Shell would have “little appetite” for new Egypt production. EFSA approves insurance + leasing companies. WEO and Annual Energy Outlook released. Take off the veil day in May. Gas deficit widening, but supplies for fertilizers companies to rise? Book burning making headlines.
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WHAT WE’RE TRACKING TODAY
Emaar Chairman Mohamed Alabbar could face questions today at the company’s AGM over whether his involvement in outside businesses is detracting from his focus on the UAE’s highest-profile developer. Media reports have said some (unidentified) shareholders have been “concerned” since Alabbar announced his high-profile involvement in The Capital Cairo as well as Eagle Hills, which is building communities in countries including Serbia.
Just what we wanted: More members of parliament. If it’s Wednesday, there’s a cabinet meeting. On the agenda: Discussion of amendments to the laws on the House of Representatives and the Electoral Districts Laws which look set to add 22 seats for independents, bringing to 442 the total number of posts up for grabs should we have elections before Ramadan as promised. Ahram Online has the details.
The two day World Travel & Tourism Council Global Summit 2015 begins today in Madrid. Visit the official website here.
The Arab Fund for Arts and Culture Film Week 2015 takes place runs from today through next Wednesday. Find the schedule of films on AFAC’s website here and directions to Zawya Cinema in downtown Cairo here.
WHAT WE’RE TRACKING NEXT WEEK
23 April (Thursday): Central Bank of Egypt Monetary Policy Committee meeting
LAST NIGHT’S TALK SHOWS
The eight improvised explosive devices that damaged two electricity towers near Media Production City overnight Monday were the main topic of discussion on last night’s talk shows. The attack, which struck a little too close to home, had presenters Lamees El Hadidy, Amr Adeeb, Khaled Abu Bakr and Youssef El Housseiny seething with anger.
In a telephone interview with Amr Adeeb and Khaled Abu Bakr, Minister of Electricity, Mohamed Shaker presented a weak argument as to why there was no security to protect the two strategic towers that feed the entire Media Production City and some parts of Sixth of October City.
“Dr. Mohamed, didn’t you think this was important? If this isn’t important than what is,” said Adeeb. “We are not trying to criticize for the sake of criticizing and we know that resources are limited, but it’s very obvious that this was a prime target for the ikhwan. There is nothing they want more than to see us go off air.”
Abu Bakr continued with the aggressive line of questioning. “Can you please come and meet with Osama Heikal [the Head of Media Production City] tomorrow at 12:00 pm to assess the technical situation first hand? We need to have backup. If something like this happens we want to be sure that we can be up and running within minutes. Egyptian television and broadcast cannot be off air for more than a minute. When television goes dark, it is considered a coup.”
The clearly frazzled Minister said, “I can come, but I might not be free at 12/ I can come a little later.”
“Let’s admit that what happened last night was the result of negligence. Where are the security cameras? Where is this war on terror? There is only one man in Itahideyya who is going to take action,” said Youssef El Houssieny who went so far as to imply that it is time for the Prime Minister to submit his resignation.
SPEED ROUND
Following the acquisition of BG Group, “Shell will have little appetite for pursuing further production in Egypt — now becoming very much a domestic gas supply story — or technically challenging fields in the UK,” energy publication Platts suggests, as it expects Shell “will have shareholders who will expect reward for their patience, share buybacks and debt gearing to dial back as priority goals.” Meanwhile, at least one analyst is suggesting that the BG deal could spur further M&A activity. Duncan Goodwin, manager of the Baring Global Resources fund, says large oil & gas players are likely to increase their Brazilian and American operations through acquisitions, as reported by Citywire Global. “Our strongest conviction is that the large, integrated oil companies are structurally underexposed to lower cost crude in major basins. This present short-term risks to financing dividends, but more importantly risks to their longer term viability.”
EFSA approves insurance, leasing company licenses: The Egyptian Financial Supervisory Authority has given the green light to four companies to begin their activities: United Insurance Company, a property insurance provider, and Contact Insurance Brokerage will contest the insurance space, while subsidiaries of EFG Hermes and Wadi Degla Holding will provide leasing services, Al-Mal reports.
