TL;DR

CBE to list two banks on EGX, Ittihadiya says state-owned companies are for sale. (Speed Round, Last Night’s Talk Shows)

Abraaj said to make offer for Mohandiseen’s Al Salam Hospital + a correction to our report of yesterday. (Speed Round)

CI Capital, Beltone won’t merge brokerage operations, Attalla says. (Speed Round)

BP says it has no intention of backtracking on pledges to ramp-up Egyptian production. (Speed Round)

Committee will set pricing or private-sector use of state-owned gas infrastructure (Energy)

Chinese President Xi Jinping arrives in Cairo today. (What We’re Tracking Today, Speed Round)

Is a cabinet shuffle in the offing? (Speed Round)

Egyptians take men’s and women’s title at Squash’s Tournament of Champions (Sports)

“Hot air on a cold mountain”: Davos kicks off today amid predictions of doom and gloom for emerging markets. (What We’re Tracking Today, The Macro Picture)

By the Numbers

WHAT WE’RE TRACKING TODAY

Chinese President Xi Jinping arrives in Cairo today after what feels like months of preparation for the Chinese leader’s visit. On the discussion table are a number of finance packages and investment projects, which we’ll be keeping an eye on.

“Hot air on a cold mountain”: The World Economic Forum is kicking off its annual meeting in Davos today focusing on the so-called “fourth industrial revolution.” Two takes in the mainstream press are worth reading: The New York Time’s Landon Thomas Jr. gives his take on what Davos is set to look like this year with emerging markets not quite panning out the way everyone hoped. “I have long maintained that the emerging-market hype was oversold when it was clear that what was going on was high commodity prices and cheap money,” says Dani Rodrik, an expert on globalization at the Harvard Kennedy School. “It is going to be a different type of Davos this year.” The Independent’s scene-setter has a great overview of trends shaping the global economy this year (hint: the “fourth industrial revolution” ain’t one of ‘em) — and delivers our favourite lead on Davos this year: “It’s time, once again, for some hot air on a cold mountain.” It’s a wrap-up of the usual suspects: Oil, China, Greece, the refugee crisis — and add to it a Brexit… Reuters, meanwhile, gets in on the act with “As leaders chill in Davos, emerging economies going downhill fast,” and the Wall Street Journal is going big on the front page this morning with “Rising debt in emerging markets poses global threat.”

Speaking of doom and gloom: We’re introducing a new section today: With the macro backdrop having taken center stage in global business coverage, we’re rolling out “The Macro Picture” to pull together the news and thought pieces that we think might be useful to you as you shape your own worldviews. The Macro Picture appears immediately after Speed Round and before Egypt in the News.

With regard to the potential development of a regional natural gas hub, Cypriot President Nicos Anastasiades will share a stage with Mustafa Akinci, leader of the Turkish-occupied northern Cyprus to appeal to the international elite at Davos for their support of a unified Cypriot state. “A reunited Cyprus would also need international investment to help the peace process work,” Reuters reported.

WHAT WE’RE TRACKING THIS WEEK

On Thursday, President Abdel Fattah El Sisi is holding a mini-summit in Addis Ababa for GERD negotiations with Ethiopia and Sudan to push for increasing Egypt’s water share. El Sisi will be there for the 26th African Union Summit (21-31 January).

ON THE HORIZON

This coming Monday is national holiday in Egypt in observance of the 25 January Revolution and / or of Police Day, depending on which corporate giveaway calendar you received (or which government official you listen to).

The Central Bank of Egypt’s Monetary Policy Committee will meet a week from tomorrow (on Thursday, 28 January) to consider interest rates.

Education for Employment will hold a networking and learning meeting 1-3 February at the Four Seasons Nile Plaza. The nonprofit network’s aim is to create economic opportunity for unemployed youth in MENA by providing them with training in vocational and professional skills in high demand by the local labor market — and connecting graduates to jobs. The group is also piloting entrepreneurship programs. Hosted by a different EFE affiliate each year, the event sees senior EFE board members and CEOs meet with donors, employers, government leaders and influencers. AmCham chief Anis Aclimandos is chairman of the board of EFE Egypt and hosting this year’s event.

