Wednesday, 12 August 2015

U.S. in talks to station drones in Egypt?

TL;DR

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WHAT WE’RE TRACKING TODAY

After a fairly slow news day yesterday, we’re hoping for a steady stream of policy and legislative announcements coming out of today’s scheduled meeting of the Council of Ministers.

Meanwhile: Is the U.S. in talks to station drones in Egypt? We’ve previously noted that the U.S. may be interested in stationing drones in North Africa. Enter the WSJ, which has a lengthy piece out claiming, “the U.S. is in talks with North African countries about positioning drones at a base on their soil to ramp up surveillance of Islamic State in Libya in what would be the most significant expansion of the campaign against the extremist group in the region.” Egypt and Tunisia are pegged as the two countries most likely to be in discussions. Basing drones in GCC countries would put them well out of range for strikes in Libya.

The People’s Bank of China cut its daily trading reference band for the yuan by 1.9% yesterday, a move that “[rattled] markets,” according to Bloomberg. The reforms, which AP says are “due to reforms aimed at making its exchange rate system more market-oriented” and a “one-off depreciation“ drove the yuan to its biggest one-day decline in a decade. The currency is allowed to fluctuate in a band of 2% above or below the reference rate set by the central bank. The devaluation benefit Chinese exporters unequivocally, hurting rival international manufacturers in the process. WSJ expects the move to “cause political ripples around the world” reigniting criticism of China’s tight control over its currency despite the IMF saying in May that the yuan was no longer undervalued for the first time in more than a decade.

Egypt benefits tangibly from China’s move: The balance of trade with China is tilted heavily towards Beijing, with only 2-4% of Egypt’s exports, mainly market-priced energy and mining products, going to China. On the other hand, China is consistently either the largest or second largest supplier to Egypt, with over 8% of Egypt’s annual imports (mostly machinery, electronics, and textiles) coming from there.Don’t worry so much about tourism either; tourist arrivals from Asia / Pacific in total only constitute 3-5% of total tourist arrivals to Egypt, so any impact on tourist arrivals spending from China would be muted by the low volume.

We’d plug this even if they weren’t sponsors: The people at SODIC haven’t asked us to mention this, but the golf fans among us are still pretty chuffed about unlimited golf from 12 pm until sunset at The Allegria, SODIC’s Greg Norman signature course. The course just began its summer twilight package offering. In a news-ier vein: The Allegria is also a contender in the World Golf Awards, alongside El Gounaand Katameya Heights. You can view the full list of Egyptian contenders here.

LAST NIGHT’S TALK SHOWS

Magdy El Galad, filling in for Lamis El Hadidy, kicked-off Tuesday’s episode of Hona El Asema with a thirty-minute segment on Nour El Sherif, a leading Egyptian actor who passed away earlier in the day on Tuesday.

A number of prominent figures from Egypt’s entertainment community, including actor Sameh El Soreity and Sabreen (no last name, apparently) called-in to pay their respects to El Sherif, providing viewers with rare glimpses into the personal life of the distinguished actor.

One caller in particular, Aly Sayid, a respected journalist and chairman of Tahrir newspaper, provided viewers the most intimate insights: “His father passed away when he was only a year old, shaping him into the determined, hard-working man he was throughout his life,” he said.

Expounding on his relationship with his fellow actors and family members, Sayid revealed, “Nour was liked by all the actors he worked with. He never caused any problems,” adding that, “his daughters were the most important people to him; they were the light of his life.”

After Sayid’s telephone call reached its end, El Galad proceeded to air a series of clips from El Sherif’s most famous acting roles, including highlights from serials: El Hag Metwalli and Lan A’aeesh Fee Gelbab Abi.

“El Hag Metwalli showed Egyptians that polygamy is not an easy ordeal,” said El Galad lightheartedly.

Meanwhile, Rania Badawi again played lead host at Al Qahera Al Youm, filling in for Amr Adeeb for what seems like the 100th consecutive time. Like her counterpart at Hona El Asema, Badawi devoted much of her show to covering the death of Nour El Sherif.

Unlike El Galad, Badawi’s despair appeared to stem from her belief that El Sherif’s death would erode Egypt’s soft power in the Arab world.

