Tax Authority wants to keep wealth surtax. EGP to hit USD 8.50-9.00? Investment Act exec regs out “within hours.” El-Mallawany to chair Arla-Juhayna JV. Arabtec melting down. Egypt seeks U.S. border security system. Egyptian Pink Floyd kid is back.

WHAT WE’RE TRACKING TODAY

It’s a messy end to the week, ladies and gentlemen:

How low can we go? The EGX slid again yesterday as foreign and local institutions continued to liquidate positions and retail investors dumped market staples including PHD and CIB as well as newcomer Emaar Misr. The EGX30, dominated by CIB, sank 2.6% on Wednesday to its lowest close in 15 months; the index is down more than 15% year-to-date.

We’re not the only ones hurting. Gulf markets also closed down yesterday, with experienced financial-markets writer Mahmoud Kassem over at The National in the UAE noting that shares in the Emirates fell as “a sharp sell-off of Chinese equities began to spread to markets around the world, raising the spectre of financial contagion.” Also weighing on global markets is what many analysts are now presenting as the “near-certainty” that Greece will exit the Eurozone.

Is Greece headed for the exit? The FT reports that both the IMF and the EU are stepping up pressure on Europe to avoid a “Grexit”. You can just about hear Russia Today squealing with glee as it writes “In case of Grexit, breakup of eurozone will come fast,” while The Guardian believes that a “Grexit would strengthen, not weaken, the eurozone.” Greek Prime Minister Alexis Tsipras has asked for a new three-year bailout. The deadline for an agreement is Sunday.

Chinese stocks are still tanking despite the communist government’s attempt to prop up a stock market that’s down more than 30% from its June high water mark. 500 more companies have suspended trading in their shares, and the rout is now spilling into China’s opaque debt market. Reuters has the best wrap-up of yesterday’s developments, quoting an analyst that the risk of damage to China’s real economy is significant: “We expect slower growth, poorer corporate earnings, and a higher risk of a financial crisis.” The New York Times has a good interactive explainer if you want background.

Still not at least slightly concerned about what China could portend for the global economy?Check out the graph accompanying Bloomberg’s piece on how “China Brokers Dust Off Wall Street Playbook From 1929 Crash.”

Tech glitches and not cyber attacks forced the New York Stock Exchange to stop trading for nearly four hours yesterday, grounded United Airlines planes and brought down the Wall Street Journal‘s website. Officials are downplaying the odds that the three incidents were the result of cyberattacks. Our inner conspiracy theorists aren’t convinced.

Barclays’ non-executive directors led the ouster yesterday of embattled CEO Anthony Jenkins after investment banking unit chief Tom King threatened to leave if Jenkins stayed, the WSJ reports.

Hardliners in Iran aren’t happy at the prospect of nuclear pact with the P5+1 countries as U.S. officials backed away from earlier suggests they might scrap the end-of-week deadline and make the talks an “ongoing process.” Negotiators are newly confident they might reach an agreement this week — one certain to cause heartburn in Riyadh and across much of the GCC.

The Journalists’ Syndicate is set to meet today with the editors-in-chief of a number of newspapers to discuss the draft anti-terror law and its implications for freedom of the press: “The syndicate supports the existence of an anti-terrorism law, but without the five articles that work against press freedoms,” said the syndicate’s general secretary, Gamal Abdel Rahim, according to AMAY as reported by Egypt Independent.

Still have an appetite? Maghreb will be at 7:00pm today, while fajr will be at 3:17am, according to Islamic Finder.

ON THE HORIZON

The first day of Eid will be Friday, 17 July, per calculations by the National Astronomy and Geophysics Research Institute. Neither Cabinet nor the CBE have yet weighed in on the matter.

LAST NIGHT’S TALK SHOWS

Lamees El Hadidy, Magdy El Galad, and Khairy Ramadan were off on Wednesday.

The always insightful Rania Badawi filled-in for Amr Adeeb on Wednesday, kicking-off the show with a discussion of the draft anti-terror bill. Badawi emphasized the importance of passing the draft anti-terror bill during this difficult period in Egypt’s history; “We have to admit that we are fighting a war against terrorists. The government must be able to act swiftly,” said Badawi. Cutting insights, we told you.

She did, however, express reservations about article 33 of the draft bill, which criminalizes reporting statistics odds with the party line on terror attacks. Badawi: “Egypt’s journalists were on the front line in our country’s war against the Ikhwan. It is inappropriate for people to question our patriotism and to accuse us being fifth columnists.”

