Is Egypt the ‘world’s most underrated market’? Invest AD shifts allocation to Egypt. Historic accord with Ethiopia, Sudan on Nile water. Medsofts lands USD 20 mn EBRD loan. Sewedy to build USD 700 mn wind farm. 12 reasons UK ambassador loves Alex

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WHAT WE’RE TRACKING TODAY

Christiane Amanpour’s interview with Tunisian President Beji Caid Essebsi regarding the Bardo Museum terror attack will air tonight, 7 pm GMT.

And if we may indulge our inner Amr Adeeb / Lamis El-Hadidi for a moment: It is more than a week since the EEDC ended, and we’ve seen no sign of the promised unified investment law, no details of the tax cuts, no plan for the overhaul of the tax code, not even a hint of the long-awaited electricity law. There’s no news of the model feed-in tariff contract, no one is speaking of the new insurance law or theexecutive regulations for pension funds promised at the summit. That “shadow regulator” (whatever that means) for the oil and gas industry? It’s lurking in the shadows. And while the new civil service act will reportedly go into effect in three months’ time (see more below), we’ve yet to see a formal copy of it as opposed to a summary — and the last summary we could find in publicly available sources was out before the EEDC.

WHAT WE’RE TRACKING THIS WEEK

The next session of former president Mohamed Morsi’s espionage trial resumes tomorrow, and the 26th Arab Summit will open on Saturday, 27 March 2015, in Sharm El Sheikh. On the latter: Egypt welcomes the emir of Qatar’s participation at the summit, Foreign Minister Sameh Shoukry said yesterday, but there’s no truth to rumors that there will be a trilateral sit-down between Cairo, Doha and Riyadh on the sidelines.

LATER THIS MONTH

The Terrapinn Middle East Investment Summit takes place 30-31 March (Monday-Tuesday) in Dubai.

Developer and investor briefing on Egypt’s feed-in tariff program (Cairo, Tuesday 31 March). In conjunction with Eversheds, DNV GL and IFC, Apricum will present at an official briefing on behalf of the Egyptian government for companies who have pre-qualified for Egypt’s FIT program. For further information, contact Dr. Moritz Borgmann.

LAST NIGHT’S TALK SHOWS

Coverage of President Abdelfattah El-Sisi’s visit to Khartoum and the signing of the agreement on the Great Ethiopian Renaissance Dam (GERD) between Egypt, Ethiopia and Sudan was the main story on all talk shows last night.

In a telephone interview with Amr Adeeb, Foreign Minister Sameh Shoukry explained that the agreement of principles that was signed by the three African leaders is a positive first step that will help define the way forward on the controversial Ethiopian dam. “The agreement is a roadmap of sorts to make sure that we are all aligned on the way forward. Ethiopia has agreed to carry out international technical studies, and this is a first,” said Shoukry. “We had to face the reality and make the best out of the situation that we are faced with,” he added.

“Now I will tell you what the foreign minister couldn’t say,” said Adeeb. “In my opinion, we were in a very weak position, 30-40% of the dam is already complete, so putting a stop to it is no longer an option. It’s much too late to force them to do anything. Remember Morsi and all the ridiculous threats and statements that he used to make about this dam? Today, we are paying the price of the last four years of neglect, failure to take action and inaccurate assessments of a very serious situation during the days of Essam Sharaf and Morsi. Today, we are trying to salvage a very bad situation. We did nothing for four years and we have no one to blame but ourselves. This is not the end of the problem with Ethiopia, it is the beginning of the problem.”

A general comment from Adeeb on the Sisi visit to Sudan: “The Sudanese did not have stairs that were high enough to reach Sisi’s airplane, so he was forced to wait inside his aircraft for some time until they found stairs so he could disembark. Rumors immediately circulated that the Sudanese did not want to meet with Sisi. Just a bit of humor to lighten the very grave situation with the dam.”

On this week’s edition of Opposition Monday, Adeeb brought us a blast from the past: Egypt’s coolest opposition leader, Amr Hamzawy. Once a staple on the talk show circuit, Hamzawy has kept a very low profile since June 30. We are happy to report that his disappearance from the limelight hasn’t changed him one bit. Without pausing to catch his breath, he voiced his opposition to the Renaissance Dam, the EEDC, the lack of transparency, the lack of social justice, the lack of freedom, tax reform, the parliamentary elections, the new capital, the war on terror and most of all “the lack of details that are being offered to the public on all of these crucial issues.”

