Sunday, 2 August 2015
WHAT WE’RE TRACKING TODAY
US Secretary of State John Kerry arrived in Cairo on Saturday ahead of the Egypt-U.S. strategic dialogue scheduled to take place on Sunday. The verdict in the retrial of former Al Jazeera journalists Mohamed Fahmy, Baher Mohamed and Peter Greste is expected today, having been postponed on Thursday, 30 July, according to state news agency MENA. However, unnamed judicial sources speaking to the AP say that the judge involved in the case is seriously ill, and a further postponement is expected, as reported by the Globe and Mail.
WHAT WE’RE TRACKING THIS WEEK
The Executive Regulations of the controversial Civil Service Act will be issued this week, said Planning Minister Ashraf El Araby, reports Al Mal.
The inauguration of the Suez Canal Axis will take place on Thursday, 6 August, the same day Global Telecom will announce its results for the second quarter. Also a week from today: The candidates running for the Republican presidential nomination will hold their first debate on Fox News in conjunction with Facebook.
The Emirates NBD / Markit Economics Purchasing Managers’ Index for Egypt will drop on Tuesday, 4 August. PMIs or Saudi Arabia and the UAE will be out the same day.
The schedule for parliamentary elections will likely be announced sometime this week, according to Minister of Parliamentary Affairs and Transitional Justice Ibrahim El-Heneidy speaking to reporters on Saturday.
LAST NIGHT’S TALK SHOWS
Saturday was a relatively quiet night for Egyptian talk shows: Youssef El Hosseiny on ONTV opened his program by launching into an attack on officials of the Amiri University Hospital in Alexandria, which is under the jurisdiction of the Ministry of Higher Education, following the death of a young man who died of a brain hemorrhage following two days of being in the ICU without receiving proper diagnosis or care. Hosseiny called out Minister of Higher Education Sayed Abdel Khaliq by name for his perceived lack of concern.
Rania Badawy filled in for Amr Adeeb, who she said is on vacation until Thursday, when Adeeb will be on hand to cover the inauguration ceremony of the New Suez Canal. Badawy hosted Egyptian Media Production City Chairman Osama Heikal in the studio, where they covered a wide range of topics, beginning with the recent controversy over proposed restrictions on the reporting of casualties from terror attacks.
Badawy: “What are journalists supposed to do? They need to get urgent breaking news out.”
Heikal: “They should wait for official statements. This is wartime reporting in the middle of an ongoing media war” with the Ikhwan, whose efforts he said were to smear any initiative of the government, including the Suez Canal Axis. Heikal then launched into a lengthy defense of the project’s potential benefits.
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SPEED ROUND
At long last, gas for the huddled industrialists: EGAS has contracted for a floating storage and regasification unit (FSRU) capable of feeding 500 mn cubic ft of gas per day into the national distribution grid, which it plans to supply the industry sector, Petroleum Minister Sherif Ismail announced in an interview withAl Borsa. Demand for gas by heavy industry is 900 mn cubic ft, with EGAS supplying them with 250 mn cubic ft, as 70% of national gas production is used to supply power plants. The FSRU will arrive in Egypt by the end of September and after trial runs, will begin full operations by October of this year.
But if you’re accustomed to running your A/C at home, you won’t be rejoicing with the capitalists: Electricity prices were raised by an average of 19% for mid and high household use, the electricity ministry announced on Thursday as reported by Reuters. Low-end household usage will not be affected by the price increase. (Read)
6,000 tons of butane are expected to arrive in Suez port on Saturday, from Saudi Arabia, announced the spokesperson for the Red Sea Ports Authority, bringing in much needed supplies of fuel. This comes as Ain Sokhna Port is expected to receive 149,000 tons of liquefied natural gas from Qatar. (Read in Arabic)
The Central Bank of Egypt kept benchmark rates unchanged following the meeting of its Monetary Policy Committee on Thursday, according to a CBE release. “At this juncture, the MPC judges that the key CBE rates are currently appropriate given the balance of risks surrounding the inflation and GDP outlooks,” according to the statement. (Read) The CBE also said on Thursday that M2 money supply was up 16.4% y-o-y.
