Kerry is coming to town — next week, not tomorrow?

TL;DR

• EGX shakes up indices; Edita, GB Auto, Qalaa join EGX30, new EGX50 equal-weighted index to launch
• Giza governor declanares war on tuk-tuks (Last Night’s Talk Shows)
• U.S. Secretary of State John Kerry’s visit postponed to next week?
• New BG Egypt chief appointed
• Heneidy says ERTU will be restructured to make it competitive with private media
• Why comics and cartoons are flourishing in the Middle East

WHAT WE’RE TRACKING TODAY

We could be looking at a busy legislative agenda this week: Cabinet will reportedly discuss amendments to nine separate laws, including tweaks to the investment, tax, and consumer protection acts over the upcoming week, said Transitional Justice Minister Ibrahim Heneidy. According to Al Mal, the Cabinet Economic Group has suggested amendments to the Investment Law to include the removal of a provision that calls for the elimination of free trade zones. The group has a also suggested changes to the Investment law’s recently introduced executive regulations, reports Al Mal.

While you’re waiting for news on the legislative front, you may recall that Cabinet squeaked through the new budget just ahead of the Eid break. If you, like us, were in a konafa Nutella- and lokmet el-kadi-induced stupor and need to get back up to speed, may we suggest this 12-page report (pdf) by N Gage Consulting, which looks at the government’s performance in the last fiscal year and provides an overview of the FY2015-16 state budget here.

WHAT WE’RE TRACKING THIS WEEK

The two-day SolarTech Egypt begins tomorrow (Tuesday, 28 July) at the J.W. Marriott Hotel.

The Central Bank of Egypt’s Monetary Policy Committee will meet on Thursday, 30 July to set interest rates— the same day a final verdict is expected in the retrial of former Al Jazeera English journalistsMohamed Fahmy, Baher Mohamed and Peter Greste.

ON THE HORIZON

An informed source tells us that U.S. Secretary of State John Kerry’s visit to Cairo for high-level consultations has been postponed to Sunday, 2 August. Kerry’s two-day visit was originally to have kicked off tomorrow (Tuesday, 28 July).

Also next week: The Emirates NBD Egypt Purchasing Managers’ Index will drop on Tuesday, 4 August. Due out the same day are the PMIs for the United Arab Emirates and Saudi Arabia.

LAST NIGHT’S TALK SHOWS

The countdown to the New Suez Canal has begun on the talk shows: “11 days and counting” appears in an animated box with the New Suez Canal logo at the top the television screen on most of the major networks.

Youssef El Housseiny is back on air with a new tan and hairstyle after a month-long absence during Ramadan. He hosted Giza Governor Dr. Khaled Zakaria El Adly last night for a discussion about garbage, tuk-tuks and informal settlements, the three major problems that his governorate is currently facing.

“The Giza governorate houses one of the seven wonders of the world and one of its most important rivers — it is inconceivable that it has deteriorated so drastically, said El Adly, a U.S.-educated architect, urban planner and landscape architect with degrees from the University of Illinois, Berkeley and Texas A&M. Very well spoken, the governor uses all the right buzzwords including “business investment districts,” “sustainable development” and “strategic vision,” but does not really give much detail on how his vision will be transformed into reality.

“The role of civil society is very important in tackling the problem of informal settlements. The residents of these settlements have to be part of the solution. They have to be involved and have a say so in anything that we do. Without their support no amount of money will do any good. Whatever we build can be torn down. Whatever we clean will be made dirty. We need to put the residents of these settlements to work with the contracting companies in rebuilding, planting green areas, etc.,” said El Adly. “Our first two development priorities at the moment are the neighborhoods of Warrak and Imbaba.”

On the topic of tuk-tuks, El Adly called on the government to shut down any factory in Egypt that assembles the three wheelers. “We will license existing tuk-tuks and fine any unlicensed vehicles EGP 2,500,” he said.