Sada Al Balad’s Moustafa Bakri then called-in to provide an opposing opinion: “As a journalist, I declare that I stand by the Egyptian military and the government. Now is not the time to questions our government; we are in a state of war. When a country is in a state of war it is normal for the government to enforce certain limitations on journalism. The United States, for instance, was very harsh on its media when the Iraq War was taking place.”

Bakri’s conclusion, if you can stomach it: “If I break the law, if I write something that negatively impacts my government, I will hand myself in. This is my duty as a journalist.”

** READ ENTERPRISE IN ARABIC **

The beta edition of Enterprise Arabic is now available. Sign up here without charge.

SPEED ROUND

Wait, what? They’re not repealing the wealth surtax? Tax Authority supremo Abdel Moneim Mattar made a number of announcements in the authority’s annual sohour:

• He expects legislation will soon be enacted to extend for one year the 5% surtax on profits of over EGP 1 mn, making the measure last through the end of the new budget year, according to Al Borsa. Cabinet had promised to cut the surtax heading into the EEDC in Sharm El-Sheikh as part of its package of tax cuts, which included a 2.5 ppt cut of the maximum tax rate to 22.5%. We’re skeptical on this front, although the state’s scramble to close the budget deficit means anything is possible. We’ll be waiting for news from Cabinet.
• EGP 35 bn tax collection deficit caused by delays in collection from petroleum and a EGP 7 bn tax on the CBE, according to Al Mal.
• The total tax collected was EGP 267 bn, 90% of the target for FY 2014-15 broken down into EGP 105 bn sales tax and EGP 162 income tax, according to Al Masry Al Youm.

The EGP to USD exchange could reach EGP 8.50 to EGP 9.00 per USD within the coming months, says Hani Genena, Head of Research at Pharos, in a front-page piece in Al-Mal this morning. Genena called on the CBE to bring an end to its current “crawling peg” exchange rate policy and to instead implement a flexible FX regime. He also suggests that China’s economic slowdown will lead to a decrease in investment flows to other emerging economies, including Egypt’s.

The weekly meeting of the Council of Ministers took place yesterday in its usual Wednesday slot with Prime Minister Ibrahim Mahlab at the head of the cabinet table. Major decisions taken included:

• Ministers have Eid homework: Each ministry has to table a report immediately after the Eid El-Fitr holiday outlining how they plan to maximize revenues, best use state resources, and cut expenses going forward. Mahlab assigned the homework after meeting with President Abdel Fattah El Sisi, who encouraged the PM to have cabinet rationalize spending, Al-Ahram reports.
• Approving the establishment of a General Authority for Natural Protectorates. (Read in Arabic)
• Issuing a six-month moratorium on all building permits in the Agamy area in Alexandria (Read in Arabic)
• Forming a committee to look into how Egypt’s state radio and TV headquarters (Maspero) is supplied electrically and to take steps to ensure that no future power outages occur. (Read in Arabic)
• Commissioned the Housing Minister to prepare a plan to develop the city of Al Arish. (Read in Arabic)
• Ratified amendments to antiquities protection law (Read in Arabic)
• Establishing a Bioenergy Foundation for sustainable rural development (Read in Arabic)
• Establish more courts of first instance and amend jurisdiction of others (Read in Arabic)
• Ratified regulations concerning maritime transport (Read in Arabic)

Executive regulations to the Investment Act could be out “within hours,” Al-Masry Al-Youm said on Wednesday, citing a source at the Investment Ministry who said the regs were on cabinet’s agenda yesterday. They reportedly spell out specifics on taxing transit goods at FZs, avoiding double taxation (which we had figured was the purview of the tax code), and a new mechanism to settle investment disputes outside the judicial system, among other items. Youm7 adds that the regulations also stipulate the government will issue no new permits for factories producing alcohol or weapons, and GAFI will find itself home to a new agency responsible for helping allocate land to investors.

What they didn’t discuss: Of all the readouts and post-meeting reports we’ve sifted in the hours leading up to deadline this morning, there’s no news suggesting that Cabinet discussed yesterday the hotly debated anti-terror law or amendments to the elections acts that would pave the way for fall elections to the House of Representatives. Both topics were expected to dominate yesterday’s meeting.