“We lost one of our instruments for influencing the outside world,” said the utilitarian Badawi. “Egyptian films and serials have historically played a pivotal role in sparking change and influencing thought across the Arab world. They were truly works of art. Nour El Sherif was one of a handful actors who played an influential role in shaping Egypt’s entertainment industry throughout the past forty years.”

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SPEED ROUND

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The Mahlab administration’s difficulty in sticking to important but unpopular decisions is no longer a purely domestic complaint: Reuters has picked up the story, noting that while the government “has imposed some tough reforms such as reducing fuel subsidies which swallowed up huge parts of the state budget … other state initiatives have run into trouble. The government backtracked on plans to implement a capital gains tax in May, a central component of its reform agenda, after stock market players complained it would hamper investment. It has also delayed the roll out of a fuel smart card system meant to cut the government’s energy bill, as well as the introduction of a value-added tax (VAT).” The latest symbol of “erratic policymaking,” Reuters says, was the lifting of a ban on cotton imports just days after it was imposed. Al Masry Al Youm reported yesterday that the government is revisiting existing laws to improve the competitiveness of Egyptian cotton and look for outlets to market stocked cotton.

Meanwhile, surprising exactly no one: The Textiles Export Council is complaining that it has not been asked to join the new Higher Cotton Committee tapped by Prime Minister Ibrahim Mahlab to sort out the future of the sector, Al-Ahram reports. The HCC held its inaugural meeting on Monday, with members including the ministers of industry, investment and agriculture as well as a representative of the General Syndicate for Textiles and Weaving, among others. The export council appears to believe the committee might benefit from industry’s point of view…

A contract with Russia for the proposed nuclear power plant project in Daba’a will be signed before August’s end, a source told Youm7. The contracts are already drafted and the first phase of the project is set to include a four-unit plant with a total generation capacity of 4.8 GW. Works on the first phase are scheduled to begin by mid-2016 with delivery expected in 2020. Youm7 reports that the contract with Russia will also include a clause allowing Egypt to contract with other countries for the follow-on phases to Daba’a’s development, noting that the land designated for the project is sufficient for eight separate nuclear power plants. An end-August signing suggests the contracts will be inked by President Abdel Fattah El Sisi during his 26-27 August visit to Moscow, his second trip to Russia this year.

With a long-term supply glut now a very real possibility, the Industrial Development Authority isdelaying the issuance of new cement licenses. The IDA said it is also reassessing the domestic cement market, noting stagnating cement sales at home, in regional export markets and, indeed, globally. Between 12 and 14 licenses were to have been issued this year, Al-Masry Al-Youm reports.

EGAS Chairman Khaled Abdel Badie signed an agreement yesterday with Norway’s BW Gas to have a FSRU delivered and docked at Ain Sokhna. The signing ceremony was attended by Oil Minister Sherif Ismail and EGPC head Tarek El Molla. According to Al Masry Al Youm, the FSRU is expected to be delivered by September’s end and should begin operations in October.

Every year, more than one of every three graduates from technical and vocational training programs fail to find work, Minister of Technical Education and Training Mohamed Youssef said at a press conference in Munufiya yesterday. Some 630,000 people graduate from the system each year, and 38% of them fail to find work, the minister noted, saying that as of the 2015-16 school year, 35 technical schools will be operating in close association with factories nationwide in a bit to buff-up the skills of graduates. A further overhaul of the technical school curriculum will take place in February 2016. El-Watan has additional coverage of the presser.

If you were anywhere in Maadi — or southern Cairo, for that matter — then you, like us, experienced a power outage yesterday morning. The Electricity Ministry said the widespread outage was caused by an overload prompted by a spike in consumption related to the current high temperatures. Al Shorouk says that trains operating on the first metro line stopped for a while. Enterprise staff, meanwhile, had already begun to melt in our offices. So it shouldn’t come as a surprise that the both the Ministries of Electricity and Petroleum have called on citizens to conserve their usage of energy. In a joint statement issued on Tuesday, the ministries stated that average consumption grew 5 GW to 29 GW, taxing fuel supplies reserved for power stations, Al Mal reports.

Private insurance funds will face new requirements and restrictions designed to mitigate riskunder regulations handed down by the Investment Ministry yesterday. The regulations include new caps on investment in various securities; requiring funds to place investment professionals on their board of directors; requiring the appointment of a licensed investment banker to manage investment funds with AUM of EGP 100 mn or more (or the appointment of an investment bank to manage 80% of the fund). The requirements, outlined in 10 new articles and 11 additional amendments to the executive regulations of the Private Insurance Funds Act, were issued in the Official Gazette and reported in Al Borsa. The ministry had announced earlier this year that the regulations would be forthcoming.