On the topic of garbage El Adly said that 5,000-6,000 tons of garbage are removed from Faisal and Haram streets (the avenues leading to the pyramids) on a daily basis. “We have to treat garbage collectors like human beings. Today we have more street cleaners on each street and each group of cleaners has its own supervisor. It will take time but we will get there. Between 1930 and 1950, Cairo was one of the three most beautiful cities in the world. If we have the will we can bring it back to its glory days within 10-15 years,” said Adly. “If I didn’t see hope I would not have given up my private practice and sacrificed time and energy to take this position.

Ibrahim Eissa was also back on air for the first time in over a month. His program was devoted to reminiscing about the history of the Suez Canal and pointing out the irony of the fact that a remarkable project like the New Suez Canal was completed in less than a year, while we can’t seem to master much simpler tasks such as insuring that a ferry boat makes it safely across the Nile.

Magdy El Galad was filling in for Lamees El Hadidy, who appears to be on holiday. Amr Adeeb is off until 6 August, as we noted last night.

** READ ENTERPRISE IN ARABIC **

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SPEED ROUND

The Egyptian Exchange will launch a new equal weighted index (EWI) EGX 50 that includes the top 50 companies by value traded, according to a press release issued by the EGX on Sunday. The Indices Committee says the index, to launch 2 August, would be a better measure of market performance. The Indices Committee also amended conditions for inclusion in the EGX 30, opening the door to newly-listed companies and allowing companies with lower free floats to be included: Companies with free floats of less than 15% can now be included in the EGX30 provided they do not drop below 5% and meet the minimum required capital of EGP 100 mn. It also appears that the bar on the inclusion of companies that have turned in net losses for three or more years in a row has been lifted.

Net-net, the winners include Edita, GB Auto, Qalaa Holdings, Sidi Kerir, and Credit Agricole, all of which join EGX30, while Arabian Cement drops out of the benchmark. The EGX70 lost 18 players, while the EGX100 dropped 16 companies. An EGX list of indices release covers the entire roster (pdf download, Arabic only).

Kuwait’s Al-Salam, Beltone Capital listing on Egypt exchange -Omran: Kuwaiti investment company Al-Salam Group Holding has received approval to list on the EGX and offer depositary receipts, according to EGX Mohamed Omran speaking to Reuters on Wednesday. “With the listing of Kuwaiti Al Salaam Holding and Beltone Capital today there will have been 12 new companies listed on the Egyptian bourse since the beginning of the year,” Omran told Reuters by telephone. (Read)

MOVES- BG Egypt appoints Khaled Kacem as its new president: BG Egypt, a subsidiary of natural gas producer BG Group, announced on July 26 that it appointed Khaled Kacem as its new president. Kacem, a natural gas expert, succeeds Arshad Sufi, who will be continuing with the group as its company chairman in Egypt. Kacem has 23 years experience in the oil and gas sector in Egypt, Tunisia and the UK. Kacem joined BG in 1998, assuming various engineering positions in the group—in addition to expanding the group’s operations in Tunisia and the UK. Kacem was previously the general manager of Rashid Petroleum Company (Rashpetco), a joint venture with BG Egypt and PETRONAS and Edison. In a statement, Kacem said: “I’m proud to lead BG and contribute to its growth in Egypt.” (Read in Arabic)

The Central Bank of Egypt denied rumors that it had instructed banks not to issue credit cards or provide other services to security officials, judges or lawyers. In a statement to Al Mal, the central bank called the allegations “ridiculous.”

Prime Minister Ibrahim Mahlab suspended barge transportation along the Nile in the Greater Cairo region between sunset and sunrise until September, reported Al Mal. Additionally, no new licenses for docks or boats will be issued, and loudspeakers on small entertainment vessels and passenger boats are to be banned. Mahlab also tasked the Ministry of Irrigation and Water Resources to conduct a comprehensive survey of all river docks in the country and be certain of their safety within a week. The decisions come after a boat collision in Waraaq left at least 35 dead last week.

