Deutsche, HSBC arranging USD 3.7 bn for Siemens project to boost Egypt’s generation capacity by 50%

TL;DR

• Deutsche Bank, HSBC said to be arranging USD 3.7 bn for Siemens’ project to boost power generation by 50%
• Israeli delegation in town to talk gas exports
• 4G mobile internet by first quarter of 2016, CIT minister claims
• Egypt falls in U.S. State Department’s human trafficking report
• UAE’s Global Sphere building USD 204 mn luxury hotel on North Coast
• Ikhwan is cross with Nader Bakkar. Or: The sublime joy of watching Islamists bicker.

WHAT WE’RE TRACKING TODAY

The two-day SolarTech Egypt wraps up today at the J.W. Marriott Hotel.

WHAT WE’RE TRACKING THIS WEEK

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 journalists Mohamed Fahmy, Baher Mohamed and Peter Greste.

Also on Thursday: Royal Dutch Shell will release half year financial results, while
BG Group will release half year financial results on Friday, 31 July. Regarding the progress of Shell’s bid to acquire BG, the most recently passed hurdle was announced on Friday, 24 July, when the Brazilian competition authority granted approval of the Shell offer, following similar approval by the U.S. Federal Trade Commission announced in June.

ON THE HORIZON

Sunday, 2 August: US Secretary of State John Kerry is scheduled to arrive in Cairo for the Egypt-U.S. strategic dialogue. Ahead of his visit, junior Senator and Republican presidential candidate Marco Rubio, as part of a bipartisan group of lawmakers that included Sen. John McCain, sent Kerry a letter asking him to hold Egypt accountable with regard to human rights. “We are troubled by recent developments in Egypt that suggest the country is not on a path to long-term sustainable security or political inclusion,” the senators say in the letter. “We are also concerned that recent U.S. policy and assistance decisions have been interpreted by the Egyptian government as an endorsement of the current political climate.”

Thursday, 6 August: The inauguration of the New Suez Canal is scheduled to take place. On Tuesday, 28 July, Chairman of the Suez Canal Authority Mohab Mamish stated that work would be completed “within hours.” Also on 6 August: Global Telecom is set to announce financial results for the period ended 30 June 2015, and the first Republican presidential debate will also run on 6 August on Fox News in association with Facebook.

LAST NIGHT’S TALK SHOWS

4G internet by 1Q 2016, says CIT Minister Negm on Youssef El Hosseiny: ONTV’s Youssef El Hosseiny hosted Minister of Communications and Information Technology Khaled Negm in his studio, where among other things, the minister promised the implementation of 4G mobile internet in Egypt by the first quarter of 2016. Negm says 48% of all Egyptian internet users are in Cairo. He also promised that the older price plans for monthly internet service will not be cancelled. Negm said the state’s project to replace copper wire with fiber-optic cable is ongoing, adding that only the state should be involved in the work for security reasons. He also denied the three mobile incumbent mobile operators were exerting pressure to block Telecom Egypt from receiving a 4G mobile license.

Oh God, Ibrahim Eissa. In the event you’ve lucked out by not having watched Eissa’s 25 / 30 program on ONTV lately, Eissa still opens his program with his seemingly-endless shaky-cam classroom-style lecture to a group of young, listless randoms. Well, all listless except for the sycophant who sits on Eissa’s right, whose role on the program seems to be to laugh at everything Eissa says, much like Robin Quivers or perhaps Salacious Crumb. The format is so distracting that it is difficult to review for content. Also, if Eissa is just getting warmed up at 1 am, he needs to rethink his entire program because, well, we have stuff to do tomorrow.

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SPEED ROUND

Deutsche Bank, HSBC said to be arranging USD 3.7 bn facility for power plants in Egypt -Sources: Deutsche Bank AG, HSBC and Kfw-Ipex Bank will help state-run Egyptian Electricity Holding Co. raise financing for the power projects signed with Siemens AG, according to three individuals with knowledge of the draft loan speaking to Bloomberg. The sources say the loan is being supported by credit insurance outfitEuler Hermes Group. A draft agreement has been sent to the economic group within Cabinet for review, according to Minister of Electricity Mohamed Shaker, who declined to confirm the size of the facility or the banks involved. Siemens inked an EUR 8 bn agreement in June to increase Egypt’s power generation capacity by 50% Siemens will build three new natural gas-fired combined cycle power plants (including the world’s two largest) and 12 wind farms with some 600 turbines — all with a total production capacity of 16.4 GW, based on MOUs signed at the EEDC in March. Both Sewedy Electric and Orascom Construction have won contracts from Siemens to participate in the contracts.

