Wednesday, 3 June 2015
WHAT WE’RE TRACKING TODAY
The HSBC / Markit Economics PMIs for Egypt, the UAE and Saudi Arabia will drop at 7:30am CLT today. The files will be available here in pdf.
President Abdel Fattah El Sisi is set to be welcomed in Berlin on today, where he will hold talks with German President Joachim Gauck and Chancellor Angela Merkel, followed by a joint press conference.
OPEC descends on Vienna today for two days of pre-meeting chatter before Friday’s ministerial meeting. Reuters reports that analysts believe “core Gulf OPEC members and others have a consensus to keep the organisation’s oil production ceiling intact,” predicting that the meeting is expected to be “smooth sailing” because “nobody wants to rock the boat.” In other words: Look for no agreement on a change in output, just like last November. Some sources in Opec see oil prices rising to USD 70-80 per barrel in the second half of 2015 and into next year. The spanner in the works: Iran and its 1 mn barrels of oil, says Bloomberg, asking which is asking questions here that others are glossing over. Notes the wire service: “Just when it looked like OPEC was winning the war with U.S. shale-oil drillers, a new front is opening up within its own ranks. The [OPEC] summit on 5 June to determine the group’s output will come three weeks before a deadline for a deal on Iran’s nuclear program. The government in Tehran says it can add almost 1 mn barrels to daily production within six months of sanctions being lifted.”
WHAT WE’RE TRACKING THIS WEEK
Following his state visit to Germany, President Abdel Fattah El Sisi will travel to Budapest, Hungary, where the president will attend the opening of the Egyptian-Hungarian Business Forum. El-Sisi’s trip will conclude on Saturday.
Emaar Misr will announce the final pricing on its June IPO on Thursday, according to media reports.
The defense will make its closing arguments in the retrial of former Al Jazeera English journalists Mohamed Fahmy, Baher Mohamed and Peter Greste on Thursday, following the prosecution’s closing arguments earlier this week.
LAST NIGHT’S TALK SHOWS
President Abdel Fattah El Sisi’s two-day visit to Germany and his meeting with German Chancellor Angela Merkel was the main topic of discussion on last night’s talk shows.
“Why is the President’s visit to Germany so important,” asked Lamees El Hadidy. She hosted Cairo University political science professor and former talk show host, Moataz Abdel Fattah to chew over the significance and impact of the visit.
“There are two scenarios that could take place during the meeting with Merkel,” said Abdel Fattah. “She could come right out and criticize / attack us, but she is smarter than that. I don’t think she’ll do it. She might decide to ignore the things she doesn’t like about Egypt, but she will be under pressure from her political party to address democracy and human rights issues. In any case, I think our relationship with Germany is steady there are no dramatic ups and downs like our relationship with the U.S., for example. Our major issue with the U.S. is Israel, while our major issues with Germany are democracy and human rights.
“I think this visit is particularly important because Germany is the last strategic country other than Qatar and Turkey to officially recognize our government. The fact that President El Sisi has been invited to meet with the chancellor means we already won that battle.”
According to Abdel Fattah Egypt is still in the process of “de-ikhwanization.”
“The only thing they can do right now is to try and keep us on the defensive so that we can’t give our full attention to rebuilding,” he said. “They want us to take us down so they can take over. How stupid is that? What will you do with a nation that is completely destroyed, there will nothing for you to rule if you push us over the brink. If they were truly nationalistic and truly cared about Egypt, they would be willing to sacrifice their personal interests to see Egypt prosper but they don’t care about that.
“Merkel will most likely ask about the lack of freedom in Egypt. In my opinion, yes, we may have less freedom today but a lot of it is self-censorship. We have been through so much that we are afraid to rock the boat,” added Abdel Fattah. “My hope is that in the month of August, after the opening of the Suez Canal, there will be a re-launch of El-Sisi (Sisi 2.0). This is when he really starts working on his vision. Education improves, roads become better, we have a parliament and lawmakers and a system of checks and balances.”