Interior Ministry announces annual reshuffle: Minister of Interior Magdy Abdel Ghaffar approved the annual reshuffle last Wednesday, as per Mada Masr, appointing 21 new deputy ministers and 24 new security directorate heads. Among the new appointments is General Aly Ahmed Abou Zeid as the new head of the North Sinai Security Directorate. “Former deputy Interior Minister Abdel Latif al-Badini told Mada Masr that this is a routine annual reshuffle that does not reflect any major shifts within the ministry. Badini explained that the reshuffle is usually used to replace those who have reached retirement age with younger officials.” (Read)

797 newly minted assistant prosecutors will be sworn-in on Sunday, 2 August, Al Shorouk reports, citing an announcement from the Prosecutor General’s Office. The fresh law graduates hail from across Egypt’s governorates and will take the oath of office in the Prosecutor General’s office HQ in Rehab. Attending the ceremony will be Acting Prosecutor General Ali Omran and Justice Minister El Zend.

‎Egypt’s state television and radio apparatus to be ‎restructured, says Transitional Justice Minister: The Egyptian Television and Radio Union (ERTU, aka Maspero) will be restructured to be more competitive with the private sector, according to Minister of Transitional Justice and ‎Parliamentary Affairs Ibrahim Heneidy in a press conference last Tuesday as reported by Ahram Online. “The issue of drafting a ‎unified law for national press organisations will take ‎some time, not only because a lot of proposals are ‎submitted in this respect but also because other ‎laws dealing with the national print media in one way ‎or another will have to be also redrafted,” Heneidy said.‎

Tunisia, Egypt boost Libyan border security: As reported earlier this month, Tunisia is working on building a 220-km fortified fence along its border with Libya, as the neglected country has become a breeding ground for new terrorists. “Tunisian President Beji Caid Essebsi said the barrier his country plans, which features a fence ringed by a defensive ditch, seeks to prevent Libyan militant groups from transiting through or basing in Tunisia,” according to Defense News. Meanwhile, the also-previously reported potential sale of USD 100 mn in border surveillance equipment from the United States to Egypt would appear to be with Egypt’s western border with Libya in mind. “This mobile surveillance sensor security system will provide Egypt with advanced capabilities intended to bolster its border surveillance capabilities along its border with Libya and elsewhere,” according to a statement by the Pentagon’s Defense Security Cooperation Agency (DSCA). (Read)

Saudi ministry of interior announces the arrest of 431 suspected members of Daesh: The announcement was made on Saturday that the Saudi interior ministry has arrested hundreds of suspected members of the terror group, saying that it had prevented attacks on mosques, security assets and at least one diplomatic mission, as reported by Reuters. The Saudi interior ministry said that most of those arrested were Saudi nationals, noting however that suspects of other nationalities were caught in the security sweep as well.

Pearson PLC sells Financial Times newspaper to Nikkei; Pearson in negotiations to sell 50% stake in The Economist: Pearson PLC sold the 127-year old Financial Times to Japanese newspaper Nikkei for GBP 887 mn on Thursday, The Guardian reports, amid speculation that the FT was at risk of losing its editorial independence. Japanese media have been characterized as being too friendly to business interests, shying away from criticism or deep investigation to retain access. In response to the criticism, chairman of the Nikkei Group Tsuneo Kita sought to reassure readers. “Let us be clear that the editorial independence will be maintained … The FT is going to be the FT — it remains unchanged,” as reported by the FT. Pearson CEO John Fallon echoed Kita’s remarks in The Guardian. With reference to the FT’s long-standing “hands-off” approach to editorial independence, Fallon said “I spent extensive time with Nikkei management and discussing this with senior colleagues at the Financial Times and I have every reason and every confidence to believe that Nikkei will take exactly the same approach.” Meanwhile, Pearson disclosed on Sunday that it was talks to divest itself of its 50% stake in The Economist, the FT reports. Italian-based investment company Exor said that it may be seeking to increase its share in the magazine as a result of the talks.

CORRECTION: A number of links in yesterday’s Energy section were in the wrong sequence. The most important of these, Eni’s statement on its recent discovery, may be found here. We regret the error.