That said: As Amr Adeeb suggested in remarks we noted in yesterday’s edition, there’s a faction withinCabinet willing to scrap the suggestion of jail time for journalists found guilty under the draft anti-terror law of reporting statistics that contravene the official line, according to Al Shorouk. Magdy El Egaity, head of legislation at the State Council, says the legislation department doesn’t mind removing the prison term from article 33 of the bill and leaving in a financial penalty, adding that the intent of the article is not to restrain journalists, drag them into courtrooms or put them behind bars. The Syndicate of Journalists submitted to Cabinet a detailed report of their objections to article 33, Minister of Justice Ahmed El Zend said in a statement, Al Shorouk reported. “The press syndicate should have been consulted about this law, and the law should have been proposed for public debate,” a cabinet statement quotes El Zend as saying after senior newspaper editors met with Prime Minister Ibrahim Mahlab, according to the AFP.

Negotiations with Mohamed Alabbar’s Capital City Partners to build the nation’s new administrative capital are ongoing, Investment Minister Ashraf Salman said on Wednesday. Salman added that should talks not result in an agreement, the government will present the project to other investors, noting that there have been no “catastrophes or impediments” to an agreement.

In a similar vein: Arabtec’s slow-motion meltdown continued yesterday as the company announced a shuffle of top management. In a disclosure sent to the DFM, the company says it has accepted the resignation of CFO Iyad Abdalrahim, Chief Human Resources and Administration Officer Yazan Hatamleh, and General Counsel Wassel Al Fakhoury. Arabtec appointed Ravi Murthy as the group’s new CEO. The shakeup comes as the Mahlab government’s negotiations with Arabtec regarding its participation in the mn homes programme were set to resume. The state had previously said on 22 June that it expected talks with the contractor to begin again within a week, but no reports of progress have since been made public.

Juhayna-Arla joint venture launches, Yasser El-Mallawany to be chairman: As we previously reported, Juhayna and European dairy giant Arla have formed a JV to make and market products including infant formula, cheese and butter, among other products. Top Arla execs including CEO Peder Tuborgh were in town on Monday for a signing ceremony attended by Trade and Industry Minister Mounir Abdelnour. ArJu aims to begin sales by October and is targeting revenues north of EUR 100 mn by 2020. Former EFG Hermes Co-CEO Yasser El-Mallawany has been tapped to serve as chairman of the new venture, which is 51% owned by Juhayna. El-Mallawany has been a non-executive director at Juhayna since 2000. Arla will manage the new venture. The local press has done a fair job of mangling both the news and the name of the new company. Examples here in English and here in Arabic.

Ahmed Abu Zeid appointed new foreign ministry spokesperson: Counselor Ahmed Abu Zeid has been named official spokesperson and supervisor of the MFA’s Public Diplomacy Department, succeeding Ambassador Dr. Badr Abdelaty, who was recently tapped to become ambassador in Berlin, according to astatement by the ministry. Abu Zeid has previously served at the Egyptian embassy in D.C., the Permanent Mission of Egypt to the United Nations in New York, and the consulate in San Francisco.

Israeli news website Globes tries to analyze claims that gas producers charge consumers extortionate prices for natural gas, bringing in large profits. They present some of the most recent developments in Egypt as a case study, noting that producers do not get to pocket the total price charged for gas. “In the new gas contracts signed by Egypt with gas companies ENI, BG, and Edison in recent months, it was willing to recognize a price of USD 5.88 per mmBtu. USD 1 of this price is considered the gas companies’ expenses. The USD 4.88 profit is divided between the private gas companies (40%) and [EGAS] (60%). The private gas companies do not pay taxes in Egypt; [EGAS] pays the tax for them. In the end, the developers are left with USD 1.95 per mmBtu.”

Telecom Egypt will have a license to launch a 4G mobile network by the beginning of 2016, Al-Shorouk quotes CIT Minister Khaled Negm as saying. The news follows recent reports we’ve picked up contending that the Communications and IT Ministry will auction licenses for 4G spectrum in the near future.

Tunisia has begun building a wall across its border with Libya, according to Al Shorouk. The 168-kilometer-long sand wall will also be supplemented with a trench and be finished by the end of 2015, Tunisian Prime Minister Al Habib Al Sed said in a statement. The wall is being built to prevent illegal entry by terrorists, he added.