Israeli delegation lands in Cairo to push for gas agreement: Delek Drilling Chairman Gideon Tadmor and CEO Yossi Abu landed in Cairo on Monday, along with representatives from the consortium operating the Tamar gas field, to push for exporting gas from the Tamar and Leviathan fields, Al Araby reported. Delek signed a contract earlier this year with the Egyptian Dolphinus Holdings to import to Egypt 5 bcm of natural gas over three years at an estimated cost of USD 1.2 bn, while the contract remains in place for seven years. The gas will be sent to Egypt through the East Mediterranean Gas Company’s pipelines, the same ones used to send gas from Egypt to Israel up until 2012. The delegation will also meet with BG and Union Fenosa, whom operate in Egypt, to negotiate a gas agreement of up to 15 years.

Unified Nile Law passes review at Cabinet’s Legislative Reform Committee: Transitional Justice Minister Ibrahim Heneidy announced that the Legislative Reform Committee has completed its review of a draft Unified Nile Law penned by the Water Resources Ministry. If passed, the law will provide a comprehensive set of regulations governing both civil and commercial use of the river and its banks, granting the Water Resources Ministry sweeping powers, Al Masry Al Youm reports. Some of the 41 articles of the law includes:

• Mandating the Water Resources ministry with full regulatory and supervisory authority over activity on the Nile, superseding those of local government;
• The designation of protected areas placing specific areas off-limits to fisheries and other commercial activity;
• Establishing set boundaries for the drawing of water for irrigation and other uses;
• All commercial and civil activity must obtain a license from the ministry, whether on the Nile or at its banks, including all vessels, docks, ports and riverside establishments.

UAE’s Global Sphere to build USD 204 mn luxury hotel on North Coast: The 500-room luxury hotel is set to open in the North Coast in El Alamein, marking the Emirati company’s first foray into the hospitality industry. “The opportunities in emerging markets and in the Middle East markets are promising. We are looking forward to tapping these opportunities. The new hotel is the first tourism project for the company in Egypt,” group chairman Abdullah Al Sayegh was quoted as saying. (Read)

Telecom Egypt expects to enter negotiations on pricing with other service providers who rent its infrastructure, TE CEO Osama Yasin said, claiming the fixed-line monopoly has set “new, lower prices” for access. According to Al Borsa, utilizing TE’s STM-4 network will cost EGP 282,000 per year, while its STM-16 will go for EGP 901,000 and ethernet will cost EGP 352,000 annually. The move comes after a number of service providers complained of the “exorbitant” prices TE charges for access to its infrastructure, claiming the fees helped TE subsidiary TE Data win a 70% market share and near monopoly on internet service. In other TE Data news: TE Data has appointed new members to its board of directors.According to Al Shorouk, Mohamed Salem will now serve as TE Data Chairman, Azza Turk will become Executive Vice President and Mohamed Labib will serve as the company’s Deputy Director. Tamer Gadallah and Ahmed Osama were removed their positions as managing directors, but will continue to serve as board members. Salem also told Al Shorouk that new TE Data internet rates will take effect starting on Wednesday, 29 July.

Finance ministry to amend income tax law following court ruling: The Finance Ministry and the Tax Authority are exploring amending the Income Tax Law in light of the High Constitutional Court’s ruling that article 123 of the law was unconstitutional. The article governs disputes between financiers and the Tax Authority, permitting either side the right to appeal decisions at a primary court. According to sources within the ministry, among the options the authority is considering is amending the law to mandating the State Council with arbitrating on disputes with the Tax Authority, Al Borsa reports.

