Ramez: “We are not facing a foreign exchange crisis, but rather a challenge.”

TL;DR

Ramez: “We are not facing a foreign exchange crisis, but rather a challenge.” (Last Night’s Talk Shows)

A whiff of worry around the Cabinet table as FX crisis takes hold. CBE allows EGP to fall against USD and we may or may not want an IMF facility. (Spotlight in Speed Round)

Polls open today in elections for the House of Representatives. (Spotlight in Speed Round)

A global fortune “Made in Egypt.” Arabian Business interviews Mohamed Mansour (Speed Round)

Egypt wins U.N. Security Council seat (Diplomacy)

Nuke talks with Russia in “final stages,” Rosatom official says. (Speed Round)

New cement licenses to be announced “within days” (Basic Materials + Commodities)

By the Numbers + Which stocks could benefit as the CBE continues on course with devaluation?

WHAT WE’RE TRACKING TODAY

Polls open today for the first round of voting in parliamentary elections in 14 districts.Polls will stay open until Monday. Egyptians living abroad deemed resident in these districts were able to start casting their ballots on Saturday, and will be able to vote today as well. Voters and interested readers may find more on the process and coverage on the elections in our Spotlight below in the Speed Round. Heading to the polls today are residents of: Giza, Fayoum, Beni Suef, Minya, Assiut, New Valley, Sohag, Qena, Luxor, Aswan, Red Sea, Beheira, Alexandria and Marsa Matrouh.

The Ismail government is sounding increasingly worried about the state of the nation’s FX reserves, with cabinet members seeming to flip-flop on whether we’re opening talks on an IMF facility and preparing to impose measures to curb imports. The news came as the CBE allowed the EGP to fall another EGP 0.10 against the USD at the end of last week. Details in a special Spotlight, below.

Egypt has won a two-year seat on the United Nations Security Council. See Diplomacy for more.

Public and private schools will be off from 18-19 October in the 14 governoratesparticipating in the first round of elections to accommodate voting, Ahram Gate reports. There is no public holiday for voting.

Today is the final day of Le Marché, the largest furniture and home exhibition in Egypt and the wider MENA region. The event set new attendance records this weekend.

The Wind Power North Africa conference, focusing on Egypt, Morocco, Libya and Tunisia, opens today at the Sonesta Hotel Tower & Casino at 8:30 am CLT.

WHAT WE’RE TRACKING THIS WEEK

19-20 October (Monday-Tuesday): Third Annual Public Private Partnership (PPP) conference, held under the auspices of Prime Minister Sherif Ismail at the Four Seasons Hotel Nile Plaza, Cairo. The government is expected to announce 20 projects in infrastructure, transport, sports, industry and ICT at the gathering, including four stadiums in Hurghada, Sharm, Luxor and Marsa Matrouh; an ICT innovation and development center; three water distribution stations; two desalination plants; and the establishment of two major recycling zones. (Read in Arabic)

LAST NIGHT’S TALK SHOWS

Saturday night’s talk shows focused primarily on the parliamentary elections, the balloting for which gets underway in Cairo this morning.

Lamis El Hadidy on CBC Egypt opened Hona El Assema by exhorting citizens to hit the polling stations: “The citizens of Fayoum, which was an Ikhwani stronghold in the previous elections, comprise 3% of Egypt’s electorate,” said the visibly distressed hostess. “Our president today called on us to participate in the [parliamentary] elections,” referring to a televised address to the nation given by President Abdel Fattah El Sisi on Saturday. “Citizens have only themselves to blame if a political movement that we all as Egyptians reject is able to garner seats in parliaments… I don’t need to emphasize to viewers how important these election are to Egypt’s future,” she added.

Osama Kamel, host of Al Kahera Wal Nas’ Cairo 360, struck a similar tone, warning Egyptians of the impending danger that awaits them should Islamist groups make gains in the elections.
“These elections are of utmost importance to the future of this country. President El Sisi called on Egyptian citizens — men and women, youth and seniors, farmers and workers — to participate in the parliamentary elections. I reaffirm this call. We must all take part for the sake of our country. We must participate for the sake of the martyr who lost his life for this country. This country should not lose what it gained on 30 June.”