Egypt seeks USD 100 mn American border security system -Pentagon: According to a statementreleased by the Pentagon on Wednesday and as reported by the Washington Post, Egypt has requested border surveillance equipment, towers and training at a cost of USD 100 mn. From the statement: “The Government of Egypt has requested a possible sale for procurement and construction of one (1) commercial off-the-shelf border security mobile surveillance sensor security system that will include the following sub-systems: mobile surveillance sensor towers, mobile command and control (C2) systems, a regional C2 system, voice/data communications equipment, spare parts, support equipment, personnel training, training equipment, publications and technical documentation, U.S. Government and contractor technical and logistics support services, and other related elements of logistics and program support … This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country that has been and continues to be an important force for political stability and economic progress in the Middle East.”

U.S. training 60 Syrian rebels: According to testimony from US defense secretary Ash Carter given to the Senate armed services committee on Tuesday, the United States is so far only training 60 Syrians to fight Daesh, as reported by The Guardian. The Pentagon had hoped to train 5,000 Syrian fighters per year for the next three years. “Lindsey Graham of South Carolina … asked Carter whether Obama would leave office before Assad did. The top cabinet official was left speechless in response.”

Oman to build giant solar plant to extract oil: One of the world’s largest solar projects is set to be constructed in Oman in order to help extract heavy oil from the country’s otherwise difficult-to-access fields. The plant, titled Miraah, will “generate an average of 6,000 tons of solar steam daily for oil production,” and is set to “save 5.6 tn British Thermal Units of natural gas each year.” (Read in the WSJ, paywall)

The Egyptian kid who designed Pink Floyd’s ‘Endless River’ album art is back in the spotlight.Visual artist Ahmed Emad Eldin has been named one of Adobe Photoshop’s 25 Under 25, as reported by Egypt Independent. You can view the Behance page for the project as a whole here and Emad Eldin’s project page, with his image based on the pyramids, here. Emad Eldin first drew attention for having his work featured as the album art for Pink Floyd’s Endless River last year at the age of 18.

***
A MESSAGE FROM PHAROS HOLDING

Is the CBE moving to a flexible FX regime?

The governor of the Central Bank of Egypt noted during a nationally televised interview that periods of USD strength could be followed by periods of USD weakness against the EGP, alluding to a possible shift in Egypt’s currency exchange policies from a ‘crawling peg’ to a more flexible regime of ‘two-way volatility,’ as Pharos Research has been advocating for many months.

In line with our view, the CBE has executed a round of EGP devaluation against the USD as a way of offsetting the EGP’s appreciation against a number of other currencies, boosting competitiveness that had been negatively impacted in the bargain. For more details, click here.
***

EGYPT IN THE NEWS

The top story on Egypt in the international press continues the restrictions freedom of the press threatened by the draft anti-terror bill. The FT’s Kristen McTighe notes the release on Tuesday of a joint statement signed by 17 civil society groups who expressed their objection to the controversial article 33, in particular.

The Pittsburgh Post-Gazette’s latest editorial on Egypt begins with the passage: “Egypt, under President Abdel Fattah el-Sisi and U.S. policy, could be headed downhill toward the chaos of nearby Libya, Syria and Yemen.”

There is a petition circulating on Avaaz to demand that UK Prime Minister David Cameron rescind his invitation to President Abdel Fattah El Sisi and that “the UK government should engage with the democratic opposition in Egypt to explore alternatives to Sisi’s rule.” As of Wednesday, the petition had roughly 1,200 signatures, just 98,800 signatures shy of their goal.

The recently removed giant-sized replica of Nefertiti’s bust has motivated the Guardian’s Jonathan Jones to announce: ‘It’s time to revolt against ugly public art’: “Egypt has had a revolution, and we should emulate it. We need a revolution against bad public art. Ugly sculpture is a global phenomenon. From a daft statue of Peter Falk in Budapest to the colossally kitsch couple at St Pancras Station in London, clumsily executed excuses for figurative art are insulting public spaces. And we put up with it … Not so in Egypt.” (Read)

WORTH READING

For Egypt, Daesh is a threat amongst many, Stratfor believes. While we do not necessarily subscribe to the piece’s theorized link between the state’s conflict with political Islam and fueling terrorist recruitment, the piece is noteworthy as it suggests “the Sinai attack was thus significant in that it revealed the evolution of an Islamic State franchise’s methods and hinted at the movement of jihadists between battlefronts … we suspect that at least some of the militants involved in this attack had returned to Sinai after fighting in Syria or Iraq — or that foreigners with experience fighting with the Islamic State’s core were on the ground shaping the battle plan.” The piece also suggests that the assassination of Prosecutor General Hisham Barakat, which Stratfor pins on Ansar Beit Al Maqdis specifically, was not coordinated with the Sinai attacks that followed. The two groups are described as more rivals than allies, so “Egypt is thus not facing just one sophisticated campaign in Sinai; it is facing multiple jihadist groups with proven abilities to strike hard targets.”

