Investment law to be finalized by Wednesday. El-Sisi in KSA today. CBE leaves interest rates unchanged. UAE’s Eagle Hills to build USD 80 bn city in Egypt? Coke to invest USD 500 mn over three years.

WHAT WE’RE TRACKING TODAY

President Abdelfattah El Sisi is set to arrive in Saudi Arabia on an official state visit with King Salman bin Abdel Aziz. Dina Ezzat of Ahram Online has a breakdown of the key issues under consideration. Interestingly, Erdogan is expected to be in Saudi Arabia at the same time. (Read)

WHAT WE’RE TRACKING THIS WEEK

The EFG Hermes One on One 2015, the region’s largest MENA-focused investor conference, gets underway on Monday at Atlantis The Palm, Dubai, tomorrow. View the official website here.

The African Ministerial Conference on the Environment (AMCEN) begins in Cairo on Monday and runs through Friday.

HSBC’s Egypt PMI will be released on Tuesday 3 March at 7:30 am Cairo local time, 5:30 GMT. Given the press embargo, Enterprise will pick up its results the following day on Wednesday. You can download the pdf when it drops here.

WHAT WE’RE TRACKING THIS MONTH

The Egypt Economic Development Conference in Sharm El-Sheikh is now just two weeks away, running 13-15 March (Friday-Sunday). Visit the official website here. Among the business leaders with video testimonials now running on the site:

• Abdalla El-Nockrashy, Egypt Country Head, Majid Al Futtaim Properties – Egypt
• Ahmed Shehab, Director & Country Head, Deutsche Bank
• Andrew Long, Deputy Chairman & CEO, HSBC
• Curt Ferguson, President, Middle East & North Africa Business Unit, Coca-Cola Egypt – Atlantic Industries
• Mark Fenton, General Manager, Dana Gas Egypt
• Nadir Shaikh, Managing Director, Citi Country Officer, Citibank

LAST NIGHT’S TALK SHOWS

Last night’s talk shows mainly focused on President Abdelfattah El Sisi’s upcoming visit to Saudi Arabia and the interviews he gave to Al Arabiya and Al Sharq Al Awsat to pave the way (see below for a Spotlight on the two interviews.)

Amr Adeeb first addressed the issue of any potential reconciliation between the Egyptian state and the Muslim Brotherhood.

“Let us know if you plan on a reconciliation, so we can leave the country. I’ll go live elsewhere … We tried having one of them [the Ikhwan] as our president — the man was illiterate … You forget. We need a hashtag called #فاكرين_الاخوان [#RemembertheIkhwan].”

Shortly afterward, the internet complied, and the hashtag quickly became the second-highest trending hashtag in Egypt as the broadcast continued. As his producers alerted him to this, Adeeb switched to screenshots of tweets, reading them aloud. This continued for some time, with Adeeb reading tweets, then laughing to himself. “Remember that? Remember when they said President El Sisi was dead and his doppelganger is actually in charge?  Did you forget? Morsi was a national embarrassment. Did you forget when the Shia were killed [referring to an incident where incitement from a Salafi preacher led to several Egyptian Shia villagers being beaten to death]. Remember when the Brotherhood threatened to set Egypt on fire if Morsi didn’t win the presidential elections? Do you remember when Morsi checked his watch?” [During his joint press conference with German Chancellor Angela Merkel, to see if he had time to answer questions] “It was time for him to go home and eat duck … They used to bring their kids to parliament. Hamada would be running up and down the aisles. This needs to be a book. I’m going to write a book.”

Youssef El Hossieny on ONTV also reminded viewers of the Ikhwan’s year in power, in reference to the possibility of the state’s reconciliation with the group. He then switched gears to attack Yasser El Borhamy, one of the founders of the Salafi Call, the religious arm of the Nour Party. Borhamy has recently been allowed back into preaching at mosques following a ban on non-Azhari graduates preaching. The settlement between the salafists and the Endowments Ministry includes the understanding that the salafis will not engage in political discourse in the mosques.