LAST NIGHT’S TALK SHOWS

Last night’s talk shows were heavy on the sap, with anchors lauding the state’s efforts in bringing back Egyptians taken hostage in Libya. The business segments didn’t sound quite as interesting in comparison to stories of torture at the hand of militants.

Lamis El Hadidy interviewed Rasmala Egypt Managing Director Ahmed Abou El Saad over the phone about the Central Bank of Egypt’s apparent decision to float two public banks. “This is one of the most important statements the CBE has made during the past three years as it set the identity of the Egyptian economy,” Abou El Saad said. “There have been different powers, each pulling the economy in various directions, and we didn’t know which it would take — leftist, capitalist or something in between.”  It is clear now, he said, that the strategy is cooperation between the private and public sector.

El Hadidy expects the pickings to be among Banque du Caire, Arab African International Bank (AAIB) or the United Bank of Egypt (UBE). Abou El Saad agreed, saying “[Banque du Caire] is ready for its shares to be sold publicly and has been preparing for this step for a while.” Abou El Saad believes the second bank will be the UBE, but is rooting for AAIB. “UBE is a union of three banks that were struggling. Today it is in a much better [position], but it doesn’t represent the best front to join the bourse,” he argued. “On the other hand, the AAIB is very profitable and in a very good financial state.”

(Hard as it may be to remember given the institution’s competitive metabolism, AAIB is state-owned: 49.37% held by the CBE, with the Kuwait Investment Authority holding an equal stake. United Bank, meanwhile, was formed in 2006 as part of the CBE’s consolidation drive at the time. It was created from the merger of the Egyptian United Bank, Islamic Bank for Development and Investment and the Nile Bank.)

Abou El Saad hoped the move to float two banks would not spur a knee-jerk reaction decrying privatization. Only 20% of the banks would be sold, he said, meaning the state would retain control. “When shares are sold to the public, it means the budgets will have to be made public; there will be transparency. We will be able to monitor the money and their performance, which helps eradicate corruption,” he added.

Ibrahim Eissa spent about an hour of his airtime on Al Kahera wal Nas dissecting a CAPMAS report on immigration. The report by the state-run statistics agency revealed that 95% of Egyptians emigrants go to Arab countries, particularly Saudi Arabia and Libya. It also indicated that youth represent only 23% of emigrants and that 47% worked in construction and building. Doesn’t sound anything like the American dream, if you ask us.

Eissa then hosted both Hany Samir, founder of the General Syndicate for Finance and Tax Workers, and Safwat El Nahhas, a member of the committee that drafted the Civil Service Act, which ended in a literal screaming match.

Samir argued that several exceptions to the laws set out in the act makes it intrinsically unfair, to say nothing of the fact that it takes a toll on a third of the population, if we consider the families of those working in the administrative body. “Are you being unfair to us because we are weaker?” he screamed at El Nahhas.

El Nahhas retorted that the exceptions to the law are aimed at entities like GAFI, which has full autonomy over its administration. The government’s administrative body, he said, is in “very bad shape.” It’s overburdened with employees receiving low salaries without promotions because there’s simply no room to grow, he added. “In Egypt, we have one state employee for every 13.6 citizens; some European countries have an employee for every 150 citizens,” El Nahhas said. “The state has been employing anybody needing a job.”

** 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.

SPEED ROUND

State-owned companies for sale: Egypt is planning to list shares in state-owned banks and companies on the EGX, Reuters reports. And while this isn’t exactly news, this time the report quotes a statement directly from Ittihadiya’s spokesperson. “The coming period will witness offerings of parts of the capital of successful Egyptian companies and banks on the bourse,” spokesperson Alaa Youssef said following a meeting between President Abdel Fattah El Sisi and ministers to discuss “the stock market’s decline.” The statement did not specify the companies that would be floated. Reuters’ Ehab Farouk reminds us that the last time the state listed some if its holdings was in 2005, when shares from Telecom Egypt, AMOC and Sidi Kerir Petrochemicals were floated. This could be the first showdown between the executive and judicial branches of government and the newly elected House of Representatives, since the latter arguably has the authority to block any sale of state-owned assets. More importantly, even after the sales, the judiciary, through the administrative courts, can reverse the transactions (and have done so in the past). On the other hand, the Supreme Constitutional Court can deem any law passed by the legislature to block asset sales unconstitutional.

