Another cabinet U-turn, this time on the Civil Service Act?

TL;DR

• Another cabinet U-turn, this time on the Civil Service Act?
• Oriental Weavers subject to competition authority probe, denies it used anticompetitive tactics
• For the love of tuktuks: Three-wheelers serve 10s of mns daily
• BG Group could build USD 2 bn pipeline linking Israeli gas fields to Egypt
• Only cement producers to be allowed to use coal power?
• Journalists hit with fines under anti-terror law could be forced to clean police stations

WHAT WE’RE TRACKING TODAY

A new prosecutor-general will be sworn-in some time today, reports AMAY. President Abdel Fattah El Sisi will choose from a short list of three drawn up by the Supreme Judicial Council, the newspaper reports, saying the nominees are Aly Omran (acting prosecutor general), Nabil Sadek (vice president of the Court of Appeals) and Adel El Saeed (deputy minister of justice).

WHAT WE’RE TRACKING THIS WEEK

SODIC’s Q2 2015 results conference call will take place on Thursday, 20 August 2015 at 3:00 pm Cairo local time, 13:00 GMT.

Also tomorrow: The two-day 8th tripartite summit on Ethiopia’s GERD will begin in Addis Ababa. A new deadline will be set at the meeting for France’s BRL group and the Netherlands’ Deltares consultancy firm to submit their reports, following the missed deadline on Wednesday, 12 August.

LAST NIGHT’S TALK SHOWS

Rania Badawi, this reviewer’s favorite TV personality, played lead host on Tuesday night’s edition of Al Qahera Al Youm. Badawi devoted the bulk of the episode to coverage of “The Fatwa: Current Realities and Future Prospects” a gathering organized by Dar Al Ifta that aims to curb the spread of extremist and unorthodox fatwas. As we discuss in further detail in the On Your Way Out section below, President Abdel Fattah El Sisi opened the conference by calling on clerics to play larger role in spreading an orthodox, tolerant version of Islam.

Badawi commended the president on his participation in the conference: “Today, President El Sisi rectified the image of Islam, a religion whose reputation has been tarnished by the actions of terrorists.” The host proceeded to highlight the UAE’ recent decision to allot land for the construction of a Hindu temple, the first of its kind in the country, as evidence of the tolerance of Islam. “This is an example that we Muslims should try to to follow,” she said.

After providing Egyptian viewers with their daily limit of positive thought, Badawi took a sharp 180 degree turn, focusing the remainder of the one-hour segment on Daesh and the existential threat it poses to Egypt. “Daesh is inching towards our Libyan borders,” said a hysterical Badawi. “The Egyptian state must handle this situation; this is of utmost importance,”

After the segment on religious tolerance came to it end, Badawi transitioned to a discussion on breast cancer treatment and prevention. A ray of sunshine she was, last night.

Meanwhile, Magdy El Galad hosted Hona El Assema, filling in for Lamees El Hadidy on Tuesday night. Galad kicked-off his show with a discussion of the escalating spat between Ahly SC, Zamalek SC — the most popular football clubs in Egypt — and the Egyptian Football Association (EFA). Tensions between the three sides have risen in recent weeks, following Ahly SC’s signing of Egyptian Premier League sensation Ahmed El Sheikh, a player who allegedly put pen to paper with Zamalek SC weeks earlier, effectively violating FIFA regulations.

After a weeklong investigation by the EFA into the matter, El Sheikh was hit with a four-month match ban on Tuesday. In a show of defiance, Ahly SC’s responded to the EFA’s ruling, which it believes to be unlawful, by announcing their intention to boycott all EFA-affiliated competition.

In an effort to placate Ahly SC, EFA spokesman Azmy Megahed telephoned-in, stating, “The EFA is merely enforcing FIFA regulations; we are not treating Ahly SC unfairly. I ask that Ahly SC’s board act sensibly. If they disagree with our ruling, then they should file an appeal.” Attempting to end his conversation on a reconciliatory note, Megahed stated, “It is not right that relations between Ahly SC and Zamalek SC have deteriorated so severely as a result of a player. I call on the Sports Minister to resolve the issue.”

