State to own 24% of The Capital Cairo. Orascom-IPIC consortium seeks USD 1.95 bn facility. Sawari Ventures launches USD 50 mn VC fund. UK pulls report on Brotherhood investigation. El-Sisi forms EEDC working group to follow-up on projects + plan next year’s gathering.

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WHAT WE’RE TRACKING TODAY

Israeli elections today: Netanyahu has promised to not allow the creation of a Palestinian state under his premiership if re-elected.

In elections news closer to home, we may know more later today about when Egyptians may head to the polls to elect a House of Representatives. A government committee reviewing election legislation is due to meet today to iron-out kinks in at least two pieces of legislation, having been at work since the Supreme Constitutional Court struck down the elections act in the run-up to the Sharm economic conference. Ahram Online’s Gamal Essam El-Din has an interesting piece on how it could break, based apparently on a discussion with a member of the 11-person committee: ‘Three scenarios expected for Egypt’s parliamentary elections‘.

HAPPY ST. PATRICK’S DAY, whether you celebrate with a day off, green beer or by wishing your father a Happy Birthday.

THE WEEK AHEAD

The 48th Cairo International Fair begins on Wednesday and runs through 27 March at the not-burned-down International Conference Center in Nasr City; it’s slogan for the year, according to Al-Mal, roughly translates as “A forum for the love of Egypt.” Some 700 companies are slated to exhibit.

Thursday is Taba Liberation Day, which is a national observance, but not a national holiday (ie: there’s still work, and the kids are still going to school. One out of two isn’t so bad, is it?).

And be forewarned: Saturday is Mother’s Day in Egypt. Make reservations now.

LAST NIGHT’S TALK SHOWS

After four days of non-stop coverage at the EEDC Egypt’s talk show hosts seem to have lost their voices. The entire Kahera Al Yawm team was off last night and Lamees El Hadidy was nowhere to be seen.

Ibrahim Eissa who does not appear to have been in Sharm El Sheikh was by far the most energetic talk show host last night. He gave his take on the EEDC in the simplest of terms targeted towards viewers who witnessed the last three days in Sharm El Sheikh but aren’t quite sure what to make of it.

“The economic conference has given the world confidence that they can invest in Egypt. Most of the projects that were announced are infrastructure projects. These are the types of projects that attract large sums of money. They bring in money and create lots of jobs. We are pouring concrete so that you can build a building,” said Eissa. You can’t get any simpler than that.

“Sharm El Sheikh was a huge success on every level. President Al Sisi passed this test and graduated with highest honors. After seeing such an impressive performance on the economic front I can’t help but wonder why we can’t tackle other critical issues in our country with the same seriousness and enthusiasm. The renewal of the religious discourse and education are crucial matters need to be addressed with the same professionalism that we witnessed in Sharm El Sheikh,” said Eissa. “Now that we have put the economy on the right track we can no longer neglect the rest of it.”

On Al Sisi’s closing speech at the EEDC, Eissa said, “The President’s popularity has skyrocketed after the EEDC and those who claim otherwise (foreign and Egyptian) are delusional. You might not like him, you may disagree with him but you cannot deny his popularity. He is loved. Start by admitting that and then you can debate anything you wish.”

Youssef El Housseiny, who was in Sharm El Sheikh, wins the prize for the talk show host with the most stamina as he appeared in his regularly scheduled time slot with a recap of the conference and praise for some of its unsung heroes; the support staff including the now famous ushers, the security personnel, the Ministry of Interior, and the Armed Forces. “Security was a major concern but once again we have proven that when we want to do something we can do it. The security personnel behaved honorably and professionally. The entire city of Sharm El Sheikh made us proud.”

El Houssieny was however quite critical of Prime Minister Ibrahim Mahlab’s closing speech at the EEDC. “It was unscripted and too emotional for this type of event. I also fail to understand why he chose to mention that he is unhappy with the local media’s criticism of the government. What does this have to do with anything? Why should the foreign attendees care about this?”

