Wednesday, 15 July 2015

It’s official: Only two work days next week.

TL;DR

WHAT WE’RE TRACKING TODAY

48 hours from now, we shall begin our mornings with coffee once more.

Finance minister Hany Dimian is heading Egypt’s delegation at the UN’s Third International Conference on Financing for Development in Addis Ababa, Ethiopia. The Guardian has a short explainer of what’s up for debate in the conference. It’s not the woolly-headed stuff you’d expect: On the agenda, alongside the standard discussions of “low-carbon and climate-resilient development” are issues of immediate import to business, including:

Increasing tax collection
A movement to create an international tax collection body
Curbing illegal financial flows by 2030
Bridging the global infrastructure gap in the developing world

When do we eat? Iftar will be at 6:58pm today, while the cut-off for sohour will be at 3:23am, according to Islamic Finder.

United Nations Special Representative and Head of the UNSMIL Bernardino León will address the UNSC on Wednesday regarding progress made on the recent accord between the internationally-recognized government in Tobruk, the city of Misrata, and others. The Islamist Tripoli rebels have yet to sign the peace agreement. Egypt has declared its support for the peace accords.

NEXT WEEK’S HOLIDAY CALENDAR

It’s official: Next week will be a very, very short work week.

The first day of Eid will be Friday, 17 July, per calculations by the National Astronomy and Geophysics Research Institute.
Banks and the stock market are closed Sunday and Monday, reopening on Tuesday, according to a decision handed down late yesterday by CBE governor Hisham Ramez.
The Eid break for the government will begin on Friday and last until Monday, according to a statementfrom the Prime Minister’s office. Civil servants will trudge back to their desks on Tuesday morning.
Thursday, 23 July is a national holiday in observance of the 1952 Revolution.
That leaves Tuesday and Wednesday as the only work days next week. And it’s the official start of Sa7el season, so…

*** ENTERPRISE IS BRIDGING, TOO: We’re off 19-23 July to recharge our batteries and gear up for what we expect will be a busy second half of the year — though odds are good we’ll drop into your inbox every now and then over the break with a surprise or two. We’re back to our normal publication schedule on 26 July, with a new issue every morning before 7am, Sunday through Thursday.

LAST NIGHT’S TALK SHOWS

Lamees El Hadidy was off on Tuesday, while Rania Badawi filled in for Amr Adeeb, with the result being — you guessed it — a program devoid of substance. Badawi kicked-off with an overview of President Abdel Fattah El Sisi’s recent speech on religious tolerance (more on that below).

Shortly after the completion of her monologue, a female director, whose name we unfortunately cannot recall, telephoned-in to discuss the depravity of Egypt’s Ramadan shows. The director attributed rising immorality on Ramadan serials to the state’s shrinking role in overseeing the production of the television programs. Because yes, of course, more censorship will result in a higher-quality product.

Anonymous director: “Our mosalsalat are all about drug-use and Egyptian women dancing; this is not the country we know. This is an inaccurate portrayal of our culture.” Yes, anonymous director, you’re right: Nothing insalubrious ever happens in Egypt. Ever. We’re the sole utopia in the world.”

The comments reflect the President’s recent criticism of Ramadan dramas for the same aforementioned reasons.

SPOTLIGHT ON: El Sisi speeches slam Al Azhar, touch on current affairs

President Abdel Fattah El Sisi gave two speeches in the past 24 hours or so that are making waves at home. The first of them — already dubbed his “Laylet El Qadr speech” — will likely cross over to the international press, where right-wing media in the United States, France and Italy have lately taken a shine to El Sisi’s views. We view the speech as particularly significant given its tone, venue and the fact of the president having chosen to deliver it on one of the most important days on the Muslim calendar.