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SPEED ROUND

Is Mahlab backtracking on the Civil Service Act? Prime Minister Ibrahim Mahlab met yesterday with public servants protesting the Civil Service Act, Ahram Gate reports. Mahlab said that all of the employees’ concerns will be addressed, according to a statement from the PMO, raising the question of whether we’re about to see another example of official backtracking. The Prime Minister added that the executive regulations of the law will be put up for an extensive social dialogue and will not be issued until deliberations with experts and stakeholders have been completed. The move follows anger and “dismay” by staff at the Tax Authority and other government agencies following statements by the President that the government would not waver in its implementation of the act. A union member said protesting civil servants had merely postponed a planned “mn man march” of disgruntled state employees until they saw whether the Prime Minister could offer something better at the meeting, El Watan reports. Ahram Online has coverage in English for those so inclined, and the Mahlab meeting is now front-page news on the mothership. Regardless of the language in which you follow the story, it now seems likely that the Civil Service Act could be watered down, meeting in its own way the same fate as the capital gains tax, petroleum product price hikes and the cotton import ban.

Egyptian Competition Authority (ECA) says it will recommend the prosecution investigate Oriental Weavers for alleged antitrust violations; OW counters it has 15 days to set things right. The ECA is accusing Oriental Weavers of monopolistic practices after investigations reportedly found the company had signed agreements with distributors that barred them from carrying competitors’ products,according to a statement posted to the ECA’s official website. The authority says that if Oriental Weavers could face a fine of up to EGP 300 mn if found guilty of anticompetitive practices. Reuters has picked up the story in English, and the domestic business press is having a field day with the issue. Meanwhile,Oriental Weavers responded in a statement to EGX denying it had engaged in monopolistic practices. The company further explained that the ECA has given it a 15-day window within which to remove exclusivity clauses from their contracts. Analysts estimate OW has a c. 90% share of the local market. (The direct link to the ECA statement is here. At time of dispatch this morning, that direct link did not work, but the statement was reachable via the ECA’s homepage. In the event the statement should be down, we have taken the liberty of reproducing a copy on our blog.)

What are the analysts saying? So far, they’re fairly sanguine on OW. In a note released late last night, Pharos Research concludes that “if the company is proven guilty and charged the maximum fine of EGP 300.0m, our new FV estimate would be adjusted downwards to EGP 12.4 per share but we will maintain our buy recommendation on the presence of a valuation gap of 21.1%.” (The investment bank’s upgrade of OW is discussed below in the company’s “Message from Pharos Holding”.)

U.S. oil prices are still hovering at six-year lows, Reuters said, after China’s stock market plunged 6% on Tuesday, fuelling worries about global fuel demand at a time of heavy oversupply. Commodities are following suit with industrial metals, including copper, edging towards six-year lows as well. Saudi Arabia’s market continued to drop correspondingly. In its 2015 Article IV consultation with the Kingdom, the IMF called on Riyadh to reduce its reliance on oil. The Fund expects Saudi Arabia to run a fiscal deficit of 19.5% to GDP this year. Egypt’s market is also falling given close economic ties with the GCC that includes overlapping investor bases.

BG Group is interested in gas from Israel’s Leviathan field and is even willing to build a USD 2 bn pipeline connecting the field to Egypt, a gas company executive told Globes. “… The most important thing in the gas outline agreement that was approved is the stability clause … In addition a mechanism must be found that will ensure compensation if something happens in the political arena that influences the gas supply contracts,” the executive was quoted as saying. The executive added that the reduction of purchase price in the most recent agreement between the Israeli government and Noble and Delek is not significant, with access to financing remaining the most important thing.

… It’s not just Egypt that is concerned with natural gas developments in the Mediterranean. Israeli commentators are already looking into a post-gas-agreement world with a suggestion that Turkey could play a strategic role as regional competition for the gas produced intensifies. Despite the current political differences between Turkey and Israel, Emmanuel Navon believes there is room for pragmatism to prevail: “Turkey needs Israel’s gas, but it also needs to save face vis-à-vis Hamas. Israel’s huge natural gas reserves constitute a new and unprecedented asset for Israel’s foreign policy. Relations between Israel and Turkey might never be fully mended, especially as long as Erdogan is in power, but the mutual interests created by Israel’s natural gas resources are likely to stabilize bilateral relations to the benefit of the two countries and of the region.” However, such a rapprochement is “contingent upon a ceasefire agreement with Hamas to ease the Gaza blockade, a Turkish official said on Monday,” as reported by The Times of Israel.

