TL;DR

El Sisi called in to Amr Adib’s show last night, says “We’ve been unable to reach our youth.” (Last Night’s Talk Shows)

Egypt to launch first Mideast commodities exchange by year’s end, minister says. (Speed Round)
Egyptians can now trade on Nasdaq Dubai. (Speed Round)

Former BG Egypt President Arshad Sufi on why “In a low-oil-price environment, fortune favours the brave (and the nimble)” (A Contrarian View)

BAML says Egypt could avoid a sharp devaluation in 2016, LG is facing shutdown on FX shortage (Speed Round)

EFG Hermes tops brokerage league tables for January, Pharos vaults to second place. (Speed Round)

Sawiris and Mansour families dominate Forbes’ list of Egyptian bn’aires (Speed Round)

Mohamed El Erian doesn’t like that oil and equities have become tightly correlated. (Speed Round)

By the Numbers

WHAT WE’RE TRACKING TODAY

Parliament weighs in on Matariya Hospital lockdown: The House Committee on Health and Deputy Speaker Suleiman Wahdan will hold a meeting today with the Doctors Syndicate and representatives of the Interior Ministry to resolve the lockdown at Matariya Hospital, Al Mal reports. MP Ayman Abu Al Ella sent a petition signed by other MPs to the speaker of the House calling for the formation of a fact-finding commission on the issue. Doctors shut down the hospital after police officers allegedly assaulted and later arrested physicians there for refusing to falsify medical reports.

A 37-company-strong Italian business delegation will begin talks today prepare for the Egyptian-Italian Business Summit that will take place this month in Cairo. 50 companies had been expected to arrive based on statements by a number of officials. Egypt is preparing a series of projects in the oil and gas, renewable and petrochemical sectors to present at the summit, said Khaled Abu Bakr, head of the Egyptian-Italian Business Council.

The conference ‘Underground Infrastructure and Deep Foundations Egypt’ kicks off in Cairo today.

And across the pond, the Iowa caucuses are taking place, and what CNN is calling “Trump’s moment of truth” is near: The Associated Press is projecting at dispatch time (a couple of minutes before 6am CLT) that Ted Cruz will win the caucuses.

WHAT WE’RE TRACKING THIS WEEK

The Emirates NBD Purchasing Managers’ Indexes for Egypt, the United Arab Emirates and Saudi Arabia will be out tomorrow at about 7:30am CLT. You’ll find them here when they’re released.

Education for Employment is holding a networking and learning meeting from 1-3 February at the Four Seasons Nile Plaza. The nonprofit network’s aim is to create economic opportunity for unemployed youth in MENA by providing them with training in vocational and professional skills in high demand by the local labor market — and connecting graduates to jobs.

Mubarak-era Prime Minister Ahmed Nazif’s retrial in a corruption case is scheduled for tomorrow.

Egypt is the guest of honor at the 3-5 February FRUIT LOGISTICA produce exhibition in Berlin. Agricultural exports expanded substantially in recent years to USD 2.1 bn, according to Chairman of the Agricultural Export Council Ali Issa.

The Cairo International Book Fair continues through 10 February at the Cairo International Convention Centre, Nasr City.

ON THE HORIZON

Former Mexican President Felipe Calderon will be in Cairo to speak at “A Commitment to Development: The Private Sector’s Role in Inclusive Growth,” joining Egyptian ministers Tarek Kabil, Ashraf Salman, Ghada Waly and Khaled Hanafy for the conference. The gathering is being organized by AmCham and the UNDP on Sunday, 7 February, at the Four Seasons Nile Plaza. Registration information is here and the conference agenda is here.

A CONTRARIAN VIEW

In a low-oil-price environment, fortune favours the brave (and the nimble)

Oil is likely to remain in the USD 20-40 band for the medium term — but it doesn’t have to be a disaster any more than it was in that sustained period between the 1990s and 2004, when the price averaged USD 18 per barrel. That enforced fiscal discipline and the pursuit of viable projects that offered solid returns to investors — a discipline that was lost amidst the rush to not be left behind in the bonanza when oil prices headed north.

Arshad Sufi is chairman of METAS Energy, which he founded after serving as president of BG Egypt and, before that, BG Oman and BG Nigeria. He calls on more than three decades of global experience in the global industry to write exclusively for Enterprise why he thinks significant opportunities will be created for smaller, more nimble players as major IOCs pivot and become more risk averse. Tap here to read the full piece.

