Monday, 10 August 2015

CIB to participate in China-led funding program as Cairo-Beijing ties deepen

TL;DR

WHAT WE’RE TRACKING TODAY

We continue to wait for news of the fate of Croatian national Tomislav Salopek, a staffer at a French geoscience company abducted near Cairo by Daesh and threatened with execution if the terrorists’ demands are not met. A deadline for the state to release Muslim women from prison expired more than two days ago, with no news since. Salopek is believed to be the first foreigner abducted by militants in Egypt. A Twitter account believed to be associated with the group has polled its followers for suggested methods of murdering Salopek.

A ‘who’s who’ of both the energy sector and the wider business community will meet for two days in Cairo at the end of this month to shape the future of Egypt’s energy sector. Confirmed speakers for the high-profile event include Energy Minister Mohamed Shaker, Naguib Sawiris, Governor of Alex Hany El-Messiry, New and Renewable Energy Authority chief Mohamed Sobki, the IFC’s Nada Shousha and SODIC CEO Dasha Badrawi, among others. Participants — including international investors and multinational project developers — will discuss renewables, energy efficiency, conventional power, energy storage and policy, among other topics. Oh, and: “Important announcements will be made on the new Egyptian electricity law, the Feed In Tariff Program and other topics related to private investment in the Egyptian power sector.” If you’re an industry insider or have a passion for the topic, check out the gathering’s website and or drop the organizers a note (or give them a ring) to request an invite for the 31 August – 1 September invitation-only event.

WHAT WE’RE TRACKING THIS WEEK

As we noted yesterday, President Abdel Fattah El Sisi is expected to announce “within days” the details of a series of new national megaprojects, Al-Mal reports, most likely in a televised address to the nation.

We’re also waiting for the Higher Elections Committee to announce the nominations period (expected in September) for a two-stage October-November election for the House of Representatives. As we do, the HEC has formed a subcommittee to monitor media coverage of the elections. Members of the subcommittee will include media critics Magdy Abdel Aziz and Magda Morris. (Read in Arabic pdf)  

Oil could yet break its March low: Crude fell 1.8% yesterday after plunging 7.1% last week — great news for Egypt’s subsidy bill, not so wonderful for many of our friends in the GCC.

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LAST NIGHT’S TALK SHOWS

Magdy El Galad, Hona El Aasima: El Gallad was filling-in for Lamees El Hadidy on Sunday, kicking off the program with a short video on the acceptance of 12 of Egypt’s top high school graduates to the Zewail City of Science and Technology. Each of the students were awarded full scholarships. Speaking at an award ceremony held for the academically gifted students, Dr. Zewail referred to the acceptees as the future of Egypt.

Following the completion of the video, El Galad discussed the completion of recent renovations to Ain Shams University’s Specialized Hospital.

El Galad: “The renovations to the hospital are impressive. That said, most of the university hospitals in the country are in need of significant improvements. The death of the six children in El-Demirdash Hospital’s nursery clearly indicates that there still much that need to be done. The hospitals need a larger budget, and more government support.”

Over at Al Qahera Al Youm, Rania Badawi was again filling in for Amr Adeeb. Badawi opened with a discussion of the the U.S. Republican Party’s  growing admiration for President Abdel Fattah El Sisi. Badawi aired a clip from last week’s Republican primary debate, in which Republican Senator and presidential hopeful Ted Cruz described El Sisi as a strong, courageous leader, worthy of emulation.

Badawi: “The fact that our president is being discussed in a positive light is a great sign for Egypt. It suggests that our position vis-a-vis the United States is changing for the better. The American government is starting to realize that President El Sisi is a stabilizing force in the region, who is necessary to the fight against terrorism.”

Badawi then aired a short video highlighting milestones in the career of of Vice Admiral Mohab Mameesh, head of the Suez Canal Authority and the architect of the New Suez Canal. She closed-out the program with a discussion of the problem of child abduction in Egypt, citing no statistics to back her assertion that the phenomenon is a growing concern. Indeed, Badawi largely focused on what amounts to teenagers running away to marry the person of their choice after being refused parental permission to tie the knot.

