WEF returns to Sharm in 2016. ABK acquires Piraeus Egypt. Juhayna, Arla form JV. E-visas by February 2016? Egypt launches USD 3 bn LNG import tender. Is the EGP overvalued by only 2%? Growth in exports to UK stagnates. 100 Mbps internet in Madinaty.

IF YOU MISSED OUR THURSDAY EDITION, it most likely had something to do with algorithms deciding we shouldn’t be delivered due to certain pieces of content. As it is every day between Sunday and Thursday, it is available online here on our website.

WHAT WE’RE TRACKING TODAY

Sharm El-Sheikh will play host to the 2016 World Economic Forum on the Middle East and North Africa, President Abdel Fattah El-Sisi announced over the weekend from the 2015 WEF MENA in Jordan. Video of the president’s speech is here; our roundup on the event is below in a special Spotlight; the SIS runs a transcript of the president’s remarks in English here; and Ahram Online has a solid recap of the speech. If our memories serve, the last WEF MENA to be held in Sharm was in 2008.

Arab Construction and Projects Forum, Fairmont Hotel Heliopolis, Cairo (Sunday-Monday, 24-25 May)

Also: A weeklong heat wave begins today. Look for the mercury to peak in Cairo on Wednesday at 44C, according to the national weather office, before cooling to the low-to-mid 30s by the weekend.

WHAT WE’RE TRACKING THIS WEEK

Tomorrow is shaping up to be a particularly busy day:

• The 2015 African Economic Outlook will be published by the UNDP, AfDB and the OECD at 11:00 CLT and will be available online here.
• The Foreign Press Association’s Forum on Egyptian-European Relations, featuring EU Ambassador James Moran and other officials, will take place at the Semiramis InterContinental Hotel, Cairo on Monday, 25 May, starting at 18:00 hrs CLT.
• The one-day Energy and Future of Investment in Egypt (Al-Borsa’s second annual conference on the subject) will take place at Intercontinental City Stars.

National Bank of Abu Dhabi (NBAD)’s Egypt on the Rise — West-East Corridor forum will take place at the JW Marriott, Cairo, on Wednesday, 27 May. Read more about the event and the featured speakers here.

Egypt’s Renewable Energy Summit, Cairo International Convention and Exhibition Centre. (Friday-Sunday, 29-31 May)

ON THE HORIZON

Flat6Labs, the Cairo-based regional tech incubator, held its first Jeddah demo day this past weekend and will hold its first demo day in Abu Dhabi on June 3, supported by twofour54.

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LAST NIGHT’S TALK SHOWS

Lamees El Hadidy interviewed Michel Accad, the CEO of Al Ahli Bank of Kuwait about ABK’s acquisition of 98.5% of Piraeus Bank’s Egyptian operation for USD 150 mn. “The Egyptian market offers a lot of opportunities. This is the second country that we have expanded to in the Arab world after the UAE. If Greece had not experienced the economic problems of the past few years, I am sure that Piraeus would have invested further in the Egyptian market. We have the capacity to invest and grow in Egypt,” said Accad.

Accad says the deal should be final as soon as they receive the final approval of the CBE in approximately two months. He told El-Hadidy that they would have liked to own 100% of the bank, but they have thus far not been able to acquire the remaining shares, 0.75% of which belong to Oriental Weavers.

El Hadidy announced that gasoline smart cards can once again be ordered online at www.esp.gov.eg an EGP 20 charge for home delivery. They will also be available at “your local moroor” as of 1 June for residents of Cairo.

Amr Adeeb was back on air last night after a weeklong visit to the United States. He made up for his absence with an extra long list of gripes and complaints. It went something like this:

“Why doesn’t the President have advisors? He is making all the decisions himself, not that they are bad decision, but he is placing the burden all on himself, which he shouldn’t. The President does not trust civilians up to this day.

“We aren’t moving fast enough with anything. Let’s face it: We can’t create jobs fast enough, so if you can’t earn a living in Egypt, emigrate. I met people in America who couldn’t speak proper Arabic, much less English, before they left and they have made a success of their lives. The best food trucks and restaurants in New York are owned by Egyptians.