SPEED ROUND

El-Sisi forms cabinet-level working group to follow-up on EEDC, prepare next year’s summit:The lead story in Al-Ahram‘s digital edition this morning at time of dispatch was headlined “President discusses implementation of EEDC projects with ministries, urges speedy implementation; Gulf funding and deposits to arrive within days,” suggesting tomorrow could see a lively meeting of the Council of Ministers despite the palpable exhaustion of cabinet members by Sunday night. Yesterday’s meeting was attended by cabinet economic group, Prime Minister Ibrahim Mahlab and Central Bank Governor Hisham Ramez — most of whom, presumably, would become members of the group, whose lineup was left undefined. The group will be charged with reporting weekly to Ittihadiya on progress across the portfolio of projects and investments announced in Sharm. Also notable: Ahram claims Ramez told the group that the of the deposits pledged by GCC countries in the new USD 12.5 bn aid package would arrive “within days,” a development that hopefully bodes ill for the black market for FX.

Speaking of which: The EGP remained stable against the USD on the parallel market on low appetite yesterday as participants essentially held their breaths waiting to see what impact on flows the Sharm conference might have, Al-Borsa suggested.

Orascom-IPIC consortium seeks USD 1.95 bn in syndicated facilities for power station: Orascom Construction is planning to raise USD 1.95 bn in syndicated loans to finance the USD 3 bn first phase of a 3 MW coal-fired power station in Egypt. Orascom said the first phase of the power station project would be funded through roughly 80% debt and 20% equity, according to Reuters. The news came after the company released a statement noting that its consortium with Abu Dhabi’s International Petroleum Investment Company (IPIC) closed a supplementary development agreement with the Sisi administration for the project. Orascom Construction noted that National Bank of Abu Dhabi will be acting as the project’s co-financial advisor and will be supporting the project as part of the Banking Consortium. The initial mandated lead arrangers, underwriters and bookrunners will include AAIB, CIB, Arab Bank, Banque Misr, National Bank of Abu Dhabi, National Bank of Egypt and QNB Alahli. The facility is to be built near El Hamrawein Port on the Red Sea Coast.

OF NOTE TO SOME OF YOU: If you’re interested in funding for the energy and renewable energy projects announced in Sharm, you may want to jump ahead to our Energy, Renewable Energy & Subsidy Reform section today.

State to own 24% of The Capital Cairo: The government will control 24% of The Capital Cairo, swapping the value of the land for its equity stake, the Housing Ministry said yesterday. The government will also extend basic infrastructure to the city, with the Alabbar-backed company responsible for infrastructure within city limits, Al-Borsa reports. (Meanwhile, can there be a decree to rebrand the city so we needn’t call it The Capital Cairo?)

While the state’s contributions to investment agreed in Sharm will kick in immediately, most will find financing only in the FY2015-16 budget, Planning Minister Ashraf Al-Araby said yesterday. Al Araby also noted that a mechanism to track the projects and plans will be made available to the media and the general population “soon.” (Read in Arabic)

Family-friendly real estate developer Amer Group announced net earnings of EGP 246.5 mn (up 7x from FY13) on total revenues of EGP 2,168.2 mn (up more than 2x year-on-year). Boding well for future revenue recognition, the company reported a 44% rise in new real estate sales to EGP 4.1 bn in FY14. The group has completed the issuance of an EGP 201 mn securitized offering and is now moving forward with the spin-off of its real estate business into a new company named Porto Group. In other Amer news, the company recently noted it has inked an MoU with the Housing Ministry to build two real estate projects in New Cairo worth a combined USD 3 bn. Worth checking out: Highlights on page 3 of the pdf version of the earnings release, which cites Nielsen market research suggesting the marketing juggernaut has 3x the brand awareness of its next-closest competitor and commands a steep price premium among its target market.

Sawari Ventures announce USD 50 mn venture capital fund: Sawari Ventures announced the establishment of a USD 50 mn VC fund, Al-Borsa reports. Sawari Ventures and its subsidiary, startup incubator Flat6Labs, have invested in over 80 companies in Egypt, Saudi Arabia, and the UAE. Many of these startups have garnered international acclaim and have succeeded in employing hundreds of individuals, the newspaper notes. Sawari’s partners — Ahmed Alfi, Hany Sonbaty and Wael Amin — get a shout-out for the fund from Wamda, which notes the fund will close by year’s end and will look to make investments in “12 to 15 growth-stage technology startups, in the range of USD 2-3 mn each, in Egypt, Tunisia and Morocco.” About 70% of the fund’s capital will be invested in Egypt, Amin is quoted as saying.

