Thursday, 30 April 2015

Auto assemblers may get state incentive fund. EGP at 8, growth at 5.5%, say economists in Reuters poll. Will Parliament re-open legislation passed by El Sisi? Hijab debate hits the airwaves. Black market for USD back? Petrol smart cards by 15 June.

WHAT WE’RE TRACKING TODAY

EGX Chairman Mohamed Omran will meet today with brokerage industry officials to discuss a laundry list of complaints, including the capital gains tax on stock market trades and dividends; the queue to obtain USD to repatriate foreign investor gains; the impact of IPOs on the market; and whether dividend distributions by cash or share make the most sense in the current climate, Al-Masry Al-Youm reports.

Today’s meeting comes after the bourse gained 1.9% yesterday after Prime Minister Ibrahim Mahlab met with Investment Minister Ashraf Salman and the heads of both the EGX and the Egyptian Capital Markets Association (ECMA) to discuss possible amendments to the capital gains tax regime. According to Al Borsa, ECMA submitted a proposal to Mahlab on alternative ways to generate revenue, such as imposing a 0.1% stamp tax on transactions. The proposal also suggested that tax on dividend payments be dropped to 5% for listed companies and 10% for non-listed companies. Reuters has taken note of the capital gains tax in its daily market roundup, propelling the issue on to the radar screens of investors further afield.

Royal Dutch Shell is set to announce Q12015 earnings today.

ON THE HORIZON

The HSBC Markit Economics Egypt Purchasing Managers’ Indexes for Egypt, Saudi Arabia and the UAE are due out at 6:30am UK time on Tuesday, 5 May 2015.

LAST NIGHT’S TALK SHOWS

Rania Badawi was confused and frustrated by Transitional Justice Minister Ibrahim El-Heneidy’s recent statement regarding whether or not the next Parliament will be required to discuss and approve the 343 laws and decrees that have come out in since the last parliament was in session.

“Just in case anyone still cares about the parliament and the parliamentary elections — and by the way, the Islamists are in a perpetual state of preparation and just waiting for the green light to proceed — how should we interpret Heneidy’s alleged dismissal of article 156 of the Constitution which states that Parliament must approve all laws and decrees that were issued during its absence,” asked Badawi. “We are now at 343 laws and counting. God knows where we’ll be by the time a new parliament is elected. The last of these decrees was the cancellation of daylight savings time.”

“According to the Minister, it will be up to the next Parliament to decide whether or not they want to discuss the laws. If this is indeed the case, then we need to be particularly worried about the nature of the next Parliament,” she added. “Quite honestly, the whole situation with parliament and the elections raises lots of question marks. First it was after Thanawyea Amma, then Ramadan, then I don’t know what.”

Badawi raised some of her misgivings with constitutional expert Dr. Shawky El Sayed. “Article 156 of the constitution is very clear, it’s not optional. The constitution states very clearly that any laws or decree issued in the absence of a parliament must be discussed in parliament. They have to either approve, alter or cancel these laws and they have to do so within 15 days,” said Shawky. “Anyway, I think it is a bit premature to be discussing this. We don’t have an election law or even a tentative election date. These types of haphazard statements should not be made.”

“In a previous statement Heneidy said that the Parliament will have to work in shifts in order to get through all the laws in 15 days. It seems there are more statements being made than actual work on the law. This leads me as a citizen to ask, why is the law not finished yet. Is it because you don’t want to finish it?” said Badawi.

Shifting gears: “Our youth seem to be either atheists or Daesh — where is the middle,” asked Khairy Ramadan as he launched into a discussion on hijab with a panel of academics, writers and researchers on both ends of the spectrum. Ramadan pointed out that some of the most famous Azhar Sheikhs in the past had wives and daughters who did not wear the veil.

“This debate has been going on for 115 years,” said writer / journalist Iqbal Baraka. “You cannot force women to dress a certain way. Hijab is not mentioned in the Qur’an except in reference to the wives of the Prophet. The word hair does not exist in the Qur’an. It does not say cover your hair or your face or anything. Hijab is a social issue, not a religious one.”

