WHAT WE’RE TRACKING TODAY

Greece has five days to avoid bankruptcy by coming to terms with its creditors, European leaders said as a tense emergency summit broke up late yesterday, the Washington Post reports.

At last, it has happened: With barely a week to go, the long-anticipated Ramadan news slowdown appears to be starting. Enjoy it while it lasts, ladies and gentlemen.

Okay, so when can we eat? Maghreb will be at 7:00pm today, while fajr will be at 3:17am, according to Islamic Finder.

ON THE HORIZON

The first day of Eid will be Friday, 17 July, per calculations by the National Astronomy and Geophysics Research Institute. Neither Cabinet nor the CBE have yet weighed in on the matter.

LAST NIGHT’S TALK SHOWS

Lamees El Hadidy kicked-off her show with a discussion of the draft anti-terror bill. Yehia Qalash, head of the Journalists’ Syndicate, called-in to express outrage at the bill in general and article 33 in particular. According to Qalash, the draft, which has yet to become law, would eliminate all forms of opposition media, effectively bringing an end to freedom of the press, a fundamental right in the 2014 Constitution.

El Hadidy, while sympathizing with the plight of her fellow journalist, took a more neutral stance, describing the proposed law as necessary in the fight against terrorism.

Foreign Ministry spokesman Badr Abdelaty subsequently called-in to discuss the ministry’s ‘coaching’ of foreign journalists on their reporting of the war on terror. “We have not made these suggestions to limit the ability of foreign journalists to report on these attacks, but rather to ensure that international media outlets accurately portray these terrorist actions,” he said. Abdelaty went on say the ministry has not and never will demand media outlets write or disseminate any information on its behalf. That said, Abdelaty called on domestic and foreign journalists to employ the “highest standards of professionalism in their reporting,” particularly with regard to issues related to terrorism

El Hadidy transitioned to a discussion of the recent death of Mohamed Abdelkader Hatem, Egypt’s first Minister of Information. Comments on Hatem were entirely positive. Former minister of Governmental Affairs Samy Sharaf called in to pay his respects to his former colleague: “Hatem is one of the most professional and objective individuals I ever had the pleasure of meeting.” Sharaf then went on to describe some of the most important milestones in Hatem’s career, which included his establishment of Maspero.

The diminutive-yet-vocal Khaled Abubakr kicked-off Al Qahera Al Youm with a vapid discussion of the state of Egyptian villagers. “The state of Egyptian villagers has improved. Villagers are happy that electricity and gas shortages are no longer a problem during Ramadan. That said, problems still exists with regard to sewage systems. If the government were to dedicate the next year towards improving the sewage systems of the villages, that would substantially improve their livelihood,” said Abubakr.

Amr Adeeb appeared shortly after the conclusion of Abubakr’s monologue and dedicated the remainder of the episode to an examination of Qatar’s anti-terror law. “Qatar and Al Jazeera have persistently attacked Egypt’s proposed anti-terror bill, which they claim is in violation of human rights. Given its reputation as a protector of human rights, I thought we should take time to examine Qatar’s anti-terror laws,” said Adeeb, dripping in sarcasm. Adeeb and Abubakr then managed an article-by-article dissection, underscoring that the punishment for the vast majority of terror-related offenses under Qatari law is either death or life imprisonment.

Adeeb: “According to this article, anyone found guilty of damaging public property during a time of war will be executed. So if you damage a bus, while your country’s in a state of war, the state has the right to kill you. How gentle and merciful.”