Laylet Al Qadr speech (Watch, running time 15:26)

President Abdel Fattah El Sisi expressed his displeasure over what he asserted was Al Azhar’s inability to positively impact the state of religious discourse in Egypt in an address to the institutions’ scholars and leadership on Monday night. The president chided Grand Imam Ahmed El Tayeb and other Al Azhar clerics — all of whom sat awkwardly in attendance — on numerous occasions over the course of the speech.

El Sisi began by renewing his call for a religious revolution. “Last year, I called for a religious revolution. This revolution was not meant to be a violent struggle, but rather a revolution of the way we approach understand, and practice our religion,” said the president.

He then went on to attribute the rise in terrorism to the failure of scholars in educating the common man. “We need remove incorrect ideas which lead to terrorism from our religious curricula,” said the president.

The President’s comments come on the heels of news that Al Azhar is set to reform its primary education curriculum to root out extremist thought, following similar initiatives by the Azhar at the level of higher education. The plan is not without its numerous critics, who challenge Al Azhar’s ability to do anything but indoctrinate its students. Likewise, the speech closely follows an announcement by the Ministry of Awqaf banning Salafi preachers Mohamed Hassan and Mohamed Hussein Yakoub from delivering sermons during the Eid El-Fitr Friday morning prayer. Imams are also being expected to adhere to a unified sermon provided by the ministry, with ministry officials saying that unauthorized open-air prayers will be dispersed.

The President continued with his remonstration of Al Azhar, stating that the role of clerics should not be limited to giving speeches at mosques and churches, but should also include spreading peace among humanity.

“You are the one responsible for religious discourse, and God will ask me whether I am satisfied or not,” El Sisi said, directly addressing El Tayeb.

El Sisi also discussed Egypt’s atheist community during the speech, saying that they were still Muslims and Christians, but individuals who simply lost faith as a result of the injustice they had witnessed in the world. One day, he said, they will return to the fold.

Egyptian Family Iftar Ceremony (Watch, running time 18:14)

The president’s speech on Tuesday evening was less formal in tone than the Azhar address. He began by commemorating the Egyptian soldiers who had fallen in combat in recent months, using that as a jumping-off point for a discussion of martyrdom, stating that the concept was not restricted only to those who had fallen in battle. Rather, all Egyptians could be considered martyrs in the right circumstances, including mothers and fathers who cared for their children.

El Sisi directly addressed the controversial draft anti-terror bill. Addressing the nation’s journalists, he claimed the bill was not drafted to limit speech. That said, the president asked that Egyptian journalists be mindful of the news they report, as it can often have a detrimental effect on the Egyptian state and its citizens. “The media needs to be aware that the parents of Egyptian officers suffer whenever you report that an Egyptian soldier has fallen. There is a young man that is fighting for this country on your behalf. Take care of him.”

El Sisi concluded his speech by reiterating that parliamentary elections will occur before the end of the year and that the New Suez Canal would be inaugurated on 6 August.

** READ ENTERPRISE IN ARABIC **

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SPEED ROUND

The process to begin constructing the Daba’a nuclear power plant is going at an “unprecedented pace,” a source at the Electricity Ministry said. Before the end of the year, the Sisi administration will announce its choice of international partner for the project, the source added, noting that ‘political authorities’ (read: the presidency) is keeping a close eye on the project. A number of offers are currently being considered, with bids from Russia, China, and South Korea believed to be the only credible ones submitted so far. The source said the aim is to have the project begin by mid-2016 and completed in five years and added that the land plot in Daba’a could accommodate up to eight nuclear plants.

Auto assembly industry’s bid for new life gains momentum: The chairmen and CEOs of Egypt’s largest automotive assemblers and distributors are throwing their weight behind a single proposal from the Federation of Egyptian Industries to save the assembly industry from extinction. The proposal, due to be presented yesterday to Trade and Industry Minister Mounir Abdelnour, seeks customs and sales tax breaks for domestic assemblers who go further down the value chain into manufacturing, raising the local component quota to 54% over 15 years from 45% today. The assemblers are also proposing to replicate the successful national-level “white taxi” replacement program, rolling it out to consumers owning vehicles beyond a certain age. Among those backing the proposal are the chiefs of GB Auto (Hyundai, Geely, Mazda), Bavarian Auto Group (BMW), GM, and Egyptian German Automotive (Mercedes). (Read)

Our personal definition of hell, just in time for Eid: EgyptAir is rolling out WiFi on Airbus A330-300, according to this Tweet. The last safe place is no more.