In response, Sheikh Ashraf Saad Al Azhari said, “by the same token if we only go by what is in the Qur’an, then alcohol is halal, you can pray any way you want, and you can pay zakat in any amount that you want. We cannot ignore that there is the Qur’an and there is Sunna. There is also a lack of linguistic knowledge on the part of Iqbal and those like her.”

The issue of hijab has been a regular feature on talk shows in recent months; a Twitter hashtag on the veil in Egypt has taken off, and the topic has also appeared in the op-ed section of the flagship state-owned daily Al Ahram. A sign of change?

** SHARE ENTERPRISE WITH A FRIEND **

Enterprise is available without charge — just visit our subscription page. We give you just about everything you need to know about Egypt, in your inbox Sunday through Thursday before 7am CLT, and all we ask for is your name, email address and where you hang your hat during business hours.

SPEED ROUND

Saudi reshuffle empowers the Sudairi Seven, alters path of succession from brothers to son of current king: Early Wednesday morning, shortly following the release of yesterday’s issue, Saudi television announced a major reshuffle, not only in the succession and other governmental posts, but in the very system by which the Saudis seek to pass on power – shifting from succession to brothers of the first King Saud to the direct descendent of the current King Salman, Mohammed bin Salman as Deputy Crown Prince, set to succeed the newly named Crown Prince Muhammed bin Nayef, replacing the outgoing former crown prince Muqrin. Thus far, there have been no real ‘stand-out’ articles deeply exploring what this means for Saudi Arabia and the region as a whole, however The Economist has a brief and straightforward explanation of the shakeup in ‘A palace coup‘: “This ends a 60-year tradition of rule passing between brothers; welcome since the current ruling generation is ever more remote from its youthful population … But the moves also reeks of dynastic intrigue. They shore up Salman’s line, known as the Sudairis, the seven sons and their descendants of one of Abdel Aziz’s many wives.”

Both Politico and the Los Angeles Times tap the Washington Institute’s Saudi expert Simon Henderson to help explain the new order: “Analysts said the appointments concentrated power that for decades has been widely distributed within the huge royal family. And that, they said, could intensify jockeying for influence that could ultimately threaten the kingdom’s stability. “The anxiety that Washington should have is that there are clearly moves going on in Riyadh which could amount to a power struggle,” said Simon Henderson, a Persian Gulf specialist at the Washington Institute for Near East Policy.”

The reshuffle includes Saudi Aramco’s CEO Khalid al-Falih as the company’s chairman as well as health minister, leaving the CEO’s position vacant at Aramco vacant at the moment. Reuters states that the move is unlikely to change oil policy. (Read)

Government moving to protect domestic auto assemblers, BMW says it will still assemble in Egypt: The Council of Ministers will soon be discussing a “package of incentives” for domestic automobile assemblers as well as component and spare-part manufacturers, Industry Minister Mounir Fakhr Abdel Noursaid yesterday. It seems the incentives will in part be contingent on assemblers moving further down the value chain to incorporate 60% local content in domestic vehicles compared with 40% today. The incentive package is being drawn up by the Finance Ministry. The move comes after Mercedes-Benz announced it would cease assembling in Egypt and instead ship-in completely built-up vehicles from Europe. In related news this morning, BMW’s local agent said yesterday it has no plans to stop assembling in Egypt. Bavarian Auto Group Marketing and Public Relations chief Yahia Abdel Kodouss denied earlier reports that his company was exiting assembly. Rather, BAG plans to increase its investment in its automobile manufacturing facilities, with the goal of introducing new BMW models to the Egyptian market, concluded the source. Raouf Ghabbour, CEO of GB Auto, which has the largest share of the domestic passenger car market, has consistently advocated for support to domestic assemblers, saying European, Moroccan and Turkish vehicles enjoyed an unfair customs advantage over locally-built cars.