Amr Adeeb wished the president good luck because, “he is going to need it before he talks to Merkel She’s not easy — our prayers are with you.”
With a huge smile on his face, Adeeb also discussed the resignation FIFA President Sepp Blatter and the subsequent announcement that he is the focus of a U.S. government corruption investigation.
“It has begun, Qatar is being dragged through the mud. The Qatari stock exchange tanked today. All the international media outlets are saying that this is the end of Qatar, they will most likely lose the 2022 World Cup,” Adeeb gloated. “Now I’m starting to get really upset. Qatar is a fellow Arab nation and we should stand beside them, shouldn’t we? Qatar deserves better than this, don’t they? I wonder how Al Jazeera is going to cover this most interesting story as it unfolds … stay tuned.”
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SPEED ROUND
Samsung will invest USD 300 mn to establish three factories in Egypt, said Song Hu Yun chairman of Samsung Egypt, adding that the company would deploy the latest environmentally-friendly technologies at the facilities. He also stated, however, that the company has run into some hurdles concerning bureaucratic red tape, particularly regarding customs and tax regulations. According to Al Borsa, Samsung’s current investments in Egypt stand at EGP 1.8 bn, a figure the company plans to grow to EGP 9 bn by 2017. The Samsung announcement came after a meeting yesterday with Prime Minister Ibrahim Mahlab, who vowed to help reduce the hurdles impeding the company’s projects in the country, reportsAl-Ahram. The three factories would produce washing machines, refrigerators and air conditioners. The company already assembles televisions in Beni Suef for sale domestically and for export.
Penalty phase of Morsi trial to wrap on 16 June: The judge overseeing the penalty phase of former president Mohamed Morsi’s Wadi Natroun prison break trial received yesterday the Grand Mufti’s non-binding recommendation on whether Morsi should face the death penalty, the AP reports. The judge declined to make public the mufti’s recommendation and recessed until 16 June to deliberate. In the AP’s coverage of the story, mention is made of the Ikhwan’s younger leadership recent endorsement of calls for “retribution” against officials, judges, policemen, media figures and politicians,” as we had mentioned in Sunday’s Enterprise and in what the AP notes is a major shift in their policy.
A desalination revolution in Egypt as Hurghada decouples itself from the Nile? We’re not sure why the domestic press isn’t trumpeting this: It seems Hurghada — as in the entire city — is on track to draw 100% of its fresh water from a now-under-construction desalination plant, the largest-ever in Egypt. Karim Madwar, MD of Metito Egypt, the company building the facility, tells an industry publication that “while infrastructure in general is booming in Egypt as the government looks to invest in the country’s growth,desalination in particular has finally arrived as a serious growth business in the municipal sector.” (Read)
The government will produce a budget within the next two weeks, Prime Minister Ibrahim Mahlabsaid, noting that his cabinet legally has until 30 June to present one. The delay is driven by the government’s attempts to smooth-out budget issues between ministries, Mahlab added.
It’s stats season — imports are up, exports down and NIR look set to fall. The CBE announced yesterday Egypt’s total trade grew 7.8% y-o-y in the first half of the 2014/2015 fiscal year to USD 44.6 bn. Imports grew 14.7% in the same period USD 32.4 bn, while exports declined by 7% to USD 12.2 bn, reports Al Borsa. Meanwhile, Al-Masry Al-Youm doesn’t expect foreign reserve figures to be as pretty when they’re announced in the “coming days,” noting that commodity exports and the CBE having flooded the market with some USD 800 mn ahead of Ramadan presage a dip in NIR.
Negotiations are underway with GDF Suez (Engie), BG, and Edison to amend the purchase price of gas from their offshore concessions in the Mediterranean, Tarek El Molla, the Chairman of EGPC, told Al Borsa.