Egypt is in the midst of late-stage negotiations with parties from the UAE, France, Italy, Saudi Arabia and China to invest in the Suez Canal Development Axis, with Minister Ashraf Salmanestimating that resulting investments would amount to USD 150 bn. Salman added that these planned investments would cover 15 different sectors. He added that Saudi investors are especially interested in refining, while the UAE and Kuwait are interested in logistics and commercial operations respectively. His interview with Al Borsa also explored his plans to implement trickle down growth across the governorates as a result of these investments.
Underscoring the region’s’ growing importance, the government has earmarked EGP 51 bn in investments to develop the Suez Canal area and Sinai in FY 2015/16, said planning minister Ashraf El Araby at a press conference on Saturday. Meanwhile, the governorates of Upper Egypt, Cairo, and Alexandria have been allocated EGP 20.4 bn, EGP 19.7 bn, and EGP 9 bn respectively. (Read in Arabic)
Turkey snubbed in Suez Canal Opening celebrations: In the feel-good news of the year, Turkish Foreign Ministry spokesperson Tanju Bilgiç complained to journalists on Wednesday that Turkey has yet to receive an invitation to the inauguration of the Suez Canal Axis on 6 August, Ahram Online reported, despite FM Sameh Shoukry’s insistence in July that representatives from all countries were invited.
Dairy-maker Domty will formally notify the EGX’s listing committee of its intention to go public in August, reports Al Mal. The company’s IPO will likely take place in early 2016.
Private sector investments in Egypt during 9M of the 2014-2015 fiscal year reached EGP 149 bn, up from EGP 120 bn in the same period in previous year, according to Planning Minister Ashraf El Araby. He added that 65% of projects undertaken for the period were private sector investments, while government projects accounted for 15.7%. He attributed El Araby said the success owed to excellent “government planning” (coincidence?) in a press conference held on Saturday. (Read in Arabic)
Qatari-funded and Syria-based Islamist militia Ahrar el Sham, a group with links to Al Qaeda and to whom just last month The Washington Post generously offered itself as a media platform, which the militants used to insist they have nothing to do with terrorism, on Saturday published their sincere condolences on the death of Taliban leader Mullah Omar. (Read in Arabic, H/t Eric Trager’s timeline).
Adly Hussein, former Qalyubia governor, has been appointed as president of Union of Producers & Exports of Horticultural Crops (UPEHC), according to Al Masry Al Youm. Agricultural expert Mahmoud Omara, Central Agricultural Cooperative Union (CACU) president Bahaa Salim and General Assembly of Agrarian Reform president Magdi Alsharaki will serve as members of the new temporary UPEHC Board of Directors.
Putting their money where their mouth is: U.A.E. becomes first GCC country to halt fuel subsidies, bonds gain as it boosts Abu Dhabi coffers: As we noted in our Wednesday edition citing Al Mal, the United Arab Emirates has become the first GCC state to slash fuel subsidies, with new prices going into effect on Saturday, 1 August. Following the deregulation, the price of one liter of 95-grade gasoline rose by 23%, while the price of diesel fell 29%, Arabiya reports. “Reducing gasoline subsidies enhances the credit profile of the U.A.E.,” John Sfakianakis, Riyadh-based Middle East director at asset manager Ashmore Group Plc, said Wednesday by phone to Bloomberg. “It’s good news for both Abu Dhabi and Dubai, and other GCC countries should follow suit.” Bloomberg also notes Abu Dhabi bond yields declined by 5 basis points since the UAE’s announcement of its intention to cut fuel subsidies. Moody’s says that cutting fuel subsidies will save USD 3.75 bn in expenditures for the Emirates over the next two years.
