Wednesday, 2 September 2015

El Sisi heads to China today, completing major realignment of Egypt’s foreign policy

TL;DR

El Sisi heads to China today for the second time in less than a year, completing major realignment of Egypt’s foreign policy
New details on how Eni’s Zohr field will be split between the Italian IOC and the state
USD 5bn in Kuwaiti investment on hold due to gas shortage?
Morsi’s fears of Salafists revealed in Clinton email
Dropping a lid on media talk of Egypt’s nuclear program
The TE Data Customer Service Baboon watches, observantly, as the drama unfolds…
** By the Numbers + It can be more expensive to buy gasoline in Egypt than in America **

WHAT WE’RE TRACKING TODAY

Anyone in the mood for some Chinese? We’re thinking about more than just who has the best takeaway in the capital city this morning as President Abdel Fattah El Sisi heads to Beijing today for a three-day stopover, his second visit to the Middle Kingdom in under a year. We see this as one of three defining moments of Egypt’s foreign policy so far this year, alongside Russian President Vladimir Putin’s visit to Cairo and the deepening of Egypt’s defense procurement relationship with France.

The president’s formal meetings begin tomorrow and include a one-on-one with Chinese leader Xi Jinping. Among the economic agreements and cooperation pacts El Sisi is expected to sign while in the Chinese capital are loans that will see Egypt hop on the Chinese “infrastructure for Africa” gravy train: a USD 100 mn loan to finance SME lending and a further USD 1 bn for sewage projects in 260 impoverished villages. A number of major Chinese corporations have expressed interest in opportunities in Egypt ranging from high-speed and light rail lines to funding for infrastructure projects.

How did we get here? El Sisi made what Ittihadiya billed as a “landmark” visit to Beijing last December. Egypt formally joined the Silk Road Economic Belt trade union in June, the same month Cairo became a founding member of the China-led Asian Infrastructure Investment Bank. In August, the Bank of China made CIB its African partner for the One Belt, One Road initiative (encompassing the Silk Road Economic Belt and the Maritime Silk Road).

If the second half of 2014 was about resetting relations with GCC powerhouses including the UAE, Saudi and Kuwait after the Morsi ‘interregnum,’ we see the upcoming China sojourn in the context of Egypt’s “Four Corners” foreign policy in 2015:

Deepen ties with Europe (particularly France and Italy) for reasons equally political and economic;
Mend fences (somewhat) with America, but offset that with closer links to Russia;
Re-engage with Africa, particularly the Nile Basin countries, in a bid to avert conflict over water resources a generation from now;
Balance it all, where interests overlap, with Beijing — the world’s second-largest economy and an increasingly active player in African infrastructure development and financing. El Sisi will appreciate China’s statist approach and knows well that while the rest of the world frets over China’s coming economic woes today, Beijing’s planning horizon stretches decades out and sees African resources as a critical asset.

El Sisi’s final Asian stop after Beijing: Indonesia.

Speaking of China: The Dow closed down 3% yesterday “on worries about China,” the WSJ reports. As we quoted a trader as saying on Sunday: “I find it a little too neat that we had our couple of bad days and it’s back to business as usual … and the VIX is telling you that.”

Finally, is J.K. Rowling penning another Harry Potter book? Or just teasing her upcoming play? Harry’s creator tweeted yesterday: “I’m in Edinburgh, so could somebody at King’s Cross wish James S Potter good luck for me? He’s starting at Hogwarts today. #BackToHogwarts”. As we noted this past June, the original stage play “Harry Potter and the Cursed” is due to go on stage in London next year. All Rowling has said so far: It isn’t a prequel. On a related note: The Patient Support Team, a philanthropic group run by Egyptian medical students, held on Saturday an event headlined “The Harry Potter Experience” to raise funds as part of the group’s goal of helping improve healthcare in Egypt.

WHAT WE’RE TRACKING THIS WEEK

The Emirates NBD / Markit Economic Purchasing Managers’ Indices for Egypt, the UAE and Saudi Arabia will drop at about 7:30am CLT tomorrow (Thursday). That’s about an hour and a half after we dispatch, so you’ll want to head here to read the release yourself in pdf if you don’t want to wait for Sunday morning’s Enterprise.