He did, however, acknowledge that “people can’t eat democracy, they need jobs in order to live,” and for that we are grateful.

Ibrahim Eissa also spoke at length about the GERD. “What happened today in Khartoum sent a very positive message about the future of Egyptian-African relations. The picture of the three African leaders holding hands after signing the cooperation agreement is a beautiful one. President Al Sisi succeeded in showing the Africans that this is the start of new era for Egypt. He is the first President since Abdel Nasser to spend one night and two days in Ethiopia. This new spirit of cooperation with our African neighbors is to be commended because we have ignored them for too long but it is merely a small step on a long, hard journey. We should be pleased and optimistic but not that happy because nothing has really happened yet regarding the dam.”

SPEED ROUND

Invest AD shifts funds to Egypt: Abu Dhabi investment manager Invest AD said it is increasing its allocation to Egypt as it expects political stability to drive economic growth, Bloomberg reports. 35% of Invest AD’s USD 50 mn Africa Fund is invested in Egypt, up from 10-15% last year. “The trigger was political stability. From an economic standpoint… implementation of economic policies and investments that have been promised,” portfolio manager Sherif Salem said. Invest AD expects a 10-15% return on their investments in Egypt.

Egyptian to chair WTO’s Anti-Dumping Committee: Hamid El-Etribi, a member of the Egyptian Commercial Office in Geneva, has been tapped to take the helm of the committee for FY 2015-16, Al-Masry Al-Youm reports.

Currency exchanges complain of flagging demand: The narrowing gap between parallel market prices and bank rates for the USD is seeing exchange offices complain that market demand for their services is drying up, Al-Borsa reports after a survey of traders. The news comes as the EGP was steady at 7.53 to the USD at yesterday’s CBE auction while strengthening to EGP 7.65 on the black market.

Government implements new civil service law: A representative from the Central Agency for Organization and Administration revealed that it has begun its implementation of articles of the new civil services law, affecting 7 mn government employees. The source added that certain articles of the law require additional executive clauses to go into effect while others do not. These executive clauses are expected to go into effect in three month’s time. The new civil services law. which replaces law 47 of 1978, aims to decrease government bureaucracy and corruption. (Read in Arabic) As per the new law, the basic minimum wage for public sector employees will reportedly increase from EGP 250 to EGP 870, despite numerous previous reports that the minimum wage had been increased to EGP 1,200 following the 2011 revolution. The new wages are set to go into effect on 1 July of this year. Finance Minister Hany Kadry Dimian added that public sector wages will also no longer be paid in cash, but will rather be distributed electronically, also starting on 1 July. The National Bank of Egypt is piggybacking on the news, saying it is ready to help facilitate salary transfers for as many as 7 mn government employees.

Bonds for Canal Zone development? Amendments to the Suez Canal investment certificates law yesterday will allow the new bonds to be offered to support development of infrastructure and industry in the Suez Canal zone, the AP reported. Meanwhile, Al-Masry Al-Youm notes that the decree makes clear that the Suez Canal Authority will be responsible for the New Suez Canal and the development of the Canal zone.

Gold producer Centamin‘s shares spiked on its first-ever dividend: The persistence of the Raghy family in building Egypt’s first commercial-scale gold mining operation since the time of the Pharaohs — a journey that began, we were once told, when the curiosity of the company’s founder was piqued by a reproduction of a Pharaonic-era map on a wall at the Egyptian Geological Survey and Mining Authority while on a visit from Australia decades ago — paid off yesterday as the company’s shares climbed 16 percent following the declaration of its first-ever dividend. The FT has more, as does Reuters.

The EBRD has provided a USD 20 mn loan to Tarek Tawfik’s Medsofts, which the institution notes is “a family-owned company … and one of [Egypt’s] key agricultural commodity importers and supply chain managers.” Medsofts negotiated the working capital finance facility to help manage growth as a result of the “the completion of a grain-storage and handling terminal, 50 per cent-owned by Medsofts, in the port of Alexandria.” A release from EBRD notes the port is the fourth privately owned port in Egypt. EBRD has committed more than EUR 740 mn to 23 projects in Egypt and facilitated technical assistance for 185 SMEs.

Russian tourists continue to flock to Egypt and Turkey as tourist destinations in 2015, the Moscow Times reports, despite recent pressures due to sanctions and the falling value of the ruble.