Also yesterday: Investment Minister Ashraf Salman issued a directive forming a board of directors to administer an insurance fund for rapid-transit accidents across Egypt. The fund will be headed by Mohsen Ismail Ali; membership will be for a three-year term and will include representatives from the Interior Ministry, the head of the Egypt Insurance Federation, the Chairman of Misr Insurance, the managing director of Royal Insurance, and EFSA’s legal counsel. The directive was handed down through the Official Gazette. (Editor’s Note: The Official Gazette is a subscription-only product. Out of respect for the copyright holder, Enterprise as a subscriber will not link to copies, but will provide summaries, as is our custom. Additional information is available in Al Borsa.)

Beltone joins NASDAQ Dubai as market maker: Beltone Market Maker, a subsidiary of Beltone Financial, is joining NASDAQ Dubai to provide market-making services in equities, Beltone said in a statement on Tuesday. It will also offer simultaneous bid and offer prices in selected countries listed on NASDAQ Dubai. The company had acquired a market maker license on the Cairo exchange in June 2014,Reuters reports.

The Egyptian Union of Investors Associations (EUIA) will form working groups to explore investment opportunities under the government’s plan for the Suez Canal Development Axis. Members of the EUIA have also called for accelerating their participation and invited government officials, investors and companies to help boosting investment in the Canal. Speaking on the issue, EUIA head and Oriental Weavers founder Mohamed Farid Khamis said that Egyptian investors should be investing earlier and more than their foreign counterparts in Canal Development Axis as local investment would provide much more sustained domestic growth, Al Mal reports.

President El-Sisi linked the New Suez Canal to Egypt’s ongoing strategy of engaging with Africa in general and the Nile Basin countries in particular. El Sisi told senior editors of African newspapers yesterday that the Canal can facilitate trade between Lake Victoria and the Mediterranean, adding that the Canal is indicative of the renaissance of the continent and will drive regional economic integration, Al Ahramreports.

Al Ahly for Real Estate Development will be entering the Capital Cairo project as a developer, Chairman Hassan Sabbour told Al Ahram. He also added that the Armament Authority has already decided on having the Faculty of Engineering at Ain Shams University join the project. Where does this leave Mohamed Alabbar’s Capital City Partners? We’re not entirely sure.

Supply Minister Khaled Hanafi met earlier this week with ICT Minister Khaled Negm to develop an IT infrastructure projects for the Supply Ministry, Al Mal and Amwal Al Ghad report. These projects would include the establishment of high-tech communications network linking the ministry to the agencies and companies it controls and establishing a customer service network. The EGP 20 mn project will take at least two years to implement and comes, says Amwal Al-Ghad, as the government implements an EGP 1.2 bn project to upgrade the Commercial Registry Office and set up a commercial data center.

Popular Egyptian actor Nour El Sherif passed away at the age of 69, reported AMAY. El Sherif just recently won the award for best actor at the 8th Wahran Arab Film Festival for his role in the movie Cairo Time. Here he is in a scene with the late Khaled Saleh from the critically acclaimed film The Yacoubian Building.

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A MESSAGE FROM PHAROS HOLDING

What to watch: Rate cut hinges on August inflation reading
Pharos Research had previously communicated that a combination of factors, namely a subsiding of the food prices shock, a delay in the introduction of petrol smart cards, and a monthly core inflation rate at c. 0.5% could together lead to the annual core CPI inflation rate breaking the 8% mark and falling sharply to 6.5% in July and August due to favorable base effects. In line with expectations, the inflation rate did decelerate to 6.5% in July, setting the stage for a possible interest rate cut come the CBE’s Monetary Policy Committee’s meeting on September 17.
Pharos believes that the continued decline in international commodity prices, which helped avert spiral inflation despite local subsidy cuts and two rounds of EGP devaluation, should provide the CBE with enough basis for a cut, the decision on which rests on August inflation reading. Click here for full details.
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EGYPT IN THE NEWS

No one story out of Egypt has captured the imaginations of international journalists, with coverage overnight Tuesday and into Wednesday morning split across the notion that Nefertiti may have been buried in King Tut’s tomb; news the death toll associated with the regional heat wave has risen to 42 in Egypt; obituaries and appreciations of the late actor Nour El Sherif; and news that former Ikhwan morshedMohamed Badie will face trial on charges he bears responsibility for the deaths of police officers killed dispersing the Ikhwan sit-in at Rabaa Al-Adawiya square.

