LONDON: Egyptian stocks tumbled to their lowest level this year on Wednesday as retail investors took flight.
A sharp rise in Suez Canal revenues, a major foreign exchange earner for the country, was not enough to quell investors concerns about the strength of the currency.
The main Egyptian stock index lost 3.8 percent which some fund managers blamed on generally negative sentiment toward emerging markets worldwide as well as more local speculation about possible currency devaluation.
“Our channel checks suggest the sell-off in the Egyptian market is local retail and institutions driven, on currency fears and speculation over a further round of devaluation,” said Vrajesh Bhandari, portfolio manager at Al Mal in Dubai, Reuters reported.
“Selling is further intensified as margin calls are triggered and technical support levels break down. The country canceled three consecutive Treasury auctions, citing investors’ unrealistic yield demands.”
Egypt’s Suez Canal revenues rose to $502.2 million in August up 6.7 percent from a year earlier according to official data released on Wednesday.
Elsewhere regional stock markets closed mostly lower with the exceptions of Abu Dhabi which edged 0.2 percent higher and Saudi Arabia, the best regional performer, which rose by 1.1 percent.
Saudi stocks are benefiting from the strong oil price which eased slightly yesterday but still hovered just under $79.
OPEC and some other oil producers including Russia will meet in Algeria on Sept. 23 to discuss how to allocate supply increases within their quota framework to offset the loss of oil exports from Iran following the introduction of sanctions by the US.
Those measures will come into force on Nov. 4 and data suggests that buyers are already retreating from Iranian crude purchases.
A key question for the oil price as well as regional stock markets in the weeks ahead will be the extent to which other Gulf oil exporters can compenaste for the loss of Iranian supplies by pumping more.
Egypt stock market plunges as retail investors take flight
Egypt stock market plunges as retail investors take flight
- Biggest index drop in Egypt since mid-2016
- Saudi Arabia outperforms in Gulf
SDB signs 11 cooperation agreements at DeveGo 2025
RIYADH: Saudi Arabia’s Social Development Bank signed 11 cooperation agreements during the Entrepreneurship and Modern Business Practices Forum, or DeveGo 2025, spanning key sectors including finance, education, and energy, as well as healthcare, heritage, the non-profit sector, and freelance work, alongside government ministries and official authorities.
The agreements reflect the bank’s strategy to build an integrated system of financial and non-financial empowerment that meets the needs of entrepreneurs, start-ups, and micro-enterprises, enhancing their capacity for growth in promising sectors.
SDB CEO Sultan bin Abdulaziz Al-Hamidi said the forum serves as a national platform bringing together local and international experts to discuss developments in the entrepreneurship sector, in line with the bank’s mission to support young entrepreneurs and micro and start-up enterprises.
Al-Hamidi added: “We are witnessing a golden era of entrepreneurship in the Kingdom, transitioning from limited support to the largest entrepreneurial movement in the country. The number of enterprises has grown from 430,000 in 2016 to approximately 1.7 million this year.”
The CEO added that since its establishment, the bank has provided total financing of SR166 billion ($44.27 billion), of which more than SR46 billion has supported over 600,000 entrepreneurs, 59 percent of whom are Saudi women.
“These figures demonstrate the bank’s deep impact in empowering human capital, fostering innovation, and building a knowledge-based, diversified economy,” he said.
The agreements include a collaboration with the UN Conference on Trade and Development, known as UNCTAD, to enhance financial and non-financial empowerment of entrepreneurs and enterprises through the global Empretec program until 2030, aligning national efforts with global development goals and boosting the competitiveness of Saudi projects internationally.
SDB also signed agreements with the banking sector, including a joint financing portfolio with the Arab National Bank to support entrepreneurs, and a partnership with STC Bank to launch innovative financing cards for freelancers.
In healthcare, the bank signed an agreement with Fakeeh Group to establish a financing portfolio under corporate social responsibility.
Another agreement with ACWA Power will support entrepreneurs and innovators in the energy and water sectors, contributing to quality jobs and sustainable development in high-potential industries.
On the capacity-building and community development front, SDB signed an agreement with Northern Borders University to provide flexible financing solutions for students.
Cooperation with the Saudi Heritage Commission will launch a joint program to empower artisans and local talents, turning heritage passion into sustainable economic opportunities.
The bank also signed an agreement with the Authority for the Care of People with Disabilities to empower beneficiaries economically and socially through training programs and financing opportunities, enhancing their independence, quality of life, and economic participation.
The forum featured a series of keynote speeches and panel discussions addressing critical issues for the future of entrepreneurship and new work models, with participation from government leaders, international experts, investors, and entrepreneurs.
In a panel with UNCTAD Secretary-General Rebeca Grynspan, discussions focused on empowering small and medium enterprises for sustainable development.
The panel highlighted the Kingdom’s rapid economic and entrepreneurial transformation, emphasizing the launch of the Empretec fellowship program in partnership with SDB as a strategic step in cultivating a globally competitive generation of entrepreneurs.
Sessions also explored readiness for the future and the new economy, the role of corporate social responsibility as a growth driver, and practical applications of artificial intelligence and advanced technologies.
The forum also addressed entrepreneurship and AI in the MENA region in a keynote by co-founder and CEO of Founder Institute, Jonathan Greechan.
The “Tech Growth Guide” session examined market readiness and digital transformation with participation from government leaders and top technology and investment companies, generating actionable insights on challenges and opportunities in the entrepreneurial economy.
DeveGo 2025 continues over three days with a high-quality program of panel discussions and specialized workshops, engaging a select group of experts, investors, and entrepreneurs from Saudi Arabia and beyond, reinforcing the Kingdom’s growing position as a regional platform for entrepreneurship and new work models.