BG Group 2Q2015 earnings beat analyst expectations, reports record production of 703k boepd during the quarter: BG Group reported quarterly results on Friday, with core earnings of USD 1.372 bn, a decrease of 48% y-o-y but beating analyst expectations of USD 1.328 bn, according to Reuters. The record production of 703k boepd helped offset the falling price of crude over the past year. (Read in Reutersand or BG’s earnings release, pdf)
Royal Dutch Shell to cut 6,500 jobs, posts 2Q15 earnings of USD 3.8 bn, down 35% from USD 6.1 bn y-o-y: Royal Dutch Shell announced 2Q15 earnings on Thursday of USD 3.8 bn, saying it plans to lay off 6,500 employees as part of cost-cutting plans due to the drop in oil prices over the past year. The company said its “prudent approach” included reducing operating costs by USD 4 bn and scaling back its oil exploration operations. Shell also said that it was “planning for a prolonged downturn” in oil prices. The price of oil is currently about USD 52 a barrel, down from about USD 110 a barrel a year ago. (Read)
IDF could launch pre-emptive strikes against Daesh in Egypt -Senior IDF officer: Israel could pre-emptively attack Daesh in the Sinai if it was suspected an attack against Israel was imminent, according to senior IDF Brigadier General Royi Elcabets speaking on Wednesday at a ceremony marking the end of his command of a border patrol division, Arutz Sheva reported. “It is our duty to pre-empt it and strike at it, if and when this happens,” he said in remarks relayed by the military.
Mahlab advises youth to work as tuktuk drivers as the gov’t moves to ban tuktuks across Cairo:“Youth should not think of opening up cafes to make a living, but should consider driving tuktuks” due to limited public sector jobs, said Prime Minister Ibrahim Mahlab during an interview on the program Cairo 360 on Al Kahera Wal Nas. The following day, Mahlab clarified his comments to Al-Shorouk, saying he had not intended to ridicule Egypt’s youth, but rather wished to encourage them to seek out employment opportunities themselves. Meanwhile, as we noted from AMAY on Thursday, the government is moving to ban tuktuks from Cairo. (Read in Arabic) (Watch PM Mahlab’s comments on Cairo 360 in Arabic, running time: 1:53)
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A MESSAGE FROM PHAROS HOLDING
Pharos re-initiates coverage of CIB with a ‘Hold’ recommendation
We re-initiate coverage on CIB with a Hold recommendation post the significant rally in the share price in 2014 (56.9%), 2015 YTD (15.0%) and the surge in the current P/B multiple to roughly 70% higher than its 1999-2014 cycle average. Based on analysis of macro data, the surge in CIB’s balance sheet size and profitability metrics in 2013, 2014 and Q1-15 was predominantly driven by the exceptional monetary and FX policies executed since late 2012 / early 2013. Still, the shift to the high-margin retail business is providing a solid hedge to profitability. Management’s agility is a source of comfort, as evidenced by the steady shift to the underpenetrated and high-margin retail credit business. The bank’s retail credit market share rose from 3.0% in 2009 to 5.8% by end Q1-15. Securing Citigroup-Egypt’s retail portfolio in mid 2015 compliments the organic growth in this business line, as per management’s guidance. Click here to read more on why we’re recommending a Hold on CIB.
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EGYPT IN THE NEWS
The latest delay in the verdict in the Al Jazeera retrial was the most widely-reported on story concerning Egypt in the foreign press over the weekend and into Sunday morning, with a verdict being promised once again for 2 August.