Speaking of taxes: Whatever happened to the legislative amendments and / or executive regulations enshrining the delayed implementation of the new capital gains tax? That’s the subject of what appears to be significant finger-pointing between government agencies, Al-Mal reports, suggesting there may be clarity — and, possibly, another tax grab — ahead of the inauguration of the New Suez Canal. (Read in Arabic)

Health minister shuts down pharmaceutical factory, suspends use of Rehydran after four children allegedly die from rehydration medication: Health Minister Adel El-Adawy on Monday shut down a pharmaceutical factory producing rehydration treatment Rehydran, as well as suspended its use in all hospitals, following what it said was the death of four children and the illness of 24 others in Beni Suef following administration of the medicine, according to Ahram Online. The case is currently being investigated by the Prosecutor General’s Office.

Tourism revenues for 1H15 top USD 3.3 bn says Minister: Egypt’s tourism revenues grew 3.1% year-on-year in 1H15 to USD 3.3 bn, according to the minister of tourism. In a statement to Al Borsa, Khaled Ramy stated that these results came on the back of a 8.2% growth in the number of tourist arrivals in first half of the year. Average spending by tourists reached USD 73.30, while the average number of nights spent rose 13.7%.

The U.S. State Department released its annual Trafficking in Persons report, with Egypt dropping in the rankings from Tier 2 to Tier 2 Watch List. The report notes that despite “making significant efforts … the government did not demonstrate overall increasing anti-trafficking efforts compared to the previous reporting period,” and that “victims were routinely treated as criminals and punished for unlawful acts committed as a direct result of being subjected to human trafficking.” (Read the section of the report which includes Egypt [Country Narratives D-I as a pdf] or download the report in its entirety as a pdf here).

Nader Bakkar, Harvard, the Ikhwan, and the sublime joy of watching Islamists bicker: The Ikhwan have turned to social media to mock Salafist Nour Party co-founder Nader Bakkar’s recently awarded Harvard fellowship, Mada Masr reported on Monday, with Ikhwan member Khaled al-Ghazaly taking to Twitter to write: “Nader Bakkar’s scholarship to Harvard is the reward for treason.” As reported by Mada Masr: “Several other members of the banned Islamist organization started using the hashtag, ‘For you Harvard I will trim my beard’ in their tweets about Bakkar, with some claiming he did not meet the necessary qualifications to earn the scholarship. Last week, former MP Mohamed Abu Hamed told the privately owned media platform Al Bawaba that, ‘Egyptian young people, more qualified than Bakkar, didn’t win the fellowship,’ claiming that this kind of biased support for Salafi figures was part of a broader US strategy to disenfranchise the Brotherhood.” Whenever Islamists argue, the only thing to do really is grab the popcorn and enjoy the show. Our response can be summed as follows: (Watch, running time: 19 seconds)

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A MESSAGE FROM PHAROS HOLDING

Alex Containers is a strong buy

Pharos Holdings nearly doubled its fair value estimate for Alexandria Containers and Cargo Handling (ALCN.CA) on the back of stronger-than-expected operational results for FY15, which revealed a 39.2% surge in revenues for the year ended on June 30. The company recently reported unaudited results with revenues standing at cc EGP 1.2 bn vs. an expected EGP 1.01 bn and a gross profit margin of 69.7%, up from 66% last year.

In our latest update, we had projected cash dividends of around EGP 18.70/share (dividend yield of 8.5%), based on the company’s published June 2015 result highlights. However, over the last five years Alex Containers has consistently distributed c. 57% of its annual net income as dividends, implying an even-higher yield. The company’s BoD recently proposed the distribution of EGP 19.30/share out of FY15’s net profit, which translates into a dividend yield of 8.7%. With the potential for significant capital appreciation still high and competition remaining relatively low, our DCF-based valuation for the company yields a strong buy recommendation. For a more detailed analysis of Alexandria Containers’ results, click here.
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EGYPT IN THE NEWS

What is Missing about Egypt?: Abdel Monem Said Aly, director of the Regional Center for Strategic Studies in Cairo, writes for the Huffington Post about how international media is currently handling Egypt’s situation, setting out to refute the contentions in the international media regarding Egypt’s “sustainable instability“ and “durable misery“ by claiming that they don’t place bad news into perspective. Said Aly recaps Egypt’s economic recovery following the 30 June 2013 Revolution, but calls on old statistics as he notes that the “financial market in Egypt was declared as the fastest growing in the world” — that was the case in 2014; in 2015, ours is one of the worst-performing equity markets. What’s missing in the news is Egypt’s new motto, he claims: “Egypt is going to build itself as if there is no confrontation with terrorism; and it is going to fight terrorism as if there is no need for developing the country and taking it out of the miserable state of affairs that has been produced by revolutions and Muslim Brothers’ rule.” The middle part of that motto sounds a little problematic to say the least.

