Monday, 10 December 2018

Competition watchdog puts iPhone maker Apple in crosshairs

TL;DR

What We’re Tracking Today

It’s all about the money this morning: From multilateral institutions to Big Oil and homegrown VC funds, this morning’s headlines are dominated by announcements of several bn USD in fresh investment and financing. Funds from multilateral institutions are flowing to the private sector and infrastructure, and private sector companies have committed to investing bns of EGP. We have all the details in this morning’s Speed Round, below.

Politics are back in the global story for Egypt as a serial filer of nuisance suits said he and other members of the bar have filed a court case that aims to force the House of Representatives to amend term limits in the constitution and allow President Abdel Fattah El Sisi to run for a third term in 2022. The story, which we noted yesterday, is getting plenty of play in the international press, as we note this morning in Egypt in the News.

And the Competition Authority has fired a populist shot over the bow of Apple, arguing that the iPhone and Mac maker’s ‘authorized reseller’ program violates antitrust law. We have more on that in Speed Round, too.

UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan arrived in Cairo last night to meet with Egyptian officials, Youm7 reports.

Stat of the morning: <5%. Women account for less than 5% of all chief executives in the US, UK and Europe, according to a survey by executive search firm Heidrick & Struggles cited by the FT. An October study from a Goldman Sachs institute put the figure at 6% among S&P 1500 companies in the US.

In miscellany this morning:

The spooks are having a field day with Huawei with echoes of a Cold War spy thriller in the still-unfolding saga, James Kynge writes for the FT.

The 2019 Grammy nominations are outwith Kendrick Lamar’s Black Panther soundtrack and Drake topping the table.

Want to live healthier — and maybe even a bit longer? Lift weights. Don’t take our word for it, though we’ve previously reported that regularly lifting weights can lower anxiety. New research suggests that even a little weight training may reduce the risk of heart attack or stroke regardless of whether you also run, bike, row or engage in other aerobic activity. Even endurance athletes are catching on, as the Wall Street Journal makes clear in its profile of a 71-year-old former financial planner who “got buff” to improve his running times in this week’s What’s Your Workout?

Don’t know where to start with weight training? You could do worse than reading Nerd Fitness’ Strength Training 101 and Seven strength training myths every woman should know.

Enterprise+: Last Night’s Talk Shows

The second and final day of the Africa 2018 Forum was in the spotlight on last night’s talk shows, with Al Hayah Al Youm recapping the highlights of President Sisi’s speech (watch, runtime: 08:41) and Hona Al Asema focusing more on the president’s decisions (watch, runtime: 04:54). We have more on the conference in Speed Round, below.

The potential benefits of the COMESA trade agreement for Egypt was the main topic of discussion for businessman Hussein Sabbour on Al Hayah Al Youm (watch, runtime: 02:21).

Cabinet released a report detailing Egypt’s economic development in 2018, which Al Hayah Al Youm discussed briefly. The report included evaluations from international organizations, among other indicators (watch, runtime: 03:09).

Over on El Hekaya, Amr Adib raised funds for a charitable campaign’s purchase of winter blankets for the needy (watch, runtime: 03:52).

House Rep. Ahmed El Segeni had a chat on Hona Al Asema about a draft law regulating commercial shops, which is currently with the House of Representatives (watch, runtime: 08:23).

Speed Round

Speed Round is presented in association with

INVESTMENT WATCH- Summing up the morning is a piece from Reuters on news of a USD 1 bn loan to Egypt from the World Bank: “The World Bank is pushing to prise open more space for Egypt’s private sector with USD 1 bn in new funding, part of a second phase of support that follows two years of painful economic reforms, the bank’s regional vice-president said.”

Bns in fresh inflows announced yesterday are earmarked for the private sector and infrastructure projects: The World Bank facility, pledged last week, was one of more than a half-dozen announcements yesterday that saw international institutions and private sector actors announce investment-related plans.

Like the WB loan, many of yesterday’s announcements were made in Sharm at the Africa 2018 forum. Among them:

President Abdel Fattah El Sisi announced yesterday the launch of a risk insurance fund to encourage Egyptians to invest in Africa and “contribute to the continent’s development, according to a readout of his speech at the Africa 2018 Forum, which wrapped up yesterday. The president also announced the establishment of a separate fund to invest in Africa’s information technology infrastructure.