Kamel then transitioned to a discussion on the country’s foreign exchange crisis / challenge. CBE governor Hisham Ramez called-in to comment:

Ramez: “We are not facing aforeign exchange crisis, but rather a challenge… There is an abundance of USD in Egypt, however…the New Suez Canal and the construction of electricity plants resulted in a depletion of our USD reserves. Additionally, repaying our debts to IOCs further exacerbated the situation. That said, we have met all of our external obligations, despite the various pressures we faced… The country is undergoing a rebuilding process; it incumbent that we ration our spending.”

SPEED ROUND

SPOTLIGHT on the first round of parliamentary elections

Who votes today? Giza, Fayoum, Beni Suef, Minya, Assiut, New Valley, Sohag, Qena, Luxor, Aswan, Red Sea, Beheira, Alexandria and Marsa Matrouh.

Where do I vote? If you are a resident of one of those 14 governorates, and this is your first rodeo, please visit the official elections site here, where voters may find on the landing page a field to enter their 14-digit national ID to locate their assigned polling station. Note: Do not assume that it is the same station as in previous elections — this writer found that his polling station is at a different location from all previous elections.

How do I know who to vote for? On this page of the official elections website, voters may navigate a series of drop-down menus for both individual candidates and party lists, then by governorate, and then by district, to find the names of all candidates running in their district.

• Voters will receive two ballots and will need to vote for both individual candidates as well as party lists / coalitions.
• Candidates running for individual seats still have their party affiliation, if any, listed by their name, enabling most voters to at least make a somewhat informed decision and vote along party lines. Depending on the size of the constituency, some voters will only vote for one individual seat and one seat for party lists, while some voters may need to select up to four individual candidates alone in addition to their vote for the party list candidates.

What if I want to boycott the elections? We remind you of this 2010 Brookings paper: Threaten but Participate: Why Election Boycotts Are a Bad Idea. (Read, pdf) Also, to be both perfectly biased and blunt: Even if one thinks the next parliament will be ineffective, does anyone other than Hezb Al Nour want to see Hezb Al Nour in the House of Representatives? Even other Islamists don’t like them.

What if I just don’t feel like it? Ayman Abbas, head of the High Elections Committee reminds us all that those registered voters who do not show up to vote will be fined EGP 500 as per the Political Rights Law, AMAY reports. Enterprise Public Service Announcement: It is also important to note that it is wrong to stands in front of an A/C or a fan when one is hot and sweaty, lest one wish to contract a cold and die. Similarly, one should make sure that one’s toes do not protrude past the edge of one’s blanket, as the toes are the part that monsters find most delicious.

When will we know who won? Results from round one should be out on Tuesday, 20 October, with a two-day appeal process running this Tuesday and Wednesday.

I live in Cairo (or Suez or Sinai, or…) — When do I get to vote? Voters in all other governorates will head to the polls on 21-22 November (if they’re expats) or 22-23 November (residents of Egypt).

Where to follow live coverage of the election: Ahram Online traditionally live blogs all elections, and readers will most likely find that coverage parked here. The Tahrir Institute for Middle East Policy (TIMEP) is also set to live-blog the election, and is also set to map the resultshere (select the radio button for the 2015 elections, as of this morning the option is not yet available as voting has yet to begin).

Who’s monitoring the election? 65 countries and six local and international NGOs will monitor the upcoming parliamentary elections, Hamdy Louza, Deputy Foreign Minister, said on Saturday (Read in Arabic). However, as has been the case in every vote since the 2011 constitutional referendum, delays in issuing visas to international monitors has hampered their abilityto provide a thorough and comprehensive assessment. Democracy International, as reported byReuters, issued a statement on Friday citing the lack of issues as having forced them to scale back their originally planned monitoring efforts.

International coverage in the run-up to the polls:

“Sisi walks fine line between Egypt’s tycoons and generals“: The newswire uses Naguib Sawiris’ now effectively on-hold pledge to invest USD 500 mn in Egypt as a way into a piece it says illustrate tensions between the president and the business community. The story is widely critical of the administration’s emphasis on megaprojects, saying, “business leaders grumble that his government has failed to [address] decisively more pressing problems, including crippling shortages of energy and foreign currency, discouraging local and foreign investors.”