The ups and downs of post-Arab Spring Journalism: Reporters Dana Priest, Deidre McPhillips and Katy June-Friesen from the Washington Post interview journalists about their experiences with the authorities from countries including Bahrain, Egypt and Saudi Arabia. A former United Nations special rapporteur on freedom of expression notes: “Arbitrary detention is their main way of dealing with dissent.” On Egypt, the story claims there was relative freedom of the press between the removal from office of Hosni Mubarak and the rise to power of Mohamed Morsi, who reimposed controls on media. (Read: After Arab Spring, journalism briefly flowered then withered)

WORTH READING

The Long War Journal published a profile last week on Hisham Ali Ashmawi, former Egyptian special forces officer and current leader of terrorist group Al Murabitun. Ashmawi is the suspected planner of the assassination of Prosecutor General Hisham Barakat and has called for a jihad against President Abdel Fattah El Sisi. Ashmawi is also suspected of planning the assassination attempt on the life of former minister of interior Mohamed Ibrahim. “Egyptian officials have accused him of being involved in a string of high-profile attacks since he joined the jihadists. The Long War Journal’s analysis of those operations reveals that he was likely once a member of Ansar Bayt al Maqdis (ABM).” (Read Former Egyptian special forces officer leads Al Murabitoon)

DIPLOMACY

The Turks secured NATO support in an emergency meeting on Tuesday for their campaign against the Kurds — dressed up as a campaign against Daesh. According to Turkish FM Mevlut Cavusoglu: “There is no difference between PKK and Daesh. “ (Read)

Saudi FM lashes out at Iran amid rising tensions after nuclear agreement: On Sunday, Iran’s Foreign Minister Javad Zarif said in Kuwait that “some countries … want conflict and war in this region,” apparently referring to the kingdom, according to the AFP and as reported by DNE. This led to Saudi’s FM Adel al-Jubeir on Monday saying that such “aggressive statements … [do] not represent the intentions of a country seeking good relations.”

Mahlab meets with Tony Blair: According to Youm7, Egyptian PM Ibrahim Mahlab met with former British Prime Minister Tony Blair on Tuesday 28 July. Blair is on a three-day visit to Cairo to meet with various officials to discuss the latest developments in the region.

ENERGY

BG agreement still preliminary -Shell
Al Mal | 27 July 2015
Reports of a complete buyout of BG Group by Shell are still preliminary talks and nothing is final, Al Mal writes today, noting that BG operate in Egypt through Rashid Petroleum Company (Rashpetco), assuring that BG’s operations in Egypt through the Rashid and Borolos concessions in the Delta are unaffected by negotiations. Rashpetco is preparing technical feasibility studies for the Phase 9b and are awaiting the green light to begin the expansion. (Read in Arabic)

Comprehensive plan to provide butane by next winter
Al Mal | 28 July 2015
Minister of Petroleum Sherif Ismail announced the ministry’s plan to provide butane gas throughout the coming winter by increasing output at refineries and developing the butane infrastructure. This plan involves contracting several importers of natural gas at a time when oil prices are low to save up a strategic reserve of about 105-110 thousand tons through July and August. (Read in Arabic)

EGPC to import EGP 7.5 bn in petroleum products
Al Mal | 28 July 2015
The Egyptian General Petroleum Corporation (EGPC) intends on importing EGP 7.5 bn worth of petroleum products to cover the local market consumption and power plant demand throughout August. EGPC inked a number of contracts with international exporters that should last until the end of September, including agreements with Algeria’s Sonatrach and the Emirates’ ADNOC. (Read in Arabic)