“The strange thing is Egyptians abroad continue to have a deep love for this country. They watch Egyptian television, they want to own homes in Egypt, they send money to Egypt, they eat ta3meya, they are worried about the country, and they want to be buried here.”

On a positive note, Adeeb conceded that — “touch wood” — the power outages are not as bad as they were last year at this time despite the very hot weather.

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SPEED ROUND

Al-Ahli Bank of Kuwait (ABK) has acquired Piraeus Bank’s Egyptian operations for USD 150 mn. ABK is buying 98.5% of the Piraeus and awaits the approval of central banks in Egypt and Kuwait to finalize the deal, Al Masry Al Youm reported. Al Ahli Bank of Kuwait CEO Michel Accad spoke with Lamees El Hadidy last night about the transaction (see discussion in Last Night’s Talk Shows, above). Reuters, the FTand Bloomberg have more on the transaction, which valued Piraeus’ Egyptian operations at 1.5x book and which ABK will finance the transaction from its own resources.

Juhayna will form a joint venture with Danish dairy producer Arla foods, according to a joint statement sent to the EGX on Thursday (pdf in English here). The joint venture, ArJu Food Industries, will be 51% owned by Juhayna and managed by Arla. ArJu Food Industries, “will add cheese, butter, and infant formula to Juhayna’s existing product line,” reads the statement. The partnership will “help the company expand into other regional markets,” said Juhayna chairman Safwan Thabet. Reuters has more on the storyhere, including brief comment from Thabet. The news comes over six months after Arla dropped out of the race for Arab Dairy, which was acquired at EGP 71.11 per share in March.

Egypt is set to launch a USD 3 bn tender to import LNG over 2016-2017, Reuters reported citing state officials and trade sources. The tender, which is set to be issued during the first half of June, is aimed towards supplying Egypt’s second FSRU. Sources speculated that Egypt will tender to purchase 96 LNG cargoes over the period, with supply possibly beginning around 4Q2015. Meanwhile, the Egyptian private sector was given the green light to import natural gas or LNG directly, a government official toldReuters. EGAS and EGPC approved allowing the private sector to “use the state-owned national gas network in transferring and marketing the gas,” EGAS Chairman Khaled Abdel Badie said. The Oil Minister tasked EGAS and EGPC to set regulations “for allowing the private sector to import gas for the local market, until the creation of a regulatory body for natural gas.” Abdel Badie refused to discuss how much the fee to use the national network would be noting that EGAS hired a consultant to help with the regulations.

The EGP is overvalued by only 2% against the greenback, and Africa’s two most overvalued currencies relative to the USD are the Tunisian dinar and the Zambian kwacha. That’s the takeaway from Atria Africa‘s self-styled “Milk Index,” which Atria strategist Neville Mandimika has written up for the FT’s Beyond Bricsblog. The equity strategist says of the EGP that “we do not expect a disorderly weakening but rather a gradual weakening towards a possible fair value of EGP7.7 to the [USD]. The upside risk is seen in the 12 month non-deliverable forward (NDF), which suggests that a move towards 8.5 is on the cards in the next 12 months.”

Also in the FT over the weekend: ‘Emaar Misr IPO seen as sign of Egyptian resurgence.’

The CBE is set to offer EGP 6.5 bn in treasury bonds on Sunday. This will be done through two offerings, one for EGP 2.5 bn and another for EGP 4 bn. Amwal Al Ghad reports that the move comes as part of the government’s strategy to reduce the expected end of year budget deficit of EGP 240 bn. (Read in Arabic)

Growth in Egyptian exports to the UK has stagnated in 1Q15, holding steady at EGP 3.2 bn. This comes as imports from the UK dropped 7.5% year on year to EGP 2.6 bn this quarter, down from EGP 2.8 bn in 1Q14. (Read in Arabic)

E-visas could go into effect by February: Look for the next front in the administration war against “visas on arrival” to open by year’s end. A plan to implement an online visa application process is now with cabinet for review, according to Tourism Minister Khaled Ramy, who said the measure could go into effect by February 2016.