Two reports of note were released yesterday: The EIA released its Annual Energy Outlookpresenting long-term projections of energy supply, demand, and prices through 2040, and the IMF released its April 2015 update to the World Economic Outlook (WEO). Four forces are shaping the global economy in 2015, notes Olivier Blanchard the chief economist at the International Monetary Fund as the basis for this year’s World Economic Outlook:
- Global growth remains uneven;
- Weak banks and high debt levels weigh on growth;
- Oil prices declining by about 45%;
- the strengthening US Dollar.
The blog post summarizing Blanchard’s remarks can be found here, in video here (viewing time 04:12), with the report’s landing page here and the WEO full report here. For more context on the WEO, see FT’s ‘Five key takeaways from the IMF’s World Economic Outlook,’ by Chris Giles. (Read, paywall)
Egypt has joined China-led Asian Development Bank as a founding member, bringing the institution’s total number of founders to 50. Russia and Norway join Egypt among those recently who approved memberships. The Asian Development Bank, with preliminary capital of USD 50 bn, will provide aid for infrastructure projects in Asian countries and is expected to be fully established by the end of the year. In a statement, the Chinese Ministry of Finance said the decision came after careful deliberation among the Bank’s members, including China, India, Germany and Britain. A founding member in the Asian Development Bank enjoys the right to draft regulations and rules for both members and potential members. (Read in Global Post)
Egypt’s trade deficit down 20.7% in January 2015 -CAPMAS: Egypt’s trade balance deficit has dropped by 20.7% in January to EGP 19.45 bn, mainly on the back of falling oil prices according to CAPMAS and as reported by DNE.
Two electricity distribution towers were blown up on Monday night, causing a power outage at the Egyptian Media Production City (EMPC), as acknowledged in a statement by the Egyptian Company for Electricity Transport. Amwal Al Ghad notes that repairs to the towers are set to cost up to EGP 800k and will take 7-10 days. CBC Extra has video footage showing the destruction at the site and Al Borsa notes that all TV channels broadcasting from the city are experiencing a power cut and are currently powered using generators. Al Ahram says that two pylons were destroyed on Monday night, with a third blown up in Tuesday morning near the Sixth of October Industrial Zone. Daily News Egypt put the number of explosive devices used at the EMPC and the industrial zone at eight IEDs. Islamist mouthpiece Middle East Eye referenced anonline statement purportedly attributed to the ‘Revolutionary Punishment’ group, claiming responsibility for the attack, which they dubbed “a final warning” as part of “Operation Tongue-Cutting”.” (Read)
Supply and Domestic Trade Minister Khaled Hanafy said the state has resumed large-scale wheat purchases, Al Shorouk reports. The government plans to purchase 3.7 mn tons of wheat grown domestically for EGP 10 bn and is reportedly looking to build reserve levels. To increase storage capacity, the ministry is currently working on a project to create 25 new wheat silos, each with a capacity of 60k tons, financed using a grant from the UAE. Al Mal adds that the minister revealed the government is awaiting a presidential decree to begin its work on the grain storage and logistics hub project in Damietta.
Orascom Development Holding posts c.USD 37.01 mn net profit in 2014: ODH announced Tuesday that it moved to profitability in 2014, posting a consolidated net profit of CHF 36.2m (c.USD 37.01 mn), compared to losses worth CHF 167.5 mn (c.USD 171.3 mn) in 2013, as reported by DNE. Full year revenue increased by 13.1% to CHF 250.5 mn compared to CHF 221.4 mn y-o-y. (Read)
EGP 425 mn to upgrade informal settlements -Madbouly: NUCA announced yesterday that it is willing to support the Ministry of Urban Development and Informal Settlements’ initiative to upgrade homes with an EGP 425 mn, according to a statement by Minister of Housing Moustafa Madbouly, Daily News Egypt reports.
EFG Hermes Securities Brokerage wins “Best Middle East Broker” at the EMEA Finance Middle East Banking Awards, according to a statement issued yesterday. The Securities Brokerage division was also named “Best Broker” in Jordan and Kuwait, the fifth time it has taken the title for Kuwait, as well as receiving “Best Broker” in Egypt at EMEA Finance’s African Banking Awards.