Mideast scholar and expert on Egypt’s judiciary Nathan J. Brown, along with Katie Bentivoglio, a junior fellow at the Carnegie Endowment for International Peace, write in the Washington Post’s Monkey Cage blog: ‘Who is running the Egyptian state?‘ “A year ago, we described the emerging legal and institutional order in Egypt as a system of ‘resurgent authoritarianism‘ being codified into ‘a way of life.’ Today, the emerging order is clearer. Politically aware Egyptians increasingly describe a presidency that is certainly dominant, but unable to pull all the levers of the Egyptian state with effectiveness and efficiency.” (Read)
After a very clear assessment of the Ikhwan’s failures in office, the veil once again drops over the eyes ofNathan J. Brown and Michele Dunne in the conclusion of their most recent article for the Carnegie Endowment for International Peace: “The Brotherhood has been damaged by the post-2013 crackdown, but it has survived. Now it appears determined to play a role when the opportunity for change next arises in Egypt, but a different role than it did last time. As of 2015, that role is vaguely conceived of as more ‘revolutionary,’” with the movement pushing for deeper change than it did in 2011–2013.” Which even the authors admit they have no idea what that means. (Read Unprecedented Pressures, Uncharted Course for Egypt’s Muslim Brotherhood)
Mokhtar Awad writes in the Wall Street Journal’s Think Tank division’s Washington Wire on ‘Countering the Islamist Violence Rising in Egypt.’ “These dynamics run deeper than the Muslim Brotherhood and its reactions to the overthrow of President Morsi. That’s a big reason the U.S. and Egypt should discuss this fluid and fragmenting security landscape as partners–without lectures or diatribes … The U.S. and Egypt have an opportunity to constructively address the factors that contribute to this dangerous security environment. A more open and dynamic political environment in Egypt that encourages debate and discourse would allow peaceful, political means of dissent and further isolate radicals.” (Read)
Emerging markets strategist Emad Mostaque argues, as many others have before him, that Egypt’s current path parallels that of Algeria in the 1990s, further comparing the government’s campaign against the Ikhwan to that of the “eradicateurs,” a faction of the Algerian establishment that saw no room for compromise with political Islam. Mostaque argues for reconciliation, while at the same time arguing that Egypt’s current economic situation potentially represents an “opportunity for foreign investors as the currency adjusts and rates top out,” provided of course if Egypt can create a similar Algerian approach of “negotiation and reconciliation” rather than outright warfare against its insurgencies. (Read Egypt faces the ghosts of Algeria)
The New York Times has a profile on Egyptian playwright Yussef El Guindi, where the title, description and even url of his the article would probably result in zero copies of Enterprise being delivered to inboxes this morning. Also, the title and subject matter are probably not for the faint of heart. After that sufficiently vague description, we ask that you find the article on your own if you’re interested; we don’t need email delivery problems.
WHAT YOU CLICKED ON LAST WEEK
The most-clicked links in Enterprise last week were:
SPOTLIGHT on Turkey vs. the Kurds vs. Daesh: The US-NATO sanctioned move set to crush Kurdish nationalism: It would appear that most observers within Turkey and around the world implicitly understand that Turkey’s belated entry into the war against Daesh, while partially based on sincere concerns over the terror group, is in fact mostly a cover to attack Kurds in Iraq or wherever they may be found. Turkey’s active involvement in the coalition comes after a long series of excuses. First it was the kidnapped Turkish diplomats, then upon their negotiated release, there was the excuse that the Turks feared blowback from Daesh within Turkey itself, where they are suspected of having established a dangerous presence. Which of course makes sense: They simply can’t fight the terrorists because that might upset Daesh and make them fight back — always a sound line of reasoning.
Governments around the world appear to largely buy into the “war against Daesh” line from Ankara, at least publicly, in tacit exchange for the use of Turkish bases to launch strikes. The Egyptian foreign ministry issued a vague and statement condemning infringements on Syria’s territorial integrity, without mentioning Turkey by name. The global media, however, is not so encumbered, and a number of cogent critiques have been published in recent days, several of which are worth a closer read.
