Egypt will set up its first sovereign wealth fund with authorised capital of 200 billion Egyptian pounds ($11bn) amid plans to privatise state-owned companies.
The Egyptian parliament passed a law on Monday to establish the Egypt Fund to manage state assets, according to state agency MENA. The fund will start with paid-up capital of 5bn Egyptian pounds (Dh1bn) , with 1bn pounds to be transferred from the treasury.
The fund will focus on investments in sectors including petrochemicals, mining, tourism and pharmaceuticals, the statement said. It did not provide a timeline for when the fund would reach the planned 200bn pounds.
The new wealth fund is the latest in a series of government measures to revive investment and economic growth, which slowed down following the 2011 revolution that ousted President Hosni Mubarak. Floating the Egyptian pound and slashing energy subsidies are part of tough economic reforms tied to a three-year $12bn loan programme from the International Monetary Fund. The IMF has urged Egypt to reduce the role of the public sector in favour of private sector-led growth. Egypt plans to raise up to 100bn pounds by selling minority stakes in at least 20 state-owned enterprises on the bourse as part of a plan to boost state finances.
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On Tuesday, Egypt named the first five public companies to offer their shares on the stock exchange in 2018. The firms are Alexandria Mineral Oils Company, Eastern Tobacco, Alexandria Container and Cargo Handling, Abou Kir Fertilizers, and Heliopolis Housing, according to an Egyptian cabinet statement.
"Our reading is that the setting up of the ‘Egypt Fund’ marks the first step towards divesting some of the state’s stakes in public-sector enterprises," Bilal Khan, a senior economist for the Middle East, North Africa and Pakistan at Standard Chartered, said. "However, it is still early days and much will depend on how quickly policy-makers can turn these plans into action."
The near-term growth outlook for the most populous Arab country is “favourable”, driven by a recovery in the tourism sector and rising natural gas production, the IMF said in a separate report earlier this month.
“The economic situation has continued to improve during 2018,” David Lipton, the IMF’s first deputy managing director and acting chair, said. “Strong programme implementation and generally positive performance has been instrumental in achieving macroeconomic stabilisation.”
MATCH INFO
Uefa Champions League semi-final:
First leg: Liverpool 5 Roma 2
Second leg: Wednesday, May 2, Stadio Olimpico, Rome
TV: BeIN Sports, 10.45pm (UAE)
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
COMPANY PROFILE
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Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
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Types of bank fraud
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Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
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Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
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Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
Top 10 most competitive economies
1. Singapore
2. Switzerland
3. Denmark
4. Ireland
5. Hong Kong
6. Sweden
7. UAE
8. Taiwan
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Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
Types of policy
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