Nissan Motors has reportedly been removed from the virtual transaction registration whitelistfor the import of spare parts by the Ministry of Industry, reportedly for failing to pass a virtual screening test. (Read)

A warning shot for contractors? News yesterday that the governor of Dakahlia has demanded prosecutors investigate a contractor after a diesel spill threatened the local supply of drinking water. News of the investigation is less significant than the prominence accorded the news in a number of outlets, includingAl-Masry Al-Youm. We’ll be keeping an eye out in the days ahead for any signs of whether this portends a wider crackdown or is simply a local issue.

Egypt secures USD 3bn from the AfDB -source: Egypt reached an agreement with the African Development Bank (AfDB) for USD 2.5-3 bn, according to a banking source involved with the talks to Amwal Al Ghad on Sunday. The funds will be dispersed over the next three years, according to the source. (Read)

Ex-Bechtel executive sentenced to 42 months for kickbacks: Former principal vice president of Bechtel Corp Asem Elgawhary was sentenced on Monday to 42 months in prison for accepting USD 5.2 mn in return for providing inside information on bids for contracts with Egypt’s electricity company in contravention of the U.S. Foreign Corrupt Practices Act. (Read)

Finance Minister Hany Kadry Dimian has said that he has submitted amendments to the customs law, which has been in place since 1963. Among the proposed changes is the option for companies to postpone and pay in installments customs duties on machinery, equipment and production lines for agricultural, or industrial production. (Read)

Bomb targets former interior minister Habib El-Adly acquittal judge: A bomb targeting the home of Judge Fathy Bayoumi, the judge who acquitted former Interior Minister Habib El-Adly last Thursday of graft charges, detonated on Monday, although no injuries or casualties were reported. “The device was placed in front of Bayoumi’s home in Ousim, Giza governorate, and the words “a gift for El-Adly’s acquittal” had been scribed on the wall.” (Read)

Forensic authority investigated over El-Sabbagh ‘thinness’ comments: In a brief moment of sanity, Ahram Online reports that the justice ministry “is investigating the accuracy of comments by a forensic authority spokesman who said a female activist died from birdshot wounds because she was ‘too slim.’” (Read)

Is KSA gearing-up for military intervention in Yemen? Riyadh signaled yesterday it would consider military action if talks between the internationally recognized government of Abdurabuh Mansour Hadi and Houthi rebels failed to make progress. Hadi had earlier asked the GCC nations to impose a no-fly zone and send troops. Bloomberg and Reuters have more. Egypt will be keeping a close eye on the talks after Suez Canal Authority head Mohab Mamish said in February that Egypt would intervene militarily if the Bab Al-Mandab Strait is blocked. The strait is the critical access point to the Suez Canal from the south, linking the Red Sea to the Gulf of Aden.

It all began when an exec flew private aviation, not commercial: The FT has a deep dive into the boardroom politics behind the Holcim-Lafarge merger, with Nassef Sawiris playing a supporting role in the dumping of Bruno Lafont, the chairman and CEO of Lafarge originally tapped to lead the entity in the event they conclude a merger. Read: ‘Holcim and Lafarge: A merger of egos.”

12 reasons why the U.K. Ambassador to Egypt loves Alexandria, on his Twitter account, via Ahram Online.

WORTH READING

Is Egypt the World’s Most Underrated Market? Advertising Age runs a very candid but upbeat outlook on doing business in Egypt, with some great quotes: “Egyptian consumers are “very exposed, they’ve seen everything, they know everything. And you can’t really fool them. If you try to be a smart—, you won’t succeed. They’ll see through you,” said Hesham Ellabban, founder of three-year-old shop Kairo, named independent agency of the year at the 2014 Dubai Lynx, the Cannes Lions’ ad festival for the Middle East.” The article also offers three insider tips for advertisers in Egypt: Be entertaining; Win the youth market; andUse humor, darkly. (Read)