Executive regulations of the new investment law are complete, Industry Minister Mounir Fakhry Abdel Nour revealed yesterday, saying he expects that they will be signed-off within the coming few days. He noted that the law will offer additional incentives for investments such as land purchasing for manufacturing purposes. He also went on to announce that the executive regulations for the Mining and Quarries Law are nearing completion, which he feels will boost the viability of projects in this sector such as the Golden Triangle. Furthermore, the minister plans to allow for additional incentives for domestic automobile manufacturers which he says will make the industry more competitive, dismissing Mercedes decision to leave Egypt as having been taken in 2010 in order to boost German exports. (Read in Arabic)

Parliamentary elections will be held before year’s end, President Abdel Fattah El Sisi confirmed yesterday.

Economists see EGP at USD 8, economic growth picking up over 3 years: A Reuters poll of economists forecasting Egypt’s economic growth will reach 5.5% by 2016-17 is among the top stories in bothArabic- and English-language coverage of Egypt this morning. The poll also found “economists had lifted their growth forecasts for the current fiscal year ending in June to 4.2 percent — in line with the government’s target and up from 3.5 percent in a similar poll in January — after the economy grew by more than 5 percent in the first half.” Also notable: Respondents said the CBE would its overnight interest rate by 50 bps this fiscal year and are forecasting the EGP to weaken to 7.65 per USD at the auction rate from 7.53 today, “stabilising at around 8 pounds per USD next year.”

Egypt’s black market for the USD has reappeared, Bloomberg says. Dollars were selling at EGP 7.699, according to the average of four dealers surveyed – the first time it moves away from “the central bank-set range of 5 piasters from the official 7.6301 per dollar interbank price.” Hany Farahat, a senior economist at Cairo-based CI Capital, told Bloomberg the CBE should use the USD 6 bn GCC deposit to “satisfy pending repatriation requests, the imports-demand backlog for dollars, and erase the words ‘capital controls’ from our dictionary.” Sources said that some portfolio investors were still unable to repatriate funds, but the CBE has not commented on the issue since last year.

Revisions to the companies’ act are complete, the Minister of Transitional Justice said. The draft will be reviewed at the next session of the Higher Committee of Legislative Reform.

Qalaa Holdings will engage in share buybacks, sees return to profitability in FY2015: The company released FY2014 earnings overnight, with its net loss after tax and minority declining 54% to EGP 879 mn on revenues of EGP 6.5 bn. “Particularly notable is that we have not just swung to the positive on the EBITDA front, but we have done so in line with our guidance of EBITDA north of EGP 600 mn from a negative a year ago,” said Chairman Ahmed Heikal. “The mitigation of both financial and operational risk will key to our strategy,” noted Qalaa Managing Director Hisham El-Khazindar. The company plans to increase its stake in core assets, divest non-core assets as well as non-essential elements of some core businesses, engage in share buybacks to prop up shares trading at a “significant discount to their fair market value” and has appointed Renaissance Capital to explore the issuance of a convertible bond. (Earnings release here in pdf)

Drivers in Egypt will be required to buy gasoline using government-issued fuel smart cards starting 15 June, PM Mahlab decreed. Quantities sold will not be restricted, the decree noted. Fuel transport trucks will be paid at the actual cost that will be determined by the Ministry of Petroleum. 3.8 mn smart cardshave already been distributed from a targeted 5 mn, according EGPC’s deputy chairman, who signaled that motorists who do not have a card on them will be allowed to buy gasoline using a spare card each gasoline station will have. The smart card program’s roll out initially aims to gather data about fuel consumption patterns. The oil ministry’s spokesperson reiterated once more that there is no intention to raise the price of gasoline in the coming months.

The Islamic Development Bank issued a statement that “emphatically denied Bloomberg’s indication on its website that the Bank has demanded the Arab Republic of Egypt to pay its overdue debt before IDB could finance further projects.” The bank’s Chairman said Egypt “has one of the best portfolios and records of repayment with the IDB Group.” Locally, Naglaa Al Ahwany, the international cooperation minister said the IDB never asked Egypt to repay debts, dismissing what was reported in aBloomberg article this week.