The CBE is already considering listing two state-owned banks, CBE Governor Tarek Amer exclusively told Reuters’ Arabic service. Don’t expect either of the big two to hit the bourse, though: National Bank of Egypt and Banque Misr are not for sale. (An unsurprising development given their role in backing both fiscal and monetary policy.) The issuances will be for capital increases, reducing the government’s stake in both yet-to-be-named banks by 20%. He adds that the CBE is considering selling its stake in one of its projects to a strategic investor as well, also without giving any details. Reuters’ Ehab Farouk narrows it down, noting that the government owns NBE, Banque Misr, Banque du Caire, United Bank, around 50% of AAIB and around 20% of Bank of Alexandria. Amer had also qualified the statement from Ittihadiya to note that the state will only float “successful” companies.

Top global emerging markets PE player Abraaj has made an offer to acquire Al Salam Hospital in Mohandiseen, hoping to add it to a portfolio that already includes Cairo Medical Center, Cleopatra Hospital, Nile Badrawi Hospital and Al Shorouk Hospital, according sources close to the deal speaking to Al Borsa. Al Salam hospital’s shareholders are reportedly leaning towards selling Abraaj a controlling stake, but not 100%, say the sources. Abraaj’s expansion plans will also see it compete with Indian investor B. R. Shetty for an EGP 2 bn Alexandria Medical City project, the source adds. The news comes after Rep. Ayman Aboul Ela demanded on Monday that the House of Representatives investigate the PE outfit’s healthcare investments, making antitrust allegations and accusing it of setting out to “destroy” the sector. A Health Ministry official speaking to Al Borsa says Abraaj’s activity will have no impact on the pricing of government-sponsored healthcare services.

Speaking of Abraaj, we have a correction: We mistranslated a statement made by Abraaj’s Mustafa Abdel-Wadood yesterday. Al Borsa quoted him last March as saying Abraaj only controls 300 beds of a market that has more than 100k beds, an estimate that goes up to 180k beds once public hospitals are included. H/t Hassan B.

CI Capital, Beltone will not merge brokerages, Attalla says: CI Capital and Beltone will not see their brokerage arms merged if OTMT’s acquisition of CI Capital goes through, CI Capital CEO Mahmoud Attalla tells Al Borsa. Instead, CI Capital’s CIBC would handle institutional investors, Dynamic would continue to run the retail business and Beltone will be dealing with foreign and Arab investors. Beltone will lead the international expansion plan for the group, Attalla adds, starting with the Dubai Financial Market. Speaking on its upcoming M&A transactions, CI Capital deputy CEO Hazem Badran says the firm will press forward with acquisitions in 2016 including an unnamed logistics company in 1Q2016 and CIB’s leasing arm Corplease. He adds that CI Capital will also press ahead with four planned IPOs this year, Al Borsa reports in a separate piece.

The Trade and Industry Ministry will drop international quality and environmental standards as a requirement for its new import registry, says the ministry’s First Deputy Saeed Abdullah. The ministry will also allow imports from retailers and manufacturers. The decision was ratified on Tuesday and will come into effect two months after being officially announced. The move is an attempt to forestall punitive import restrictions on Egyptian goods by other countries as a result of the ministry’s new regulations, Al Borsa reports. Abdullah denied that the decision means the ministry will back down from implementing the import restrictions announced last month.

China General Nuclear Power Group will propose building a nuclear power in Egypt. The group will make the announcement during President Xi Jinping’s visit, the head of the company’s Africa Division tells Al Borsa. Egypt awarded Russia a contract late last year to build Egypt’s first nuclear power facility at Dabaa.

More from the China financial aid rumor mill: Egypt will receive a USD 300 mn grant from China for infrastructure development in the new Suez Canal Axis, a government source tells Al Borsa. A high-ranking Chinese diplomat, meanwhile, confirmed that Xi’s trip will net Egypt some USD 10 bn in agreements on, presumably, a mixed bag of investment, aid and possibly deposits at the CBE.