Tuktuks serve more than 30 mn citizens every day, create jobs, study says. Tuk-tuks provide affordable and practical solutions to a number of transport challenges in Egypt, a study from top lobbying outfit NGage suggests. Over 30 mn people use the three-wheeled vehicles as a means of transportation on daily basis, it says, but the government is still refusing to facilitate licensing and regulating the three-wheelers — without a clear reason. Macroeconomically, NGage sees that tuk-tuks create new jobs opportunities, bringing in income that would be reinjected into the economy. The study has been widely picked up in thedomestic press as the Cairo governorate’s clampdown on the vehicles continues. You can read the complete study (in Arabic) here.

Speaking of tuktuks: The FEI is looking into a national manufacturing strategy for the three-wheelers, with the first phase of the strategy expected to launch by December 2016, said Federation of Egyptian Industries transport division head Adel Badir. If successful, a more comprehensive second phase strategy will come to play by January 2018, with the aim of boosting the local content of the product from 20% to 60%. (Read in Arabic)

The lucky few: Only cement factories can use coal for fuel, said Environmental Affairs Minister Khaled Fahmy, adding that the ministry will oversee the safe unloading and transport of the fuel. The Ministry will not hesitate to impose penalties on shipping and transport companies not abiding by coal usage regulations, Fahmy said. He added that coal-fired power stations will only be built outside of Cairo and on the coasts of the Red Sea and the Mediterranean using the most advanced technological standards, Al Mal reports.

High alert issued along Egypt-Libya border: Libyan border security at Musaid (the major crossing point between Libya and Egypt) inexplicably disappeared several days ago, according to Ahram and as reported byAhram Online. The unexplained disappearance has resulted in the issuance of a high-level security alert, although “Marsa Matrouh’s security head, Hisham Lotfy, said that the Egyptian-Libyan borders are completely secure, and that Egyptian forces are prepared to face any attempted breach of the borders,” according to Ahram Online.

Rogue State Alert: Qatar. A Qatari diplomat arriving at Cairo airport from Athens was detained briefly for attempting to bring in 9 grams of a combustible substance, Ahram reported. (Mentioning the substance by name in Enterprise would cause today’s issue to bounce from inboxes). Following an apology on his behalf by the Qatari embassy in Cairo, the diplomat was deported. Meanwhile, television anchor Jaber Armouti, the near-sighted Asperger’s guy who plants his face in newspapers on his desk, shuffling papers around and calling it a television show, has appealed for calm and called upon the Egyptian media not to exploit the incident to prevent further escalation. As our long-time readers are well aware, we would never do anything like that. The whole incident does, however, beg the question: Just where on his person was the contraband found?

IFC invested USD 783 mn in Middle East infrastructure projects in FY 2014-15: The International Finance Corporation (IFC), a member of the World Bank Group, strengthened its investments in infrastructure projects in the Middle East and North Africa in FY 2014-15, particularly renewable energy projects, with total investments in infrastructure reaching USD 783 mn, 47% of which were joint loans. The IFC had invested USD 639 mn in the same sector the year before. (Read in Arabic)

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A MESSAGE FROM PHAROS HOLDING

We’re upgrading Oriental Weavers to ‘BUY’ despite cutting its FV. Here’s why.

OW reported a consolidated attributable net income of EGP 261.1m in H1-15, up 9% y/y and slightly below our estimate of EGP 276.0m. Second quarter sales came in at EGP 1,541m, up 8% on the back of a strong 36% growth in local sales volumes, which offset the 9% drop in export sales. We remind readers that OW reported a decline in exports in Q1-15 mainly due to the loss of 30-40% of typical sales to a key European customer, which had historically accounted for cc 12.0% of total sales. Q2-15 export sales continued to be negatively impacted by the reduced exposure to the said customer, in addition to the 19% y/y devaluation of the EUR versus the USD. We expect a soft recovery in Q3-15 export sales due to the 2.6% devaluation of the EGP versus the USD QTD.

A softer outlook on export recovery and the dynamics of OW’s raw material base together leave us to predictfalling sales, declining GPM and a lower net profit figure. Why, then, are we upgrading it to BUY from HOLD? Click here to find out.
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SPOTLIGHT ON Draft Media and Press Law

Despite criticism that the anti-terrorism law enacted on Sunday effectively curtails freedom of the press, little attention has been paid in international media to the draft Media and Press Law, released by the Supreme Council of Press earlier this week. Al Ahram (bastion of quality journalism that it is) has called the draft a “watershed” and “game changing legislation.”

