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MIRA INFORM REPORT
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Report No. : |
485362 |
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Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
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Name : |
ARAB
NUBIA GROUP |
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Registered Office : |
16, 299 Street,
New Maadi, Cairo 11728 |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
2013 |
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Com. Reg. No.: |
70017 |
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Legal Form : |
Egyptian Joint
Stock Company |
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Line of Business : |
Subject is engaged
in the provision of exploration consultancy services and distribution of
talcum powder, limestone, dolomite and feldspar |
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No. of Employees : |
40 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Egypt |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EGYPT - ECONOMIC OVERVIEW
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK.
Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment, which remains above 10%.
Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and on Gulf allies to help cover the import bill. In 2015-16, higher levels of foreign investment contributed to a slight rebound in GDP growth after a particularly depressed post-revolution period. In 2016, Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts, and floated its currency, which led to a sharp depreciation of the pound and corresponding inflation. In November 2016, the IMF approved a $12 billion, three-year loan for Egypt and disbursed the first $2.75 billion tranche.
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Source
: CIA |
SUMMARY
Company Name : ARAB NUBIA GROUP
Country of Origin : Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date : 2013
Commercial
Registration Number : 70017, Cairo
Issued Capital : EGP
5,000,000
Paid up Capital : EGP
5,000,000
Total Workforce :
40
Activities :
Providers of exploration consultancy services and distribution of talcum
powder, limestone, dolomite and feldspar
Financial Condition : Fair
Payments : No Complaints
Operating Trend : Steady
Person Interviewed : Amr Khalf, Accounts Manager
COMPANY
NAME
ARAB NUBIA GROUP
ADDRESS
Registered & Physical
Address
Street : 16, 299 Street
Area : New Maadi
Town : Cairo 11728
Country : Egypt
Telephone : (20-2) 27020961
Facsimile : (20-2) 27021326
Mobile : (20-106) 0164624 / (20-102) 8857700 / 8857707
Email : info@arabnubia.com
Premises
Subject operates
from a medium sized suite of offices that are rented and located in the Central
Business Area of Cairo.
KEY
PRINCIPALS
Name Position
·
Magdy Abdullah Mahmoud Chairman
·
Yousef Hassan Abdul Montelab Vice
Chairman
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Mahmoud Mohamed Moustafa Director
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Mohamed Jamal Sabbag Director
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Ahmed El Sayed Sultan Director
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Mohamed Mubarak Waballuh Director
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Amr Khalf Accounts
Manager
LEGAL
FORM & OWNERS
Date of
Establishment : 2013
Legal Form :
Egyptian Joint Stock
Company
Commercial
Reg. No. : 70017, Cairo
Issued Capital : EGP 5,000,000
Paid up Capital : EGP 5,000,000
Name of
Shareholder (s)
·
Magdy Abdullah Mahmoud
·
Yousef Hassan Abdul Montelab
·
Mahmoud Mohamed Moustafa
·
Mohamed Jamal Sabbag
·
Ahmed El Sayed Sultan
·
Mohamed Mubarak Waballuh
Notes to the legal Form A Joint Stock Company ( SAE ) can be both a public
or private company the capital of which is divided into shares of equal value; the liability of
the shareholder is confined to the value of the shares to which he subscribes,
and he is not liable for the
debts of the company except within the limit of those shares. A JSC may be 100%
owned by foreign investors
and there should be at least three shareholders. The minimum capital of JSC
companies is EGP 250,000 or EGP
500,000 if it is a public company.
OPERATIONS
Activities: Engaged in the provision of exploration
consultancy services and distribution of talcum powder, limestone, dolomite and
feldspar.
Import
Countries: Europe and the
Far East
Operating Trend: Steady
Subject has a
workforce of 40 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (EGP)
Year sales
Year Ending
31/12/15: EGP
13,880,000
Year Ending
31/12/16: EGP
13,200,000
Year Ending
31/12/17: EGP
14,000,000
Local sources
consider subject’s financial condition to be Fair.
Note: According to Egyptian Commercial Law,
only Joint Stock Companies SAE (Listed on the Stock Market) are required to
publish their financial
information. Financial information on other legal forms can only be obtained
from the companies / businesses directly
BANKERS
·
Commercial
International Bank (CIB)
Nile Tower Building
21-23 Giza Street
PO Box: 2430
Cairo
Tel: (20-2) 25703043
Fax: (20-2) 25703172 / 25072691
PAYMENT
HISTORY
No complaints
regarding subject’s payments have been reported.
SANCTION
LIST CHECKS
The subject and its
shareholders have been checked in the following sanctions list databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of Financial Institutions (Canada) No matches
OFAC - Specially Designated Nationals (SDN) No matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
GENERAL
COMMENTS
During the course
of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
- Interview with Amr
Khalf, Accounts Manager, on 16/01/2018
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
COUNTRY
OUTLOOK
Recent Developments
The first quarter of FY17 (July to June) marked a slowdown in growth
recording 3.4 percent compared to 5.1 percent in the same quarter last year,
with annual growth in FY16 registering 4.3 percent. Growth was constrained by
severe shortages in hard currency, an overvalued exchange rate and sluggish
growth in Europe, Egypt’s main trading partner. Key sectors continue to
experience negative growth, particularly tourism and the oil and gas
extractives sector that has been suffering from underinvestment and arrears.