On a related note: Flat6Labs alumni Omar Gabr and Instabug get big love from Quartz in a Q&A: ‘What it’s like to build a startup in a country that’s rebuilding itself.’

Counting all the Egyptians: CAPMAS will hold a meeting this morning as part of its planning for the 2016 census as it gears up for the once-a-decade event, Al-Mal reports.

Egypt’s Hafez Ghanem has re-joined the World Bank as the Vice President for the Middle East and North Africa following a stint as a Senior Fellow at the Brookings Institution. In this video (viewing time 04:35), he reflects on his reasons for returning the WB and the challenges ahead. Ghanem’s bio can be found here, while Youm7 has a piece on his appointment claiming Ghanem says the Bank will double-down on its commitment to Egypt.

UK looking to avert row with Egypt, KSA on Brotherhood report? UK media is reporting that Prime Minister David Cameron pulled a report on the Muslim Brotherhood that allegedly concluded the Ikhwan should not be classified as a terrorist group in the United Kingdom, but that the group should be kept under closer surveillance. The FT speculates the report won’t come out before the general election scheduled for this May, if at all; Foreign Office declined to confirm the speculation when contacted by Ahram Online. The Independent also has a worthwhile roundup on the issue.

Tony Blair is reportedly preparing to announce he is stepping down as the Quartet’s envoy to the Middle East, with reaction ranging anywhere between the Guardian’s glee (‘Good riddance, Tony Blair – you’ve been tolerated as Middle East envoy for too long‘) to the BBC’s restraint (‘Tony Blair’s Middle East role could be ‘reconfigured’). Most worth checking out is the FT’s ‘Tony Blair poised to step back from Middle East peace envoy role‘, which the BBC credits with having thrust the story into the news, claiming that Blair’s role is seen by the U.S. as being increasingly untenable. Blair appears to be lobbying to remain somehow engaged in the Mideast ‘peace process.’

Best URL on the Tony Blair story goes to the UK’s Telegraph:http://www.telegraph.co.uk/news/politics/tony-blair/11474157/Tony-Blair-had-no-credibility-in-Middle-East-process-where-all-sides-would-roll-their-eyes-at-mention-him-says-US-official.html

Russia’s President, Vladimir Putin, made a public appearance for the first time since 5 Marchyesterday. He ordered Russia’s navy on to a state of full combat readiness in the Arctic and met with the President of Kyrgyzstan, BBC reports.

The euro fell briefly to a 12-year low against the dollar yesterday hitting USD 1.0457 after falling 3.2% last week alone. “The euro could hit parity, or one-to-one against the dollar, within a matter of trading sessions,” the head of financial markets research at Rabobank told CNBC.

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WORTH READING

‘Did Gulf States Miss the Chance to Cut Their Oil Addiction?‘ Last week Bloomberg examined why the Gulf has not taken advantage of falling oil prices to begin reductions to fuel subsidies. “Salim Al Aufi, Oman’s undersecretary for oil and gas, likens attempts to cut the reliance on oil during a price slump to acting ‘with a gun pointed at your head.’ If you have to make decisions under pressure, ‘you will probably make the wrong ones,’ he said March 3 in Muscat during a panel discussion on the impact of the oil shock.”

And while an advisor to the Saudi oil ministry said at a recent conference in Doha that “global crude consumption is strengthening, and prices will stiffen as demand matches supply” by 3Q2015,  the Fed on Monday reported that U.S. crude production has continued to increase despite falling prices.

‘Taking Illiberalism Seriously’: The German Marshall Fund of the United States (GMF), a non-partisan public policy think tank, published last week a highly engaging 3-page brief that challenges popular and common assumptions about Turkey’s growth and descent into one-man rule: “Erdoğan’s 11-year tenure as prime minister was marked by an exceptionally successful period in Turkish history, but his mode of governance is deeply illiberal. While Erdoğan’s sympathizers argue that he is authoritarian but successful, Erdoğan’s core team argues that he is successful because he is authoritarian.” (Read)

AUDIO

Salil al Sawarim, [The clashing of the swords] the Daesh chant / anthem, whose translated lyrics may be found here, is parodied in these two massively enjoyable remixes: the shaabi crowd-pleaser Salil el 7alawa and Salil el Romanci for the hopeless romantics out there. H/t David Bagby.

