Justice Minister resigns over classist remarks. Piraeus Bank Egypt is up for sale. T+1 trading coming? Fahmy sues Al-Jazeera. Oil Ministry opening door to fracking? El-Sisi to speak to the nation tonight. Cement plants operating at half capacity.

WHAT WE’RE TRACKING TODAY

President Abdel Fattah El Sisi will make a televised address to the nation tonight, Al Mal reports. No further details were available at time of writing other than that the president would address both foreign and domestic issues.

Finance Minister Hany Dimian’s will speak on “Fiscal Policy…between Limited Resources and Aspirations of the Future” at the Semiramis Intercontinental Hotel. Registration for the Canada-Egypt Business Council event begins at 5 pm local Cairo time, with a discussion and Q&A beginning at 6.

We have special coverage today of a top renewable energy conference held late in April in Rome. Egypt was in the spotlight, and we have a treasure-trove of videos from the gathering. If you’re interested in renewable energy, it’s reasonably meaty. See our Spotlight section after Diplomacy, below.

WHAT WE’RE TRACKING THIS WEEK

From Wednesday through Thursday, the MENASOL 2015, Middle East & North Africa Solar Conference and Expo will be held in Dubai. Heads of all major solar players and renewable energy public officials from Egypt, the UAE, Morocco and others will be in attendance. View the official event page here for more details.

From Thursday to Friday, the EBRD will hold its Annual Meeting and Business Forum. Dr. Mohammad Omran, chairman of the EGX, is set to be a speaker at the event, according to a statement from the bourse.

On Saturday, verdicts are expected in two separate trials of Mohamed Morsi: one for espionage and the other for his escape from prison in 2011.

Also on Saturday: TEDxCairo: Continuum at the AUC’s New Cairo Campus. View the event page here.

LAST NIGHT’S TALK SHOWS

The message on Lamees El Hadidy’s show last night was loud and clear: The guilty party is Al Jazeera, not the three journalists on trial in the court case known as the “Marriott Cell” trial.

Mohamed Fahmy, one of the three journalists in the defendants’ cage, was El Hadidy’s guest. It is safe to say that at by the end of the lengthy interview Fahmy, who held a press conference earlier in the day to announce that he was suing Al Jazeera for USD100 mn in damages in a Canadian court, had Egyptian public opinion firmly on his side.

Fahmy made clear where he stood with statements including: “Today I am officially declaring war on Al Jazeera” and “my Egyptian nationality means a lot to me, getting it back is my top priority.”

I may have exercised bad judgment by taking the job with Al Jazeera in the first place, but I did not fabricate report. I am not a supporter of Ikhwan, and I did not do anything wrong. The wrongdoing was on the part of the network, not me,” said Fahmy.

“Al Jazeera has already issued statements that I am under the influence of the Egyptian government, but I assure you I am acting independently. My former employers are playing a very dangerous game,” explainedFahmy. “But I have great Canadian lawyers on my side. I will win and I will prove my innocence.”

On life in prison, Fahmy said, “Baher and I were in the terrorist wing of the Scorpion prison for the first month. I can’t say that we were mistreated, but it was a rough place that we shared with the likes of theMorshed [supreme guide of the Ikhwan] and [salafist fringe leader] Hazem Abu Ismail. They welcomed me in the beginning, but when Naguib Sawiris and Amr Moussa started testifying in my behalf, they realized that I wasn’t one of them. [Co-defendant] Baher [Mohamed] and I used to hold our own nightly talk show in prison. Abu Ismail is a popular guy, a ring leader. There was also the Jihadist called El Sheikh Morganwho wanted to blow up the pyramids. When I asked him what he thought of the ikhwan one night, he said, ‘We told them to cut off the heads of their enemies as soon as they came to power, but they didn’t listen.’”

“The clock stopped for these people on 3 July [2013],” he added.

