Egypt ranks as ‘follower’ on Huawei index. PMI due out this morning. CBE floods market with greenbacks. Organ donation to become possible next year? Tender for second LNG terminal is out. Tourism arrivals to rise 20%. Gov’t wants affordable internet.

WHAT WE’RE TRACKING TODAY

The HSBC / Markit Economics PMI for Egypt (as well as those for KSA and the UAE) are due out at 7:30am CLT this morning. The releases, in pdf format, will be available for download here when they drop; we’ll have additional coverage this morning.

The two-day Euromoney Saudi Arabia Conference gets underway on this morning Al Faisaliah Hotel, Riyadh. Event details here.

WHAT WE’RE TRACKING THIS WEEK

Shares of Integrated Diagnostics Holdings (IDH), the Abraaj-assembled medical diagnostics group, are due to begin conditional trading on the London Stock Exchange tomorrow with an initial market cap in the USD 580-670 mn range. EFG Hermes and Deutsche Bank are joint global coordinators for the transaction; EFG Deutsche and Citi are serving as bookrunners. In related news: Market conditions appear to have prompted Nile Sugar Co. to push its IPO back six months, Al-Borsa reports.

Minister of Industry and Trade Mounir Fakhry Abdel Nour will visit Milan to promote trade and investment on Thursday, 7 May, the same day the UK heads to the polls in what many analysts see as the most closely-fought general election in a generation.

LAST NIGHT’S TALK SHOWS

Prime Minister Ibrahim Mahlab spoke to Lamees El Hadidy on the phone covering a number of topics including contaminated water, prices hikes, corruption, the investment law and the EEDC. Asked whether a cabinet reshuffle was on the horizon, he said, “I’ve not heard anything about that.”

Is he was happy with the performance of his cabinet? “Of course I’m not happy with everything. I have concerns about certain things but all in all I can say that I’m happy. I can honestly say that everyone is doing their best, the question is whether or not their best is good enough.”

According to Mahlab, the government will deliver on all promises and commitments made during the EEDC and he is personally following-up on progress on a weekly basis. He also claimed that the executive regulations for the new Investment Law will be ready within a couple of weeks. As for corruption, El Hadidy asked, to what extent the government has put its hands into the hornet’s nest. Mahlab said, “Corruption won’t disappear overnight, but we have the will and the means to fight.”

El Hadidy’s studio guest was the legendary former NASA geologist and current Boston University professorDr. Farouk El Baz, who had just met with President Abdel Fattah El Sisi to discuss education and healthcare reform. El Baz is a member of the Presidential Advisory Council of Scientists and Experts.

“There will be no real development without reforming our system of education. Judging by what other countries that were in a similar state have gone through, it will take about 10 years before we can see any real results,” said El Baz. He and other members of the Council have proposed the establishment of the Egyptian Council for Education, an independent body that sets strategy and supervises its implementation. The Ministry of Education’s role would be to implement.

Amr Adeeb and Rania Badawi waged war against price increases and the wasteful habits of Egyptians last night. “Last Ramadan we imported EGP 43 bn in food products. This is beyond ridiculous in a poor country like Egypt, and it seems we are about to do the same thing again this year, as the government wants to guarantee that there are no shortages,” said Badawi.

“If you are unhappy with the price of a particular product, the solution is very simple: Don’t buy it,” said Amr Adeeb. “We don’t have to eat watermelon if it costs 50 pounds, we don’t have to eat tomatoes if we think they are too expensive. If we boycott certain products and even certain markets, the merchants will be chasing us to sell at lower prices. Let’s play a more active role. The government can’t do anything for us. It’s all about supply and demand,” said Adeeb. “As consumers we have to be aware of market dynamics and look for the best value. How many of you know the prices of individual items. We need to have a system where things are priced per item, not necessarily per kilo. This is what they do abroad. It’s not unusual to see someone buying one apple and one small bottle of water in supermarket. No one would dare do such a thing here. We like abundance, waste is part of our culture. We need to be more practical.”

Youssef El Housseiny questioned the timing of the verdict from the State General Assembly granting former President Hosni Mubarak and his wife Suzanne all the privileges of a former President. “With all due respect to the authorities who came to the conclusion that this was the appropriate action towards a President that was deposed through a popular uprising, why was the announcement made on Mubarak’s 87the birthday,” asked El Houssieny.