Aside from guaranteeing that journalists and media institutions should be allowed to go about their business unhindered, the draft law (which Al Ahram has published in full) includes guarantees of freedom of the press and ‘responsibilities of journalists’; sets out media ownership and licensing rules (including, for the first time, online media); regulates state-owned media; and establishes state regulatory agencies for the press.

Notably: The draft also appears to give the Press Syndicate wide power to help protect journalists in the workplace and scraps years of accumulated debt incurred by state-owned media institutions. It also envisions three independent regulatory bodies: A Supreme Council for the Media, a National Authority for the Press, and a National Authority for the Media which will be enforcer of the law. The authorities of the first two bodies are yet to be determined.

With regard to sanctions journalists could face under the anti-terror law passed Sunday night, those unable to pay their EGP 200k – 500k fine for publishing information contrary to official reports can choose to spend three months in prison in return for EGP 5k off their fines for each day the duration of the prison sentence, or engage in manual labor, according to Article 521 of the Criminal Procedure Code. Cairo Court of Appeals chief Ahmed Abo Ayad said that manual labor usually means cleaning police stations. Furthermore, all bank assets and property shall be confiscated in the event that the convicted journalist fails to pay the fine, serve the prison sentence or engage in manual labor. (Read in Arabic)

EGYPT IN THE NEWS

A Financial Times editorial and a Wall Street Journal blog post both warn of the potential pitfalls of the new antiterrorism law. Brian Katulis and Mokhtar Awad argue in the WSJ that “it would be counterproductive if the government seeks to prosecute an Islamist or secular activist engaged in nonviolent protests the same way it prosecutes Islamists who plant explosive devices or recruit for Islamic State affiliates,” and call for “more open debate and battle of ideas than exists in Egypt as part of a comprehensive counterterrorism strategy.” The FT View editorial board write in ‘Sisi’s crackdown in Egypt will not bring stability’ that while the “Egyptian government … is … justified in adopting tough counter-terrorism laws,” the “crackdown is radicalising a younger generation of Muslim Brotherhood leaders who might once have eschewed violence but now believe they have no alternative …”

WORTH READING

“When economics clashes with an institution’s rules, policymakers must either find creative ways to amend the rules or watch their creation collapse,” writes Greece’s influential former Finance Minister Yanis Varoufakis, presenting a new idea to restructure the Eurozone’s debts. As opposed to the IMF’s call last month for creditors to either accept a haircut or extend maturity of debt by up to 30 years, Varoufakis instead takes part of a proposal authored by James K Galbraith and Stuart Holland and suggests the ECB could undertake a debt-conversion programme. The idea involves no debt monetization, would lower aggregate interest rates, leave Germany unaffected, reduce moral hazard, and remain in line with international best practices for sovereign-debt management, according to Varoufakis. He closes his argument by saying that taking his proposal “would help to heal Europe’s wounds and clear the ground for the debate that the European Union needs about the kind of political union that Europeans deserve.”

DIPLOMACY

The Arab League urged military support for Libya against Daesh in the divided country during their emergency session on Tuesday, but declined to pledge public support for airstrikes, The National reports. “What is surprising is that double standard with which the international community is [responding to] the threats of Daesh … There is energy and work when it comes to pushing it back in Syria and Iraq, but ignoring the same group’s practices in Libya,” said Tarek Adel, Cairo’s representative at the Arab League.

Syria’s opposition, along with Saudi Arabia, have rejected a Russian initiative to form an anti-Daesh coalition that would include Bashar Al Assad, Newsweek reported. “Assad is the root of the problem,” said Syrian National Coalition leader Khaled Khoja in Moscow on Thursday in a Russian-language interview with Interfax.

10 Egyptian fishermen are believed to be detained by Sudanese authorities since 16 August, El Watan reports. The fishermen, who are from the city of Al Qoseir in the Red Sea Governorate, were forced back to Port Sudan by Sudanese authorities from the natural reserve of Hamata in the Red Sea Governorate. Families of the detained fishermen say that the boat traveled in territorial waters in accordance with international agreements signed between Egypt and Sudan.