Smartspot’s Tale: From A Farm In Egypt To Building A YC Computer Vision Startup For Fitness: ‘Inspiring’ does not adequately convey Techcrunch’s story of Egyptian entrepreneur Moawia Eldeeb’s struggle and success in founding a startup in the United States. His family had to take constant care of his younger brother, who had been born with a rare genetic condition that prevented him from sweating. After immigrating to the United States following his father winning the Greencard lottery, a young Moawia had to drop out of school to work 12-hour days to help support his family. His family was then made homeless after their home burned down, forcing them to relocate to a Red Cross shelter. Not to spoil the whole story, which deserves a read, but Eldeeb took on the task of self-educating himself and eventually made to Columbia, where he met his business partner. The two of them have since started a service that uses the Kinect along with video to help people without personal trainers ensure they are lifting weights with proper form, something which anyone who really knows anything about fitness understands that most people at the gym have horrible form, which can lead to potential injury. (Read in Techcrunch)

WORTH WATCHING

President Abdelfattah El Sisi’s remarks in Khartoum yesterday ahead of the signing of the tripartite agreement between Egypt, Sudan and Ethiopia, in two segments: (Watch the first segmenthere, running time: 3:58, and the second segment, featuring more informal remarks, here, running time: 3:58, in Arabic)

EGYPT IN THE NEWS

News of Egypt reaching a preliminary accord with Sudan and Ethiopia over Nile usage rights and Ethiopia’s Renaissance Dam dominate international headlines this morning. For more on the agreement, please see our special Spotlight, below.

The Capital Cairo project continues to draw attention in the foreign press, although not all bad. CNBC carries a piece with some fairly positive remarks, in ‘Can Egypt build a new capital in the desert?’: “It certainly is ambitious,” Sven Richter, the managing director and head of frontier markets at Renaissance Asset Managers told CNBC via email. “But there are a number of these type of developments around the world and over time most become successful … I think the development is well positioned and with government moving people and offices there will have a kick start, it can provide a couple of decades of infrastructure spending underpin to the Egyptian economy. The difficult part is going to be the funding as it’s a huge project, but this will be a multi-year project and is in line with Egypt’s growth prospects. I think that the project will be a success but I am not sure when they will be able to start,” Richter added. (Read)

Egyptian blog Cairo Observer, which hosted Khaled Fahmy’s critical piece on the capital Cairo which was later widely quoted, features a comparative urban history drawing parallels between Nasr City and the new proposed administrative capital in ‘Nasr City was once Egypt’s new capital, but things went wrong.’

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A MESSAGE FROM PHAROS HOLDING: Is the story of steel in 2014 a replay of the story of crude oil in 2H2014? If so, it’s negative news for one of Egypt’s largest steel players. Pharos has been bearish on Ezz Steel for almost a year due to deteriorating industry fundamentals. Although Egypt’s economy is recovering and projects announced during the EEDC are expected to trigger a boom in infrastructure spending and demand for steel, Ezz Steel has not been a capacity utilization story in as much as a steel price story. Pressures on international steel prices will continue to dictate domestic prices, by virtue of import parity constraints. In 2015YTD, international iron ore prices have plunged 18%, after crashing 47% in 2014 on the back of significant demand contraction coupled with the buildup of excess supply of steel in China. Interestingly, on 19 March 2015, traders noted that seaborne trade in iron ore came to a standstill as prices touched a record low. This steep supply / demand imbalance poses significant downside risks to steel prices in 2015, akin to the crash in crude oil prices of 2014. What does this mean for Ezz Steel? (ESRS on the EGX; FV EGP 16.60 per share) (Continue reading here)
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SPOTLIGHT ON EGYPT-SUDAN-ETHIOPIA DECLARATION

As noted above in our talk show review, Tuesday witnessed the signing of a historic tripartite accord referred to as a “Declaration of Principles” between Egypt, Sudan and Ethiopia which set out a basic set of guidelines governing the sharing of water resources of the Nile Basin countries with regard to the Renaissance Dam. Ahram Online has translated the signed document its entirety, which may be read here. While the agreement is preliminary and is yet to be fully fleshed out, some salient points include:

• The agreement does not explicitly state that Egypt is abandoning its hold on the colonial-era treaties upon which it has referenced its usage rights. That said, the tone of the agreement signed yesterday instead places emphasis on fair use with regard to the social and economic needs of the Nile Basin countries, balanced with the water needs of the other riparian states.
• The agreement alludes to the contribution of each state’s waters to the Nile River system as well as the percentage of space of the waters in each state, likely with a view on calculating quotas. However, there is no specific mention of a redrawing of quotas or if the two above stated considerations will provide the basis for allocation of water resources.
• In the event that the actions of one country cause damage to another, it is incumbent on the country causing said damage to prevent further harm and to discuss compensation.
• Downstream countries will be given priority to purchase energy generated by the Renaissance Dam.
• Egypt, Sudan and Ethiopia agree to apply the recommendations of the international technical experts committee and the results of the final report of the Tripartite National Technical Committee