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SPEED ROUND

The CBE said it sold USD 500 mn in the interbank market to ensure demand for strategic food commodities is met as Ramadan approaches, Reuters reports. The CBE’s press release (in PDF) said “the sale will be directed to cover the amounts reported by banks as of April 30, 2015.” The news comes as mania over rising prices — blamed variously on FX shortages, price gouging by merchants, global commodity prices and everything in between — sweeps the local press. The latest example: Al-Ahram’s front-page screamer this morning, headlined ‘Price Rise Fever Hits the Market‘.

CIT minister’s campaign to make internet more affordable continues: CIT Minister Khaled Negm denied ISPs are refusing reducing their prices. Negm insisted that internet prices in Egypt will be linked to the average monthly incomes saying it is unacceptable that Egyptians have to spend 10% of their income on internet service while this ratio is just 1.7% in Tunisia. The new internet prices will be set at National Telecommunications Regulatory Authority’s first meeting next week, Amwal Al Ghad reported. Unnamed sources told Al Mal that the minister intends on keeping Khaled El Alayly as the head of the NTRA until mid-July, after which Negm will make a decision on whether to extend El Alayly’s tenure or not. In related news, Dr. Khaled Sherif, Chairman and co-founder of Cequens, was appointed deputy minister of communications and information technology under Negm.

Egypt ranked as “Follower” on Huawei Global Connectivity Index: Egypt ranks 36th behind Venezuela and ahead of both Colombia and Turkey in Huawei’s inaugural Global Connectivity Index (GCI). The Chinese equipment maker, looking to play the content marketing game with the big boys, is “benchmarking 50 economies in terms of connectivity, ICT usage, and digital transformation, providing an indicator of which countries are best poised for development and growth, and an ICT planning reference for policymakers looking to embrace the digital economy.” Notable: “Turkey, Romania, and Egypt represent the least aggressive countries investing in ICT as it relates to the strength of their overall economy.” Al-Mal has picked up the story. Check out the index’s landing page (with a video and background) or jump straight to the white paper (pdf).

GDF Suez Engie targets USD 7 bn in renewable energy projects regionally: We’re having a particularly hard time remembering to call GDF Suez “Engie“. That said, the company is pressing forward with its reinvention as a renewable energy play, saying it will invest USD 7 bn in Egypt, Oman, Kuwait, and Saudi Arabia over the next two years. The company has allocated USD 350 mn until 2017 to invest in wind farms and solar energy projects in Egypt. In addition, Engie will bid for the Gabal El Zeit 250 MW BOO wind farm as part of a consortium that also includes OCI and Toyota. The company awaits the finalization of deals with the Egyptian Electricity Transfer Company describing the presented regulations as “good” but asking for amendments regarding dispute resolution and payment mechanism. (Read in Arabic)

MESIA Renewable Energy Trade Mission debrief: 7 solar and wind agreements signed at a value of USD 500 mn. Egypt signed renewable energy deals for 350 MW of power during the MESIA Renewable Energy Trade Mission last week, according to a statement released yesterday by the industry association. The deals, worth a combined USD 500 mn, covered five solar plants and two wind projects. OCI, Alfanar, Access Power, and Sun Infinite each signed for separate 50 MW solar plants, with Gila Al Tawakol Electrical signing an MOU for a 20 MW facility. OCI and Alfanar also each signed an MOU to build 50MW wind power plants.

Hokair, Housing Ministry to enter arbitration on Mall of Arabia Land: The Housing Ministry is taking its side of the story to the press in the ongoing dispute with Al-Hokair’s Egyptian Centers over the withdrawal of land for the second phase of the Mall of Arabia. Al-Borsa claims the ministry welcomes arbitration talks and is pressing the company to come to terms, alleging that Egyptian Centers has not lived up to the terms of a 2012 settlement agreement.