LAST NIGHT’S TALK SHOWS

President Abdel Fattah El Sisi called Amr Adeeb and Rania Badawy on Al Qahera Al Youm to discuss the condition of the country in general. About ten minutes into the call, Adeeb intervened to ask about cartoonist Islam Gawish and Al Ahly Ultras, the latter having chanted against the president at a ceremony honoring the victims of the Port Said stadium massacre. “We have been unable to reach our youth, but we are trying,” said El Sisi, calling both Gawish and the Ultras his children. Al Masry Al Youm has more on the story, while you watch the call in Arabic on Youtube (running time: 24:05)

Ibrahim Eissa on Al Kahera Wal Nas hosted in his studio former Deputy Minister of Investment Nabil El Gedawy, where they discussed the tortuous path the now-infamous Investment Act has taken. El Gedawy spoke for many of us when he grumbled that the act has been amended at least seven times, and he had few kind words to say about how the various botched amendments have been handled, nor was he impressed with the efficacy of the law, which he states has not done anything to facilitate investment.

The main obstacle, to which he returned at multiple points throughout the interview, was that until all various government entities whose permissions are required for all stages of a project — especially the various entities involved in granting permissions for land rights — come together to clarify to investors what their requirements are, the law will not be effective, in his view. (Watch the interview in Arabic, running time: 28 minutes)

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SPEED ROUND

Egypt is planning to launch the Middle East’s first commodities trading exchange by the end of 2016, according to Supplies Minister Khaled Hanafi, Reuters reports. The plans to set up a global commodities exchange were first announced back in 2014, but few details were given at the time. The minister “told a news conference on Monday that the feasibility study for the exchange had been completed and the next step was to draw up the regulation and connect farmers with traders,” the newswire notes. Eight commodities in total will be traded, including six agricultural commodities as well as oil and gold, says Iman Mutlaq, the CEO of Sigma Investments, which is involved in setting up the exchange.

Egyptian investors are now allowed to buy and sell shares on the Nasdaq Dubai exchange through a newly created link with Misr for Central Clearing, Depository and Registry (MCDR), the stock market says. “The link between MCDR and Nasdaq Dubai is an important new step towards facilitating dual listings by issuers in both countries,” according to MCDR’s Managing Director. MCDR will act as settlement agent and custodian through its connection with Nasdaq Dubai’s central securities depositary to support the transfer of shares between Egypt and Dubai.

NBE sells USD 2.5 bn in three months to cover imports: NBE has opened letters of credit worth more than USD 2.5 bn to cover import payments in the last three months, Chairman Hisham Okasha tells Reuters. The newswire notes that “no comparative figures for letters of credit opened were immediately available as banks are not required to disclose them.” Okasha adds that NBE is also targeting to increase its deposit and loan portfolio by around 15% by the end of FY2015-16.

Egypt could avoid a sharp currency devaluation in 2016 if bilateral and multilateral aid pledges materialize on time, a report by Bank of America Merrill Lynch (BAML) said, according to Reuters. BAML believes “the authorities’ plan remains the same: muddle through due to import restrictions and external aid, hoping that foreign direct investment can pick up self-sustainably… However, the pledges obtained are not sufficient to boost FX reserves into a safer zone, and thus we continue to see pressure on the Egyptian pound playing out.”

LG will shut down its plant in Tenth of Ramadan city this week if it does not receive letters of credit from its banks, LG-Egypt Chairman Ashraf Hamdy tells Al Borsa. The company only received LCs to the tune USD 1.5 mn from 20 December until the end of January, while the company needs USD 28 mn per month to cover production inputs, which are languishing in Port Said customs. LG banks with NBE, Banque Misr, Banque du Caire and CIB, the story claims.

The government officially launched on Monday the New Egyptian Countryside Development Company, which will be the primary developer and manager of the 1.5 mn feddan project, Al Mal reports. The company will have issued capital of EGP 8 bn and will be run jointly by the Finance Ministry, the New Urban Communities Authority and the General Authority for Reconstruction Projects & Agricultural Development.

