Carbon Holdings gets Gulf Capital investment. Arabtec wins Cabinet green light. Hypermarkets to win Ramadan battle. Private gas imports update. MiG jet deal with Russia. El Sisi to sign Siemens’ EEDC contracts in Germany.

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WHAT WE’RE TRACKING TODAY

Trade with Africa will be in the spotlight as Trade and Industry Minister Mounir Abdelnour and members of the Federation of Egyptian Industries hold a press conference at noon today to discuss the long-expected COMESA-EAC-SADC FTA.

A two-day visit to Egypt by a Russian business delegation headed by Russian Minister of Industry and Trade Denis Manturov wraps-up today. Supply and Internal Trade Minister Khaled Hanafi met with the delegation yesterday to discuss investment opportunities in Egypt’s grain and wheat silos and mills, as well as logistics networks. (Read in Arabic)

WHAT WE’RE TRACKING THIS WEEK

The National Bank of Abu Dhabi (NBAD)’s Egypt on the Rise — West-East Corridor forum will take place at the JW Marriott, Cairo, on Wednesday, 27 May. Read more about the event and featured speakers Basil El-Baz (Carbon Holdings), Hisham El-Khazindar (Qalaa Holdings), Ahmed Badreldin (Abraaj Group) and Omar Mehanna (NBAD) here.

Egypt’s Renewable Energy Summit, Cairo International Convention and Exhibition Centre. (Friday-Sunday, 29-31 May)

LAST NIGHT’S TALK SHOWS

Lamees El Hadidy reported on a number of stories last night, including Gulf Capital’s USD 25 mn investment in Egyptian petrochemicals company Carbon Holdings (more in Speed Round, below). She conducted a telephone interview with Dr. Karim Al Solh, Managing Director of Abu Dhabi-based Gulf Capital. “We see a lot of potential in the Egyptian market and in Carbon Holdings. The company has ambitious plans to launch new petrochemicals projects in the Suez Canal zone,” said Al Solh.

El Hadidy’s second phone interview of the night was with Minister of Transportation Hany Dahi, who discussed the outcomes of day one of the Egypt-Russia Investment Forum. According to Dahi, an Egyptian, Russian, Emirati ‘sovereign wealth fund’ will be established to finance Russian-Egyptian investments in Egypt including investments in rail transport, dry ports and steel manufacturing.

Minister of Communication and Information Technology Khaled Negm also called in, in his case to talk about a new Egypt Post project called “the Citizen’s Account,” which sounds like a survivor benefit policy / pension fund for low-income citizens who don’t have access to bank accounts.

“Anyone between the ages of 18 and 59 is eligible to open this account. You pay EGP 50 per month. In the event of a death, your family receives EGP 20,000 within 6 months and if you reach the age of 60, you can cash in the policy. You can open these types of accounts for your drivers, security guards or anyone that you would like to help out. The official launch will be before Ramadan,” explained Negm.

During the interview Negm complained that he “could not hear Lamees properly” — something we cannot imagine ever having happened before in recorded history. El Hadidy pounced on the opportunity to complain to Negm about the dismal state of mobile phone networks and of the internet access. “You promised that our Internet connections would get better and become more affordable. We are paying a lot of money and getting horrible service,” said El Hadidy.

“Call me back in the first week of June and I will have an answer for you,” said Negm.

El Hadidy’s studio guest was veteran educator Waleed Abu Shakra, CEO of American International Schools (AIS). In an interesting discussion about American schools in Egypt, Abu Shakra explained that Egypt has 200 American schools, the majority of which are not properly accredited.

“There are only two organizations that can give accreditation to American schools: the Middle States Commission on Higher Education and the New England Association of Schools and Colleges. These are the organizations that have accredited the well-established American educational institutions in Egypt, namely the American University in Cairo, Cairo American College, AIS and Schutz American school in Alexandria,” saidAbu Shakra. He claimed that the Ministry of Education is cracking down on the ‘illegitimate’ schools and taking steps to shut down any school without proper accreditation.

They also discussed the issue of cheating on SAT exams, which has been a recurring problem in Egypt for the past couple of years.