Asked how he could afford Amal Clooney as a lawyer, Fahmy said, “She and my entire legal team gave me a huge discount, but I have paid all legal fees out of my own pocket. From day one, I have refused Al Jazeera’s lawyers as it became clear that they were not interested in our well-being, simply in furthering their own cause.”

At the end of the interview, Fahmy made a personal appeal to President Abdel Fattah El Sisi to give him back his Egyptian citizenship.

Midway through the interview with Fahmy, Prime Minister Ibrahim Mahlab called in from Paris to comment on the resignation of Justice Minister Mahfouz Saber over classist remarks he made in a television interview. According to Mahlab, the resignation was amicable. “He understood the situation and he decided to resign out of respect for public opinion.” Mahlab assured viewers that there is no further cabinet shuffle in the works at the moment. El Hadidy claimed on air that it was El Sisi who had insisted on the minister’s resignation.

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SPEED ROUND

Mahfouz Saber resigned from his post as Minister of Justice on Monday amid widespread criticism over his statement that “a garbage man’s son could never be a judge.” After announcing his resignation, Saber stated that he has the utmost respect for the working man, adding that his statement was a slip of the tongue. Media pundits were quick to praise the move. Saber’s resignation is the lead story on Egypt this morning, having been picked up by the BBC, The Times of Israel, pro-Ikhwan outlet Middle East Eye, a rag called Al Jazeera, Al Arabiya, the AP, Xinhua, the AFP, and many others. Prior to the announcement of his resignation, the top trending hashtag on Twitter in Egypt was #اقيلوا_وزير_العدل [#dismiss_the_justice_minister]. Ahram Online has background to the story here, including Saber’s initial refusal to retract his remarks and his subsequent resignation. Gen. Essmat Morad, head of the Egyptian Military College, spoke on MBC’s “Yahdath Fi Masr,” saying the military does not discriminate against the background of its recruits, accepting the sons of the poor, of doctors and of military men equally. (Read in Arabic)

Former Al Jazeera journalist Mohamed Fahmy sues Al Jazeera for USD 100 mn: As noted in our talk show review, above, former Al Jazeera English Cairo bureau chief Mohamed Fahmy has filed a lawsuit in a Canadian court against his former employer Al Jazeera for USD 100 mn in damages on charges of negligence, Reuters reports. “It’s sad to see Fahmy and his lawyer repeating criticisms of Al Jazeera made by the Egyptian authorities,” said an Al Jazeera spokesperson as quoted by Reuters. “It’s what his captors want to hear at this stage of the retrial. All governments have news outlets they don’t like, but they don’t use spurious grounds to put journalists in jail. If Fahmy wants to seek monetary compensation from anyone, it should be from his jailers.” Also of note, it would appear that Fahmy has ditched Amal Clooney, who last we heard of had demanded to meet with President El Sisi, or anybody else in Egypt.

Piraeus Bank is looking to exit the Egyptian market and has reportedly received Central Bank of Egypt approval for the move, Al Borsa reports. The newspaper claims the bank is now accepting offers to begin due diligence. Piraeus had submitted a similar request in 2012 and reportedly generated interest from international institutions including Morocco’s Attijariwafa Bank and Standard Chartered before reversing the decision. We would expect a substantial bidding war for Piraeus in the event the CBE gives the green light to a sale.

Arqaam Capital plans open a direct presence in Egypt by year’s end, offering investment banking, asset management, brokerage and private equity services. (Read in Arabic)

EFSA may introduce T+1 trading for a wider list of shares, a move that would mean buyers could sell shares in listed companies one day of purchasing them rather than after two days of purchase at present. Egyptian Financial Supervisory Authority chief Sherif Samy says the proposal is now open for public comment. Samy claims the wider introduction of T+1 trading would allow investors to better mitigate risk and could improve daily trading volumes. At present, shares in a limited number of companies are eligible for so-called T+0 or same-day trading — they can be bought and sold within the same day. Government bonds traded through a primary dealers system are eligible for T+1 settlement — they can be traded the next day. All other listed securities trade on a T+2 basis. (Read in Arabic)