MCDR still collecting capital gains tax: Misr for Central Clearing, Depository and Registry (MCDR) is still collecting capital gains tax from the investors in the Egyptian Stock Exchange, a source at the Finance Ministry told Al Shorouk. The collected taxes are not being transferred to the Tax Authority as MCDR awaits an official delaying decree to delay the implementation of the tax. The government had backtracked on plans to impose the tax and said it would withhold its collection for two years.

The Hussein Sabbour Consulting Bureau (HSCB) is believed to be the leading contender to replace Mohamed Alabbar’s Capital City Partners in executing the Capital Cairo Project, according to a government source. The government has already begun engaging in talks with HSCB amongst other Egyptian consultancies with a source telling Al Shorouk that President Abdel Fattah El Sisi is personally “very frustrated” with the situation with Alabbar and is keen on having the project completed. Ittihadiya would like to announce that the project is moving on before 6 August, the new Suez Canal’s inauguration date.

Telecom Egypt has contacted ISPs to inform them about its new pricing proposal for its network infrastructure and is currently awaiting their reply, TE Chairman Mohamed Salem said. The new pricing proposal follows Pharos Holdings’ assessment of the possibility of repricing. Salem expects negotiations to be completed before July’s end and believes commercial agreements will be signed with at least 1-2 companies.

Quick hits on a slow news day:

Are we voting in October? That’s the claim by Turkey’s Anadolu news agency, which claims we’ll be heading to the polls in early October. A second round of voting would take place in mid-November, with the House of Representatives convening by early December. May God have mercy on us all.
France’s Proparco is providing CIB’s leasing subsidiary Corplease with a USD 15 mn line of credit. See the announcement from the French embassy (in French) or coverage in Arabic and in English.
The CBE is debating requiring that ATMs be equipped with technology allowing them to detect anti-counterfeiting features of new EGP 100 and 200 notes; four new features will be introduced in the new notes.
A long recap of a speech by Investment Minister Ashraf Salman on why he’s bullish on the economy
The new Egyptian Accounting Standards that Salman handed down yesterday will go into effect on 1 January 2016, says Egyptian Financial Supervisory Authority chief Sherif Sami.
If you’re riding the rails, you’ll have WiFi in first-class cars when new carriages enter service some time last month, according to Egyptian National Railways.
The Mahlab government is not backing down on it’s ban on cotton imports despite mounting opposition from industry.
The stabilization manager’s efforts are paying off: Emaar Misr closed up for the second day in a row yesterday, ending the session at EGP 3.45, a rise of 2.68%.

Giza prosecutors referred on Monday the editor-in-chief of pro-Ikhwan website Misr Al’an to criminal trial on charges of “disseminating false news” and “instigating against the government,” according to AMAY as reported by Egypt Independent. Misr Al’an’s satellite television channel broadcasts from Turkey.

2 bombs defused outside hotel in Giza: Bomb squads defused two IEDs outside a hotel in Haram, Giza on Tuesday, according to Ahram and as reported by DNE. Police responded to a call about a suspicious package outside the hotel, cordoning off the area before defusing the bombs.