Yesterday’s front-page story in Al Shorouk newspaper about Ahmed Shafik caught Amr Adeeb’s attention. He devoted half his program to an analysis of the story. “What I’m about to tell you is based on a hunch, not on facts,” he said. “The article appears to be an indirect message or warning to Shafik not to come back and not to mess with the status quo. It raises a number of questions in my mind. What has Shafik done wrong? And who are these Shafik supporters that are allegedly meeting with officials from the U.S? It’s not Shorouk’s style to publish an article of this nature. It’s peculiar,” said Adeeb.

Emad El Din Hussein, the editor in chief of Al Shorouk, called in to defend the article and Shafik’s lawyer,Yehia Qadri, rang-up Adib to vehemently defend Shafik against the allegations made in Al Shorouk. “I’m telling you, Shafik has powerful enemies. I was there right by his side when former Chief of Staff Sami Anan called to tell him Mabrouk on the election in 2012,” said Qadri.

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SPEED ROUND

Arabtec received the Cabinet’s approval to begin its one mn homes project, assistant housing minister Khaled Abbas told Reuters yesterday. The project is set to cost a total of EGP 280 bn and will begin with a first phase to build 100,000 housing units. “We are at the stage of preparing the contracts after receiving the necessary approvals, and we await the opinion of Arabtec’s new management,” Abbas said. This news comes in the wake of a report published by Al Mal claiming that the project will not go through. The latest news on the project has no word on how the project will be financed, a major sticking point.

Obstacle to gas import deal with Israel swept aside? Israeli antitrust chief David Gilo said on Monday that he will step down in August, according to Reuters, signalling the potential clearing of a major hurdle impeding exports of natural gas from Israel. Gilo had pushed for antitrust proceedings against Noble Energy and Delek Group’s Tamar and Leviathan offshore gas concessions. “In a stinging rebuke of Prime Minister Benjamin Netanyahu, Gilo, whose post is independent, said he was resigning because the government was pushing for a deal to speed up development of the gas field at the expense of bringing in new competition,”Reuters reported.

There are no restrictions on the private sector on importing natural gas from Israel, an unnamed source at EGAS told Al Masry Al Youm. “Companies can even submit a request to import from Mars if they please,” EGAS Chairman Khaled Abdel Badie said when asked about the subject before qualifying his response by noting that all requests will be looked into from technical as well as national security perspectives.EGAS will begin receiving requests by the private sector to import natural gas from 1 June, Abdel Badie said, according to Al Mogaz. However, the chamber of metallurgical industries complained about the ambiguity of import procedures and seeks guarantees that imported natural gas quantities passing through the national grid will actually reach their buyers. Abdel Badie added to Al Borsa, that the executive regulations for the national gas regulatory entity that will oversee the private sector’s natural gas purchaseswill be ready by the end of August.

Egypt, Russia agree to USD 2 bn deal for 46 MiG-29 fighter jets -Russian newspaper: Egypt and Russia have agreed on a USD 2 bn deal to supply 46 Mikoyan MiG-29 fighter aircraft, Russian business daily Vedomosti newspaper reported on Monday, citing sources in the Russian aviation industry. The deal would represent the largest commission for Russian military hardware in post-Soviet history. The potential for such a deal was first reported in February, when CEO of Russian Aircraft Corporation MiG Sergei Korotkov said that his company was ready to supply Egypt with MiG-35 jets. (Read) The news follows a meeting held on Monday between Defense Minister Sedki Sobhy and the Russian Minister of Trade and Industry Denis Manturov, although news of the deal was yet to be reported in the Egyptian press. (Read in Arabic)

Siemens’ EEDC contracts nearly done: Cabinet’s economic group discussed yesterday the preliminary agreements between the state Holding Company for Electricity and Siemens. The contracts for a 4.4 GW combined-cycle power plant and the installation of 2 GW of wind power capacity are expected to be signed during President Abdelfattah El-Sisi’s upcoming visit to Germany. (Read in Arabic)