Ministry of Petroleum begins EGP 15 bn Ethylene production plant in Alexandria
Amwal Al Ghad | 28 July 2015
The Ministry of Petroleum announced it is currently constructing an ethylene and derivatives production complex at the Egyptian Ethylene and Derivatives Company (ETHYDCO) one of several important projects in the petrochemicals and refinery fields. The ministry announced, through its website, the total cost of the complex at EGP 15 bn, which aims to utilize ethane and propane mixes produced at the Western Desert gas complex in Alexandria. (Read in Arabic)

Sewedy Subsidiary to import 1.6 mn smart electricity meters
Al Borsa | 28 July 2015
Slovenian-based Iskraemeco, a subsidiary of El Sewedy Cables, announced it has won a contract to manufacture and deliver 1.6 mn smart electricity meters for EUR 160 mn to four Dutch buyers. According to El Sewedy, the company is a leader in the field of measuring, billing, collecting, processing, control and managing electricity. The first delivery for the order is expected in March 2016. (Read in Arabic)

INFRASTRUCTURE

Siemens signs agreement to upgrade Egypt’s railway system
Daily News Egypt | 27 July 2015
Egyptian National Railways (ENR) signed an MoU with Siemens AG to enhance cooperation in projects aiming at improving Egypt’s electrification systems. Minister of Transport Hany Dahi said that the agreement includes the modernization and development of the signs systems for major railway lines, upgrading old infrastructure and enhancing the level of safety for passengers. The technical and financial offer will reportedly be funded by Siemens. (Read)

BASIC MATERIALS & COMMODITIES

Abu Qir Fertilizers’ output drops from reduced gas supply
EGX | 27 July 2015
Abu Qir Fertilizers and Chemicals Industries Company claimed in a release on Monday that the factory’s output have dropped as a result of the drop in gas supply from the Egyptian Natural Gas Holding Company (EGAS), as of Sunday evening until further notice. Abu Qir Fertilizers, which is listed on EGX, is a leading company in the production of fertilizers and chemicals, especially nitrogen fertilizers. (Read in Arabic)

Ministry of Supply to import 75k head of cattle from Sudan
Al Mal | 28 July 2015
Supply Minister Khaled Hanafi is the midst of talks with chief executives of Sudanese-based meat exporter Al ategahat Almtadeda Co., to import 75K live cattle from Sudan to be processed in Egypt, to be then sold to Egyptian cooperatives. Hanafi praised the increased trade relations with Sudan, and espoused the potential of the agreement, citing an earlier agreement with Almtadeda for the delivery of 30K cows, whose meat was sold in Egypt for EGP 40 per kg. (Read in Arabic)

MANUFACTURING

Evergrow for Specialty Fertilizers to pump EGP 2.5 bn in investments until end of 2017
Amwal Al Ghad | 28 July 2015
Evergrow for Specialty Fertilizers announced it intends on investing EGP 2.5 bn in the local market over the coming two years as part of the company’s strategy to expand its output by using that investment to inaugurate three factories, according to Evergrow president Mohamed Al Kheshen. The new factories will provide 2000 job opportunities, bringing the company’s total employees to 5000, he added. (Read in Arabic)

HEALTH & EDUCATION

Ministry of Education expects decision to appoint 30k teachers in August
Youm7 | 28 July 2015
Minister of Education Moheb Refaay says he expects by 20 August a decision that will see the hiring of nearly 30k teachers. In an effort to restructure the educational system in Egypt, Refaay said that he will propose criminalizing private lessons to Prime Minister Ibrahim Mahlab. Further, Refaay said Article 89, that specifies increases in teachers’ salaries, will be sent to the Council of Ministers for further study. (Read in Arabic)

Six companies win tender to import 150 thousand boxes of Hepatitis C drugs
Al Mal | 28 July 2015
Six companies won rights to import 150,000 boxes of Hepatitis C treatment, after a fierce competition that dropped the price of one box to EGP 680 from EGP 1400 in the last tender put out by the Ministry of Health. The tender was awarded to Pharmed Healthcare, Pharco, AUG Pharma, Mash Premier, Miracle Pharma, and Therapy, to be divided equally among them, Al-Mal reports. In related news, Prime Minister Mahlabannounced on Tuesday that the Health Ministry will begin distributing the 2nd generation of Sovaldi’s Hepatitis C treatment in health centers across the country.