SPOTLIGHT ON: P5+1 NUCLEAR AGREEMENT WITH IRAN

After nearly two years of talks, the P5+1 (the UNSC plus Germany) and Iran reached a final agreement on Tuesday in Vienna that will see the end of the Iran sanctions regime in exchange for the country slightly scaling back its nuclear program. The so-called Joint Comprehensive Plan of Action (JPCOA) is a bid to rehabilitate Iran and reintegrate it into the international community — and for US President Obama to help secure his legacy. The agreement is being perceived, especially by Sunni Arab states and Israel, as the United States ceding the region to Iran. Critics say what they see as an “extremist state” will use the windfall from sanctions relief to further its openly stated goal of exporting its revolution by deepening its involvement in the region’s multiple proxy wars. The full text of the 159-page JPCOA may be found here via zerohedge.

What does the agreement allow? The agreement still permits limited enrichment and R&D for centrifuge research, which could drastically reduce break-out time. No facilities will be dismantled, but rather the Arak and Fordow sites are to be converted with an aim of preventing the facilities from being able to produce nuclear weapons. As for inspections, the agreement remarkably sees Iran agreeing to abide by the NPT’s Additional Protocol, which Iran once observed but then backed out of in response to the imposition of the UN sanctions regime. The Additional Protocol is supposed to empower the IAEA to request inspections, however the agreement does not allow for snap inspections from the IAEA, meaning if Iran objects to a request for inspection, an arbitration panel will make a decision on whether or not to approve the inspection within 24 days, which is enough time for infractions to be covered up and or moved to a different location.

What happens next? The agreement will now be reviewed by the US Congress over the next two months, and afterwards will be put up for a symbolic, non-binding vote, with Obama already promising to use his executive veto against any dissenting resolution. According to the New York Times: “Congress needs a two-thirds majority in each house to override the veto … Obama only needs one-third of one of the houses to stand with him.”

Reactions: The UAE was the first country in the region to comment on the agreement, sending a brief note of congratulations to the Iranian president. On the UAE’s official news agency, however, reads the following statement from an unnamed UAE official:

UAE: “Iran could play a (significant) role in the region if it revises its policy and stops interfering in the internal affairs of countries like Iraq, Syria, Lebanon and Yemen … The new direction we hope to see … would be for Iran to demonstrate a genuine desire to help extinguish fires devouring the region.” (WAM Emirates News Agency)

Egypt: “The foreign ministry spokesman expressed hope that …[the JPCOA] is complete and prevents an arms race in the Middle East as well as ensuring the region is … [devoid] of all weapons of mass destruction, including nuclear weapons.” (MFA statement via Reuters)
Saudi Arabia: “Iran has to use its resources in serving its internal development and improving the conditions of the Iranian people, rather than using these resources in destabilizing the region which is an act that will be strictly faced by the region’s countries, the source added.” (Saudi Press Agency)
Israel: “Iran will get hundreds of bns of USD with which it will be able to fuel its terror machine.” (Israeli PM Benjamin Netanyahu, AFP)

Business opportunities in Iran: Aside from Iran, its proxies, and US President Obama’s legacy, those who most stand to benefit to the expected lifting of the sanctions regime are investors, as noted by Najmeh Bozorgmehr and Monavar Khalaj reporting from Tehran for FT in ‘Businesses eye huge opportunities in Iran,’ (FT, paywall). Hot sectors: Oil and gas, aviation and the region’s largest automotive market.

***
A MESSAGE FROM PHAROS HOLDING

Buy or at least Accumulate GEMMA — the recent softening in the real estate market doesn’t necessarily bode poorly for a company with earnings visibility through 2017

In 2014, Pharos Research had upgraded its fair value estimate for GEMMA (ECAP.CA) to EGP 13.6 / share on the back of the ceramic manufacturer’s increased brand equity and product diversification. During the year, the stock reached EGP 10.6 / share, its highest levels since 2008, and closed the year with a 119% gain. This upward trend, however, has recently reversed with GEMMA losing 46.9% of its value in 2015 to date, leaving its market capitalization at EGP 226.1 mn.