‘Turkey’s bombs expose a failed Syria policy‘, writes David Gardner for FT. “The problem with this linear account of Ankara’s volte-face on Isis is that hardly anyone outside government circles believes it … [Erdogan] is fishing for nationalist votes, and trying to tar as terrorists the pro-Kurdish coalition whose electoral breakthrough thwarted his plans for a supermajority to invest the presidency with overarching powers.” (Read, paywall)
Bloomberg View published an editorial on the Turkish incursion titled ‘Erdogan’s Wars‘: “The conclusion is hard to avoid: Erdogan’s war on terror is ensnaring not just Islamic State militants but also an opposition party he’s eager to see returned to the fringes of Turkish politics.”
Turkish liberal Mustafa Akyol attempts to give some balance and context in the score-settling between the AKP and the PKK in Hurriyet Daily News, writing that “When an ISIL suicide bomber killed 32 pro-Kurdish socialist youngsters in Suruç on July 20, it not only opened Ankara’s eyes to the ISIL threat within its own borders. It also angered all Kurds, especially the PKK, which holds the Justice and Development Party (AKP) government (rightly or wrongly) responsible for the rise of ISIL in the region. Hence two days later, PKK militants assassinated two Turkish policemen in their very apartments, while they were sleeping with their families. In return, Turkish war planes hit PKK headquarters in northern Iraq. In return, the PKK assassinated a Turkish officer while he was strolling the streets with his wife and daughter … For ‘peace’ to be re-established, it is imperative that the PKK backs off from this authoritarian militancy. It is also imperative that the AKP/Erdoğan side thinks long-term rather than merely according to the next elections. Sadly though, both of these seem a bit unlikely now.”
WORTH READING
A former Google exec on how to make tough decisions quickly: Dave Girouard, former president of Google Enterprise and current founder and CEO of startup Upstart, writes for Quartz on the critical importance of speed in decision making. “All else being equal, the fastest company in any market will win. Speed is a defining characteristic—if not the defining characteristic—of the leader in virtually every industry you look at … A good plan violently executed now is better than a perfect plan next week. General George Patton said that, and I definitely subscribe to it … I’m always shocked by how many plans and action items come out of meetings without being assigned due dates.” (Read)
DIPLOMACY
The Cairo Declaration: President Abdel Fattah El Sisi met with Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman bin Abdelaziz Al Saud in Cairo on Thursday, according to an emailed statement from Ittihadiya. The president extended a formal invitation for King Salman to visit Egypt, and at the conclusion of their meeting, the president and the crown prince issued the Cairo Declaration, “in which the two countries reiterated their longstanding and strong bilateral relations and their commitment to enhancing them in all fields, while establishing the process necessary,” according to the statement.
… According to Ahram Online, the declaration “outlines six facets of cooperation; notably, the development of military cooperation and working towards establishing a proposed Joint Arab Force; enhancing joint cooperation and investment between the two countries in the fields of energy, electricity, and transportation; and defining maritime borders between the two countries.” The president then spoke by phone on Friday with King Salman bin Abdelaziz Al Saud to reaffirm the Cairo Declaration reached on Thursday, according to another statement from the presidency.
Amy Hawthorne writes on Five Issues That Should Be Discussed at the US-Egypt Strategic Dialogue from the perspective of the United States for the Atlantic Council.
Diplomatic efforts are still ongoing to secure the release of 101 Egyptian fishermen who have been detained in Sudan since April for trespassing in Sudan’s territorial waters, Ahram Online reports. A retrial for the fishermen is set to take place on Sunday. Egypt’s ambassador to Sudan Osama Shaltout states that the fishermen were on their way to Eritrea, had the requisite permits and were not intending to fish in Sudanese waters.