If you live in Madinaty, you can now apply for a 100 Mbps internet service with Telecom Egypt. TE is piloting the implementation of VDSL2 technology in the suburb, according to Al Borsa.
Egyptian Resorts Company reported a more than 3x surge in revenues to EGP 29.4 mn and a sharp contraction in its net loss to EGP 3.2 mn as it released its 1Q2015 earnings release on Thursday. Both services and activities revenues improved significantly in the quarter, with chief executive Mohamed Kamel writing that, “With every passing week, I am increasingly confident that 2015 will mark a turning point in the recovery of our industry.” The company noted the sell-out of its Jamaran development, the launch of Tawaya with Palm Hills Developments and significant appetite for land purchases from potential sub-developers in its earnings release (here in pdf).

Egypt needs cheaper land to tackle housing crunch, SODIC chief says. The state must find new ways to allocate land at a lower price to allow the private sector to meet demand for housing, according to SODIC chief executive Ahmed Badrawi: “Changes to land allocation could encourage companies such as SODIC to enter lower income segments… There is a gap that’s not being addressed and I don’t think it’s the government’s role exclusively to do social or low income housing.” Badrawi suggested moving away from using auctions to allocate land, Al-Arabiya reports.
Egypt’s national monuments will be tended to by a new state-owned holding company, the Council of Ministers announced in a statement on Thursday. The company will be charged with improving the flow of revenues to state coffers from historical and cultural sites with a view to funneling more resources into maintenance and upkeep. In related news: President Sisi approved a EGP 50 mn grant for the restoration of the Museum of Islamic Art in Cairo, Al-Masry Al-Youm reports.

President Abdel Fattah El Sisi issued a presidential decree on Saturday amending the Trade Union Law. The crux of the amendment is to extend the terms for the labor union governance and administrative roles by one year, reports Al Borsa. Also yesterday: El Sisi met with Abdullah Mohamed El Saydy, special envoy of the Yemeni President, according to presidential spokesman Alaa Yussef. (Read in Arabic)

Military chiefs meet to discuss Arab regional force. Chiefs of staff from Arab countries includingLibya, Jordan, Palestine, and Qatar arrived in Egypt yesterday for two days of meetings on the establishment of a joint Arab regional force. The meeting was a follow-up to a meeting held in Cairo on 24 April. (Read in Arabic) Egypt’s Chief-of-Staff Mahmoud Hegazy on Saturday said that a draft outline on the joint military force will be ready by 29 June. (Read)

Morsi, Hamzawy, Abdelfattah in the prisoners’ cage for “insulting judiciary.” Former president Mohamed Morsi, politico Amr Hamzawy and human rights lawyer Amir Salem and 22 others went on trial yesterday on charges they had “insulted the judiciary.” The defendants — a mixed crew of Islamists, supporters of the Sisi administration and opposition leaders — stand charged of contempt of the judiciary in statements made in “parliament, speeches, on social media or in interviews,” AFP reports.

Morsi to be exiled to Turkey with Saudi mediation -Turkish newspaper: Ikhwan squawk box MEMO highlights a report in Turkish newspaper Takvim which alleges that Erdogan, through Saudi and Qatari (really? Qatari?) mediation is seeking to have Morsi exiled in Turkey. CNN describes Takvim as a pro-government newspaper, one which is owned by Ahmet Çalık, bn’aire and owner of Çalık Holding. (Read)

Strong El Nino is likely to increase the price of staple foods, scientists told the BBC. “Forecasters agree that the El Nino effect, which can drive droughts and flooding, is under way in the tropical Pacific. But they say it is too early to say how severe it will be.” A professor said “current models point to an event on a similar scale to that of 2009/10, but perhaps as strong as in 1997/98, which was particularly extreme.” Prices for food items such as coffee, soybeans, and cocoa could rise by 5-10%.