REMINDER- Egypt chairs the African Union in 2019. The announcements come as Egypt “[promotes] itself as a linchpin for intra-African trade and a model of economic reform as it prepares to chair the African Union in 2019,” Reuters says. El Sisi vowed that Egypt’s leadership of the union would focus on infrastructure development, pointing to an annual deficit in infrastructure investment in the 10s of bns.

INVESTMENT WATCH- BP buys 25% stake in Eni’s Nour concession: BP has acquired a 25% stake in the Nour concession from Eni, according to a statement from Eni. Industry watchers hope the offshore North Sinai concession could be a Zohr-scale discovery. The “transaction is part of a wider business alignment with BP internationally and further strengthens the relationship with Mubadala Petroleum in Egypt,” the Sunday statement read. BP holds a 10% stake in the Zohr supergiant field.

UAE’s Mubadala receives sign-off on 20% ownership stake in Nour: Eni also announced that the sale of a 20% stake in the Nour concession to the Abu Dhabi-based Mubadala, which was signed in November, has gotten sign-off from the government.

Who owns what at Nour? Eni (40%), BP (25%), Mubadala Petroleum (20%) and Tharwa Petroleum (15% stake as a contractor’s share).

INVESTMENT WATCH- Carbon Holdings has secured another USD 1.25 bn in financing to build its massive Tahrir petrochemicals complex after signing a contract with the Lagos-based Africa Finance Corporation, Reuters reports. Carbon has now raised c. USD 5.4 bn for the USD 10.9 bn Tahrir Petrochemicals Company, according to a separate statement from cabinet. That includes USD 1.6 bn from the UK, which we exclusively reported earlier this year, and possibly a reported USD 3.1 bn in standby funding from Chinese lenders. Basil El Baz’s Carbon Holdings is raising debt financing from US, UK and German export credit agencies and development finance institutions. The plant could help double total Egyptian exports and create tens of thousands of jobs directly and in related manufacturing industries.

INVESTMENT WATCH- Elsewedy to develop EGP 10 bn industrial zone in SCZone: An Elsewedy Electric subsidiary has signed a contract with the Suez Canal Authority that will see it develop an industrial zone in Ain Sokhna in the Suez Canal Economic Zone (SCZone) at an estimated total cost of EGP 10 bn, it said in an EGX disclosure (pdf). Elsewedy for Industrial Development will build the facility over a 10-year period.

INVESTMENT WATCH- Algebra Ventures leads USD 1.27 mn series ‘A’ round for Jordan’s Little Thinking Minds: Jordanian education technology platform Little Thinking Minds (LTM) raised USD 1.265 mn in a series A funding round led by our friends at Algebra Ventures, the firm said yesterday (pdf). Mindshift Capital and Al Turki Group also joined the round. LTM will use the investment to expand its product portfolio and “empower our product platforms with data tools and analytics that will improve student learning journeys and their outcomes,” says LTM co-founder Rama Kayyali. “Arabic literacy is increasingly important and has been largely underserved. Little Thinking Minds is filling this gap and supplementing stressed education systems by providing high quality Arabic-language learning resources,” says Algebra Ventures Managing Partner Karim Hussein. Some 80k students at 200 schools use LTM products.

Algebra, a USD 50 mn Cairo-based VC fund, has led or participated in multiple funding rounds this year, including a USD 1 mn series A round in gown rental platform La Reina, a USD 1.5 mn round for Jordan’s POSRocket, a USD 600k series A round for real estate platform iCommunity, a USD 16 mn series C round for Dubai-based HolidayMe, and a series A round for tuk-tuk and motorcycle ride-hailing app Halan.

INVESTMENT WATCH- Sawari Ventures nearing close on large Egypt-focused VC fund: Sawari Ventures expects to announce soon the close of an Egypt-only venture capital fund that will invest an average of USD 1.5 mn apiece in 25 growth stage companies, the firm said in an announcement (pdf) at the Africa Forum in Sharm El Sheikh. The fund will focus on fintech, education tech, health tech, and renewables, among other sectors. Limited partners include state-owned banks National Bank of Egypt, Banque Misr, Banque du Caire as well as Egypt’s Information Technology Industry Development Agency (ITIDA).