Hosseiny ridiculed Borhamy, calling him a movie villain, and condemning his shifting positions on politics and democracy as signs of his hypocrisy. Holding up his thumb and index finger, Hosseiny said “All terrorists start out as little salafis. That’s not to mean that all salafis become terrorists, but all terrorists first get their start as little salafis. And to each little salafi comes a little Yasser Borhamy.”

Lamees El Hadidy on CBC Egypt started out her program by noting that March is an important month in terms of high-level meetings, citing the investment summit on 13 March as well as the meeting of the Arab League in Cairo. Following excerpts from President El Sisi’s interviews with Al Arabiya and Asharq Al Awsat, the most notable segment on her program was a call-in from Naguib Sawiris.

Sawiris revealed he is in final negotiations with the Ministry of Electricity and Renewable Energy to invest in a solar power plant worth nearly EGP 1 bn. He also noted ongoing studies to invest in water transportation to minimize energy and environmental costs as well. Youm7 reported on Sawiris’ call-in to the show. (Read in Arabic)

Sawiris also stated that he hopes that investment summit will provide a signal on the final tranches of aid to come from the Gulf, stating that Egypt would need USD 10-20 bn to have breathing room. The segment featuring Sawiris may be viewed here in Arabic, running time: 8:58.

SPEED ROUND

Investment law to be finalized at Wednesday’s cabinet meeting? Transitional Justice Minister Ibrahim El-Heneidy confirmed yesterday that the new unified investment law could be approved by Cabinet as its meeting this coming Wednesday. At issue, it seems: Do the tax incentives now in the law belong there or in the tax code. Speaking with parliamentary reporters yesterday, El-Heneidy said he was assembling an ad hoc committee with members from the finance, trade, transitional justice and trade and industry ministries as well as the State Council (Maglis El-Dowla) to review the law and answer that question, Al-Masry Al-Youm reports. A second piece in the same newspaper quotes Investment Minister Ashraf Salman as saying he has no particular issue with the investment law as it now stands, but does object to the extensive detailing of provisions for the one-stop investment shop. Interestingly, the piece also claims that Salman objects to tax breaks in the proposed legislation, a claim that runs counter to much of what we had been hearing.

As expected, the Central Bank of Egypt’s Monetary Policy Committee kept interest rates unchanged, with the overnight deposit rate at 8.75%, overnight lending at 9.75%, and the discount rate unchanged at 9.25%. The CBE attributed a month-on-month rise in inflation in January to “administered price adjustments and supply bottlenecks related to the distribution of butane cylinders.” The MPC noted it believes the key CBE rates are “currently appropriate given the balance of risks surrounding the inflation and GDP outlooks.” Ahram Online quotes EFG Hermes Research’s Mohamed Abu Basha as noting that “Interest rates on the pound needed to remain attractive, as part of the central bank’s efforts to eliminate the black market.” Reuters adds that, “while another rate cut could boost investor confidence ahead of an economic summit next month and lend some momentum to a nascent recovery, tackling inflation remains the bank’s main priority.” The CBE cut interest rates by 50 bps in January, having earlier held rates stable since July 2014; the next meeting of the MPC is scheduled for Thursday, 23 April. (Read the CBE press release in pdf or check coverage from Reuters and Ahram Online)

Associate editor of the Washington Post David Ignatius put out an opinion piece on Egypt last Thursday,praising the Obama administration’s decision to re-engage with Egypt on an economic and military level. The piece is notable, however, for an almost casual throwaway in the middle where Ignatius asserts that U.S. Secretary of State John Kerry will be attending the upcoming investment summit later this month in Sharm. (Read)

Egypt’s economy is heading towards its strongest growth rates since 2011, Planning Minister Ashraf El Arabi told Bloomberg. The economy grew by 4.5% in first half of the current state fiscal year, El Arabi said. He also talked about the investment conference in Sharm noting that Egypt needs USD 60 bn in FDI over the next four year and the said the government wants “showcase the reforms undertaken and opportunities available” and wants to put Egypt “back on the investment grid.”