Nanotechnology can push Egypt through its energy crisis, Rachel Williamson suggests on Wamda. Williamson profiles an Egyptian professor researching the usage of nanotechnology in enhanced oil recovery, which he says could increase domestic oil production by10-20%.

Daesh claim bombing of Shiite mosque in Saudi, Egypt condemns schemes aimed at stoking sectarianism: Daesh claimed responsibility for the bombing of a Shiite mosque in Saudi Arabia’s Eastern Province during Friday prayers which left at least 21 people dead and 80 injured, as reported by the BBC. A joint statement by the Egyptian Foreign Ministry and Al Azhar’s Grand Imam Ahmed El-Tayeb condemned the attack, saying “Egypt stands in solidarity with the Saudi government and the people in the face off the brutal terrorism.” The statement also warned people “not to be deceived by people igniting sectarian strife schemes.” (Read)

UNESCO world heritage site Palmyra has been seized by Daesh, although no artifacts have yet been destroyed, the BBC reports. “Inhabitants were angry that Western media are focusing on the ancient ruins, and not the population … “People think the West cares more about the civilisation than about the people who created or initiated this civilisation,” according to an unnamed activist. Daesh were reportedly hunting Assad loyalists door-to-door after they had attempted to blend in with the population after the city fell.

Ireland has become the first country in the world to legalize by popular referendum marriages between members of the same gender. The “yes” campaign prevailed by a wide margin: More than 62% of those casting ballots approved of legalizing such unions. (Kindly note that yes, we have misused the term ‘gender’ here and are not linking to articles on the subject. Were we to do so, we would fail to be delivered due to the common compound word used to describe such marriages. Our apologies for the stiltedness this morning.)

Similar lawsuits would never fly in Egypt, but the WSJ’s piece ‘Can You Sue the Boss for Making You Answer Late-Night Email?‘ makes for interesting reading. Is it legal — or fair — to expect staff to check and respond to email during off-hours?

Still wondering what you’re worth on the international job market after playing with Adzuna last week? If you’re working in tech, check out Visa Explorer, which BuzzFeed explains is a “new searchable database of hundreds of thousands of salaries for foreign workers provides one of the most comprehensive and granular insights into prevailing wages in corporate America.” Compensation at Uber is pretty reasonable, it seems, and NY Times chief exec Mark Thompson apparently makes a base salary of USD 1 mn.

Oh, and we’d really — really — like the backstory on ‘the wildest GIF on Twitter‘ if anyone has seen this before. Did it eat him? Where did it take place? Is it even real?

PODCAST

Inc. Magazine’s latest podcast features a segment on Egyptian cotton shirt startup Kotn, which is funding 12 independent farmers to grow long staple Egyptian cotton for their shirts. The startup has only been around for several months, but their first shipment of 15,000 shirts sold out immediately. (Listen, running time: 4 minutes, from 13:27-17:22)

SPOTLIGHT: WEF MENA

Jordan hosted the World Economic Forum on the Middle East and North Africa over the weekend, bringing political and business leaders together to discuss the region’s most pressing concerns and medium to long term strategy.

President Abdelfattah El Sisi addressed the delegates, focusing on the region’s youth bulge. The issue is usually disappointingly treated in the media with apocalyptic Malthusian gloom, but the President’s statement gave the issue an informed treatment that one only usually finds in development economics.

“We are also aware that we have a demographic window of opportunity, extending until 2050, to make use of the energy and capabilities of the youth who are of working age during this period,” the President noted. Whereas most media accounts of the region’s youth bulge treat it as an anathema, the current youth bulge is actually an opportunity, one which economies such as those of Southeast Asia used to propel their economies and societies forward. The UNFPA notes: “In East Asia, for instance, where poverty has dropped dramatically, this demographic bonus is estimated to account for about one third of the region’s unprecedented economic growth from 1965 to 1990.” Countries who have squandered this limited window for development have fared “less well.”