Sawari made the announcement after it closed yesterday a USD 35 mn fund dedicated to North Africa. The Sawari Ventures North Africa Fund I (SVNFI) will invest in technology and knowledge-driven companies in Egypt, Tunisia and Morocco. Limited partners include development finance agencies European Investment Bank, the UK’s CDC, the French Development Agency’s private sector financing arm Proparco and the Dutch Good Growth Fund (DGGF) managed by Triple Jump.

M&A WATCH- B Investments eyes 50% stake in 50 MW Benban solar plant: Private equity firm B Investments is looking to acquire a 50% stake in a 50 MW Benban solar plant for USD 15-20 mn, CEO Hazem Barakat told Al Mal. The company will make the decision in 1Q2019, he said. B Investments already holds stakes in three projects in the massive solar park through renewable energy player Infinity Solar.

The competition authority is going after Apple. Yes, Apple the iPhone maker. The Egyptian Competition Authority (ECA) accused iPhone maker Apple and some of its distributors of having violated antitrust regulations and ordered them to amend their contracts in a statement on Sunday (pdf). The competition watchdog alleges that Apple barring its regional distributors from selling to its Egyptian distributors has limited “intra-brand competition,” which the ECA takes as seriously as competition among rival companies, ECA head Emir Nabil said. Apple now joins Careem and Uber as the most high-profile international company to become the target of an ECA probe.

The allegations: After looking into its contracts and sales strategy, an ECA probe alleges that Apple barred its regional distributors from marketing and selling their Apple products to Egypt-based distributors, the statement says. It also claims investigators found evidence that Apple barred its Egyptian distributors from soliciting orders from regional distributors. Apple’s alleged actions have caused the prices of its products in Egypt to rise more than those sold in comparable regional market and “has harmed the Egyptian consumer by denying them their right to a cheaper version of their product,” Nabil said.

2019 looks reasonable for Egypt, less so for other emerging markets -EFG: EFG Hermes’ 2019 yearbook suggests that a “sustained recovery” in emerging markets is unlikely until the US Federal Reserve ends monetary tightening. The Fed is expected to continue hiking up rates until mid-2019, says the report, which predicts that “EM currencies could move lower from here.”

Look at Egypt, Nigeria, Kuwait and Saudi next year: Egypt and Nigeria are inexpensive markets with room to cut interest rates in 2019, while KSA and Kuwait will benefit from index inflows. Egypt remains undervalued even following the correction from April’s high, EFG Hermes’ research teams says, and rate cuts could spur a rally.

What shares is EFG tipping? Juhayna in Egypt as a proxy for a consumer recovery as well as Saudi’s Al Rajhi Bank and Kuwait’s Gulf Bank.

Further afield: The IMF’s chief economist thinks the US economy is going to slow down, the Financial Times reports, as Maurice Obstfeld warns that the “air is coming out of the balloon” around the world. But Obstfeld isn’t expecting the US to fall into recession — instead, he sees growth to progressively slow down in 2019 and 2020. That comes as business confidence in America has fallen for the third consecutive quarter. US CEOs are still optimistic, just not as much as before, according to a survey by the Business Roundtable.

Want more from the crystal ball set? Go read former Mideast hand Robin Wigglesworth’s latest column for the Financial Times, wherein he looks at how strategists are calling 2019 for US equities and other markets and instruments. Among the takeaways:

  • 2019 will see the return of the bear, implying another 10% drop for US equities from their current level
  • Value stocks could outshine growth stocks amid what Morgan Stanley thinks will be a “major leadership change occurring from growth to value which could be more long-lasting than most appreciate.”
  • Gold could regain its glitter after a disappointing 2018
  • Cash will be king — rising US interest rates could see cash return 2.8% in 2019

EXCLUSIVE- Gov’t walks away from fuel hedging plan as oil price plunge sees crude trading below budget prediction: The Finance Ministry has pulled fuel hedging contracts it was due to finalize with two banks as crude prices proved lower than annual budget projections, a government source told Enterprise. Even though it has jumped in recent days on the back of a decision by OPEC and its allies to cut production, crude is still below the USD 67/bbl Egypt had projected in its yearly budget, meaning there is no need for hedging during this fiscal year. The state sees prices in a comfortable range into 2019, the source said, so hedging is off the menu for the moment.