BP has no intention to backtrack on its pledge to ramp up production at recent discoveries in Egypt, aiming “to double … gas production in Egypt before the end of this decade,” BP North Africa regional President Hesham Mekawi tells Reuters. “Egypt is … aggressively signing exploration contracts, renegotiating production prices and lobbying companies to speed up projects even as firms worldwide scale back,” the wire reports. BP currently produces around 1.4-1.5 bn cubic feet of gas per day in Egypt. Through joint ventures with Italy’s Eni and the government, it currently produces 10% of Egypt’s oil production and 30% of its gas. The move comes despite crude prices hitting 12-year lows and the company announcing it would cut 5% of its global workforce. Major discoveries, such as Zohr, provide “a big incentive to the players who are here and maybe others considering investing in Egypt to do more … it proves what BP has believed for many years — that the Nile Delta is a world-class gas basin,” says Mekawi.

The development partners for Eni’s Zohr field will be announced this year, The National’s LeAnne Graves writes. Several companies are reportedly interested in developing the field, but Eni’s priority now is “to finalise the development plan to submit to the Egyptian government.” Eni notes that it has not yet committed to any of the potential partners.

As we mentioned in our talk show roundup yesterday, demerged Amer Group companies Porto Group Holding and Amer Group Holding both executed share buybacks at a premium to Monday’s closing price. Porto Group bought 125 mn shares back at a premium of 22.5% to Monday’s closing price and Amer also moved to buy 125 mn shares back at a 22.8% premium. Both companies cited an “inexplicably low share price” as the reason behind their moves.

Did you get a fuel smart card last summer? If, like us, you didn’t, you might want to consider getting on that. The Ismail government is preparing to launch the second phase of the fuel smart-card project, sources tell Al Mal. The Finance Ministry has called on e-Finance to revive the cards’ usage at gas stations and to put together a public service announcement ahead of an official statement on the cards from the cabinet. This “mandatory phase” was expected to take off last summer, but was postponed indefinitely by President Abdel Fattah El Sisi. In recent months, the ministry printed 5.7 mn fuel smart cards and distributed them to traffic police.

Parliamentary roundup: The Civil Service Act will be among the 19 remaining laws up for a vote by the full body of the House today. The bill was rejected by the House Manpower Committee last week. Al Wafd party MPs denounced the law and said that they would vote down the bill when it comes up. The remaining laws include the House of Representatives Act, the Electoral Districts Act and the Political Rights Act, deemed constitutionally crucial by the House Speaker. The House Suggestion and Complaints Committee held a stormy debate on another snubbed bill, the Mineral Resources Act, which was attacked by a number of MPs, hailing mostly from Upper Egypt, Al Ahram reports. After it finishes wading through the corpus of legislation enacted in the past three years, the House must vote to ratify or reject the government’s agenda in February.

Is a cabinet shuffle in the offing? Al Masry Al Youm cites “sources” as claiming that as many as six ministers could exit stage left around the time the Ismail government presents its agenda to the House, including a handful who have completed the “missions” for which they signed up and others who are asking to be allowed to return to civilian life.

The Ismail cabinet held its weekly meeting on Tuesday, making three primary decisions:

• Approved signing an MoU with China that would see Egypt become part of the Chinese “One Belt, One Road” initiative. Under the MoU, both countries agree to cooperate on joint infrastructure projects and expand trade. The policy is meant to foster greater economic cooperation in Asia, Europe and East Africa through the land-based “Silk Road Economic Belt” and the oceangoing “Maritime Silk Road” initiatives;
• Allowed the Egyptian Electricity Transmission Company to contract Siemens, Alstom, ABB Group and EGEMAC to expand eight transmission stations, including the Bahteem, Obour and Naga Hamady stations;
• Approved establishing a marina in the Ain Sokhna resort of Galala Beach.