EGYPT IN THE NEWS

The new capital city project unveiled at the EEDC continues to sustain negative, skeptical coverage in the foreign press, currently the lead story on Egypt. The Washington Post published on Monday: ‘Egypt’s strange USD 45 bn plan to abandon Cairo as its capital city,’ which draws heavily from The Guardian’s piece from Monday: ‘A new New Cairo: Egypt plans £30bn purpose-built capital in desert‘ which again in turn is based heavily on AUC professor Khaled Fahmy’s guest post on the Egyptian blog Cairo Observer. Gizmodo ran similar coverage, also referring to Fahmy. The Guardian’s article quotes urban development expert David Sims, who has some especially harsh things to say about the proposed project: “It’s just a bunch of crazy figures … The scale is huge, and there are questions like: how are you going to do the infrastructure? How are you going to get the water? How will they move all these ministries? In other words, I think it’s just desperation. It will be interesting to see if anything comes of it, but I rather doubt it.”

Setting aside the knee-jerk editorial response to automatically condemn nearly any initiative of the Egyptian government of any nature whatsoever —  and setting aside the less-than-diplomatic language — David Sims cannot simply be dismissed out of hand. He is one of the — if not the — leading experts on urban development issues in Egypt. He has no chip on his shoulder with regard to the country; he’s made it his home, and he’s been on the ground working on urban development in Egypt since the 1970s.

In positive news related to Egypt’s urban development, The United Nations Office for Disaster Risk Reduction (UNISDR) carries statements from Minister of State for Urban Renewal and Informal Settlements Laila Iskandar in ‘Egypt moves on slum resilience.’ While the article’s focus is on the granting of land rights, which is something that various Egyptian governments, starting from Nazif’s cabinet, have attempted to tackle, and which is not the panacea it is often advertised as being, the article still carries a fairly important claim by Iskander: “we decided to take bold new steps, mainly one of no forced evictions. Prior to the establishment of my ministry in 2014, there had been many cases of forced evictions.” Egypt has in the past come under criticism, namely from Amnesty International, for its policy of forced evictions. If this commitment is sustained, it would amount to a significant commitment to human rights by the Egyptian government (one likely to go largely unnoticed in the daily tirades of the Western press).

Why does any of this matter? First, it’s estimated that the majority of Cairo’s population live in informal settlements. As a result of decades of the state’s near-absence from these areas, Islamists have often filled this vacuum, making them hotbeds of social unrest, as most recently witnessed in Matariya, and in the past most famously remembered in the siege of Imbaba. If the state is truly committed to challenging the ideology of groups such as the Ikhwan, then quite frankly the government needs to step up and address the needs of these areas, which it has started to do with President Sisi’s administration through the creation of Iskander’s ministry. Secondly, with regard to real estate development, informal settlements have sprung up in a number of prime locations, and how the state deals with these residents in a fair, equitable and effective manner is something which any serious thinker who has a stake in Egypt’s stability and success should always keep in mind.

As Iskander notes in the UNISDR article above: “The authorities have launched a landmark project in the Egyptian capital’s Maspero Triangle district, where informal settlements of around 12,000 people are tucked in among high-end real estate. Poor residents were fearful that urban gentrification projects would force them out, and granting them property rights calms those fears and also encourages them to spend money on improving their homes, Minister Iskandar said.”

The second lead story on Egypt in the international press is news that former Supreme Guide of the Ikhwan Mohamed Badie has been sentenced to death, which has become an evergreen story of sorts, as the man has been sentenced to death several times over in separate trials. The BBC notesthat Egyptian state news is reporting that the death sentence from one of these trials involving Badie and 13 other members of the Ikhwan have been referred to the mufti for an advisory judgment. It should be noted that there is huge disconnect between domestic and international reactions to news of death sentences in Egypt, something which both sides should try to become aware of and appreciate.News of mass death sentences in Egypt cause huge outrage abroad, such as the verdicts for which judge Nagy Shehata has become well-known. To put it gently and with all due respect, many Egyptians seem to display a degree of cognitive dissonance on the issue: They immediately dismiss news of these types of sentences, as it is common knowledge in Egypt that most of these verdicts will not meet the mufti’s advisory endorsement. Many Egyptians, when pressed, will reply that these initial sentences are issued by the judiciary as a message that they are serious about the country’s security. But this begs the question: If the perception of a majority of Egyptians is accurate, and these initial sentences are mostly symbolic, then what exactly is achieved in assuring the public about security? If nothing is gained in terms of domestic public perception, then is the trade-off in international perception really worth it?