CBE’s Ramez on CBC: Central Bank Governor Hisham Ramez told CBC’s Lamis El-Hadidi last night thatforeign reserves stood at USD 20.4 bn, adding that the 2.5% interest on GCC deposits was generous when compared to other countries. On a side note, when pressed on the issue of financial fraud, he stated that any institution claiming to offer 15% interest rates is fraudulent and must be reported. (Read in Arabic)

Daesh mortar attack on military base near Rafah: Details are still very sparse regarding an apparent attack by Daesh militants against a military base near Rafah that took place on Monday. The AP reports there was “no immediate word on casualties. Security officials say explosions rocked the Central Security base in the border town of Rafah around noon on Monday after attackers fired mortars targeting the camp. The officials say that fierce clashes are underway between the militants and security forces.” Jihadi monitoring serviceSITE reported that Daesh was posting pictures online purporting to be from the attack.

After closing 2014 as the hottest bourse in the world, the Egyptian Exchange was the 8th-worst performing stock market in 1Q2015, reports Al Borsa. The EGX30 has dipped by more than 3% during this period.

A delegation from Chinese multinational CNC met with the governor of Dabaa and other government officials to discuss possible cooperation on the development of Egypt’s first nuclear power plant, reports Al Mal.

Blue Mosque restoration complete: The restoration of the 14th century Amir Aqsunqur “Blue Mosque” in Al Darb Al Ahmar was completed by the Aga Khan Trust for Culture (AKTC). The restoration project began in 2009 and is part of the broad revitalization project undertaken in Islamic Cairo by AKTC. You can view pictures of the restored mosque here.

Indonesia bans ‘export’ of maids to 21 MENA countries: Fresh off its latest mass execution of drug offenders (including the killing of a man so psychologically disturbed he wasn’t aware he was being killed until the very end), Indonesia has banned the travel of domestic help to 21 Arab countries, including Egypt, Saudi Arabia, the UAE and Lebanon. The ban, which goes into effect in three months’ time, comes as “Indonesian maids in the Middle East countries have been subjected to violations of labor norms and human rights, ‘and even human trafficking,’” the WSJ quotes Indonesia’s minister of manpower and transmigration as saying.

Behind closed doors, allegations of shocking decisions at Egypt’s startup competitions: Con O’Donnell, founder of digital media company Sarmady and the website Elwafeyat and now a renowned angel investor, serves up a critique of the irregularities of the judging process behind Egypt’s startup competitions. “At RiseUp Summit in the GrEEK Campus last year, I was a judge in a pitch competition (Startup MENA) and this is exactly what happened. The best pitchers (and possibly best businesses) were thrown off the table because ‘they didn’t need the small cash prize nor the exposure’ — even though the judges had marked them as the best (according to the criteria on the scoresheet).” (Read)

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A MESSAGE FROM PHAROS HOLDING

Pharos Research Comments on CBE Statements

Recent statements from the CBE governor in relation to Egypt’s FX market were met with slightly raised eyebrows at Pharos Holding Research this week. An MPC meeting on 23 April left interest rates unchanged, despite expectations of a 50 bps cut and a second administered round of EGP depreciation against the USD, which Pharos believes is vital to the success of a USD1.5 bn Eurobond issuance slated for mid-2015.

The CBE’s governor also reiterated the authority’s commitment to maintaining the FC cash deposit cap at USD 50,000, effectively sealing the exchange rate with a hard peg in the USD 7.6-7.63 per EGP range. Nonetheless, the EGP is still expected to weaken against the USD later this year, especially since any possible deals with the IMF would call for a more flexible exchange rate regime. Click here for more commentary on the CBE’s latest resolutions.

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EGYPT IN THE NEWS

Egypt’s re-authorization of military deployment in Yemen for another three months is the lead story on Egypt in the foreign press since yesterday and leading into this morning.