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A MESSAGE FROM PHAROS HOLDING

Why there’s no real inflationary risk if the CBE moves to cut policy rates

After successfully predicting the Central Bank of Egypt’s latest round of EGP depreciation against the USD, Pharos Research is anticipating a second round of policy rates cuts, based on a basket of factors on the domestic and international level. For months, Pharos had advocated a policy rate cut to accompany the EGP’s depreciation, and the bank’s “pause” is essentially without justification.

As the Egyptian government prepares to cut energy subsidies and raise the standard sales tax by FY16, CBE officials may be wary of inflationary pressures on consumer prices. Our take: The CBE may contrarily risk disinflation in the case of maintaining current policy rates, especially that international commodity prices have been gradually weakening since January 2014 to hit record lows in June. Indices and forecasts also imply that prices will only sink lower in 2H15, meaning inflationary risks are relatively low, even in the case of subsidy cuts. Learn more about our reasoning and what it might mean to you here.
***

EGYPT IN THE NEWS

Stories on Egypt in the foreign press were dominated by news that 18 police conscripts were injured in Al Arish after a roadside bomb detonated on Sunday, as well as the extension of the state of emergency in North Sinai for an additional three months.

Secret detentions rise in Egypt as officers ‘operate outside the law’: While the story is nothing new (it’s been reported in the Egyptian media for some time now) it’s noteworthy that Al Arabiya is running with it. (Read)

Barney Thompson writes in FT: ‘Why comics and cartoons are flourishing in the Middle East,’ with significant focus on Egyptian artist Andeel. (Read, paywall)

‘Cracks in the new Pharaoh’s throne‘: Koert Debeuf assesses President El Sisi’s performance on the four basic promises from July 2013: “economic reforms and investments, religious reformation, democratic elections, and a victory in the fight against terrorism.” Debeuf concedes progress made on the first promise, but is critical of results on the latter three, calling El-Sisi’s push for religious reform a “political mistake.” While the President has received significant pushback from certain segments in society, Debeuf admits at the end of his critique on the reformation movement: “On May 31, El-Beheiry was sentenced to five years in jail for ‘contempt of religion.’ But the doors of the debate were thrown open and no one will be able to force them closed again anytime soon.” (Read)

WORTH WATCHING

Some of us at Enterprise may or may not have spent the Eid break doing this: Portlandia – Battlestar Galactica – One More Episode. Also, it’s been several days or perhaps weeks since we’ve had something from Portlandia. (Watch, running time: 9:53)

DIPLOMACY

Working Group on Egypt letter to John Kerry: The Working Group on Egypt, co-chaired by Michele Dunne, sent an open letter to US Secretary of State John Kerry ahead of the upcoming strategic dialogue between Egypt and the United States. The two days of consultations were set to take place this week as Kerry was due to arrive in Egypt, but a source in the know tells us the get-together will instead take place next week. The recommendations for what Secretary Kerry should press the Egyptian government are as follows:

• Bring counterterrorism legislation into line with Egypt’s constitutional requirements and its international human rights commitments;
• Revise its strategy toward the Sinai-based insurgency to adopt more effective security methods, along with political and economic strategies that will enlist the cooperation of the local population instead of disenfranchising it;
• Cease politically motivated trials, annul related death sentences and other punishments handed down in questionable trials, and release all political prisoners currently held with insufficient regard to due process of law;
• Bring to an end its assault on independent civil society organizations, including human rights organizations, and on local and foreign journalists;
• Initiate processes of national reconciliation to end social and political polarization.