“Sisi to ‘tighten grip’ on Egypt“: Reuters says that despite having the power to “impeach the president himself,” a lack of serious opposition will mean the “new chamber is unlikely to challenge what critics describe as [President Abdel Fattah El Sisi’s] increasingly authoritarian rule.” The wire service is also critical of “expensive projects” such as the New Suez Canal and arms agreements, which it frames as possible attempts to “divert attention from politically-sensitive reforms, such as cutting subsides or slimming the civil service, that are needed to promote long-term economic growth.” (Read)

“Voting begins in Egypt’s parliamentary election“: The piece for the Associated Press notes the televised address to the nation that President Abdel Fattah El Sisi delivered on Saturday urging citizens to vote. The piece also notes that “None of the key liberal figures that helped fuel the 2011 uprising, like Nobel Peace laureate Mohamed ElBaradei or former presidential candidate Hamdeen Sabahi, are running in the current elections.” (Read)

“Egypt tycoon’s party eyes economy with election bid“: The AFP has a brief report on the Free Egyptians party, running with a quote from Cairo University political science professor Hazem Hosny describing the party’s founder Naguib Sawiris as “liberal in an Egyptian context.”

“In Egypt vote, ultraconservative Islamists try balancing act“: Shadi Hamid thinks the poor, misunderstood Salafis haven’t been given enough media exposure to “get their message out to a larger audience.” The widely picked-up AP piece quotes Nour Party official as saying, “We want an end to the polarization, and are calling for Egyptians to build the country together, with all parties, youth, women and minorities represented in the next parliament for the security and stability of the country.” The rally the reporter was attending seemed uncertain, chanting “Egypt is an Islamic country” before later breaking into chants of “Tahya Masr.”

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SPOTLIGHT on Forex liquidity crunch and request for assistance from the World Bank

Suggestions of concern (we’re being polite here) crept into cabinet members’ statements on Wednesday and through the weekend, with the exception being Investment Minister Ashraf Salman’s note that Egypt’s economy grew by 4.1% in FY 2014-15; Salman also expects GDP growth will reach 5-5.2% in FY 2015-16. High-level expressions of concern followed a string of poor financial results from the CBE, where the banking sector’s cumulative net foreign assets position dived into negative territory — a development taking place for the first time on record since the 1990s, according to EFG Hermes’ Mohamed Abu Basha.

…Here comes the liquidity crunch: Egypt is about to receive a USD 3 bn loan from the World Bank, Reuters reported. The loan will be disbursed over three years to support the state’s budget. Reuters says Prime Minister Sherif Ismail said: “the government is aware of the economic conditions which we’re passing through, and there is a deficit in the budget and we have to handle it gradually.” In total, Finance Minister Hany Dimian said the Egypt is looking to borrow USD 3.5 bn, with the remaining USD 500 mn coming from the African Development Bank (AfDB), according to Al Shorouk. Investment Minister Ashraf Salman added that Egypt will also issue a second tranche of USD 1.5 bn USD-denominated eurobonds late this year or early next, according to Al Borsa.

Minister of International Cooperation says story on possible IMF loan was a misquote, remarks were in reference to Egypt’s existing portfolio with the World Bank: International Cooperation Minister Sahar Nasr denied Thursday’s media reports that the Ismail government is seeking a USD 5.5 bn loan from the IMF, telling Al Borsa that her comments were with regard to Egypt’s existing portfolio with the World Bank. Nasr also met with President Abdel Fattah El Sisi on Saturday to brief him on her meetings with the World Bank and IMF during their annual meetings in Lima, Peru, Youm7 reports.

For its part, the CBE made a move, albeit limited and belated: On Thursday, the CBE let the value of the EGP drop by a further 1.3% to EGP 7.8301 per USD 1. “The EGP has been appreciating in real terms in last few months and reached its peak in 2015, in light of international currencies losing value… Although the structural challenges facing the balance of payments indicate that devaluation will not solve all the problems… it certainly is the basic step that must be taken towards improving our FX base,” CI Capital’s Hany Farahat told Reuters.