The UAE’s Eagle Hills said to build USD 80 bn city in Egypt -Sources: While the idea of building a new administrative capital for Egypt has been floated for years, and has recently re-emerged in the media,Bloomberg is reporting slightly more detailed news, albeit relying on unnamed sources and omitting any reference to the proposed development serving as an administrative city. Reports on Thursday suggested that a UAE-based developer had been attached to the project, and Bloomberg cites two sources as saying it is Eagle Hills, a UAE-based Emaar’s Mohamed Alabbar among its board members and which shares some branding in common with Emaar. The project cost is estimated between USD 75 to USD 80 bn over 12 years, according to the Minister of Investment Ashraf Salman in an interview with Bloomberg on Thursday. (You can also check out the National for background on Eagle Hills, including the note that Alabbar “is pressing ahead with plans to revive an Abu Dhabi-backed development push into North Africa and the Levant through the private property company Eagle Hills.”)

The military could help build an industrial hub around the Suez Canal, said Mohab Mamish, the head of the Suez Canal Authority, in an interview with Reuters. “I hope there will be a role for the army in infrastructure and securing the project because this struggle needs the armed forces’ experience,” Mamish told Reuters before adding that “the army are the best people that carry out roads and power and water works.” Regarding the Suez Canal itself, Mamish wants to “provide not only fuel but also services such as drinking water, food, petroleum products and speedy maintenance.”

Alhokair and NUCA in dispute over Mall of Arabia land — again. Government sources told Al Borsathat the dispute between Alhokair and NUCA over Mall of Arabia land, which we reported was the subject of an EGP 268 mn settlement agreement, is back on, with the New Urban Communities Authority reportedly withdrawing a 60-feddan plot of land on which Alhokair had planned to build the second phase of the mall. Sources tell Al-Borsa that Alhokair has halted settlement payments, while NUCA is convinced Alhokair has breached the covenants of the settlement.

Egypt designates Hamas as a terrorist organization: The Cairo Court for Urgent Matters designated Hamas as a terrorist organization in a ruling yesterday, following a similar designation of Hamas’ military wing, Al-Qassam Brigades, last month by the same court. (Read)

Egypt could raise USD 2 bn in Eurobond issue: “I am getting advice on between USD 1.5-2 bn — we will see [what] our roadshow will reveal and then we will decide, but I think it will be in that region,” said Finance Minister Hany Kadry Dimian in an interview with Reuters. The bond would be launched by June at the latest, likely to be offered in varying maturities of 3, 5 and 7 years. This follows similar remarks made a month ago, when the figure for the bond was put at USD 1.5 bn. (Read)

Six explosions killed one person and injured at least nine others in Giza on Thursday morning, with the relatively new militant group ‘the Popular Resistance Movement’ claiming responsibility. Four mobile shops were targeted by bombs — three owned by Vodafone and one by Etisalat. Two other bombs went off near a police station. (Read in the NYT or in Reuters) Meanwhile, a car bomb in the seventh district of 6 October City apparently targeted an office of the Free Egyptians Party. Nobody was injured in the attack, Al-Masry Al-Youm reports.

President El Sisi approved a USD 39 mn aid agreement from the US government to promote investment in Egypt and increase economic competitiveness, according to Al Shorouk.

Authorities arrested at least 3 men on Thursday who were involved with the prolonged public killing of a dog, the video of which became widely watched. The dog’s owner called in to a TV talk show last week to explain that he had turned his dog over to the men in return for their agreement not to pursue charges regarding the dog having bit eight people during a recent dispute between neighbors. (Read)

A court has dismissed Ahmed Ezz’ appeal against being excluded from running in upcoming parliamentary elections due to incomplete paperwork, leaving many to hope he will gracefully settle into the background, deep within the inner recesses of a monastery in Tibet for a lifetime of self-reflection. (Read)

President El-Sisi is quoted by Al Arabiya as saying that he will seek a presidential pardon for the jailed Al Jazeera journalists once the trial is complete, as reported by Daily News Egypt. (Read)

U.S. Senator John McCain lashed out at Egypt last Friday over imprisoned activists, as well as the protest law and the newly passed anti-terrorism bill. (Read)