‘Time to reassess Sinai peacekeeping force’: The New York Times published an op-ed suggesting it is no longer necessary that American troops be stationed in Sinai, a move originally made to secure the Egypt-Israel peace treaty. Since Egypt and Israel have been doing a good job cooperating over the past three decades, the troops aren’t needed and are merely exposed to the danger of being caught in a crossfire between Egyptian troops and Daesh affiliates. The Pentagon expects the threat to increase and article warns of a possibility that this could lead to a new front in the US-led war against ISIS. (Read)

‘Whatever is the matter with Egypt? Nothing all that new’: Steven A. Cook at the Council on Foreign Relations responds to an op-ed on the decline of Egypt’s power by Al Arabiya’s Washington bureau chief, Hesham Melhem. Although he agrees that Egypt is facing a downturn, unlike Melhem, he reckons it is nothing new. “Egypt also has a history of bad governance, religious intolerance, extremism, and proud nationalism that often verges on, and sometimes crosses over into, xenophobia,” he says. Even though Melhem might believe that there is a way back to a more prosperous time, this writer doesn’t share the same hopefulness. (Read)

WORTH READING

“Who Is Steering the House of Saud?” Simon Henderson explores that question in Foreign Policy, claiming that regional and economic disruptions are making the new Saudi leadership appear “adrift.” The recent attacks on Shiite as well as Sunni mosques are a “reminder to Saudi royals that the Islamic State, while sharing their anti-Shiite instincts, also loathes the House of Saud and everything it stands for,” Henderson says. Among the key success factors for the Kingdom is whether Muhammad bin Nayef and Mohammed bin Salman will be able to function as team as their partnership comes under stress — especially as both reportedly have aspirations to become king one day.

WORTH WATCHING

BBC TV sheds light on the social stigma faced by trans people in Egypt, highlighting the stories of a trans male who but faces difficulties getting married because all of his legal documents still have him listed as female, and another of a trans woman who still dresses as man because her ID gives away that she was born that gender. With around 15 people per year asking for their gender to be changed on their national IDs,Egypt is the only Arab country with legal provisions for gender identity disorder (GID) patients. The video report claims it has become more acceptable to seek and receive treatment in places including an Al Azhar-affiliated hospital that provides therapy for patients. You can watch the whole report here. (run time: 02:56)

DIPLOMACY

An Israeli delegation, headed by National Security Advisor Isaac Molho, visited Cairo for a few hours on 11 August to meet with Egyptian officials, a source told Youm 7. The visit was not announced by Egypt.

We have previously confirmed that President Abdel Fattah El Sisi will visit Russia (26-27 August) and China (most likely 3 September). To that list, add Indonesia and Singapore, Youm7 reports, with dates TBD

ENERGY

Gov’t expects high private-sector demand for gas import licenses
Al Borsa | 10 Aug 2015
A large number of private sector companies are expected to apply for licenses to import natural gas through the state’s national grid after meeting the technical and financial specifications, Oil Minister Sherif Ismail expects. EGAS has already issued the regulations it requires from the private sector actors who wish to use its facilities in July. However, no company has yet applied to import natural gas directly. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

90% of rice mills halted operations due to difficulties exporting, says Chamber of Cereals Industry
Amwal Al Ghad | 11 Aug 2015
90% of rice mills have halted operations due to government restrictions that are hindering exports, says Ragab Shehata, head of the rice division at the Chamber of Cereals Industry at the Federation of Egyptian Industries. Mill owners have begun selling their land and machinery due to the recession caused by lack of exports. (Read in Arabic)

540 tons of vegetables and 596 tons of fruit exported per day
Al Mal | 10 August 2015
There has been noticeable activity in Egypt’s fruit and vegetable exports, as year to date figures report 1.1 mn tons of fruit and 688k tons of vegetables have been exported, according to a Ministry of Agriculture report released on Monday. Egypt’s daily export of vegetables and fruits averaged 540 and 596 tons per day. (Read in Arabic)