Alexandria Pharmaceuticals and Chemical Industries profits up 23.6%
Al Mal | 28 July 2015
Alexandria Pharmaceuticals and Chemical Industries reported a 23.6% increase in profits in the year ending 30 June 2015, recording a net profit of EGP 59 mn from revenues of EGP 383 mn, up from EGP 47.7 mn from EGP 312 mn revenues in the year ending 30 June 2014. (Read in Arabic)

REAL ESTATE & HOUSING

Arab Contractors to complete projects worth USD 128 mn in Congo next year
Amwal Al Ghad | 28 July 2015
The Arab Contractors Company will complete projects worth USD 128 mn in Congo next year, according to company chairman Mohsen Salah. The projects consist of a residential compound in the capital, and a highway stretching 114 km connecting several cities, including maintenance of all roads connecting to it, he added, noting that the projects are funded by the European Union. (Read in Arabic)

Soreal beats out competitor for 59 feddan land in New Cairo worth EGP 626.4 mn
Al Borsa | 28 July 2015
Soreal for Real Estate Investment, a subsidiary of SODIC, has acquired a 59 feddan plot of land in New Cairo for EGP 626.4 mn (EGP 2528 per m2)beating out Misr Italia Group in an auction held by the New Urban Communities Authority. According to Alaa Abdel Aziz, head of the New Cairo City Authority, this plot is one of seven up for grabs by real estate developers in New Cairo and are between 35-150 feddans in area. Soreal last auction purchase in New Cairo was for a 301 feddan plot, purchased at EGP 2.4 bn (EGP 1915 per m2), an indicator to rising land prices in the city. (Read in Arabic)

TOURISM

Misr Travel asks for share of MB company revenues
Al Mal | 28 July 2015
Misr Travel, A subsidiary of the Holding Company for Tourism (HCT), will ask for 3% of revenues made by Muslim Brotherhood-owned tourism companies that were confiscated by the government committee under the Ministry of Justice, according to Mervat Hataba, Chairman of the Holding Company for Tourism. The confiscated companies are being run by the HCT, noting that she’s asking for 3% of revenues, not net profits, because most of these companies are running losses because they’re over-staffed. Rashad Rifaei, president of Misr Travel, had previously told Al Mal that his company would ask for a share of revenues of the confiscated companies in exchange for managing them. (Read in Arabic)

Emirati tourist arrivals could rise 45% this year -ETA chairman
The National | 27 July 2015
Egypt expects a 45% rise in tourists from the United Arab Emirates, according to ETA chairman Samy Mahmoud at the launch of the Egyptian Tourism Authority’s first Gulf office in Abu Dhabi. Egypt will receive 80,000 Emirati visitors, a sizeable increase from last year’s 55,000, according to Mahmoud. He attributes the increase to Egypt’s improving political situation and overall image. (Read)

BANKING & FINANCE

3.9 mn civil servants are now paid electronically
Al Mal | 28 July 2015
E-Finance completed issuing 2.4 mn wage cards to government employees in the last six months, bringing the total cards issued and activated to 3.9 mn, up from 1.5 mn at the start of this year, according to e-finance deputy head of strategy and business development Haitham Tarabek. The National Bank of Egypt and Banque Misr possess the largest percentage of cards issued this year. (Read in Arabic)

IDBE to pump EGP 100 mn into SMEs
Al Mal | 28 July 2015
The Industrial Development and Workers Bank (IDBE) aims to pump an additional EGP 100 mn into SMEs before the end of 2015, according to deputy chairman Hamdy Azaam. The current SME portfolio stands at EGP 500 mn. IDBE is set to meet with the Social Fund for Development (SFD) in the coming days to negotiate a loan to direct into SMEs, noting that the total lending portfolio for SMEs in Egypt is EGP 3 bn, while the needed funding for SMEs is EGP 30 bn, an EGP 27 bn deficit that Niveen Badr El Din, head of funding at the SFD, hopes will be addressed by the new microfinance law. (Read in Arabic)

Egyptians Abroad negotiates with QNB
Al Mal | 28 July 2015
The Egyptians Abroad Investment and Development Company is in negotiations with QNB to set up a joint real estate fund with targeted investments of EGP 3 bn, according to managing director Hashim El Sayed. Egyptians Abroad will set up a company with a capital of EGP 60 mn to manage the fund in cooperation with the Misr Iran Development Bank, he added, highlighting that Egyptians Abroad will still control the majority. (Read in Arabic)