With regard to the President’s speech, the Associated Press observed: “Much anticipated at the event was Egyptian President Abdel-Fattah el-Sisi, the former military chief whose recent history seems as dualistic as that of the region some would have him lead … he has built public support in Egypt with his agenda of stability above all else. He appears to favor much-needed structural reform, and has emerged as a leading ideological antagonist to Islamic extremism. On this explosive issue, where others in the region seemed inclined to hedge and fudge, his voice has been strikingly clear.”

On the sidelines of the WEF: Jordan signs USD 10 bn in investments, including USD 6 bn gas import deal with BG: Following earlier reports from Palestinian new site Maan that suggested Jordan was close to inking a deal with BG Group to import gas from BG’s Gaza offshore concession, (Read in Arabic) Jordan confirmed on Saturday that it had signed a USD 6 bn LNG sale and purchase agreement with BG Group, although from where the gas was being sourced was not specified. The second-largest deal announced was with Chinese firm Hanergy to build 1GW in solar and wind power projects at a value of USD 1.5 bn. Given that Jordan imports 97% of its energy needs, it comes as no surprise that the bulk of the announced deals are in the sector, including plans to introduce electric cars to its taxi and public sector vehicle fleets. (Read)

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A MESSAGE FROM PHAROS HOLDING

CBE Governor Affirms Pharos Views on FX Policy

A few weeks ago, Pharos Research issued a report arguing that the CBE should move away from a crawling peg FX policy and towards a more flexible two-way volatility policy (appreciation and depreciation) with no predefined path for the exchange rate. Our logic is drawn from the fact that by sticking to a crawling peg policy for a currency that is fundamentally overvalued, the interim periods of stability that follow every devaluation will always provide a window for currency speculation and accumulation of in-the-money call options on the USD.

Speaking on CBC to discuss the exchange rate and monetary policies, the CBE governor seemed to somewhat agree with the need to adopt a more flexible FX regime; however, his concerns were with regards to the effect that would have on prices and the consequent social ramifications. To read more click here.
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WORTH READING

Egypt’s Muslim Brotherhood Gets a Facelift, Eric Trager, Foreign Affairs magazine: “The Muslim Brotherhood maintained a level of plausible deniability: it claimed that it had no control over the “anticoup” offshoots that organized the attacks, disavowed pro-Brotherhood television statements that had explicitly threatened foreigners in Egypt, and even removed a January 2015 statement from its own website that called for “jihad” and “martyrdom.” And perhaps most incredible, the Brotherhood’s two-faced strategy worked: even as evidence of its violent activities mounted, the Obama administration praised the Brotherhood’s verbal commitment to nonviolence and, thus, continued its diplomatic engagement with Muslim Brotherhood officials.” (Read)

House Committee hearing- Egypt Two Years After Morsi: Part I: On Wednesday, 20 May, the House Committee on Foreign Affairs held the first of a two-part hearing on Egypt. Three experts submitted testimony: Eric Trager of The Washington Institute for Near East Policy, Samuel Tadros of the Hudson Institute, and Nancy Okail, Executive Director of the Tahrir Institute for Middle East Policy and defendant in the NGO trial. Transcripts of their testimonies are provided below:

• Eric Trager: “The current regional environment makes it particularly urgent for Washington to restore its relationship with Egypt on the basis of shared strategic interests. Specifically, Congress should encourage the Obama administration to proceed with the “strategic dialogue” that Cairo has requested since early 2014.” (Read Eric Trager’s full statement)
• Samuel Tadros: “Egypt has now become a playing field where a variety of international, regional and local forces compete in an all-out war to shape the country’s future trajectory.” (Read Samuel Tadros’ full statement)
• Nancy Okail: “Weaknesses in the judicial process and pervasive impunity undermine the rule of law, both for those who believe their status places them above the law or those who believe the law will never be on their side.” (Read Nancy Okail’s full statement)

The first batch of emails from Hillary Clinton’s private email server used during her time as U.S. Secretary of State were obtained and published by the New York Times on Thursday. (Read)