Supply Ministry pays EGP 800 mn to sugar cane planters
Al Ahram | 11 August 2015
The Supply Ministry approved the release of EGP 800 mn out of EGP 1.9 bn it owes to sugar planters for their harvest, said Supply Minister Khaled Hanafi to Al Ahram. He reassured planters and other suppliers that the ministry is committed to make full and timely payments. (Read in Arabic)

General Company for Silos and Storage negotiating USD 110 mn soft loan with Saudi Fund for Development
Al Mal | 11 Aug 2015
The General Company for Silos and Storage announced it entered into negotiations with the Saudi Fund for Development asking for a soft loan of USD 110 mn to complete construction of the 12 silos. The decision to borrow from the Saudi Fund for Development was an alternative to borrowing from the Arab Investment Bank at high interest rates. (Read in Arabic)

39 bakeries approved in Ismailiya
Al Mal | 11 Aug 2015
Ismailiya governor Yassin Taher greenlit constructing 39 new bakeries producing subsidized baladi bread in villages and areas just out of reach of the governorate. 60 applicants originally came forth with propositions to build bakeries, but only 39 were chosen according to required standards. (Read in Arabic)

MANUFACTURING

EGP 5 bn to begin operations in reduced steel factory in October, says Ezz Steel
Amwal Al Ghad | 11 Aug 2015
Ezz Steel is planning on beginning operations in its new reduced steel factory in Ain El Sokhna in October at a total cost of EGP 5 bn. The factory’s output capacity is supposed to reach 1.8 mn tons annually, head of investor relations Kamel Galal said in a statement, highlighting that the factory’s preparations are 99.5% complete. (Read in Arabic)

EGP 330 mn allocated to completing leather city, says IDA
Amwal Al Ghad | 11 Aug 2015
EGP 330 mn were allocated from the FY 2015/16 budget to speed up construction on Leather City in El Roubky, said Ismail Gaber, head of the Industrial Development Authority. EGP 200 mn were allocated to construct buildings and EGP 130 mn to complete an industrial waste plant currently being constructed by the Armed Forces Engineering Department. (Read in Arabic)

Building materials division asks for increase output
Al Borsa | 11 Aug 2015
The Building Materials Division at the Cairo Chamber of Commerce is preparing for a meeting next week to study the demand for steel and cement on the market, in preparation for the announcement of the Suez Canal Axis Development projects, according to division head Ahmed El Zeini. A memo will be prepared and filed to the Cabinet asking for increased output from cement and steel factories, highlighting that the market currently needs an additional 4 mn tons of steel, and 20 mn tons of cement to build the New Administrative Capital, and the Suez Canal Axis Development projects. (Read in Arabic)

REAL ESTATE & HOUSING

EGP 6.048 bn to complete service projects in Governorates
Al Mal | 11 Aug 2015
The governorates have begun executing 2015/16 plan, worth EGP 6.048 bn, according to Minister of Local Development Adel Labib. The focus will be on infrastructure projects and completing past projects, he added. EGP 786.3 mn have been allocated to the Greater Cairo region, while EGP 814 mn have been allocated to Alexandria, El Behira and Marsa Matrouh, and 676,8 mn in the Delta region. (Read in Arabic)

North Africa Company for Real Estate opens UAE branch
Al Borsa | 11 August 2015
Real Estate firm North Africa has opened a new branch in the UAE, in an effort for further expansion and exposure to new markets. It has also appointed Mohammed Assem Moawad as the regional director of the branch. The real estate investment firm is a public company, listed on the Egyptian Exchange since March 2012. Its issued and paid up capital amount to EGP 34.4 mn over 171.9 mn shares, with a price of 20 piasters per share. (Read in Arabic)

Al Amal Village to official open on 20 August
Al Mal | 11 August 2015
Land distribution in the recently constructed village of Al Amal—which lies east of the Suez Canal and is part of the one mn feddan project—will begin on Thursday 20 August, said Agriculture Minister Salah Hilal. (Read in Arabic)