DIPLOMACY

Foreign Minister Sameh Shoukry is in Juba, South Sudan today to celebrate the country’s independence. The Foreign Affairs Ministry said Shoukry will also meet with President Salva Kiir and discuss with him potential political solutions between the South Sudanese government and the opposition.

Saudi ambassador Ahmed bin Abdulaziz Qattan hosted an iftar in honor of Prime Minister Ibrahim Mahlab at the ambassador’s official residence yesterday. Also attending were Egypt’s ministers of justice, trade and industry, health, transport, housing and electricity as well as the governors of Cairo and Giza, ambassadors from Arab nations, and members of the Saudi business community in Egypt, according to a press note from the embassy.

ENERGY

Maersk Discoverer drills deepest well in Egypt for BP
Offshore Magazine | 07 July 2015
The Maersk Discoverer rig drilled the deepest well in Egypt and the longest in the Mediterranean while it was at work for BP earlier this year. Maersk Discoverer reached a depth of 6,400 meters drilling BP’s Atoll-1 well, which was drilled in a total of 234 days — 62 days ahead of BP’s target. “Maersk Drilling said that maintenance of the BOP prior to the Atoll well, and the involvement of BP and Maersk Drilling’s Technical Authority teams enabled the team to keep the BOP functioning on the wellhead for 201 days,” Offshore Magazine reported. (Read)

Magapetco looking to extend rights to concession for 10 more years
Al Mal | 07 July 2015
Magapetco is engaged in talks to potentially extend its rights to its concession in Hurghada for an additional 10, an EGPC source told Al Mal. The original agreement would have seen Magapetco’s right to the concession expire by 2019. The source said that EGPC might agree to extend the rights if Magapetco presents a plan to expand production. EGPC is currently assessing the proposal. (Read in Arabic)

Egyelec delivers electricity to New Cairo factories
Al Mal | 07 July 2015
Egyelec announced the completion of works to deliver electricity to 1,000 factories in the third settlement in New Cairo. The process to connect the factories to the New Cairo transformer stations took a year on the back of delays arising from theft. The project cost EGP 65 mn, the newspaper reports. (Read in Arabic)

** For further reading: ‘Solar sector in Egypt shines light on cost savings,’ published on Wednesday by veteran financial writer Patrick Werr. “In general, renewable energy still costs a lot more than fossil fuel, but there are a few important niche markets in Egypt where significant savings could be achieved reasonably quickly, both for consumers and the government.”

INFRASTRUCTURE

24 sewage projects completed
Al Mal | 08 July 2015
Twenty four sewage projects have been finished and are now operational, as part of the 135 projects being implemented in villages that need them the most. The projects are backed by EGP 1.8 bn in Emirati funding, said Minister of Local Development Adel Labib. Eight of the treatment facilities are in El Gharbiya, six in El Beheira, four in Minya, three in Sohag, two in El Menoufiya and one in El Sharkiya, he added. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

GASC to import 180,000 tons of wheat from Russia, Ukraine
Youm7 | 08 July 2015
The General Authority for Supply Commodities (GASC) contracted to purchase a total of 180,000 tons of wheat from Russia and Ukraine from August 11-20, 2015. GASC Vice President Mamdouh Abdelfattah told Youm7 that GASC completed the agreement on behalf of the Ministry of Supply and Domestic Trade. Russia will provide 120,000 tons, while a further 60,000 will originate from Ukraine. GASC will be paying an average of USD 212.26 per ton. (Read in Arabic).

