)
A man watches stocks fall in the Kuwaiti market (AFP)
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Gulf Markets Hold Firm Despite Tensions, US Rate Hike

A man watches stocks fall in the Kuwaiti market (AFP)
A man watches stocks fall in the Kuwaiti market (AFP)

Most Gulf stock markets advanced on Thursday despite mounting geopolitical tensions, as investors weighed the fallout from the US Federal Reserve’s first interest-rate hike in more than three years.

Most Gulf Cooperation Council central banks raised their key rates after the Fed lifted rates by 25 basis points on Wednesday.

Most Gulf currencies are pegged to the US dollar, except the Kuwaiti dinar, which is tied to a dollar-dominated currency basket. Gulf monetary policy therefore tends to track the Fed’s moves.

The Saudi Central Bank, known as SAMA, raised its repo and reverse repo rates by 25 basis points to 4.50% and 4.00%, respectively.

The Central Bank of the United Arab Emirates lifted the base rate on its overnight deposit facility by 25 basis points to 3.90%, while the Central Bank of Oman raised its repo rate by the same amount to 4.50%. Qatar Central Bank also increased its key rates by 25 basis points.

Subdued shipping through the Strait of Hormuz continued to weigh on investor sentiment, with attention turning to US President Donald Trump’s expected meeting with Gulf leaders next week.

Strong domestic fundamentals could continue to support the markets despite geopolitical pressures, said Milad Azar, a market analyst at XTB MENA.

Hopes that the Fed’s move would begin to rein in inflation helped calm a global bond selloff and curb a sharp recent rise in yields.

Mixed market performance

Saudi Arabia’s benchmark index surrendered early gains to close flat. Saudi National Bank fell 1.3%, while Saudi Aramco lost 0.5%.

Dubai’s main index gained 0.3%, helped by a 0.5% rise in Emaar Properties.

Abu Dhabi climbed 0.5%, while Qatar added 0.2%.

Bahrain fell 0.3% and Kuwait lost 0.4%, while Oman advanced 0.7%.

Outside the Gulf, Egypt’s blue-chip index rose 1.2%, supported by a 0.6% gain in Commercial International Bank.

Market closings:

Saudi Arabia: Flat at 10,778 points.

Abu Dhabi: Up 0.5% at 10,161 points.

Dubai: Up 0.3% at 5,987 points.

Qatar: Up 0.2% at 9,659 points.

Egypt: Up 1.2% at 55,499 points.

Bahrain: Down 0.3% at 1,924 points.

Oman: Up 0.7% at 7,603 points.

Kuwait: Down 0.4% at 9,244 points.

Business

Syrian Energy Minister Revises Fuel Prices, Announces Subsidized Diesel

A fuel station in Damascus displays prices following a recent increase that sparked protests in several Syrian cities. (Reuters)
A fuel station in Damascus displays prices following a recent increase that sparked protests in several Syrian cities. (Reuters)
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Syrian Energy Minister Revises Fuel Prices, Announces Subsidized Diesel

A fuel station in Damascus displays prices following a recent increase that sparked protests in several Syrian cities. (Reuters)
A fuel station in Damascus displays prices following a recent increase that sparked protests in several Syrian cities. (Reuters)

Syrian Energy Minister Mohammed al-Bashir announced on Thursday that subsidized diesel would be sold at 115 Syrian pounds per liter, saying the ministry had approved practical measures to ease the burden on citizens while maintaining supplies.

Speaking at a news conference with Syrian Petroleum Company Chief Executive Youssef Qablawi on developments in the oil sector, Bashir said several grades of diesel would be offered at different prices and specifications to reduce living costs.

He also said several small local refineries would be restarted under the management and supervision of the Syrian Petroleum Company, with a combined capacity of up to 35,000 barrels of crude oil per day.

The Permanent Committee for Pricing Petroleum Products and Mineral Resources issued a temporary price list for petroleum products on Sunday. Syrians were caught off guard by the decision, which raised prices by between 25% and 40%, reflecting regional and global developments.

The decision triggered widespread public anger, particularly in eastern and northern Syria, where residents face complex economic, administrative, security and living conditions. Concerns have mounted that higher fuel prices will further increase already steep everyday expenses.

Bashir said at the news conference, carried by the state news agency SANA, that he met President Ahmed al-Sharaa on Wednesday to discuss practical alternatives.

They approved a proposal to offer several grades of diesel at different prices and specifications according to their intended use, rather than limiting the market to a single, high-grade and costly product, he said.