Writer Cherif Choubachy calls for women to take off their veils at May rally in Tahrir: In aFacebook post on 6 April, Egyptian journalist and writer Cherif Choubachy called on Egyptian women to gather in Tahrir in May and remove their veils, recalling Hoda Sharaawi, an Egyptian political activist and founder of the Egyptian Feminist Union who stopped wearing niqab in 1922. Al Azhar has since been dragged into the situation under pressure from Islamists who want Azhar to stop the demonstration. Azhar released a statement saying that “Muslim girls are free to show their religious teachings, just as unveiled girls are free to show their hair.” (Read)
Nazif, YBG could face prosecution on “manipulation of funds” charges: The Administrative Prosecution Authority asked yesterday that the Public Prosecutor’s Office bring charges against former prime minister Ahmed Nazif and former finance minister Youssef Boutros Ghali. The two are reportedly “accused of ‘manipulating’ funds … of EGP 455 bn belonging to the National Social Insurance Authority,” according toAswat Masriya. Boutros Ghali currently resides in London and is set to be once again tried in absentia; Nazif was most recently acquitted along with former Interior Minister Habib El-Adly in the ‘license plate’ case, in which they were accused of squandering EGP 92 mn in a direct award to a foreign company of a contract to provide license plates.
President Abdelfattah El-Sisi met with irrigation minister Hossam Moghazy to sign a document on Tuesday that affirmed the state’s pledge to protect the Nile from pollution and other illegal practices, according to presidential spokesman Alaa Youssef. (Read)
Ithmar Capital planning on sale of 20% stake in Al Noor Hospitals -report: The private equity group is said to be planning a sale of 20% of its stake in Abu-Dhabi based Al Noor Hospitals Group. (Read)
‘Plummeting prices are boosting renewables, even as subsidies fall:’ The Economist notes that investment in renewables has grown by a sixth in 2014, now nearly accounting for a tenth of global power production. (Read, paywall)
Senate panel passes bill giving Congress a say on Iran Nuclear deal; Obama concedes that he’ll sign: In an about-face that is being incredibly downplayed in liberal corners of the American media after some incredibly acrimonious back and forth between Israeli Prime Minister Benjamin Netanyahu and U.S. President Barack Obama, a bill has passed the Senate Foreign Relations Committee mandating that the U.S. Congress will have a say on any final Iran nuclear deal. President Obama has indicated that he’ll sign such a bill rather than face dissent from Senators within his own party. (Read)
In lighter U.S. political news, newspapers from both sides of the aisle are being entertainingly frivolous with dissections of the logos of the four thus-far announced candidates for the 2016 presidential election: Hillary Clinton, Marco Rubio, Rand Paul and Ted Cruz. The Wall Street Journal’s Washington Wire blog has linked to the New Yorker’s cartoon on Clinton’s logo (which so far reigns as the top insult against her hospital-symbol logo) and also has a straw poll up on their website allowing voters to select their favorite. As of the time of writing, Ted Cruz’s logo, which some have said resembles an American flag on fire, is in the lead with 29% of the vote. Over on the Washington Post, Philip Bump reports on graphic designer Rick Wolff having created a complete typeface for his conception of how other letters would appear using Clinton’s logo, a font he calls “Hillvetica.” The bottom of the page allows users to input their own text, which can be saved with a right-click as an image. Here’s an example.
Angola’s sovereign fund allocates further USD 1.4 bn for Africa projects: The Fundo Soberano de Angola (FSDEA), Angola’s sovereign wealth fund, announced on Monday that it will allocate USD 1.4 bn to five new vehicles that will invest in sectors such as mining, agriculture and healthcare in Angola and throughout Africa, as reported by The Africa Report. “Given the current difficult fiscal context, these investments are extremely opportune because they can support the economic development required to reduce state reliance on crude oil revenues,” said FSDEA chief Jose Filomeno dos Santos. (Read)
Yemen Updates: ‘U.N. Security Council bans sales of arms to Houthi fighters in Yemen:’ The UN Security Council on Tuesday passed Resolution 2216 (currently under embargo on the UNSC’s site) which implements an arms embargo on the Houthi rebels. The resolution specifically “prohibits the sale of weapons to three Houthi leaders, as well as former President Ali Abdullah Saleh and his son and former military commander, Ahmed Ali Saleh.” (Read)
In response, the Houthi rebels have called on their supporters to hold mass demonstrations this Thursday in protest of the resolution, saying that it assists aggression. (Read)
Meanwhile, the Iranian Foreign Minister Mohammad Javad Zarif proposed on Tuesday what he referred to as a “four-point peace plan” aimed at achieving a political resolution to the ongoing crisis in Yemen. Details of the plan have yet to be released, but the minister stated that he will present the plan to the United Nations on Wednesday. (Read)
‘Egypt says discussed ‘major military manoeuvre’ in Saudi Arabia’: Reuters reports on a statement from Ittihadiya that states that Egypt is planning a “major military manoeuvre” within Saudi Arabia along with the cooperation of some unnamed Gulf Arab states. The take on the statement seems to suggest that a training exercise is what is under discussion, although it is not entirely clear at the moment. (Read)
** Save us from the tyranny of the calendar: Name the New Capital. ** Enterprise has opened nominations for naming the newly proposed administrative capital, as we’ve nearly exhausted the calendar while naming the rest of Egypt. In fact, a calendar-based name would be just about the only thing worse than calling it The Capital Cairo. The best nominations will be shortlisted and put up for a straw poll on our website soon. We’ll keep nominations open until this coming Thursday. Shoot us your suggestions oneditorial@enterprise.press with the subject line #downwiththecalendar. (h/t Hassan B. for the contest idea and Hussein B. for the hashtag).
