Will the draft anti-terror bill become law today?

TL;DR

• The oil worker kidnapped by Daesh near Cairo has been murdered
• Draft anti-terror bill looks set to become law some time today
• Protesting Tax Authority staff call for mn worker march
• Second anniversary of Rabaa is on Friday
• 33% of Egyptians own smartphones
• EGAS increases supply to electricity sector

WHAT WE’RE TRACKING TODAY

The draft anti-terror bill appears set to become law some time today, according to a brief statement released after yesterday’s cabinet meeting. Cabinet said the bill, now with President Abdel Fattah El Sisi, will not return to the Council of Ministers for review and could be enacted “within hours,” Al-Ahram reports. The law, particularly controversial with the press for having threatened journalists with jail time for reporting terror-related statistics that deviate from the official line, has been out of the headlines for more than two weeks now.

We’re heading into a hot weekend, with the forecast showing temperatures climbing back into the 40s starting tomorrow, peaking at 44ºC on Sunday and staying between 40-42ºC through next Thursday. The long-range forecast no longer shows temperatures falling after 24 August. The heat wave has so far claimed 61 lives, according to Health Ministry figures.

Is something other than heat killing patients? Al-Masry Al-Youm reports in a front-page story on allegations from unnamed physicians at Nasr City, Al Demerdash and Al Zaytoun hospitals that the 60-plus people reported dead this week as a result of heat stroke actually died of untreated meningitis. The paper says the physicians are alleging the Health Ministry is covering up the ‘outbreak.’ Amr Qandil, head of the Preventive Medicine Department at the Ministry of Health, denied the allegations, saying the ministry has only recorded four cases of meningitis since January 2015.

Speaking of the heat wave: Beverage companies have increased their production by as much as 30% this summer to meet a 15% or more surge demand as the mercury spikes. Mohamed Al Damaty, Deputy Managing Director of Domty, said the company upgraded its production lines to meet increased consumption and demand in beverages. Domty expects a 20% rise in beverage sales alone. Bottled water is also flying off the shelves: Siwa Water’s Ayman Fathy says the company has seen a 30% rise in sales of bottled water products so far this summer, Al Borsa reports.

And no, the government is not giving state employees days off because of the heat wave, the Manpower Ministry said. There are no legal provisions for leave due to “heat domes,” the Ministry’s spokesperson told Al Shorouk.

And one more thing: Our good friends in Turkey may soon have a government, after all. Two months after an election delivered a hung parliament that stripped Erdogan of his delusion that absolute power might soon have been his, the FT is reporting this morning that Prime Minister Ahmet Davutoglu and opposition leader Kemal Kilicdaroglu will meet today to try to fashion a power-sharing agreement.

LAST NIGHT’S TALK SHOWS

Khairy Ramadan devoted the majority of his flagship program Momkin to a discussion of the controversial Civil Service Act. Planning and International Cooperation Minister Ashraf El Araby was joined by three other commentators, including former State Administrative Development Minister Hani Mahmoud.

Ramadan kicked-off with a concise opening statement: “When we talk about the Civil Service Act, we are talking about a law that impacts 6 mn government employees, the vast majority of whom belong to Egypt’s struggling middle class. Consequently, it is imperative that that government reassure these employees that this law is in their best interest.”

El Araby emphasized the government’s commitment to legislative reform, saying, “The only way that the New Egypt to which we all aspire will become a reality is if we remove the bureaucratic laws that reward inefficiency, hamper quality of service to citizens, and scare away foreign investors.”
The minister proceeded to provide a series of bullet points, outlining the benefits of the law as seen by the Mahlab government, which include:

• Implementation of a recruitment system that hires individuals purely on merit;
• Enforcement of a simplified remuneration scheme that awards employees with an automatic 2.5% salary increase for every three years of employment;
• Enforcement of 360-degree employee evaluation process, in which employees assess the performance of their superiors, subordinates, and colleagues. The minister argues that this evaluation process will increase cooperation and transparency between government employees, thereby improving services to citizens.