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CIB signs MoU with Bank of China to participate in One Belt, One Road project: The Bank of China said it tapped the Commercial International Bank (CIB) to join the One Belt, One Road initiative as a result of CIB’s leadership in the African market, reported AMAY. The initiative, originally proposed in 2013, involves two projects, the Silk Road Economic Belt (SREB) and the Maritime Silk Road (MSR) connecting Europe, Africa and Asia, to solidify trade between 65 countries with an expected trade volume of USD 2.5 tn. The Egyptian Businessmen’s Association recently conducted a study highlighting the importance to One Belt, One Road of logistics and ship refueling services planned for the New Suez Canal, Al Watan reported. Egyptformally joined the Silk Road Economic Belt trade union in June, as we reported at the time. For more on the New Silk Road project, “The New Silk Road: China’s Marshall Plan?“ in The Diplomat (which we noted last fall) is a solid starting point. For background on Egypt’s rapprochement with China, check out Deborah Lehr’s solid “Sisi follows the New Silk Road to riches“ in the dreadful Huffington Post.

The news is just the latest sign of Egypt’s deepening ties with China since President Abdel Fattah El Sisi’s landmark visit to Beijing last December. In late June, Egypt became a founding member of the China-ledAsian Infrastructure Investment Bank. Also yesterday, Ittihadiya released a full readout of El Sisi’s meeting with Chinese Culture Minister and Presidential Envoy Luo Shugang. As we noted yesterday, Luo repeated President Xi Jinping’s request that El Sisi travel to Beijing for China’s Victory Day parade (which we believe is scheduled for 3 September). Al Ahram reports that Luo and El Sisi discussed possible Chinese participation in the logistics and manufacturing hub on the Canal Development Axis and the one mn feddan reclamation project. New to us is that Chinese President Xi is apparently coming to Cairo— presenting an opportunity to lure Chinese investment in the Suez Canal Economic Zone. Per the readout: “The Chinese envoy expressed his eagerness to prepare for the Chinese President’s visit to Cairo.  … President El Sisi expressed that he looks forward to the Chinese President’s visit to Egypt … President El Sisi added that the New Suez Canal will contribute to the Chinese President’s initiative to revive the ‘Silk Road’ Project. In addition, a number of Red Sea ports can be developed and integrated within the project to contribute to realizing its desired goals.” The readout carries no mention of when the visit may take place.

Egypt rejected as “totally unacceptable” a proposal by the Qatari Foreign Minister to mediate between the state and the Ikhwan, BBC Arabic reports. “Egypt rejects all forms of interference in its internal affairs,” said Foreign Ministry spokesman Ahmed Abu Zaid, saying there is no room for negotiationwith a group the Egyptian people have designated a terrorist organization.

Shoeib, Dahi, Sousa in running to become Oil Minister: Unnamed sources at the Ministry of Petroleum are tipping three well-known industry veterans as being in the running to replace ailing Petroleum Minister Sherif Ismail, according to a local press report. The three are: Mohamed Shoeib, managing director of Qalaa Holdings’ energy division; Sherif Soussa, current first undersecretary for gas affairs at the Petroleum Ministry (formerly head of EGAS); and Transport Minister Hany Dahi, who has previously led EGPC, ENPPI and Petrojet. Prime Minister Ibrahim Mahlab named Dahi as acting Oil Minister in June when Ismail was sent abroad for medical treatment. (Read in Arabic)

Jordan could “soon” sign an agreement to export gas to Egypt, according to the General Manager of Jordan’s National Electric Power Company (NEPCO), Abdel Fattah Al Daradakeh. The agreement is expected to be signed within the next two days, with price and quantity details still unknown. Al Daradakeh said that Jordan will only export surplus gas to Egypt after meeting domestic demand. Jordan had commissioned a new FSRU officially in July and is set to receive 1.66 bcm in LNG cargoes over the next four years. It is importing Qatari gas as well as shipments from Shell and Vitol. Jordan had signed an agreement to import natural gas from Israel’s Tamar field and an MoU with the Palestinian Authority to import gas from the BG-controlled Gaza Marine Concession. Still, it is unclear from how Jordan will supply excess gas to Egypt as its largest natural gas prospect at Risha was abandoned by BP after spending USD 240 mn and drilling two exploratory wells in an attempt to develop the field. On the other hand, the agreement to supply Amman with Egyptian gas still stands.

Saudi Arabia agreed to supply Egypt with USD 1.4 bn worth of oil products over three months, sources told Al Mal. The agreement entails Egypt receiving oil product shipments in September, October, and November. Al Mal’s report is unclear on the key issue of whether the shipments will in the form of grants to Egypt or if they will be paid for on relaxed terms.