WORTH READING
Thanassis Cambanis argues in American tabloid FP Magazine that ‘Iran is winning the war for dominance of the Middle East.’ Namely, he points to Iran’s engagement in several conflicts while never declaring its involvement, which Saudi (and to a lesser extent, Qatar) have attempted to replicate in Syria. However, Cambanis further argues that when it comes to Yemen, Saudi Arabia has openly declared military action, and thus will have to accept the inevitable civilian consequences that come with that action — a military action which he argues has no definable end game. (Read)
WORTH WATCHING
Ikhwanwatch: Mohamed Nassar, television host on Ikhwan-affiliated, Turkey-based television channel Masr Al’an, says Copts are secretly taking over Egypt’s economy and proselytizing — all but calling for open incitement to sectarian violence. (H/t Basil El-Dabh, Watch in Arabic, running time: 1:58)
To cleanse the palate, it’s always hugely entertaining to watch Lamees El Hadidy barely keep her always-just-beneath-the-surface rage in check. The following clip from her program last night features a tense exchange between El Hadidy and Minister of Electricity Dr. Mohamed Shaker, keeping in mind that El Hadidy was only able to operate her show on a backup generator and emergency power.
Lamees El Hadidy: “So while we’re sitting here live on the air, the power might cut out again—”
Mohamed Shaker: “Yeah it could.”
LEH: “It could? [sublimated anger] Mmm.”
MS: “Anything’s possible.”
(Watch in Arabic, running time: about 20 seconds for the above exchange, but the call continues for a few minutes afterwards)
This is the least offensive Molly Shannon video that may be found on the internet, and even then, viewer discretion is advised, as her humor is at times incredibly inappropriate, so please take this as your forewarning before watching: Molly Shannon as Mary Katherine Gallagher in TGIFriday Trainee on SNL. (Watch, running time: 7:44)
***
A MESSAGE FROM PHAROS HOLDING
Pharos Holding Named 5th-Largest Brokerage House in Egypt by Traded Volume
Pharos Holding is pleased to announce that its securities arm ranked among the top brokerage houses in Egypt this month, according to a press release from the Egyptian Stock Exchange. The firm came in fifth in terms of value traded in its main market Egypt, with transactions totaling EGP 1.5 bn and a volume of 138.5 mn shares — representing 4.6% of the total value traded. Pharos Holding also came in at first place in terms of transactions executed by Gulf Arabs, with a total traded value of EGP 289 mn and a volume of 23.8 mn shares — representing 17.04% of total traded by Arab investors.
To learn more about Pharos Holding, please visit our website.
***
EGYPT IN THE NEWS
The lead story on Egypt in the foreign press this morning is the above-mentioned story of Egypt planning for a military manoeuvre within Saudi Arabia, as reported by Reuters, among others.