Prime Minister Ibrahim Mahlab convened the weekly meeting of the Council of Ministers yesterday following the PM’s return from his trip to Indonesia. The decisions taken included.

  • Approving the deal with the Islamic Development Bank to finance the building of the passenger terminal in Sharm El Sheikh Airport. (Read in Arabic)
  • Approving a EUR 10 mn from Italy to support agricultural technologies. (Read in Arabic)
  • Delegating the oversight of EGP 414 mn water treatment projects to the Holding Company for Water Wastewater. (Read in Arabic)
  • Decreeing the mandate for the Ministry of Technical Education and Vocational Training. (Read in Arabic)

Sawari in talks with 11 foreign LPs interested in its USD 50 mn venture fund. Sawari partner Wael Amin says the minimum ticket size is USD 1 mn, and no investor will be allocated more than USD 10 mn, or 20%. The fund will begin deploying capital late this year and in the first half of 2016, Amin added. (Read in Arabic)

Local franchisee of Ace Hardware to invest EGP 1.2 bn in Egypt: The local franchisee of global chain Ace Hardware will invest as much as EGP 1.2 bn in Egypt over the next seven years as it looks to open some 30 stories, creating some 3,000 largely retail jobs in the process. The DIY shop opened its first outlet in Egypt yesterday, but media reports failed to specify where in their mortal fear that doing so might constitute “advertising” rather than a service to readers. (Read in Arabic)

Mike Coupe not employed at Sainsbury’s at time of deal, plaintiff allegedly paid Sainsbury with bounced cheques -statement: Sainsbury’s Plc issued a statement on Wednesday refuting claims by Amr El Nesharty, who alleged that his company Egyptian Distribution Group, also known as Edge, was insolvent after buying the company back 80% of its shares from Sainsbury’s. “Mike Coupe was not employed by Sainsbury’s at the time of the original business deal in 2001 and has never met the complainant … When Mr El Nasharty bought our interest in the Egyptian joint venture we had with him in 2001, he paid us with cheques that were dishonoured. Mr El Nasharty is now claiming that Mike was in Egypt on 15 July 2014 and seized these cheques, which is an impossibility … This process is being handled by our legal team and we do not anticipate it having any material operational or financial impact on the company,” the statement concludes. (Read the company statement or, regrettably, front-page coverage in the FT.)

WhatsApp voice has not yet been banned in Egypt, Telecommunications Minister Khaled Negm said. The voice calling feature is now active for users in Egypt.

Eni’s 1Q2015 profit beat analyst estimates recording EUR 648 mn, falling 46% y-o-y. “Upstream production is increasing and development plans supporting 2015-2016 production growth are in line with our forecasts,” Eni Chief Executive Officer Claudio Descalzi said according to Bloomberg. Eni expects gas sales to remain stable and sees an increase in refining volumes. New field start-ups and ramp-ups in countries including Egypt, Congo, and Angola, are seen to increase production along with a higher output volume projected from Libya.
Al Jazeera America subject of USD 15 mn discrimination lawsuit: A former employee of Al Jazeera America is suing the network for USD 15 mn, alleging that a manager with close ties to top executives discriminated against female employees and made disparaging remarks about Jews and Israel.” (Read)

***

A MESSAGE FROM PHAROS HOLDING

Pharoslive Launches New Educational Platform for Investors

Pharoslive is proud to announce the launch of its “Education and Tutorials” page, which will include a comprehensive media library of fundamental and technical analysis tutorials. With support and sponsorship from the heads of both divisions, the new page will aim to enhance independent investors’ knowledge of the market and facilitate their investment decisions.

Explore Pharoslive, or click here to head straight to the Tutorials page.