The Financial Regulatory Authority will hear today an appeal today by Beltone Financial of a six-month suspension handed to the firm’s investment banking arm. The FRA had imposed the suspension following allegations of irregularities in the IPO of consumer- and structured-finance player Sarwa Capital, whose shares plunged on the first day of trading. Beltone has denied the allegations with some backup coming from Misr for Central Clearing, Depository & Registry and the Egyptian Capital Markets Association. A separate Administrative Court ruling on an appeal is scheduled to take place on Saturday, 15 December. The hearing comes as Beltone has gone on the offensive to make the case that it did nothing wrong. You can read our rundown of what the FRA is alleging here.

SODIC enters EGP 800 mn settlement agreement with IGA: Leading real estate developer SODIC has agreed to pay EGP 800 mn in a settlement with a state agency to avoid “entering into lengthy legal disputes,” the company said yesterday (pdf). The settlement avoids “significant [potential] negative implications on the Company and its stakeholders,” SODIC said, despite the fact that, in accordance with the provisions of law, the judgment and the penalties mentioned do not involve SODIC.

What’s the case? The Illicit Gains Authority (IGA) had questioned its 1995 acquisition of 1,400 feddans of land in Sheikh Zayed that has since become SODIC West. The IGA began the probe in connection with a case against former SODIC chairman Magdy Rasekh in his personal capacity. Rasekh was convicted in absentia in a 2015 verdict that was upheld a year later by the Court of Cassation, Egypt’s highest appeals court. The judgments did not involve or incriminate SODIC.

Who is Rasekh? The father-in-law of Alaa Mubarak, the son of the former president.

What does this mean for SODIC? Besides a quick hit to this year’s income statement, not much, really. The settlement is “final and comprehensive” and ensures SODIC will face no further queries on the issue. Payment of the EGP 800 mn is paced out from now through December 2020 and represents in total just 4.1% of total revenues from SODIC West. SODIC estimates that “52% of the settlement amount is to be recognized on the income statement of the financial year ended December 2018.” Strong cash flows estimated at about EGP 9.3 bn will back the payment, as will cash on hand and bank facilities.

The settlement, in the works for months now, will not have a significant impact on SODIC’s intended merger with MNHD. The all-share transaction — the first M&A of its kind in Egypt — will see SODIC acquire at least 51% of MNHD in one of the largest M&As in EGX history. MNHD’s board of directors said in a bourse filing (pdf) after a meeting yesterday that the company is still keen on the transaction with SODIC “with all the strategic and long term benefits it brings to both companies." The statement noted that the MNHD board will study the impact of these changes on the transaction’s swap ratio.

The bottom line: “The Company maintains its strong financial position and exceptionally liquid balance sheet and continues to leverage this strength to deliver to all its stakeholders while pursuing growth opportunities,” SODIC said.

LEGISLATION WATCH- House ratifies Egypt-Cyprus pipeline agreement: The House of Representatives’ Legislative Committee approved yesterday the Egypt-Cyprus agreement to establish a natural gas pipeline connecting Cyprus’ Aphrodite natgas field to liquefaction plants at home, according to Youm7. The pipeline will be used to bring in natgas for re-export to Europe, a key element of Egypt’s bid to become an energy hub for the Eastern Mediterranean.

The committee also approved a USD 65 mn grant from USAID to support water infrastructure, and a KWD 100,000 grant from the Arab Fund for Social and Economic Development to purchase equipment for the Theodor Bilharz Research Institute in Giza.

LEGISLATION WATCH- House gives preliminary nod to Supply Affairs Law, Competition Act amendments: The House of Representatives’ general assembly have preliminary approval to proposed amendments to the Supply Affairs Law and the Egyptian Competition Act, but postponed its final vote due to lack of quorum, Al Ahram reports. The amendments would, if passed, grant supply and interior ministry inspectors as well as the Consumer Protection Authority the right to monitor the market and guard against price increases on staple goods and commodities. The amendments would also step up fines for traders who hoard commodities to drive up prices.

The House general assembly also signed off on amendments to the Real Estate Tax Act extending the tax collection period to December 2021, instead of December 2020, as requested by Cabinet, Al Mal reported.