ENERGY

EGAS assessing LNG supply bids, no new tenders expected until mid-2017
Ahram Gate | 18 Aug 2015
EGAS began technical assessments of the bids presented from 12 international companies to supply Egypt with 45 LNG cargoes. The technical assessment period is set to take a week and will be followed by financial assessments to determine the winning bids. The winners are set to be announced during the first half of September, as LNG cargoes are expected to be delivered starting from October. A source at EGAS said that there will no LNG tenders issued until mid-2017. (Read in Arabic)

GANOPE seeks to generate power from geothermal energy
Veto Gate | 17 Aug 2015
GANOPE said it is planning on inaugurating a project to generate power from geothermal energy, according to Chairman Abu Bakr Ibrahim. There are specific areas falling within GANOPE’s remit that have the potential for geothermal energy, Ibrahim added. GANOPE sees the expansion towards alternative energy as an option to reduce imports and cut expenditures. (Read in Arabic)

Petroleum sector representatives discuss investment opportunities with Chinese delegation
Al Shorouk | 17 Aug 2015
A Chinese government representative met with members of the petroleum section of the Federation of Egyptian Industries to discuss investment opportunities in Egypt. China is looking to increase bilateral trade with Egypt, its representative said. The Egyptian delegation said the energy and mining sectors domestically remain virtually untapped and have a large potential. The Chinese delegation is, reportedly, assessing the Egyptian market and eyeing various investment opportunities in Egypt. (Read in Arabic)

Mashreq Petroleum to establish EGP 3 bn fuel storage and distribution facility
Al Akhbar (print) | 18 Aug 2015
Mashreq Petroleum has signed a 25-year concession agreement with the Port Said Port Authority to establish an EGP 3 bn fuel storage and trading facility, said the company’s chairman and managing director, Tamer Abu Bakr. Under the concession agreement, 90% of the project must be completed within five years. The project aim to service vessels passing through the port. Our take: We believe this to be the recycling of old newsdating back to 2013.

BASIC MATERIALS & COMMODITIES

USD 240 mn in losses due to rice smuggling
Amwal Al Ghad | 18 Aug 2015
A total of 500k tons of rice have been smuggled out of Egypt since the export ban was lifted in October of last year, according to Mostafa El Soltaisy, deputy head of the division of rice production in the Federation of Egyptian Industries. Official export routes include a fee of USD 450 paid per ton exported, which adds up to c.USD 240 mn in revenue lost due to smuggling. The rice is smuggled out through Saloum at the Libyan frontier and across the Sudanese border, says El Soltaisy, highlighting the importance of the government taking action against the illegal activities destroying the rice export system. (Read in Arabic)

MANUFACTURING

EGP 14 bn from plastic and rubber exports expected in 2015 -Chamber of commerce official
Amwal Al Ghad | 17 Aug 2015
EGP 14 bn in plastic and rubber exports are expected in 2015, Khaled Abu El Makarem, the head of the plastics sector of the Federation of Egyptian Industries said. The sector has already brought in EGP 9 bn in the first nine months of the year, and improved production rates could increase exports further still. The sector has a renewed strategy to expand into American and African markets, according to Abu El Makarem, who also said domestic petrochemicals producers are looking to the plastics sector to increase their investment and utilize their spare capacities. (Read in Arabic)

EUR 13 mn to convert Lafarge factories to run on coal by mid 2016
Al Borsa | 18 Aug 2015
Lafarge Cement Egypt has allocated EUR 13 mn to buy the necessary equipment to convert its factory to use coal in the second half of 2016, according to managing director Hussein Mansy. The company is currently sorting out its legal standing with the environment ministry as per regulations before they can begin to import coal. (Read in Arabic)

HEALTH & EDUCATION

El-Gomhouria Company targets EGP 1.155 bn sales this fiscal year
Al Mal | 18 Aug 2015
El-Gomhouria Company, a subsidiary of HoldiPharma, is targeting EGP 1.155 bn in sales, as well as a net profit of EGP 15 mn, this fiscal year, according to El-Gomhouria Chairman Wagdy Gaber. EGP 2.7 mn have been allocated, from this year’s strategic plan, to developing storage facilities, as well as all 20 branches of the company. (Read in Arabic)

REAL ESTATE & HOUSING

New Emirati grant to build 50k housing units
Al Mal | 18 Aug 2015
The UAE are offering Egypt a second grant to build 50k housing units, Housing Minister Mostafa Madbouly said. The ministry is also in the process of fundraising USD 2-3 mn through foreign loans to buy necessary materials for the first phase of the rural villages in the mn feddan reclamation project. (Read in Arabic)