Hani Mahmoud questioned the government’s ability to implement the 360 degree evaluation process, claiming that an entrenched culture of obsequiousness between employees and their managers, as well as a lack of employee training ,would stand in the way of its enforcement.

Meanwhile, OnTV’s Youssef El Housseiny criticized Antiquities Minister Mamdouh El Damaty for his alleged failure to protect Egypt’s most treasured historical sites. “Look at this goat, roaming aimlessly through Karnak Temple,” said an apoplectic El Housseiny. “This has man has not only failed to protect our history in Luxor, but has failed to have a positive impact in other Upper Egyptian cities, including Sohag and Qena.” (Yes, there really was footage of a goat at the Temple.)

Al Qahera Al Youm was off on Wednesday.

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SPEED ROUND

A Daesh affiliate announced the murder of Croatian hostage Tomislav Salopek after a deadline they set passed. A caption on the photo released by the terrorist group on social media says Salopek was killed because of “his country’s participation in the war against the Islamic State.” We will not be linking to the imagery. Salopek was kidnapped on 22 July on the Oasis Road to the west of Cairo, Croatia’s Foreign Ministry noted. Egypt’s Interior Ministry said it is currently investigating to substantiate the claim and confirm the death. Croatian Prime Minister Zoran Milanovic stated in an extraordinary press conference that, “We cannot confirm with 100% certainty that [Salopek was murdered] and I do not know if we will be able to confirm it in the coming days either, however what we have seen does not look promising. It looks horrible.” Egypt’s ambassador to Croatia, Iman Al-Far, reiterated the uncertainty of Salopek’s fate in a call in to CBC Extra on Wednesday. Salopek, a 30-year old father of two, worked as a surveyor for CGG Ardiseis, a French oil and gas company with an office in Maadi, Cairo. The murder of foreign staffer could have serious repercussions on the willingness of international staff to accept postings to Egypt. Ahram Online carries a long Associated Press piece on the story for those looking for more detail and reaction.

The second anniversary of the Rabaa dispersal is on Friday, 14 August. Expect the posturing to continue on the airwaves, and tight security around the country on the streets. With some Islamist terrorists joining softer Islamists in blaming violence on what they call state repression, Al Azhar has released astatement saying that security forces “did not kill anyone,” while attesting that the leaders of the Ikhwan and their allies had deliberately instigated attacks against the armed forces for their support of a popular uprising — 30 June 2013, to be precise. The statement charged Ikhwan leaders with sedition and inciting violence through lies, propaganda and a warped interpretation of Islam. The statement, dubbed the “Mahrousa Declaration” came in response to the “Kenana Declaration” by Ikhwan-affiliated clerics who’ve presumed themselves to be the “righteous”.

A video showing at least four members of the police service beating an unidentified man for at least two minutes has gone viral on social media and crossed into the independent press. Interior Minister Gen. Magdy Abdel Ghaffar ordered an investigation into the incident, which took place at the Dar El Salam metro station, said Deputy Interior Minister Gen. Abu Bakr Abdel Karim. In a statement to Al Watan, Abdel Karim stated that incident violates the standard operating procedures and policies of the Interior Ministry, which “prioritize protecting human rights and the dignity of citizens”. Ahram Online has coverage in English for those who prefer their news in that language.

President El Sisi issued a decree giving the Suez Canal Economic Zone project (SCZone) the status of a special economic zone. The SEZ will be established on a 460 sq km area around the Suez Canal and “will be used to develop an international industrial and logistics hub that will attract foreign investment” with the aim of having it make up to a third of Egypt’s GDP, according to comments made at the EEDC in March, Reuters said. Investment Minister Ashraf Salman said the Ministry has already begun marketing investment opportunities in the economic zone. After gauging investor appetite, Salman said there is interest in investing in refineries, desalination projects, petrochemicals, and alternative energy along with infrastructure projects.

