Emirates NBD’s Egyptian asset to offer Islamic products, expand into real estate and tourism
BNP Paribas Egypt, which is currently 95.2% owned by Emirates NBD (EMIRATES UH, Price: AED5.25, FV: AED4.30, Hold, P/E FY2013e: 10.3x) plans to start the necessary procedures to acquire an Islamic banking license to launch a number of Islamic products, Al-Mal quoted Shahinaz Fouda, deputy to the bank’s managing director, as saying. The bank also plans to offer a number of real estate financing/mortgage products and also plans to start extending credit to the tourism sector. Emirates NBD’s subsidiary also plans to launch a specialized SME division. The bank does not have immediate plans to expand its branch network, which is currently at 67.
Egypt has postponed any decision on taking a USD4.8 billion loan from the IMF as financial aid from Gulf states has given Egypt some breathing room as it starts to conduct economic reforms, Reuters quoted Deputy Prime Minister Ziad Bahaa El-Din as saying on Tuesday.
The IMF and Egypt have sporadically discussed a possible loan worth up to USD4.8 billion to help the ailing economy since the 2011 uprising that toppled President Hosni Mubarak drove away tourists and foreign investors, two main sources of foreign currency.
"We have postponed that (IMF) decision for the time being. We are not under the extreme stress that the previous government found itself in," Bahaa El-Din told a conference in London. Bahaa El-Din added that Egypt has so far received around USD8 billion of a USD12 billion aid package from Saudi Arabia, Kuwait, and the UAE promised in July.
Egypt is expecting to receive USD1 billion in aid from Kuwait, he said, but did not mention when the cash would arrive. He also said Egypt is negotiating for more aid from the Gulf.
The minister told Reuters later that he has also signed a USD610 million aid package in total from the World Bank to help build a power plant and develop sewage.
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The Russian Foreign Minister Sergey Lavrov and a Rosoboronexport official Mikhail Zavaly confirmed DEBKAfile’s reports about a large-scale sale of Russian arms to Egypt worth, they said, $2 bn. It would include advanced helicopters, air and missile defense systems and MiG-29/M2 warplanes. Negotiations are still ongoing on the MiGs. Some of the items were kept under wraps. The export agency official commented: “There is never a vacuum on the international arms market. If one supplier goes away, then another one appears.