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The Saudi Exchange (Tadawul) Parallel Market (Nomu) saw extraordinary growth in new initial public offerings (IPOs) during the last year with 32 new businesses being welcomed to the market. This surge in IPOs in Saudi Arabia is indicative of the country’s efforts to diversify its economy and reduce its dependence on oil revenue. Let’s take a closer look at this development and what it means for investors. Nomu – Parallel Market Primary Goals and Objectives The Saudi Parallel Market Nomu was established with the aim of achieving two main objectives. An initial priority is to give companies an additional avenue …

Current Export Status in Egypt Egypt has had a negative trade balance for years, and increasing exports is a cornerstone of narrowing the current trade deficit. The initial devaluation and then floatation of the exchange rate in 2016 helped in improving the trade balance as a % of the GDP from -14.5% in 2015/16 to -12.8% in 2018/19. Yet, till now export competitiveness remains weak and export proceeds are well below those of peer countries & their historical average. Exports of goods and services in 2021 (11.1% of GDP) remain well below the level achieved in 2011 (20.5%). The current …

What’s Happening in Egypt? Why Is Egypt’s Currency Falling Faster than Previous Projections? It all comes down to 4 main reasons why the Egyptian currency is falling harder than ever; Growing Financing Gap, Rising Debts, Foreign Outflows, & New IMF loan) According to Fakhri Al-Feqi, head of the parliamentary planning and budget committee, Egypt’s financing gap amounts to about $25bn, of which $15bn are installments and debts due during the current year, and the rest is from the deficit in the balance of payments, which is largely due to the weakness of domestic savings, which represent only 13% of GDP. …

Before going through the IPO process, companies should ensure they have an effective internal control system, accounting standards, and corporate governance in place. This will help you move through the process smoothly and make it achievable in a shorter period of time. IPO Requirements in Saudi Arabia and the Effect on the Local Economy Saudi Arabia is the largest economy in the Middle East. With a population of over 30 million, it has a GDP of $1.56 trillion. Local companies will now be able to list their shares on the Saudi stock exchange TADAWUL by just paying a fee and …

How Will the Government Reduce the Import Bill and Maximize the Export Bill? The government signaled its focus on growing local manufacturing to limit Egypt’s imports. On the export side of the equation, Egypt is aiming to increase exports to USD 100 bn a year by 2025 as part of the government’s plan to increase the private sector’s role in the economy. Out of >6.8k import categories, the ministry shortlisted 4.8k industrial categories that are viable for local manufacturing.  These industrial categories cost us USD 60 bn in 2019 — or 85% of the year’s total import bill (USD 72 …

The Egyptian Economy Sufferings The Egyptian economy has undergone a series of fiscal and monetary reforms over the past years, resulting in substantial improvements in macroeconomic indicators. However, still deeper structural reforms are necessary to improve the overall economic situation. If Egypt is to make a full recovery, it needs to adopt policies that structurally reform the economy, improve the business climate, support the private sector, and reprioritize government spending. Implementation is already underway. Many of the designed programs are off the ground, and more will be forthcoming. Egyptian Economic Conference (EEC) 2022 Egyptian Economic Conference 2022 came amid one …

What is Saudization? Saudi Arabia is one of the countries that has taken an important step towards diversifying its economy. The country is striving to achieve economic diversification by 2030. One of the ways they are pursuing this goal is through Saudization. In the 1970s, King Faisal initiated a program to replace foreign workers with Saudi nationals. The term “Saudization” was coined by King Faisal in 1975 and it refers to a process of replacing foreign workers with Saudi nationals, but that didn’t work quite as much back then. Now the term Saudization is used to refer to the process …

How Will the Government Reduce the Import Bill and Maximize the Export Bill? The government signaled its focus on growing local manufacturing to limit Egypt’s imports. On the export side of the equation, Egypt is aiming to increase exports to USD 100 bn a year by 2025 as part of the government’s plan to increase the private sector’s role in the economy. Out of >6.8k import categories, the ministry shortlisted 4.8k industrial categories that are viable for local manufacturing.  These industrial categories cost us USD 60 bn in 2019 — or 85% of the year’s total import bill (USD 72 …

Where is Egypt from the Energy Market Transformation The global energy landscape is experiencing a huge transformation. Countries are exploring sustainable substitutes to current energy generation methods, diversifying their investments, and pouring funds into renewable technology development. Also, governments are putting energy security at the forefront of their agendas. While this has meant efforts to diversify the energy mix away from fossil fuels and towards renewable energy, it has also driven countries to diversify the sources of their energy imports. This has placed Egypt in a good position to make a significant contribution to energy security regionally & globally. Why …

The Benefits of Digitizing and Digitalizing Your Business The digitalization of a business is the process of embracing new technologies and transforming a company’s operations to meet the needs of the digital era. Digital transformation is not just about technology. It is about understanding customers, markets, and society. You can digitize your business by adding an online presence like a website or social media account for your company. You can also digitize your business by creating an app for your customers to use on their mobile devices. Once you have taken these steps, you will need to think about how …