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LAST NIGHT’S TALK SHOWS

Tuesday night’s episode of Hona El Assema cast light on what is being treated in Egypt as the greatest unsolved mystery of our time: the case of Maryam Malak, better known as the Girl Who Allegedly Scored a Zero on Her Thanawiya 3amma Exam. Lamis El Hadidy’s guests for the episode were Hisham Taher and Mohamed Dash, representatives of the Assiut Control, the government body responsible for administering and monitoring exams in the governorate.

Taher: “The media blindly supports Maryam, while we, on the other hand, have received abuse. In spite of this vitriol, we have maintained our professionalism and have remained silent. That said, we are certain that the documents are hers. All evidence suggests that these examination documents belong to her. The forensic experts who studied the documents are certain of this.”

Dash: “How and why is it in our benefit to treat the girl this way? We receive no pleasure from making this girl cry and her parents grieve. Nonetheless, this is our job; we specialize in this field. I am certain that these documents belong to the girl … The audience sees Maryam’s tears and automatically feels sympathy. This, however, does not change the fact that the exam belongs to her.”

In an effort to appease both the girl and the general public, Prime Minister Ibrahim Mahlab reportedly met with Maryam and her lawyer on Tuesday night, reports Shorouk. In their meeting, the Prime Minister promised to help Maryam with her appeal process, adding that he intends to provide her with the same support he would offer to his own daughter.

Meanwhile, Khalid Aboubakr, filling in for Amr Adeeb, discussed upcoming parliamentary elections on Tuesday night’s episode of Al Qahera Al Youm. Speaking as if he were the president’s right-hand man, as Egyptian television hosts often do, Aboubakr warned viewers that parliament could impede El-Sisi’s progress. The host proceeded to urge the yet-to-be-elected parliament to support the president and his cabinet in their effort to improve Egypt.

SPEED ROUND

Speed Round is presented in association with

Al Borsa presented what it says is the supergiant Zohr field’s production sharing agreement with Eni: The gas field is estimated to hold 30 tcf of gas, 40% of the output will go directly to Eni towards cost recovery. The remainder will be split between Eni and EGAS, with Eni receiving 35% of the product and EGAS getting 65%. The purchase price of gas will be set in accordance to the development plant and the production stages, Al Borsa adds. With just one exploratory well drilled so far, EGAS Chairman Khaled Abdel Badie said development should be completed in three years. He has also reportedly said that Eni will be allowed to sell the gas produced freely without any restrictions.

In a separate statement, Petroleum Ministry spokesman Hamdy Abdel Aziz said that gas from the Zohr field will be used to meet domestic demand for a period of 10 years. We’re presuming he’s referring to EGAS’ share and that Eni will have the ability to export to European markets via liquefaction facilities. We’ll be keeping an eye on the details in the days ahead. Both Al Mal and Bloomberg picked up the ministry spokesperson’s comments. Without giving details, Abdel Aziz added that plans to begin importing gas from Cyprus in 2018 could change in light of the Zohr discovery, although he failed to mention specifics.

Our TE Data Customer Service Baboon loves the drama. Rumors of a pending management shakeup at fixed-line monopoly Telecom Egypt continue to swirl as the local press speculates that recently appointed CEO Osama Yassin has lost the confidence of CIT Minister Khaled Negm and TE Chairman Mohamed Salem. The two are said to be about to relieve Yassin of his duties, with Al Masry Al Youm citing a source saying there’s a perception that Yassin is moving too slowly in reaching new infrastructure rental agreements with the three mobile operators. The newspaper also claims there is no bar to having Salem serve as both chairman and CEO if need be.

Two Kuwaiti companies put USD 5 bn in investments on hold due to gas shortage: Two Kuwaiti companies have decided to put USD 5 bn in planned investments in Egypt on hold due to the halting of gas supplies in fertilizer plants, a member of the Egypt-Kuwait Cooperation Council told Al Shorouk. The investors had plans to build fertilizer plants, but decided to put their plans on hold until the government’s policy becomes clearer. A member of the fertilizers sector of the Federation of Egyptian Industries said investors have presented to the government multiple options, including increasing pricing, in order to maintain a steady energy supply to no avail. EGAS had stopped supplying a number of plants with natural gas since last week. (Read in Arabic)

The Electricity Ministry announced a number of decisions on Tuesday aimed at keeping a tight lid on Egypt’s nuclear program. The first was the appointment of Hany Abdel Rahman as official spokesperson for the nuclear program. All media outlets have been instructed to check Abdel Rahman before releasing news on the nuclear program. Then came the announcement that Dr. Ibrahim El Isseiry has been let go from his position as Special Advisor on Nuclear Affairs at the Nuclear Power Plants Authority as a result of extensive media coverage of the Daba’a power plant. El Isseiry stated that he will continue to discuss the project with the media as it is “strategic importance” to the nation.