Egypt opening the door to fracking? A gentle drumbeat of stories suggests the Oil Ministry may be more interested than we thought in permitting hydraulic fracturing. Following a 7 May report that Ganope would auction one or more licenses for shale oil exploration in the second half of 2015, the newspaper reports that the Oil Ministry is in negotiations with IOCs to amend the purchase price of crude from unconventional sources, particularly those reliant on expensive technologies. A ministry official denied that an agreement has already been reached on new prices. (Read in Arabic)

Cement factories operating at 50% capacity, 90% of producers agree to use coal: Industrial Development Authority chief Ismail Gaber was pulled into the national energy security debate as he admitted that cement factories are working at about half capacity on the back of constraints. Gaber also claimed that the gap between supply and demand would expand to 32 mn tons per annum by 2010, Al-Borsa reported. Sister publication Daily News Egypt, meanwhile, quotes Gaber as saying 90% of cement producers have agreed to make the switch to coal generation.

MOVES- Former Electricity Minister Hassan Younes has been appointed as chairman of PGESCo, Al Malreported.

Wait, what? A new tax? Market research from Nielsen suggests that only 20% of consumers are aware that a new value-added tax could be implemented this year. The measure remains on the drawing board at the Tax Authority. (Read in Arabic)

U.K. closes energy-contract corruption probe with guilty plea: Graham Marchment, a British national, pled guilty to three counts of conspiracy, the UK’s Serious Fraud Office (SFO) said on Monday, as reported by The Wall Street Journal. “Between 2004 and 2008, the SFO said, Mr. Marchment conspired with the four co-defendants to obtain payments by supplying confidential information on oil and gas engineering projects in Egypt, Russia and Singapore.” (Read)

85% of Egypt’s women are overweight and 30% of Egypt’s children are anemic, according to an alarming Health Ministry survey. The USAID-funded Egypt Demographic and Health Survey also showed thatone in five Egyptian children suffer from dwarfism due to poor nutrition. One of the few upsides of the report is that the nation’s child mortality rate has decreased to 27 in 1,000 for children under the age of five. “This is directly related to the level of education of the mothers. Child death rates tend to decrease among mothers who have received better education. Having proper intervals between pregnancies is also a factor,” health minister Adel Adawy explained.

Despite the report’s results, the Health Ministry has rejected a USD 200 mn loan offer from the World Bank Group, according to Amwal Al Ghad, without citing reasons behind the rejection. A representative from the WBG added a socioeconomic dimension during a conference at the Cairo University, noting that the improvements in health outcomes varies greatly across different income levels and stressing that mortality rates are rising in Upper Egypt — the area with the eight cities with the lowest levels of health spending. Al Borsa throws in a faint glimmer of hope as FGM rates amongst 15-17 year old girls have reportedly dropped from 74% in 2008 to 61% in 2014.

Amendments to the industrial zones law allowing for the creation of the new Suez Canal project authority will be ready in ten days according to Admiral Mohab Mamish, the head of the Suez Canal Authority.

A judicial committee tasked with sequestering Ikhwan funds rejected on Monday footballer Abou Treika’s appeal of a decision to freeze his assets, reports Al Mal.

Amer Group reported 1Q2015 results on Monday, posting a net profit of EGP 16.4 mn, up from EGP 2 mn in the same period last year, according to a statement sent to the EGX.

Is Egypt next? Uber will start accepting cash payments today in Hyderabad in a pilot program as it faces stiff competition from domestic players, Indian media reports. The WSJ has since taken note of the development, explaining that cash is king for Indian consumers.

Somehow, we’ll find the will to live: American Idol is leaving the scene next year, the Journal reports. Perhaps the could take Arab Idol with them?

*** A MESSAGE FROM PHAROS HOLDING ***

Are we heading for a major equity market rally in 2H2015?