Pharos Research believes that this new market cap level is below the fair value of the stock especially if the company maintains its 1Q15 sales momentum throughout 2015 and without suffering any one-off expenses. The investment bank will revise its FV estimate once the company releases its second quarter earnings but in the meantime recommends buying or at least accumulating. Click here to read more — and to learn why we don’t think the recently-observed softening in the property market necessarily holds downside for GEMMA, where there’s earnings visibility through 2017.
***

EGYPT IN THE NEWS

Al Jazeera has footage of what it says is from inside a detention cell in Ain Shams police station where a man named Adel Abdel Rahman died on Sunday. The detainee allegedly died of asphyxiation after officers allegedly denied a request made by his lawyers to transfer him to a medical facility due to his asthma. “Officers at the Ain Shams police station refused. They told the lawyers they wanted to ‘let him die here.’” (Watch in English, running time: 1:42)

Guardian open letter attacks UK silence towards Egypt’s media ‘crackdown’: Toby Cadman, a lawyer with ties to the Muslim Brotherhood, briefly critiques the recent imprisonment of a further four journalists as well the proposed anti-terror bill, which threatens significant fines (and, possibly, jail time) for journalists who deviate from officially sanctioned facts. Not mentioned: Morsi’s stellar record on press freedom and Cadman’s support of the former president.

NPR’s Leila Fadel hits the nail on the head with her piece “Seeking Control Over Narrative, Egypt Puts Growing Pressure On Journalists” for Weekend Edition (audio and print).

DIPLOMACY

Yasir Al Rumayyan, former CEO of Saudi Fransi Capital and current advisor to the Saudi Royal Court, arrived in Cairo yesterday to meet with a number of Egyptian government members. According to Amwal Al Ghad, Al Rumayyan was greeted at the airport by Investment Minister Ashraf Salman. The visit comes amid denials by the Egyptian Foreign Affairs Ministry of any rift between Cairo and Riyadh, particularly following the appointment of Majed Al Hogail as Saudi Arabia’s Housing Minister. Al Hogail had tweeted in July 2013 that what happened in Egypt was “a coup” and “proof that Arab countries do not deserve democracy.” (View tweet)

** Further reading in Diplomacy: Turkish academic and author Mümtaz’er Türköne argues in Zaman that Turkey should act on former Turkish President Abdullah Gül’s suggestion that Turkey should rehabilitate ties with Egypt. Gül made his remarks last weekend in the presence of Erdoğan. Türköne goes on to say that this can only be done with Erdoğan out of the picture, as he has invested too much of his own political capital in Egypt’s Ikhwan, with Türköne asserting that the Ikhwan’s uncompromising stances during their time in politics were the result of direct influence from Erdoğan. (Read Re-establishing ties with Egypt)

ENERGY

Oil Ministry to sign two E&P agreements for natural gas and oil
Amwal Al Ghad | 14 July 2015
The oil ministry will sign two new E&P agreements, petroleum minister Sherif Ismail said. The agreements will be signed with regard to oil and natural gas operations in the Western Desert and the Gulf of Suez. The areas involved are expected to be in Halif in the Western Desert and North East Ramadan in the Gulf of Suez, but the terms of the projects are now being presented to the cabinet before presenting them to investors. (Read in Arabic)

INFRASTRUCTURE

Trial run for Tenth of Ramadan water plant to begin in weeks, Madbouli says
Amwal Al Ghad | 14 July 2015
Trial runs for the Tenth of Ramadan water treatment plant are set to begin in weeks, Housing Minister Moustafa Madbouli said. The water treatment plant’s operations were resumed following having stalled for five years and costing around EGP 2 bn to complete, the Minister added. The plant will serve the whole Tenth of Ramadan area as well as El Shorouk, Badr, Madinaty, and the new administrative capital with a daily capacity of 1.2 mn cubic metres. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Ration cards will soon work in all governorates.
Al Mal | 14 July 2015
Welfare beneficiaries may be able to use their ration cards outside their home governorates before the end of the summer, the supply ministry announced yesterday. Beneficiaries — some 70 mn citizens in total, including 10 mn enlisted in the subsidized bread program — are presently limited to acquiring their rations in governorate in which they’re registered. The system is presently under study and could be live as early as August, according to Mamdouh Abdel Fattah, deputy head of General Authority for Supply Commodities. (Read in Arabic)