The central bank’s SME initiative would not “be so useful for early stage tech startups as most were cash-flow negative and debt financing would not be a good idea,” the famed Cairo-based angel investor Con O’Donnell tells Wamda’s Rachel Williamson. However, once the startups are cash-flow positive, this kind of financing will be welcome “as there is still a shortage of venture capital money,” he adds. Still, one entrepreneur says his company is “unlikely to seek debt funding from any Egyptian bank, given the onerous paperwork necessary.” More generally, O’Donnell raised another question around whether start-ups operating in Egypt but registered abroad would be eligible for funding, a question Williamson was unable to get an answer to.

The Federation of Egyptian Chambers of Commerce will appeal the Trade Ministry’s new import registry, says Ahmed Sheeha, head of the Importers Division of the Federation of Chambers of Commerce, Al Masry Al Youm reports. Ashraf Hilal, who heads the Federation’s Home Appliances Division, called the new registry unconstitutional and a violation of trade agreements. He adds that the Federation does not object to the customs hikes the president decreed on Sunday. The Egyptian Businessmen’s Association also held a meeting on the registry on Monday, with the head of its legislative committee Mahmoud Fahmy calling it unconstitutional. Fahmy was especially critical of the discretionary powers given to the Trade Minister to deny a company’s registration.

Prime Minister Sherif Ismail directed the government to draw up a comprehensive tourism development plan for the North Coast at Monday’s Cabinet Economic Group meeting. The Tourism Development Authority and Matrouh Governorate will take the lead on formulating the plan, which would turn Matrouh into a year-long tourist attraction. A number of housing and tourism projects in the governorate were approved, according to the cabinet spokesperson Hussam Qawish. Ismail also stated that the government’s program will be presented to the House of Representatives in the coming days at a separate gathering hosted at the National Women’s Council, Al Masry Al Youm reports.

MOVES- DEA Deutsche Erdoel has named Thomas Radwitz as general manager of the company’s Egyptian subsidiary. Radwitz succeeds Hans-Hermann Ecke, who had been general manager of DEA Egypt since March 2015.

EFG Hermes topped the Egyptian brokerage league tables for January with a 26.5% market share of executions, according to Al Borsa. Pharos jumped four positions to second place, with a 17.5%, HC Securities came in third (up 15 places) with a 15% share, followed by Beltone Financial at 9.3% and EAC Finance at 4.2%. CI Capital fell to sixth place after holding the second spot in December.

The Sawiris and Mansour families dominate Forbes’ list of Egyptian bn’aires for 2015. Nassef Sawiris is Egypt’s richest man, 225th globally, with a net worth estimated at USD 6.3 bn. He is followed by Mohamed Mansour at USD 4 bn, Naguib Sawiris at USD 3.1 b and Youssef Mansour at USD 2.9 bn. The only person not a Sawiris or Mansour on the Egyptian list is Mohamed Al Fayed, whose net worth is estimated at USD 2 bn. With USD 79.2 bn, Bill Gates is still the world’s richest man, followed by Carlos Slim Helu at USD 77.1 bn.

An Egyptian national has been identified as the second bomber in last Friday’s attack on a Shia mosque in Eastern Saudi Arabia, according to Saudi security officials, Al Arabiya reports. The suspect, Talha Abdu, had been residing in the kingdom for three years. Earlier reports have stated that the second suspect had been apprehended and is receiving treatment for his wounds.

The World Health Organization officially declared the Zika virus a global emergency due to its rapid spread and links to thousands of birth defects. The statement puts Zika in the same category of concern as Ebola, meaning research and aid will be fast-tracked to tackle the infection. The news comes as Reuters breaks news that Brazil’s top health official says the crisis there is “proving to be worse than believed because most cases show no symptoms.” CNN has background, while Vox breaks down what the WHO’s decision really means and the Guardian has its standard lecture for us all.

The omnipresent (There — on CNBC. Here, on Bloomberg. Oh, wait, it’s the FT…) Mohamed El-Erian has one of his better pieces in several months out this morning in the Financial Times, arguing that it makes little sense for oil and equities to have become so tightly correlated of late. “The questionable causality is amplified by the lack of differentiation. The equity market sell-off has been indiscriminate, encompassing even airlines and also retail names that serve segments of the population that disproportionately benefit from the fall in oil prices, including lower income consumers. Similarly, only gold has been spared the generalised decline in commodity prices. A better explanation of the correlation between oil and equities is that both are being influenced by three more general developments.” Those are: downward revisions in global growth forecasts (thank you, China); a lack of policy safety nets; and the sidelining of “countercyclical risk appetite of the broker-dealer community” thanks to over-regulation.