In other news: BBC News carries a short video feature on Sessa Abou Douh, the Egyptian woman who has been living as a man for 42 years in order to be able to find work to support her family following her husband’s death. (Watch in Arabic with English subtitles, running time: 2:14)

Bassem Youssef took over BBC News, giving his take on current events in a short segment. (Watch, running time: 1:54)

New anti-govt youth movement ‘Al-Bedaya’ stirs public debate in Egypt: The Iranian propaganda factory reports on Al Bedaya [The Start], a relatively new youth movement that alleges it is neither pro- nor anti-Islamist, and which does not have as its goal the toppling of the regime, but rather seeks police and anti-corruption reform. The video notes, however, that the movement is open to accepting Ikhwan youth into its fold. The group’s Facebook page has 15,000 likes, which is the rough equivalent of the number of people accepting free samples from Panda House at the mall while deciding on what to order. (Watch embedded video, running time: 2:10)

Headline in last week’s South African press: “Heated debated [sic] over disdain shown to SA by rogue states like Israel, Egypt”: With regard to Egypt, the article takes up the case of Sheikh Abdus Salaam Bassiouni, an Egyptian with South African citizenship and founder of the Al Tawheed Islamic Centre in Johannesburg and who has allegedly been detained in Egypt following his visit in December 2014 for a family engagement. Bassiouni, another article alleges, was detained under suspicion of belonging to the Ikhwan. From Cape Times, 29 April: “In the diplomatic stand-off that seems to be playing out behind the scenes following widespread media coverage of Bassiouni’s unjust detention, Egypt’s envoy to South Africa, displaying arrogance, has told the Department of International Relations and Co-operation (Dirco) to literally go to hell. What is it about Egypt’s ties with South Africa that a low-ranking functionary of the military junta is able to … contemptuously show his middle finger?” (Read)

WORTH READING

Implementation of law governing organ donation from the deceased offers lifeline to those in need, as well as to the vulnerable whose organs are either sold or stolen: According to Hussam Abdel Ghaffar, chief spokesman for the Ministry of Health, a law governing organ transfers for transplant operations from the deceased exists but has yet to be implemented, as reported by Al Mal. A framework to regulate and monitor the procedures for the transfer and donation of organs in Egypt is expected to be concluded this year, with organ donations reportedly set to begin by the end of the year. EIPR notes that the law was originally passed in 2009.

There is a great deal of confusion on the permissibility of organ transplants from the deceased among Muslims, despite the UK’s NHS citing Al Azhar as explicitly stating it is acceptable, along all other respected Islamic bodies also being in agreement.

As a result, transplants in Egypt have almost entirely come from the living, who sell their organs because of their economic deprivation. EIPR notes: “A report issued by an international organization that monitors and documents organ trafficking … adds that those who agree to these donations, in return for money, are motivated largely by poverty. Moreover, 78% of them spend the money they receive for the operation in the subsequent five months to pay off debts rather than to improve their health … The donor might also suffer complications, which is why some countries do not allow living donations and rely on deceased donations … At the same time, organ trafficking and transplant tourism are widespread in Egypt, although there are no accurate figures on the scope of the phenomenon, or the number of beneficiaries.”

In addition, refugees travelling through Egypt on their way to other countries have fallen prey to organ traffickers, as noted by CNN among others. “It’s like spare parts for cars,” the Bedouin, who later agreed to meet one member of the CNN crew in person, said sarcastically toward the end of the interview.” (Read EIPR’s 24-page report Organ Transplant Legislation: From Trade to Donation)

On the Housing ministry’s controversial imposition of a “compound culture” in Upper Egypt:Due in no small measure to the Housing Ministry’s lack of imagination, a compound culture has grown to dominate policy concerning the establishment of new communities. And sure enough, the Housing Ministry now envisages and plans to invest in a series of new compounds in Upper Egypt, running the gauntlet from “New Fayum” to “New Sohag.” Thankfully, members of the private sector including Essam El Gamal, chairman and head of marketing of Egypt Holland Real Estate Developers, have expressed grave concerns for this policy. Besides the obvious economic unsoundness of this policy — mainly due to the fact that most residents of these cities cannot afford to reside in such compounds — El Gamal points to the culture of privacy and modesty prevalent in these communities that draws them away from relatively ostentatious endeavors such as these. He also discusses the hurdles his company has faced marketing similar projects in Aswan. (Read in Arabic)

WORTH WATCHING

A war of words between the Egyptian and Saudi media began almost immediately following the coalition airstrikes in Yemen. In the latest clip: Jamal Khashoggi, the prominent Saudi journalist and former general manager of Waleed Bin Talal’s now-defunct Al Arab news channel, slams the Egyptian media for comments made about KSA in the context of the Yemeni war. Khashoggi notes Ibrahim Eissa, in particular, in this interview on Saudi television and calls on the Saudi embassy in Cairo to file lawsuits against offending journalists, saying that unlike Malaysia, Turkey or Pakistan, the Egyptian press is not free, and can be controlled with a telephone call. (Watch in Arabic, running time: 2:30)

