Report
Jaap Meijer
EUR 182.72 For Business Accounts Only

Egypt: assessing the impact of price/rate hikes and devaluation

​ Blockbuster changes in 2016 promise structural change, while raising

inflation and interest rates in the short term

ï‚· 13% VAT rate in FY 16/17, 14% in FY 17/18, replacing GST of 10%, barely

affects the corporate sector, most of costs to be borne by consumer

ï‚· Expect an aggressive devaluation to lift FX overhang on most sectors.

ï‚· We forecast growth of 4-5% as lower consumption growth is

counterbalanced by better investment growth, especially in H2 FY 16/17

ï‚· We see banks as best positioned (higher interest rates) and cement worst

(higher import costs from energy price hikes and import costs)

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Jaap Meijer

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