EGYPT IN THE NEWS

U.S. Bets On Egypt While Ignoring Tunisia’s Success: The usually excellent Josh Rogin writes a disappointingly-framed piece for Bloomberg View with the misleading title: U.S. Bets On Egypt While Ignoring Tunisia’s Success. The entire article seems to imply that foreign assistance is somehow a zero-sum game; that the United States chooses to continue supporting Egypt militarily at the expense of economic assistance to Tunisia. Rogin also makes no mention of the fact that a number of countries, including the United States, had promised shortly after the Arab Spring revolts to create a ‘Middle East Marshal Fund,’ which would have included both Egypt and Tunisia but never materialized. (Read, or skip)

Egypt’s Sisi Is Getting Pretty Good … at Being a Dictator: This whole article is clickbait. The tagline “But will the army continue to back the president if the economy starts to tank?” is apparently an attempt to create enough dramatic tension to motivate readers that yes, you can make it to the end. (Read)

Taking a far more rigorous approach to the topic (ie: she actually resorts to reporting and the explanation of background) is the Washington Post’s Erin Cunningham with ‘Under Egypt’s Sisi, crackdown on human rights groups expands‘.

My treatment by Egypt’s legal system has been a travesty of justice, by Peter Greste: Peter Greste writes that according to the latest session his retrial in Egypt, the judge has ordered him to appear before the court. If Greste does not appear, according to Egyptian law he will automatically be convicted. Greste points out the inconsistency with him returning to Egypt to give testimony after having been deported, and is instead offering to give video testimony from Australia. (Read)

Marooned in the Desert: Sixty-seven years after the Arab-Israeli War, 3,000 Palestinians remain forgotten and stateless in rural Egypt. (Slate)

WHAT YOU CLICKED ON LAST WEEK

The most-clicked links in Enterprise last week included:

• Ahmed Zayat’s American Pharoah wins the Preakness Stakes, (NYT)
• Enterprise Arabic (Enterprise Arabic)
• Profile on Saudi bn’aire Lubna Olayan (Bloomberg)
• Media coverage on FIDH’s report regarding systematic use of violence by security forces against protesters, activists (Enterprise) (tie)
• Upload your CV to Adzuna for an estimate of what you’re worth on the job market, (Adzuna) (tie)
• Snapchat and Periscope: A Grown-Up’s Guide (WSJ)

WORTH WATCHING

An opera singer serenades a street in the port city of Damietta, Egypt. (Watch, running time: 2:36)

Feminist Bookstore Car Wash. (Watch, running time: 2:39)

DIPLOMACY

The Foreign Affairs Ministry denied reports that President El Sisi’s planned visit to Germany is being reconsidered, according to Al Shorouk. Reports last Tuesday had suggested that Bundestag President Norbert Lammert’s criticism of Egypt drove the administration to reconsider the visit. The State Information Service released on Friday a six-point memo on the ‘Falsehoods in the Statements made by the President of the German Bundestag‘.

Foreign Minister Sameh Shoukry met with Austrian FM Sebastian Kurz on Wednesday. In a joint press conference, Kurz stated: “The death penalty is an inhuman deterrent strongly rejected by not only the Austrian government but also by the European Union,” (Read) On Saturday, FM Shoukry travelled to Algeria to meet with his counterpart FM Ramtane Lamamraand, where the two discussed the ongoing crisis in Libya. (Read)

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

Attaqa Power Station to begin operations in July
Amwal Al Ghad | 21 May 2015
The Attaqa Power Station is set to begin operations in July, an informed source at the Electricity Minister told Amwal Al Ghad. The station is being constructed by Siemens at a cost of USD 460 mn. The station comes as part of the ministry’s plans to increase electricity output to 6,832 MW. (Read in Arabic)

Mashreq Petroleum plans USD 12 mn crude oil pipeline
Al Borsa | 21 May 2015
Mashreq Petroleum plans to construct an crude oil pipeline connecting the Port of Port Said to an oil refinery in Mostard, Qalyubiya. Upon completion, the pipeline will transport 10 mn barrels of oil per year. The pipeline has an estimated capex of USD 12 mn and will take 8 months to complete, said Mashreq Petroleum chairman Tamer Aboubakr. (Read in Arabic)