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SPEED ROUND

At odds with market expectations, the Central Bank of Egypt kept the EGP steady at its auction yesterday, selling USD 39.6 mn at a cutoff price of EGP 7.7301 per USD, Reuters reported. The government went on a full-court offensive yesterday to back the central bank on the policy shift, joining CBE Governor Hisham Ramez, who made the rounds of TV and radio talk shows. Investment Minister Ashraf Salman called in to Lamees El Hadidy last night, making the case that devaluation will encourage FDI flows. He mentioned the Arla-Juhayna joint venture in which Arla Foods, a leading Danish dairy manufacturer, will own 49% of a new company that is 51% owned by Juhayna. The JV, called ArJu, will produce cheese, butter and infant formula: “This joint venture, which was officially launched today, is an example of the kinds of agreements that we expect to see in the near future.” Salman said Egypt recorded FDI inflows of c. USD 5.7 bn in the first six months of the year. “This is below what we were originally anticipating early in the year. We expected around USD 10 bn, which is not going to happen but we expect to see an additional USD 2.5 bn before the end of the year.” Also yesterday: Federation of Egyptian Industries chief Mohamed El-Sewedy has come out in favor of devaluation. The USD should be selling in banks today for EGP 7.8301.

Egypt considering USD 1 bn Eurobond issuance? The Mahlab government is preparing to issue USD 1 bn in USD-denominated bonds, a government source said. The proceeds of the bond sale will be used to pay for the country’s stake in the recently established Asia Infrastructure Fund. The issuance comes as part of a programme to issue USD 10 bn worth of Eurobonds, of which USD 1.5 bn have already been issued successfully, the source added. The government is waiting to for the right time in a bid to lock-in cheaper borrowing costs. (Read in Arabic)

Anti-terror bill’s controversial Article 33 amended? According to talk show host Amr Adeeb, the government is amending Article 33 of the proposed anti-terror bill. Under the amended draft, journalists who report information contradictory to official statements in cases involving acts of terrorism would be subject to a fine, not to the previously suggested two-year prison term.

The amended parliamentary elections law has been delivered to Prime Minister Ibrahim Mahlab, sources told Al Ahram. Once the amendments are approved by the cabinet, the law will be passed on to President El Sisi for his approval. In other legislative news, cabinet has ratified amendments to the tax law, decreasing personal income tax from 30% to 22.5% and postponing implementation of the capital gains tax for two years. The amendments are now awaiting presidential approval, Al Mal reports.

The executive regulations of the investment law have apparently passed Cabinet, according to Prime Minister Ibrahim Mahlab speaking with Radio Misr.

Gov’t says cotton import ban doesn’t violate GATT; textile companies warn of price rises: The ban on cotton imports imposed this past Monday doesn’t violate Egypt’s commitments under the General Agreement on Tariffs and Trade (GATT), Al-Borsa quotes an unnamed government official as saying, adding that Egypt has the right to impose temporary protectionist measures to shelter an industry undergoing change. While farmers are rejoicing, textile and garment producers aren’t exactly in the spirit of the season as Ramadan limps to a close: Chamber of Textile Industries chief Mohamed El-Morshedy says the measures will be harmful not just to textile manufacturers and garment makers, but to farmers themselves. El-Morshedy also warns textile prices will rise as much as 50% due to the ban. Egyptian cotton exports fell 30% to USD 83.8 mn in 2013-14 from the previous year, while imports surged 130% to USD 51.3 mn in the same period, reports Ahram Online, citing CBE figures. AgriMoney has a good English-language summary of the decades-long decline of Egyptian cotton, which has seen Egypt go from being “a net exporter of 1.5m bales in 1969-70 … to being a net importer of some 225,000 bales last season.”

The government is considering freeing investment in health and education from any stipulations or caps on pricing, Investment Minister Ashraf Salman said reportedly. In context, Salman noted that some international schools are constrained financially by regulations and are unable to raise tuition prices to ensure they’re able to deliver quality services. By law, the health and education sectors are not allowed to increase fees charged by more than 7% annually.

WiFi coming to Cairo Metro: The Transport Ministry has a finalized a plan to introduce WiFi to the Cairo Metro stations, a source at the ministry said. A tender will be issued to the telecom operators to provide internet service on board the underground, with riders being required to punch in their national ID numbers to gain access on the back of security concerns. (Read in Arabic)

Egypt will repay the last remaining tranche of Qatar’s deposit at the CBE, a source at the central bank told Al Masry Al Youm. The final tranche was turned into a bond in September that is now listed on the Irish Stock Exchange.