This is not enough: “The adjustment is welcome but only if it’s the start of a sustained depreciation trend,” HSBC’s Simon Williams, who expects the EGP to be trading at EGP 9 per USD by the end of 2Q2016, told Bloomberg. The 12-month non-deliverable forwards (NDF) rate plunged to EGP 10.2758 per USD 1.

The three major telecom operators have prepared a report detailing their hard currency needs and imports, which will be sent to the CBE and the CIT Ministry. According to Al Borsa, the report estimates that the three majors require USD 200 mn every three months, to be used to import equipment and parts for maintenance and upgrades. All three are negotiating with their foreign suppliers to make purchases in EGP. All three majors have been experiencing difficulty paying their foreign parent companies, according to executives from the companies. They also state that the ministry’s program to upgrade the networks will suffer as a result of the FX crunch.

Devaluation is driving the Health Ministry to consider raising the price of drugs, Al Borsareports. Health Minister Ahmed Emad stated that the Ministry will also reduce its reliance on imports and strengthen domestic production. The Pharmaceuticals Chamber of Commerce plans to meet with the ministry to discuss pricing options in light of the devaluation where it will suggest raising the price of drugs produced before 2012 by up to 20% and raising the price of nonessential meds by 30%.

Where do we go from here? Assuming that mega projects will continue to be able to secure funding, expect the state to begin shedding some fixed assets, SMEs to struggle to secure foreign currency funding, and for more (temporary) restrictions on imports to be imposed.

There is already news that customs tariffs will be increased on nearly 50 goods, as per Al Masry Al Youm. The newspaper is told that the list will not include intermediate goods or raw materials and the move aims to encourage more reliance of domestic production. What 50 goods are included on the list? The government is not saying as it believes that this might encourage hoarding and anti-competitive practices, but our bet is that you’d better start stocking up on lobster tail, scallops, and imported pet food.

But don’t panic: Hisham Ramez says all of this is “not [a] foreign exchange crisis, but rather a challenge” (see Last Night’s Talk Shows, above). Ramez’s term expires in late November, and there’s no official word yet on his potential reappointment.

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A global fortune “Made in Egypt”: If you need a pick-me-up after considering how grim the FX situation looks, hit up Arabian Business for its cover story on the Mansour Family, slugged on page one as “Made in Egypt” as the author interviews Mohamed Mansour to learn how the family built a “USD 6 bn international empire in just two generations … [with] operations in 120 countries, 60,000 staff, and is growing at 10-20 percent annually.” Says Mansour: “I think the country is on the right track but the challenge will be economically how to give the confidence for FDI, whether from the Gulf or elsewhere…” It’s a great business story featuring one of the classiest guys — and savviest businessmen — we know.

KarmSolar becomes first company licensed to sell electricity produced off-grid from solar energy to the national grid: The solar energy start-up’s license is for a small 1 MW solar power plant at a dairy farm owned by a subsidiary of Juhayna. The project is expected to be operational by April 2016. KarmSolar’s CEO told Wamda the company “had already signed two more Power Purchase Agreements (PPA) with private tourism development projects that will be operational by April 2016.” (Read)

Nuclear talks with Egypt are in their final stages, a senior official from Russia’s state-owned nuclear firm, Rosatom, told Reuters. “Anton Moskvin, Rosatom Overseas vice president, said that the agreement was expected to be signed by the end of the year.” Moskvin reiterated that a nuclear power plant at Daba’a will be finished by 2022, if the contract for the project is signed by 2015’s end. In total, Rosatom is looking to finalise contract signings for four reactors in Egypt under engineering, procurement, and construction (EPC) agreement, according to Bloomberg.

EFG Hermes advise Arabian Cement on investment opportunities and strategy, Al Borsa reports. Arabian Cement is looking to make at least one major acquisition this year and is reportedlypondering a competing bid for Qalaa’s ASEC Minya, for which Misr Qena Cement has made an offer in an exclusive negotiations period.

MOVES- Mohamed Al Masry was appointed as head of the Egyptian General Petroleum Corporation (EGPC), Reuters reported. Al Masry, who has served as deputy head of EGAS for operations and networks since last February, succeeds Tarek El Molla, who was tapped to serve as Oil Minister in Sherif Ismail’s cabinet.