It’s being billed as a “routine visit,” but the now-confirmed visit to Egypt of an IMF technical delegation in early June 2015 leaves us expecting a major equity market rally in the second half of this year — one that could push the EGX to our 2015 target of 10,500, if our interpretation of the chain of events is on target. We see the government in general (and the Central Bank in particular) selling an IMF facility to a skeptical opposition not as a necessity, but as a national right. And if past precedent is anything to go by, we anticipate both a further interest rate cut and devaluation of the EGP just prior to the delegation’s arrival, with the latter looking more like a managed float. Click here for more — including why the capital gains tax and limits on FX deposits might just make sense in this context.

BONUS CONTENT: Sell Ezz Steel on a brittle industry outlook. We have been bears on Ezz Steel (ESRS) since early 2014 on the back of domestic energy shortages; a global plunge in steel prices; and the likely cancellation of phase two of its DRI expansion. We remain sellers today and are cutting our fair value for ESRS shares to EGP 10.70: still prices look brittle on peaking Chinese demand, excess capacity in China, and the ramp-up of lower-cost capacity in Australia and Brazil — to say nothing of energy costs and availability in Egypt remaining dubious at best. Click here for more.

***

EGYPT IN THE NEWS

The lead story on Egypt in the foreign press this morning is news of Justice Minister, closely followed by journalist Mohamed Fahmy’s suit against Al Jazeera seeking damages of USD 100 mn for harm arising from the network’s alleged negligence.

WORTH WATCHING

The property boom in China left many remote real estate developments vacant. The NYT’s David Borenstein filmed a short documentary about how developers there are now using random foreigners to act as international celebrities related to their development projects. “Clients can select from a menu of skin colors and nationalities; whites are the most desirable and expensive… The operation usually works by recruiting a few of the thousands of ordinary expatriates in China, and paying them to play whatever role the client feels will best convey its building’s desirability.” (Watch, running time: 07:25).

Video footage has been released of a purported Moroccan F16 fighter jet downed by Houthi forces in Yemen. The video displays the wreckage of the anti-Houthi coalition jet with the Moroccan flag clearly imprinted on the tail. (Watch in Arabic, running time: 03:33) The WSJ has a short piece on the report.

WORTH READING

The inequality debate globally has been focused intensely on domestic issues, leaving the far larger issue of global inequality overshadowed. Harvard economist Kenneth Rogoff argues: “allowing freer flows of people across borders would equalize opportunities even faster than trade,” (Read Inequality, Immigration and Hypocrisy)

Last March, Jordanian government officials empowered more dovish elements of the Jordanian branch of the Ikhwan by granting them licensing as the official Muslim Brotherhood in the Kingdom, sidelining the more hardline elements who the government alleged had links to the Ikhwan leadership in Egypt. Naturally, the Ikhwan there have termed the move a “coup.” While the article is noteworthy for detailing the Jordanians’ machinations against the Ikhwan, the author David Schenker warns that sidelining the hawks of the Jordanian Ikhwan may push them underground to jihad. At this point it is uncertain what policy other than complete appeasement of Islamists will prevent them from turning violent, according to Western pundits, government and media. (Read The Implosion of Jordan’s Muslim Brotherhood)

DIPLOMACY

Foreign Minister Sameh Shoukry left Cairo on Monday for a trip that includes stops in Djibouti and Uganda, according to state media as reported by Ahram Online.

Egypt has sent 18 tons of relief material to Nepal in coordination with India, the foreign ministry reported in a statement.

SPOTLIGHT ON: EGYPT RENEWABLE ENERGY CONFERENCE

Renewable Energy Solutions for the Mediterranean (RES4MED) held a conference in Rome on 20 April titledDelivering Renewable Energy Investments in Egypt: Challenges and Opportunities.