New Egyptian-Russian-Emirati investment fund to be formed, says Abdel Nour: Egypt has reached an agreement with Russia in relation to the formation of a new investment fund to channel investments to the industrial and services sector, said industry minister Mounir Fakhry Abdel Nour in a joint press conference with his Russian counterpart Denis Manturov. The fund will draw investments from several Russian and Emirati investment funds, Egyptian banks and other unnamed private investors. (Read in Arabic)

As noted in our talk show review above, Abu Dhabi-based Gulf Capital signed a USD 25 mn debt financing agreement on Monday to support three of Carbon Holdings’ petrochemical projects: Egypt Hydrocarbon Corporation, Oriental Petrochemicals Corporation and Tahrir Petrochemicals Corporation, according to a release from Gulf Capital. The announcement follows a statement from Gulf Capital’s CEO Karim El Solh on Monday that the firm was eyeing four deals in Egypt, one each in theconsumer goods, healthcare, oil and gas, and petrochemicals sectors, as reported by Reuters. The announcement also follows Carbon Holdings’ chief executive Basil El-Baz’s statement on Monday in which he reiterated that Carbon Holdings hopes to conclude a USD 4 bn debt financing with export credit agencies to back its USD 7.4 bn Tahrir Petrochemicals project by the end of this year.

Another Brotherhood leader dies in Egypt prison – pro-Ikhwan website: Mohamed Al-Falahgi, a leading member of the Ikhwan, reportedly died in Gamasa prison hospital in Damietta on Monday, according to pro-Ikhwan website Nafezat Masr and as reported by Anadolu Agency. Al-Falahgi had been admitted to the hospital with a gallbladder inflammation and kidney stones. Al-Falahgi had been serving a three-year prison sentence whose retrial was scheduled to begin on Tuesday. His death brings the total number of deaths inside Egyptian prisons since 2013 to 265. (Read)

Peugeot eyes regional expansion: French carmaker PSA Peugeot Citroen could announce plans to set up a production plans in Morocco as early as next month, a source told Reuters. “In the medium term, we are thinking about an industrial presence to accompany the development of our brands in the region,” PSA Peugeot Citroen’s spokesperson said. Preferential customs duties enjoyed by Moroccan, Turkish and EU automotive exports to Egypt threaten Egypt’s domestic assembly industry, insiders say.

Hypermarkets will win Ramadan battle: Market research outfit Nielsen claims large retailers and hypermarkets will see sales surge 40-80% during the coming Ramadan high season against a bump of just 2% in the same period for traditional supermarkets and small outlets, Amwal Al Ghad reports.

El-Zayat hit with lawsuit heading into Belmont Stakes: Ahmed Zayat has filed a motion to dismiss a lawsuit in an 11-year-old dispute over wagering, the WSJ and Fortune and the report. (The details of the suit include words that would prevent our delivery this morning to many inboxes, so you’ll have to hit link for the details.) Meanwhile, Sports Illustrated reports that oddsmakers have American Pharoah down as the favorite to win the Belmont on 6 June.

Gov’t to facilitate IPOs for renewable energy companies, says RE could help curb unemployment. The Mahlab government will take unspecified steps to fast-track the IPOs of multiple renewable energy companies with a combined generation capacity of 17 GW, a senior official at the Ministry of Electricity and Renewable Energy told an industry conference yesterday. The listings will “allow the public to hold a true stake in the development of renewable energy in the country.” The conference, which sparked a run of news on the topic yesterday (see “Energy, Renewable Energy and Subsidy Reform,” below), also saw Environmental Affairs Minister Khaled Fahmy position renewable energy as being part of the solution to both the nation’s unemployment and environmental problems. Cornelius Mathes, managing director of MENA operations for renewable energy producer Building Energy, hit the same notes at the gathering as he emphasized the long-term employment opportunities his company’s recently-inked projects will create. Building Energy has concluded an agreement with the government to build a 50 MW wind power plant that will sustain USD 11 mn in employment wages per annum.

Coal-fired plants will generate 12 GW of electricity by 2035, Sabah El-Mashaly, first undersecretary at the Ministry of Electricity and Renewable Energy told the same industry gathering yesterday.