Clampdown on tax evasion gets small shot in the arm: The state’s stalled clampdown on tax evasion was given a leg up yesterday when the General Tax Authority and the Real Estate Tax Authority signed a protocol allowing them to exchange information. Al Ahram reports that the protocol aims to help create a more complete taxpayer database and combat tax evasion as part of the Finance Ministry’s initiative to improve tax collection. A committee will be formed to facilitate integration and information sharing between the two entities.

The sky isn’t falling for Qalaa Holdings’ EGP 1.7 bn capital increase. The investment company’s shares hit a 52-week low as media picked up on a disclosure noting that the company had no takers for the new shares on offer. The company has previously said that the capital increase would be covered through capitalization of liabilities arising from asset purchases. It’s the latest in Qalaa’s moves to acquire majority shares in its core subsidiaries (news release here and update here as a pdf download; see the first bullet on page four).

“Buy Greek stocks,” Yale professor and Nobel laureate Robert Shiller told CNBC, although he said he’s not rushing to invest too heavily in Greece, but that maybe he should. “I think a little bit in Greece, maybe. One feels fearful, though. I feel fearful about that. It seems awfully edge-of-the-cliff right now, doesn’t it?”

Credit where it’s due: Okay, so we complained a couple of days back about our national inability to own-up to mistakes and say — without qualification — ”We’re sorry.” In that light, we present the unfortunate tale of the folks who bought “Croissant Om Ali” from TBS, the home-grown pâtisserie chain. From its Facebook page last night: “It is with great sadness that as of today, we have officially discontinued the production and sale of this Ramadan’s product ‘TBS Croissant Om Ali’. This is the least we can do to apologize for an operational mistake that has resulted in food poisoning cases to some of our beloved customers.” What does an Om Ali croissant look like, exactly? This monstrosity right here. TBS is contacting affected customers and is offering to compensate them for medical expenses related to food poisoning through Tabibi medical services, which include house calls. The best thing to come out of the story for this writer is knowing that there are doctors in Egypt willing to make house calls. Find Tabibi online hereand or call their hotline at 16724 if you or your family are suffering from your poor dietary choices.

ICYMI: Samuel Tadros went on an epic rant on Twitter this past Monday night, reciting a litany of the Ikhwan’s failures, which started with the tweet: “People talking about MB gradualism in power, what exactly do they mean by that? That they didnt form a revolutionary guard? Is this the bar?” and took off from there. The remaining tweets may be viewed from his timeline here.

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A MESSAGE FROM PHAROS HOLDING

In-line with our expectations, CBE might shift to flexible FX regime

The governor of the Central Bank of Egypt noted during a nationally televised interview that periods of USD strength could be followed by periods of USD weakness against the EGP, alluding to a possible shift in Egypt’s currency exchange policies from a ‘crawling peg’ to a more flexible regime of ‘two-way volatility,’ as Pharos Research has been advocating for many months.

In line with our view, the CBE has executed a round of EGP devaluation against the USD as a way of offsetting the EGP’s appreciation against a number of other currencies, boosting competitiveness that had been negatively impacted in the bargain. For more details, click here.
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EGYPT IN THE NEWS

The top two stories on Egypt in the foreign press on Tuesday evening going into Wednesday morning are thereported arrests of four journalists one week ago, ahead of looming restrictions on reporting of terror statistics in contravention of official army statements, as well as news of President Abdel Fattah El Sisi’s meeting with the American Jewish Committee.

The Committee to Protect Journalists (CPJ) released a statement on Monday reporting that four journalists had been arrested in Egypt in the previous week: Wagdy Khaled of Al-Masriya newspaper, Mohamed Adly with Tahrir newspaper, Hamdy Mokhtar of news website El-Shaab El-Jadeed and freelance journalist Sherif Ashraf. The CPJ notes that this is in addition to the 18 journalists under arrest according to its latest census conducted at the beginning of last month.