***

EGYPT IN THE NEWS

The lead story on Egypt in the foreign press this morning is news of 71 defendants being handed life sentences for their role in the August 2013 burning of a church in Kerdasa on the day of the Rabaa dispersal. The sentences were handed down by Nagy Shehata, with a great deal of those in absentia. The foreign press is confused as to the number of defendants: AFP, Reuters, and BBC report 69;Jurist and CNN state 71. The focus of the coverage is on the statements of the defense attorney, who says that the sentences are based on an absence of evidence, with no eyewitness identification of the defendants.

Also winning extensive coverage this morning is the jail term in Egypt handed to Sainsbury head Mike Coupe (see the Guardian, as a reference), which we covered in detail above.

In refreshingly positive news, The Blaze reports that the Muslim community in Menoufiya is helping to fund the construction of a church in their governorate dedicated to the Virgin Mary. (Read)

Egypt’s news in the news: Michael Sharnoff at Your Middle East has a wrap up of reactions in the Egyptian press to the Yemen war. (Read)

DIPLOMACY

Trilateral Summit in Cyprus:  President Abdel Fattah El Sisi, Cypriot President Nicos Anastasiades, and Greek Prime Minister Alexis Tsipras held a trilateral summit in Cyprus on Wednesday, according to a statement from Ittihadiya. President Anastasiades commended Egypt for its unwavering position in support of the unity of the island, and the leaders of the three countries issued the Nicosia Declaration, affirming enhanced cooperation between the three states, as well as the need to expose the sources of financial and political support for terrorist groups. While the demarcation of Greece’s maritime borders was a topic of discussion, (not noted in the statement) negotiations are still ongoing and a final agreement has yet to be reached, in part complicated by claims made by the Turkish government regarding the Aegean Sea.

Naglaa Al Ahwany received the Ambassador of South Korea in Egypt in celebration of 20 years of diplomatic relations between Egypt and South Korea, Al Mal reported.

OIL & GAS

NBE lends SinoTharwa and PMS USD 41 mn
Amwal Al Ghad | 29 April 2015
NBE is lending SinoTharwa and Petroleum Marine Services (PMS) a total of USD 41 bn, an informed source told Amwal Al Ghad. SinoTharwa is borrowing USD 26 mn to buy drilling rigs and PMS is borrowing USD 15 mn. SinoTharwa is also in negotiations with Bank Audi for a USD 30 mn loan to finance the purchase of rigs that will be used in a Ministry of Agriculture’s land reclamation project. (Read in Arabic)

EGPC uses up all of the credit facilities provided by NBE
Al Mal | 29 April 2015
EGPC used up all of the USD 2 bn in credit facilities allocated by NBE to purchase Kuwaiti crude, Al Mal was informed. The deal between EGPC and Kuwaiti authorities expires in 2016 and stipulates the shipment of 85 thousand barrels of crude per day, along with 1.5 mn tons annually of diesel and jet fuel. NBE said it is planning on marketing the financing of USD 600 mn of EGPC debts to banks. (Read in Arabic)

AUTOMOTIVE

14.9% rise in vehicle purchase in Q1 2015
Al Borsa (print) | 29 April 2015
Egyptian consumers purchased 72,100 automobiles in the first quarter of 2015, a 14.9% rise from the amount sold during the same period last year. Additionally, AMIC reported an increase of 14% Y-o-Y in private car sales to 48,900 cars in 1Q2015. Similarly, sales of buses and trucks rose by 23% and 14% respectively, reports AMIC. Lastly, Egyptians purchases of locally assembled reached 34,100, a 1% dip. Conversely, purchases of imported vehicles grew by 34.3%, climbing to 38,000 automobiles.