The Egyptian sugar industry hit another snag as the first refinery built in Egypt and the Middle East remained shuttered for day 15. Al-Hawamdiya Sugar Production and Integrated Industries’ Company has halted operations due to a lack of raw materials. According to management, about 1,500 workers are at risk of losing their jobs due to stalled production. (Read in Arabic)

Macabre jokes have begun making the rounds of the capital city in the wake of news the taxi in which Nobel Prize winning mathematician John Nash and his wife were killed was driven by a man of Egyptian origin. People magazine and Al-Shorouk have more. The cab driver has not yet been charged with any wrongdoing; at least one report says it is unlikely he will be charged. Police investigators say it appears as if Nash and his wife were not wearing seatbelts. Nash’s impact on microeconomics and game theory in particular was significant. His dissertation (in PDF) eventually won him a Nobel Prize in Economics after extending game theory from cooperative, bargaining-type solutions to non-cooperative solutions, opening the door for multiple applications in economics, business, and political science — and revolutionizing the economics of industrial organisation. The Economist dug out the coverage of Nash’s 1994 Nobel Prize from their archives.

CORRECTION- Yesterday, we misspelled the name of ACWA Power in a story on the company signing an agreement to acquire land for its renewable energy projects.

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A MESSAGE FROM PHAROS HOLDING

IMF Loan Still a Possibility Despite Concerns over Capital Gains Tax

The International Monetary Fund’s (IMF) Egypt chief Chris Jarvis made a statement that raised concerns over the postponement of the capital gains tax. Jarvis believes that this delay would translate into the burden of the budget deficit being carried by those less able to afford it. In our previous reports published on 8 April 2015and on 6 May 2015, Pharos Research highlighted that the IMF’s mission chief’s support for the capital gains tax, and the minister of finance’s determination to implement it signaled a level of technical cooperation between the government and the IMF that could lead to a full-fledged standby agreement.

Despite the roll-back by the MoF on the capital gains tax, we still believe that a loan agreement is highly possible. To find out why, click here.
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WORTH READING

Is a Chinese debt meltdown in the cards? China’s top banking regulator warned earlier this month of a sharp spike in bad debt in real estate, local government debt and unconventional forms of finance. Shang Fulin, chairman of the China Banking Regulatory Commission (CBRC), apparently said that NPLs declared in the first quarter of this year have already reached 56% the full-year 2014 total. (Read)

WORTH WATCHING

Enterprise extends its congratulations to Lebanese director Ely Dagher, who has won the Palme d’Or for best short film at the 68th Cannes Film Festival for Waves’98, beating out live-action rivals in the same category. The melancholic, at times surrealist film, tells a coming of age story set in Beirut in the 1990s. Watch the trailer here, running time: 1:28.

EGYPT IN THE NEWS

The lead story on Egypt in the foreign press on Tuesday morning is a pickup of an interview in Monday’s Al Ahram with military spokesperson Mohamed Samir, who states that the Egyptian military has thus far discovered and destroyed 521 smuggling tunnels on the border. Comments from the interview were picked up in The Journal of Turkish Weekly, Ikhwan-affiliated Middle East Eye, Iran’s PressTV, and The Times of Israel, among others.

Sondos Asem, one of the former account administrators of @Ikhwanweb, writes on her recent death sentence in the Morsi espionage trial, having received the mandatory maximum penalty of capital punishment due to the vagaries of Egypt’s legal code as she was tried in absentia: “The Egyptian regime seeks to end my life for no reason other than who I am: an educated, politically active and independent woman with mainstream Islamic views.” As the years have gone by, Asem has reimagined “liberals, conservatives and leftists, Muslims, Christians and atheists” as representing “the future and a hope for change.” Oddly enough, the op-ed has been published not just in the Washington Post, but also by Stars and Stripes. (ReadUndaunted by my death sentence in The Washington Post)

DIPLOMACY

Egypt and Vietnam’s deputy foreign ministers had their eighth political consultation in Cairo during 22-25 May. The deputy foreign ministers discussed measures to foster bilateral relations to increase the trade volume between the two countries to USD 1 bn. Vietnam proposed “that Egypt grant its Halal certification to facilitate the export of Vietnamese meat products to Muslim nations.”