EFG Hermes reports 2Q15 net profits grew 38% year-on-year to EGP 125 mn (excluding the impact of a one-off gain from the sale of the investment bank’s stake in SODIC during the same quarter last year). The group’s sixth consecutive quarter delivering net profits in excess of EGP 100 mn despite challenging market conditions. The firm’s statement for the quarter quotes CEO Karim Awad as noting, “Despite unfavourable market conditions, EFG Hermes still generated healthy profits for its shareholders with our team delivering a 41% net operating profit margin, aided in large measure by the execution of a strong investment banking pipeline, continued commitment to cost discipline, and a stronger performance by our commercial banking arm.” EFG Hermes closed IPOs for Edita Food Industries (on the EGX, with GDRs on the LSE) and Integrated Diagnostic Holdings (on the LSE) in 2Q. Also, the company’s newly launched leasing subsidiary ranked fifth in June, its first full month of operations, in terms of transactions booked, according to industry league table. The firm’s earnings press release is here, while the earnings release is here (pdf).

Tax Authority employees have called on syndicates across Egypt to participate in a mn man protest against the new civil service act, Al Masry Al Youm said. The not-at-all-delusional employee group expressed its solidarity with real estate tax authority employees who are planning on staging a strike next Monday. Monday is the deadline dissenting tax authority employees set for the government to scrap or revise the civil service act. Abdel Fattah El Gibaly, an advisor to Planning Minister Ashraf El Araby, said he was astonished at the protest, saying the TA staffers were consulted about the changes prior to the implementation of the Civil Service Act — a piece of legislation to which he claims they had assented. El Gibaly claims the employees’ issue with the act boils down to the elimination of the lax criteria for receiving exorbitant bonuses of up to 1,450% of their basic salaries, Al Ahram reports.

33% of Egyptians own smartphones, Ericsson says, classifying Egypt amongst the “optimizers” in 2015 Mobility Report: “This segment includes countries where operators and consumers are value conscious. This group is very active on social networks, however their mobile broadband usage is significantly lower compared to advanced markets. In Egypt, 33 percent of people own a smartphone, and 89 percent of them connect their devices to the internet. Feature phones remain widely used by Egyptians, and 22 percent of these devices are connected to the internet. Tablets have low household penetration in Egypt (9 percent) and 42 percent of these devices are connected to the internet.” You can view the full Ericsson Mobility Report appendix on MENA here in English (pdf). (Read in Arabic)

Saudia suing Barclays Egypt, seeks EGP 113 mn in damages: Saudi Airline Saudia has reportedly filed a case against Barclays Egypt at the Cairo Economic Court. Saudia is seeking a total of EGP 113 mn in damages, claiming “errors” that occurred during its dealings with the bank after a third party failed to uphold an agreement with the airline. Barclays is challenging the allegations, Al Borsa reports. The lawsuit centers on a dispute involving cheques for airline tickets.

Downtown Cairo to host RiseUp Summit in December: RiseUp, the entrepreneurship platform with which we’re fairly enamored, is getting some love from the domestic press. Youm7 carried news yesterday that RiseUp will hold its annual summit December 12-13 in the GrEEk Campus in downtown Cairo. The summit, which expects to host 4,000-4,500 people, highlights Middle East and North African entrepreneurs in technology, science, environmental economy, and energy. Confirmed participants include: CCC Startups, Uber, Bitoasis, Payfort, Integreight, and Your Middle East. (Read in Arabic)

Economists predict that the CBE will allow the Egyptian pound to weaken, in order to increase the competitiveness of locally produced goods and to prevent the Egyptian market from being flooded by cheaper foreign imports, reports Al Mal. The move comes in light of the Chinese central bank’s decision to depreciate the value of the yuan, which fell by approximately 5% over the past two days. Quoted are EFG Hermes’ Mohamed Abu Basha and Pharos’ Hany Genena, predicts the EGP could fall to 8.50-9.00 within the next 12 months.