HEALTH & EDUCATION

EGP 2.5 bn size of counterfeit pharmaceuticals market, says FEDCOC
Amwal Al Ghad | 13 July 2015
The total volume of the counterfeit pharmaceuticals market within the local market has reached around EGP 2.5 bn, 20% of the total pharmaceuticals market, said head of the pharmaceuticals division at the Federation of Egyptian Chambers of Commerce (FEDCOC) Ali Auf. The spread of counterfeit pharmaceuticals on the local market has caused Egyptian pharmaceuticals to lose their reputation on the market, he added. (Read in Arabic)

National Cardiology Centre re-opens next week after first phase renovations
Daily News Egypt | 14 July 2015
The National Cardiology Centre, located in Imbaba, is set to open next week according to Health Ministry spokesperson Hossam Abdel-Ghaffar speaking to Daily News Egypt. The facility has recently undergone renovations to its physical structure, databases and its budget has reportedly been increased. A second round of renovations are planned. During a visit to the ministry, Prime Minister Ibrahim Mahlab was quoted as saying, “There are still lots of efforts that need to be exerted from health officials across different provinces, and the cardiology centre is a success model that should be replicated in all Egypt.” (Read)

REAL ESTATE & HOUSING

MCR begins construction in Le Park
Al Mal | 14 July 2015
The Modern Company for Construction and Real Estate announced it began working on the Le Park compound in Shorouk, with investments of over EGP 500 mn. The deadline for turnkey of all 170 units is March 2018, according to chairman Mohamed Abdel Mohsen. The 170 units are broken down into 130-210 metre apartments, and 304 metre villas with prices ranging EGP 7,500-8,500 per metre. (Read in Arabic)

Cairo Governorate to put 17 investment projects to tender this fiscal year
Al Borsa | 14 July 2015
The Cairo governorate has prepared 17 new investment projects in sectors including housing, tourism and industry, and will offer them to investors during this fiscal year. The governorate is also studying 70 housing and industrial projects in Kattameya and Helwan, of which 40 are non-performing industrial projects over 66 acres, and 30 housing projects spanning 163 acres spread between East and South Cairo. (Read in Arabic)

ERA Egypt has brought to market 40 projects worth EGP 800 mn for third-party developers
Al Borsa | 14 July 2015
Real estate marketing firm ERA Egypt signed contracts to market 40 real estate projects for others since January of this year, a portfolio with an investment cost of EGP 800 mn. The projects are divided into 30 housing developments, and 10 commercial / administrative projects, said managing director Karim Fahim. The most noteworthy clients are Maxim, Palm Hills, Hyde Park, and Sodic. (Read in Arabic)

E-Homes projects EGP 100 mn sales in 2015
Al Borsa | 14 July 2015
E-Homes for real estate investments and marketing projects EGP 100 mn sales for others by the end of 2015, after signing multiple marketing contracts with tourism projects. E-Homes has signed to promote 12 franchised projects with Sawa Real Estate, said Chairman Ihab Galal. The projects are scattered between the North Coast, Ain Sokhna, Ras Sidr and Sharm El Sheikh, he added. (Read in Arabic)

TOURISM

Dubai-based Entourage says it’s short-listed to manage ETA’s promotional campaign
Al Bawaba | 14 July 2015
Marketing and events firm Entourage said it is the only Dubai-based firm to be short-listed to manage the three-year global promotional campaign for the Egypt Tourism Authority (ETA). The ETA had handed the mandate for its Misr Orayba campaign to Entourage earlier this year. “We have delivered success over the last year for ETA and based on this success we are confident of doing well in 2015 … We are focused on building on this tremendous upward movement for tourism interest in Egypt,” Mohammed Tayem, the firm’s head, said. (Read)