Ittihadiya issued a statement summarizing the President’s remarks ahead of the signing ceremony, following his arrival yesterday morning in Khartoum. “The President underscored the right of the Ethiopian people to development, while taking into consideration that the Nile River is the sole source of life for Egypt and its people. President El Sisi noted that Egypt chose to follow the path of cooperation and development rather than that of division and confrontation. He asserted that this new era, whose first step began today, should continue in order to build confidence instead of suspicion and mistrust.”

Following the signing ceremony, President El-Sisi traveled to Addis Ababa on Monday afternoon, where he was greeted at the airport by Ethiopian Prime Minister Hailemariam Desalegn. In bilateral talks, Desalegn stated that cooperation should not be confined to the Renaissance Dam, but will extend more broadly to realize development and prosperity for the people of the three countries. El-Sisi added that the “coldness” that once characterized  Egyptian-Ethiopian relations is now history.

DIPLOMACY

Rwanda appoints its first ambassador to Egypt -Xinhua: The former Grand Mufti of Rwanda, Sheikh Saleh Habimana has been appointed as Rwanda’s first-ever ambassador to Egypt, according to a Rwandan cabinet statement as reported by Xinhua. Rwanda and Egypt and both members of the Nile Basin Initiative. (Read)

Foreign Ministry’s spokesperson welcomes relatives of missing Egyptians in Libya: The Ministry’s spokesperson met with relatives of 26 Egyptians missing in Libya, together with the head of the Egyptian Union for Human Rights, Naguib Gobraiel, according to a statement from the MFA. The relatives reported that they have lost all contact with their families since September 2014, when their relatives had  traveled to Libya in an attempt to later be smuggled to Italy. The assembled relatives demanded that a search be conducted in order to locate their missing family members. (Read)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

El Sewedy to construct a USD 700 mn wind farm in Zaafarana
Al Borsa | 23 March 2015
El Sewedy Cables has finalized technical and feasibility studies and will build a USD 700 mn wind farm in Zaafarana. The project, which is set to begin this year, will take three years to complete. El Sewedy says it targets a power generation capacity of 600 MW from the power station. (Read in Arabic)

Egyptian Electrical Utility And Consumer Protection Regulatory Agency completes preparation of contract for the purchase of privately produced household electricity
Al Borsa | 23 March 2015
The Egyptian Electrical Utility And Consumer Protection Regulatory Agency has completed its preparation of a draft contract which will permit the agency to purchase solar energy from private households and companies. The regulatory agency is expected to sign contracts with several privately-owned electricity distribution companies that will also be responsible for the installation of the solar power units for the households. Household owners that are interested in installing solar units on the rooftops of their households will be required to enter into a contract with one of these companies, as per the contract. (Read in Arabic)

Bank Audi participates in loan to the Electricity Holding Company
Al Borsa | 23 March 2015
Bank Audi will provide USD 100 mn out of a total USD 520 mn loan package to the Electricity Holding Company. Other banks involved in the loan are Banque Misr (USD 75 mn) and Egyptian Gulf Bank (USD 100 mn).The loan will be used to finance a joint project between Orascom Construction and General Electric to construct 8 units with a capacity of 1000 MW in Assiut. (Read in Arabic)

OIL & GAS

Egypt amends gas purchase price from Dessouk, Dea invests USD 240 mn
Reuters, Aswat Masriya | 23 March 2015
The purchase price of natural gas from the Dessouk onshore concession was raised to USD 3.50 per mmBtu from USD 2.50. This came with a signing of a USD 240 mn investment by Dea Egypt to increase production from the first phase of the concession from 145 mcf per day to 210 mcf by summertime. The second phase’s production target, set for the summer of 2016, was similarly raised from 210 mcf per day to 300 mcf. (Read orin Arabic)

Negotiations to increase the price of gas reach an advanced stage – BG Egypt
Al Mal | 23 March 2015
Negotiations with Ministry of Petroleum to increase the purchase price of natural gas have reached an advanced stage and are expected to be finalized soon, a company source told Al Mal, anticipating that the price is expected to be higher than USD 5.5 per mmBtu. The source also told Al MAl that the MoU signed with the ministry involves developing Phase 9B as well as other projects at BG’s concessions. Al Mal notes that the MoU includes a requirement for BG to improve production from three wells at BG’s WDDM concession. (Read in Arabic)