THE MACRO PICTURE

More bad news out of China. The country’s PMI fell to a three-year low of 49.4 in January, according to data from the National Bureau of Statistics. Oil’s recent rally faltered after the release and data showing OPEC pumped a record amount of crude last month, according to Bloomberg.

Europe isn’t faring much better. In its monthly manufacturing report (pdf), Markit Economics said price pressures “remained on the downside” in the euro area. The headline PMI fell to 52.3 from 53.2, while the U.K. manufacturing PMI rose to a three-month high of 52.9 in January.

But the news isn’t all bad. A sustained price plunge “will push back USD 3 tn a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history,” according to a new note from Francisco Blanch at Bank of America Merrill Lynch, reports Bloomberg. For emerging markets:  “The low oil price is encouraging Chinese consumers to buy increasingly larger cars. Sales of SUVs, the heaviest passenger vehicles category, are up 60 percent year-on-year in the last three months, while overall passenger vehicle sales are growing robustly at 22 percent.”

EGYPT IN THE NEWS

Another movie that won’t see the light of day in Egypt: Journalist Mohamed Fahmy’s memoir “The Marriott Cell,” about his arrest with two other Al Jazeera English reporters in December 2013 and the over 400-day incarceration that followed, is being developed into a film adapted by Michael Bronner — a former 60 Minutes journalist and co-producer on Paul Greengrass’ Green Zone, Captain Phillips and United 93. The film is being put out by the Development Partnership and Egyptian actor Amr Waked. “Fahmy’s internationally controversial imprisonment gave him unusual access to leading jihadists and insight into what’s happening in the region,” said Louise Dennys, executive publisher at Penguin Random House Canada, who acquired world rights to the book.

Other stories making the rounds this morning that might be worth your attention:

• The WSJ nails it on the head in “Egypt Suffers From Shortage of USD”
• Bloomberg’s Ahmed Feteha reports that “Egypt’s Tourism Collapse Stretches From the Pyramids to the Beach”

Making the rounds in the international media yesterday were reports of three Coptic Christian students facing charges of insulting Islam and standing trial this week after appearing in a video mocking Muslim prayers, according to the AP and picked up by The Washington Post. The high-school students will stand trial on Thursday after their teacher, who filmed the video, was sentenced to three years in prison on the same charges, according to lawyer Maher Naguib.

Meanwhile, Vox has a look at what it’s calling “Egypt’s decades-long war on college kids” — we’ll give it a “B+” for story selection, but a “C” for speaking with exactly zero Egyptians — and for its full reliance on standard English-language sources including the New York Times, Human Rights Watch, and the Carnegie Endowment.

WORTH READING

Atena Farghadani is simply the first, but certainly not the last casualty of Iran’s goal to double its population through the systematic repression of its women: The story of jailed 28-year old Iranian artist Atena Farghadani exposed an otherwise-unaware world to a planned feat of social engineering in Iran whose ambition is only matched by its malevolence.

Encouraged by the interest we received in yesterday’s issue of our highlighting Farghadani’s 12-year prison sentence over her drawing of this cartoon depicting the Iranian legislature as animals, we’ve taken another look both at her story and at the legislation she was critiquing, and the results are disturbing, to say the least. Setting aside that Farghadani was subjected to a an invasive test for the indecent “crime” of shaking her male lawyer’s hand, her larger struggle to expose the quiet dismantling of all the gains Iran’s women made through the country’s family planning program is a tragedy of an individual being destroyed by the system.

Tap here to read the full story, including how a doubling of its population is a key element of Iran’s geopolitical strategy to establish regional dominance.