The Administrative Prosecution Authority (APA) will be the enforcer of the Civil Service Act, according to a decision published in the Official Gazette. The APA will have the final say on disciplinary committees, decisions on arbitration and handle appeals.

The Central Bank of Egypt has renewed a 6 January 2014 decision permitting foreigners to transfer out of Egypt savings, personal income and earnings abroad in hard currency. These transfers have been capped at USD 100K per khawaga in one year. The CBE also renewed a 4 February 2013 decision allowing foreigners to transfer out of the country in hard currency the same amounts as they transfer in, Al Mal reports.

New Trade Unions Act will require Parliamentary seal of approval: The Mahlab government won’t use President Abdel Fattah El Sisi’s constitutionally provided power to enact legislation in the absence of an elected parliament to fast-track the Manpower Ministry’s Trade Unions Bill. That task will be left to the House of Representatives, which is expected to convene before year’s end following a two-stage election this fall, said Manpower Minister Nahed Al Ashary. Speaking at the three-day Arab Labor Organization’s Collective Bargaining Conference held in Sharm El-Sheikh on Tuesday, the minister stated that the new law seeks to “enshrine the rights of workers”. Since the revolution there has been a proliferation of a number of independent labor unions, whose legal status is ambiguous as the current law solely recognizes state-controlled unions. Former Manpower Minister Ahmed Hassan Al Borai said the situation leaves independent unions in a gray zone of “isolation and marginalization.” Al Ashary did not specify how independent unions might fare under the proposed legislation.

A number of French companies are exploring investments in renewable energy, power plants, telecom, and infrastructure. The French Chamber of Commerce in Egypt held meetings with investors looking to get in on projects such as Airport City, the Golden Triangle, and Marsa Matrouh Port development, said Hassan Benham, a board member at the Chamber. The organization also held meetings with the Armed Forces Engineering Authority to explore investment channels for French companies in their project pipeline.

Japan wants to participate in managing the Grand Egyptian Museum, Hideki Matsunaga Chief Representative JICA Egypt told Al Mal. JICA is providing financing covering 50% of the project’s construction cost and has also pledged a USD 10 mn grant. Matsunaga added that JICA is considering extending more financial assistance to the project following the museum’s official inauguration, which is expected in 2018.

Severe turbulence on an EgyptAir flight heading to Cairo from New York injured 12, according to Al Masry Al Youm. Ten passengers and two flight attendants were treated for injuries once the plane landed in Cairo International Airport. In a statement, EgyptAir apologized to passengers and said that the incident was “out of our control.”

The Nile Ritz Carlton will officially begin operations on 30 September. The hotel has asked Prime Minister Ibrahim Mahlab to attend its inauguration, according to Al Mal.

Egyptian woman tops squash world ranking: Raneem El Welily was ranked the world’s number-one women’s player on Tuesday by the Professional Squash Association, AP reports. The Association also kept “Egyptian Mohamed Elshorbagy in the men’s No. 1 slot. Three other Egyptian men and women are ranked in the top 10.”

CORRECTION: In a summary yesterday headlined “Haisung closes in on water pump contract for Al Shabab power plant,” we misstated the name of the South Korean industrial engineering firm. It is Hyosung. H/t Ibrahim S.

EGYPT IN THE NEWS

State-owned UAE newspaper The National published an editorial on Monday titled: ‘Egypt needs to use its gas windfall wisely.’ “The reduction in subsidies for power, fuel and staple commodities were difficult but needed to be done … The issue of subsidies is an important one because the most politically popular option would be to use the financial windfall from the Zohr gas field to ease the cost of living for ordinary Egyptians. Rather than seeking expedient short-term solutions, what is needed instead is a strategy to bolster the economy in the long run.” (Read)

El-Sisi challenge grows as Egypt bureaucrats oppose pay cuts: Bloomberg writes on the ongoing protests by civil service workers against the proposed Civil Service Act. “‘Is the size of the bureaucracy today normal and suitable for a country like Egypt?” El-Sisi responded to the protests in a televised address. He called on demonstrators to accept the law and make a ‘sacrifice for their country.’ El-Sisi does have some economic data on his side.” (Read)

Egyptian media in the media: Egyptian media coverage of Lebanese protests ‘unprofessional’: Lebanese newspaper Al Akhbar ran a piece on Monday critical of the Egyptian media’s coverage of the ongoing “You Stink” protests in Beirut, reported Daily News Egypt. “The policy of turning a blind eye to the complexity of the situation summarizes what has appeared in the Egyptian press on the Lebanese protests, and more importantly it is a policy employed by Egyptian media to distract public opinion from the depth of what is happening,” according to the Akhbar article.