THE MACRO PICTURE

Were the first two weeks of the year just a hiccup? Qatari stocks yesterday surged the most in more than a year and led a Mideast-market rally as valuations became more exciting, Bloomberg reports. Qatar’s QE Index jumped 5.5%, its first rise in nine days, the EGX registered a 2.63% increase (taking its two-day gain to 5.9%) and Saudi Arabia’s TASI was up 4%. “The Mideast rally is part of a rebound across emerging markets,” as Brent crude prices also rose, touching USD 29.69 per bbl. Former IMF Chief Economist Olivier Blanchard saw this coming. While he noted that there could be structural weaknesses globally emanating from a slowdown in China, he believed that “to a large extent, herding is at play” and was causing the global slowdown. In a nutshell, “if other investors sell, it must be because they know something you do not know. Thus, you should sell, and you do, and so down go stock prices.” He blames this on uncertainty stemming from politics, the new Federal Reserve regime and doubts hanging over the Chinese economy. Even though he warns that the uncertainty could cause the slump to be self-fulfilling, Blanchard says, “If it becomes clear within a few days or a few weeks that fundamentals are in fact not so bad, stock prices will recover, just as they did last summer, and this will be seen as a hiccup.”

If you you’re not optimistic, outright pessimism might be overdone: And speaking about the notion that China might drag down emerging markets — and the global economy with them, the Financial Times sides with Blanchard, noting that “in the echo chamber of Davos business leaders will no doubt whip themselves into a state of fevered anxiety and risk aversion as they contemplate these worries, remote from the real world.” They’re wrong, the paper says, for multiple reasons, starting with the fact that “where China is concerned, the transition away from an excessive export and investment orientation is already making progress.” Read: “Contrarian investors see signs of life.”

Then again… Global growth prospects in 2016 are even worse than we thought, the IMF said yesterday as it cut its growth forecast for the year to 3.4% from 3.6%. The culprits? A commodity price slump and its knock-on effect on Middle East oil producers as well as Brazil’s political gridlock, which is set to push it deeper into recession, Bloomberg says. IMF Chief Economist Maurice Obstfeld warns, “This coming year is going to be a year of great challenges and policy makers should be thinking about short-term resilience and the ways they can bolster it, but also about the longer-term growth prospects.” Check out the landing page for the update on the World Economic Outlook, download the full note (pdf), watch Obstfeld present the update (run time: 5:47) or read Obstfeld’s blog post on the subject.

Adding to the general doom and gloom: A new report by the International Energy Agency states the obvious, but does so in powerfully quotable language as it declares that the world oil market may “drown in oversupply” this year. The agency blames warm weather, slowing emerging market demand and rising supply — and suggests oil could still fall below its current 12-year low. Read the IEA’s statement here, or check out coverage in Reuters, Bloomberg, the Financial Times or Guardian, as your personal reading preferences dictate.

EGYPT IN THE NEWS

It’s a mercifully quiet morning for Egypt in the international press, with the most-covered stories — pyramids aside — being news of Chinese President Xi Jinping’s visit today. See coverage in China’s state-run Xinhua news agency or by Russia’s Sputnik.

WORTH READING

Alexander Litvinenko, the man who solved his own murder: “This week, the [UK] inquiry into the death of Alexander Litvinenko will deliver its findings. The former Russian spy was poisoned with a cup of tea in a London hotel. Working with Scotland Yard detectives, as he lay dying, he traced the lethal substance to a former comrade in the Russian secret service.” (Read, c.6,600 words)

WORTH WATCHING

Muslims challenge extremist preachers on the streets of London, in this trailer for a UK Channel 4 documentary. (Watch, running time: 2:40)

ENERGY

Committee will price private-sector use of state-owned gas infrastructure, Khaled Abu Bakr says
Egypt’s government will announce within weeks the creation of a committee to price the private sector’s usage of the natural gas network, says TAQA Arabia’s Executive Chairman Khaled Abu Bakr. This will allow the private sector to use national infrastructure to import gas for a fee and is a step toward forming the Natural Gas Regulatory Authority. Abu Bakr says it took the state three years to acknowledge that there was a gas shortage. Now, he says, the door is open for private sector players to import gas at international prices. (Read in Arabic)

BG’s Cypriot Block 12 acquisition approved, eyes exports to Egypt LNG terminal
The Cypriot government approved BG Group’s acquisition of a 35% stake of its offshore Block 12 concession from Noble Energy. The agreement is reportedly worth USD 165 mn, according to Cyprus Mail. Pending now are some routine technical issues, including having BG Group agree to the existing production-sharing agreement with the Cypriot government. Cyprus Energy Minister Giorgos Lakkotrypis expects BG Group to submit its own comments and thoughts on the development plan, noting its potential to expedite production from the Aphrodite field given its liquefaction terminal in Egypt. He also adds that BG Group expressed interest in the Cypriot exclusive economic zone, but did not provide any details. (Read)