IMAGE OF THE DAY

Recent photograph of Italian student gone missing in Cairo: The following is a recent photograph of 28-year old Italian national and Cambridge UK PhD student Giulio Regeni, who went missing in Cairo on 25 January 2016. He was last known location was El Behoos metro station where he was heading to Medan Bab el Louq around 8 pm. The authorities have reportedly denied that they have detained him. (View image, via Cambridge University)

WORTH WATCHING

City of the Living Dead: Someone finally picked up on the realization that a day in Cairo is virtually indistinguishable from that of a zombie film, Shaun of the Dead in particular. The following video made the rounds yesterday on social media. (Watch: A Typical Day in Egypt, Arabic, running time: 2:35)

DIPLOMACY + FOREIGN TRADE
A delegation of 23 business representatives headed by Czech Foreign Minister Lubomír Zaorálek are in Cairo this week to discuss deepening economic ties between the two nations, according to an Ittihadiya statement. President Abdel Fattah El Sisi met with Zaorálek to discuss bilateral trade and promoting tourism from the Czech Republic. Zaorálek stated that the Czech minister of trade would head a delegation to Egypt to hold the Joint Commission on the Economic and Technical Cooperation to discuss ways to launch new projects, particularly in the Suez Canal Development Area project.

Egypt is back on the Australian government’s foreign investment plans after completing its transitional process and political road map, said Senior Australian Trade Commissioner Mark Morley. He adds that Australia had suspended its Egypt investment plans for four years pending the process. Morley goes on to say that while Australian companies are keen to invest in the agriculture sector, Australian mining companies have been reluctant to invest in Egypt due to the Mineral Resources Act, which they view as an obstacle.

ENERGY

Central bank opens USD 400 mn trade finance facility for EGPC to import fuel
The CBE is providing the Egyptian General Petroleum Corporation with a USD 400 mn letter of credit line for fuel imports in 1Q2016. The CBE is unable to provide more funds without impacting the foreign reserve level, so  EGPC will have to source extra foreign currencies elsewhere, a source tells Al Borsa. EGPC needs USD 700 mn a month to finance fuel imports, adds the source. (Read in Arabic)

USD 56 bn in investment opportunities in the energy sector over five years, Abu Bakr says
Energy projects worth USD 56 bn are slated for the next five years, says Head of the Chamber of Petroleum Industries at the Federation of Egyptian Industries Tamer Abu Bakr. The projects are divided up into USD 25 bn for the development of existing fields, USD 12 bn for exploration, USD 6 bn for transmission grids and USD 4 bn to upgrade power stations to the compound cycle system. (Read in Arabic)

RGS Energy wants to develop a manufacturing facility serving solar industry
RGS Energy is currently negotiating with the Industrial Development Authority for land on which to establish an EGP 125 mn facility to produce components for the solar industry, Al Borsa reports. The first phase of the project will see the establishment of a EGP 50 mn solar heater assembly plant producing 1,000 heaters a month, while the second phase will include building a EGP 75 mn power-plant-component facility with three production lines. The company has reached a preliminary financing agreement with Banque Misr and plans to offer up to 49% of its stock to outside investors. (Read in Arabic)

Siemens new capital city power plant clears Environment Ministry red tape
The Environment Ministry has signed off on the Siemens 4.8 GW power plant in the new administrative capital, clearing another layer of red tape before construction begins. One of the conditions for approval was to meet environmental standards on waste disposal during the construction. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

Poultry imports from France banned, wheat ergot discussed with ambassador
The Agriculture Ministry is banning imports of poultry from France on avian influenza fears, Al Borsa reports. The Agriculture Minister met with France’s ambassador to Egypt to discuss the issue along with Egypt’s refusal to accept a wheat cargo that contained ergot. The minister also told the ambassador that the ministry’s role is just to analyze the shipment and that accepting it or not is the domain of the Supply Ministry. (Read in Arabic)

MANUFACTURING

2 mn sqm allocated for Russian industrial zone in East Gulf of Suez, says Darwish
Egypt has agreed to allocate 2 mn sqm in East Port Said to build the Russian industrial zone over the coming period, says Head of the Suez Canal Economic Zone Authority Ahmed Darwish. Agreements will be signed with the Russians today, and they can commence development immediately, he adds. (Read in Arabic)

Egyptian Steel inaugurates EGP 4 bn factory in Beni Suef in May
The Egyptian Steel Group will inaugurate a new EGP 4 bn factory in Beni Suef in May, says company Chairman Ahmed Abou Hashima. The factory follows clean energy standards and is environmentally compliant, he adds. Egyptian Steel aims to reach a production capacity of 2 mn tons by the end of this year and to build a similar factory in Ain El Sokhna in the coming period. (Read in Arabic)