Overview: Green Inside – Egypt’s renewable future. An introductory overview of the event, including commentary by some of the events’ participants. “At the moment, Europe is stagnating in [energy] demand … it’s more difficult to invest in Europe … it is very important to look at strategies for deployment elsewhere, and of course close to Italy is the first place to look,” said Paolo Frankl, Head of the Renewable Energy Division at the IEA. Mohamed Shoeib, MD for energy at Qalaa Holdings, added, “The problem is not the price of oil, if it is going down or not, but: how is it sustainable for the future, for our grandchildren?” (Watch, run time: 5:08)

Presentation: Delivering renewable energy technologies in Egypt – Challenges and opportunities, by Tareq Emtairah, Executive Director, RCREEE. (Watch, run time: 13 min)

Presentation: Renewable energy development schemes in Egypt, by Mohamed Salah El Sobki, Executive Chairman, NREA. (Watch, run time: 21 min)

Presentation: Towards RE new era in Egypt, by Salma Hussein, Department Manager, License & performance evaluation, EgyptERA. (Watch, run time: 10 min)

Panel: The future of energy mix in Egypt: the role of renewable energy. Moderator: Tareq Emtairah, Executive Director, RCREEE. Panelists: Mohamed Shoeib, Managing Director, Qalaa Holdings, Energy Division. Mohamed Salah El Sobki, Executive Chairman, NREA. Salma Hussein, Department Manager, License & performance evaluation, EgyptERA. (Watch, run time: 18 min)

Presentation: Public Perception of RE in Egypt: myths and facts, by Christian Kjaer, Senior Programme Officer Knowledge Management, IRENA. Leading myth: RE is too expensive, accompanied by a quote from an unattributed source in Al Shorouk newspaper in September 2014: “The cost of solar energy does not fit our economy from a financial point of view.” Kjaer notes: “In Egypt, the target is 20% [renewable energy in the total energy mix] by 2020. That can certainly be done.” (Watch, run time: 15:34)

Panel: The role of investors in the deployment of renewables and of TSO in their integration in regional electricity systems. Moderator: Roberto Vigotti, Secretary General, RES4MED. Panelists: Francesco Venturini, President, RES4MED; CEO, Enel Green Power; Matteo Del Fante, CEO, Terna; Giuseppe De Beni, Managing Director, Italgen; Agostino Re Rebaudengo, President, Asja; President, assoRinnovabili; Matteo Codazzi, CEO, Cesi. (Watch, run time: 53:32)

Panel: Renewable energy tenders and feed-in tariff-mechanism hurdles for financing and projects bankability. Moderator: Paolo Frankl, Head of Renewable Energy Division, IEA. Panelists: Dana Younger, Chief Renewable Energy Specialist – Global Infrastructure Department, International Finance Corporation World Bank Group; Harry Boyd-Carpenter, Senior Banker, Power and Energy team, EBRD; Marcello Sala, Executive Vice Chairman of the Intesa Sanpaolo Management Board; Co-Chairman, Italian-Egyptian Business Council; Bernhard Haider, Partner, PwC Middle East; Mario Salameh, Managing Director, Head of Project Finance MENA, HSBC Bank Middle East; Theuns Ehlers, Managing Principal, Head of Resource and Project Finance, Barclays Africa. (Watch, run time: 1 hour)

Panel: The role of technological providers to rise competitiveness of renewables in Egypt.Moderator: Antonio Cammisecra, Head of Business Development, Enel Green Power. Panelists: Ahmed El Sewedy, President & CEO, Elsewedy Electric; Ricardo Chocarro, CEO Europe, Middle East, Africa, Gamesa Corporación Tecnológica; Rainer Karan, General Manager Vestas Italy & Middle East; Florian Zickfeld, Manager, International Business Development, Abengoa; Evangelos Lianos, Executive Director Middle East, Yingli Green Energy. (Watch, run time: 42:16)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Connecting Egypt’s, Saudi Arabia’s electricity grids to be complete in three years
Al Ahram | 11 May 2015
Egypt and Saudi Arabia’s electricity grids will be fully connected in three years, the Saudi deputy electricity minister told Al Ahram. The project should benefit the GCC countries as a whole he added, noting that contracts for the project are set to be finalized by year’s end. Connecting the grids is expected to save 3,000MW for both countries through managing supply during peak demand periods. (Read in Arabic)