National Taxi Replacement Program Isn’t Stalled, Finance Ministry Says
Al-Masry Al-Youm | 29 April 2015
Tarek Awad, spokesman for the Finance Ministry’s Automobile Financing Fund, said yesterday there is no truth to media reports that the third phase of the national taxi replacement program (the so-called ‘white taxi project’) has been scrapped. The government announced Wednesday that the slowdown in the issuance of new loans is to give banks time to iron-out legal issues that arose in the first two phases. (Read in Arabic)

MANUFACTURING

Eastern Co to sell Geziret El Dahab land
Al Mal | 29 April 2015
The Eastern Company said it is prepared to move forward with selling the Geziret El Dahab land the company owns. The land has an area of 3,234 sqm and is expected to bring in EGP 9 mn. Eastern Co also decided to tear down a factory in Menouf and will rebuild it at a cost of EGP 4.5 mn. (Read in Arabic)

Chamber of commerce association and EU seek to establish EUR 60 mn solid waste treatment plant
Al Borsa | 29 April 2015
The Secretary General of the Federation of Egyptian Chambers of Commerce revealed that his organisation, in partnership with the European Union, seeks to establish a EUR 60 mn solid waste treatment plant. The waste treatment plant is part of the European Union’s Green Med Initiative, a project aimed at creating an environmentally sound and integrated waste management system throughout several Mediterranean countries. On a related note, the deputy governor of Alexandria revealed that her governorate produces 10,000 tons of garbage on a daily basis. (Read in Arabic)

REAL ESTATE & HOUSING

Ministerial council backs reclamation and development of 20,000 feddans in Farafla
Al Borsa | 29 April 2015
The ministerial council has approved a plan to reclaim 20,000 feddans in Farafla, and placed the Ministry of Housing and the New Urban Communities Authority in charge of developing the area. According to Al Borsa, 10,000 feddans have been designated for agricultural projects, which include farming and other related industries. The remaining land will be utilized to develop housing for the new residents and laborers. (Read in Arabic)

TOURISM

Tourism grows 4.4% in 2014, CAPMAS says
Al Borsa | 29 April 2015
Figures released by CAPMAS today reveal that tourism grew by 4.4% year on year in 2014, with 9.9 mn tourists visiting the country. Most of the tourists visiting hailed from Eastern Europe with 45.1% of arrivals, followed by Western Europeans who made up 31.6%, while tourists from the Middle East made up 13.6%. CAPMAS’s figures also demonstrate a drop 7.8% in the number of Arab tourists. (Read in Arabic)

TELECOMS & ICT

Mobinil sells tower subsidiary for reported EGP 1bn
Reuters | 29 April 2015
Mobinil announced the sale of its 99.99% stake in the Egyptian Company for Mobile Tower Services to Eaton Towers Egypt. Reuters reports that the deal is worth about EGP 1 bn. Mobinil reduced its losses by 80.2% in 1Q2015, Reuters reported. (Read)

Oppo launches after-sales services operations in Egypt Nasser City location
Al Mal | 29 April 2015
Oppo’s head of trademarking announced at a press conference yesterday that Chinese cellphone giant Oppo will begin operations in Egypt with the launch of a an after sales services, upkeep and maintenance store in Nasser City, ahead of the arrival of its first batch of smartphones to hit the Egypt market. (Read in Arabic)

BANKING & FINANCE

SFD increases credit limit for leasing companies
Al Borsa | 29 April 2015
The Social Fund for Development (SFD)  announced that it will increase the credit limit it offers for leasing companies to EGP 25 mn, instead of the current EGP 10 mn. Additionally, the SFD announced that it will raise its per project financing limit from EGP 2 mn to EGP 5 mn. (Read in Arabic)

Al Oula to form a new EGP 50 mn leasing company
Al Mal | 29 April 2015
Hassan Hussein, chairman of Al Oula – El Taamir for Mortgage Finance, announced in an interview that his company plans to launch a new EGP 50 mn leasing company in addition to a new real estate investment company without having to go to its shareholders. The move, which gained the approval of Al Oula’s ordinary general meeting, comes after the company underwent an overhaul and a comprehensive restructuring of its administration and management, which has led to growth of share value from 5.5% to 10%. (Read in Arabic)