It’s in that light that we’re reading the following news: Egyptian General Petroleum Corporation (EGPC) has reportedly reached a preliminary agreement to finance petroleum product imports, calling on USD 3 bn in credit facilities from the UAE’s ADNOC and the Saudi Development Fund,Al Borsa reports. Sources at EGPC tell the daily that negotiations now center on interest rates and payment schedules. The same sources denied that Egypt had requested grants to import petroleum products from the Gulf, saying EGPC was shooting for commercial agreements.

Russia’s Rosneft has begin deliveries to Egypt, Oil Minister Sherif Ismail said, according to Al Shorouk. The agreement signed between the company and EGPC / EGAS last month entails the supply of diesel, gasoline, butane gas, and bitumen. Rosneft has also contracted to supply Egypt with 24 LNG shipments.

The recent release of redesigned EGP 100 and EGP 200 bill does not amount to a new banknote issuance, a source at the CBE told Al Masry Al Youm. The redesigned bills are meant to make life more difficult for forgers through the addition of new security markers. The CBE is also hoping that the new notes, which are printed with tactile features, will be more user-friendly for the visually impaired — a move welcomed by members of the National Council for Disability Affairs. In case you haven’t come across the redesigned banknotes yet, here are the new EGP 100 and EGP 200 banknotes.

The National Bank of Egypt is looking to clear EGP 1.3 bn in bad debts from its books during the current fiscal year, reports Al Mal. According to the head of the bank’s Risk Division, NBE’s portfolio of bad debts now tops EGP 6.3 bn. An NBE board member said the state-owned institution plans to reduce that number through negotiations with debtors.

The EGX issued new delisting regulations yesterday, permitting companies to delist their shares if the decision receives 75% approval at an OGM and provided no shareholders raise objections within a month of the OGM resolution passing. According to Al Borsa, if a shareholder does object to the decision within the one month timeframe, the company must buy them out at the highest traded price during the one month grace period after the delisting decision. The EGX is positioning the measure as protecting shareholder rights.

xx The U.S. Embassy is showing Egypt some love in the wake of Secretary of State John Kerry’s visit for a “strategic dialogue” last week, tweeting a pic of Amb. Stephen Beecroft with Congressman Darrell Issa at the opening of the Suez Canal, linking to a CNN gallery of images documenting the Canal “then and now,” highlighting a gallery of images from the dialogue, and tweeting about the arrival of the M1A1 Abrams tank turrets we noted last week.

Former Italian prime minister Silvio Berlusconi praised El-Sisi’s leadership in fighting terrorism both militarily and (more importantly) ideologically in an interview with Al Ahram, citing the President’s speech to Al Azhar as a milestone in weeding out the root ideology of extremism. He also commended the president’s stewardship of Egypt’s political transition. He was highly critical of the West’s regional strategies, stating that Europe and the US had bargained with regional security with its intervention in Libya, adding that an Islamist takeover in Libya would be a ‘catastrophe’.

Tax Authority employees protesting the Civil Service Law will hold a press conference in front of the Press Syndicate’s offices on Monday after the State Security apparatus cancelled their planned protest in front of the Cabinet’s offices. The conference will include legal experts and academics and will take place at 1 pm CLT, Al Borsa reports. In other Tax Authority news, TA chief Abdel Moniem Mattar said he’s not about to extend a tax amnesty to state-owned newspapers that together owe the authority billions in unremitted taxes, Al-Masry Al-Youm reports. Former Finance Minister Momtaz El Said estimates that newspapers owe c. EGP 10 bn in unpaid taxes.

Thank you, Daily Mirror, for accuracy in your reporting on Egypt: As long-time readers know, we have a particular fondness for stories of hapless British tourists whose holidays in the sun are blighted by the savagery of the local populace. Egypt, naturally enough, makes an appearance in these stories, with the latest being a gem from the Daily Mirror that notes: “other troublesome countries that are popular tourist destinations include Egypt, apparently known for the world’s ‘filthiest money’ thanks to the habit of storing it in shoes. … Hot air balloons and camels feature high up in Egypt’s top warnings.” Read more in “Most dangerous holiday destinations for Brits revealed — and they might surprise you.”