On Thursday the Washington Post broke the news that they had discovered the identity of the British-accented Daesh executioner appearing in several of the groups videos referred to by hostages as‘Jihadi John.’ The Post revealed his identity to be British-raised Kuwaiti Mohammed Emwazi, a computer science graduate from an affluent background. (Read)

French authorities have arrested an Al Jazeera journalist for flying a drone in Paris without a license, as reported by the BBC. Other drones have been spotted in Paris last week over tourist and diplomatic sights, although the incident with the Al Jazeera journalist is thought to be unrelated. (Read)

Footage emerged on Thursday that shows Daesh militants destroying priceless artifacts in Mosul Museum. (Read, with embedded video)

Meanwhile, the United States reneged on its statement that it will launch a US-Iraqi strike to re-take Mosul, which was set to start in April or May. The offensive has been postponed indefinitely until such a time that the Iraqi forces are deemed ready by the United States. (Read)

The EU Commission has approved proposals to create a single European energy market. The initiative is designed in part to help reduce Europe’s dependence on Russia for natural gas, hoping to diversify supply. The proposal still needs to be passed by the European Parliament and member states, a number of which are expected to resist the plans. (Read)

The European Bank for Reconstruction and Development (EBRD) and the Social Fund for Development (SFD) organized a “Supporting Women in Business” forum where gender issues and small business experts discussed the challenges and opportunities that arise for women-led SMEs. SFD chief Soha Solimanpraised the EBRD’s support to Egypt and noted that it has invested over USD 800 mn over the past three years. Read the ERBD release here.

The UK government could give its approval on LetterOne’s deal to acquire Dea, the oil and natural-gas arm of RWE AG, according to the Wall Street Journal. Dea produces 100,000 barrels of oil equivalent a day from fields in the North Sea, Egypt, Norway, Denmark, and Germany.

Is China waking up to its growth problem? The People’s Bank of China cut interest rates for the second time in four months, the WSJ reports.

Warren Buffett’s “golden anniversary” letter to shareholders is out (in pdf, and with no design, as usual) and what you see in the 38-page document (well, 43 when you include Charlie Munger’s addendum) is a function of your views on business. Try:

• Warren Buffett rails against investment bankers (NY Times)
• Warren Buffett vows never to spin off Berkshire Hathaway subsidiaries (FT)
• Berkshire Hathaway’s Vice Chairman Offers Hint of Warren Buffett Successor (WSJ)

INTERVIEWS WITH THE PRESIDENT AHEAD OF SAUDI VISIT

President Abdelfattah El Sisi sat for two interviews with Saudi-affiliated media ahead of his state visit to Saudi Arabia tomorrow. Asharq Al Awsat conducted a length interview with the President, with the English version of the interview carrying the title: ‘Sisi: If Egypt falls, so does the Middle East.’ The following exchange prompted a number of figures of the Egyptian media to comment, as noted in our talk show reviews above.

“Q: Following the June 30 revolution and the outlawing of the Muslim Brotherhood, how do you view the group today? Will we ever see the Muslim Brotherhood return to the Egyptian political scene again?

This is a question for the Egyptian people and public opinion. Whatever the Egyptian people accept and approve, I will implement immediately.

Q: What can you tell us about Egypt’s reconciliation with Qatar? Is this a full reconciliation? Is there anything left to settle?

Let me ask you: Have you ever heard any official statement from us insulting either Qatar or Turkey? Certainly, you will not find a single negative statement on our part.

Q: So, nothing remains to be implemented regarding Egyptian-Qatari reconciliation?

We were, and remain, committed to the Riyadh Agreement. This is out of our appreciation to Saudi Arabia and its important role in the Arab world.

Q: So, what do you want from Qatar?

What do we want or what do they want? We don’t want anything [from Qatar]. There is the will of the people [in support of the June 30 revolution] and we want everybody to understand this, and not underestimate or ignore what the Egyptian people want. The question that must be asked is: Who benefits from supporting the collapse of Egypt? Everybody knows that if Egypt falls, God forbid, then the region will enter into a conflict that will last no less than 50 years.” (Read a condensed version of the interview in English and the complete interview in Arabic)

President El Sisi’s interview with Al Arabiya also aired yesterday, with nearly identical if not identical questions and answers. Part of that interview is available to watch in Arabic here, running time: 15:32.