Arab Investment Bank calls on SFD to partner up on Enma
Al Mal | 29 April 2015
Arab Investment Bank chairman, Hany Seif, has reached out to the Social Fund for Development to become a partner in “Sharia-compliant” leasing company, Enma. Seif stated that the new company will engage in buying manufacturing facilities and leasing out their usage. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Minister of Commerce and Industry set to restructure export councils
Al Borsa | 29 April 2015
Egypt’s Minister of Commerce and Industry intends to restructure the government’s various export council, reports Al Borsa. The decision comes on the back of a sharp decline in Egyptian export in the first quarter of 2015. According to a report, one of the reasons behind Egypt’s dip in exporter is a lack of government support. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Canadian companies signed USD 7 bn in deals with Egypt, Lulashnyk says
Al Mal, Al-Borsa | 27 April 2015
Economic ties between Canada and Egypt are set to become much closer after Canadian companies signed USD 7 bn in deals to invest in Egypt at the EEDC, Ambassador Troy Lulashnyk believes. At a meeting with the Canadian Chamber of Commerce in Cairo, the ambassador praised the new investment law, saying it could have a significant impact on the investment climate. Canada is sanguine about Egypt’s economic prospects with Lulashnyk reiterating his country’s support of Cairo and noting the pledged USD 60 mn education and vocational training aid package. Canadian investments inked in Sharm include a USD 5 bn deal with SkyPower IGD to generate up to 3 GW of solar power and hotel agreements with Fairmont worth an additional USD 2 bn, claims Al-Borsa. (Read in Al-Mal or in Al-Borsa)

ON YOUR WAY OUT

Egypt needs USD 300 more to finish building the Grand Egyptian Museum, which, when first announced, was originally set to open this year, according to Egyptian Streets.

Phosphate spill cleaned up?: Al Mal reports that the Minister of Environment says the state has yet to finish cleaning up the spill of 500 tonnes of phosphate dumped into the River Nile more than a week ago after the ship carrying it capsized. Al Borsa, however, is reporting that efforts to recover the barge itself are complete and that the cargo itself has been cleaned up, while Ahram Online notes the barge has been recovered, but makes no mention of the cargo.

State employees may see their maximum tax exemption upped, according to an advisor at the Ministry of Planning, who noted that income becomes taxable today when it crosses the EGP 13,000 threshold, Al-Mal reports.

Cairo Metro’s third line has resumed full operations, the Minister of Transport announced. Repairs at the Abbassiya station were completed yesterday and the train that crashed there on Sunday was removed. The National Authority for Tunnels said the accident caused some USD 52 mn in damage as well as USD 3 mn in forgone revenues from not operating the line at full capacity.

Housing and Development Bank Chairman Fathi El Sebai announced that the bank has financed some 4,000 housing units worth a total of EGP 330 mn at an average interest rate of 7%, on the back of the CBE’s push banks to expand their mortgage finance portfolios. (Read in Arabic)

The civil war Syria had a mixed effect on Lebanese trade, a World Bank report suggests. “The war seems to have affected neither merchandise nor services exports at the aggregate level… merchandise imports have been stable through the crisis… the data also suggests that Lebanese trade seems to have been less negatively affected by the Syrian war than other neighbouring countries,” the report posits.

BY THE NUMBERS

USD CBE auction (Wednesday, 29 April): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Wednesday, 29 April): 7.699 (Bloomberg poll, +0.01 from Tuesday, 28 April)

EGX30 (Wednesday): 8,488.49 (+1.90%)
Turnover: EGP 530.5 mn (6% below the 90-day average)

WTI: USD 58.64 (+0.10%)
Brent: USD 65.53 (-0.47%)

TASI: 9,812.4 (+1.0%)
ADX: 4,678.7 (+0.1%)
DFM: 4,215.2 (+0.8%)
KSE Weighted Index: 434.3 (+0.1%)
QE: 12,248.4 (+0.3%)
MSM: 6,314.1 (-0.1%)

 

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.