Qatar Watch: Sudan’s Bashir concludes a lightning visit to Qatar: Sudanese president Omer Hassan al-Bashir concluded a short visit to Qatar on Sunday, as reported by Sudan Tribune. The focus of the meeting, among other topics, included “the situation in Egypt following the death sentences handed down against the ousted president Mohamed Morsi and his aides from the Muslim Brotherhood.” (Read)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Each citizen gets EGP 1,190 from the fuel subsidy on average, Dimian says
Al Masry Al Youm | 24 May 2015
On average, each Egyptian receives EGP 1,190 annually from the fuel subsidy, Finance Minister Hany Dimian said. Dimian correctly noted that most people do not feel its effect because the largest beneficiaries of the subsidy are the richer segments of the society, whom are naturally the people who consume more fuel. This is why the government is seeking to reform the fuel subsidy and channel the savings to other programmes that directly benefit the poor. (Read in Arabic)

Renewable energy companies send recommendations on feed-in tariff projects to MOE
Al Borsa | 25 May 2015
Renewable energy companies have sent a proposal to the ministry of electricity outlining their take on the feed-in tariff projects mechanism, said Hisham Tawfik, head of Cairo Solar. Speaking in the opening session of Egypt’s Renewable Energy Summit, Tawfik highlighted that some of the points in the proposal include dealing in the local currency, and adjusting prices to currency fluctuations. (Read in Arabic)

UEEPC plans to produce 7,000 MW through three power stations
Al Borsa | 25 May 2015
The Upper Egypt Electricity Production Company (UEEPC) plans to establish three power stations producing 7,000 MW of electricity. According to Amr Zakaria, advisor to the chairman of UEEPC, the first station will be in South Helwan and will be comprised of three units producing 650 MW a piece. The company will open bidding for a tender to import and operate the units. The second station in Beni Suef will consist of four units producing 1100 MW each, while the third station in Assiut will produce 650 MW. Bidding on the third station is underway. (Read in Arabic)

NREA inks agreements for two solar energy project in Kom Ombo
Al Mesryoon | 25 May 2015
Egypt’s New and Renewable Energy Authority has signed two agreements, each worth USD 75 mn, for solar energy projects in Kom Ombo. The agreements were signed with Cairo Solar and Qalaa Holdings subsidiary, Taqa Arabia. Upon completion, the project will add 200 MW to Egypt’s national grid. (Read in Arabic)

Orascom Telecom inks deal with LaFarge for biomass project
Al Borsa | 25 May 2015
Orascom Telecom has signed a deal with La Farge to help construct an a biomass recycling plant with a capacity to convert 20 mn tons of sewage per annum to biomass from across multiple governorates, said Orascom VP Tamer Al Mahdy speaking at Egypt’s Renewable Energy Summit. (Read in Arabic)

Orascom awaits CBE approval for solar energy project
Daily News Egypt | 25 May 2015
Orascom Telecom is awaiting approval from the ministries of finance, electricity and the CBE for its solar power project’s PPA to proceed with the feed-in tariff mechanism, said Orascom VP Tamer El Mahdy. The agreement was signed with the Ministry of Electricity in March during the EEDC conference, making it one of the first to be signed under the feed-in tariff mechanism. To secure financing from the IFC, World Bank and the European Bank for Reconstruction and Development (EBRD), the CBE has guaranteed that payments will be made in USD. (Read)

OIL & GAS

Negotiations with BG on pricing underway, EGPC head says
Daily News Egypt | 25 May 2015
USD 2.6 bn worth of petroleum products will be imported to support the domestic market this summer, Tarek El Molla, EGPC’s head said in an interview with DNE. The government is currently negotiating with BG Group, GDF Suez (Engie), Edison, and Eni the price of natural gas produced, El Molla added. He noted that “some incentive items for the investors were added in the new oil agreements, such as partnership in the production surplus.” (Read)