Audi, Banque Misr, Bank of Alexandria, to participate in USD 1.2 bn loan to El Nasr for Coke and Chemicals
Al Borsa | 28 July 2015
Audi Bank, AlexBank, and Banque Misr have agreed to co-finance a USD 1.2 bn loan to Al Nasr for Coke and Chemicals with Arab African Bank, the primary bank on the loan. A main condition for the loan was that it be repaid in hard currency. (Read in Arabic)

NATIONAL SECURITY

The Armed Forces are adopted a strategy of roaming checkpoints as a means of both targeting checkpoint dodgers and avoiding being fixed target for militant attacks. The move covers a large area and will target hard-to-reach paths in the mountainous Sinai peninsula. This tactic has already yielded results, reports Al-Ahram, as a number of vehicles carrying weapons have been stopped in this manner.

Police killed 2 suspected members of Ajnad Misr in a shootout in Giza on Monday, according to state news agency MENA and as reported by Ahram Online. According to MENA, officers arrived at the apartment of the suspected terrorists on Faisal Street, at which point the suspects opened fire on the officers, “prompting police to shoot [the two men] dead.” According to ANSA quoting Al Ahram, the two suspects may have been involved in the attack against the Italian Consulate in Cairo.

Woman killed in North Sinai as missile hits her home: A bedouin woman was killed on Sunday and two others injured in a missile that hit their home in Rafah, north Sinai, according to AMAY as reported byEgypt Independent. No terrorist entity has claimed responsibility as of yet.

REGIONAL

UAE to raise gas fuel prices 24%, cuts diesel by 29%: According to Al Mal, The United Arab Emirates (UAE) said on 28 July that it plans to raise gas prices by 24% in an effort to save money and encourage car owners to save on gas. The Emirates News Agency said on Tuesday that the price of 95 octane gas will increase to USD 0.58 cents per liter at the beginning of August, while diesel prices will drop 29% to USD 0.54 cents per liter.

Explosion at the Iran-Turkey gas pipeline: According to Sky News Arabia, Turkish Energy Minister Taner Yildiz said on 28 July that an explosion occurred in the natural gas pipeline between Iran and Turkey. The explosion took place in the Turkish Agri province, 15 km from Iran’s border. Yildiz blamed Kurdish rebels for the explosion.

ON YOUR WAY OUT

Al-Warraq residents establish community fund for victims of boat accident: A number of Al-Warraq residents on July 28 decided to create a community fund to raise money to help victims of the tragic boat accident which killed more than 40 people last week. A resident in charge of the community fund, Adham Salman, said that to encourage citizens and businessmen to donate to the fund, residents have so far raised nearly EGP 50k. (Read in Arabic)

25 workers killed in fire following gas tank explosion at Obour city furniture factory -Health ministry: The death toll for those killed in a furniture factory fire on Tuesday climbed to 25, according to health ministry spokesperson Hossam Abdel-Ghaffar speaking to Ahram Online.

Zamalek SC officially clinched the 2014/15 Egyptian Premier League title, following El Ahly’s 1-1 draw with Smouha on Tuesday. This marks the 12th time that Zamalek SC have been named Egyptian Premier League champions.

Swimmers lacking proper swimwear (or any such attire at all, really) have joined other angry protests in the French Riviera against King Salman, reports Huffington Post. The protests were sparked after French officials closed off a public beach in the French Riviera to residents and vacationers to accommodate the Saudi Royal and his entourage. “This is public property — a place which everybody should be allowed to enjoy, not just very rich Saudis,” said an outraged resident.

Hany Shaker wins Music Syndicate elections: According to Youm7, singer Hany Shaker beat out fellow singer Mustafa Kamel and composer Munir Al-Waseemy to become the Head of the Egyptian Music Syndicate on 28 July.

BY THE NUMBERS

USD CBE auction (Tuesday, 28 July): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Tuesday, 28 July): 7.88 (+0.01 from Sunday, 26 July)

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Turnover: EGP 491.6 mn (5% above the 90-day average)

WTI: USD 47.68 (-0.63%)
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