You probably don’t want to buy an iPhone. Not right now, at least: Word on the street is that Apple will be unveiling its iPhone 6s and a new Apple TV box during the week of 6 September, with the most likely date being the 9th. Buzzfeed broke the news that the rest of the tech world is now picking up. Can’t wait a bit under a month to see what Apple’s latest gadget has in store for us? MacRumors and CNET have the lowdown on the hive-mind’s current bets, including the possible appearance of ForceTouch (can we have haptic keyboard feedback, too, please? If so, I hereby promise never to look at a Nexus device again…) and another leap in camera performance in a package that could will be just about identical to the current iPhone 6, if possibly a bit thicker.

The Economist is about to be sold for c. GBP 400 mn as Pearson divests its last remaining global media property just weeks after selling the Financial Times to the Nikkei. Fittingly, it’s the FT that has broken the news. The sale will require the approval of the Economist’s trustees, who exist to ensure that the ‘newspaper’ (as it insists on calling itself) remains editorially independent. Pearson netted c. GBP 833 mn from its sale of the FT and is divesting to focus on its core education businesses. Should it sell the Economist, its last remaining media property will be publisher Penguin Random House.

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A MESSAGE FROM PHAROS HOLDING

Emaar Misr’s fair value hinges on its ability to sustain sales through year’s end

Newly listed Emaar Holding reported a net income of EGP 522 mn in the first half of this year, up 284% over the EGP 136 mn posted in the same period last year. The surge in the company’s bottom line comes on the back of increased high end unit deliveries in 2Q15, leading to an 18.7 percentage point jump in the company’s gross profit margin to 48.7%.

Pharos Research notes that the bulk of units delivered during the quarter were resultant from sales booked in 2012. The total built-up area sold in 2012 amounted to 0.3 million sum the majority of which were villas given their typically larger size. We believes that Emaar’s ability to sustain its sales momentum in 2015 will be the key factor in the developer’s fair value calculation going forward. Click here to find out more.
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EGYPT IN THE NEWS

Coverage of Egypt in the international press overnight Sunday and into Monday was squarely dominated by coverage of the opening of the Suez Canal. Most outlets picked up wire reports, with perhaps the most interesting take belonging to Israel’s Haaretz, which ran an interesting op-ed asking “What can Israel learn from Egypt’s New Suez Canal?

Other stories making headlines include the fate of Tomislav Salopek and Egypt’s rejection of a Qatari offer to mediate with the Ikhwan, both of which are covered above in today’s issue.

Otherwise: Egypt is getting plenty of attention from the Economist. “As a feat of brawn it is impressive… As a political stunt it is big, too… In economic terms, however, the expansion of the Suez Canal is a questionable endeavour,” the newspaper / magazine writes, following in the footsteps of the international media to comment on the inauguration of the New Suez Canal. “One clear plus … is that the project is domestically financed… The downside for punters is that they are in local currency, in a country where inflation is currently running at over 10%.”

Nefertiti’s tomb possibly found?: The Economist writes on a newly published paper on the burial of the Pharaonic queen Nefertiti, which is apparently taking the Egyptology world by storm. British Egyptologist Nicholas Reeves is adamant that ultra-high-resolution images of the walls of Tutankhamen’s tomb prove the existence of two passages that may lead to the burial chamber of a queen. “Each piece of evidence on its own is not conclusive, but put it all together and it’s hard to avoid my conclusion,” Mr. Reeves said. “If I’m wrong I’m wrong, but if I’m right this is potentially the biggest archaeological discovery ever made.” (Read:What lies beneath? A tantalizing clue to the location of a long-sought Pharaonic tomb)

‘Do-it-yourself: The region’s people are turning to the private sector for the bare necessities’:An article by the Economist sheds light on how people in the Middle East are finding ways to produce services that are either not competently provided by governments or not provided at all. Egypt’s health and education sectors make an appearance, with the story highlighting the fact that the World Economic Forum ranksEgypt’s primary schools as the third-worst in the world, leading people to turn to private education, tutoring and  even home-schooling. As for the health sector, it points out the how Egyptian doctors turned to Facebookto post evidence of public hospital’s abysmal state, as we recently noted. (Read)

WORTH READING

Wait, does AOL know? If you’ve read Enterprise for more than a few weeks, you’re likely aware we’re not big fans of Huffington Post and the brand of ‘journalism’ for which it stands. Even less attractive in our view is the direction its new Arabic site appears to be heading. HuffPost Arabi is edited by none other than Wadah Khanfar and Egypt’s Anas Fouda, who together helped turn Al Jazeera’s Arabic service from an upstart that was home to secularists, Christians, Arab nationalists and Islamists alike into a mouthpiece for the Ikhwan. Lebanon’s NOW has the back story on “HuffPost Arabic’s Muslim Brotherhood connections.”