Debt to foreign partners stands at USD 3.5 bn, says EGPC
Al Borsa | 25 May 2015
Egypt’s debt to foreign E&P companies currently stands at USD 3.5 bn, dropping from USD 6 .5 bn in June 2014, said EGPC Vice Chairman Mohamed Taher. According to Taher, the EGPC has redoubled its efforts to repay foreign companies, in addition to accelerating development deals while continuing negotiate gas prices with some companies. (Read in Arabic)

Mashreq Petroleum negotiates 100 mn loan
Al Borsa | 24 May 2015
Mashreq Petroleum has entered into negotiations with an international bank to obtain a USD 100 mn loan to finance work on the company’s fuel storage facility in Port Said. Phase 1 of the project, which has an estimated capex of USD 260 mn, should be operational within 16 months. Upon completion, the storage facility should have a capacity of 540,000 tons of petroleum products. Mashreq is a subsidiary of Qalaa Holdings. (Read in Arabic)

Dana Gas to invest USD 350 mn in Egypt
Al Mal | 25 May 2015
Dana Gas plans to invest USD 350 mn in Egypt over the coming period, announced Abdullah Al Kadi, head of extraction and production operations at the Crescent Group, the largest private shareholder of Dana Gas. He added that the company is moving forward despite the risks in the petroleum sector, owing to the strides the government has taken to encourage investment. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Large increase in Egyptian cotton exports
Egyptian Streets | 25 May 2015
Total Egyptian cotton exports this year grew a striking 94.3 percent, from December 2014 to February 2015. This comes in stark contrast to previous reports of export declines in late 2014. CAPMAS also released a statement attributing the increased exports to a dip in cotton prices as a result of a surplus of cotton from the previous season. (Read)

MANUFACTURING

Egyptian QIZ exports to the U.S. to fall by 5%, exporters say
Al Borsa | 25 May 2015
QIZ exports from Egypt to the U.S. are expected to drop by 5% this year, some producers warned. The increase in the price of the mandated Israeli inputs coupled with the energy shortage facing manufacturers is reducing Egyptian producers’ competitiveness. A member of the readymade garments export council said exports have already dropped by 21% y-o-y in 1Q2015. (Read in Arabic)

Delta Fertilizers seeks to fund EUR 5.5 mn nitrogen oxide reduction program
Al Borsa | 25 May 2015
Delta Fertilizers has sent a request to its parent company the Chemical Industries Holding Company urging it to finance the EUR 5.5 mn nitrogen oxide reduction program, said Delta chairman Mohsen Nasser. In an exclusive with Al Borsa, Mohsen outlined how is company has been having difficulties obtaining financing for an ammonia production unit worth USD 579 mn. (Read in Arabic)

Steel factories only worked two months this year due to gas cuts, says El Dow
Al Borsa | 25 May 2015
Rafik El Dow, managing director of Suez Steel Co. beseeched the government to intervene immediately to resolve the shortages in gas fueling steel and iron works facilities, claiming that they have only been working for two months in 2015. (Read in Arabic)

REAL ESTATE & HOUSING

Egypt won’t offer further real estate mega-projects until EEDC pipeline cleared
Daily News Egypt | 24 May 2015
The Mahlab Government will finalize contracts for six major real estate projects for which MOUs were announced at the Egypt Economic Development Conference in Sharm before bringing to market as many as nine other mega-projects it hopes to market. Housing Minister Mostafa Madbouly is quoted as saying that of the six projects agreed in Sharm El-Sheikh earlier this year, two have seen final contracts signed in the presence of Prime Minister Ibrahim Mahlab in the past two weeks. (Read)

TOURISM

Tourism Minister embarks on European tour
SIS | 26 May 2015
Tourism Minister Khaled Ramy left Cairo on Monday, 25 May to begin his promotional tour of Europe in London. The trip will include stops in Germany and Russia, and will provide an opportunity to hold talks on the most pressing demands of senior tour operators in countries who send the greatest tourists to Egypt per year. (Read)