OIL & GAS

Egypt issues diesel tender
Al Borsa | 21 May 2015
EGPC has issued an international tender to swap a shipment of naphtha scheduled for delivery in the first week of June with 35,000 tons of diesel. The shipment is set to be delivered in the Port of Suez and the tender expires on 26 May, Al Borsa said. (Read in Arabic)

MANUFACTURING

PESA mulls train and metro parts factory in Egypt
Al Masry Al Youm | 21 May 2015
Polish train and metro manufacturer PESA has commenced proceeding for the establishment of train and metro parts factory in Egypt, reports Al Masry Al Youm. An Egyptian delegation, comprising government officials and members of the private sector, will be visiting Poland shortly in order to iron out the details of the project. (Read in Arabic)

Having Kima Egypt run on natural gas set to cost USD 730.8 mn
Amwal Al Ghad | 21 May 2015
Converting Kima Egypt’s factories to run on natural gas will require a USD 730.8 mn investment, according to Amwal Al Ghad. The project will be financed through credit facilities totaling USD 372.2 mn as well as from the proceeds of a capital increase. Kima Egypt’s profits grew by almost 50% in the first three quarters of FY 2014/15. (Read in Arabic)

HEALTHCARE

Health minister refutes rumors of price hikes
Al Mal | 23 May 2015
Health minister Tarek Suleiman, refuted rumors that the ministry plans on raising the prices of medication after a number of leading pharmaceutical companies pushed to permission to raise prices on meds. The companies have urged the government multiple times to allow for prices to increase, as the pricing mechanism employed by the ministry is outdated and has remained virtually unchanged since the 1990s. (Read in Arabic)

TOURISM

Arab tourist arrivals growing in 2015
Al Borsa | 21 May 2015
Tourist arrivals from Arab countries increased by 22% y-o-y from the beginning of the year until April, the head of the Tourism Development Authority (TDA) said. Emirati arrivals grew by 56% y-o-y in the first four months of the year. The TDA aims to increase the share of Arab arrivals to 34% by 2020 from 17% currently. (Read in Arabic)

Alexandria greenlights three mid-sized tourism projects worth EGP 100 mn at the RTDC
Al Borsa | 23 May 2015
The city of Alexandria has approved the launch of three cultural and historical tourism projects, with a budget of EGP 100 mn, on the first day of the Regional Tourism Development Conference (RTDC). These projects will be part of an extensive cross-cultural program developed with the aid and cooperation of the EU. Among the projects is the Greco-Roman Museum, which the government plans to parlay into its bid to make Alexandria a UNESCO Heritage City. (Read in Arabic)

TELECOMS & ICT

TE Data’s market share reaches 67% followed by Link.net
Amwal Al Ghad | 23 May 2015
TE Data is the market leader in broadband internet services in Egypt, capturing a whopping 67% of the market in 1Q15, according to industry insiders. Link.net retained its second place standing but saw its market share drop from 25% to 23%. These two were followed by Vodafone and Etisalat, whose market shares were 9% and 7% respectively. (Read in Arabic)

BANKING & FINANCE

Barclays to add two new branches this year
Amwal Al Ghad | 21 May 2015
Barclays bank is targeting to open two new branches this year to bring up the total number of branches operated by the bank to 58, the head of retail banking Hazem Hegazy told Amwal Al Ghad. Barclays’ retail credit portfolio reached EGP 2.1 bn by April’s end compared to EGP 1.9 bn by the end of 2014, he added. The bank has already opened two new branches earlier this year. (Read in Arabic)

Banks join forces to launch “Cashless Campaign” with MasterCard
Zawya | 20 May 2015
MasterCard launched its second annual “Cashless Campaign” in collaboration with NBE, CIB, Emirates NBD, and Banque Misr. The initiative aims to spur the adoption of electronic payment solutions in Egypt. The campaign gives debit card holders the chances to win gold prizes and “will be rolled out as an activation roadshow throughout major malls in Egypt.” MasterCard aims to raise awareness about the benefits of electronic payments in Egypt. (Read)