Silos and Storage Company reports EGP 200 mn revenues
Al Mal | 08 July 2015
The Egyptian Holding Company for Silos and Storage (EHCSS) reported revenues of just over EGP 200 mn in FY 2014-15, EGP 19 mn more than FY 2013-14, in a meeting with Ministry of Supply Khaled Hanafy. The minister also discussed renovations at pier 85 in Alexandria and the Abbas pier in Port Said worth EGP 210 mn to accommodate the wheat trade. (Read in Arabic)

MANUFACTURING

Banning cotton imports “disastrous,” FEI says
Al Masry Al Youm | 08 July 2015
The decision to ban cotton imports is disastrous, Federation of Egyptian Industries (FEI) chief Mohamed El Sewedy said. The decision would damage the national economy and has not been assessed thoroughly with its stakeholders, El Sewedy added. The FEI will present an “urgent memo” to the cabinet urging it to revise the decision. Garment producers cannot rely on long staple Egyptian cotton due to its higher cost and problems in spinning, the FEI noted. (Read in Arabic)

Chemical, fertilizer exports down 35%; Turkey remains the sector’s largest export market
Amwal Al Ghad | 08 July 2015
Industry exports fell 35% to EGP 8.8 bn in the first five months of 2015 from EGP 13.6 bn in the same period last year, according to a report from the Chemicals & Fertilizers Export Council. Twelve sectors under the council reported drops in their exports, including organic chemicals (down 90%), fertilizers (off 65%), miscellaneous chemicals (down 44%), while inks and paint (cut by 37%). Turkey remains the top importer of Egyptian chemicals and fertilizers with EGP 1.4 bn in purchases, followed by Saudi Arabia with EGP 620 mn, and France with EGP 405.6 mn, the report added. (Read in Arabic)

USD 200 mn in exports by end of year, says Chamber of Leather
Amwal Al Ghad | 08 July 2015
The leather and tanning sector will not meet its goal of USD 400 mn in exports by the end of the year, says Gamal El Samaloty, head of the Chamber of Leather and Tanning at the Federation of Egyptian Industries. Instead, El Samaloty only expects USD 200 mn in exports, a 50% drop, which he attributes to shortages in raw materials. (Read in Arabic)

HEALTH & EDUCATION

Pharmed Healthcare wins military tender
Al Mal | 08 July 2015
Pharmed Healthcare won a tender issued by the Armed Forces to provide 12,000 boxes of a Sovaldi biosimilar at EGP 680 per box, according to Pharmed Healthcare CEO Mohamed Mabrouk. The news follows theannouncement we covered early last week that the military was sourcing generic Sovaldi to treat military personnel infected with the virus. (Read in Arabic)

REAL ESTATE & HOUSING

NUCA drops eight tenders in five new cities
Al Mal | 08 July 2015
The New Urban Communities Authority will issue calls for tenders to build a fire station in New Tiba; a school and health unit in Shorouk; plantation and landscaping in New Assiut; as well as complete operations and maintenance on water and sewage grids in New Beni Suef, according to development authority heads of respective cities. (Read in Arabic)

New real estate developer looks to invest EGP 1.7 bn
Al Mal | 08 July 2015
PACT, a newly established real estate developer, intends to invest EGP 1.7 bn over 10 years in Egyptian projects after completing necessary land ownership and licensing procedures, according to a statement from the company. PACT recently launched its first project in Egypt, White Bay in Sidi Heneish, North Coast, in partnership with Redcon Construction and is currently cooperating with Cisco to provide smart home solutions. It is also preparing a joint venture with NBE to launch White Bay Ain El Sokhna, the report added.(Read in Arabic)

Hill International reports USD 640 mn revenues
Amwal Al Ghad | 08 July 2015
Hill International North Africa reported USD 640 mn in revenues at the end of last year, and aims to boost revenues by 20% this year by increasing the number of projects it manages, said regional manager Waleed Abdel Fattah, noting the recent uptick in activity in the Egyptian real estate market. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Egypt’s Ambassador in India meets with Mahindra executive, discusses investment
MFA Press Release | 08 July 2015
Egypt’s Ambassador to India met with Ashok Sharma, CEO Samriddhi, Mahindra’s agribusiness arm, to discuss expansion in Egypt, the Foreign Affairs Ministry said. Sharma reviewed the company’s operations in Egypt and expressed the company’s desire to expand land reclamation efforts in Egypt. The Ambassador, on the other hand, outlined to Sharma the results of the EEDC and the new investment law. (Read in Arabic)