EXCLUSIVE- Egyptian and UK officials are talking about what post-Brexit trade looks like: The UK is committed to preserving its trade and investment relationship with Egypt throughout and beyond the Brexit period, UK Trade Commissioner for Africa Emma Wade-Smith OBE told Enterprise in a recent sit-down. Our discussion came as Prime Minister Theresa May is expected to put her Brexit agreement in front of MPs for a vote tomorrow, the Guardian reports. Edited excerpts from our talk:

Our number one priority right now is preserving trade continuity with Egypt. We can’t officially begin trade negotiations until after we leave the EU in March 2019, so the current conversation with the Egyptian government is about replicating the existing trade agreements, such as the EU-Egypt Association Agreement, but move them into a UK-Egypt context. We want to provide certainty for business and government so that they can prepare for what’s going to happen on any given day.

UK does not want long, drawn out talks: We want to make sure that our relationship with Egypt reflects that open trade approach. That said, we need to be realistic about our capacity to agreements. Negotiating multiple such agreements at once is a mammoth task and we’ll have to prioritize ruthlessly. However, I’m absolutely convinced that there’s much we can do to facilitate trade and investment between the UK and Egypt without writing up a brand new agreement that will take many years to negotiate.

We intend to maintain and grow our investment involvement in Egypt, especially as the reform packages continue yield results. The USD 1.6 bn financing package to Carbon Holdings’ Tahrir Petrochemicals Corporation remains our largest transaction through UK Export Finance and demonstrates our strong commitment to the Egyptian economy. As the largest foreign investor in Egypt, we are present in a full range of sectors, including education, skills, healthcare and pharmaceuticals, oil and gas, and infrastructure. We’ve also been partnering with the Egyptian business community and authorities to help grow the financial services sector, looking into fintech and speaking with the ministries of finance and planning about public-private partnerships, which we see as a very exciting opportunity in the future.

There is no current timeline for restoring direct flights to Sharm El Sheikh, though the number of British tourists visiting Egypt is increasingly rapidly. We know how important Sharm is and there are ongoing discussions with the Egyptian authorities on the flights and how we can support tourism and the money it generates for Egypt’s economy.

** SHARE ENTERPRISE WITH A FRIEND **

Enterprise is available without charge — just visit our English or Arabic subscription page, depending on which edition you would like to receive. We give you just about everything you need to know about Egypt, in your inbox Sunday through Thursday before 7am CLT (8am for Arabic), and all we ask for is your name, email address and where you hang your hat during business hours.

Up Next

The CBE will auction USD 1 bn worth of one-year T-Bills today, and will settle the auction on Tuesday, according to a CBE statement picked up by Reuters.

Arab Contractors will sign on Wednesday the final contracts to build a USD 3 bn hydroelectric dam over Tanzania’s Rufiji River, according to Ittihadiya. Arab Contractors was awarded the project, which will be financed by the Tanzanian government, in a tender in October.

Customs Act amendments will go to the House this week: The House of Representatives will discuss proposed amendments to the Customs Act this week, MP Amr El Gohary told Masrawy. The amendments, which the cabinet has preliminarily approved, would help create an expedited track for customs clearance, a ‘whitelist’ of trusted importers, and broaden the Customs Authority’s powers.

Get briefed on Egypt’s tourism reform program when Tourism Minister Rania Al Mashat speaks at AmCham on 13 December. Members and their guests may register here.

The Macro Picture

Moscow’s influence in the Middle East is increasing as Washington’s is waning, Liz Sly writes for the Washington Post. Over the past several months, several Arab leaders — including Egyptian President Abdel Fattah El Sisi, Saudi Arabia’s King Salman, and the crown prince of Abu Dhabi — have chosen to visit Moscow more frequently than or instead of Washington. “Under the personal direction of [Russian President Vladimir] Putin, Russia is stepping into the vacuum left by the disengagement of the Obama administration and the unpredictability of the Trump one to challenge the United States’ dominant role in the region.”

Part of the appeal is Moscow’s policy of non-interference: Putin is “making inroads with U.S. partners Saudi Arabia, Egypt and even Jordan, based on those countries’ perception that Putin’s authoritarian regime can act decisively in support of its friends while avoiding American-style meddling in their domestic politics,” says Bloomberg’s Hal Brands. The latest example? Putin and Saudi Crown Prince Mohammed bin Salman looking very chummy at the G20 Summit, which served as a reminder to the US that Riyadh has other options for powerful allies if Washington proves to be a thorn in its side over issues like the murder of Jamal Khashoggi.