WORTH READING

In light of the recent wave of bombings, not only those of last Thursday but the previous attacks on the branches of KFC as well as Emirates NBD, journalists are slowly becoming more aware of a newer threat to emerge on the Egyptian political scene, as previously mentioned both in regional media outlet The National as well as in the studies and public appearances of a number of notable Egyptian analysts, including but not limited to Samuel Tadros and Mokhtar Awad — the ideological marriage of radical socialism and radical Islamism. One of the earliest incarnations of this virulent strain of political ideology first coalesced around the Islamist party Watan, whose platform was organized rejecting any form of perceived Western imperialism, including the non-Islamic as well as capitalism.

Over the weekend, both the New York Times and FP ran profiles of Shahid King Bolsen, an American convert to Islam based in Turkey (where else?) who was previously convicted of manslaughter in the murder of a Jewish man in the UAE, and who has since reinvented himself as an “analyst” who incites for Islamists in Egypt to attack commercial interests seen as helping prop up the system. From the NYT piece: “There is a desperation to express anger and hit back at the current regime that is captured by one of the slogans he has popularized — ‘Your business, our blood’ — and it is symptomatic of the level of desperation that this almost absurd figure is able to seize on that opportunity,” Mr. Awad said. “And it shows this creeping move away from aiming the violence only at the police and military side and toward civilian targets.”
…
“The idea is disruption without bloodshed,” Mr. Bolsen said. “I condemn the loss of life and the use of violence against people,” he said. But, he added, if a few lives are lost to help prevent needless deaths at the hands of security forces, “sometimes it is a price to be paid.” (Read Online, American Helps Fuel Attacks in Egypt)

Another must-read look at the latest madman to inspire Egyptian Islamists is Mokhtar Awad and Samuel Tadros’ profile in the FP: ‘Allah Versus KFC‘

Coverage of Shahid King Bolsen has started to appear in Arabic media as well, such as this brief piece in Akhbarak (Read in Arabic)

Meanwhile: CNBC digs deep to find who’s behind the Nicaragua Grand Canal and why the Hong Kong Nicaragua Canal Development Investment is willing to spend USD 50 bn to develop itdespite, according to one academic, having the volume of the shipping industry not conducive to this type of investment currently.

The labor market outcomes of Israeli Arabs, who are mostly Muslim, are negative in terms of participation, employment, and wages. Two researchers estimate the causes behind this and present policy solutions that could yield an internal rate of return on the fiscal investment in promoting Arab women’s employment, by at least 7% per annum.

WORTH WATCHING

Yearbook. Produced by The New Yorker and winner of the Short Film Jury Prize at Sundance 2014, Yearbook tells the story of a man hired to write the history of human existence before its destruction. (Watch, running time: 5:40)

WHAT YOU CLICKED ON LAST WEEK

The five most-clicked links in Enterprise for the week of 22 February were:

• Egypt sees the dawn of the new colours of Saudi foreign policy? (Ahram Online)
• EFG Hermes chief Awad confirms two IPOs for March execution, eyes leasing market (Read in Arabic inAl Borsa)
• Middle East Congress 2015 speakers (The Telegraph)
• Qatar’s Ties to Militants Strain Alliance (WSJ)
• Egyptians attempt to call in to Khaled Salah’s program on Al Nahar to speak to Ahmed Ezz (Watch in Arabic, running time: 3:23)

EGYPT IN THE NEWS

International coverage on Egypt last evening and early this morning was focused on an Egyptian court’s decision to designate Hamas as a terrorist organization.