Troll yourself, Installment II: Jack Shenker’s hit-job on the EEDC for The Guardian goes to great pains to criticize the organizers, the message, the politics and economics.. To his credit, he briefly calls out the Ikhwan for their hypocritical propaganda against the EEDC, noting “The Brotherhood declared last week that Egypt is not for sale, forgetting that exactly the same multinational corporations currently signing deals in Sharm el-Sheikh were fawned over and flogged to by Morsi as well.” If Shenker is going to go into this level of detail over Egypt’s political and economic woes, diving into ‘well, if I were running Egypt’ mode, it ironically comes off as incredibly shallow to devote nearly 2,000 words on how every successive Egyptian administration has failed to meet the goal of social justice, while only offering up the following throwaway: “although foreign investment could potentially be harnessed for the good of Egypt’s 90 mn-strong population, as long as the state and its economy continues to be under the iron grip of military generals who brook no opposition and corruption continues to run rampant, it is hard to see how Sisi’s open-for-business Egypt will turn out any different from Mubarak’s.” So, to review, Shenker doesn’t approve of the IMF, nor Egypt’s capitalist class, nor its military who “carve up and commodify the country.” Well that doesn’t really leave anyone left, does it?

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A MESSAGE FROM PHAROS HOLDING: Are analysts under-valuing Egyptian companies? The Stern School of Business’ Aswath Damodaran has backed Pharos’ assertion that analysts may be undervaluing Egyptian companies due to an error in commonly accepted terminal value calculation methodology. Learn more here.
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ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Scatec Solar signs MoU for 50 MW solar PV plant, to invest USD 300 mn over 2-3 years
Scatec Solar press release | 16 March 2015
Norwegian solar energy firm Scatec Solar signed an MoU with the New and Renewable Energy Authority (NREA) at the EEDC to secure the land for a 50 MW solar photovoltaic power under the Government’s new Feed-In Tariff Scheme (FIT). Scatec Solar incorporated “Scatec Egypt for Solar Energy SAE” to develop, finance, build, own and operate the first 50 MW of solar power plant that the company has been awarded as part of the first phase of the Feed-in-Tariff program for solar and wind energy launched by the Government of Egypt. “Scatec Solar is impressed by the determination of the Government of Egypt to address the energy challenges by inviting experienced solar companies to rapidly build up large-scale solar PV capacity in the country. Together with our finance partners we target to develop, build, own and operate 150 – 200 MW of new solar power plants in Egypt over the next two-three years, investing more than USD 300 mn” said Scatec Solar’s CEO Raymond Carlsen in the company’s release. (Read)

Tharwa Investments sign USD 11 bn MoU with EEHC for coal-fired power plant
Zawya | 15 March 2015
Tharwa Investments has signed an MoU yesterday what it is claiming is the largest single-site coal-fired power plant. The MoU for the USD 11 bn, 6 GW plant was signed with the Egyptian Electricity Holding Company, according to a company press release picked up by Zawya. (Read)

E-nara in negotiations to borrow USD 35 mn to fund solar power station
Al Borsa | 16 March 2015
E-nara said it is in negotiations for a USD 35 mn loan to finance a 22 MW solar power station. Negotiations are currently taking place with the EBRD, the AFD, and the World Bank as well as local institutions including NBE to provide 70% of the project’s cost, E-nara’s CEO said. The power station will be built on land owned by the company is Aswan, but E-nara is also looking into joining alliances to bid for other Ministry of Electricity projects. (Read in Arabic)

One thousand government buildings to run on solar energy
Al Shorouk | 16 March 2015
The Ministry of Electricity is working on making one thousand government buildings run on solar energy, according to the ministry’s spokesperson. Solar panels have already been installed atop 30 buildings so far, the spokesperson said, and the one thousand-building target is only the first phase of the project. (Read in Arabic)

Purchase price for electricity from conventional sources to be announced in May
Al Mal | 16 March 2015
The government’s assessment for its purchase price of conventionally-sourced electricity from the private sector is expected to be ready by May, according to a source at the Ministry of Electricity. The ministry also said it will cooperate with consultancy offices to promote investments to generate electricity using coal, mazut, and natural gas. The ministry’s assessment aims to promote BOO power generation project opportunities in Dairout and Beni Suef as well as other projects. (Read in Arabic)