The annual fiscal deficit in FY16 increased to 12.1 percent of GDP, up
from 11 percent the year before. However, in the first half of FY17 the deficit
declined to 5.4 percent of GDP, down from 6.4 percent in the same period last
year. The improvement in the first half is solely driven by a decline in total
expenditures, which compensates for a drop in total revenues. Lower
expenditures were driven by a decrease in subsidies and public wages as a
percentage of GDP.
The most recent data for the first quarter of FY17 show an overall
surplus in the balance of payments of 0.5 percent of projected GDP, compared to
a deficit of 1 percent during the same period of the previous year. The
improvement in external accounts was mainly due to the narrowing trade deficit
induced by an increase in merchandise exports (by 11.2 percent) and a decline
in merchandise imports (by 4.8 percent). Meanwhile, Suez Canal receipts further
deteriorated by 4.8 percent and net private transfers also declined by 21.8
percent. As a result, the current account deficit widened to 1.4 percent of GDP
compared to 1.1 percent in the same quarter of the previous year. More
positively, FDI inflows increased to US$1.9 billion over the same period, up from
US$1.4 billion the previous year.
To stimulate growth and address major macroeconomic imbalances, the
government embarked on a major economic reform program. The key features
include (i) the liberalization of the exchange rate regime; (ii) fiscal consolidation
through a combination of expenditure and revenue measures, notably cuts in fuel
subsidies, containment of the wage bill and introduction of VAT; and (iii)
reforms to the business environment and addressing impediments to industrial
activity.
The reform program was supported by an IMF Extended Fund Facility of
US$12 billion which contributes to cover Egypt’s financing needs, the rest of
which has been covered through disbursements under the World Bank, the African
Development Bank and a number of bilateral loans, in addition to a recent
issuance of Eurobonds in the amount of US$4 billion. Following the floatation,
the exchange rate displayed strong overshooting (hitting its
lowest rate of 19.5 in December compared to a pre-float fixed rate of
8.8), but has subsequently strengthened as foreign investor confidence picked
up and backlogs of USD orders to finance imports eased. Net international
reserves reached US$26.4 billion at-end January (6 months’ imports), up from a
pre-floatation level of US$19 billion.
Currency weakening has led to a sharp rise in inflation, which reached
its highest recorded level of 30.2 percent in February 2017. Following the
currency floatation, the CBE increased interest rates by 300 basis points
(bringing the cumulative increase to 550 basis points since March 2016) to
absorb excess liquidity and curb inflation. High inflation has contributed to
the aggravation of social conditions, given the persistently high unemployment
(12.6 percent in 2016). The recently adopted reform program involves efforts to
improve social safety nets, notably through the partial reallocation of freed
up resources from reduced energy and food subsidies; the expansion of cash
transfer programs; and an increase in the general pension budget by 15 percent.
Nonetheless, the mitigation of recent adverse
shocks will continue to depend on an effective targeting mechanism.
Outlook
GDP is expected to grow by 3.9 percent in FY17, and will be largely driven
by public investment and to some extent net exports. Private investment is
expected to pick up only in the second half of FY17, supported by enhanced
competitiveness following the depreciation of the currency and the gradual
implementation of business climate reforms. Tourism is also expected to
steadily recover on the back of a weaker currency. Yet, growth will likely be
undermined by slower growth of private consumption, which is expected to be
negatively affected by record high inflation rates. Prudent monetary policy is
projected to bring inflation down over the forecast horizon after the one off
effects of depreciation, subsidy reforms, and the introduction of VAT
dissipate.
The fiscal deficit is projected to narrow to 10.5 percent in FY17, contingent
on the government’s commitment and ability to sustain its fiscal consolidation
plan. With the implementation of the VAT, the expected increase in the VAT rate
to 14 percent from the current 13 percent, and efforts to improve tax
collection, revenues are expected to improve, while expenditures will continue
to be contained.
The current account deficit is expected to start improving in FY17,
supported by a positive exchange rate effect and an increase in remittances
transferred through formal channels.
In the near term high inflation is likely to have negative short-term
effects on households. Current efforts to improve
targeting in the food smart-card program, currently used to protect the vulnerable
population from food price shocks and ensure a minimum level of food security,
could provide additional resources for an improved safety net.
Risks and
challenges
Policy slippage and absence of real-sector reforms may negatively impact
the anticipated economic recovery. Deteriorating security risks can adversely
affect the recovery of the tourism sector, traditionally a main source of
revenue and foreign currency.
On the social front, resources from fuel subsidy reform to be allocated
to social programs may be lower than expected
due to currency depreciation, but efforts should continue to improve the
efficiency of the safety net system. Sustained high unemployment may lower
households’ ability to improve their living conditions.
Key Economic Indicators
2014 2015 2016* 2017* 2018 2019
Real GDP Growth (%) 2.9 4.4 4.3 3.9 4.6 5.3
Inflation Rate (%)
10.1 10.4 10.2 20.1 14.2 11.3
Current Account
Balance (% of GDP) -0.9 -3.8 -6.1 -5.5
-4.4 -3.8
Fiscal Balance (%
of GDP) -11.5 -11.0 -12.1 -10.5
-9.2 -7.3
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.76 |
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1 |
INR 89.91 |
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Euro |
1 |
INR 78.20 |
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EPG |
1 |
INR 3.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.