The Council on Foreign Relations’ Elliott Abrams picks up where the CPJ statement leaves off, in a piece called Egypt: Prison by the Numbers: “eliminating freedom of the press is not a step toward crushing terrorism, and in fact it is harmful to the effort.”

The second lead story: President El Sisi meets with American Jewish Committee delegation,according to a press release from Ittihadiya, which notes that the delegation offered their condolences to the President for the victims of last week’s terror attacks.

The AJC’s statement reads “Egypt, a vital ally of the United States, faces stiff challenges — but we come away from our latest visit to Cairo impressed by President Sisi’s resolve to confront them,” said Bergman, after the group’s two-hour meeting in the presidential palace … Topics addressed in the course of AJC’s two days of meetings in Cairo included the regional implications of a prospective P5+1 nuclear agreement with Iran; increased instability across the Middle East and North Africa, and its impact on Egypt and Israel; enhancement of the U.S.-Egyptian relationship — including expanded economic ties; increased strategic cooperation between Egypt and Israel against Islamist terror; the prospect of expanded economic and people-to-people interaction between Egypt and Israel; Egypt’s agenda regarding Israel in international forums; the preservation of Egyptian Jewish heritage; and concerns about global and regional anti-Semitism.”

The meeting has been covered widely in the Israeli press.

WORTH READING

Israelis watching Egyptian movies every Friday night has apparently been a thing for decades.Jadaliyya published on Tuesday a fascinating interview with Eyal Sagui Bizawe, a an Israeli filmmaker of Egyptian Jewish ancestry, who has released a documentary on the phenomenon called ‘Arab Film.’

From the production company’s site: “It was truly a 70s Israeli ritual: sitting at home on Friday afternoon, watching the only channel of Israeli television while an Arab film was screened. We had never asked ourselves how the official Israeli television obtained these films while there were no relations with our neighbors. Why have we turned to be addicted fans of Egyptian comedies and melodramas, sharing the same cultural heroes and admiring the same movie stars, while Egypt was our arch enemy? The Arab film became a hatch to a world we could not reach, but most of us failed to see and understand it.”

Back to the interview: “The Arabic movie was never meant to be for an Israeli audience — it was intended to reach Arabic-speaking Palestinians — and so at the beginning there was not even translation. Then Jews started writing letters demanding subtitles, but the manager of the Israeli broadcast channel opposed this. After they really started to put pressure, the issue came to the Knesset, and after many debates they forced him to subtitle the films. Then, after Hebrew subtitles were allowed, a movement started to change the time of the film. It was originally broadcast at 6 p.m., but religious people started petitioning to have it broadcast earlier so it wouldn’t interfere with Shabbat. When they started Israeli television to target the Palestinians, no one ever imagined that Israelis would be the ones to fall in love with Arab films.” (Read Arab Film on Israeli Television: An Interview with Eyal Sagui Bizawe)

DIPLOMACY

In the opening act of a dance that will see Egypt deepen ties with India, President Abdel Fattah El Sisi sat down for extended talks with Mukhtar Abbas Naqvi, the Indian Prime Minister’s Special Envoy and Minister of State for Parliamentary and Minority Affairs. The meeting was announced by Ittihadiya in an emailed statement and is now front-page news in Al-Ahram, alongside ongoing coverage of the war on terrorand the Egyptian Armed Forces’ central role in the same.