DIPLOMACY

Russian-Egyptian Business Council prepares for El Sisi’s trip to Moscow: The Russian-Egyptian Business Council is meeting today with Egypt’s Ambassador to Russia to begin planning for President El Sisi’s planned trip to Moscow. The Russian visit, which will be El Sisi’s third since he took office, is expected to result in the signing of an agreement for a Russian industrial zone in Egypt. An official date for the visit has not yet been marked by Ittihadiya, although the visit has been confirmed by state media in both Russia andEgypt. (Read in Arabic)

ENERGY

10 international institutions reviewing final draft of feed-in-tariff
Al Borsa | 08 August 2015
Ten international institutions are finalizing their review of the feed-in-tariff draft, Al Borsa reported. The institutions include the EBRD, IMF, AfDB, as well as Germany’s GIZ. Consulting house Fitchner sent the final draft for the institutions for their review prior to having it reviewed by the Electricity Ministry. This is despite having the agreement stipulating that it should have been done the other way round. A source noted that this could be to ensure that the agreements would abide the financiers’ policies in order to facilitate project funding. (Read in Arabic)

Cairo court dismisses ExxonMobil’s claim of trademark infringement
Ahram Gate | 09 Aug 2015
The Cairo Economic Court dismissed a claim by ExxonMobil Egypt that its trademark is being infringed by New Atlas, a domestic oils and lubricants producer. The court said both companies’ trademarks are markedly different from one another as ExxonMobil’s products are labeled with a winged-horse whereas New Atlas’ have a winged-bull on them. The court also added that ExxonMobil’s trademark, which has been registered since 1959, is already imprinted in the consumers’ minds making it unlikely to be confused with New Atlas’ brand. (Read in Arabic)

Indonesia offers to build coal-fired power station in Suez, sees opportunity in Suez Canal expansion
Al Mal | 09 Aug 2015
Indonesia’s special envoy for Middle East affairs presented an offer to Electricity Minister Mohamed Shaker to build a coal-fired power station in Suez. The proposition came during a meeting with Shaker that also included Indonesia’s ambassador to Cairo. Indonesian investments in Egypt are set to increase from about USD 500 mn to USD 850 mn as companies increase their presence. The envoy also added that Indonesian trade through the Suez Canal following its expansion is set to increase by 50%. (Read in Arabic)

MIDOR to borrow USD 1.1 bn from a six-bank consortium
Al Mal | 09 Aug 2015
MIDOR has agreed to borrow USD 1.1 bn to finance capacity increases at its refinery near Alexandria. The funding will come from six foreign banks and MIDOR is meeting with bank representatives as well as Italy’s SACE (which had signed a joint agreement with MIDOR to modernize and expand the refinery) to unify the agreements on interest rate payment. The funds will be sourced from foreign banks in an effort to bring in fresh foreign capital to Egypt rather than relying on domestic banks. MIDOR also reported that NBE and NBAD were awarded the financial advisory contract for the refinery expansion project. (Read in Arabic)

INFRASTRUCTURE

Nasr General Contracting offers to build Capital Cairo’s infrastructure works
Amwal Al Ghad | 08 Aug 2015
The Nasr General Contracting Company (Hassan Allam) has offered to undertake infrastructure work for the Capital Cairo. The company has the capacity build the new administrative capital’s roads, bridges, and infrastructure, Chairman Abdallah Khairy said. Khairy added that NGCC is will to undertake the project once it secures funding. In other news, the company has reportedly completed construction of the Red Sea-Upper Egypt road in partnership with three contracting companies, to coincide with delivering the first phase of the National Roads Project this August.