Cabinet held its weekly meeting on Thursday with an agenda focused on formulating the government’s program, which will be presented to the new parliament. The program will focus on curbing inflation, increasing supplies, improving government services, reforming customs, improving utilities at industrial zones and developing Upper Egypt. Resolving hurdles to investment would be a top priority of the new program, said Prime Minister Ismail, who called for speedy talks on USD 8 bn worth of loans and grants, Al Ahram reports. The cabinet’s decisions include:

• Scrapping, on grounds of breach of contract, an agreement between Damietta Port Authority and the Damietta International Ports Company to build and operate a container terminal;
• Allowing the Egyptian Electricity Holding Company sign an MoU with electricity infrastructure developer ABB to overhaul and upgrade a number of power stations across the country;
• Awarding the Drinking Water Company in Greater Cairo an EGP 13.6 mn contract to build a wastewater network in El Marg;
• Approving a bid to host the Special Olympics;
• Approving an EGP 18.9 mn contract with Arab Contractors to restore the National Security building in Shobra;
• Evacuating and compensating residents of a 536 feddan area designated by the president to be the site of “New Rafah”;
• Extending a grace period allowing charcoal exports to 19 January; it had been set to expire on 19 October;
• Charging NUCA with funding and building all key utilities infrastructure in the new administrative capital, an EGP 5 bn project.

EGYPT IN THE NEWS

United States Commission on International Religious Freedom issued its 2015 Annual report on Wednesday, continuing its designation of Egypt as a country of particular concern, noting: “Since he assumed office in June 2014, President Abdel Fattah al-Sisi has made several important public statements and gestures encouraging religious tolerance and has urged changes to religious curricula, a significant shift in tone and rhetoric from his predecessors … Nevertheless, the Egyptian government has not adequately protected religious minorities, particularly Coptic Orthodox Christians and their property, from periodic violence.” (Read the report, pdf)

Al Jazeera journalist Fahmy says he was betrayed, abandoned by Canada PM: Upon his arrival in Canada last week, Al Jazeera journalist Mohamed Fahmy wasted no time placing partial blame on his languishing in a jail cell in Egypt on the lack of effort to secure his release by Canadian Prime Minister Stephen Harper. “Sitting in that prison cell, it was difficult not to feel betrayed and abandoned by Prime Minister Harper,” Fahmy is quoted as saying by Reuters. Canadians vote tomorrow in what is largely seen less as an election and more as a referendum on Harper’s ten-year rule.

Last of three convicted Al-Jazeera journalists leaves Egypt: Baher Mohamed became the last of the Al Jazeera journalists to leave Egypt, arriving in Qatar on Wednesday, for what he describes as a temporary visit according to the AP.

Egypt is “waging war” on civil society: The Guardian comments on the state of non-governmental organizations in Egypt, focusing particularly on the “seizure of 1,300 MB-affiliated [Muslim Brotherhood] NGOs” and the government clampdown on groups “calling for social reform, political liberalisation, and respect for human rights and worker’s rights.” Egypt’s NGO law is described as “one of the most restrictive in the world” and is allegedly being used to “close the public space and restrict it to official government activity or pro-regime voices”. A recent crackdown on foreign funding has also “forced donors to hold off on supporting organisations which have hitherto survived under the radar”. (Read)

WORTH READING

Of gods and men: how ancient Egypt was the crucible for multiple faiths: The Guardian has a must-read on a groundbreaking exhibition set to open concurrently at both the British Museum and the Egyptian Museum in Cairo to “shine a light for the first time on an overlooked and difficult truth: how much the great world faiths and mythologies borrowed from each other and how many modern distinctions were made later… Two hundred of these troublesome objects, many deliberately ignored by scholars in the past, have been gathered together to challenge the conventions of religious history.” (Read)

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The most-clicked stories in Enterprise in the past week were:

• Actress and television host Entesar’s comments on “recreational viewing” which have since resulted in a lawsuit for her alleged attack on public morality. (Watch in Arabic, running time: 3:59)
• Film director Karim Sobky insults television host Wael El Ebrashy live on-air after the latter was being insufferable. (Watch in Arabic, running time: 1:45, profanity in Arabic)
• JLL Cairo Real Estate Market Overview – Q3 2015 (pdf)
• The Second Call: Omar Adel re-edits a scene from a classic Egyptian television series as something akin to a Lynchian dream. (Watch in Arabic, running time: 1:57)