Gazprombank offers Egypt option to pay for wheat in rubles: Russia’s Gazprombank is offering Egypt the option to use Russian rubles in transactions including wheat purchases. Trade and Industry Minister Mounir Fakhry said Gazprombank officials offered to visit Cairo in September to discuss the details of their proposition. If completed, the agreement would close the circle created by the Mahlab government’s decision earlier this year to allow Russian tourists in Egypt to pay in rubles. (Read in Arabic)

Egypt’s diplomats take to the interwebs: The Ministry of Foreign Affairs announced yesterday the launch of its first-ever official Facebook page in English.

The long, winding road to Egyptian gas imports from Israel has taken another turn after the Israeli gov’t failed to reach an agreement on Tuesday in policy discussions on how major gas fields will be developed. The talks with Noble and Delek, which together have a monopoly on the exploitation of offshore gas fields in Israel, failed to resolve issues including the price at which the gas will be sold by Houston-based Noble Energy and Israel’s Delek Group. The deadlock came despite the fact that the government softened the terms of the outline that the two sides agreed to two months ago, Haaretz reports.

Former U.S. President Jimmy Carter, 90, issued a statement revealing he has cancer: “Recent liver surgery revealed that I have cancer that is now in other parts of my body. I will be rearranging my schedule as necessary so I can undergo treatment by physicians at Emory Healthcare. A more complete public statement will be made when facts are known, possibly next week.” The news is also being followed by thedomestic press.

Is China flirting with a currency war? Heading into next week, we’re also keeping an eye on the Chinese yuan, which fell again yesterday — and which Reuters says “government sources believe … may be allowed to slide even further to help the country’s exporters.” The news agency notes fears that the move by the People’s Bank of China could touch off a new “global currency war.”

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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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SPOTLIGHT ON Tuesday’s Supreme Energy Council Meeting

The Supreme Energy Council has approved a policy shift that will see industrial consumers of natural gas charged for their actual consumption rather than the contracted amounts. The change comes as factories have been billed under “take or pay” contracts with the state for minimum quantities of natural gas, but the state has been unable to make good on the actual supply.

Other decisions taken at the Tuesday meeting included:

• Orders to the ministries of industry and electricity to assess the feasibility of co-investing in a power plant with Suez Steel.
• A demand for a feasibility study on co-investing with privately owned hotels to install solar panelsand other renewable energy technology on their properties. The ministries of tourism, petroleum and electricity are to cooperate on the study.
• Direction that Urban Renewal Minister Leila Iskander develop a comprehensive strategy on waste management, with an emphasis on refuse-derived fuels and recycling.
• Approvals for the construction of a paper mill in Obour City owned by First Co. for Industrial Development, which was given the green light with the caveat that the company provide for a new power plant to be built in conjunction with the Egyptian Electricity Transmission Company.
• Other constructions for the building of an Alco Steel-owned metal forging factory in Port Said, in addition to the go-ahead to build a cement factory in Beni Suef, SIS reports.
• Approval on capacity expansions for factories owned by Sphinx Glass and the National Port Said Steel Company.

SPOTLIGHT ON Wednesday’s Cabinet Meeting

The agenda at Wednesday’s weekly Cabinet meeting was dominated by national security issues,including word the draft anti-terror bill will be enacted “within hours” (see What We’re Tracking Today, above) and security preparations for the upcoming elections to the House of Representatives. The meeting explored the timeline and roadmap for the elections, but refrained from making any specific decisions on the matter. Cabinet also looked into implementing a number of the President’s directives on fighting terrorism, securing food supplies and exploring ways the government can assist the public during this heat wave.

Otherwise, the most notable decision of the day was Cabinet’s decision to extend the curfew in areas some areas of North Sinai to run from 7pm to 6am.

Cabinet appears not to have discussed a number of the topics it had suggested would be on the agenda. With students heading back to class in a few short weeks, there were expectations Cabinet would crack down on the endemic “alternative schooling/private tutoring” issue by shuttering informal centers. On the health side, the Cabinet was to have explored ways of improving conditions in clinics and hospitals in rural governorates.