Egypt in the News

The explicit video taken atop a Giza Pyramid topped headlines in the foreign press yesterday, with outlets such as Sky News, NBC News, and Fortune all covering the story. In case you didn’t catch it yesterday, two Danes filmed themselves in the act atop the Khufu Pyramid, sparking outrage throughout the country.

Also making headlines and cementing his class act status was Mo Salah turning down his Man of the Match award after Liverpool’s game against Bournemouth, insisting it go instead to his teammate James Milner, who had just put in his 500th game in the Premier League. Salah was recognized for scoring a hat-trick in Saturday’s 4-0 win and putting to bed concerns that he was a one-season wonder.

On The Front Pages

Egypt taking on a leading role in the development of Africa is the running theme in the country’s three main state-owned newspapers. Al Ahram, Al Akhbar, and Al Gomhuria each run with different takes on President Abdel Fattah El Sisi’s development-focused speech at the Africa 2018 Forum yesterday. Al Ahram also features other highlights from the conference on its front page, including the establishment of a risk insurance fund for Egyptian investors in Africa and the signing of several loan agreements.

Worth Watching

What exactly is CBD anyway? Consumer products of cannabidiol (CBD) are expected to reach USD 1 bn by 2020. But according to Vox, we don’t know all that much about this compound found in cannabis. CBD is non-psychoactive, meaning that it won’t get you high. Currently used to treat a variety of medical conditions, CBD is also the focus of a consumer craze. Dog treats, facials, coffee — you name it, it’s been CBD-ed.

Shifting attitudes belie the dangers of this poorly regulated market: Shifting attitudes in the medical profession mean that CBD is becoming increasingly “legit,” with the World Anti-Doping Agency taking it off its banned substances list. However, CBD consumer products sold online and in store are both largely unregulated and of extremely low dosage. Perhaps more importantly, CBD products have been found to contain THC, the cannabinoid responsible for the high associated with smoking marijuana, or other psychoactive ingredients (watch, runtime: 4:50).

Manufacturing

Germany’s Trox launches Egypt facility

Germany’s Trox, a manufacturer of air conditioning unit components, launched a production facility in Egypt earlier this month, it said in a statement. “By establishing a factory in Egypt, we acknowledge that the Middle East is a very important market for us,” Trox’s Managing Director Matthias Kasprowicz told MEP Middle East.

Banking + Finance

Banque Misr expects AfreximBank to agree USD 550 mn loan soon

Banque Misr will sign an agreement to borrow USD 550 mn from the African Export-Import Bank (AfreximBank) “within weeks,” Banque Misr Chairman Mohamed El Etreby tells Al Mal. Vice Chairman Akef El Maghraby had said last month that the bank was seeking a loan of the same amount “to improve USD liquidity” amid speculation that Banque Misr is one of three state-owned banks propping up the EGP throughout the emerging markets sell-off.

New tax treatment won’t affect ADIB’s 2018 financial results

Abu Dhabi Islamic Bank’s 2018 financial results will not be affected by proposed amendments to the tax treatment of bank income from government debt, the bank said in an EGX disclosure (pdf). The bank expects, however, a decline of up to 8% in its 2019 profits. CIB and QNB had also said last week that their 2018 financial results will not reflect the impact of the proposed amendments.

Other Business News of Note

Egyptian Resorts Company sees rise in sales for new Sahl Hasheesh project

The Egyptian Resorts Company (ERC)’s Bay Village has seen a surge in demand since its launch in October, according to a press release (pdf). Bay Village has so far made EGP 79.6 mn from contracted sales and reservations and expects to generate EGP 390 mn in revenues for ERC. “Sale activity in recent months has been very encouraging for ERC’s Old Town district in Sahl Hasheesh,” ERC’s CEO Wael El Hatow said.

Egypt Politics + Economics

Egypt’s ACA rolls-up int’l human trafficking ring

The Administrative Control Authority (ACA) has arrested a group of 20 Egyptians and foreigners who are accused of being involved in an international human trafficking ring, according to Egypt Today. The defendants are being charged with forcing women to perform “immoral acts” and importing outlawed substances from Turkey. The ACA also says its investigation found that a Foreign Ministry employee was also implicated in the ring, and has aided in the trafficking of immigrants.