OIL & GAS

Kuwait Energy, Dragon Oil sign research and exploration deal in Iraq with EGPC
KUNA | 15 March 2015
EGPC signed an agreement with Kuwait Energy and Dragon Oil for oil research, exploration and production in Iraq. The deal makes EGPC a partner with the two companies in their Block 9 of the Iraqi licence in Basra. EGPC’s Tarek El Molla said he is “pleased to announce EGPC’s first international investment. The merit of this investment is its contribution to building an economic relationship between Iraq and Egypt… This partnership with Kuwait Energy comes as the fruit of the Strategic Alignment Agreement signed in 2011.” (Read)

Kuwait Energy’s investments in Egypt are not capped – Chairman
Al Borsa | 16 March 2015
There is no cap on Kuwait Energy’s investments in Egypt, according to Chairman Manssour Aboukhamseen. He said the fall in oil prices has no impact on investing in Egypt as the decision to support Egypt’s economy is a political one. Kuwait Energy currently has USD 600 mn in investments in Egypt, but Manssour said the company has plans to increase them. (Read in Arabic)

Butane shortage to be completely resolved by next week
Al Shorouk | 16 March 2015
The shortage in butane gas canisters will be resolved completely by the start of next week, according to the deputy head of the petroleum sector at the federation of chambers of commerce. The chamber of commerce, however, is concerned about the new mechanism of distributing the butane gas canisters, as they do not yet know how pricing decisions will be made. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Agriculture ministry begins marketing second 1 mn feddans reclamation project
Al Borsa | 16 March 2015
The Ministry of Agriculture has begun marketing the second 1 mn feddans of its reclamation project. In total, the ministry’s project includes 4 mn feddans for reclamation. The ministry will not stipulate a fixed set of crops for investors, but will require them to not grow water intensive crops as the project depends entirely on groundwater. (Read in Arabic)

EMRA expects 10,000 tons of phosphate to be produced from the Aswan concession
Al Mal | 16 March 2015
10,000 tons of phosphate are expected to be produced for the Aswan concession, according to the Egyptian Mineral Resources Authority (EMRA). EMRA also expects three thousand tons of iron to be mined per month for a site in southern Aswan. The authority is now looking to resume operations in all mines that had seized production. (Read in Arabic)

MANUFACTURING

Huawei to manufacture 10 mn electricity smart-meters domestically
Amwal Al Ghad | 15 March 2015
Huawei said it will manufacture 10 mn smart-meters domestically in collaboration with the Ministry of Electricity to use in the homes of residential clients. This comes as part of Huawei’s drive to increase investments in Egypt and the government’s drive to attract investments and strengthen ties with China. The cabinet had announced the formation of a special unit, headed by the PM himself, to oversee relations with China. (Read in Arabic)

REAL ESTATE

El Shams is considering developing a residential project in Borg El Arab
EGX Press Release | 16 March 2015
Building a USD 5 bn residential project in Borg El Arab is currently being considered by El Shams for Housing and Development, according to a statement sent to the EGX. The company is also considering two separate projects in Al Amriya in Alexandria and Salam City in Cairo. El Shams is still assessing all three projects and said it will notify the bourse once a decision has been taken. (Read in Arabic)

TELECOMS

CIT ministry signs MoU to develop commercial registry office
Al Borsa | 15 March 2015
A USD 1 bn MoU was signed between the CIT Ministry and Sheikh Saleh Kamel to upgrade the Commercial Registry Office. The PPP project was developed by the CIT ministry and the Ministry of Supply and presented at the EEDC. The project seeks to improve the working environment commercial registry offices, improve the services provided, create new job opportunities, and increase the offices’ profitability. (Read in Arabic)

BANKING & FINANCE

Islamic Development Bank to finance Sharm passenger terminal
Al Shorouk | 15 March 2015
The Islamic Development Bank signed a EGP 3.5 bn agreement with the Ministry of Civil Aviation to finance the development of a passenger terminal at the Sharm Airport. The project is set to increase the terminal’s capacity to allow for 10 mn passengers to use it each year. Given that funding has been secured, the technical details will be outlined and the project will be presented to specialist companies, the civil aviation minister said. (Read in Arabic)