WORTH READING

Morsi’s fears of Salafists aired in Clinton email: An email from Sidney Blumenthal to Hillary Clinton dated 14 September 2012 sheds some light on Morsi’s anxieties at the time — namely that he suspected that Salafists were behind incitement to violence. The email also alleges that the MFO came under attack by Islamist militants. With regard to the demonstrations around the US Embassy in Cairo in September 2012, as well as the alleged attack on the peacekeepers, the email reads: “In a private conversation, Morsi stated that he felt he is losing control of the political situation and fears that if the current fighting results in deaths, either of demonstrators, U.S. diplomats, Egyptian security personnel, or UN peacekeepers, the situation may spin out of control and his government could fall. [Saad] Al-Katany[sic] agreed, but said that taking no action would guarantee disaster. They agreed that when the situation calms down they will have to deal with the al Nour party, which they fear will, in the future, take advantage of circumstances to try to destabilize Morsi’s administration.” (Read in the WSJ’s Live Dive, pdf)

DIPLOMACY

Israel asks Egypt: Stop move to monitor our nuclear facilities: Israel has asked Egypt to stop its diplomatic efforts to advance a resolution to put Israel’s nuclear facilities under international inspection, an issue expected to put to a vote at the International Atomic Energy Agency’s General Conference in two weeks, according to senior officials in Jerusalem speaking to Haaretz. “Despite everything that’s been going on in the region in recent years, Egypt is continuing as if nothing has changed and is acting against Israel in international forums,” a senior Israeli official said. Egypt has long led the way in an effort to have the Middle East declared a an area without nuclear weapons. (Read in Haaretz, paywall)

The U.S. Ambassador to the United Nations tweeted on Tuesday with regard to a new campaign to release what the US State Department describes as a group of 20 female political prisoners. The #Freethe20 campaign includes Egyptian activist Sanaa Seif.

ENERGY

ANRPC signs USD 300 mn CCR unit with Honeywell UOP
Zawya | 01 Sep 2015
Alexandria National Refining & Petrochemicals Company (ANRPC) finalized a USD 300 mn agreement with Honeywell UOP to expand a gasoline production facility. ANRPC is adding a second CCR Platforming process unit, following one that was installed in 2001, “to produce high-quality reformate, which is used to produce high-octane, low-sulfur gasoline.” The new unit will help reduce the dependency on imported gasoline, of which Egypt has been a net importer of since 2008. (Read)

Government aims to increase gas production by 1.2 bcf per day by 2018
Al Shorouk | 01 Sep 2015
The Oil Ministry will be aiming to add an extra 1.2 bcf of natural gas output per day by 2018 by connecting production from BP and BG, said EGAS Chairman Khaled Abdel Badie. Production from North Alexandria is set to begin in 2017 at 550-600 mcf per day. The Ministry is also looking to increase production activities to activating the an agreement with BG Group to invest USD 4 bn over the next two years on activities including the development of the 9B wells of the West Delta Deep Marine concession. (Read in Arabic)

AMOC commissions Technip to conduct assessments for diesel and naphtha production
Youm7 | 01 Sep 2015
Alexandria Mineral Oils Company (AMOC) has commissioned Technip to conduct financial and technical studies for its proposed diesel, naphtha, and fuel oil production project. The project is expected to have a total investment value of USD 250-300 mn and is part of the Oil Ministry’s plan to increase fuel production domestically. The assessments, which are going to cost USD 635k, are set to begin this month and will last until mid-2016. (Read in Arabic)