ENERGY
Subsea 7 awarded USD 500 mn contract to develop offshore West Nile Delta project
Company Statement | 30 July 2015
UK-headquartered engineering and services company Subsea 7 S.A. announced on Thursday the awarding of a contract to develop the Taurus and Libra fields offshore Alexandria in the first phase of the West Nile Delta project from BP and its partner DEA, according to release from Subsea 7. Work is set to begin immediately, with construction of the subsea structures set to be completed at the Petroject Maadia yard near Alexandria. (Read)
Gov’t to spend upwards of USD 7 bn on LNG and crude imports -Planning ministry
Egypt Independent, Youm7 | 01 Aug 2015
Egypt expects to import 7.79 mn tonnes of LNG, at a cost of USD 3.55 bn, and 6.37 mn tonnes of crude at a cost of USD 3.51 bn in FY 2015 / 16, according to an official statement from the planning ministry. According to the same source, the government’s revenue from the Suez Canal is to reach USD 5.5 bn in the current fiscal year, a modest increase from the USD 5.4 bn that was recorded in FY 2014 / 15. (Read in English or in Arabic in Youm7)
INFRASTRUCTURE
Gov’t begins work on EGP 3.6 bn infrastructure projects in Suez Canal Area
Al Mal | 01 Aug 2015
The government is undertaking several large-scale infrastructure projects in the fields of electricity, highway development, and housing in the Suez Canal area, worth an estimated EGP 3.6 bn, said Minister of Housing Moustafa Madbouly. Most prominent among these projects is the 30 June Corridor, a 95-km highway which runs parallel to the Suez Canal. Another project is the Azmy bridge, an EGP 50 mn movable bridge. These projects, while not falling under the umbrella of the Suez Canal Area Development Project, aim to provide support to the mega-project, explained the minister. (Read in Arabic)
ENR to pay back EGP 10 bn debt to National Investment Bank
Youm7 | 01 Aug 2015
The Egyptian National Railways (ENR) will pay back EGP 10 bn in debt it owes to the National Investment Bank in the coming weeks, said planning minister Ashraf El Araby. The minister believes that ENR is on the right-track, and that by improving both its services and facilities, ENR should be able to pay all its debts to its various creditors shortly. El Araby also said his ministry is in the process of formulating a comprehensive development strategy for ENR that will be presented to the Transportation Minister once it has been finalized. (Read in Arabic)
HEALTH & EDUCATION
The Egyptian Medical Syndicate calls on El-Sisi to help them receive their “back pay”
Al Mal | 01 Aug 2015
The Egyptian Medical Syndicate called on President El-Sisi to on their behalf and help them obtain “back pay” for medical professionals allegedly owed by the Health and Finance ministries when they were seconded from their initial places of employment to government facilities. (Read in Arabic)
Exams for Secondary Technical Diplomas delayed
Al Mal | 01 Aug 2015
Exams for secondary level technical and vocational diplomas scheduled to be held on Thursday 6 August have been postponed by order of the Education Minister, due to the opening celebrations of the Suez Canal. Students are urged to check with their nearest board of education committee for rescheduling. (Read in Arabic)
REAL ESTATE & HOUSING
Cairo Governorate to invest EGP 1 bn in Maspero Triangle redevelopment project
Amwal Al Ghad | 01 Aug 2015
In collaboration with the Minister of Urban Development and Informal Settlements, the Cairo Governorate plans on investing nearly EGP 1 bn in the redevelopment project of the Maspero Triangle area by the end of the year, according to Cairo Governor Galal Saeed. Saeed said that the Maspero Triangle residents will be relocated or financially compensated, but that the redevelopment project will not forcefully displace or evict residents; rather the project will create new land divisions that will include new investment projects. (Read in Arabic)
TOURISM
Security convoys for tourist buses to be gradually cancelled in South Sinai
Egypt Independent | 01 Aug 2015
Security convoys for tourist buses will be cancelled gradually so that tourists may enjoy their travels without delays, said South Sinai Security Director Magdy Moussa according to AMAY and as reported by Egypt Independent. As any of our readers would know if they’ve attempted to travel by land to Sinai with foreigners, tourist buses must wait at security checkpoints to congregate with other buses into one convoy for police to escort them, a wait which can last hours. During his inspection of Dahab on Friday, Moussa said that surveillance cameras have been installed to help ensure security. (Read)
TELECOMS & ICT
Mobile phone subscribers down y-o-y in June 2015 -CIT ministry
Amwal Al Ghad | 01 Aug 2015