Red Sea occupancy rate between 90 and 100% during Eid holiday
Egypt Independent | 14 July 2015
Occupancy rates in hotels and resorts in Hurghada, Gouna and Sahl Hasheesh have surged to 90-100% as Egyptian expatriates return to Egypt for the post-Ramadan holiday season. Hotel owners are now turning away new bookings until after the Eid al-Fitr holiday. (Read)

** Video: Alex Chacon recently went on a 3,000 km journey through Egypt on a 150cc scooter, accompanied by a team of people from 11 different countries. The trip appears to be at least sponsored by the Egypt Tourism Authority (ETA) as the motorcyclists scooters and helmets bear its logo. One of the purposes of the filmed expedition is to help the outside world better understand that Egypt is a safe destination to visit. The team starts their journey from Alexandria, then to Ain Sokhna, Gouna, and finally ending at the Pyramids of Giza. To be frank, the video is not that entertaining to watch, but the concept itself is a good idea and a step in the right direction from the ETA. (Watch Motorcycle Adventure Rally Across Egypt in 3000 KM and 9 Days, running time: 3:57)

TELECOMS & ICT

Telecom Egypt to allocate 3% of annual profits for R&D
Al Shorouk | 14 July 2015
Telecom Egypt (TE) will be allocating 3% of its yearly consolidated profits for research and development, Chairman Mohamed Salem told Al Shorouk. The proceeds will be used to create an R&D unit, which TE aims to develop into a world-class research centre. Salem said it is inexcusable for a company of his’ size to not have an in-house research facility. Salem said the upcoming few days will see a number of changes to the boards of Xceed and TE Data and a number of TE’s executive board members will see their salaries reduced “following their own request.” (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Authorities announce restrictions on tuk-tuks
Al Shorouk, Egypt Independent | 14 July 2015
The use of the tuk-tuks is expected to be met with a new set of restrictions believed to be the beginning of the process of banning the three-wheeler, the newspaper speculates. Governor Galal Saeed announced in a statement that a fine of EGP 1,500 is to be implemented immediately after Eid al-Fitr for tuk-tuks driven in unauthorized places. However, the Cairo Traffic Department still awaits an official decision. (Read and in Arabic)

ERJET to solicit proposals for 15 advertising concessions
Al Mal | 14 July 2015
The Egyptian Railway Projects and Transport Co (ERJET), a subsidiary of the Egyptian National Railways (ENR), will issue a tender 15 advertising concessions with the intention of achieving EGP 15 mn annually in revenues. ERJET will handle administration. Meanwhile, ERJET has completed surveying 52 pieces of unused land owned by the company revealing an area of 480,000 metres squared, said head of investments Ashraf Aziz. (Read in Arabic)

ENR begins first phase of fourth metro line in September
Amwal Al Ghad | 14 July 2015
Egyptian National Railways (ENR) plans on beginning the first phase of the fourth metro line in September using a USD 1.2 bn loan from the Japanese International Cooperation Agency (JICA). JICA is set to fund 50% of the first phase, while the government handles the other 50%, according the ENR head Ismail El Nagdi. (Read in Arabic)

ENR’s losses widen to EGP 4.41 bn
Ahram Gate | 14 July 2015
Egyptian National Railways’ (ENR) losses widened to EGP 4.41 bn in FY2015-16, EGP 2.2 bn more than the previous year’s losses, Al Ahram reported. The company managed to bring in EGP 4 bn in revenues, but its expenses reached EGP 8.46 bn having spent EGP 3.11 bn on salaries and wages alone. The government has allocated EGP 21.3 bn for ENR’s FY2015-16 budget, compared to EGP 17.3 bn in FY2014-15. (Read in Arabic)