Giza’s water resources fall short of population’s needs
Al Shorouk | 09 Aug 2015
Giza governorate’s water reserves are insufficient to cover the needs of its growing population, says Holding Company for Water spokesperson Mohey El Serfy. The problem is caused by horizontal and vertical expansion in the Giza governorate, as well as illegal buildings, added El Serfy. The repeated water cut situation in the Haram Plateau has been addressed, while a new line is being extended from 6th of October, to be completed by September, will solve water issues in Faisal, he added. (Read in Arabic)

President El-Sisi follows up on status of national highways construction
Al Mal | 09 August 2015
President El-Sisi held a meeting on Sunday with Deputy Defense Minister responsible for national projects and the head of the Engineering Authority of the Armed Forces to discuss crucial national infrastructure projects the military is developing. Key among these was national highways construction. El Sisi urged the armed forces to fast-track the completion of key arteries. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Mulmix offers to build silos and logistics centers in Egypt
Amwal Al Ghad | 09 Aug 2015
Mulmix has expressed interest in bidding to construct wheat and grain silos at locations across the country, including the logistical center for wheat and grains being built in Damietta, according to Minister of Supply Khaled Hanafy. (Read in Arabic)

Supplies Ministry to begin providing Sudanese beef in domestic outlets
Al Shorouk | 09 Aug 2015
The Supplies Ministry is finalizing import contracts to bring in Sudanese cattle to have slaughtered and sold in Egypt, minister Khaled Hanafy said. The meat will be sold at the Ministry’s outlets across the country with a particular focus on Upper Egypt. Hanafy also urged the acceleration and completion of the scheme to introduce smart ration cards instead of the paper card-based system. Both are evergreen stories for the ministry. (Read in Arabic)

HEALTH & EDUCATION

Pharmaceuticals Chamber demands MoH approval to raise prices as much as 50%
Al Mal | 09 Aug 2015
The Pharmaceuticals Chamber sent a letter for Minister of Health Adel Adawi formally asking him to approve price rises on multiple categories of drugs and urging the ministry to treat equally both domestic and multinational players in the sector. The industry continues to come under pressure from sustained losses on in-demand medications due to ministry price caps that have not changed significantly despite the devaluation of the EGP and rising raw material prices. (Read in Arabic)

16k completed Hepatitis-C treatment course, 32k receiving Sovaldi
Al Mal | 09 Aug 2015
32k patients are currently receiving the new Hepatitis-C medication Sovaldi, divided into a three-month course and six-month course, according to head of the General Authority for Health Insurance, Ali Hegazy. 16k patients have already completed the treatment course, he added. The new Hepatitis-C treatment course has cost the state EGP 420 mn so far, at an average rate of EGP 12k per patient. Hepatitis-C treatment is treated without cost as part of the National Health Insurance plan. (Read in Arabic)

REAL ESTATE & HOUSING

Housing Ministry nets EGP 3.7 bn in sale of 270 feddans in New Cairo
Al Borsa | 09 August 2015
NUCA has sold three plots of land totaling 270 feddan in size on auction in New Cairo to a number of developers for EGP 3.7 bn, Al Borsa reports. The buyers included Marina Way Lagoon for Real Estate and Tourism Investments which bought a 150 feddan plot for EGP 2.1 bn at EGP 3,290 per m2; Al Hayat Development and Project Management, which bought an 85 feddan plot for EGP 1.1 bn at EGP 3,191 per m2; and Masr El Mahrousa Real Estate Company, which bought 35 feddans at EGP 533 mn at EGP 3,625 per m2. (Read in Arabic)

Imbaba residents refuse to move into temporary housing in 6 October
Youm7 | 09 Aug 2015
Imbaba residents have refused the governorate’s entreaties to move into temporary housing at 6 October. The move plan was drawn up after the collapse of multiple buildings in the Imbaba area. Sameh Salah, founder of Imbaba Cultural Wheel, said that residents have rejected the option of moving to 6 October because it’s far-removed from their work lives; residents have also declined a proposal that they receive a monthly stipend from the governorate to rent flats on one-year leases. (Read in Arabic) (See interview with residents, running time 1:04)

Raya Holding completes Galleria 40 construction
Al Mal | 09 Aug 2015
Raya Holding completed construction of the EGP 500 mn Galleria 50, a mall including both commercial and office space in Sheikh Zayed, according to head of Investor Relations Mohamed Gomaa. The mall is now leasing out shops and office space. (Read in Arabic)