ENERGY

EGPC signs agreement with Rosneft for oil products and LPG
Rosneft Press Release | 07 July 2015
Rosneft announced the signing of a term sheet with EGPC for prospective supplies of oil products and liquefied petroleum gas (LPG). “The document, signed in continuation of agreements reached at the St. Petersburg International Economic Forum, defines key terms of cooperation between the companies in the area of oil products and LPG direct supplies. Rosneft and EGPC expect binding agreements based on the agreed Term Sheet to be signed within the third quarter of 2015,” the press release said. Rosneft has been an accredited supplier of EGPC since the beginning of 2015. (Read)

Enppi signs agreements to provide engineering services for West Delta projects
Al Mal | 06 July 2015
Enppi signed an agreement to provide engineering services and designs to continue the development of the West Delta gas projects, Al Mal reported. The project centers on developing offshore gas condensates fields north of Alexandria with the aim of being able to collect the output and develop it in onshore facilities. There are also plans to connect the Rafin gas field to a new onshore facility. (Read in Arabic)

Suez Oil Processing commissions Foster Wheeler to assess new oil complex
Amwal Al Ghad | 07 July 2015
The Suez Oil Processing Company (SOPC) signed a agreement with Foster Wheeler to assess technically and financially the establishment of a new USD 500 mn complex to produce high-value base oils. The contract signing was attended by Oil Minister Sherif Ismail and the project comes as part of the Ministry’s drive to improve the efficiency of existing refining capacities as well as expanding them. SOPC is engaged in three projects currently including a coking plant, an asphalt production unit, and a vapor recovery unit. (Read in Arabic)

We have an electricity surplus, says Mahlab
Amwal Al Ghad | 07 July 2015
Egypt currently has an electricity surplus during the summer season, Prime Minister Ibrahim Mahlab announced. An extra 3,682 MW were added to the national grid at a cost of EGP 40 mn. The surplus was achieved by addressing back-due maintenance, restructuring the rid, and ensuring adequate supplies of fuel to power-generation stations. (Read in Arabic)

INFRASTRUCTURE

Mahlab inaugurates the Ain Shams sewage treatment plant
Al Mal | 07 July 2015
Prime Minister Ibrahim Mahlab inaugurated the Ain Shams sewage treatment plant yesterday following an extensive expansion project, Al Mal reported. The plant is considered one the largest of its kind in the Middle East and the expansion cost EGP 410 mn. The project was on hold for five years and only resumed operations last year. Following the expansion, the plant now has a capacity of 600,000 cubic meters per day and serves around 1.8 mn people in Cairo. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Poultry prices down 20%
Al Mal | 07 July 2015
Poultry prices are down 20% per kilo due to a 30% demand drop in the last few days, says the division of poultry traders at the Cairo Chamber of Commerce. The demand drop comes due to consumers orienting their spending towards Eid shopping for clothes and confectioneries.
(Read in Arabic)

MANUFACTURING

Orient Ceramics project EGP 300 mn sales by end of 2015
Amwal Al Ghad | 07 July 2015
Orient Ceramics aims to boost its sales 100% during this year, said Orient Ceramics president George Gamil. The company recently inaugurated a new line producing 140,000 square meters daily and is looking to launch a third line outputting 60,000 meters daily at a total cost of EGP 60 mn, he added. The factory’s total output after all production lines are functional is estimated at 72 mn meters annually. (Read in Arabic)

HEALTH & EDUCATION

Health Ministry reduces Sovaldi prices to EGP 1,600 per pack
Al Shorouk | 07 July 2015
The Health Ministry announced the reduction of the prices of hepatitis-C cure Sovaldi to EGP 1,600 per pack from EGP 2,400, according to the Ministry’s spokesperson. The reduction will apply once the first biosimilar is put on the market. Representatives from the Pharmaceuticals’ Chamber of Commerce said the Ministry did not inform producers of the price reduction, but noted that the price of the raw input has dropped to a quarter of its original cost. (Read in Arabic)

MED-EL opens Egypt’s first audiologic rehabilitation center
Al Borsa | 06 July 2015
MED-EL opened Egypt’s first audiologic rehabilitation center in Cairo. The company is offering free audiologic rehabilitation for three months for all patients who received cochlear implants and hopes to provide improved services, particularly to children. MED-EL is looking to increase partnership between the public and private sectors as well as NGOs in order to facilitate the reintegration of cochlear implant receivers into society. The company plans to establish two more centers in Alexandria and Upper Egypt. (Read in Arabic)