BANKING & FINANCE

Beltone Financial receives regulatory approval for capital increase
Reuters | 14 July 2015
Beltone Financial received regulatory approval for an EGP 200 mn capital increase, Reuters reported. This will enable the firm to offer shares on the EGX in August. Osama Rashad, the firm’s head of investor relations, said Beltone is raising its capital from EGP 125.483 mn to EGP 325.483 mn. The new shares for the second part of a two-stage capital increase programme to fund growth and will be offered on the bourse from 2 August until 31 August. (Read)

OTHER BUSINESS NEWS OF NOTE

Oil and irrigation ministries begin cooperation in water well drilling
Al Masry Al Youm | 13 July 2015
The oil and irrigation Ministries have agreed to begin implementing their signed protocol to drill 500 irrigation wells in West Minya. The operations are part of the President’s plan to reclaim one mn feddans, the first phase of reclaiming four mn in total. The Irrigation Ministry is aiming to use the drilling expertise and the machinery available to the Oil Ministry. Irrigation Minister Hossam Moghazi said 90% of the water needs of the reclamation project will be sourced from groundwater, hence the need to drill a large number of wells. (Read in Arabic)

SFD extends EGP 670 mn in credit to microenterprises during 1H2015
Amwal Al Ghad | 14 July 2015
The Social Fund for Development extended credit of EGP 670 mn to micro-sized businesses in 1H15, according to head of microfinancing Niveen Badr El Din. The funding has gone towards 85,000 micro businesses created 100,000 job opportunities, she added, noting that the SFD plans on reaching a total funding of EGP 1.2 bn by the end of 2015. (Read in Arabic)

LEGISLATION & POLICY

New civil service law ensures salary increases, Dimian says
Amwal Al Ghad | 13 July 2015
The new civil service law ensures salary level increases for state employees, Finance Minister Hany Dimian said. The law ensures that the salary increases will be larger than the 10-15% annually under the previous law. The new law also breaks down to job grades from six to 16. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Sadat asks President El Sisi to wait for parliament before implementing decree on dismissing heads of independent regulators
Al Mal | 14 July 2015
The head of the Reform and Development Party Mohamed Anwar El Sadat asked President Abdel Fattah El Sisi to hold off on applying presidential decree 89 of year 2015, which allows the president to sack the heads of independent state bodies including the governor of the central bank and the head of anti-corruption watchdog the Central Auditing Organization. The constitution requires the opinions of independent regulatory bodies to be taken into account when a draft law concerning their work is issued, which was not the case. Similarly, the appointment of the heads of these agencies is done through the parliament, which again wasn’t the case, said Sadat. (Read in Arabic)

ON YOUR WAY OUT

95.79% of the dredging operations of the new Suez Canal are complete, the project’s executive manager told Al Shorouk. The new Suez Canal will be inaugurated on 6 August.

A military court in Cairo acquitted 23 Morsi supporters on charges of rioting and illegal protesting, according to Ahram Online.

Following the leak of the trailer of Suicide Squad from Comic Con, Warner Bros. has officially released the trailer, which as of Tuesday evening was the second-most shared YouTube video in Egypt. (Watch, running time: 3:06)

BY THE NUMBERS

USD CBE auction (Tuesday, 14 July): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Tuesday, 14 July): 7.86 (-0.01 from Sunday, 12 July)

EGX30 (Tuesday): 7,686.91 (+1.32%)
Turnover: EGP 386.4 mn (19% below the 90-day average)

WTI: USD 52.83 (+1.21%)
Brent: USD 58.36 (+0.88%)

TASI: 9,275.2 (+ 0.1%)
ADX: 4,776.9 (+0.4%)
DFM: 4,052.6 (flat)
KSE Weighted Index: 422.1 (+0.5%)
QE: 11,964.5 (+0.2%)
MSM: 6,534.6 (+0.9%)