TOURISM

EGOTH assessing offers to redevelop the Cosmopolitan Hotel
Al Borsa | 16 March 2015
The Egyptian General Company for Tourism and Hotels (EGOTH) said it is currently assessing bids presented to redevelop the Cosmopolitan Hotel in Cairo. There are two offers presented for the EGP 58 mn project, one from an Egyptian investor and the other for a Saudi. EGOTH awaits the financial and technical details of the offers before awarding the contract. (Read in Arabic)

First phase of Golden Pyramids’ City Stars Sharm project ready in 1H2016
Al Mal | 16 March 2015
The first phase of the Sharm City Stars project will be delivered in 1H2016, according to Golden Pyramids. The first has an investment cost of USD 500 mn, with the amount expected to be spent in 1H2015 amounting to USD 270 mn. In efforts to finance its projects, Golden Pyramids is issuing USD 400 mn in bonds on three tranches. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

SCA negotiating a USD 450 mn bridge loan, no special tax incentives to SCZone projects – Mamish
Amwal Al Ghad, Al Mal | 15-16 March 2015
The Suez Canal Authority is negotiating a USD 450 mn bridge loan with local banks, the head of the Suez Canal Authority, Mohab Mamish, said. The bridge loan will have a tenor of six months to one year and will be used to cover SCZone funding until long term financing is secured. Investors at the new Suez Canal projects will not be given an extra tax incentives, according to Mamish. Investors there will be taxed using the regular tax code with its maximum rate of 22.5% which will be applied for FY2015/16 onwards. (Read in Arabic andhere)

Ministry of Tourism opens tender for international marketing campaign
Al Mal | 16 March 2015
The Ministry of Tourism has opened a tender for its international marketing campaign for the period spanning 2015 to 2018. The tender process is inline with ministry’s plans to significantly increase the number of tourists visiting in Egypt over the upcoming years. Interested parties can request tender documents starting from tomorrow, 17 March.(Read in Arabic)

Eight companies sign agreements for reclamation of 300,000 acres
Al Borsa | 16 March 2015
The government signed several agreements with Egyptian and Saudi Arabian agriculture companies for the reclamation of 300,000 acres of land at a cost of EGP 20 bn. The eight companies involved in the project include Almarai, Savola, and the Egyptian-Saudi Arabian Farming Company. Prime Minister Ibrahim Mahlab attended the signing of the agreements. (Read in Arabic)

FourWinds Capital Management established  a USD 1 bn investment fund
Al Mal | 16 March 2015
FourWinds Capital Management, the asset management and financial services arm of the FourWinds Group of Companies, has established a USD 1 bn investment fund for Egypt-based infrastructure projects. According to representatives from FourWinds Capital Management, the decision to establish was due in large part to the growing attractiveness of the Egyptian market. (Read in Arabic)

REGIONAL

Delek and Noble Energy sue Israel over royalties
Globes | 15 March 2015
Delek Group and Noble Energy are suing the State of Israel for NIS 58 mn over claims the state collected excess royalties on gas produced from the Tamar field. A few months ago, the two companies were charged “tens of mns of shekels” and have decided to sue for the return of the amount plus interest. The companies had not managed to supply all the gas undertaken to supply under a contract with Israel Electric Corporation (IEC) as production was forced to accelerate after gas shipments from Egypt were halted leading to the collapse of several wells. (Read)

ON YOUR WAY OUT

Government set to launch national project for social development: Prime Minister Ibrahim Mahlab will visit the governorate of Qena on Tuesday in order to launch the National Project for Social Development. (Read in Arabic)

BY THE NUMBERS

USD CBE auction (Monday, 16 March): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Monday, 16 March): 7.67 (unchanged from Sunday, 15 March)

EGX30 (Monday): 9,529.01 (-2.03%)
Turnover: EGP 497.1 mn (22% below the 90-day average)

WTI: USD 43.68 (-0.46%)
Brent: USD 53.44 (-2.25%)

TASI: 9,438.2 (-2.0%)
ADX: 4,365.2 (-1.4%)
DFM: 3,519.6 (-2.6%)
KSE Weighted Index: 442.3 (-0.5%)
QE: 11,761.1 (-1.7%)
MSM: 6,258.1 (-0.7%)