Subsidized prices for fuel products to remain unchanged in FY2015/16, deputy minister says
Al Shorouk | 11 May 2015
The subsidized prices of fuel products will be kept unchanged in FY2015/16, the deputy finance minister told Al Shorouk. In the first phase of implementing the smart card system for fuel, motorists will be allowed to purchase gasoline at the subsidized rate even without the card – something that would not be possible once the second phase begins, he added. Despite not announcing when the second phase begins, the minister said that once it is implemented, non-card holders will have to pay the full unsubsidized price for gasoline. (Read in Arabic)

Final preparations for coal imports underway, Red Sea Ports Authority says
Amwal Al Ghad | 11 May 2015
Final preparations to enable ports to receive coal shipments are under way, the head of the Red Sea Ports Authority said. Preparations are being carried out in coordination with the environmental affairs ministry and in consultation with cement companies. The Red Sea Ports Authority stressed that it will abide by the set environmental standards in coal usage. (Read in Arabic)

Ministry of Electricity distributed 950,000 LED light bulbs
Al Borsa | 11 May 2015
The Ministry of Electricity has successfully distributed 950,000 energy-saving LED light bulbs to Egyptian citizens, reports Al Borsa. This is part of the ministry’s 10 mn LED light bulb project (launched in February of this year), which aims to decrease citizens’ overall energy consumption by 350 MW, adds the source. The government recently imported 2 mn additional LED light bulbs and plans to begin distributing them next week. (Read in Arabic)

Orascom to build high efficiency coal power station
Al Mal | 11 May 2015
Orascom Constructions aims to construct a USD 3.5 bn coal power station capable of producing 2-3 GW of electricity in the Red Sea Governorate, according to its chief executive, Ehab El Mohawed. He went on to add that the power plant will run at an efficiency rate of 45%. (Read in Arabic)

OIL & GAS

Egypt profits from swapping West Desert production with Arab light crude
Al Borsa | 10 May 2015
Egypt makes USD 6 mn each month swapping crude production from the Western Desert with Arab Light crude, a source at the oil ministry told Al Borsa. The source said the ministry nets USD 4 per barrel swapped. The oil ministry swaps the crude produced from the Western Desert, which has an API gravity of 42 with Arabian light crude with API gravity of 42. The latter is more suitable for Egyptian refineries and is stored at SUMED’s tanks. (Read in Arabic)

Eni and EGAS in price negotiations
Al Mal | 10 May 2015
Eni and EGAS have begun a round of negotiations regarding the purchase price from Eni’s concessions in Egypt. The negotiations look into multiple issues include extending the rights for concessions over longer periods of time along with the price Eni gets for its product. Eni had signed a USD 5 bn agreement to increase investments in Egypt over the next four to five years, Al Mal notes. (Read in Arabic)

Aminex Egypt makes a new oil discovery, GANOPE says
Al Mal | 11 May 2015
Aminex Egypt made a new discovery at its South Malak concession in Al Wady Al Gadeed, state regulator GANOPE announced. The new discovery has a preliminary production rate of 430 bbl per day. Aminex is investing in E&P activities in the area to enhance production rates, according to Al Mal. GANOPE denied owing IOCs any overdue receivables, the paper added. (Read in Arabic)

Ganoub El Wadi to receive petroleum exploration bids towards end of May
Al Borsa | 11 May 2015
Ganoub El Wadi Petroleum Holding company is set receive tender offers for petroleum exploration in 10 areas including sectors in the Gulf of Suez and in Kom Ombo, according to Abu Bakr Ibrahim, the company’s head. This comes as the company plans to invest USD 65 mn in a number of energy projects this year in Southern Egypt. Among these, is bringing gas to 160,000 new customers across eight governorates in Upper Egypt. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