DIPLOMACY

President Abdel Fattah El Sisi met yesterday with a U.S. Congressional delegation led by House Permanent Select Committee on Intelligence Devin Nunes. The discussion covered the situation in Libya, the ongoing war against terror, and recent developments in Egypt. Attending on the Egyptian side were Minister of Foreign Affairs Sameh Shoukry, General Intelligence Directorate chief Khaled Fawzy. Ittihadiyya’s readout on the meeting is front-page news in Al-Ahram this morning.

Also on Tuesday, the President met with Germany’s Foreign Minister Frank-Walter Steinmeier, where they discussed plans for the President’s upcoming state visit to Germany in June. The discussion reportedly focused on the need for political solutions to the crises in Libya and Syria, as well as a concerted international effort to fight terrorism.

Supply and Domestic Trade Minister Khaled Hanafy will deliver Egypt’s speech at the Arab Economic Forum in Beirut on behalf of Prime Minister Ibrahim Mahlab today, Al Ahram reported.

Senegal to join anti-Houthi coalition: According to an announcement made by Senegalese Foreign Minister Mankeur Ndiaye, Senegal will send 2100 troops to join the Saudi-led anti-Houthi campaign. The reason? The coalition is vital to the protection of the holy sites of Mecca and Medina. The move comes after a state visit by Senegalese President Macky Sall to Saudi Arabia. The story was picked up by Al Mal in Arabic and Al Arabiya in English.

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Taqa Arabia to invest EGP 750 mn during current fiscal year
Daily News Egypt | 03 May 2015
Taqa Arabia plans to invest EGP 750 mn during the current fiscal year, revealed Khaled Aboubakr, the company’s chairman. Of this amount, EGP 250 mn of will be self-funded, while the remainder will be sourced from banks. The company plans to invest EGP 375 mn on delivering natural gas to residences, EGP 300m on the construction of power plants, and EGP 80 mn on building gasoline stations. The company plans to deliver gas to 150,000 residential units within five years, concluded Aboubakr. (Read)

Cairo Solar secures USD 55 mn to finance solar power plant
Al Borsa | 03 May 2015
Cairo Solar announced it has secured a total of USD 55 mn to fund the construction of a solar power plant. The funding, which presents over three quarters of the total projected cost will be provided through CIB, IFC, and EBRD. Cairo Solar will decide on the details of the project next week and will discuss contractual issues relating to pricing and payment. The process of forming Cairo Solar’s official renewable energy company, as per the NREA’s regulations, will be completed next week. (Read in Arabic)

Electricity ministry says prices were raised to reduce the sector’s indebtedness
Amwal Al Ghad | 04 May 2015
Electricity prices were increased to help repay the electricity production sector’s indebtedness, the Ministry of Electricity’s spokesperson said. Prices charged have remained stagnant for a long time and this drove the increase in the sector’s indebtedness. 57% of all households’ consumption tiers will not be affected by the price increases. (Read in Arabic)

NREA studying possible wind turbines manufacturing joint venture with Siemens
Al Mal | 04 May 2015
According to Mohamed El Sabaky, head of the New and Renewable Energy Authority, the NREA is currently conducting feasibility studies on the construction of a wind turbine manufacturing facility in Egypt, in partnership with Siemens, after a MoU was signed between them during the EEDC. Among the key issues being explored are the modes with which to finance the EUR 2 bn facility. (Read in Arabic)

OIL & GAS

Egypt issues tender for second LNG import terminal -gas board official
Reuters | 04 May 2015
Egypt has issued a five-year tender to lease a second liquefied natural gas (LNG) import terminal, the head of the state gas board told Reuters on Monday. “We launched yesterday a tender to lease a second LNG import terminal for a period of five years. We have sent it to eight international companies and we expect to get a reply within a week,” Khaled Abdel Badie said in a telephone interview to Reuters. (Read)

