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 Market Rises as Investors Absorb Tariff Shock

Entrance to the Tadawul Tower in Riyadh’s financial district (Asharq Al-Awsat)
Entrance to the Tadawul Tower in Riyadh’s financial district (Asharq Al-Awsat)
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Saudi Market Rises as Investors Absorb Tariff Shock

Entrance to the Tadawul Tower in Riyadh’s financial district (Asharq Al-Awsat)
Entrance to the Tadawul Tower in Riyadh’s financial district (Asharq Al-Awsat)

Gulf markets trimmed their losses on Monday, with the Saudi stock index erasing earlier declines and turning positive, driven by gains in major stocks such as ACWA Power and Aramco.

Despite a sluggish start, influenced by tariff concerns, the Tadawul index managed to overcome these challenges, closing 1.1% higher.

In contrast, other Gulf bourses saw limited declines, with Qatar and Kuwait exchanges registering drops, while the Muscat bourse also experienced a slight dip.

These movements come amid a broader retreat in global stock markets, still reacting to US President Donald Trump’s recent decision to impose tariff hikes.

The Saudi stock market rose 1.1%, closing at 11,194 points, up 117 points. The market recorded active trading, with total turnover reaching approximately 10.6 billion riyals ($2.8 billion), the highest since December 2024.

Despite a sharp decline of over 400 points earlier in the session, which brought the market to a low of 10,657 points, it successfully recovered to end the day higher. On Sunday, the market had dropped by more than 800 points.

ACWA Power led the gainers, jumping 6.8% to close at 331 riyals. Aramco shares also rose 1%, reaching 25.25 riyals.

Meanwhile, Al Takaful Cooperative saw a 5% increase, closing at 131 riyals, following the company’s announcement of cash dividends for shareholders.

These movements come as markets absorb the shock of the tariff hike, with Gulf financial markets showing mixed performance following sharp declines in reaction to Trump’s decision to raise tariffs.