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ZTE plans roll-out of affordable smartphones: Chinese telecoms giant ZTE is aiming to post sales of EGP 200 mn in 2015 as it adds a new range of affordable feature and smartphones priced in the EGP 140-2,500 range to its existing lineup of routers and mobile internet USB sticks. Top Chinese cellphone manufacturers including ZTE and Oppo offering a growing range of affordable smartphones to low- and mid-income earnings looking to get online. (Read in Arabic)
The Ministry of Electricity announced that it plans to add 945 MW of generation capacity to the nation’s electricity grid by the end of June. In a statement to Al Borsa, Deputy Electricity Minister Sabah Mashaly stated that EGAS will be able to supply the required fuel to operate the newly launched generation stations that have been installed in Upper Egypt, Sinai and the Red Sea coast. However, sources within EGAS have been reported that the task is daunting, adding that it would need 420 mn cubic feet of gas per day to operate the four stations.
Orascom Construction and the Arab Contractors signed a construction MoU with Russia’s Rosatom to build two 2,800 MW nuclear power plants in Dabaa. The Chairman of Arab Contractors said the delay in signing the MoU was because of Orascom’s request to join the consortium implementing the project. The project has an estimated investment cost of USD 8 bn.
Brotherhood Guidance Bureau member arrested: The Interior Ministry announced that it had captured Abdel Azim Al Sharqawy in Beni Suef on Tuesday evening. Al Sharqawy, a member of the Ikhwan’s Guidance Bureau, was described on CBC’s Hona Al Asima as the most dangerous MB member at large. (Read in Arabic)
Sudanese president Omar Al Bashir was sworn in on Tuesday for a fifth consecutive five-year term in Khartoum’s twin city, Omdurman. In a break from his usual defiant stance in the diplomatic arena, Bashir (who is wanted by the International Criminal Court) vowed that he would seek to end hostilities and mend ties with the West, Reuters Africa reports. He also promised to jumpstart the economy, an issue intimately tied to relations with the West, which has placed sanctions on the country. State news agency Suna reports that he dissolved his cabinet on Tuesday including the Vice President. Attending the inauguration was a number of African heads of state and government officials, including President Abdel Fattah El-Sisi, who had earlier offered Bashir his congratulations and expressed hopes of continued close bilateral ties, reports Al Borsa.
Sepp Blatter resigns, is under investigation from U.S. officials: As noted above in our talk show review (and to the unconcealed delight of Amr Adeeb), former FIFA president Sepp Blatter unexpectedly announced his resignation on Tuesday. The New York Times reports that “several United States officials, speaking on the condition of anonymity, said that in their efforts to build a case against Mr. Blatter they were hoping to win the cooperation of some of the FIFA officials now under indictment and work their way up the organization.” One of our favorite reactions to the news was from SBNation Editorial Director Oliver Stacks, who tweeted: “SEPP ON THAT REDEYE TO CARACAS.”
Dubai Islamic mortgage provider Amlak Finance resumed trading yesterday for the first time in nearly six years. Shares tumbled 14.7%, with Reuters suggesting that the suspension of trading had “left many investors stranded” and that “they may now want to free up their money.” Trading on Amlak Finance was halted in 2008 with the crash in the UAE’s real estate prices. The company’s Chairman telling CNBC Arabia TV that the company is prioritizing debt repayment is looking to expand in Egypt and Saudi Arabia.
Could Israel back away from gas exports? Israel must protect its energy assets, not engage in too many gas export deals, and convert “everything it can to operate” using gas, Shell’s former president, John Hofmeister, told Globes. Commenting on the possibility of exporting gas to Jordan and Egypt, Hofmeister said the deals could “be good for international relations, but they can also do damage. Export agreements are for 15-20 years. And Israel cannot really promise to provide gas to these countries over such a long period of time. What will happen if a war breaks out?” Hofmeister also downplayed the role of Arab-Israeli relations in having IOCs, beyond Noble Energy and Delek, shy away from expanding operations in Israel, saying the main reason is that “there is simply not enough gas in Israel to attract these companies.”
In related news: Israel’s Delek looks to increase stake in Cyprus gas field: Delek Group said on Monday that it is in talks to buy an additional 19.9% stake of the offshore Cyprus gas field Aphrodite from its partner, Texas-based Noble Energy, for c.USD 155 mn, as reported by Reuters.