BASIC MATERIALS & COMMODITIES

Seed and grain logistics hub grabs attention of investors
Al Borsa | 04 May 2015
More than 12 companies have submitted formal offers to invest in the government’s envisioned international logistics hub in Damietta, exceeding the estimated EGP 13.1 bn capex for the project, revealed Khaled Hanafy, the Minister of Supply and Internal Trade. The hub will as a center for the storage, trade, and manufacturing of grains and seeds, added the minister. The ministry is putting its finishing touches on the legal status of the project before presenting to it to cabinet for approval, added Hanafy. (Read in Arabic)

MANUFACTURING

NCC will raise production capacity to 3.1 mn tons upon adding two furnaces this month
Al Borsa | 04 May 2015
According to Saeed Abdel Moty, the commissioner of the National Cement Company (NCC), the launch of its third and fourth furnaces this month will boost the company’s cement and clinker production capacity by 85% to reach 3.1 mn tons per year. The commissioning of these furnaces came as a result of a EGP 1 bn investment. (Read in Arabic)

HEALTHCARE

Pharco to open a USD 25 mn new production plant in June
Amwal Al Ghad | 03 May 2015
Pharco said it is planning on opening a new production plant at Borg El Arab in June. The new plant has an investment cost of USD 25 mn. Pharco is targeting to treat 370-500 thousand hepatitis C patients annually. (Read in Arabic)

TOURISM

Misr Travel targeting EGP 62 mn in profit next fiscal year
Al Borsa | 04 May 2015
Misr Travel is targeting EGP 62 mn in profits in FY2015/16, according to the company’s Chairman. This fiscal year, Misr Travel in on target to record EGP 13 mn in profit. The profit is a turnaround from FY 2013/14 loss of EGP 59 mn. (Read in Arabic)

Minister of Tourism predicts a 20% increase in tourist numbers in 2015
Aswat Masriya | 04 May 2015
There will be 20% y-o-y increase in the number of tourists who visit Egypt in 2015, predicted Khalid Ramy, the Minister of Tourism. Approximately 2.15 mn tourists visited Egypt during the first quarter of this year, a 6.9% increase on the same period last year. Flight and hotel reservations suggest that 12 mn tourists will visit Egypt by the end of 2015, a sharp increase from the 9.9 mn achieved in 2014, but still a far cry from 14 mn the ministry registered in 2010. “We would like country’s tourism industry to generate USD 26 bn by 2020,” added the minister. In 2014, Egypt’s tourism revenues stood at USD 7.3 bn. (Read in Arabic)

BANKING & FINANCE

FEB considers providing banking services to Egypt Post customers
Al Borsa | 03 May 2015
The Federation of Egyptian Banks (FEB) is considering providing Egypt Post’s customers with banking services. FEB says it is considering providing personal loans, car loans, and electronic payment services. The federation is seeking to increase cooperation with Egypt Post because of its large customer base and said it is seeking to finalise a cooperation protocol. (Read in Arabic)

NBE lends Pico Petroleum EGP 420 mn
Amwal Al Ghad | 03 May 2015
Pico Petroleum has borrowed EGP 420 mn from NBE. NBE’s oil and gas credit portfolio has grown to EGP 36 bn as of March 2015 from EGP 26.9 bn at the end of June 2014. The bank has also recently lent SinoTharwa USD 26 mn as well as USD 15 mn to Petroleum Marine Services. (Read in Arabic)

NREA in negotiations with four banks to borrow USD 300 mn
Al Mal | 04 May 2015
The New & Renewable Energy Authority (NREA) is in negotiations to borrow USD 300 mn, according to the head of the authority, Mohamed El Sobky. NREA’s negotiations are taking place with four banks: CIB, KFW, AFD, and EBRD. The funding will go towards funding a 200 MW wind farm in the Gulf of Suez. (Read in Arabic)

Heavy equipment account for 71% of leasing
Al Mal | 04 May 2015
Heavy equipment leasing retained its number one position in terms of leasing activities in the first quarter of 2015, as its EGP 5 bn in leasing agreements accounted for 71% of all leasing in the sector. This demonstrates a staggering growth in demand as 1Q14 leasing for heavy equipment only accounted for 7.6% on the back of only EGP 105 mn in contracts. Heavy machinery came in second at 8.3%, while real estate leasing dropped to third place, at 7.6%. (Read in Arabic)