DIPLOMACY

Egypt wins bid for two-year rotating seat on the United Nations Security Council. The bid, backed by a strong lobbying campaign that included an “Evening in Egypt” at the Metropolitan Museum of Art’s Temple of Dendur sponsored by Commercial International Bank, will see Egypt join the body for 2016-17. MoFA’s bid was framed by its promise of taking a multilateral approach to the region’s challenges, pledging “active engagement to help solve the multiple challenges facing Africa, the Arab world and the Eastern Mediterranean region.” Commenting on the win, President Abdel Fattah El Sisi noted, “Egypt’s ascension to the Security Council during this critical time reflects the confidence that the international community has placed in Egypt’s ability to effectively contribute to the international decision-making process. It also illustrates the international community’s recognition of its influential role in promoting peace and stability, both regionally and internationally.” El Sisi highlighted Syria, engagement with Africa and ongoing crises in Libya, Syria and Yemen as priorities alongside “the Palestinian issue.” While Egypt ran uncontested, it still had to secure two-thirds of the votes cast, something which Turkey was unable to accomplish in its own bid for a Security Council seat in 2014, despite heavy lobbying. Because no one likes Erdogan.

CORRECTION: For several issues, we incorrectly stated that the “Arab swing seat” for the UNSC alternates every odd year between the Arab states in North Africa and those in Asia. An informed reader writes us: “Africa has three non-permanent seats at the Council: One for the West African region nations, another rotating between East & Southern Africa regions, and the third rotating between North & Centre African regions. It is this seat that Egypt shall occupy as of Jan 2016. Asia has two non-permanent seats, one for East Asia Nations, and another rotating between South Asia region, and West Asia Region (the Arab nations in Asia).

“However, from time to time, in odd years there could be another Arab nation on the Council, when the seat allocated to East & Southern Africa moves to East Africa (which includes four Arab nations: Djibouti, Sudan, Comoros, and Somalia). Next year Angola (Southern Africa) will relinquish it’s seat to the East Africa region. If Djibouti, Comoros or Sudan were endorsed by the African Summit, we might have two Arab nations on the Council in 2017 (for one year only). Last time this happened was in the early nineties when we had Oman & Morocco together on the Council for a year.” Special H/t HZ.

Defense Minister Sedki Sobhi returned from his official visit to Spain on Saturday, reportsAl-Ahram. The minister discussed increasing military cooperation with his Spanish counterpart, as well as their visions for improving regional security.

A high-level Libyan security delegation met with the government in Cairo on Saturday,AMAY reports. The one-day meeting focused on strategy to combat terrorism. The visit coincided briefly with a visit by UN’s former special envoy to Syria Lakhdar Brahimi, who was meeting in Cairo with officials to discuss regional crises in Libya and Syria. (Read in Arabic)

ENERGY

New international E&P tenders to be issued every year, Khaled Abdel Badie says
One or two new E&P tenders for oil and gas will be issued every year, EGAS’ Chairman, Khaled Abdel Badie, told Youm7. Issuing the tenders is part of the government’s policy to increase exploration activities and expand Egypt’s energy production. EGAS had awarded four concession areas last week expecting a minimum investment of USD 306 mn. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

New cement licences to be announced “within days”
Issuing new cement licences will be announced within days, the head of Egypt’s Industrial Development Authority (IDA), Ismail Gaber, said. Gaber refused to specify how many licences will be issued exactly, but said that the tender regulations are completed and will be presented to the cabinet soon. Gaber added that it is unlikely that the IDA will issue tenders for new steel plants currently. (Read in Arabic)

MANUFACTURING

No energy crisis in factories as of first of November, says Investment Minister
There will be no energy crisis in factories as of 1 November, said Investment Minister Ashraf Salman at the second Akhbar Al Youm Economic Conference. Factories operating at less than full capacity, and factories that have stopped operating completely due to energy shortages, will be able to resume operations, he added. The crisis hit the cement, steel, and fertilizer sectors the hardest, Salman acknowledged. (Read in Arabic)