Gaza gas production could be a pipedream, analyst says
I24 News | 01 Sep 2015
Gaza’s gas fields have not been developed and their owners, led by BG, are not finding customers, Danny Rubinstein writes for i24 News. “Israel did not want to buy the gas from Gaza, the Egyptians did not need it, and security and political constraints on the part of Israel would not have allowed the gas to be delivered through its territory to the West Bank and the Kingdom of Jordan,” so pumping investments to develop the field solely for Gazan demands makes no sense for BG, Rubinstein adds. He adds that the large discoveries made in Israel and Egypt minimize the regional demand for any Gazan gas. This leaves the only option of allowing the development of Gaza’s Marine field and pipeline transfer of gas to the West Bank and Jordan, which “could well be a breakthrough for the Palestinian economy.” However, Rubinstein says such plans are stymied by the impasse in peace talks between Israel and Palestine. (Read)

BASIC MATERIALS + COMMODITIES

25 Emirati storage silos to be completed by March next year, says EHCSS
Al Nahar | 01 Sep 2015
A UAE-backed project to build 25 grain storage silos at a cost of USD 300 mn will be complete by March 2016, said Mahmoud Abdel Hamid, president of the Egyptian Holding Company for Silos and Storage (EHCSS). The Emirati project is meant to build silos across 17 governorates to increase the total grain storage capacity by 1.5 mn tonnes. EHCSS is building 11 silos, while the Ministry of Agriculture is building 10 more. The remaining four silos will be built by the General Company for Silos and Storage (GCSS). The silos will save 10%, or EGP 2.7 bn, in wasted grain annually. (Read in Arabic)

MANUFACTURING

South Valley Cement Company adds second production line
Al Borsa | 01 Sep 2015
The South Valley Cement Company has two new cement mills to its production line, increasing its annual output from 1.5 mn tonnes to 3.2 mn tonnes, according to statement from the company on Tuesday. The company had previously inked a EGP 300 mn agreement with Chinese firm Sinoma CDI to build a new clinker and cement line to be completed within 18 months. The cement company’s net profits hit EGP 32.35 mn in 1Q15, up 2.7% from the same period the year before. (Read in Arabic)

Ministry of Environment, Finance study building recycling city in Belbeis
Al Borsa | 31 Aug 2015
The Ministries of Environment and Finance are studying building a recycling city in Belbeis, Sharqeya over an area of 700 feddans, and includes recycling petroleum, sanitary and agricultural waste. The Ministry of Environment has submitted a feasibility study to the central unit for private sector partnership at the Ministry of Finance, according to environment minister Khaled Fahmy. Egypt produces around 80 mn tonnes of waste, said Fahmy, 35 mn tonnes of which are agricultural. 15 mn tonnes alone could generate 3000 MW. (Read in Arabic)

Egycycle to launch “first RDF facility in the Middle East”
Al Borsa | 01 Sep 2015
Solid waste management company Egycycle plans to launch an RDF (refuse-derived fuel) facility in Kafr E-Sheikh by year’s end, with plans to expand to Alexandria and Giza in 2016. The first phase of the EGP 40 mn facility will include three production lines, says company chairman Sameh Samy. The company plans to market the RDF as an alternative fuel to heavy energy consumers such as cement factories. The article claims that it is the first to produce RDF in the region, but Qalaa Holdings’ waste management subsidiary Tawazon is one of at least two we can think of that have been in this line of work for years now. (Read in Arabic)

HEALTH + EDUCATION

iMediaEthics editor-in-chief joins Future University in Egypt faculty to lead “media ethics, fact checking and press freedom training”
PR Newswire | 01 Sep 2015
Rhonda Roland Shearer will serve as Distinguished Visiting Scholar at Future University in Egypt’s Faculty of Economics and Political Science (FEPS), which includes the new interdisciplinary department of Political Mass Media. “In September, Shearer will begin working with the university to create a 12-class curriculum and a textbook on fact checking and media ethics in Egypt. The textbook is tentatively titled ‘From the Front-Lines of the Media Ethics Battle in Egypt: How Fact Checking Supports Press Freedom and Democracy.’” (Read)

US-Egypt scientific and technological cooperation agreement renewed for five years
Al Mal | 31 Aug 2015
Egypt and the United States have renewed their technological and scientific cooperation agreement for five years. Stephen Beecroft, American ambassador and Farid Munib, Assistant Egyptian Foreign Minister, signed the five year agreement on August 31. Beecroft said that the scientific research fund, headed by the Egyptian Minister of Scientific Research and the US Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, contributed to the empowerment of more than 10k Egyptian and US scientists to collaborate on more than 480 scientific research projects with 60 different workshops. (Read in Arabic)