TOURISM

Tour operators lobbying for continued subsidies for charter flights
Al Shorouk | 11 Aug 2015
Tour operators are pressuring the government to continue subsidizing charter flights, the Tourism Ministry’s economic consultant, Adla Ragab, told Al Shorouk. The Ministry is assessing the operators’ demands as it is aware of the challenges facing them. Insurance companies refuse to extend policies to tourists visiting areas that have travel warnings and the terrorist attack in Sousse, Tunisia has affected the image of tourism in Egypt negatively, Adla said. TUI, which flies to Sharm El Sheikh and Hurghada, had already said it will be hurt by the subsidy removal. The Tourism Ministry has a charter incentive scheme that is tilted towards rewarding occupied seats. (Read in Arabic)

TELECOMS & ICT

40% of e-commerce player Jumia’s mobile phone sales are mid-range smartphones
Zaywa | 11 Aug 2015
0% of phones sold by Jumia are mid-range smartphones, with the company looking to capitalize on that. “We believe there is more scramble for this [mid-range smartphone] market in Egypt,” Jumia’s marketing manager said. The Infinix Hot sold 30,000 devices since its exclusive launch on the website in April, a number Jumia is looking to increase through a promotional campaign. (Read)

AUTOMOTIVE & TRANSPORTATION

Tecnocar begins producing trailers in Engineering Automotive Manufacturing Company factories
Al Mal | 10 Aug 2015
Italian car maker Tecnocar will begin operations on its trailer production line in the Engineering Automotive Manufacturing Company factories, according to sources within the company. In an earlier statement, Gomaa Taha, chairman of the company, announced the Italian company would invest EGP 60-70 mn to provide necessary equipment to develop the production line. (Read in Arabic)

Hurghada Port starting trial run of new IT system
Al Mal | 11 Aug 2015
The Red Sea Ports Authority announced it would begin the trial run of an electronic system on its ports that would handle manifestos, ship movement, revenues and other administration tasks, making the authority’s ports the first in Egypt to implement this system, according to spokesperson Abdel Reheim Mostafa. (Read in Arabic)

Ghabbour Auto warns against defamation campaign on social media
Al Borsa | 11 August 2015
Automotive distributor GB Auto issued a statement denying the validity of statements and images of the Geely Emgrand vehicle that are circulating on social media sites, claiming poor quality and safety measures of the locally assembled vehicle. The statement claims that the “false allegations and fabricated images” are part of a defamation campaign. The company will take legal action against those organizing it. (Read in Arabic)

Cairo Governor issues decision to permanently confiscate tuk-tuks in downtown Cairo
Youm7 | 11 Aug 2015
Cairo Governor Galal Saeed issued a decision to permanently confiscate tuk-tuks in the event that they are caught roaming in downtown neighborhoods of Cairo. Additionally, tuk-tuk owners will have to pay a EGP 1500 fine. According to Saeed’s decision, tuk-tuks are banned in West Cairo, ‘Abdeen, Al Moski, Al Azbakeya, Bulaq and Bab Al She’ria. It is worth noting that Prime Minister Ibrahim Mehleb previously said that he encourages unemployed youth to work as tuk-tuk drivers. (Read in Arabic) (See Mehleb’s interview in Arabic here, running time 0:40)

BANKING & FINANCE

Banque du Caire aims to grow assets to EGP 80 bn this year
Daily News Egypt | 08 Aug 2015
Banque du Caire is aiming to grow its assets to EGP 80 bn and with a 21% y-o-y growth in loans in 2015, CEO Mounir El Zahid told Daily News Egypt in an interview. The bank’s 2014 profits grew by 23.5% y-o-y to EGP 2.1 bn, El Zahi added, yielding a return on equity of 35.26%. Banque du Caire is also set to launch a balanced fund in 4Q2015 at an initial size of EGP 100 mn that could grow to EGP 250 mn. (Read)

NBE grants EGP 320 mn in credit facilities to two new companies
Al Borsa | 11 Aug 2015
The National Bank of Egypt granted EGP 320 mn in credit facilities to two new clients including Kharafi International, which received EGP 200 mn, according to head of corporate banking, Ayman Yaseen. The other company, which received EGP 120 mn, works in the food industry. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

EMPC collects EGP 55 mn from Maspero
Al Mal | 11 Aug 2015
At least someone is collecting from Maspero: Egyptian Media Production City announced it had collected unpaid dues from the Egyptian Radio and Television Union worth EGP 55 mn. (Read in Arabic)