While some of the above recommendations, such as pursuing economic strategies to counter violent extremism in the Sinai, make sense and have been repeated for what is possibly decades, pursuing national reconciliation with terrorist entities that have called for the death of the President seems a little off. (Read on POMED)

Efforts continue to return detained fishermen from Sudan: Foreign Ministry: 101 Egyptian fishermen who have were arrested in Sudan in April for entering Sudanese territorial waters continue to be held despite previous assurances that they were to be released, DNE reports. MFA spokesperson Badr Abdelatty told Daily News Egypt that the ministry is in ongoing communication with the Sudanese over the fishermen’s fate. (Read)

ENERGY

EGAS issues second international tender to import 45 shipments of liquefied gas
Al Borsa | 21 July 2015
EGAS issued a second international tender to import 45 shipments of liquefied gas through the end of 2016; the deadline for offers will close at the end of this month. The second tender guarantees the original technical and financial conditions from the first tender issued last October, said EGAS President Khaled Abdel Badei. EGAS had issued a tender last October to import 75 shipments of liquefied gas to which seven companies submitted offers. The tender was won by Vitol, BP, Noble Energy and Trafigura to import until the end of December 2016 as well. (Read in Arabic)

Eni, BP, Abu Sinan have reported the most important petroleum discoveries in 2015
Al Mogaz | 24 July 2015
The petroleum sector has made numerous important discoveries since the start of 2015, which pose a good opportunity for petroleum strategic reserves. Among these is Eni’s discovery in the West Melehia concession which accounts for 2100 barrels per day. Ganoub El Wadi Petroleum Company also made a discovery close to Hurghada with a 9.6 mn barrels reserve and a daily output of 430 barrels. BP made its second gas discovery in the North Damietta Offshore Concession, the estimated potential in the concession exceeds 5 tcf. EGPC announced an oil discovery in the Abu Sinan area with estimated reserves of 2.2 mn barrels. Most recently, as we reported in yesterday’s issue, Eni announced on Monday a gas discovery in its Abu Madi West license, an area in the Nile Delta 120 km north-east of Alexandria. The discovery is, according to preliminary estimates, around 15 bn cubic meters, in addition to associated condensates. (Read in Arabic)

Ganoub El Wadi will announce concession winners in 10 oil & gas fields next month
Al Borsa | 26 July 2015
Ganoub El Wadi said it will announce the E&P winning bids for its 10 crude and natural gas fields in mid-August, adding that it is currently still evaluating the bids. According to the company’s head Abu Bakr Ibrahim, the winning bids will be taken to the petroleum minister for final approval. These concessions include six offshore fields and four on the Nile Delta. (Read in Arabic)

EGP 51 mn to build coal grinding mill for El-Nahda Cement
Al Borsa | 22 July 2015
Misr for Mechanical and Electrical Projects (Kahromecha) will begin building an EGP 51 mn coal grinding mill for El-Nahda Cement by next week, said managing director of Kahromecha Yousef Harbi. The mill reduces the coal to small flammable particles that are used as fuel. The project will be completed by January, he added, highlighting that coal mills are currently irreplaceable due to the increasing prices of mazut, gas and diesel, and the difficulties faced by factories to secure the necessary fuel they need. (Read in Arabic)

Electricity sector competes with Petroleum for highest debts
Al Shorouk | 26 July 2015
Electricity sector debts have been catching up with the petroleum sector, according to a report by Al Shorouk, which says that the EGPC is the highest-indebted entity owing money to Egyptian banks. The electricity sector is followed closely by the contracting sector, which has experienced a boom in activity due to national projects being issued throughout the country. The most noteworthy of the debtor companies are Orascom Construction, the Arab Contractors and ElSewedy, for their role in the emergency electricity plan. Loans and credit facilities for the electricity sector have surpassed EGP 30 bn in 1H15. (Read in Arabic)

2.6 GW to national grid, says General Electric
Al Shorouk | 26 July 2015
General Electric announced it was able to provide an additional 1.86 GW to the national grid in just seven months, one of its fastest executed projects around the world. General Electric is set to provide a total of 2.6 GW to the grid by the end of the summer, said Steve Bolze, CEO of General Electric. (Read in Arabic)