Abraj Misr kicks off its EGP 1.5 bn “The Shore” project
Amwal Al Ghad | 25 May 2015
Real estate developer Abraj Misr has begun work on its “The Shore” project in Ras El Hekma. Located off of kilometer 186 on the Alexandria-Marsa Matrouh highway, the EGP 1.5 bn project has a total land package of 180 acres. (Read in Arabic)

TELECOMS & ICT

Huawei smartphone market share hits 7.3% in Egypt as of April
Amwal Al Ghad | 25 May 2015
Huawei controlled 7.3% of the smartphone market share in Egypt as of April, according to Amwal Al Ghad. By 2014’s end, Huawei’s smartphone market share was only 2% the company’s regional manager said, but increased following distribution deals signed with Raya. Samsung still has the largest market share in Egypt. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Egypt-Gulf Investment and Infrastructure Company seeks to invest USD 1 bn in Egypt
Al Borsa | 25 May 2015
The Egypt-Gulf Investment and Infrastructure Company aims to invest USD 1 bn in solar energy and water desalination plants in Egypt. Company CEO Mohamed Anas has met with government officials to discuss the possibility of using solar energy to power Suez Canal Development Area-based projects. (Read in Arabic)

Italy’s Danieli mulls Egyptian heavy equipment factory
Al Masry Al Youm | 25 May 2015
Italian steel giant Danieli expressed its willingness to establish a heavy equipment factory in Egypt, revealed Commerce and Trade Minister Mounir Fakhry Abdelnour. The factory would provide regional steel and iron companies with equipment for their operations. The ministry is in the process of allocating land for the project.(Read in Arabic)

REGIONAL

BG trying to get support to begin drilling Gaza’s offshore
Maan News | 25 May 2015
BG Group is trying to gather support in order to be able to begin drilling in its concession in Gaza’s offshore, Palestinian news agency Maan News said. BG hopes it will be able to secure Israeli approval to begin operations. The company was awarded the rights to the site in 1999, but has not been able to begin production since. BG had signed an agreement with Jordan to supply it with natural gas. (Read in Arabic)

UAE banks discuss a proposal for centralized Islamic finance Sharia board
Reuters | 24 May 2015
Banks in the UAE discussed plans to create a centralized Sharia board to monitor Islamic finance practices, according to Reuters. The proposal, which was presented by the Central Bank, is now being considered, with the UAE Banks Federation saying that their representatives are “working closely with the Central Bank on guidelines for the establishment of the new body that will help to ensure consistency amongst all UAE Islamic banks in their development of new structures and products.” Details regarding timing and the structure of the proposed board were not specified, Reuters said. (Read)

ON YOUR WAY OUT

Five migrants were found drowned in Kafr El-Sheikh early on Monday morning, according to a health ministry spokesperson speaking to Ahram Online.

Prime Minister Ibrahim Mahlab met with Italy’s minister of economic development to discuss increasing cooperation between the two countries. (Read in Arabic)

Juhayna looks to double milk production: Juhayna’s Marketing & Innovation Director Klaus Pedersen said on Monday that the company is looking to produce 6 mn packs of milk by the end of the year, and is looking to double that figure by the end of 2016. (Read in Arabic)

Prime Minister Mahlab made several decisions regarding the reallocation of government owned land to several different agencies that serve public interest. Al-Mal has the list of land plots that were reallocated and the names of the agencies that received them.

BY THE NUMBERS

USD CBE auction (last sale Sunday, 24 May): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Sunday, 24 May): 7.67 (+0.02 from Tuesday, 19 May, Reuters)

EGX30 (Monday): 9,050.76 (-0.78%)
Turnover: EGP 525.3 mn (7% below the 90-day average)

WTI: USD 59.78 (+0.10%)
Brent: USD 65.51 (-0.02%)

TASI: 9,727.0 (-0.1%)
ADX: 4,625.9 (+0.2%)
DFM: 4,067.7 (+0.4%)
KSE Weighted Index: 421.0 (-0.5%)
QE: 12,399.5 (-0.4%)
MSM: 6,377.9 (flat, +0.04%)