Arab Misr Insurance Group targets EGP 480 mn total loans by June 2016
Amwal Al Ghad | 08 July 2015
The Arab Misr Insurance Group aims to increase total loans to EGP 480 mn during FY 2015-16, according to Managing Director Alaa El Zuheiry. An announcement will be made in the coming days about signing a contract with two banks to promote their products through their branches, he added. (Read in Arabic)

General Motors Egypt signs agreement with Egyptian Food Bank
Youm7 | 08 July 2015
General Motors Egypt announced that it signed an agreement with the Egyptian Food Bank to provide food for the village of Al- Barambal in the Giza Governorate during the remaining days of Ramadan. Tarak ‘Ata, a representative of GM Egypt, said that Al-Barambal, with approximately 31,000 inhabitants, suffers from a lack of basic necessities and resources. (Read in Arabic).

171 Egyptian shipments prevented from entering EU in past 15 years
Al Masry Al Youm | 08 July 2015
The Rapid Alert System for Food and Feed (RASFF) issued a report yesterday stating that more than 171 Egyptian vegetable and fruit shipments were rejected by various European Union countries from 2000-2015 due to pesticide issues. The report claimed that between 2000-2011, 58 Egyptian shipments were rejected, but the number saw a considerable spike between June 2011 and March 2015 with 113 Egyptian agricultural shipments rejected. Ali Essa, President of the Agriculture Export Council, confirmed the published RASFF statistics, but added that the rejected shipments cited in the report were “negligible”, explaining that Egypt exports more than 20,000-30,000 shipments to the European Union annually. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Higher Education Ministry and SFD sign entrepreneurship MoU
Ahram Gate | 08 July 2015
The Higher Education Ministry and the Social Fund for Development signed an MoU to support SMEs and to encourage entrepreneurship, with Prime Minister Ibrahim Mahlab in attendance. The MoU aims to spread knowledge about entrepreneurship and to provide vocational training courses and guidance through seminars and business incubators. The government hopes the initiative will drive the youth towards private enterprise rather than have them stick to traditional employment opportunities. (Read in Arabic)

Opposition figure Ayman Nour to leave Beirut to Turkey, then Europe following Egypt’s refusal to renew passport
Ahram Online | 08 July 2015
“I have decided to leave for Turkey then [to] Europe,” Beirut-based opposition figure Ayman Nour said via Twitter on Tuesday. Nour’s case filed against Egyptian ambassadors in Turkey and Lebanon, the interior minister and prime minister regarding the cancellation of the decision to renew his passport has been postponed to 25 August. (Read)

ON YOUR WAY OUT

Prime Minister Ibrahim Mahlab inaugurated the Attaqa Power Station built by El Sewedy and Siemens via video conference from a hotel in Cairo. The ceremony was attended by a number of ministers as well as company executives. Youm7 has pictures from the event.

Breathe easy, Egypt: Zahi doesn’t want to be minister again. But he would like to find a way of serving the country once more. Al Shorouk has coverage of Zahi’s recent appearance on CBC Extra, the latest front in former Antiquities Minister Zahi Hawass’ bid for post-revolution rehabilitation. Befitting Zahi, his quest began (so far as we can tell) with an interview with the foreign press, on which we reported a week ago.

The Manpower Ministry will begin advertising vacancies through the mobile operators, Al Borsareported. The Ministry, in collaboration with the Planning Ministry, reached an agreement with Mobinil and Vodafone to begin send subscribers messages notifying them of new vacancies.

Ahmed El Zend, the Justice Minister, approved a decision to rename the Judicial Museum in New Cairo after slain Prosecutor General Hisham Barakat, Amwal Al Ghad reported.

Unrest in Algeria: At least 22 people are believed to have been killed in clashes between members of the Arab and Berber communities in the Algerian oasis city of Ghardaia, the BBC reports.

BY THE NUMBERS

USD CBE auction (Tuesday, 07 July): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Tuesday, 07 July): 7.92 (+0.04 from Monday, 06 July)

EGX30 (Wednesday): 7,550.98 (-2.60%)
Turnover: EGP 615.1 mn (29% above the 90-day average)

WTI: USD 51.80 (-1.01%)
Brent: USD 57.27 (+0.74%)

TASI: 9,057.9 (-0.3%)
ADX: 4,692.3 (-0.7%)
DFM: 3,986.6 (-1.4%)
KSE Weighted Index: 417.6 (+0.3%)
QE: 11,787.1 (-1.2%)
MSM: 6,402.7 (-0.4%)