INFRASTRUCTURE

Housing Ministry designs connection between Eastern and Western Desert Roads
Al Mal, Daily News Egypt | 26 July 2015
The Housing Ministry announced it has completed the design of a road connecting the Eastern and Western Desert Roads through the Assiut Plateau. The road will allow for the creation of a new urban settlement in the Assiut Plateau and potentially cool super-heated real estate prices in the city. The roads will eventually be connected to the Wadi El Gedid road. The project’s total cost is c. EGP 300 mn, with the first outlay of EGP 50 mn to be spent during FY 2015/ 2016, according to Daily News Egypt. (Read in Arabic)

MANUFACTURING

Chemical and Fertilizer Export Council aims to boost exports to US by 30% in two years
Amwal Al Ghad | 26 July 2015
The Chemical and Fertilizer Export Council is aiming to boost the sector’s exports to the United States by 30% within the coming two years, says council head Khaled Abou El Makarem. The council said the sector achieved EGP 200 mn worth of exports in 5M2015, compared to EGP 475 mn in FY2014. (Read in Arabic)

HEALTH & EDUCATION

Egypt and South Korea sign agreement on vocational education
Shorouk News | 26 July 2015
Minister of International Cooperation Naglaa Al-Ahwany signed an agreement with South Korean ambassador to Egypt on July 26 to strengthen cooperation in the field of vocational education. The agreement stipulates that South Korea provide a USD 1 mn development grant and conduct a study on the state of vocational education in Egypt through the cooperation between the Korean International Cooperation Agency (KOICA) and the Technical Education Center in Al-Amiriya, Giza. The agreement aims to contribute to development of human resources in Egypt, benefit from South Korea’s experience in the field of vocational education, and increase employment opportunities. (Read in Arabic)

Technical Education Minister reveals plans to establish first nuclear school in Egypt
Al Wafd | 26 July 2015
Egypt’s first vocational high school focusing on nuclear technology education will open in 2016 and be jointly operated by the Ministry of Technical Education and Training and the Ministry o Electricity. Technical Education Minister Mohamed Yusuf said in a television appearance on Sunday that school will be located in Al-Dabaa and offer a five-year program with the last two years of education focusing on specializations in nuclear energy. Acceptance rates will be limited and competitive, according to Yusuf. (Read in Arabic) (See Video Here)

Hearing in Medical Syndicate case against gov’t postponed to 9 September
Al Mal | 26 July 2015
The Administrative Court has postponed to 9 September the next hearing in a lawsuit filed by the Egyptian Medical Syndicate against the Office of the President, the Cabinet and a unit of the Finance ministry. The suit seeks to overturn a government decision to change how doctors at state-funded health institutions are compensated. (Read in Arabic)

Interior ministry forbids teacher protest a day before it’s expected to take place
El Fagr | 26 July 2015
The Interior Ministry issued a directive on Sunday banning a protest by teachers scheduled to be held on Monday, according to a statement released by the Independent Teachers Coalition. The statement also highlights the timing of the decision, which it claims is a deliberate step to sabotage the protest and hence leaves it open to appeal. The Coalition’s protest was meant to call attention to the deterioration of the education system and to urge for government action to repair it. (Read in Arabic)

** Further reading in Health & Education: Egypt’s ailing health care system, Al-Monitor.

REAL ESTATE & HOUSING

Pioneer’s Holding to buy remaining stake of Cairo for Housing and Development
Reuters Africa | 26 July 2015
Pioneer’s Holding board approved an offer to buy remaining shares of Cairo for Housing and Development at EGP 11.80 per share for a full acquisition. The financial services firm said on Sunday that its subsidiary purchased a 9.07% stake in the real estate firm, raising Pioneers’ total ownership to 45.73%. (Read)

HDB awards 5,000 plots of land for low-income housing
Al Borsa | 26 July 2015
The Housing and Development Bank has awarded 5,000 plots of land allocated for low-income housing development in 10 new urban communities in Sixth of October, Obour and Upper Egypt. Participants would have had to have purchased the rights to these plots which range in size from 209-276 m2 and are awarded at random. Price for participation depends on the area, with plots in Sixth of October and Obour reaching EGP 975 per m2, while prices in Upper Egypt ran as high as EGP 710 per m2. (Read in Arabic)