On the economic and legislative sides of the house, Cabinet was due to discuss the mn feddan project and the ongoing crisis in the cotton and textiles industries. The brouhaha over the Civil Service Act and expanding healthcare coverage for farmers under the National Health Insurance Program were also to have been on considered. It’s possible some of these issues were in fact covered and will be noted in upcoming cabinet statements, as sometimes is the case.

Other decisions taken included:

• Approving the establishment of a health center in Housh Eissa, Baheyra.
• Commissioning the Chinese Association for Science and Technology to design Egypt’s new satellite assembly and testing facilities.
• Approving a presidential draft law that adds four new departments to the British University of Egypt.
• Approving a presidential draft law on sports.
• Approving the Electricity and Renewable Energies ministry’s request to allow Ansaldo Energia to make modifications to a power station in 6th of October City.
• Approving a presidential draft law that calls for the renaming of the Delta University for Science and Technology’s “College of Pharmacy and Biotechnology” to the “College of Pharmacy”

EGYPT IN THE NEWS

Only two stories about Egypt had traction with the international press in the early hours of this morning: the murder of Croatian hostage Tomislav Salopek by a Daesh-affiliated group led by a wide margin, followed by ongoing coverage of deaths due to the heat wave, which appears to have gripped the imagination of many in the West.

‘Human rights groups fear for rule of law in Egypt after lawyer dies in custody’: Jared Malsin reports for The Guardian on what analysts are calling an increase in police brutality in Egypt these past two years, focusing on the Matariya police station in Cairo, where clashes between police and Ikhwani youth are common. Two cases stand out: that of 27-year-old lawyer Karim Hamdy and 63-year-old lawyer Imam Afifi, who died this year within three months of each other “following apparent police torture … in Matariya,” the Guardian says. Aida Seif El Dawla, an executive director of a Cairo based organization for torture victims, believes there is “a maintenance if not an increase of impunity and a ruthlessness in using torture.” (Read)

‘Egypt is trying to crush the Muslim Brotherhood. Can it survive?’ Newsweek reporters Janine Di Giovanni and Fredrik Elisson whether Ikhwan can survive the Sisi administration’s crackdown. Ikhwan supporters believe that this suppression acts as a “glue” that binds the members together and many families have direct reason for revenge. However, the reporters point out that there is a growing rift between younger and older members of the group, where the former call for “defensive violence” and the latter “have the nonviolence doctrine drilled” into them. This divide provides the risk of the younger, dissatisfied members to leave the group for the more radical Daesh. (Read)

The BBC writes a short profile on Sinai Province, the group behind the execution of the Croatian hostage, describing it as the most active militant group in Egypt. The jihadist group, previously known as Ansar Beit Al-Maqdis, was formed post-2011 revolution and started out with rocket attacks on Israel but then shifted its resistance towards Egyptian security forces. In November 2014, it pledged allegiance with Daesh, changed its name and witnessed an advancement in its methods of attacks, proving stronger coordination with Daesh. Their members are believed to be between 1,000 and 1,500, with fears that many of the recruits are Bedouins with a history marginalization. They have since been involved in a series of attacks in Sinai, suicide bombings, beheadings and assassination attempts. (Read)

DIPLOMACY

The State Information Service has confirmed 3 September for President Abdel Fattah El Sisi’s visit to Beijing, as we suggested earlier this week would likely be the case. El Sisi is attending China’s celebration of the end of the Second World War as a guest of Chinese President Xi Jinping. El Sisi will then visit Singapore and Indonesia to “discuss strengthening bilateral relations, as well as a number of regional and international issues.”

Talks between Egypt, Ethiopia and Sudan on 20-21 August in Addis Ababa are in question this morning after French and Dutch consultants missed the final deadline to submit proposals to the tripartite technical committee studying the Grand Ethiopian Renaissance Dam. Alaa Yassin, an advisor to Minister of Irrigation and Water Resources, confirmed the missed deadline. Experts from the three countries were expected to study the proposals for a week before the next meeting of the GERD technical committee in Addis. A Ministry of Irrigation source quoted by Al-Borsa appears to suggest the three nations will be looking for new consultants rather than offering deadline extensions.