TOURISM

Misr Travel receives four offers to build hotel in Magawish
Amwal Al Ghad | 08 Aug 2015
Misr Travel, a subsidiary of EGOTH, announced it received four offers to build a touristic project in Magawish. The company owns a 850k sqm plot of land in Magawish it wants to utilize 400k sqm of for a touristic project. The land can absorb between EGP 3-5 bn, according to company chairman Rashad Refaei. (Read in Arabic)

EGP 8.4 bn targeted investments in tourism this year
Al Shorouk | 07 Aug 2015
The Mahlab government expects the tourism sector to land investment of c. EGP 8.4 bn this year, 95% of it from private-sector actors, according to an economic development plan release last week. The state-owned EGOTH will be the lead public-sector investor in the sector, earmarking EGP 385.5 mn in investments to upgrade and maintain hotels and resorts owned by its subsidiaries. (Read in Arabic)

TELECOMS & ICT

Noor ADSL in advanced merger talks, CEO says
Amwal Al Ghad | 08 Aug 2015
Noor ADSL is in advanced talks for a merger with a local ISP, CEO Fady El Guindy said refusing to name the potential partner. An agreement is expected to be reached by the start of September, El Guindy added. Noor had already began talks to cooperate with other ISPs to put pressure on TE Data that already dominates the market with a 63% market share. The company aims to receive NTRA approval on its talks to create an entity comprised of other ISP providers that could potentially result in a new alliance controlling about 30% of the market, according to El Guindy. The piece does not clarify whether the two streams of negotiation (the merger and the alliance) are going in parallel or not. (Read in Arabic)

TE begins addressing issues arising from introduction of fibre-optic cables
Amwal Al Ghad | 09 Aug 2015
Telecom Egypt (TE) will begin implementing technical solutions to the problems arising from the replacement of copper telephone wires with fibre-optics, according to CEO Ossama Yassin. A technical committee had been assessing problems and customer complaints following the beginning of the project that resulted in disruption of service to rival ISPs’ customers. The committee said that most problems were generated due to challenges in power generation and batteries’ replacement. (Read in Arabic)

EGP 50 administrative fees on 1 Mbps connections, other speeds exempted
Al Mal | 09 Aug 2015
Customers have to pay an additional EGP 50 administrative fee to switch to the 1 Mbps connection speed, according to sources from TE Data. 2, 4, and 8 Mbps connections are exempted from this rule. Turnout rates so far are only between 3-5%, the source added. The new TE Data packages involve cancelling the 256 and 512 kbps connections, and instead offering internet at EGP 50 monthly for 1 mbps capped at 10 GB or EGP 95 monthly for 1 mbps with 100 GB capacity. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Government allocates EGP 4 bn to developing Metro in current fiscal year
Amwal Al Ghad | 09 Aug 2015
The government has decided to allocate an addition EGP 4 bn investments into developing the Metro in FY 2015/16. The investment will be directed into operating the three lines at a capacity of 3 mn passengers daily, and complete importing the 20 air-conditioned trains. (Read in Arabic)

High fees and instability prompt SCCT to shift some traffic to Greece
Al Shorouk | 09 August 2015
The Suez Canal Container Terminal (SCCT) had moved some operations in Port Said to Piraeus port in Greece for a number of reasons including high fees to the government, according to managing director Klaus Laurson. He stated that fees in Egypt are up to 3-4% higher than in Greek ports, adding that the political instability post Jan-2011 and a lack in capacity, which would be resolved with the new canal. He also spoke extensively on the relationship between the government and Maersk, the majority shareholder of SCCT. He stated that its 49-year container terminal concession agreement was tipped in favor of the government hinting that Maersk may have overpaid for its license while providing jobs for the economy at large, Al Shorouk reports.

GB Auto delivers 16 buses to Alexandria Governorate, releases 2016 Hyundai Accent
Al Mal, Al Borsa| 09 Aug 2015
The Governorate of Alexandria announced the receiving of an initial shipment of 16 buses from GB Auto, Al Mal reported. The transaction involves supplying 150 buses to be added to the city’s public transportation network. 30 more buses will be delivered within days, the head of Alexandria’s National Transport Authority said. In other company news, Al-Borsa reports that GB Auto has rolled out the 2016 model year Hyundai Accent, retailing for EGP 128,000 to EGP 144,500.