EGAS assessing how to develop the MoU signed with CHC
Al Mal | 23 March 2015
EGAS says it is assessing how the MoU signed with the Cyprus Hydrocarbons Company could be developed into a firm natural gas agreement. A source at EGAS told Al Mal that building a 100 km-long pipeline connecting the gas field to Egypt’s natural gas infrastructure is the most likely course of action. The total cost and the sources of financing the pipeline are currently being negotiated. (Read in Arabic)

Petrobel contains rig fire in South Sinai
Al Mal | 23 March 2015
A rig operating in Petrobel’s Abu Redis concession caught fire yesterday. The company said it had contained the fire and are currently in process of cooling off the oil rig. The rig is rented from Shelf Drilling. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Almarai plans to invest USD 400 mn in expansions in Egypt
Al Borsa | 23 March 2015
Food manufacturer Almarai is planning on investing USD 400 mn in expanding its activities in Egypt. The investments will be used to expand existing projects as well as for potential takeover opportunities. Almarai is currently assessing financial advisory offers from CI Capital and HC. Sources told Al Borsa the company had submitted an offer for Qalaa Holdings’ Dina Farms. (Read in Arabic)

Egypt and Kenya discuss food trade agreements
Al Ahram | 23 March 2015
Egypt and Kenya discussed a food trade agreement. According to the agreement, Egypt exports brown sugar to Kenya and imports meat and livestock. The Minister of Supplies, Khaled Hanafy, said the agreement is not an exchange of commodities, but a deepening of a strategic partnership. (Read in Arabic)

MANUFACTURING

Kandil Steel to build a new EGP 1 bn plant
Al Borsa | 23 March 2015
Kandil Steel is building an EGP 1 bn galvanised steel plant in the Gulf of Suez area. The plant is expected to begin production in two to three years and to have a capacity of 360 thousand tons. Kandil is currently assessing whether to invite a foreign partner to join in in this project or not. (Read in Arabic)

EGAS owed EGP 8.5 bn from the industrial sector
Al Borsa | 23 March 2015
EGAS is owed EGP 8.5 bn from the industrial sector for gas bills, a source at EGAS told Al Borsa. Most of the receivables are owed by the National Cement Company, the source said, but despite that EGAS is unable to stop supplying it as it’s a government related entity. However, EGAS had cut supplies to brick manufacturers until their dues are paid. (Read in Arabic)

Suez Cement to invest USD 108 mn this year
Amwal Al Ghad | 22 March 2015
Suez Cement said it will pump USD 108 mn to have its Helwan and Tora plants run on coal. The company is currently negotiating approvals with the Ministry of Environmental Affairs for the two plants, which have a production capacity of 6 mn tons. (Read in Arabic)

REAL ESTATE

Amer Group to build Porto Heliopolis in Cairo
Al Borsa, EGX Press Release | 23 March 2015
Amer Group announced it is building its fourth project in Cairo on 27,000 square meters. The project, which will be called Porto Heliopolis, is set to be located on Thawra Street and will take three years to complete. EY was commissioned to value the land and set it at EGP 502.6 mn. Amer is expected to begin construction in 2H2015 as it intends on finishing land registration before the end of March. (Read in Arabic and here)

The Armed Forces approves building heights for EEDC real estate projects
Al Borsa | 23 March 2015
The Ministry of Housing received approvals from the Armed Forces for the proposed building heights in real estate projects presented at the EEDC. The approvals included areas in New Cairo and Sixth of October along with approving the proposed height of the Zayed Crystal Spark. The housing minister believes that approving the heights in Sheikh Zayed City as a start for more lax regulations in new cities. (Read in Arabic)

TOURISM

Tourism ministry considering lifting ban on establishing diving centers
Amwal Al Ghad | 22 March 2015
The Ministry of Tourism is assessing lifting the ban imposed in 2014 on establishing new diving centers in Sharm El Sheikh, Dahab, Hurghada, and Safaga. Lifting the ban aims to inject new investments and regulate unlicensed centers. Prior to licensing, centers will be required to obtain the approval of the Egyptian Environmental Affairs Authority. (Read in Arabic)