ENERGY

EGAS increases gas supplies to electricity generation to cope with high demand
Al Mal | 11 Aug 2015
Fuel supplies to power stations have been increased by 8-11 mm cubic metres of gas equivalent, a source at EGAS told Al Mal. The supply increase is aimed at coping with the higher electricity demand driven by the heat wave Egypt is experiencing currently. The source said that, over the longer term, EGAS would not be able to maintain the increased supply rate and pressure on the national grid would result in a return to power cuts. (Read in Arabic)

Cabinet accepts Siemens’ offer to build and expand six power substations
Amwal Al Ghad | 12 August 2015
The Council of Ministers approved an offer from Germany’s Siemens offer to build and expand six power plants in Egypt that will cost nearly EUR 240 mn . The offer includes design and manufacturing gas-insulated substations in Assiyut and Wadi Natroun and the expansion of substations in East Banha, Itay Al Barud, West Maghagha and Kafr Al Zayat. (Read in Arabic)

Electricity Ministry tenders three renewable energy BOO projects
Al Borsa | 12 Aug 2015
The Electricity Ministry is tendering three renewable energy projects on a BOO basis in partnership with the private sector. The projects aim to produce a total of 500 MW of electricity from wind and solar energy. The largest project on offer is for a 250 MW wind farm whereas the other two are for a 200 MW and 50 MW solar energy projects. (Read in Arabic)

Partnership between IFC and Unit Corporation
Al Mal | 12 Aug 2015
The International Finance Corporation, a member of the World Bank Group, has announced a partnership with Unit Corporation, a leading energy sector company, to increase electricity production in the Middle East and South East Europe. IFC will own 23% of Unit Investment NV, a subsidiary of Unit Corporation. Both the IFC and Unit will accumulate a sum of USD 365 mn for Unit Investment NV to facilitate increasing its output in a region where most countries suffer from an energy deficit. Unit Investment NV specializes in gas powered plants and renewable energy plants including water, air and biomass facilities. (Read in Arabic)

INFRASTRUCTURE

Ministry of Water Resources requests EGP 700 mn from Ministry of Planning
Al Mal | 12 Aug 2015
The Ministry of Water Resources and Irrigation has requested EGP 700 mn from the Ministry of Planning before the end of 2015, sources from within the water resources ministry said. Contacting the Ministry of Planning came after the lowering of funds allocated to tankers and reservoirs, vertical expansion projects, and water wells, the source added. The funds requested will be used to dig the wells required for the mn feddans project, as well as connect infrastructure to around 17k feddans of land in Toshka, he added. (Read in Arabic)

Egypt Post restructures Sales & Marketing division, forms customer service department
Al Borsa | 12 August 2015
National mail and post service provider Egypt Post has begun restructuring its Sales & Marketing divisions with an eye to increasing market share in light of increased competition, said company head Essam El-Sogheer. With that in mind, he added that the company will seek to develop a customer service department. After a three day meeting with the different branch and subsidiary heads, El Sogheer stated that the company will also enforce a ‘carrot and stick’ policy with its subsidiaries, distributing revenues at a pro rata basis. The company will also create an embezzlement task force to root out mismanagement and policy violators. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Medicine could be added to ration cards
Al Mal, Al Borsa | 12 Aug 2015
The Ministry of Supply is also studying allowing eligible patients to use their smart ration cards to obtain prescription medication covered by the national health insurance program, Al-Mal and Al-Borsa report, while Al-Mal notes that there are 10 products categories registered on the government-issued ration cards that are no longer available at Ministry of Supply-affiliated grocery stores due to dwindling demand, according to Maged Nadi, spokesperson for the Grocers Syndicate, including frozen meat, frozen poultry, fish, laundry detergent, bleach, tuna, dairy, cheese, salsa, and chicken broth. The three products in highest demand remain oil, rice and sugar, Al Mal reports.(Read in Arabic in Al Mal and Al Borsa)