REAL ESTATE & HOUSING

Hassan Allam Holdings to invest USD 200 mn in energy
Al Borsa | 06 July 2015
Hassan Allam is planning to invest USD 200 mn in Egypt’s energy sector. The company is building a 50 MW solar power station in Aswan at a cost of USD 80 mn and is also collaborating on a BOO project with ACWA Power to build a  USD 2.5 bn, 2,250 MW combined-cycle power station. Hassan Allam has also established a renewable energy company with capital of USD 15 mn and is looking to collaborate with qualified companies under the feed-in-tariff agreements. (Read in Arabic)

SECON report 40% growth in profits
Al Mal | 07 July 2015
The Saudi Egyptian Construction Co (SECON) reported a 40% year-on-year rise in profit in FY2014, according to CEO Darwish Hassanein. SECON commence three projects in New Cairo, New Damietta and New Assiut worth EGP 2.5 bn, while continuing current projects worth EGP 2.2 bn. (Read in Arabic)

Housing Crisis over in two years, says Mahlab
Amwal Al Ghad | 07 July 2015
Prime Minister Ibrahim Mahlab expects the housing crisis to be over within two years, due to the government’s direction towards larger national projects for low- and middle-income housing. The government has built 90,000 housing units as part of the 1 mn homes project; 200,000 more will be complete shortly, he added. Mahlab also announced that the government will freeze bank accounts of any person or company infringing on state land, particularly along the Cairo-Alex Desert Road and Cairo-Ismailiya Desert Road areas.
(Read in Arabic)

TOURISM

Arab tourist arrivals up on back of Masr Qariba campaign
Zawya | 07 July 2015
Arab tourist arrivals to Egypt increased 21.4% y-o-y in the first five months of the year, the Egyptian Tourism Authority (ETA) said. The increase surpasses the growth rate for arrivals in general, which registered an increase of 9% y-o-y. “These statistics demonstrate the positive impact of recently launched campaigns that aim to attract more tourists from all over the world to Egypt,” the ETA noted, and the increase in visitors is in line with the Tourism Ministry’s “Masr Qariba” campaign. Arrivals from Saudi Arabia for the first five months grew by 67.2%, 48.6% more Kuwaitis visited Egypt during the period, and 48.3% more Emiratis. (Read)

TELECOMS & ICT

NTRA did not discuss lowering internet prices at its latest meeting
Amwal Al Ghad | 07 July 2015
The NTRA meeting yesterday did not involve any discussions about lowering internet service prices, a source told Amwal Al Ghad, saying the topic was avoided as Telecom Egypt has not yet completed assessed how much it can lower the fee it charges other ISPs for access to its network infrastructure. The meeting included some solutions to problems that have arisen following the introduction of MSAN cabinets. (Read in Arabic)

EgyptSat proposes EGP 300 mn satellite to MCIT
Al Mal | 07 July 2015
Global satellite communication solutions provider EgyptSat submitted a proposal to the Ministry of Communications (MCIT) to locally build a EGP 300 mn satellite, said president of EgyptSat Mohamed El Ghamri. The satellite, meant to service areas where 3G connection is weak, as well as cover the general MENA region, is to be built over three years, and EgyptSat would handle operations and maintenance, he added.(Read in Arabic)

BANKING & FINANCE

NBE will accept customs payments online through E-Finance solution
Al Mal | 07 July 2015
E-Finance is planning to launch a service allowing clients of the National Bank of Egypt to pay customs dues online, according to E-Finance Director Ibrahim Sarhan. E-Finance recently launched the first system to pay taxes through the same portal, he added. (Read in Arabic)

Banks study forming Contracting Insurance company
Amwal Al Ghad | 07 July 2015
The Egyptian Federation for Construction and Building Contractors is currently negotiating with three local banks the possibility of launching a Contracting Insurance Company meant to back the sector’s funding, as well as facilitate banking funding for contracting companies, sources told Amwal Al Ghad. The banks in question are NBE, Banque Misr, and Banque du Caire. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