Egypt court upholds jail term for Hazem Abou Ismail, who many commenters have noted before would rip through the city like Godzilla with his acolytes the Hazemoons. Abou Ismail is imprisoned on forgery charges stemming from misstating that his mother was not a dual national in his paperwork submitted for his candidacy to the presidency in the 2012 elections. (Read)
‘North Africa’s Key Economies Primed For Growth Spurt’: A largely positive piece by the Wall Street Journal on the growth potential for Egypt and other North African states, namely Morocco and Tunisia. -WSJ
As we noted yesterday, Middle East Eye (MEE) published a vacuous piece, widely picked up in the Ikhwanosphere that presents what it says is an investigation into how British energy giant BP managed to “gain increasingly better terms [in Egypt] without producing any gas.” MEE focused the attack on BP and RWE’s revision of the WDM deal taking it away from a PSA to a royalties plus tax agreement where BP receives 100% “of any profits, after paying royalties and taxes, from two offshore Egyptian gas concessions.” The report drifts into many tangents and cites multiple sources who all seem to be oblivious to the exact details of the agreement, let alone the fact that having a large profit share of a non-producing project due to being economically infeasible generates no profits to any of the parties.
‘Egyptian Government Can Block LGBT People From Entering The Country, Court Rules, as reported byBuzzFeed, and many others. The piece concerns a Libyan national who was deported and is further barred from visiting Egypt, on account of the court saying that the state is within its right to protect “the general benefits, religious values, social morals of society and to prevent the spreading of social ills.”
Also making waves on social media among journalists: The apparent burning of books in a school courtyard yesterday, with obvious overtones of the Nazi era. The story was first reported by Al-Masry Al-Youm.
ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM
DEWA seeks greater involvement in Egyptian energy project
The National | 12 April 2015
The Dubai Electricity and Water Authority (DEWA) is seeks greater involvement in energy projects in Egypt, The National reports. According to the company’s executive VP for business development, “Dewa would most likely enter Egypt with its joint venture RWE Middle East.” He added that “[The joint venture] has approached some entities in Egypt to advise them on the consultancy side.” (Read)
OIL & GAS
Shortage in Egypt’s gas production reaches 700 mcf per day, says EGAS source
Al Mal | 14 April 2015
The shortage in Egypt’s gas production has reached 700 mcf per day, a source at EGAS said. Total daily production has now reached 4.7-4.8 bcf, the source notes adding that consumption reaches up 5.5 bcf a day. EGAS is currently assessing the electricity sector’s demands for electricity and acknowledges that there will be power cuts, albeit not as recurrent as last year’s. (Read in Arabic)
LNG imports to cost USD 3.55 bn in FY2015/16
Reuters, Al Mal | 14 April 2015
LNG imports are expected to cost USD 3.55 bn in FY 2015/16, a source at EGPC said. Egypt begins importing gas in Q4 2014/15 as the Hoegh Gallant FSRU begins operations and the government has already earmarked USD 655 mn for imports this fiscal year. (Read and in Arabic)
Petrojet awarded USD 185 mn contract in Iraq
AMEinfo | 12 April 2015
Egypt’s Petrojet was awarded a USD 185 mn contract in Iraq to build the first gas-processing plant for the Siba oilfield. The oilfield is operated by Kuwait Energy and the turnkey project is commissioned on an EPC agreement where Petrojet will handle all gas-processing plant’s related works. The Chairman of Kuwait Energy “says the Iraqi Oil Ministry welcomes the presence of the Egyptian oil companies in the Iraqi market,” AMEinfo reports. (Read)
BASIC MATERIALS & COMMODITIES
Fertilizer plants to get a 200% increase in natural gas supplies from May
Al Shorouk | 14 April 2015
Fertilizer producers will receive an increase of 200% in their gas supplies starting from May, an unnamed source at EGAS told Al Shorouk. Natural Gas supplies to fertilizer plants are set to increase from 160 mcf a day to 510 mcf the source added. More readily available supplies are expected once the FSRU begins operations. (Read in Arabic)
MANUFACTURING
Beheira Investment Authority approves 13 projects worth EGP 270 mn
Al Borsa | 14 April 2015
Beheira Governorate’s high investment authority has approved 13 manufacturing projects which have garnered the interest of investors in the governorate. These projects—whose diverse range of activities include vegetable oil extraction facilities, poultry farms, paper manufacturing facilities, refrigeration facilities and other food manufacturing industries—have been estimated to be worth a combined total of EGP 270 mn and are estimated to bring around 1,700 new jobs to the governorate. (Read in Arabic)