MANUFACTURING

New EGP 800 mn rebar factory to start commissioning by November
Amwal Al Ghad | 12 Aug 2015
The El Marakby for Steel Company is aiming to begin commissioning at its new EGP 800 mn rebar factory this coming November, according to company president Hassan El Marakby, highlighting that expected output should reach 350k tons annually. El Marakby has contracted the Ministry of Electricity to supply power to the factory as soon as operations begin. (Read in Arabic)

Egypt imported 600k tons of steel in last 7 months, FEI says
Youm 7 | 12 Aug 2015
The Federation of Egyptian Industries (FEI) announced that from January-July 2015, Egypt imported 600k tons of steel worth USD 250 mn from China, Turkey and Ukraine, according to statistics obtained from Central Agency for Public Mobilization and Statistics (CAPMAS). FEI representative Mohamed Hefny said that steel industries question USD supply to import such huge amounts of steel, especially at a time when local industries have had difficulty importing local production materials. (Read in Arabic)

REAL ESTATE & HOUSING

Mahlab allocates land to public interest purposes
Al Mal | 12 Aug 2015
Prime Minister Ibrahim Mahlab issued decrees allocating several plots of land to different government authorities for the purposes of public interest. 300 sqm were allocated to the Social Solidarity directorate to build a unit in Ezbet Al Boosa, Qena. 221 sqm were allocated to Egypt Post to build a new post office in Farshut, Qena. 900 sqm were allocated to the National Organization for Potable Water and Sanitary Drainage to build a wastewater plant in Kom Hamada, Behira. (Read in Arabic)

TOURISM

EgyptAir to operate nine flights for Palestinians during Hajj season
Amwal Al Ghad | 12 Aug 2015
EgyptAir signed an agreement with Palestinian Airlines, agreeing to provide nine charter flights during the upcoming Hajj season. The flights will transport 2,200 passengers from the Cairo International Airport. EgyptAir’s Chairman said the agreement is not the first of its kind and that Egypt’s flag carrier always sought to provide Palestinians with traveling options. (Read in Arabic)

TELECOMS & ICT

Dell prepares to raid the domestic tablet market
Al Mal | 12 Aug 2015
Multinational computer technology company Dell is preparing to dive into the domestic tablet market in the coming period, according to Hashem Mansy, manager of Dell Egypt. As of 2Q15, Dell control 35% of the domestic laptop market, according to the most recent IDC studies, as well as 27% of the personal computer market.  (Read in Arabic)

Egypt agrees to a contract with Chinese Association to redesign AIT building
Youm 7 | 12 Aug 2015
The Council of Ministers announced on 12 August that it agreed to a contract with the China Association for Science and Technology (CAST) to redesign a Satellite Assembly, Integration and Test (AIT) building as part of cooperation efforts between the Chinese National Space Administration (CNSA) and the National Authority for Remote Sensing and Space Sciences (NARSS). Chinese had approved a USD 30 mn grant to Egypt to build a satellite assembly and testing center. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

ENR mulls high speed cargo railway from Alexandria to Aswan
Al Borsa | 12 Aug 2015
Egyptian National Railways (ENR) is considering setting up a high speed cargo railway line connecting Alexandria to Aswan. The proposed line would have a minimum speed of 80 km/h, ENR’s deputy head said, and it would be located to the Nile’s west. ENR has commissioned Ineco to conduct a feasibility study for the project. (Read in Arabic)

Alstom, Petrojet compete over Kostka train workshop developments
Al Mal | 12 Aug 2015
Three companies have submitted proposals to participate in the Kostka train workshop development project, according to Ali Fadali, head of the Egyptian Company for Metro Management and Operations. The three companies include the French company Alstom, and the Ministry of Petroleum owned Petrojet. A winning proposal will be chosen within a month, Fadali added, noting that his company wants the project completed two years from the date of contracting. (Read in Arabic)