GAFI to expand geographically, build another branch in Alexandria
Al Masry Al Youm | 07 July 2015
General Authority of Investment and Free Zones is building a new branch in Alexandria that will begin operations after the Eid break, GAFI chief Alaa Omar said. This comes as part of the Authority’s plan to expand its representation geographically and improve the service provided to investors. The expansion includes building a new branch at the Media Free Zone in Sixth of October. (Read in Arabic)

GAFI Report: 1048 companies founded last May
Youm7 | 07 July 2015
Nearly 1,050 companies were established in May 2015 with total capital of EGP 2 bn, a sharp uptick from 730 companies with total capital of EGP 1.3 bn established in the same month of last year, GAFI reports. Of the 1,048 companies formed, 467 were in Cairo, followed by 223 in Giza. Egyptians contributed EGP 1.6 bn capital to the newly formed companies, while foreign contributions amounted to EGP 191.8 mn. (Read in Arabic)

USD 54 mn settlement reached with Indo Rama
Al Mal | 07 July 2015
A USD 54 mn settlement was reached with Indian textile company Indo Rama over the Shebin El Kom Yarn Company, just before it reached international courts, according to Minister of Investment Ashraf Salman. The original asking price was USD 156 mn. Negotiations over the Tanta Flax Company with previous owner Abdel Elah El Kaaki are still underway, he added. Both companies were sold to foreign investors during the privatization policy, but the Egyptian Judiciary ruled against their privatization and demanded their return to the state, tasking the government with settling disputes with investors. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Government continues to sell Africa free-trade pact at home
Al Masry Al Youm | 07 July 2015
There’s little of substance to report after a forum on the proposed tripartite COMESA-EAC-SADC free-trade pact on Tuesday. Perhaps the most significant development is that Investment Minister Ashraf Salman continued to sell to a domestic audience the benefits of the pact to Egyptian industry and exporters. While there’s little domestic excitement about the prospect of a wide-scale free-trade agreement with Africa, the government’s commitment to ongoing talks should be seen in light of the Sisi administration’s drive to re-engage with Africa in general and the Nile Basin countries in particular. (Read in Arabic)

Egypt needs anti terrorism law, says Rashwan
Al Shorouk | 07 July 2015
Diaa Rashwan, former head of the Syndicate of Journalists and current head of the Ahram Center for Strategic Studies, said there are anti terrorism laws appearing gradually everywhere in the world, and Egypt needs to issue one, too. The Supreme Judicial Court is the only body capable of declaring a law or article unconstitutional, he said, highlighting that the government needs to take into account the opinions of the Supreme Judicial Council, as well as journalists opposing article 33. (Read in Arabic)

State can’t fight terrorism with laws alone, says Sabbahi
Al Shorouk | 07 July 2015
Former presidential candidate Hamdeen Sabbahi criticized the new draft anti-terror law, calling it an ‘old idea’ incapable of effectively handling the current threat. He went on to criticize what he characterized as the short-sightedness of the law, claiming punishments never deterred terrorists, and that the law does nothing to address the terrorism nurturing environment. “The law is a reaction not an initiative,” he said. Sabbahi also expressed his support for the Syndicate of Journalists opposing article 33 of the new draft. (Read in Arabic)

Free Egyptians Party sorting our internal rift over policy on Egypt’s new administrative capital
Al Shorouk | 07 July 2015
An internal dispute over party policy toward the nation’s proposed new administrative capital is largely behind the Free Egyptians Party, said party spokesman Shehab Wagih yesterday. The head of the housing committee in the Free Egyptians Party, Sherif Habib, was sacked recently by acting party head Essam Khalil for criticizing the Administrative Capital project without first “consulting the party.” Habib is meant to return to his post following the dispute. (Read in Arabic)