“We recognize that higher energy prices have a direct impact on people’s livelihoods and on the agricultural, production and service sectors,” Bashir said.

“Our responsibility is not limited to securing petroleum products. It also includes seeking solutions that ease the burden while maintaining continuity of supply.”

Bashir said subsidized diesel priced at 115 Syrian pounds per liter would be allocated primarily for heating, agriculture and groups eligible for government support.

Diesel meeting specifications suitable for transportation and for production and service-sector uses would be offered at 150 pounds per liter, he added.

The minister said crude petroleum products cost less than finished products. Syria spends about $140 million a month purchasing gas for power generation to meet the needs of its electricity plants, he said.

Syria imports 5.3 million cubic meters of gas per day from several countries, Bashir said, adding that the state treasury could not bear additional costs.

He said accumulated electricity-sector debt and losses from petroleum products had affected investment projects and capital spending. Unpaid electricity bills and illegal connections to the power grid had also increased losses at the Syrian Electricity Company.

“The state has adopted a policy of moving from a socialist economy to a free-market system, and we recognize the difficulties that this entails,” Bashir said.

“The return of the Baniyas refinery to operation and an increase in domestic production will have a positive effect on petroleum product prices.”

Qablawi said the Syrian Petroleum Company had begun preparing an implementation plan for the measures after discussing the relevant mechanisms with the Energy Ministry.

The company had spent the previous period studying the technical and operational details and working to remove potential obstacles to ensure smooth implementation, he said, according to Syria’s state-run Al-Ikhbariya television.

Qablawi said he hoped implementation would begin in the coming days, depending on technical and administrative readiness, adding that further details would be announced gradually.

Only designated fuel stations in the provinces would sell products processed by the small local refineries, he said.

The pricing committee issued its new temporary price list on Sept. 13.

The Energy Ministry later said the increase in Syrian petroleum product prices resulted from an exceptional rise in global procurement costs coinciding with a comprehensive overhaul of the Baniyas refinery.

It said the adjustment was temporary and intended to maintain supplies and ensure that petroleum products remained available on the domestic market.

Syria has been affected by higher global procurement costs for gasoline, diesel and fuel oil at a time when the Baniyas refinery is undergoing an overhaul expected to last about two months, temporarily increasing the country’s reliance on imported finished products.

Business

Gold Rises as Traders Reassess Positions after Fed Rate Hike, Oil Rally Eases

Gold bracelets and necklaces displayed for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
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Gold Rises as Traders Reassess Positions after Fed Rate Hike, Oil Rally Eases

Gold bracelets and necklaces displayed for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale at a gold shop in Istanbul's Grand Bazaar (AFP)

Gold climbed more than 1% on Thursday as a softer dollar and easing oil prices lent support, while investors assessed the Federal Reserve's latest rate hike and prospects for further policy tightening.

Spot gold was up 1.2% at $4,312.05 per ounce, as of 0848 GMT, after hitting a near six-week low on Wednesday. US gold futures for December delivery were down 0.8% ‌to $4,351, said Reuters.

"I suspect ‌the market may have gotten itself over ‌positioned on ⁠the expectation of ⁠a rate hike, as the likelihood grew. And now that it's happened, those positions are being squared out," said independent analyst Ross Norman.

Meanwhile, the dollar eased from a seven-week high, making greenback-priced bullion more affordable for holders of other currencies, while oil prices extended their fall on diminishing fears of supply disruptions.

The Fed raised ⁠rates on Wednesday and flagged more hikes ‌in the coming months, with new ‌chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration's ‌inability so far to control inflation that policymakers worry could ‌worsen.

Although gold is considered an inflation hedge, a high interest rate environment reduces its appeal by boosting the attractiveness of interest-bearing assets.

The Bank of England looks set to keep rates on hold on Thursday, while ‌the Bank of Japan could raise interest rates to a 31-year high on Friday.

"The Fed ⁠is tightening ⁠policy at a time when inflation is being driven primarily by energy prices and supply shocks, meaning higher interest rates could weaken growth without quickly resolving all price pressures," said Linh Tran, Market Analyst at XS.com.

"This environment remains supportive of demand for gold as a hedge, particularly while geopolitical uncertainty persists."

Spot silver rose 1.4% to $63.83 per ounce, platinum firmed 1.2% to $1,772.19 and palladium climbed 1.8% to $1,291.89.