Suez Canal Bank profits grow to EGP 205 mn
Al Mal | 04 May 2015
Suez Canal Bank chairman and managing director, Tarek Kandil, announced at the bank’s ordinary general meeting that the bank’s net profits grew 30% year on year during full year 2015 to reach EGP 205 mn. This comes as the bank’s assets grew 11% to EGP 2 bn, while deposits also witnessed a growth of 15%, reaching EGP 2.1 bn in 2014. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Qalaa Holdings plans to increase its stake in five companies
Al Borsa | 04 May 2015
After raising its capital from EGP 8 bn to EGP 9.7 bn, Qalaa Holdings is awaiting approval from regulatory bodies to increase its stake in five of its core subsidiary companies, reports Al Borsa. Upon receiving approval, the holding company’s stake in each of the five subsidiaries will be: Egyptian Refining Company, 18.9%; Mashreq Petroleum, 71.3%; Tawazon, 68.1%; Nile Logistics, 67.6%; and ASEC Cement, 69.2%. (Read in Arabic). On a related note, Qalaa Holdings has extended its deadline for receiving offers for the purchase of its subsidiary Rashidi Al Mizan to May 28. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Mahlab calls for food safety law
Amwal Al Ghad | 03 May 2015
PM Mahlab has called for the drafting of a food safety law and to have it presented to the cabinet of ministers as soon as possible. The PM’s request came during his meeting with representatives from the Federation of Egyptian Industries. The meeting was to discuss resuming operations at halted business and address comments and suggestions. (Read in Arabic)

AfDB considers funding the construction Abu Rawash water treatment plant
Amwal Al Ghad | 04 May 2015
The African Development Bank (AfDB) is considering extending USD 80 mn in credit to finance the Abu Rawash water treatment plant, Amwal Al Ghad was informed. AfDB is still assessing the project and the financing considered would come from the USD 450-500 mn allocated for Egyptian projects. The EBRD is finance the project with EUR 100 mn and domestic banks are set to provide around EGP 4 bn in funding. The Abu Rawash water treatment plant will be built on a PPP basis and set to increase the existing plant’s capacity to 1.6 mn cubic meters per day from 1.2 mn currently. (Read in Arabic)

REGIONAL

Saudi Arabia reduces airplane fuel for all airlines landing in the Kingdom
Al Borsa | 04 May 2015
The Saudi cabinet approved today a plan by the Civil Aviation Authority to reduce the price of fuel across its airports. The cabinet ordered Aramco to reduce airplane fuel prices (which is fixed by the international market price) to airlines by SAR 0.15 per liter at King Abdel Aziz and King Khaled International airports, and by SAR 0.20 per liter at all other airports. (Read in Arabic)

ON YOUR WAY OUT

Juan Carlos Garrido out at Al-Ahly: The storied football team sacked its general manager on Monday in the wake of the Red Devils’ 4-3 loss on penalties to Moghreb Tetouan in the CAF Champions League round of 16 on Saturday. Fathi Mabrouk, the club’s youth squad manager, has taken the helm, as he has on previous occasions, Ahram Online reports.

Egyptian companies eyeing Ethiopian automotive, food industries: Assefa Endeshaw, the economic counselor at the Ethiopian embassy in Egypt, claims a number of Egyptian businesses are looking to invest in his country’s automotive industry, with others reportedly kicking the tires on deals in the food sector. (Read in Arabic)

BY THE NUMBERS

USD CBE auction (Sunday, 03 May): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Monday, 04 May): -no quote-

EGX30 (Monday): 8,652.12 (+1.04%)
Turnover: EGP 485.6 mn (14% below the 90-day average)

WTI: USD 58.83 (-0.17%)
Brent: USD 66.35 (-0.15%)

TASI: 9,787.0 (+0.2%)
ADX: 4,553.6 (-1.4%)
DFM: 4,084.4 (-1.2%)
KSE Weighted Index: 433.4 (-0.6%)
QE: 12,123.2 (-0.6%)
MSM: 6,342.3 (+0.4%)