BANKING & FINANCE

Wadi Degla sets up new leasing outfit
Amwal Al Ghad | 12 Aug 2015
Wadi Degla Holding announced the formation of Global Lease, a leasing company. Global Lease is a joint operation with Germany’s development bank, KfW, and began operations in May. The company has authorized capital of EGP 500 mn and a paid-in capital of EGP 50 mn. (Read in Arabic)

Visa prepares to launch mVisa in Egypt
Al Mal | 12 Aug 2015
Visa Egypt are currently working with banks to execute their strategic plan to implement the new mVisa system that will allow traders and consumers to buy, sell, pay bills and transfer money through their mobile phones. The developers will test this system in India as of September, through 20k outlets in the greater Bangalore area. (Read in Arabic)

CBE launches financial education initiative
Al Mal | 12 Aug 2015
The Central Bank of Egypt (CBE) has launched a financial education initiative to be implemented in 12 government universities, according to Mohamed Zakariya, head of training  at the Egyptian Banking Institute, an affiliate of the CBE. The initiative will run from August 2015 until June 2016. The program targets third and fourth year students, offering six training programs, four of which concern the banking sector, the CBE and its role, while the remaining two are concerned with employment after graduation. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

ASCOM selling 21% of Lazerg Travaux Public at EGP 61.8 per share
Arab Finance | 12 Aug 2015
The ASCOM board of directors agreed to amend the selling price of 21% stake in Lazerg Travaux Public. The selling price will be EGP 61.68 instead of EGP 77.30 for 121,720 shares. Following this transaction, ASCOM will cut its stake in Lazerg from 70% to 49%. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Abdelnour to meet with Ukrainian counterpart, hopes to increase bilateral trade
Amwal Al Ghad | 11 Aug 2015
Trade and Industry Minister Mounir Abdelnour is meeting with his Ukrainian counterpart in the second half of this month to discuss increasing bilateral trade. The volume of trade between the two countries is around USD 3 bn with its balance tilted heavily towards Ukraine. Egypt imported USD 2.8 bn worth of products (mostly wheat) from Ukraine last year. Fakhry hopes to get Kiev to ease the restrictions placed on Egyptian agricultural exports to Ukraine and stressed the importance of increasing Ukrainian tourist arrival figures to Egypt. (Read in Arabic)

NATIONAL SECURITY

A tourism and antiquities police officer was gunned down and killed by unidentified assailantsriding a motorcycle in Fayoum on Wednesday, according to a release by the Interior Ministry. Security forces have mounted a manhunt. (Read in Arabic)

ON YOUR WAY OUT

Talaat Moustafa Group Holding’s net profits grew 12% y-o-y in 1H2015 to register a net profit of EGP 394.37 mn, Reuters reported.

Japan restarted its first nuclear reactor following the Fukushima disaster. The 846 MW Sendai Nuclear Power Station Unit 1 became the first reactor to restart after nearly two years with no generation from nuclear power plants in Japan. It is expected to return to normal operations by September, according to the EIA.

B Tech plan on opening 37 new branches across the country by the end of 2018, according to company Chairman Mahmoud Khatab. B Tech currently operate 63 branches through 20 governorates in Egypt, Al Mal reported.

BY THE NUMBERS

USD CBE auction (Tuesday, 11 August): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Monday, 10 August): 7.85 (3 piasters stronger in the first move since Sunday, 26 July)

EGX30: 7,911.9 (-2.2%)
Turnover: EGP 446.1 mn (5% below the 90-day average)

WTI: USD 43.33 (+0.58%)
Brent: USD 49.71 (+1.08%)

TASI: 8,708.3  (-1.6%)
ADX: 4,765.8 (-1.0%)
DFM: 4,022.1 (-1.2%)
KSE Weighted Index: 420.3 (-0.1%)
QE: 11,772.7  (-0.1%)
MSM: 6,320.5 (-1.3%)