Six oil majors send letter to UN endorsing carbon pricing: BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total sent a letter to French Foreign Minister Laurent Fabius and Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC) Christiana Figueres on Monday, calling upon world governments to provide them with “clear, stable, long-term, ambitious policy frameworks. We believe that a price on carbon should be a key element of these frameworks.” (Read)
The IMF completed its 2015 Article IV mission to Saudi Arabia. “The decline in oil prices is resulting in substantially lower export and fiscal revenues, but the effect on the rest of the economy has so far been limited. Real GDP growth is projected by IMF staff at a healthy 3.5 percent this year, unchanged from 2014,” Tim Callen, the IMF’s team leader said. The IMF also praised Saudi Arabia’s Nitaqat Saudisation programme, which aims to increase the employment of Saudi nationals.
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A MESSAGE FROM PHAROS HOLDING
Mohamed Taymour on taxes, life post-EEDC and the impact of mega-projects
During an interview with economic news platform Worldfolio, Pharos Holding’s Chairman Dr. Mohamed Taymour said he is optimistic about the Egyptian economy’s future, identifying the coming years as ones with great potential for recovery and growth across all business sectors. He cited several reasons behind his confidence—mainly his faith in the current government’s competence and its increased cooperation with the private sector in an effort to implement plans and projects designed to push Egypt forward.
As the Chairman of one of Egypt’s largest investment banks, Dr. Taymour is also aware of the challenges facing the country. He added that following the success of Egypt’s Economic Development Conference in March 2015, there needs to be a shift in focus to streamlining and implementation, noting that a lack of legislative reforms and an improved business environment could potentially deter investors. To read the full interview, click here.
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WORTH READING
How Qatar Used and Abused Its Al Jazeera Journalists, New York Times op-ed by Mohamed Fahmy: “The Doha management also neglected to tell me that it was providing Brotherhood activists in Egypt with video cameras and paying them for footage, which it then broadcast … I wonder how the Qatari poet Mohammed al-Ajami feels as he languishes in Doha’s central prison, serving a life sentence for “criticizing the emir” in a poem. You won’t find his plight highlighted on Al Jazeera’s outlets anytime soon.” (Read)
EGYPT IN THE NEWS
The depths of Egypt’s human rights crisis, Washington Post editorial: The Post published an editorial on Tuesday largely focusing on the release of Mohamed Soltan to the United States following his relinquishing of his Egyptian nationality. “Tolerance of Egypt’s repression is enabling the destruction of the country’s secular and pro-democracy forces — and ensures endless turmoil along the Nile.” (Read)
Egypt’s economic recovery will not guarantee political stability, Amr Adly writes for the Carnegie Middle East Centre. Reports about the economic health of Egypt “give too much weight to economic matters, while ignoring other important social, political, and structural factors.” Adly stressed the need for a “stable and functional political system” along with addressing issues of income distribution.
‘Ramy Essam needs to stay famous so he doesn’t get killed’: While we understand that it is often editors and not reporters who get to pick their headlines, even by BuzzFeed’s “standards” this title is shameless. And we’re talking about a website that encourages its users to react to stories using “stickers” including ‘lol’ and ‘omg.’
The crux of the story here is that Essam, who faces his mandatory military service, says he has “got a lot of threats, face-to-face, and on social media like, ‘We’re awaiting you,’” he says. “If I joined the military, that will not just be jail. That will be my end. Forever.” Essam “intends to stay in Sweden past his 30th birthday the following June, which will make avoiding military service a simple matter of paying a small fine. After that, his plan is to return home … He believes that building his fanbase and an international following while he’s in Sweden — a tall order for any working musician, much less one who sings exclusively about foreign politics in a foreign language — will provide him a measure of protection when he returns to Egypt.”