OTHER BUSINESS NEWS OF NOTE

Egypt received USD 70 mn from UNDP -country director
Al Borsa | 20 May 2015
Egypt has received USD 70 mn in grants from the UNDP, Ignacio Artaza, the country director, announced. 50% of the funds were allocated toward education and healthcare initiatives, Artaza said. The comments came during the announcement that Egypt is receiving EUR 2.6 mn to clear landmines off the North Coast. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Egypt signs USD 4.6 mn grant agreements with AfDB
Amwal Al Ghad | 21 May 2015
Egypt has signed three grant agreements with the African Development Bank (AfDB) worth a total of USD 4.6 mn. One agreement for USD 1 mn will go towards using renewable energy in irrigation. The second agreement, a USD 1.8 mn is set to finance a study to support Egyptian trade relations with COMESA countries. The final USD 1.8 mn will be used to support and improve the capacities of the National Planning Institute. (Read in Arabic)

ON YOUR WAY OUT

Cairo rolls out new EGP 261 mn traffic lights system:
Under the auspices of the prime minister, the governor of Cairo, and the ministers of local development, the interior, and telecommunications, Cairo governorate launched its new traffic lights system. This EGP 261 mn system, which covers over 250 traffic intersections and locations, will be administered and guided by a new “state-of-the-art” headquarters and control station. The government officials attending the inauguration all praised the tremendous strides taken in establishing this project. (Read in Arabic)

It was popular in the last week or so to portray the GCC countries as a bloc in decline: With oil prices falling and U.S. petroleum production rising, the traditional alliance with the U.S. is fraying in the face of an American president set on reaching a nuclear deal with Iran. Against this backdrop, political economist and EBRD counselor Tarek Osman argues in the Cairo Review of Global Affairs that thanks to a decade of careful investment by GCC leaders, “Gulf soft power has never been stronger.”

Gaza Strip economy on ‘verge of collapse,’ World Bank says: Sameer Abumdallala, an economics lecturer in Gaza’s Al-Azhar University, who did not participate in writing the World Bank report, estimated that 30,000 men were sitting idle because of the lack of construction activity. Adding to Gaza’s woes, most of Hamas’s civil servants, some 40,000 people, have not been paid in months because of a funding shortfall, Mr. Abumdallala said. He estimated that another 15,000 men were unemployed because of Egypt’s blocking of the smuggling tunnels. Mr. Abumdallala said he did not expect a collapse but “an explosion.” “It will be in the face of Israel, Egypt and even against Hamas,” he said. (Read the NYT piece and the World Bank press release)

Unknown perpetrators torched rail ties in Upper Egypt early this morning, causing delays in transportation services. (Read in Arabic)

Q&A: Capital punishment in Egypt. (Ahram Online)

Hundreds march in Sudan against Morsi death sentence; Thousands of Israeli Arabs rally in Israel against Morsi’s sentence: “The march organised by the Islamic Movement, a faction of Sudan’s ruling National Congress Party, suggested some in the ruling elite wanted to send a stronger signal against Egypt’s crackdown on Mursi’s Muslim Brotherhood … Crowds held up pictures of Mursi and other Brotherhood figures, as well as Turkish President Tayyip Erdogan. They also chanted slogans against Egypt’s current President Abdel Fattah al-Sisi, who as army chief orchestrated Mursi’s ouster following mass protests against his rule.” (Read) Meanwhile, on Saturday, a similar demonstration took place in Israel, organized by Israeli Arab followers of the Islamist Movement, an organization with links to Hamas. Protesters chanted:“We won’t rest till the murderer Sisi is executed.” (Read)

BY THE NUMBERS

USD CBE auction (last sale Thursday, 21 May): 7.5301 (unchanged since Monday, 02 Feb)
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