‘Four years after Egypt uprising, patronage politics dominate again’: Reuters has an in-depth look at the business backgrounds of a number of parliamentary candidates, although the piece’s heavy focus on Ezz makes it already dated. (Read)

‘Egypt Should Send Canadian Journalist Mohamed Fahmy Home’: Amal Clooney calls on Egypt to release her client Al Jazeera journalist Mohamed Fahmy, although again, President El Sisi’s assurance, as noted above, that he will seek a presidential pardon for the journalists once the trial is complete also makes this piece dated as well. (Read)

‘U.S. businesses are helping to lift the Egyptian economy’: Egyptian Ambassador to the United States Mohamed Tawfik writes in The Hill, calling on U.S. businesses to invest in Egypt. (Read)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Government allocates land for coal-fired power stations
Al Borsa | 26 Feb 2015
The Ministry of Electricity obtained approvals necessary to allocate land for coal-fired power stations at four different locations. The power stations will have a total production capacity of 5,000MW and will be located by the Red Sea. The companies that have applied for permits to build the power stations will are currently finalizing their feasibility assessments and will abide by the standards set by the World Bank, Al Borsa reports. (Read in Arabic)

EGEMAC to build two transformer units in Qena and Aswan
Al Mal | 26 Feb 2015
EGEMAC was awarded an EGP 80 mn contract to build two transformer units. The transformer units will be added in Qena and Aswan and are part of the government’s drive to increase the national grid’s capacity to 30 GW from 27 GW. (Read in Arabic)

OIL & GAS

IOCs targeting USD 6 bn in investments in FY2015/16 –EGPC
Daily News Egypt | 25 Feb 2015
International oil companies are targeting investments of around USD 6 bn in FY2015/16, according to Tarek El Molla, the head of EGPC. The investments will come through increased exploration and production activities, El Molla said. He added that EGPC began taking active steps to encourage E&P activities in steps including offering global bids and signing agreements. (Read)

EGAS considers adding second FSRU in Sokhna, excludes Al Adabiya and Port Said
Al Borsa | 25 Feb 2015
EGAS’ Khaled Abdel Badie said Sokhna port is being considered as a potential site to dock ta second FSRU at. The FSRU would have the capacity to receive 45 LNG cargoes annually. EGAS excluded the ports in Al Adabiya and Port Said from consideration. Al Adabiya would have required at least 18 months of preparation work and there were concerns in Port Said regarding the effect on Suez Canal traffic. (Read in Arabic)

GANOPE announces a new oil discovery in Aminex’s concession near Hurghada
Al Mal | 27 Feb 2015
GANOPE announced that Aminex Petroleum Egypt reached a new discovery 30 km south of Hurghada. The discovery was made at the Malak site and preliminary results estimate that it holds about 9.6 mn barrels of crude. Production from the site is expected in 2Q15 with plans to dig seven new wells during the year. (Read in Arabic)

Petroleum ministry signs deal for extra butane gas quantities
Al Ahram | 26 Feb 2015
The Ministry of Petroleum announced it has signed agreements to double the supply of butane gas to cover the increased demand nationwide. 22 thousand tons of butane are expected to arrive at the Alexandria port within 72 hours, according to the petroleum minister. The minister attributed the current shortage to adverse weather conditions. (Read in Arabic)

Ministry of Petroleum to sign 3 new investment agreements worth USD 9 mn
Youm7 | 28 Feb 2015
The Ministry of Petroleum will sign three new investment agreements worth USD 9 mn in February that pertaining to natural gas production. Minister of Petroleum Sherif Ismail said that three projects involve natural gas production, which includes the largest project in the history of the Petroleum sector in Egypt. Ismail added that due to the unstable political situation in Egypt, the project should have been started in 2014. The project will start in 2017 and be completed in 2018. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Coca Cola to pump USD 500 mn in Egypt investments over the next three years
Al Shorouk | 26 Feb 2015
Coca Cola will invest USD 500 mn in Egypt over the next three years, according to Coca Cola’s MENA president Curt Ferguson during his meeting with President Abdelfattah El Sisi. The investment will generate four thousand direct job opportunities and will including signing deals with over 10,000 domestic fruit growers. (Read in Arabic) While it is not completely clear, it would appear to be a recycling of an earlier announcement made on 8 February. (Read)