22 news schools next year, says Cairo Governor
Al Ahram | 01 Sep 2015
22 new schools in the capital will become operational as of the next school year at a total cost of EGP 79 mn, says Cairo Governor Galal El Saeed. The National School Maintenance Project involves servicing 198 schools at a total cost of EGP 19 mn; some 44 schools have been completed, and 154 will be done before the start of the 2015-16 school year. (Read in Arabic)

REAL ESTATE + HOUSING

Five companies compete over 40k sqm residential area tender in Suez
Al Borsa | 1 Sep 2015
Five companies have passed the technical offer stage in a tender for a 40k sqm plot of land allocated for real estate activity in Suez, according to the Suez Housing Directorate head Hassan Kamel. The most notable companies are Al Manar Group, Arabia Group and Safwan. The Atlas Company had won a tender to install infrastructure in an area of 65 feddans in Suez, at a total cost of EGP 30 mn, and will hand the land over to the winning company by the end of this month. (Read in Arabic)

TOURISM

Al Tayyar Group reviews tender bids on Orlando Ain Sokhna, prepares launch of Nile Air IPO
Al Borsa | 01 Sep 2015
Al Tayyar Tourism Group is reviewing six tender offers from contractors vying to develop the Orlando Resort in Ain Sokhna, said Managing Director Yousry Abdel Wahhab. The project, which Al Tayyar is running on a dual management contract with Hilton Worldwide, will consist of 203 rooms, suites and villas. Abdel Wahhab also announced that the company plans to launch an IPO for its subsidiary Nile Air sometime in 2016. The company plans to list 30% of Nile Air’s shares, in what would be the first airline listing on the EGX. (Read in Arabic)

TELECOMS + ICT

MCIT studies building Smart Village in Aero City
Al Mal | 31 Aug 2015
The Ministry of Communication (MCIT) is studying building a new smart village in Aero City at Cairo International Airport on a 25 feddan plot of land. CIT and Civil Aviation Ministers will meet within days to discuss the details of the project, says Mohamed Abdel Wahab, Chairman of Maadi Technology Zone, saying it will probably be similar in nature to the 6 October Smart Village. The government is planning for smart villages in seven cities at an estimated cost of EGP 20 bn. The cities are Aswan, Beni Suef, Assiut, 10 of Ramadan, Borg El Arab and Ismailia, Al Mal tells us. (Read in Arabic)

BANKING + FINANCE

AfDB could disburse USD 130 mn to finance Damanhour Power Station – sources
Amwal Al Ghad | 01 Sep 2015
The African Development Bank is assessing extending USD 130 mn to finance the Damanhour power station project, a source told Amwal Al Ghad. The bank will discuss the funding possibility in meeting mid-November. The project involves building a closed cycle power station with a production capacity of 1,800 MW using natural gas as its primary input and diesel as backup.

OTHER BUSINESS NEWS OF NOTE

April 6 Movement’s expression of solidarity not welcomed by Tax Authority protesters
Al Mal | 01 Sep 2015
Tax Authority staff protesting the Civil Service Act can use all the help they can get — provided it’s not from the April 6 movement. Organizers at the TA denounced the April 6 Youth Movement’s expression of solidarity with the upcoming 12 September protest, claiming that it appropriates their cause for political purposes, according to Hedeya Zaatar, legal researcher at the Tax Authority. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Egypt seizes 5 Ikhwan-affiliated publishing houses
Youm7, Ahram Online | 01 Sep 2015
Five publishing houses allegedly affiliated with the Ikhwan have been seized by a government committee organized assigned to investigate and freeze assets suspected of such links. The committee seized the publishing houses of Dar El-Fath Arabic Media, Arab Media Centre, Dar El-Fadila, Iqraa Publishing House and Hroof for Publishing and Distribution, all of which will now be operated by the Ministry of Culture. (Read in Arabic in Youm7 or Ahram Online)

Al Ahram to files case against ElSayed ElBadawi for debt exceeding EGP 15 mn
Youm7, Al Ahram | 01 Sep 2015
In a statement, Al Ahram announced that it has filed a case against ElSayed ElBadawi, President of Al Hayah TV and SIGMA Advertising Group, for EGP 15 mn overdue advertising bills. According to Ahmed AlBortoqaly, director of legal affairs, Al Ahram will seek compensation for financial damages caused due to ElBadawi’s NSF checks to the institution. In the statement, Al Ahram said it is willing to settle if ElBadawi shows “serious” intent to repay the debt. As we mentioned last month, ElBadawi was sentenced to three years in prison for bouncing a check at Qatar National Bank (QNB). (Read in Arabic)

NATIONAL SECURITY

Egyptian police thwart attack on Al-Arish security checkpoint, killing assailant -MOI: Egyptian police officers prevented a suicide bombing at a security checkpoint in Arish on early Tuesday morning, according to a statement from the ministry and as reported by Ahram Online. Police opened fire on a driver who was later found to have explosives in his truck after the driver refused to stop at the checkpoint during the nightly curfew.