HEALTH + EDUCATION

Hepatitis C treatment costs down to EGP 2,000 by early 2016, says NCCVH
The cost of treating one Hepatitis C patient will drop to EGP 2000 instead of EGP 70k, says Gamal Esmat, a member of the National Committee to Combat Viral Hepatitis (NCCVH). The most common treatment method is Sovaldi, which the NCCVH has used to treat over 200k patients. However, 10% of patients treated did not respond to Sovaldi, which is why the NCCVH has four other treatment plans with 100% success rates, including ones that don’t involve Interferon treatment. The NCCVH aims to have 100 Hepatitis C treatment centers around the country by the end of 2016. (Read in Arabic)

TOURISM

Hope springs for Egypt’s Arabic language market
Encouraging signs are emerging that show that after having been devastated by four years of political turmoil, the market for international students seeking Egypt as a destination to learn Arabic is poised to rebound. One Arabic language center states that following the Brotherhood’s rise to power, “a lot of European embassies and administrations decided to put Cairo in Amber or Red… No students. We actually nearly went bankrupt.” The article also notes that one of the factors motivating the rebound in Egypt as a destination for Arabic instruction is the unfortunate and ongoing turmoil in other parts of the Arab world. Another language center is seeking to combine tourism with language courses by founding a center in Gouna set to open in July 2016. (Read)

AUTOMOTIVE + TRANSPORTATION

Transport Ministry signs agreement with China Harbour
The Transport Ministry inked an agreement with China Harbour – which won a tender in September to fund, build and operate a multi-purpose port facility in the port of Alexandria – on Saturday, Al Mal reports. The USD 700 mn facility will include a container terminal capable of handling 780K containers per annum, in addition to a river barge terminal and multiple specialized terminals. The agreement is part of a ministry strategy to develop and upgrade ports across the country, said the Minister El Geyoushi. (Read in Arabic)

BANKING + FINANCE

FIHC to list on the EGX in six months -Supply minister
The Food Industries Holding Company (FIHC) is expected to list on the EGX within six months, Supplies Minister Khaled Hanafy said. Beltone is running technical, legal, and financial assessments for the listing are being finalised now to allow for the listing and capital increase. Hanafy added that the capital increase will be used to finance expansions in the company. (Read in Arabic)

LEGISLATION + POLICY

FEI raises objections on the executive regulations of the Mineral Resources Law
Tamer Abu Bakr, who heads the FEI’s Petroleum and Mineral Resources Division, criticized the executive regulations of the Mineral Resources Law, specifically concerning royalties and concession sees, which he deems excessive. He also criticized the different rates set by different governorates as encouraging localized corruption. These regulations also allow the Mineral Resources Authority to form companies that explore and operate mines, which places the regulator in a position to compete with the sector. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

MFA warns Egyptians abroad in Europe to steer clear of “refugee gatherings”
The consulate sector of the Egyptian Foreign Ministry warned Egyptians living abroad in Europe in a statement on Saturday to avoid “refugee gatherings” to avoid possible arrest or entanglement in fights. (Read in Arabic)

** Further reading in Egypt Politics + Economics: Egypt: Reclaiming the Constitution. Former deputy prime minister Ziad Bahaa Eldin argues against the chorus of those already clamoring for amendments to the Constitution. “The prevailing public and media discourse posits an opposition between the Constitution and law, on one hand, and security and stability, on the other. This misconception leads people to believe that abandoning the Constitution or relaxing standards of justice are prerequisites for security … when the Constitution is disregarded, it not only erodes the values of justice and law in society, it also undermines its chances for progress, development, security and stability.” (Read the original in Arabic in Al Shorouk or the translated version in Ahram Online)

NATIONAL SECURITY

Egypt to resume production of M1A1 Abrams main battle tanks: Minister of State for Military Production Mohamed Al-Assar met Thursday with US Ambassador Robert Stephen Beecroft and Donald Schenk, vice chairman of General Dynamics, to conclude an agreement to resume production of M1A1 tanks in Egypt. An unnamed source speaking to Aswat Masriya says that production had allegedly come to a halt due to a lack of components.