The number of cell phone subscribers in June 2015 went down to 96.03 mn subscribers — a 5.73 mn decrease compared to June 2014, according to a report issued by the Ministry of Communications and Information Technology. Cell phone usage rates stood at 110.88% at the end of June 2015, compared to 119.69% for the same period last year. The report also stated that landline subscriptions fell by 120k subscribers y-o-y to 6.46 mn in June 2015. (Read in Arabic)
AUTOMOTIVE & TRANSPORTATION
Car sales down 5.4% in 1H2015
Egypt Independent | 30 July 2015
Car sales in Egypt fell 5.4% to 65,600 cars in 1H2015, in comparison to 79,885 cars in the first half of 2014, according to a report by the Automotive Marketing Information Council (AMIC). However, car sales were up by 5% to 18,300 cars for the month of June y-o-y. Bus sales were steady for the month of June y-o-y, coming in at 2,570 buses. (Read)
BANKING & FINANCE
Finance ministry plans to issue EGP 83 bn worth of treasury bonds in August
Al Borsa | 01 Aug 2015
The finance ministry plans to issue EGP 83 bn worth of treasury bonds in August. These include EGP 65 bn in T-bills, and long term bonds with three, five, seven and ten year maturity worth EGP 6 bn, EGP 6 bn, EGP 3.2 bn, EGP 5.5 bn respectively and a zero coupon worth EGP 4 bn. (Read in Arabic)
Libano-Suisse Takaful Egypt wins AUC insurance contract
Al Mal | 01 Aug 2015
Libano-Suisse Takaful Egypt has signed a EGP 54.5 mn agreement to become the official health insurance provider for AUC staff, announced Libano-Suisse Takaful managing director, Beshar Sowas. The agreement will cover 1,178 employees of the university, providing them with coverage both within and outside campus grounds. Company also provides coverage for AUC’s athletic teams. (Read in Arabic)
OTHER BUSINESS NEWS OF NOTE
Customs Authority buys scanners with USD 65 mn grant
Egypt Independent, Al Mal | 01 Aug 2015
Rapiscan, L-3 and Morpho Egypt were awarded the fourth phase of a tender issued last April to supply scanners for incoming shipments, the Customs Authority said on Saturday according to AMAY and as reported by Egypt Independent. The scanners will be financed by a USD 65 mn grant from the US, and training on the new equipment with regard to anti-smuggling will be provided in the United States. (Read in Egypt Independent or in Arabic in Al Mal)
Cairo Governorate, EBRD look to overcome capital’s litter crisis
Al Mal | 01 Aug 2015
Cairo Governorate signed an MOU with the EBRD and the Ministry of Urban Renewal and Informal Settlements on Saturday to conduct a study that aims to find a solution to the capital’s litter crisis. The study comes in light of the fact that Cairo governorate’s contracts with foreign trash collectors are set to expire in 2017. The study will aim to learn from the experiences of other large cities that succeeded in reducing solid waste. (Read in Arabic)
LEGISLATION & POLICY
Egyptian-manufactured goods could get preference in government tenders
Al Mal | 01 Aug 2015
The drafting of the Executive Regulations of Law No.5 of 2015, which ensures that domestically manufactured goods receive preferential treatment when competing for Egyptian government contracts, has been completed, said Industry and Trade Minister, Mounir Fakhry Abdelnour. The Executive Regulations should go into effect once they are approved by cabinet in the coming weeks, added the minister. The law aims to improve the competitiveness of domestically-manufactured goods. (Read in Arabic)
EGYPT POLITICS + ECONOMICS
State employee wages up 79% over last 4 years, says Dimian
Al Shorouk | 01 Aug 2015
Public sector wages are up to EGP 218 bn in 2015 from EGP 96 bn in 2011 — an EGP 122 bn increase, according Minister of Finance Hany Kadry Dimian during a television interview on CBC Egypt on 31 July. Kadry said that inflation remains high, however, which reflects negatively on wage increases. In a related matter, Kadry defended his decision to reduce the budget deficit to 9%, saying the move should not be considered austerity, given that current deficit is at EGP 251 bn. (Read in Arabic)
NATIONAL SECURITY
Air Force receives eight F-16s on Friday ahead of Kerry’s visit: Eight F-16s arrived in Egypt from the United States on Friday, the US Embassy in Cairo reported, with additional four jets set to arrive in the fall. “The F-16s provide a valuable capability that is needed during these times of regional instability. America’s commitment to a strong relationship with Egypt is demonstrated by continued cooperation and capability sharing between our two countries. Extremists threaten regional security and these weapon systems provide a new tool to help Egypt fight terrorism,” said U.S. Embassy Senior Defense Official in Cairo Major General Charles Hooper in the embassy’s statement.