Former interior minister accuses Brotherhood of leaking documents in Morsi trial: Former interior minister Maj. General Mohamed Ibrahim testified in the latest session of Morsi’s espionage trial on Tuesday, DNE reports. Among points raised in his testimony, Ibrahim noted that some of the documents leaked to Al Jazeera could have only originated from the office of the presidency.

ON YOUR WAY OUT

Google has rebranded, and we can’t say we like the change. Same color scheme, but a sans-serif font. Check it out by heading to google.com from a browser near you.

Grand Mufti Shawki Allam denounces Daesh burning of Iraqi Shia fighters: Grand Mufti Shawki Allam denounced on Tuesday the burning alive of four Iraqi Shia fighters by Daesh as “barbaric and cowardly,” as reported by Ahram and Ahram Online. “Such acts committed by the terrorist group contradict the principles of true Islam and the path of the Prophet [Mohammed] and contravene all international norms and laws,” Allam said.

The Ministry of Health announced the launch of four national diabetes awareness projects, said Hesham El Hefnawy, head of the National Diabetes and Endocrinology Institute, Al Mal reported. The projects aim to implement internationally recognized protocols of diabetes treatment and raise awareness on diabetes to the public and professionals. Additionally it aims to implement early detection methods and give information on how to adjust lifestyle choices to accommodate diabetes.

Lebanese protesters occupied the Ministry of Environment headquarters in Beirut on Tuesday, Al Arabiya reports. Under the “You Stink” campaign, protesters called for environment minister Mohamed Al Mashnooq’s resignation in light of the garbage and water crisis in Lebanon. Last Saturday, Al Mashnooq refused to step down from his position, saying it would mean running away from responsibility as an official. The Lebanese army sent reinforcements to the ministry’s headquarters. (Watch video of protesters here, running time 0:20)

BY THE NUMBERS
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QUICK FACT: Regular gasoline is currently sold in the United States at around EGP 4.50-5.00 / liter, excluding taxes. In the UAE, the price rose to EGP 4.60 / liter in August 2015. In Egypt, 95-octane gasoline brand is sold for EGP 6.25 / liter.

USD CBE auction (Monday, 31 August): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Monday, 31 August): 8.02 (+0.02 from Thursday, 27 August)

EGX30 (Tuesday): 7,203.9 (-0.7%)
Turnover: EGP 430.0 mn (8% below the 90-day average)
EGX 30 year-to-date: -19.3%

Foreigners: Net long | + 0.7 mn EGP
Regional: Net short | -16.9 mn EGP
Local: Net long | + 16.2 mn EGP

Retail: 65.2% of total trades | 66.7% of buyers | 63.7% of sellers
Institutions: 34.8% of total trades | 33.3% of buyers | 36.3% of sellers

***PHAROS VIEW:
New Natural Gas Field May Mean End of Energy Shortage for Egypt

On Sunday, Italian oil giant Eni announced the discovery of the largest natural gas field found in the Mediterranean to date, estimated to hold around half of Egypt’s proven reserves — nearly 30 tn cubic feet of natural gas. Eni is yet to issue any information about the ownership rights of the new concession, but the press release implied full ownership of the concession, which is not far-fetched since Egypt recently granted full ownership stakes to foreign partners in return for sizable payment arrears. Sources privy to the matter told Pharos Research, however, that the Egyptian government’s stake exceeds 60%.

For Egypt, the new concession could mean a change in the medium-term outlook and a solution to a persistent energy crisis that had plagued households and industry alike for the last two years at least. With a stake of 60% or above, the Egyptian government would procure the natural gas at relatively the same prices and therefore increase its capacity and maintain retail prices, effectively alleviating the pressure on industrial customers and other Egyptian equities. If the opposite is true, Egypt’s natural gas costs would nearly double. To find out more about the different scenarios click here.
***

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