Russian consortium offers to build grain silos
Amwal Al Ghad | 26 Feb 2015
A consortium of six Russian companies have submitted an offer to build grain silos, according to the Minister of Supplies. The silos will have capacities ranging from 60 thousand tons to 100 thousand tons. The Russian consortium also offered to build flour mills that have capacities of 600 tons a day as well as factories to produce animal feed. (Read in Arabic)

MANUFACTURING

Steel producers demand cheaper natural gas supplies
Al Borsa | 26 Feb 2015
The Chamber of Metallurgical Industries has submitted a request to the Ministry of Petroleum to reduce the price steel producers pay for their natural gas supplies to USD 4 per mbtu. The current price is USD 7 per mbtu and increased production costs are, according the Chamber of Metallurgical Industries, could drive domestic steel producers out of business. All of the sector’s grievances were presented to the Minister of Industry and Trade and the Minister of Petroleum. (Read in Arabic)

REAL ESTATE

TMG reaches settlement with NUCA regarding Madinaty
Al Borsa | 26 Feb 2015
Al Borsa confirmed that a settlement was reached between the Talaat Moustafa Group Holding Company (TMGH) and the New Urban Communities Authority (NUCA) regarding the land dispute over Madinaty. TMGH will now pay NUCA for the land via a total of 3.195 square meters of fully developed units along with an indemnity of EGP 2.9 bn (after adding interest), which will be paid in installments over 10 years. (Read in Arabic)

Cap on household incomes that can receive government mortgage funding raised
Al Borsa | 25 Feb 2015
The government has increased the number of households that could benefit from government real-estate funding by raising the cap on eligible families’ incomes to EGP 3,000 per month from EGP 2,500. The law governing this issue had not been changed since 2008, and thus neglected inflationary effects, Al Borsa notes. The new amendment also gives the Mortgage Finance Fund the right to reassess and change the cap on income. (Read in Arabic)

Minister of Housing: New Toshka development complete by June 2015
Al Borsa | 28 Feb 2015
Moustafa Madbouli Minister of Housing, Utilities and Urban Development said that the City of New Toshka currently under construction in the South Valley ranks among one of the largest national projects in Egyptian history. New Toshka’s development phase will end on 30 June 2015. On a site visit to New Toshka, Madbouli said that development of the “valuable” South Valley region is crucial for future of urban development in Egypt. Madbouli further indicated that 1,019 housing units will be established in New Toshka with complete utilities and services. (Read in Arabic)

Tourism Ministry cancels participation in the Kyiv Exhibition, expects 30% less Ukrainian tourists
Daily News Egypt | 25 Feb 2015
The Ministry of Tourism cancelled its participation in the Kyiv Exhibition in Ukraine due to “political conditions,” according to a government source. The exhibition was set to be held at the end of March, DNE notes, and used to be one of the main arenas in which the Ministry of Tourism participates annually. The ongoing conflict in Ukraine drove the ministry to expect a reduction in the numbers of Ukrainian tourists of at least 30%. (Read)

BANKING & FINANCE

NBE offers EGP 500 mn in credit guarantees to dig Suez Canal tunnels
Al Mal | 26 Feb 2015
The National Bank of Egypt has approved the issuance of two letters of guarantee to Concord and Petrojet who are digging three tunnels under the Suez Canal. The LGs will allow the Concord and Petrojet to buy necessary digging equipment to dig the tunnels in the Ismailia region. NBE said the LGs issued are attributed to Engineering Authority of the Armed Forces, which is the project’s governing body. (Read in Arabic)

Former Deputy to Hisham Ramez to become CEO of Egyptian Gulf Bank
Al Masry Al Youm | 1 March 2015
Sources revealed to Al Masry Al Youm that Nedal Asr, former deputy governor of the CBE, will assume his new position as CEO and Managing Director of Egyptian Gulf Bank on 4 March. It’s the latest in a string of defections from the public sector following the imposition last year of a cap on state wages. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