HEALTHCARE
Pharmacist Syndicate announces new drug regulatory authority
Al Borsa | 13 April 2015
Dr. Mohy Obeid, the representative of the Egyptian Pharmacist Syndicate at the Second Arab Food and Drug Conference, announced that the final touches of a plan to establish a new “Supreme Drug Authority” to regulate the drug manufacturing industry are underway, adding that details on the new authority will be announced soon. (Read in Arabic)
REAL ESTATE & HOUSING
Wadi Degla pays EGOTH EGP 90 mn for Ain Sokhna project
Amwal Al Ghad | 14 April 2015
Wadi Degla announced it paid EGOTH EGP 90 mn in amounts due for its Ain Sokhna development project. EGOTH is owed a total of EGP 650 mn from Wadi Degla as a revenue guarantee, payable over three years. Wadi Degla is developing an EGP 1.5 bn project that includes a 100-room hotel with the contract allocating 40% of the revenues to EGOTH and the rest to Wadi Degla. (Read in Arabic)
The first regional conference for real estate contractors to be held in May
Al Mal News | 14 April 2015
According to Fahd Al Hamadi, head of the Federation of Arab Contractors, an inaugural conference for regional contractors called the “Arab Construction and Projects Forum” will be held on 24 and 25 May in Cairo. In a statement issued to the media, Hamadi stated the forum will identifying and assess the lucrative contracting opportunities available in the region, in addition to outlining a unified vision for the sector as a whole. The forum will also seek to strengthen avenues of cooperation between Arab contractors and regional regulatory bodies. (Read in Arabic)
TOURISM
Minister of Civil Aviation heads to Addis Ababa to promote unified regional market
Al Borsa | 14 April 2015
The minister of Civil Aviation, Hussam Kamal, heads to Addis Ababa today to attend a ministerial meeting of his counterparts in the African Union concerning implementing the articles of the Yamoussoukro agreement, which advocates for opening aviation routes between the 11 signatory countries. These include Egypt, South Africa, Ethiopia, Kenya, the Ivory Coast, and Nigeria. According to Kamal, his objective in this two-day meeting is to boost Egypt’s role as a regional hub and its participation in the new organization which will be set up to organize the new civil aviation protocols called for in the agreement which was signed at the 24th African Union meeting in late January. (Read in Arabic)
TELECOMS & ICT
Telecom and Transport sign cooperation protocols to build IT systems at ministry of transport
Al Mal News | 14 April 2015
Minister of Telecommunications, Khaled Negm, and Minister of Transport, Hany Dahy, signed an agreement outlining protocols for cooperation between the two ministries in boosting the IT capabilities of the transportation ministry. The agreement also explores avenues for constructing online and electronic platforms to support customer services offered by the ministry of transportation. The protocols also call for the installation of advanced GPS positioning and tracking technologies. (Read in Arabic)
BANKING & FINANCE
Hamdy Rashad joins EFSA board
Al Borsa | 14 April 2015
Hamdy Rashad, a prominent member of Egypt’s financial services community and former board member of the Egyptian stock exchange (1995-1999), will be joining the board of the Egyptian Financial Supervisory Authority. Rashad Hamdy is set to serve on the board until the end of its term in November 2017. (Read in Arabic)
OTHER BUSINESS NEWS OF NOTE
Tunnel authority to invest EGP 100 bn over the next three years
Al Borsa | 14 April 2015
EGP 100 bn will be invested by the National Authority for Tunnels (NAT) over the next three years, the head of the Authority said. The money will be directed towards completing works to dig six tunnels for the Cairo Metro’s third and fourth lines. NAT will also conduct works for the tram that will operate in the Tenth of Ramadan. (Read in Arabic)\
Egyptian Businessmen’s Association MoU with Egypt TEDA
Al Masry Al Youm | 14 April 2015
The head of the China Council of the Egyptian Businessmen’s Association revealed that the organization will sign an MoU with the Chinese developer, Egypt TEDA Company. The MoU aims to enhance cooperation between Egyptian and Chinese investors. (Read in Arabic) On a related note, the sources added that construction on phase 2 of the China-Egypt Suez Economic and Trade Cooperation Zone has begun. Phase 2 of the zone will focus on the development of projects in the renewable energy, chemical manufacturing, and automobile assembly spaces.