TELECOMS

Noor Internet in talks with Link, Etisalat, and Vodafone to form ISP alliance
Al Borsa | 23 March 2015
Noor Internet is currently engaged in talks with LinkDotNet, Etisalat, and Vodafone to form an alliance of internet service providers. Noor aims to provide some competition to TE Data given the latter’s dominant position in the market with a market share of 65% and improve the service quality. Proposed is a scenario where a new entity is formed out this alliance or having Noor overtake the telecom providers’ internet service for shares in the company. If a deal is reached Noor said it will undergo a capital increase to finance the plans. (Read in Arabic)

BANKING & FINANCE

EFSA approves microfinance regulations for NGOs
Al Masry Al Youm | 23 March 2015
EFSA approved the regulations for NGOs’ microfinance operations, Sherif Sami said. The regulations were set according to law number 141 for 2014 which classified NGOs according to their financing ability. The regulations including specific stipulations on provisioning and write-offs. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Government working on avoiding inflationary effects of the constitutional spending requirements
Al Borsa | 23 March 2015
The government is set on hitting the constitutional spending requirements on healthcare and education while mitigating their potential inflationary effects, the Minister of Finance said. The minister tempered his remarks by noting that the government is allowed three years before being obliged to stick to the spending targets imposed in the constitution. (Read in Arabic)

REGIONAL

UAE to set up a federal Shariah board to boost Islamic finance market
Bloomberg | 22 March 2015
The UAE is set on establishing a federal Shariah board by the end of 3Q2015, the country’s biggest step to increase its presence in the Islamic finance market. The board’s role is to pass religious decrees on whether financial products conform to Islamic teachings or not. Islamic finance institutions usually have their own in-house Shariah scholars assessing their products, but a “central board may help overcome differences, Moody’s Investors Service said.” The bigger question now is how this centralized board will interact with private institutions’ Shariah board. (Read)

ON YOUR WAY OUT

Bedouins helped secure the Sinai during the EEDC -report: In a report carried by Al Monitor, unnamed Bedouin sources suggest that there was a high level of coordination between Sinai’s Bedouin community and Egypt’s security apparatus to help the entirety of the Sinai peninsula during the EEDC, in spite of terrorist plots to create havoc during the event. If true, the report would be an hugely positive step in the right direction in helping return long-term stability to the Sinai, beyond the close of the conference. (Read)

Government allocates land for public entities for development plans, mainly in the Sinai: Prime Minister Mahlab announced that land has been allocated for public buildings and services in North and South Sinai, Beheira, and Sohag. While the projects announced are modest, at the very least they are the rare form of specific, concrete steps taken to address the grossly undeveloped Sinai region. Among the projects which land has been allocated are 415.2 sqm in Tur Sinai to establish a geriatric-care unit, 12,690 sqm, also in Tur Sinai, to a establish headquarters for civil protection, 2,260 sqm for a children’s library in Ras Sidr, and 500 sqm to establish a one-class school in Ras Sidr, among other projects. (Read)

Meanwhile, the state continued to evacuate residents from the border town of Rafah in order to create a buffer zone, as reported by Daily News Egypt.

Egypt will send a team of experts to Kenya in order to explore bilateral trade opportunities between the two countries. The news follows meetings on which we reported on Sunday between Minister of Trade and Industry Mounir Fakhry Abdel Nour and Kenyan Minister of Agriculture, Livestock and Fisheries Felix Kiskei on the sidelines of the Cairo International Fair, according to Kenyan media.

11,909 jobs were created in January 2015, according to a report issued by the Ministry of Manpower. (Read)

Work on the New Capital’s infrastructure will be complete within three years, according to Dr. Mostafa Madbouli, Minister of Housing.

BY THE NUMBERS

USD CBE auction (Monday, 23 March): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Monday, 23 March): 7.65 (-0.01 from Sunday, 22 March)

EGX30 (Monday): 9,374.12 (+0.21%)
Turnover: EGP 477.6 mn (25% below the 90-day average)

WTI: USD 46.99 (-0.97%)
Brent: USD 55.59 (-0.59%)

TASI: 9,319.7 (+0.1%)
ADX: 4,381.2 (+1.3%)
DFM: 3,501.3 (+2.2%)
KSE Weighted Index: 437.4 (+0.2%)
QE: 11,521.3 (flat, +0.03%)
MSM: 6,207.6 (-0.4%)