Navy receives FREMM frigate: The Egyptian navy at the Ras El-Teen naval base in Alexandria received on Friday the new FREMM (Frégate européenne multi-mission) frigate from France, Ahram Online reports. The ceremony marking the arrival of the frigate, named Tahya Misr, was attended by Defense Minister Colonel General Sedki Sobhi, Egypt’s Chief of staff Lt. General Mahmoud Hegazy, the French Military attaché in Cairo, and Governor of Alexandria Hany El-Messiry.
National Defense Council extends mandate for Yemen campaign for 6 months: President El Sisi presided over a meeting of the National Defense Council on Saturday, where in addition to domestic security concerns, the Council decided that Egypt will extend its mandate “in the Arab Gulf region, the Red Sea and Bab-el-Mandeb for an additional six months or until the combat mission is accomplished,” according to an emailed statement from Ittihadiya.
ON YOUR WAY OUT
Police too busy to secure trial of policemen charged with torturing lawyer to death -MOI: The Cairo Criminal Court on Saturday announced it was informed by security officials on Thursday that they would be unable to secure the trial of two police officers charged with torturing lawyer Karim Hamdy to death during his interrogation at the Matariya police station in February 2015, Ahram Online reports. Security officials gave their reason as being busy with preparations for the Suez Canal Axis inauguration, according to the court. The trial has been postponed to 29 August, Youm7 reports.
Eighteen-month old Palestinian toddler Ali Saad Dawabsha was burned to death in an arson attack on his home in the West Bank on Friday, with the suspected perpetrators being Israeli settlers. The toddler’s surviving family members were themselves fighting for their lives on Saturday, as protests over the arson attack entered a second day. According to Ahram Online, the “family’s small brick and cement home in the village of Duma was gutted by fire, and the words ‘revenge’ and ‘long live the Messiah’ were spray painted on a wall.” Israeli Prime Minister Benjamin Netanyahu has called the arson attack on the Palestinian family an act of terrorism and would seek justice, but Palestinian Authority President Mahmoud Abbas has said that regardless of Netanyahu’s assurances, he will seek to file a complaint to the ICC.
BY THE NUMBERS
USD CBE auction (Thursday, 30 July): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Thursday, 30 July): 7.88 (unchanged from Sunday, 26 July, Reuters)
EGX30 (Thursday): 8,191.53 (+1.06%)
Turnover: EGP 573.6 mn (22% above the 90-day average)
WTI: USD 47.12 (-2.89%)
Brent: USD 52.21 (-2.06%)
TASI: 9,098.3 (-0.1%)
ADX: 4,834.2 (+0.3%)
DFM: 4,143.2 (+0.3%)
KSE Weighted Index: 418.9 (flat)
QE: 11,785.2 (-0.3%)
MSM: 6,558.2 (flat)
Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.
Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID: 553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.