Egyptian security forces find and destroy two Gaza tunnels: Egyptian border security located and destroyed a tunnel connecting Gaza’s Rafah City to Egyptian territory, Egyptian security sources told Ma’an News Agency on Friday. The tunnel contained weapons, military clothing and communication devices that were later destroyed by Egyptian security forces. Another tunnel was discovered in Rafah City and subsequently destroyed. (Read)

Mohamed Al-Zawahiri faces new charges of forming terrorist cell: Mohamed Al-Zawahiri, Ayman Al-Zawahiri’s brother, was cleared of charges in what has been referred to as the “Zawahri cell” case, with prosecutors slapping new charges against him accusing him of forming the terrorist groupAlta’efa AlMansoura [The Victorious Sect], Aswat Masriya reports.

** Further reading in National Security: “One of us: the militant Egypt’s army fears most.” Ahmed Hassan has an in-depth profile for Reuters of former Egyptian special forces officer Hisham al-Ashmawy, who went on to join Daesh and who is thought to have been behind the assassination of Prosecutor General Hisham Barakat and the attempted assassination of former interior minister Mohamed Ibrahim. Al-Ashmawy has since left Daesh for Al Qaeda in Derna, Libya. (Read)

REGIONAL

Differing responses of Libya’s militias to the migrant and refugee trafficking crisis: The Washington Post profiles the militia the ‘Black Masks’ in the Libyan port city of Zuwarah, whose mandate includes cracking down on human trafficking by targeting smugglers, following the capsizing of a boat that had left from their shores that resulted in the deaths of at least a hundred migrants and refugees, (Read A Libyan militia confronts the world’s migrant crisis). Vice News, in a lengthy two-part series, explores the very different approach taken by Islamist rebel militia Libya Dawn in Tripoli, who instead of targeting smugglers, have imprisoned the migrants and refugees themselves. (Watch Detained by Militias: Libya’s Migrant Trade, Part 1, running time: 20:23 andKidnapped and Sold: Libya’s Migrant Trade, Part 2, running time: 10:17)

SPORTS

Al Ahly wins Egyptian Super Cup over rivals Zamalek on Thursday
Al Ahly defeated arch-rival Zamalek 3-2 to win the Egyptian Super Cup on Thursday in the UAE, KingFut reports. Al Ahly scored from two penalty kicks in stoppage time of the first half and five minutes into the second half, both converted by playmaker Abdallah Al Saeed. Zamalek went up first, however, when Zamalek winger Omar Gaber capitalized on a deflection off Al Ahly’s Ahmed Fathi to score the first goal of the game in 25th minute. Mo’men Zakaria scored Al Ahly’s third goal in the 65th minute. Kahraba’s goal in stoppage time proved to be too late for the Meet Oqba team to score an equalizer. A fight broke out when Al Ahly’s 19-year-old phenom Ramadan Sobhy stood on the ball, which Zamalek considered a form of mockery. Several reports indicate that this might be Jesualdo Ferreira’s last game as Zamalek manager. On the other hand, Portuguese Jose Peseiro officially signed a one-year contract on Saturday to become Al Ahly’s manager, Youm7 reports. (Watch game highlights here in Arabic, running time 5:03)

ON YOUR WAY OUT

Pre-trial detention of photojournalist Esraa el-Taweel extended: El-Taweel’s detention has been extended until 25 October, the date of her next court session, Al Bawaba reports. El-Taweel disappeared along with two of her friends in June 2015, only to be spotted weeks later in Qanater women’s prison by another inmate. El-Taweel’s family states that she is not receiving the physiotherapy she needs to prevent her spinal cord injury from regressing into paralysis. El-Taweel is accused of belonging to the Muslim Brotherhood and of spreading false news. (Read)

Customs officials foil attempt to smuggle rare manuscripts to Qatar: “A total of 31 rare manuscripts, personal photos of Arab leaders and wedding contracts dating back to the early 1900 were seized while finalizing exporting procedures for an import and export company shipping the items to Qatar,” according to an unnamed source at Badr City customs authority speaking to Youm7. (Read in Arabic or the translated version in the Cairo Post)