EGPC in talks with ADNOC over fuel shipments, facilitated payment terms
EGPC is in talks with Abu Dhabi National Oil Company (ADNOC) over fuel shipments with facilitated payment terms, a senior official tells Daily News Egypt. A previous contract between EGPC and ADNOC ended in October 2015. Daily News Egypt says EGPC had entered into a one-year USD 9 bn contract with ADNOC, but it was suspended after just five months. The source did not explain why the contract was suspended. (Read)

Qarun sets USD 325 mn for investment next fiscal year
Qarun Petroleum, an Apache JV, has allocated nearly USD 325 mn for its investment budget for FY2016-17. The plan is to drill 38 exploratory wells and increase production by 37 bbl of oil equivalent per day. The company had been pumping investments into addressing maintenance and fuel consumption, leading it to reduce its cost of production by 16% in 1H2015-16, according to the company’s chairman. (Read in Arabic)

MANUFACTURING

XD EGEMAC looks to increase market share to 50% by 2020
Electrical transformer manufacturer XD EGEMAC plans to increase their market share to 50% from 35% over the next five years, says the company’s vice chairman. XD EGEMAC is looking to gradually raise the domestic component of its products, in line with its local production strategy, to avoid FX-related issues. (Read in Arabic)

HEALTH + EDUCATION

Saudi Fund for Development allocates EGP 930 mn to Kasr El Aini Hospital development project
The Saudi Fund for Development has allocated the equivalent of EGP 930 mn toward the Kasr El Aini Hospital development project, says Ahmed Qatan, the Saudi Ambassador to Egypt. The loan will be paid back over 20 years and carries a five-year grace period, he adds. (Read in Arabic)

Cabinet greenlights first authority governing mandatory doctor training
The cabinet greenlit a project to create the first authority governing mandatory doctor training yesterday, says Health Minister Ahmed Emad. The authority will be based at the National Training Institute and will be in charge of setting standards for medical training, he adds. Around 1,000 of the 9,000 medical students graduating every year are appointed positions at university and military hospitals, the majority of whom never receive proper training, says the minister. Promotions within the health ministry will be based on certifications issued by the authority, which will be headed by the Prime Minister and appointed by the Health Minister. (Read in Arabic)

No flu epidemic in Egypt, health sector employees vaccinated, says Health Minister
The H1N1 strain of flu currently making the rounds in Egypt is caused by seasonal changes and is not considered an epidemic, says Health Minister Ahmed Emad. All health sector employees have been vaccinated, he says, adding that the ministry has 170k doses of flu vaccines with a 150k shipment arriving soon. (Read in Arabic)

TELECOMS + ICT

Court adjourns lawsuit to nullify TE’s float to 15 March
A Cairo court adjourned a lawsuit filed to nullify the float of 20% of Telecom Egypt (TE) until 15 March, according to a TE disclosure. The State Commissioner’s Authority had ruled TE’s IPO prospectus, which was endorsed by EFSA in 2005, to be invalid, according to Mubasher English. (Read in Arabic)

El Kady promises faster internet in six months, new ICT legislation
ICT Minister Yasser El Kady appears to be tacitly defending TE’s monopoly on data infrastructure, saying TE’s EGP 4.5 bn upgrade to the network will lead to faster internet speeds in six months, Al Mal reports. A Pharos report blames TE’s monopoly for slowing internet speeds to 78% of the contracted capacity of users. On a related note, El Kady says  the ICT Ministry submitted telecom and communications legislation to the cabinet for review, ahead of submitting them to the House of Representatives. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Al Amal Group invests EGP 60 mn into new pickup model, feeding industries
Al Amal Group, the official agent in Egypt for China’s BYD and Russia’s Lada, is looking to assemble a new pickup model at its Tenth of Ramadan factory ahead of its release in mid-June, Chairman Hassan Suleiman tells Al Mal. The new model includes a Ford cabin and an Isuzu engine, he adds. The group invested EGP 40 mn in the Tenth of Ramadan factory and EGP 20 mn into feeding industries that manufacture domestic components, says Suleiman. (Read in Arabic)

EgyptAir is looking into signing an MoU with Chinese state-owned aerospace and defense company Aviation Industry Corporation of China (AVIC) to establish a maintenance center in Egypt to serve Africa, Daily News Egypt reports. Chairman of EgyptAir Holding Company Sherif Fathy and a Chinese delegation from AVIC met to discuss the project as well as other future ventures.