TOURISM

Tourism Ministry leading three roadshows starting in October
Shorouk | 26 July 2015
The Tourism Ministry and the Egyptian Tourism Federation will lead three roadshows to Canada, Mexico, the United States and South America — one each in October, November and December. The move was announced by Tourism Minister Khaled Ramy, Al-Shorouk quotes ETF chief Elhamy El-Zayat said the ministry needs to redouble efforts to promote cultural tourism if Egypt is to meet its target of deriving USD 26 bn in tourism industry receipts by 2020 from the arrival of 20 mn visitors. (Read in Arabic)

Tourist arrivals surge 16.5% in May
Al Mal | 26 July 2015
The Central Agency for Public Mobilization and Statistics (CAPMAS) reported 894,6000 tourist arrivals in Egypt during the month of May, up 16.5% from 768,200 in the same month of last year. 43.9% of all tourists coming to Egypt were from Eastern Europe; of those 73.3% were Russians, while Western Europeans accounted for 30.7% of total tourist arrivals. More than one third of the arrivals from Western Europe were German nationals. (Read in Arabic)

Ismailiya Museum braces for Suez Canal festivities
Al Mal | 26 July 2015
The Ismailiya Museum is preparing month long festivities to coincide with the new Suez Canal opening ceremony on 6 August, according to general manager Mona Shaaban Hafez. A temporary collection will display the most recent antiquities found in the excavation process, and compare them to the earlier findings. (Read in Arabic)

TELECOMS & ICT

ITIDA launches IT manufacturing development programs
Al Mal | 26 July 2015
The Information Technology Industry Development Agency (ITIDA) announced it is now offering a new EGP 20 mn batch of development programs designed to increase the institutional capacity of companies working in the field of IT and communications, Al Mal reports. ITIDA’s new programs also aim to grow the administrative capabilities of the employees, said ITIDA CEO Hussein El Gueretly. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Car maintenance very costly, spare parts depleting, say car distributors
Al Mal | 26 July 2015
The unavailability of US dollars is causing car distributers to buy spare parts from international companies with long terms loans at much higher prices than normal. This in turn puts any extra cost faced by the distributor or service center onto the consumer. Spare parts costs are up by an unprecedented 40%, says Desouky Sayed Desouky, head of the spare parts division at the chambers of commerce. (Read in Arabic hereor here)

OTHER BUSINESS NEWS OF NOTE

Eastern Company profits up to EGP 1.08 bn
Al Mal | 26 July 2015
Eastern Company achieved a net profit of EGP 1.083 bn in the fiscal year ending 30 June 2015, compared to EGP 908.405 mn in the same period the year before, achieving a growth rate of 19.2%. (Read in Arabic)

Starbucks EMEA sales up 13% in 13 months.
Al Mal | 26 July 2015
Starbucks reported a 22% rise in net profits in the third quarter ending 28 June, surpassing USD 626.7 mn. Starbucks sales in Europe, the Middle East, and Africa have gone up 13% in the last 13 months. (Read in Arabic)

Agriculture Export Council: Rice exports reach EGP 175 mn in last 10 months
Amwal Al Ghad | 26 July 2015
Agriculture Export Council official Magdi Alwlayli said that since October 2014 rice exports reached 30,000 tons worth nearly EGP 175 mn. These numbers fell way short of government expectations, which forecasted 1 mn tons of rice exports worth USD 1 bn during the past 10 months. Alwlayli attributed the drop in rice exports to the government’s decision to impose a USD 280 fee per ton and force producers to sell 40% lower than its actual price. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Finance Ministry cuts wages to reduce budget deficit
Al Mal | 26 July 2015
Finance Minister Hany Kadry issued a memo slashing base salaries of ministry employees as part of his bid to curb the budget deficit for the 2015-16 fiscal year. Sources claimed to the newspaper to be in possession of a memo that they claim violates a basic tenet of the Civil Service Law, in addition to diverging from an earlier draft of the budget that had included a pay raise for Finance Ministry staff. (Read in Arabic)