25k middle-income housing units to be issued in Dar Misr project
Al Mal | 18 Aug 2015
The New Urban Communities Authority (NUCA) will issue, on Thursday, the second phase of the Dar Misr middle-income housing project. Registration begins in September for 25,656 housing units in 11 new cities with spaces ranging from 100-150 sqm. The new units are located in 6 of October City, Sheikh Zayed, New Cairo, Shorouk, Obour, Badr, 10th of Ramadan, New Damietta, Sadat City, New Minya and New Borg El Arab, according to Housing Minister Mostafa Madbouly. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Cabinet forms national trade network to connect ports
Al Borsa | 16 Aug 2015
The establishment of an electronic trade network connecting the different trade-related entities throughout Egypt’s ports was approved by the cabinet on Sunday. The network, named Egy Trader, aims to reduce congestion in ports and expedite customs clearance and connect all of the entities related to import and export activities electronically. Egy Trader will be piloted in the Port of Alexandria, Transport Minister Hany Dahy said. (Read in Arabic)

BANKING & FINANCE

EFG Hermes Leasing signs EGP 200 mn financing agreement with Banque Misr
Al Mal | 17 Aug 2015
EFG Hermes Leasing signed an agreement securing EGP 200 mn in portfolio financing from Banque Misr, Al Mal reported. The credit facility has a maturity ranging from five to eight years and will be used to finance EFG Hermes Leasing’s contracts in the coming period. Liquidity will be made available “soon,” a source added, with funding disbursed to cover signed leasing agreements on a case-by-case basis. EFG Hermes Leasing aims to grow its portfolio to around EGP 550 mn by the end of the year. (Read in Arabic)

Housing and Development Bank reports 1H15 net profit of EGP 322 mn
Daily News Egypt | 18 Aug 2015
The Housing and Development Bank (HDB) reported 1H15 net profits of EGP 322 mn, a 71.3% increase from the same period last year, according to Vice Chairman Essam Abu Hamed. The bank’s loan portfolio grew by EGP 469m as of the end of June, an increase of 6.6% from the same period last year, with deposits increasing to EGP 10.7bn, a growth rate of 11.5% (Read)

EGP 300 mn in loans to 7k benefactors of Mashroak
Al Borsa | 18 Aug 2015
Seven thousand applicants to the national social and human development project ‘Mashroak’ have been granted loans totaling up to EGP 300 mn, Al Borsa reports. Of those, 5k of these projects, totaling EGP 170 mn, have begun operations, while the remainder have been greenlit. There is no ceiling on the amount per loan, said Minister of Local Development Adel Labib. (Read in Arabic)

EFSA grants over 300 licenses to micro financing NGOs
Al Mal | 18 Aug 2015
The Egyptian Financial Supervisory Authority (EFSA) has granted licenses to over 300 NGOs operating in micro financing out of a total 667 applicants who have received temporary licenses, according to Malak Reda, head of supervision over micro financing at the EFSA. The deadline for NGOs to apply to change their temporary licenses to permanent licenses was extended to 27 August, with the date of their issuance to take place no later than 30 September. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

EUR 2.6 bn in trade between Egypt and France in 2014, says French-Egyptian Business Council
Amwal Al Ghad | 18 Aug 2015
Trade volume between Egypt and France in 2014 hit EUR 2.6 bn, up 2.8% from 2013, according to council head Fouad Younes. Egyptian exports to the French market dropped 13.5% to EUR 1 bn last year, while French exports to the Egyptian market grew 17.2% to EUR 1.6 bn. France was the fifth-most important foreign investor in Egypt in the period between 2013-2014, with investments of USD 347 mn. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Pressure on Shukrallah to rescind her resignation, Dostour spokesperson says
Al Shorouk | 18 Aug 2015
Dostour Party is pressuring Hala Shukrallah to rescind her resignation and return to head the party, according to Dostour’s spokesperson, Hayam Fadel. Fadel said Shukrallah resignation cornered the party given that she is the legal representative of Dostour at the political parties committee. The committee was not informed that Tamer Gomaa was appointed as secretary general to the party in September, making it impossible for him to succeed Shukrallah as the party’s representative on the parties’ committee. (Read in Arabic)

President El-Sisi does not consider political parties reliable partners, says Sadat
El Watan | 18 Aug 2015
President El-Sisi has grown more sensitive to criticism and increasingly less tolerant when it comes to the opposition, according to Reform and Development Party leader Mohamed Anwar El Sadat in an interview with El Watan. He goes on to observe that the President does not view political parties as reliable partners, something which does not bode well for the coming parliament, whose role is supposedly to check the powers of the presidency and the government. (Read in Arabic)