EMRA to finalize mining law’s executive regulations in June
Amwal Al Ghad | 10 May 2015
The new mining law’s executive regulations will be finalized in June, the head of the Egyptian Mineral Resources Authority (EMRA) said. The law change aims to transform EMRA into an economic entity and to improve the efficiency of the extractive sector in Egypt. According to Amwal Al Ghad, the law protects Egypt’s mineral wealth and ensures value is added to it prior to export. (Read in Arabic)

Ministry of Supply and Trade could distribute subsidized bread based on its weight
Al Borsa | 11 May 2015
The Ministry of Supply and Internal Trade is considering a plan to distribute subsidized bread based on its weight, in order to ensure that beneficiaries receive their allotted portions. Under the current system, the government assurances that each beneficiary receives 5 loaves of subsidized bread, amounting to 600 g. By requiring bread to be distributed by weight, the ministry will force bakers to abide by ministry regulations which require that each loaf weighs 120 g. (Read in Arabic)

TRANSPORTATION

11% rise in automobiles sales in March 2015
Al Mal | 11 May 2015
25,500 vehicles were purchased in March 2015, an 11% rise from the same period last year, according to the Automotive Marketing Information Council (AMIC). Passenger car and truck sales rose by 7% and 16% respectively during this period, while truck sales registered the largest jump, with a growth rate of 29%. We should note that both the Cairo and Alexandria Transportation Authorities added new buses to their respective public transportation fleets in recent months. (Read in Arabic)

EgyptAir Holding Company plans return to profitability
Al Borsa | 11 May 2015
The EgyptAir Holding Company aims to decrease its annual losses by 80% during the current fiscal year, reports Al Mal. The company registered a net loss of EGP 3 bn in 2014, while its accumulated losses since January 2011 have exceeded EGP 10 bn, added the source. In order to return to profitability, the EgyptAir Holding Company has hired a consultant to devise a recovery strategy for the airline. The company hopes to reach its break-even point by next fiscal year. (Read in Arabic)

Development of the passenger terminal of Sharm El Sheikh Airport to be tendered
Al Mal | 11 May 2015
The civil aviation ministry will issue a tender for the development of the passenger terminal at the Sharm El Sheikh Airport soon, according to Al Mal. The ministry is now finalizing the terms of the tender and expects the project to take two years for completion. 10 mn passengers are expected to go through the new terminal every year. (Read in Arabic)

REAL ESTATE & HOUSING

UAE to fund the construction of 50k housing units
Amwal Al Ghad | 11 May 2015
The UAE signed an MoU with Egypt to fund the construction of 50 thousand housing units, Amwal Al Ghad reported. The signing was attended by PM Mahlab and the agreement comes as part of the government’s pledge to provide one mn housing units. The units constructed using the UAE’s funding will have their ownership transferred directly to the Egyptian government’s social housing real estate fund. (Read in Arabic)

Development of Merryland Park will not be allowed until environmental impact is assessed -environment minister
Al Borsa | 10 May 2015
The development of Merryland Park in Heliopolis will not be given the greenlight before an environmental impact assessment of the project is carried out, environment minister Khaled Fahmy said. Any construction will have to preserve the historic trees on site and ensure the project is implemented according to environmental standards. (Read in Arabic)

TOURISM

14 investors seek to develop tourism projects in Egypt’s north coast
Al Borsa | 10 May 2015
Fourteen investors have submitted offers to the Tourism Development General Authority to obtain land in Egypt’s north coast, reports Al Borsa. The Tourism Development General Authority has yet to formally issue the land for bidding by investors, but plans to do so in the second half of the current fiscal year. The investors – Egyptian, Emirati, and Saudi nationals – plan to develop high-end hotels, residential units, and marinas in these areas. (Read in Arabic)