National Security

Egypt hosts joint anti-terror military drills with African countries

The Armed Forces hosted for the first time yesterday joint anti-terror military exercises with African states, it said in a statement. The drills, which included Sudan, Nigeria and Burkina Faso, aim to enhance security and stability in Africa and confront the threats of terrorism.

Sports

Karim Abdel Gawad wins 2018 CIB Black Ball Squash Open Champion title

Egyptian squash champion Karim Abdel Gawad took the 2018 CIB Black Ball Squash Open title after defeating Ali Farag in a final match on Sunday, PSA World Tour reports. The tournament is the first major competition to take place in Egypt since the men’s 2016 PSA World Championships, which Gawad also won.

On Your Way Out

Our friends at Flat6Labs announced that they will be graduating eight new startups from their 11th cycle. This is the incubator’s second cycle of 2018, and it saw eight startups accepted from among 500 applicants. The companies cover a range of sectors from food and drink to transportation to real estate to medicine. Flat6Labs will launch its 12th cycle in January 2019, as we noted previously.

The Market Yesterday

Share This Section

Powered by
Pharos Holding - http://www.pharosholding.com/

EGP / USD CBE market average: Buy 17.86 | Sell 17.95
EGP / USD at CIB:
Buy 17.86 | Sell 17.96
EGP / USD at NBE: Buy 17.78 | Sell 17.88

EGX30 (Sunday): 12,140 (-2.0%)
Turnover: EGP 442 mn (44% below the 90-day average)
EGX 30 year-to-date: -19.2%

THE MARKET ON SUNDAY: The EGX30 ended Sunday’s session down 2.0%. CIB, the index heaviest constituent ended down 1.9%. EGX30’s top performing constituents were Elsewedy Electric up 2.1%, and Abu Qir Fertilizers up 0.2%. Yesterday’s worst performing stocks were SODIC down 9.3%, Global Telecom down 5.4% and Egyptian Resorts down 5.3%. The market turnover was EGP 442 mn, and foreign investors were the sole net buyers.

Foreigners: Net Long | EGP +67.4 mn
Regional: Net Short | EGP -11.8 mn
Domestic: Net Short | EGP -55.7 mn

Retail: 60.0% of total trades | 56.1% of buyers | 63.9% of sellers
Institutions: 40.0% of total trades | 43.9% of buyers | 36.1% of sellers

WTI: USD 52.36 (-0.48%)
Brent: USD 61.78 (0.18%)

Natural Gas (Nymex, futures prices) USD 4.64 MMBtu, (+3.45%, January 2019 contract)
Gold: USD 1,254.30 / troy ounce (+0.14%)

TASI: 7,839.27 (-0.12%) (YTD: +8.48%)
ADX: 4,836.45 (-0.82%) (YTD: +9.96%)
DFM: 2,550.50 (-1.15%) (YTD: -24.32%)
KSE Premier Market: 5,442.08 (+0.12%)
QE: 10,604.28 (+0.06%) (YTD: +24.41%)
MSM: 4,547.73 (-0.02%) (YTD: -10.82%)
BB: 1,317.44 (-0.20%) (YTD: -1.07%)

Share This Section

Calendar

December: The government will announce the second phase of its privatization program before year-end, Public Enterprises Minister Hisham Tawfik said. The committee overseeing the state privatization program is also scheduled to hold a meeting next month to look into how market conditions developed since the privatization program was put on ice.

08-10 December (Saturday-Monday): Fourth Food Africa 2018 expo, Cairo International Exhibition and Convention Centre, Nasr City, Cairo.

09-10 December (Sunday-Monday): Cairo Regional Centre for International Commercial Arbitration’s Sharm El Sheikh VII conference, Egypt Hall, SOHO Square, Sharm El Sheikh

10 December (Monday): The Financial Regulatory Authority will hear a grievance appeal by Beltone against a six-month suspension handed to its investment banking arm over “irregularities” the authority says it found in Sarwa’s IPO, Al Mal reported.

11 December (Tuesday): The EFG Hermes CEOs Dinner. Four Seasons Hotel, Cairo

11-13 December (Tuesday-Thursday): The EFG Hermes Egypt Day Summit. Four Seasons Hotel, Cairo.