China invests heavily in northwest Suez
Al Masry Al Youm | 14 April 2015
President of the Egyptian-Chinese Partnership group within the Egyptian Businessmen Association Ahmed Mounir Ezz El-Din said that the economic zone in northwest Suez accounts for largest Chinese investments in Egypt at 55 companies (including 34 industries) worth a total of USD 900 mn in first phase of development. The recent second phase of development, Ezz el-Din said, focuses on five main sectors: renewable energy, electronic production, chemical production, automobile manufacturing and service industry. (Read in Arabic)
Red Sea Governorate plans for commercial area worth EGP 500 mn
Al Borsa | 14 April 2015
The Red Sea Governorate began planning 154 acres in Al-Alamein to build a commercial and residential area worth nearly EGP 500 mn. Four contracting companies will be responsible for developing the specified project area, designed by the Engineering and Planning Management in the Governorate in cooperation with several engineering consultancies. Expected completion date for the project is 2018, but it is likely to attract foreign and local investors prior to the set deadline. (Read in Arabic)
Arriyadh Development request land purchase in Cairo for tourism project
Al Borsa | 14 April 2015
The Saudi Arriyadh Development Co. has requested 5,000 square meters in Cairo to establish a tourism project on Nile Corniche, according to Al Borsa. Arriyadh specializes in infrastructure, residential and commercial development. Mohamed Amin, Deputy Governor of Cairo, told Al Borsa that Arriyadh sent a formal request to invest in Cairo and that a joint committee, composed of the Planning and Survey managements in the governorate, will convene and make a decision on the proposal. Amin added that Cairo received more than 20 real estate developer land requests in the past four months. (Read in Arabic)
EGYPT POLITICS + ECONOMICS
Important decisions made at 2nd Arab Conference for Food and Drugs
Al Mal | 13 April 2015
Monday witnessed the closing ceremony of the 2nd Arab Conference for Food and Drugs. Around 500 individuals, representing 25 countries attended the conference. The closing statements outlined a number of tentatively-agreed upon decisions, most important of which was the creation of Arab food and drug authorities. These bodies, which will operate under the auspices of the Arab League, will be responsible for regulating food and drug related activities at a regional level and also aim to increase cooperation between national governments in combating pertinent violations. Additionally, the closing ceremony also called on Arab governments to establish national-level food and drug authorities, similar to those already found the kingdoms of Jordan and Saudi Arabia. The upcoming Arab Conference for Food and Drugs will be held in 2017. (Read in Arabic)
Egypt asks JICA to accelerate Cairo Metro project
Al Shorouk | 14 April 2015
JICA and the Japanese Ministry of Foreign Affairs were asked by the Egyptian Ambassador in Tokyo to accelerate the project to develop the fourth line of the Cairo Metro. The Ambassador also met with executives from Nippon Civic Consulting Engineers to review the final designs for the project. The new engineering plan is set reduce the construction time for the fourth line by 50% compared to previous lines at 90% of the cost. (Read in Arabic)
REGIONAL
South Korea moves its Tripoli, Libya embassy staff to Tunisia after attack
Reuters | 14 April 2015
South Korea, one of the few remaining countries that still had an embassy in Islamist rebel stronghold Tripoli, has temporarily relocated its embassy staff to Tunisia, following an attack by gunmen this week that killed two local security guards, according to the South Korean foreign ministry, Reuters reports. (Read)
ON YOUR WAY OUT
Mehleb inaugurates new recycling facility in Sixth of October
Al Mal | 14 April 2015
Prime Minister Ibrahim Mehleb, accompanied by the ministers of state for green development, informal housing, and the environment attended the inauguration ceremony of a recycling facility in Sixth of October. The facility, which is part of the Hope 5 project, aims to reduce and recycle waste from the construction and building materials industry. The facility was built by Arab Contractors on an area of 10 feddans and is expected to eliminate around 800 tons per day of waste. (Read in Arabic)
BY THE NUMBERS
USD CBE auction (last sale Thursday, 09 April): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Tuesday, 14 April): 7.66 (+0.01 from Wednesday, 08 April)
EGX30 (Tuesday): 8,927.53 (0.39%)
Turnover: EGP 508.1 mn (10% below the 90-day average)
WTI: USD 53.50 (+0.39%)
Brent: USD 58.82 +0.67%)
TASI: 8,966.3 (-0.8%)
ADX: 4,591.3 (flat, +0.04%)
DFM: 3,829.0 (+1.4%)
KSE Weighted Index: 429.6 (+0.4%)
QE: 11,779.0 (-0.3%)
MSM: 6,242.3 (-0.4%)