HEALTH + EDUCATION

State to cover cost of treatment for the poor under Health Insurance Act –PM
The new Health Insurance Act ensures that the state will cover the cost of treatment for the poorest segments of society, Prime Minister Sherif Ismail said during a meeting with the ministerial workforce tasked with completing the act. The current legislation is over 50 years old and does not line up with developments in the field, Ismail adds. (Read in Arabic)

Health Ministry launches program to treat 10,000 pharmacists without charge
The Health Ministry and the Pharmacist Syndicate launched a program to treat Syndicate members who have contracted hepatitis C without charge on Monday, Al Borsa reports. The program will cost EGP 24 mn to treat 10,000 afflicted pharmacists. Health Minister Ahmed Rady called on the program to be expanded to cover other unions. (Read in Arabic)

REAL ESTATE + HOUSING

New Sohag Authority tenders three areas for development next month
The New Sohag City Authority is issuing a tender for the development of three neighborhoods at a total cost of EGP 60 mn next month, says authority head Mostafa Wahba. The developments include maintenance and renovations of buildings and infrastructure grids, as well as landscaping an area of 15,000 sqm, he adds. The expected duration of the project is two years. (Read in Arabic)

Social Housing Fund receives loans worth EGP 3 bn
The Social Housing Fund will receive four syndicated loans worth EGP 3 bn from National Bank of Egypt, Banque Misr, Banque du Caire and the Housing and Development Bank. The loans, which were signed for by Housing Minister Mustafa Madbouly, will go into shoring up liquidity and speeding up the development of social housing to where 150k homes will be completed this year. The project, which received funding from the World Bank, according to Madbouly, is already costing the state EGP 500-600 mn per month. This is expected to grow to EGP 1 bn, says Assistant Housing Minister Khaled Abbas. (Read in Arabic)

TOURISM

Egypt hotel occupancy up 4.2% at the end of 2015, but 460 hotels shut down nationwide
Egypt recorded a 4.2% increase in occupancy to 53.7%, an 18.9% growth in average daily room rates to EGP 616.46, while revenue per available room was up 23.9% to EGP 331.16 on a full-year 2015 basis, according to data from STR Global. However, 460 hotels have been shut down across tourism resorts nationwide since the Metrojet crash and the subsequent decline in tourism and travel bans, reports Al Borsa, which cited reports from a number of tourism investors. 230 hotels in Luxor and Aswan were shuttered, while 130 hotels have shut down in South Sinai and around 100 hotels in the Red Sea governorate. Tourism Minister Hisham Zaazou had estimated that the tourism sector had incurred losses of up to EGP 6 bn over the three months since the crash. However, Zaazou  expects tourism to pick up in March if the travel bans are lifted.

Etihad Airways increases Abu Dhabi-Cairo flights to four a day
Etihad Airways is adding an extra daily flight connecting Abu Dhabi and Cairo effective 27 March 2016. This brings up the daily flights between the two cities to four. More flights provide greater options for expatriates travelling back to Egypt, according to the press release, with over 2 mn passengers flying the Abu Dhabi-Cairo route since its launch in 2004. (Read)

AUTOMOTIVE + TRANSPORTATION

House Transportation Committee rejects plans to raise the price of metro tickets
The House Transportation Committee rejected the Transport Ministry’s decision to raise the price of a ticket to ride the Cairo Metro to compensate for the metro’s dwindling revenues, says the committee head Hassan El Sayed. The committee is forming a sub-committee to look into the metro’s poor financial performance, he adds. (Read in Arabic)

BANKING + FINANCE

NBE studies arranging EGP 15 bn in syndicated loans to three sectors
NBE is studying arranging EGP 15 bn in syndicated loans in the coming period, sources from the bank tell Al Borsa. The loans will be directed to the energy, petroleum and real estate sectors, according to the sources. NBE is currently reviewing the project feasibility studies along with several other potentially interested banks. The bank arranged EGP 65 bn in loans in 2015. (Read in Arabic)