11 December (Tuesday): TVET Future Chef Competition – Season II, Cairo, venue TBD.

12 December (Wednesday): Banking and Finance Congress 2018, Cairo, venue TBD.

12 December (Wednesday): Arab Contractors will sign the final contracts to build Tanzania’s USD 3 bn, 2.1 GW hydroelectric dam, according to the presidency.

13 December (Thursday): Minister of Tourism Rania El Mashat speaking on “Egypt’s Tourism Reform Program (E-TRP) Revealed,” AmCham, Cairo.

13-15 December (Thursday-Saturday): Forum on “ The Role of Digital Financial Communication and Solutions in Enhancing Financial Inclusion,” Sharm El Sheikh, venue TBD.

13-15 December (Thursday-Saturday): Vodafone Developers 010 Innovation Hackathon, Smart Village.

14-16 December (Friday-Sunday): AutoTech 2018, Cairo International Exhibition and Convention Centre, Nasr City, Cairo.

14-16 December (Friday-Sunday): NEXUS Arab Future Summit 2018, The Nile Ritz Carlton, Cairo.

15 December (Saturday) The Administrative Court is expected to issue a ruling on an appeal by Beltone Financial against the six-month suspension of its investment banking arm.

18-19 December (Tuesday-Wednesday): Federation of Egyptian Chambers of Commerce leaders are scheduled to meet with their Saudi counterparts in Aswan to launch a collaboration project to support SME development in Egypt and Saudi Arabia, head Ahmed El Wakeel said.

19 December (Wednesday): Cairo Economic Court to rule into an appeal by pharma companies

25 December (Tuesday): Western Christmas.

27 December (Thursday): CBE’s Monetary Policy Committee meeting.

January 2019: Flat6Labs will launch their 12th startup accelerator cycle.

01 January 2019 (Tuesday): New Year’s Day, national holiday.

07 January 2019 (Monday): Coptic Christmas.

10-13 January 2019 (Thursday): International Property Show (IPS), Egypt International Exhibition Center

19 January 2019 (Saturday) Cairo Criminal Court scheduled hearing of Gamal and Alaa Mubarak’s stock market manipulation case

22-25 January 2019 (Tuesday-Friday): World Economic Forum (WEF) Annual Meeting, Davos-Klosters, Switzerland.

23 January 2019 (Wednesday) 50th Cairo International Book Fair.

25 January 2019 (Friday): Police Day, national holiday.

26 January 2019 (Saturday): Supreme Administration Court’s Uber / Careem appeal date, Egypt.

28-29 January 2019 (Wednesday-Thursday): Banking Technology North Africa, Nile Ritz Carlton Hotel, Cairo, Egypt.

7 February 2019 (Thursday): Egypt Building Materials Summit, Venue TBD, Cairo, Egypt

11-13 February 2019 (Monday-Wednesday): Egypt Petroleum Show, Egyptian International Exhibition Center, Cairo.

19-20 February 2019 (Tuesday-Wednesday): The Solar Show MENA 2019, Nile Ritz Carlton Hotel, Cairo, Egypt.

26-28 February 2019 (Tuesday-Thursday): 22nd International Conference on Petroleum Mineral Resources and Development, Egyptian Petroleum Research Institute, Nasr City, Cairo, Egypt.

27-30 March 2019 (Wednesday-Saturday): Cityscape Egypt 2019, Egypt International Exhibition Center, Nasr City Cairo.

20-22 April 2019 (Friday-Sunday): Spring meetings of the World Bank and International Monetary Fund, Washington, DC.

25 April 2019 (Thursday): Sinai Liberation day, national holiday.

28 April 2019 (Sunday): Easter Sunday, national holiday.

29 April 2019 (Monday): Easter Monday, national holiday.

01 May 2019 (Wednesday): Labor Day, national holiday.

06 May 2019 (Monday): First day of Ramadan (TBC).

June 2019: International Forum for small and medium enterprises (SMEs).

05-06 June 2019 (Wednesday-Thursday): Eid El Fitr (TBC).

10-13 October 2019 (Tuesday-Sunday) Big Industrial Week Arabia 2019, Egypt International

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2018 Enterprise Ventures LLC.