Coalition to Support Tahya Masr Fund files complaint against Khaled Abol Naga
Al Mal | 26 July 2015
Tarek Mahmoud, Secretary General of the Coalition to Support Tahya Masr Fund, filed a complaint to the Attorney General accusing actor Khaled Abol Naga of insulting President Abdel Fattah El Sisi, the military and the police. In his filed complaint, Mahmoud accused Abol Naga of “attempting to destroy the state” through posts on social media networks. Mahmoud called for Abol Naga to be banned from traveling until further investigation. (Read in Arabic)

ON YOUR WAY OUT

Hisham Geneina interview in Mada Masr: Head of the Central Auditing Authority Hisham Geneina was interviewed by Mada Masr last Tuesday on what he claims is his slow-motion ouster from office. The interview doesn’t offer much in the way of new insights to those closely following the story, but Geneina goes into a little more in his usual accusations that Justice Minister Ahmed al-Zend is behind the recent decree that states the President has the right to remove the heads of independent oversight bodies, including the Central Auditing Authority. Geneina says his conflict with Zend began with the latter’s refusal to hand over the Judges Club’s books for auditing, which led to a number of lawsuits between the two parties. “The marriage between politics, money, and media, Geneina says, has created networks infested with corruption, which threaten a repeat of the 2011 uprising that ousted the long-time rule of President Hosni Mubarak.” (Read)

Cairo court fines TV host Ahmed Moussa for slander, again: Sada el Balad talk show host Ahmed Moussa was fined EGP 15,000 for slandering Zamalek Ultras White Knights lawyer Tarek El-Awady, accusing him of spying and receiving foreign funding. (Read)

Guantanamo prison closing plan means new Obama-congress battle; two former Guantanamo inmates arrested in Belgium for suspected terrorist activity: The Obama administration has released a plan to transfer 64 current detainees being held at Guantanamo to the U.S. federal justice system, while the remaining 52 detainees would either be repatriated to their home countries or third countries “under terms intended to assure that they won’t threaten the U.S.,” according to Bloomberg. The plan is expected to be met with stiff resistance from Republicans. Meanwhile, two former Guantanamo inmates were arrested in Belgium on Friday, accused of belonging to a terrorist organization that was recruiting jihadists to fight in the Syrian civil war, according to the AFP.

Officials: Roadside bomb wounds 18 Egypt police conscripts: A roadside bomb in the North Sinai town of Al Arish detonated on Sunday, wounding 18 police conscripts, according to the AP citing security sources. The Daesh affiliate in Sinai Wilayat Sina claimed responsibility for the attack. Security officials also noted that three separate attacks on checkpoints resulted in the injuries of three army conscripts. (Read)

The Mahlab government has decided to extend its state of emergency in North Sinai for an additional three months, announced Prime Minister Ibrahim Mahlab on Saturday. “The decision, announced by Prime Minister Ibrahim Mahlab in a written decree on Saturday, will be implemented in Rafah, al-Arish, Sheikh Zuweid and surrounding areas starting on Sunday. It also extends a night-time curfew in place in the same areas,” reports Reuters. The decision marks the third time that the state of emergency has been extended since being introduced in October 2014.

Egypt Cup quarter-finals postponed: The Egyptian Football Association (EFA) announced it has delayed the matches between Ismaily SC and Smouha SC from 3 August to 4 August, with the match between Misr El-Maqassa and Petroject from 30 July to 3 August. (Read)

Portuguese maestro Jose Mourinho has given Mohamed Salah the green light to leave Chelsea, reports Metro. In response to a reporter’s question on whether the player would remain in his squad, Mourinho brashly stated that the Egyptian football sensation, “doesn’t belong at Stamford Bridge.” Shortly after making his callous remark, however, Mourinho spoke of Salah in a more positive tone: “He’s a good boy and a good player. He needs more top-level football so I’m happy with any decision him and the club make.” With his name on the wishlists of several top Italian clubs, including Juventus, Roma, and Inter Milan, Salah will most likely find himself back in Series A this upcoming season.

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