Bank Audi Egypt to expand loan portfolio to include SMEs, other sectors
Bank Audi Egypt is considering large funding opportunities with a total value of over EGP 11 bn in various sectors, including SMEs, throughout 2016, according to Vice Chairman and Managing Director Mohamed Abbas Fayed. Part of the funding will be provided by Bank Audi Egypt and the rest through loans the bank arranges in cooperation with other banks. Its loan portfolio increased 47% to EGP 18.5 bn from EGEP 12.6 bn in 2014, with loans to SMEs jumping 76% to EGP 1bn at the end of 2015. (Read)

LEGISLATION + POLICY

El Zend and Council of State in public dispute over legislation on defense witnesses
Justice Minister Ahmed El Zend and the Egyptian Council of State (Maglis El Dowla) have been locked in a war of words over the council saying that El Zend’s legislation allowing judges to deny defendants from calling witnesses to testify on their behalf violates a defendant’s rights. El Zend snapped back that the council’s comments would interfere with ongoing judicial procedures, prompting the council to strike back. The legislation was first drafted last March and amended by El Zend in December, according to Al Shorouk.

EGYPT POLITICS + ECONOMICS

Currency exchanges pledge to halt speculation
Currency exchanges promised to abide by the CBE’s exchange regulations and stop speculating, according to Head of the FX Exchanges Division of the Chambers of Commerce Mohamed El Abyad. Speculation has been driving fluctuation in the parallel market exchange rate, which hit EGP 8.7 to buy and EGP 8.75 to sell yesterday. (Read in Arabic)

Prices to rise 10% due to tariff increases say traders, FEI rejects the claim
The custom and tariff increases on nearly 500 products will cause their prices to rise over 10%, traders and importers tell Al Mal. The recent economic policies have caused an increase in commodity prices of up to 50%, says Head of the Importers Division at the Cairo Chamber of Commerce Ahmed Shiha. As we reported yesterday, traders and importers will file an official memo to the presidency asking for the economic policies to be revised. Mohamed El Sewedy, head of the Federation of Egyptian Industries, rejects the assessment, saying the high level of competition between local manufacturers will keep prices low, AMAY reports. He adds that the industrial sector is looking to increase demand and will not risk this by raising prices on goods.

1.5 mn feddan project to fall under Investment Act
The 1.5 mn feddan project is classified as an investment zone and will fall under the jurisdiction of the Investment Act, says Irrigation Minister Hossam Moghazy. The Egyptian Council of State has finished reviewing the contracts for the project but is holding off on approving them until a board of trustees for the project’s holding company is formed, he adds. The project will also include a youth land distribution initiative that would grant young people at least 5 feddans of land. Shares in plots of land will be issued to maintain ownership within the community, Moghazy says. (Read in Arabic)

Proposal to issue a 6% stamp tax on advertising
The government is considering amending the Stamp Tax Act to set a 6% stamp tax on advertising, according to proposed amendments published on Al Borsa. (Read in Arabic)

NATIONAL SECURITY

Egypt amends Control Risks airport contract for national security purposes
Egypt has amended some of the terms of the contract with Control Risks to assess Egyptian airport security, Tourism Minister Hisham Zaazou tells Al Mal. The amendments allow for a confidentiality clause that could bar Control Risks from obtaining some information that the state deems confidential. It also allows Egypt veto any individual Control Risks staff member’s appointment to the project. The contract will be reviewed by the State Council (Maglis El Dowla) before approval. (Read in Arabic)

ON YOUR WAY OUT

Cartoonist Islam Gawish has been released from detention after the public decried the trumped up charges he was arrested for, Ahram Online reports. “The prosecution determined that Gawish had no ties with news website Egypt News Network (ENN), and that his relation to the company was only technical.” Islam was arrested on Sunday for running an unlicensed website, but his lawyer said the reality was that government was less than thrilled his anti-regime cartoons.

Money well spent? The government’s contract with e-Finance to implement the fuel product smart card system expires in April, e-Finance’s Chairman tells Al Mal. The system has not been implemented fully yet. e-Finance believes the government does not intend to terminate or extend the contract yet. The three-year agreement with the government began in April 2013.

International Cooperation Minister Sahar Nasr insists the World Bank loans are not conditional in a call-in to CBC Extra’s “Ghorfat Al Akhbar”. The government’s reform plan had been in place before she promoted it to international finance institutions, who approved their development loans based on the plan, says Nasr.