Decentralization is our top priority, says Minister of Local Development
Al Mal | 07 July 2015
Decentralization — economic and administrative alike — is at the top of the Mahlab government’s priority list, Minister of Local Development Adel Labib claimed yesterday. The new local administration law grants more power to local council to manage their financial resources, he added. The national project for local, societal and human development (Mashrou’ak) is a practical application of decentralization in all governorates, the minister added.  (Read in Arabic)

REGIONAL

Noble Energy to refuse further compromises over Israeli gas agreement
Times of Israel  | 07 July 2015
The delicate balance between the Israeli government and the multi-bn USD gas agreement with Noble and Delek faced further strain on Monday. Warning against further sanctions from the state — seen in the December agreement that forced both companies to sell off most or all of their holdings in the Tamar gas field over a six year period — Noble Energy’s Israel manager Binyamin Zomer issued a statement this Monday announcing that, “The concessions that we made over the last year are the maximum concessions we are ready to make … changing part of its framework could lead to collapse.” His remarks follow Netanyahu’s failure last week to win a Knesset majority to overturn calls from the Israel Security Agency to limit perceived monopolies in the gas industry. (Read)

Note: The above article from Times of Israel incorrectly states that the Israeli government is currently pursuing an antitrust inquiry; as the Jerusalem Post notes: “On Wednesday, however, Knesset members decided that they would not form a commission of inquiry into the way the government made decisions related to natural gas, voting down Meretz MK Tamar Zandberg’s proposal 55-37.”

ON YOUR WAY OUT

Tracking the fallout: In a slow news cycle, the domestic press continues to rehash ongoing stories, including further industry reaction to news that the Mahlab government has approve a proposal that EGAS will bill industrial consumers based on actual consumption and not contractual amounts.
CBE foreign currency reserves rose to USD 20.08 bn at June’s end from USD 19.56 bn a month earlier.

Egypt paid back USD 670 mn of debt to the Paris Club of creditors, the CBE said yesterday, as reported by Reuters. Debts to Paris Club countries dropped 18% y-o-y in 1Q2015.

The National Authority for Remote Sensing and Space Sciences has signed an agreement with Germany for a 2017 satellite launch, reports The Cairo Post

On that note: Is there hope for Egypt’s first Space Odyssey? Any discussion in favor of creating an Egyptian space agency is an uphill battle regardless of who’s doing the naysaying — there are those who immediately question the government’s ability to implement, while on the side of the government, the state is currently preoccupied with ongoing large projects such as the Suez expansion. However, an article published in US News & World Report from Al-Monitor earlier this week outlines the very practical need for such an agency: “[Egyptian scientist Farouk El-] Baz said in May 2015 that the lack of an Egyptian space agency has set Egyptian satellite technology back 50 years compared to the United States. ‘Egypt does not have radar satellites, nor those that take thermal images,’ he said.” Former chairman of the National Authority for Remote Sensing and Space Sciences (NARSS) Ayman El-Dessouki is quoted as saying “Egypt needs more advanced technology at the current time, and could use a space agency to monitor the country’s borders and coastlines through satellite imagery.” The article also outlines the possibility of establishing a joint Arab and or African space agency centered in Egypt, which is eminently doable in terms of financing and pooling together talent.

BY THE NUMBERS

USD CBE auction (Tuesday, 07 July): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Tuesday, 07 July): 7.92 (+0.04 from Monday, 06 July)

EGX30 (Tuesday): 7,752.94 (-1.50%)
Turnover:  EGP 352.3 mn (26% above the 90-day average)

WTI: USD 52.95 (+0.80%)
Brent: USD 57.41 (+1.54%)

TASI: 9,081.7 (-0.5%)
ADX: 4,724.5 (-0.6%)
DFM: 4,041.4 (-0.4%)
KSE Weighted Index: 416.3 (-0.5%)
QE: 11,936.1 (-0.3%)
MSM: 6,428.5 (-0.1%)