Whether or not you buy the notion that Swedish street credibility is a card you can play in Egypt, Essam could use new advisors: “His brother, Shady, has told Essam that he sees his Swedish sojourn in grand historical terms. ‘All the greatest people in history, at some point of their struggle, have traveled abroad to get more power until the unjust regime becomes weak,’ he says. ‘Jesus, Moses, the Prophet Muhammad — all have traveled abroad, then get back to their countries and continue the struggling.’” (Read)
DIPLOMACY
President Abdel Fattah El Sisi met with New Zealand’s Foreign Minister Murray McCully on Monday, according to an emailed statement from Ittihadiya. President El Sisi hailed New Zealand’s participation in the Multinational Force in Sinai as the two discussed developments in Libya as well as the Israeli-Palestinian issue.
Syria’s battle between Egypt and Saudi Arabia: Abdulrahman al-Rashed, former editor-in-chief of Asharq al-Awsat newspaper and former General Manager of Al Arabiya News Channel, continues the current campaign of clarification that Egypt and Saudi Arabia are in alignment with regard to a solution to the Syrian crisis. Al-Rashed states that Saudi Foreign Minister Adel al-Jubeir is in agreement with Foreign Minister Sameh Shoukry that a political solution whereby Syria forms a “hybrid” government including opposition and government figures — excluding Assad. (Read)
WORTH WATCHING
The news often being what it is, one needs a constant stream of comedy to maintain a grip on sanity. Season 5 of IFC’s breakout comedy Portlandia opened with the revelation that before they were sisterly co-owners of a non-profit feminist bookstore, recurring characters Toni and Candace first encountered each other in 1991 as high-powered New York City publishing executives vying for the same job after a merger. Following a tense confrontation in a restaurant where Candace, (played by Fred Armisen) reveals “I slept my way to the top — to the bottom, to the left, to the right; I mean, directions you couldn’t even imagine,” the two run into each other at a nightclub where they have a no-holds barred danceoff set to SNAP’s The Power. (Watch, running time: 1:58)
ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM
Pioneers’ Giza Power acquires cable factory
Al Mal | 02 June 2015
Giza Power, a subsidiary of Pioneers Holdings, announced the acquisition of a cable factory, Al Mal reported. The acquisition cost EGP 286 mn and the company said the move will enhance competitiveness. The acquired factory, unnamed in the news report, has an annual sales volume of EGP 1.2 bn. (Read in Arabic)
OIL & GAS
WorleyParsons gets nod to refurbish Suez Oil Processing Co.’s coking complex
Amwal Al Ghad | 02 June 2015
The Suez Oil Processing Company (SOPC) announced the signing of a USD 1.489 mn agreement with WorleyParsons to refurbish a coking complex. This comes as part of the government’s plan to improve the country’s refineries’ performance. SOPC says the deal will assess the technical capabilities of present equipment as well as refurbishing them to increase its productivity as the company aims to be able to produce 770,000 tonnes of diesel annually along with 165 tonnes of fuel oil and 50,000 tons of butane gas. (Read in Arabic)
BP pays Dana Gas for exploration costs in the Nile Delta
Dana Gas Press Release, Reuters | 02 June 2015
BP signed an agreement with Dana Gas to pay for its share of exploration costs in the El Matariya onshore concession area in Egypt. Reuters says BP will pay USD 39 mn of the cost of drilling a natural gas exploration well and that drilling is expected to begin in 1H2016.” Under the deal, BP will have the option to participate in parts of Dana Gas’ West El Manzala concession area,” Reuters reported. “We are very excited to be partnering with BP in drilling the Oligocene play onshore the Nile delta. This play has long been identified as having a significant potential in our concession area and, in particular, the Mocha prospect, which is the target of the exploration well to be drilled by BP in the El Matariya Concession Area with Dana Gas ‘ carried interest,” Dana Gas’ CEO Patrick Allman-Ward commented. (Read Dana Gas’ release and Reuters’ coverage)