LAW

Ministry of Transitional justice completes draft law to combat illegal immigration
Youm7 | 11 Aug 2015
The Ministry of Transitional Justice said that it has completed an initial draft of a law to combat illegal immigration in coordination with the National Coordinating Committee on Preventing and Combating Illegal Migration on 11 August. Minister of Transitional Justice Ibrahim El Heneidy said that the draft law will have a special focus on eliminating the trafficking of women and children. The bill requires review from the National Security Legislation Committee at the Supreme Committee for Legislative Reform. El Heneidy says the draft does not overlap with a draft law prepared by the Ministry of Manpower that would create a national council to monitor the migration of Egyptians abroad. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Mahlab, ministers take a surprise visit to Minya, review mn feddan reclamation project
Ahram Gate | 11 Aug 2015
Prime Minister Ibrahim Mahlab made a surprise visit yesterday to Minya to review the sites of the mn feddan reclamation project. He was accompanied by a number of ministers including those of irrigation, agriculture, and military production. Mahlab said the visit marks the beginning of the project on-site and the start of works to drill 100 water wells. (Read in Arabic)

Minister of Justice to form conflict resolution committees for judges and lawyers
Youm 7 | 11 Aug 2015
Minister of Justice Ahmed Al-Zend and Lawyers Syndicate Chief Sameh Ashour agreed to the formation of conflict resolution committees for judges and lawyers due to the rise in the number of daily conflicts between the bench and the bar. Ashour said that the agreement stipulates the setup of committees in each district court to resolve differences and prevent problems before they escalate. The news comes as the Lawyers’ Syndicate pulled together a team to appeal a court verdict “sentencing eight lawyers in absentia to 25 years in jail for ‘insulting the judiciary,’” Ahram Online reported. (Read in Arabic)

Ministry of endowments to ban any activities in mosques without prior written consent
Al Masry Al Youm | 11 Aug 2015
The Ministry of Endowment and Islamic Affairs said in a statement on 11 August that it will ban for any social or advocacy activities in mosques without prior written consent from the head of the religious sector at the ministry. The goal, according to the statement, is to prevent mosques from becoming places for political or private practices, particularly with the coming parliamentary elections. (Read in Arabic)

NATIONAL SECURITY

Minister of Social Solidarity Ghada Waly ordered the immediate dissolution of 11 local NGOs in the governorates of Dakhalia and Beheira, pursuant to an order by the Cairo Court for Urgent Matters to seize assets, funds and properties of Ikhwan-run organizations. Waly stated that she plans to reinvest the funds and assets of these organizations into the NGO Assistance Fund, Al Mal reports.

ON YOUR WAY OUT

Schlumberger announced it is partnering with Oil & Gas Skills (OGS) in Egypt to establish an oil and gas industry training institute. “The initiative involves the development of specialized technical training for the Egyptian petroleum sector,” Schlumberger says noting that it is dedicating its training center in Alexandria for the institute. OGS and Schlumberger “also plan to expand the scope of the training institute to include other oil and gas organizations from the Africa and Middle East regions.”

Acting GAFI boss Alaa Omar has joined the board of Egypt’s consumer protection agency, Al Ahram reported.

The East Cairo housing development being brought to market by MNHD and PHD will cost upward of EGP 6 bn to build, said MNHD Chairman Ahmed Al Said. In a statement to Al Mal on the status of the project, Al Said added that MNHD has almost completed the build-out of utilities and that Palm Hills will be responsible for marketing the development. PHD’s Investor Relations Manager Mamdouh Abdel Wahab, stated that the company will launch a promotional campaign before year’s end. As we’ve previously noted, the two parties expect to break ground by December.

BY THE NUMBERS

USD CBE auction (Sunday, 09 August): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Monday, 10 August): 7.85 (2 piasters stronger in the first move since Sunday, 26 July)

EGX30: 8,083.2 (+0.7%)
Turnover: EGP 409.4 mn (13% below the 90-day average)

WTI: USD 42.23 (-3.85%)
Brent: USD 49.25 (-2.30%)

TASI: 8,758.1 (-0.9%)
ADX: 4,815.5 (-0.2%)
DFM: 4,072.8 (+0.1%)
KSE Weighted Index: 420.8 (+0.3%)
QE: 11,787.7 (+0.9%)
MSM: 6,401.2 (-0.3%)