BANKING & FINANCE

National Bank of Egypt studies 114 new loans at a total value of EGP 1.724 bn
Al Mal | 09 Aug 2015
The National Bank of Egypt (NBE) is currently studying 114 new loans at a total value of EGP 1.724 bn, in addition to preparing 15 final contracts for credit facilities worth EGP 452 mn, according to Sherif Riyad, head of Medium Sized Company Loans Division at NBE. Riyad’s Division offers direct and indirect credit facilities to companies with sales ranging between EGP 100 mn to EGP 500 mn. (Read in Arabic)

LAW

King & Spalding advised BW Gas on successful Egyptian FSRU bid
Company Statement | 07 Aug 2015
The law firm of King & Spalding advised BW Gas in connection with its successful bid to provide EGAS with its second FSRU. The second FSRU, which will be docked in Ain Sokhna, is named the BW Singapore and was built at Samsung Heavy Industries in Korea. “We are delighted to have been given the opportunity to advise BW Gas on this landmark project,” King & Spalding’s head of Global Transactions Practice said noting that the “market has expanded significantly in recent years, with floating regasification projects having already commenced operations in Jordan, Kuwait and the United Arab Emirates.” The BW Singapore will be delivered by the end of September 2015 in Ain Sokhna Port and will commence operations in October 2015. (Read)

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NATIONAL SECURITY

Interior Ministry reveals cause of death of former head of Al-Gama’a al-Islamiyya Shura Council
Al Mal | 09 August 2015
The Interior Ministry issued a press release stating that fever, low blood pressure and low blood sugar were factors in the death of Mohamed Essam El Din Darballah, former head of Gamaa Al Islamiyya’s Shura Council. Darballah, who was facing trial for membership in an illegal organization and imprisoned in “Al Akrab” maximum security wing of Tora Prison, was pronounced dead by EMT on Saturday. He died en route to a hospital following a court appearance. (Read in Arabic)

Two security officers dead in an attack in El Arish
Al Mal | 09 August 2015
An IED in El Arish killed a police captain and an enlisted member of the force; three other members of the police service were critically injured in the attack. An investigation into the incident is ongoing, according to an Interior Ministry statement. (Read in Arabic)

ON YOUR WAY OUT

Finance Minister Hany Dimian praised the Tax Authority for having managed to collect EGP 292.3 bn in taxes in FY 2014-15, a 7.2% rise y-o-y, according to Al Borsa. The collection rate was 20% below budget, with the shortfall largely attributable to the delayed implementation of the value-added tax.

Emaar Misr saw its shares drop 7.51% on Sunday to EGP 3.00, meaning it’s now trading about 20% below the offer price for its recent IPO. The move comes amid a tumultuous week for the stock, and the buyback of 90 mn shares through its stabilization fund. (Read in Arabic)

The Mahlab government will pilot a “Green Rooftop” program at the ministries of education and scientific research, including the planting of rooftop gardens. The Scientific Research Academy has already planted summer vegetables, reports Egyptian Streets. If successful, the program will be rolled out to “all government utilities and houses.”

Egyptian swimmer Ahmed Akram finished in fourth place in the 2015 FINA Swimming World Championships 1,500m Freestyle Finals on 9 August, Al Shorouk reports. Akram, who completed the race in 14:53, became the first Egyptian and African male swimmer to compete in the World Championship Freestyle Finals.

Egyptians take golds at U.S. Sumo Open: Who knew we were a sumo-wrestling power? Egypt’s Ramy Elgazar dethroned the reigning U.S. champion sumo wrestler (and four-time World Sumo champ) in the U.S. Sumo Open’s heavyweight division on Saturday evening. Egyptian Ramy Belal won the middleweight gold, his second U.S. Open championship in that weight division, according to an American media report.

BY THE NUMBERS

USD CBE auction (Sunday, 09 August): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Monday, 10 August): 7.88 (unchanged from Sunday, 26 July)

EGX30: 8011.1 (-1.3%)
Turnover: EGP 319.5 mn (32% below the 90-day average)

WTI: USD 43.87 (-1.8%)
Brent: USD 48.61 (-1.8%)

TASI: 8,699.2 (+0.5%)
ADX: 4,809.0 (-0.6%)
DFM: 4,098.5 (-0.6%)
KSE Weighted Index: 419.3 (+0.5%)
QE: 11,610.2 (-1.4%)
MSM: 6,407.9 (-0.4%)

 

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