MANUFACTURING
ECHEM looking for alternatives to finance three projects
Al Borsa | 02 June 2015
The Egyptian Petrochemicals Holding Company (ECHEM) said it is actively looking for sources to fund three expansion projects. ECHEM said it contacted the European Investment Banks regarding the projects along with having presented preliminary studies to over 31 potential foreign partners. The projects involve expansions in the production of: cement, sodium carbonate, and car tires and are set to cost EGP 9.2 bn in total. (Read in Arabic)
Arabian Cement faces 52% profit decline despite higher revenues
Daily News Egypt | 02 June 2015
Arabian Cement reported an 11% revenue increase (EGP 585 mn) in 1Q2015 compared to the same quarter in 2014. The leading cement producer however, suffered a significant 52% drop in net profits (EGP 56 mn) this quarter; attributing the losses to higher transportation costs and the devaluation of the Egyptian Pound. (Read)
Cabinet allocates EGP 200 mn to develop industrial zones in Upper Egypt
Amwal Al Ghad | 02 June 2015
The cabinet approved the allocation of EGP 200 mn towards developing industrial zones in Upper Egypt, said Mohamed Fareed Khamis, chairman of Oriental Weavers and head of the Egyptian Union for Investors Associations. Speaking at a meeting of the EUIA, Khamis recapped some what was discussed in his meeting with PM Mahlab, which included a tacit agreement with the government to help refurbish and overhaul dilapidated factories in Upper Egypt. (Read in Arabic)
REAL ESTATE & HOUSING
Housing Ministry approves expanding the size of buildings on school land plots
Amwal Al Ghad | 01 June 2015
The Housing Ministry approved the Education Ministry’s request to expand the building area on land plots allocated for schools to 35% from 30%. The Education Minister says the request sought to expand schools’ capacities. The issue arose when a school had its building plans disapproved after the building area was set to be 31.35% of the total land area. (Read in Arabic)
NBE provides EGP 150 mn grant to develop Gheit El Enab
Al Mal | 02 June 2015
National Bank of Egypt Chairman Hisham Okasha announced that the bank would donate EGP 150 mn to help fund the urban renewal and development project at the Gheit El Enab slums in Alexandria. Okasha stated that the bank would release the donation over the next three year, which would mean EGP 50 mn would be paid this year. (Read in Arabic)
NUCA announces tender to build 60K houses worth EGP 9 bn
Al Borsa | 02 June 2015
The New Urban Communities Authority (NUCA) announced that it has invited 40 companies to bid for a tender to develop 60,000 buildings in 12 to 16 months. Among the companies invited were Arab Contractors, Al Mahmoudia General, and ASEC. 10,000 of these buildings will in Sixth of October City, while the remaining buildings will be built around Egypt. (Read in Arabic)
TELECOMS & ICT
Orange to shore up investments in ICT sector in Egypt
Amwal Al Ghad | 02 June 2015
Mobile network operator Orange, the parent company of Mobinil, announced it will increase its Egyptian investments after the company’s chairman met with Prime Minister Ibrahim Mahlab and CIT Minister Khaled Negm. (Read in Arabic)
BANKING & FINANCE
EFG Hermes to launch Islamic Investment Fund
Amwal Al Ghad | 02 June 2015
The leading regional investment bank will launch of its SAR 50 mn (EGP 101.7 mn) Islamic investment fund in Saudi Arabia. According the firm’s Maged Kebara in Riyadh, EFG Hermes is on the verge of receiving approvals from the Saudi Government to launch a fund named Hasad that will focus entirely on Shariah-compliant Saudi equities. Kebara added the firm already manages assets in Saudi Arabia of over SAR 1 bn (EGP 2.03 bn). (Read in Arabic)
EFG Hermes in talks to value the Religious Endowments Authority’s assets
Al Borsa | 02 June 2015
The Religious Endowments Authority began negotiations with EFG Hermes’ investment banking division over valuing the ministry’s various holdings. The Authority is considering listing 4.8% of the Wataniya Group for Awqaf Investments on the EGX. The Group is set to record revenues of EGP 35 mn this year, and a source there expects an EGX listing to decentralise decision making and aid the Group’s growth. (Read in Arabic)