New regulations governing imports from China kick in starting April
Al Masry Al Youm | 27 Feb 2015
New standards on Chinese imports will apply starting from April, according to the government’s General Organization for Exports, Imports, and Control. The changes will be implemented in the light of the China Inspection and Quarantine (CIQ) and will force importers to abide by certain quality standards. The new standards mean that any goods imported from China that don’t meet minimum quality standards will be rejected. A government official expects the move to limit the import of goods of inferior quality by 50-70%. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Egypt and Russia’s customs authorities sign four cooperation protocols
Al Borsa | 25 Feb 2015
Egypt and Russia’s customs authorities have signed four cooperation protocols to facilitate bilateral trade and reduce barriers. Russian officials also said they are considering removing all tariffs on some Egypt’s exports. They also invited Egyptian producers to increase their exports to Crimea, which, according to Al Borsa, allows goods in free of any duty charges. (Read in Arabic and here)

Defense Minister in Moscow to finalize three military deals
Al Masry Al Youm | 28 Feb 2015
Defense Minister Sedky Sobhy departed to Moscow on Saturday heading a military delegation to increase military cooperation between Russia and Egypt, including finalizing 3 military deals, a source told Al Masry Al Youm. The deals include Egypt receiving Sukhoi aircrafts and the S-300 air defense system. According to the source, the Egyptian military recognizes Russia as one of the most important military suppliers in Egyptian military history. In a related event, several experts from a Russian nuclear company visited a site in El Dabaa yesterday to undertake preliminary steps to start implementing the nuclear agreement between Egypt and Russia last month. (Read in Arabic)

Pensions to be calculated based on total instead of basic salary
Al Borsa | 25 Feb 2015
Pensions will be calculated based on the total salary earned in the new unified social insurance law, according to the deputy head of the National Social Insurance Authority, Omar Hassan. Pensions are currently calculated based on the basic salary and Hassan notes that the new law will provide a mechanism to account for inflation. The new law has been drafted and is currently being revised by a panel of experts. (Read in Arabic)

Egypt approves US grant to stimulate trade and investment
Al Shorouk | 26 Feb 2015
President Abdelfattah El-Sisi issued a decree agreeing to a grant signed on 30 September 2014 between Egypt and the United States, represented by the United Agency for International Development (USAID), to improve trade and investment in Egypt. The USD 39 mn grant seeks to make the Egyptian economy more competitive and inclusive in its growth for selected sectors in the areas of trade and investment, with a focus on improving small businesses and enterprises. USAID has provided a total of USD 52 mn dollars in grants and loans to Egypt. (Read in Arabic)

African Ministerial Conference on Environment to discuss green economy methods
Youm7 | 28 Feb 2015
Minister of Environment Khaled Fahmy said that the a series of meetings during the African Ministerial Conference on the Environment (AMCEN) from February 28th to March 1st seek to discuss the different dimensions of the green economy and how to implement it in different African countries. Fahmy added that an Egyptian study on the green economy will be presented during the Conference as well. The second AMCEN meeting will discuss ways to maintain and preserve natural African capital as an asset for sustainable development. The third meeting, in conjunction with civil society organizations and non-governmental organizations, will present the environmental challenges Africa faces and methods of alleviation. (Read in Arabic)

REGIONAL

Jordan’s energy problems persist as Egyptian gas remains short, energy crunch addressed
Oxford Business Group | 25 Feb 2015
Bolstering national electricity production, Jordan has signed loans in order to expand the capacity of the national electricity grid by 1000 MW to around 5300 MW and will expand electricity production from renewable sources. The government expects 1,800MW of renewables capacity to be connected to the national grid by 2018. OBG notes that the Jordanian government is also in talks with BG Group to import gas from Gaza offshore waters. (Read)

ON YOUR WAY OUT

Telecom Egypt CEO Mohamed El Nawawy visited South Sinai to oversee preparations to improve and secure the telecommunications networks ahead of the Sharm investment summit, Al Borsa reports.

Al Masry Al Youm revealed that there is a rift between the National Telecommunications Regulatory Authority (NTRA) and the Interior Ministry’s State Affairs Department. The NRTA has apparently not paid fees due to the State Affairs Department for a secure and updated list of cellphone users in the country. The newspaper obtained a document sent to Ibrahim El Alaily that includes a request for a fee of EGP 1.5 mn for services rendered. (Read in Arabic)

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