BANKING + FINANCE

Regulator reviewing Beltone Capital fair value report
The Egyptian Financial Supervisory Authority (EFSA) is reportedly currently reviewing the fair value report for Beltone Capital’s shares, issued by Grant Thornton, according to Beltone CEO Hazem Barakat, reports Daily News Egypt. The EGX’s negative performance will not change Beltone’s decision on the IPO, says Barakat. Beltone Capital’s board agreed on a fair share value of EGP 27.28, according to Reuters. (Read)

UNB cancels transfer fees for expats in UAE to Egypt
United National Bank is waiving transfer fees on transfers made by Egyptian expats in the UAE to to Egypt until 30 June, Al Borsa reports. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Schneider Electric ready to participate in 1.5 mn feddan project
Schneider Electric will participate in the government’s 1.5 mn feddan reclamation project by running the project’s wells on solar power, says Head of the Industry Department at Schneider Electric Egypt and North Africa Mohamed Shahin. The company plans to apply for well-operating tenders and provide technical support to investors who buy the land, he adds. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Egypt needs EGP 50 bn in infrastructure investment
Egypt needs EGP 50 bn in infrastructure investment, says Deborah L. Wince-Smith the President of the Council on Competitiveness, according to Al Shorouk. In particular, investments are needed for the development of the Suez Canal. Wince-Smith sees room for growth in investments in roads, electricity and sewage networks. She also says expanding PPP networks will encourage innovation. (Read in Arabic)

Public debt grows to EGP 2.3 tn, foreign debt drops to USD 46.1 bn in 9M2015
Egypt’s public debt grew to EGP 2.3 tn as of 9M2015 from EGP 2.1 tn in 1H2015, according to a CBE report. Egypt’s foreign debt dropped USD 46.1 bn during the same period, down from USD 48.1 bn in 1H2015. Bank deposits grew to EGP 29.3 bn in October, EGP 19.4 in local currency and EGP 9.9 bn (USD 1.4 bn) in hard currency, Al Mal reports. (Read in Arabic)

SPORTS

Egypt dominates Squash Tournament of Champions
Egyptians won the men and women’s Tournament of Champions in New York’s Grand Central Terminal. World number one Mohamed El Shorbagy won the men’s title and Egyptian number two Nour El Sherbini won the women’s prize. This year’s event had the biggest prize fund in the tournament’s history as it offered parity in prize money for the first time. Notable: In the women’s final at the high-profile tourney, El Sherbini beat Amanda Sobhy — an American national team member and Harvard class of 2015 grad whose father is, yes, Egyptian. H/t Hannah B. (Read)

ON YOUR WAY OUT

The 21 Egyptians who were held in Libya have returned home safely, Al Masry Al Youm reports. President El Sisi was present to welcome them at the airport, according to an Ittihadiya statement. In light of this, El Sisi urged Egyptians to work on national development projects in Egypt until stability is restored in Libya, Al Ahram reports. The 21 Egyptians had been held by armed factions in Libya since 31 December.

Journalist Mona Iraqi has been acquitted, Ahram Online reports. Iraqi filed an appeal against her six-month prison sentence and a fine of EGP 10,000 that she received on libel and defamation charges. Iraqi led a television crew filming a police raid of a bathhouse in December 2014, falsely accusing the patrons of debauchery. The 26 men arrested during the late-night raid were acquitted in January 2015 due to insufficient evidence.

Alexandria court postpones case against Hesham Genena to 16 February, reports Al Mal. Genena is accused of spreading misinformation and harming national security, and the case calls for his removal as the head of the Central Auditing Organization.

Viber launches Public Chats in Africa and the Middle East, the company announced yesterday. Public Chats is a social channel for “live discussions that Viber users can follow, like and share with their community.”