TELECOMS & ICT

ECA has right to monitor competition in telecoms sector, court says
Al Borsa | 10 May 2015
The Egyptian Competition Authority (ECA) has the right to monitor competition in the telecoms market, the Cairo Economic Court said. The ECA said it is allowed to look into all relevant documents if they receive a complaint that anti-competition behavior is taking place or if it uncovers evidence of collusive behavior. The role of the ECA will be limited to preserving the functioning of the market and will not be concerned with the quality of the provided service, a function which belongs to the NTRA. (Read in Arabic)

BANKING & FINANCE

Libano-Suisse Takaful Egypt selected as GB Auto’s life insurance provider
Al Mal | 11 May 2015
Insurance provider Libano-Suisse Takaful Egypt has been awarded contract to provide life insurance for GB Auto employees, reports Al Mal. According to the terms of the contract, Libano-Suisse Takaful Egypt life insurance services will cover 6052 employees with the estimated cost of the service exceeding EGP 1 bn. Earlier this year, Libano-Suisse Takaful was awarded a contract to provide its health insurance services to GB Auto employees. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Gov’t to ratify new plan for financing recycling projects worth EGP 1.2 bn
Al Borsa | 11 May 2015
The government plans to announce a new plan to provide financing for a national recycling project worth EGP 1.2 bn, said environment minister, Khaled Fahmy. The move comes after the ministry received offers from numerous international companies. The plan aims to provide financing for a comprehensive recycling program across all governorates. However, the international offers only provide a limited scope financing which would cover a “few” governorates. The first phase of the project is projected to recycle 6 mn tons of waste from seven governorates. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Restructuring the public sector a national duty -planning minister
Al Ahram | 10 May 2015
Minister of Planning and Administrative Reform Ashraf El Araby is restructuring the public sector using the new civil service law, saying that this process constitutes a “national duty.” El Araby stressed that the process is being implemented without the need for massive layoffs, explaining that for each ten people who retire only one or two new employees are brought in to replace them. The aim is not to reduce the number of individuals employed by the public sector, but rather to improve the performance and efficiency of the sector as a whole. The executive regulations of the civil service law will be issued in June, El Araby added. (Read in Arabic)

ON YOUR WAY OUT

95,000 feddans in Western Desert have been cleared of landmines, according to an official at the Ministry of International Cooperation, adding that the ministry is collaborating with Second World War belligerents on the cleanup. He added that the ministry will hold a press conference on 20 May to discuss the most recent developments. Egypt is classified as the country most contaminated by landmines in the world, with 23 mn mines within its borders. For further reading, see Minesweepers’ Egypt page here.

The world’s largest container ship, the MSC Oscar, made a 12-hour transit of the Suez Canal yesterday, according to domestic media reports.

Investment Minister Ashraf Salman met with an Italian delegation reportedly interested in helping switch Kima, the fertilizers company that belongs to the state-owned Holding Company for Chemical Industries, to coal instead of LNG. (Read in Arabic)

Unknown assailants set off bombs outside Egyptian judge’s home: The judge in question, Moataz Khafagi, has previously sentenced former Supreme Guide Mohamed Badie to prison, along with handing down death sentences over the Kerdasa massacre. (Read)

Radiohead frontman Thom Yorke’s image appears on the cover of a book in Iran on physical intimacy problems experienced by married men, the Onion AV Club reports. (The Onion AV Club reports on actual entertainment news as opposed to its fake hard news parent site The Onion.)

BY THE NUMBERS

USD CBE auction (Sunday, 10 May): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Monday, 11 May): -no quote-

EGX30 (Monday): 8,691.85 (flat)
Turnover: EGP 429.9 mn (24% below the 90-day average)

WTI: USD 59.17 (-0.14%)
Brent: USD 64.73 (-0.28%)

TASI: 9,583.2 (-1.3%)
ADX: 4,587.6 (+0.3%)
DFM: 4,071.6 (-1.8%)
KSE Weighted Index: 431.3 (+0.2%)
QE: 12,279.2 (+0.1%)
MSM: 6,313.8 (flat, +0.03)