NBE targets EGP 4 bn in profit this fiscal year
Amwal Al Ghad | 02 June 2015
National Bank of Egypt is targeting a net profit of EGP 4 bn FY2014/15, a board member told Amwal Al Ghad. NBE is aiming to grow by 20% across all sectors. For the first half of the fiscal year, the bank had recorded a net profit of EGP 2.3 bn, growing by 25% y-o-y. (Read in Arabic)
OTHER BUSINESS NEWS OF NOTE
3,731 companies established this year with EGP 6.612 bn in capital -GAFI
Al Mal | 02 May 2015
GAFI announced that 3,731 companies were established during the first four months of the year, Al Mal reported. In total, the companies had a capital of EGP 6.612 bn, 23% larger than the intake in the similar period last year. Of the total, EGP 433.1 mn of the new capital came from Arab countries – a drop from the EGP 593.6 mn recorded during the same period last year. (Read in Arabic)
EGYPT POLITICS + ECONOMICS
Egypt grants DRC two solar power stations
Al Borsa | 01 June 2015
Egypt is granting the Democratic Republic of Congo two solar power stations, Al Borsa reported. The stations will have a total cost of USD 6 mn and are set to be able to generate 2 MW. The Egyptian Fund for African Cooperation is funding the project. A government source praised Congo for siding with Egypt and Sudan and refusing to sign on the Entebbe Nile Basin Initiative. (Read in Arabic)
Trading under CIQ MoU between Egypt and China cancelled
Al Borsa | 02 June 2015
Industry and Trade minister Mounir Fakhry Abdelnour cancelled trading with China under the China, Inspection and Quarantine (CIQ) protocol which has been in effect since 2009. The stated reason for the decision was to curb the activities of counterfeit goods exporters from China and their trading partners in Egypt who have taken advantage of the laxity of the CIQ protocol. Abdelnour stated that Egypt and China are working diligently to establish a new protocol governing the exchange of goods between the two countries. (Read in Arabic)
Transport ministry surprises shipping sector by raising service fees on ports after sudden meeting
Al Borsa | 02 June 2015
The maritime cargo transport sector woke up to a shock on Tuesday as the Transport Ministry issued a seemingly sudden decision to raise service fees at ports and facilities, some by up to 500%. The decision, which was taken without consultation with the private sector, came after an unannounced meeting of the Supreme Council for Ports which took place on Tuesday. According to sources the decision was known and had been in the works for over a year, but kept being postponed due to cabinet shifts. (Read in Arabic)
“Feloul” will win majority in parliament -Mohamed Anwar Sadat
Al Mal | 02 June 2016
Reform and Development Party leader Mohamed Anwar Sadat expects that former NDP politicians, businessmen and cronies will hold a majority in the coming parliamentary elections. He added that political parties remain weak. (Read in Arabic)
ON YOUR WAY OUT
Businessman Ahmed Bahgat said NBE is manipulating the asset valuation process that is preceding an impending asset seizure, Al Borsa reports. He denies allegations that Bahgat Group had delayed payments due to NBE and said that the group was sincere in its attempts to negotiate and reach solutions in good faith. He added that Bahgat Group still awaits a final court verdict, despite what NBE is saying, and hoped a solution is reached. NBE’s lawyer says the court decision is final and that Bahgat’s assets will be seized by the bank.
DBK Pharma’s board of directors has approved the public offering of 35% of the company’s stock, AMAY reports. Shares will be offered at EGP 3.25, a discount to their fair value of EGP 4.05, the newspaper said. (Read in Arabic)
BY THE NUMBERS
USD CBE auction (Tuesday, 02 June): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Tuesday, 02 June): 7.67 (unchanged from Sunday, 24 May, Reuters)
EGX30 (Tuesday): 8,847.59 (+1.17%)
WTI: USD 60.94 (-0.52%)
Brent: USD 65.22 (-0.41%)
TASI: 9,716.71 (flat)
ADX: 4,589.78 (+0.62%)
DFM: 3,990.46 (+1.23%)
KSE Weighted Index: 424.97 (+0.20%)
QE: 12,184.80 (+0.07%)
MSM: 6,411.15 (+0.36%)
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