Egypt coordinates with Uganda to bolster trade
Al Mal | 18 Aug 2015
The Ugandan Ambassador and the African Egyptian Trade Office are engaged in talks to help bolster Egyptian investments in Uganda, said AETO head Yasser El Simbiaty. He added that since the African Tripartite Summit, which took place in June, Egypt has redoubled its focus on trading with the continent, citing Qalaa Holdings and Arab Contractors and their major investments in key infrastructure projects as successful models for Egyptian companies entering the African market. The company is also set to host a conference next month with an eye to encouraging further Egyptian business in the continent. (Read in Arabic)

Palestinian Ministry of Endowments representative arrested in Cairo Airport
El Watan | 18 Aug 2015
Palestinian news agency Safa reported on 18 August that Egyptian authorities arrested Palestinian Ministry of Endowments representative Hassan Al Seify on 16 August. Al Seify was arrested in Cairo Airport coming from Saudi Arabia with Gaza as the final destination. No reasons as to why Al Seify was arrested, however. (Read in Arabic)

ON YOUR WAY OUT

Officials from GAFI are set to meet with the Tax and Customs Authorities today to resolve differences on reversing an earlier decision to essentially scrap freezones, said GAFI head Alaa Omar. This comes after the Investment Ministry issued a report last week extolling the benefits of freezones and convinced its counterparts in the Ministerial Economic group of its importance to the economy. Both the Tax and Customs Authorities have major grievances with special freezones, not least of which is their claim that they open opportunities to evade customs, Al Borsa reports.

Well-founded Islamic edicts by experienced scholars play a fundamental role in staving off “chaos, divisions, and fundamentalist ideology” in a Muslim society, said President El-Sisi, at an international conference on the “The Fatwa: Current Realities and Future Prospects” organized by Dar Al Ifta on Tuesday. The two-day conference began on Monday and hosted a number of leading Islamic scholars, including Mufti Shawky Allam, Dr. Osama Al Azhary, the Imam of the Masjid Al Haram in Saudi, and a host of other religious officials from across the Muslim World, SIS reports. The aim of the conference is to combat ever increasing and contradictory fatwas sprouting out of every corner of the region, causing much confusion. “The distinction between Islamic culture and the demagoguery of terrorist organization must be made more clear”, Azhar clerics stated In a joint statement at a “National Unity against Terrorism” forum held on Monday, which came out in support of the Anti-Terrorism Law. Speaking at the conference, Justice Minister El Zend said that Al Azhar was and will remain a force for moderate Islam.

Al Ahly FC board of directors, headed by President Mahmoud Taher, has decided to boycott football activities for its first and junior teams organized by the Egyptian Football Association(EFA) on 18 August, Al Shorouk reports. The EFA suspended and fined Al Ahly’s recently signed player Ahmed El Sheikh on 18 August for 4 months and EGP 133k after violating EFA regulations and signing a contract with two clubs, Zamalek and Al Ahly. The boycott is expected to have financial repercussions for the Egyptian football league and its sponsors.

Egyptian antiquities exhibition hits Japan in October: Antiquities Minister Mamdouh El Damaty inked a cooperation protocol to organize an antiquities exhibition through Japan between October 2015 and September 2017 under the title ‘The Era of Pyramid Builders.’ The Exhibition will feature 120 pieces that date back to the Old Kingdom, and will tour 8 Japanese cities including Tokyo and Kyoto, for a period of 25 months. The financial return on this exhibition is estimated at USD 2 mn, said El Damaty. (Read in Arabic)

BY THE NUMBERS

USD CBE auction (Tuesday, 18 August): 7.7301 (unchanged since Sunday, 05 July)
USD parallel market (Tuesday, 18 August): 7.91 (unchanged from Sunday, 16 August)

EGX30 (Tuesday): 7,398.43 (-2.58%)
Turnover: EGP 501.2 mn (7% above the 90-day average)

WTI: USD 42.62 (+1.79%)
Brent: USD 48.60 (-0.29%)

TASI: 8,197.0 (-2.8%)
ADX: 4,539.9 (-2.0%)
DFM: 3,827.6 (-2.5%)
KSE Weighted Index: 412.4 (flat)
QE: 11,670.5 (-0.5%)
MSM: 6,191.4 (-0.5%)