Just how much aid is coming in from KSA? We parse the statements and do the math.

TL;DR

Just how much aid is coming in from KSA? We parse the statements and do the math. (Speed Round)

U.S. Fed raises interest rates for the first time since June 2006. Quarter-point rise presages future rate hikes, the Fed suggests. Also: The CBE’s Monetary Policy Committee meets today. (Speed Round)

Tahya Masr isn’t a shakedown of business, El Sisi says, saying business leaders should take comfort from the law + constitution (Speed Round)

Finance Ministry denies it’s backing off plans for value-added tax (Speed Round)

The Israeli content requirement for QIZ projects wasn’t lowered as part of spy swap (Speed Round)

Can the market support 10 IPOs in 1H2016? (Speed Round)

Saudi’s Al Othaim Markets to expand into Egypt in 1Q2016 (Speed Round)

17 new ambassadors present credentials at Ittihadiya (Speed Round)

Emirates adds three weekly flights to Egypt (Tourism)

By the Numbers + CBE data confirms NIR “makeup” strategy

WHAT WE’RE TRACKING TODAY

US Fed hikes rate for first time since 2006: US stock markets responded positively to the US Federal Reserve’s decision to increase the cost of borrowing for the first time in more than six years, after having held rates at nearly zero for the past 7 years. Analysts are calling the move a “show of confidence” in the American economy. The Fed raised interest rates by 25 basis points and indicated it was the beginning of a gradual increase. Reuters quotes Huntington Wealth & Investment Management Chief Investment Officer as saying the move “gave [U.S.] savers a little bit more interest, investors a little bit more confidence in the economy, businesses a little bit more expectation of inflation.” The FT has a thorough and highly readable explanation on what the rate hike means for the American and UK economies, as well as the potential impact on emerging markets, and for its once it’s not buried behind their paywall. The FT notes: “a stronger USD, backed by higher US interest rates, tends to depress the values of emerging market currencies at a time when many EM economies are already weakening and their currencies have already slumped against the greenback. The Fed’s rate rise could exacerbate the EM currency turmoil, and even help precipitate a full-blown crisis.”

The Central Bank of Egypt’s Monetary Policy Committee meets today to review interest rates for the first time since Tarek Amer became Governor. The gathering will be preceded by a meeting of the Coordinating Committee meant to allow cabinet members to harmonize fiscal and economic policies with the central bank’s monetary policy. Analysts largely say the outcome of the MPC meeting is too close to call; Reuters says three of the economists it surveyed expect rates to be held and two expect a rate hike.

WHAT WE’RE TRACKING THIS WEEK

Trade and Industry Minister Tarek Kabil is representing Egypt at the Tenth WTO Ministerial Conference taking place this week until Friday in Nairobi. Kabil has reportedly requested that the Arab League be granted observer status in the WTO.

The US Congress is set to vote on its omnibus spending bill (pdf) on Friday, including provisions on military and economic assistance to Egypt. The bill allocates USD 150 mn in economic aid, of which USD 35 mn must be set aside for higher education programs, USD 10 mn of which should be in the form of scholarships at non-profit universities for Egyptian students with financial need. The economic assistance portion of the aid may also be used to fund democracy programs as well as economic development of the Sinai. Egypt is also set to receive USD 1.3 bn in military aid under the Foreign Military Financing (FMF) program. While the aid is once again conditioned on Egypt demonstrating it is taking steps to “advance democracy and human rights,” the bill also features the oft-used US Secretary of State’s discretionary waiver of those requirements on the grounds of US national interests. The section on Egypt runs from page 1314 to 1318.

Temperatures are expected to drop into the single digits in Cairo on Saturday and Sunday, while Alexandria can look forward to rain from Friday through Monday.

ON THE HORIZON

We’re still waiting for President Abdel Fattah El Sisi to announce when the newly elected House of Representatives will convene for the first time; it will be the first time a parliament convenes in Egypt in nearly three years. First, El Sisi must name the 28 MPs he is constitutionally mandated to appoint. Analysts expect that parliament will hold its session by month’s end.

Also expected by the end of the month: El Sisi is expected to launch the 1.5 mn feddan land reclamation project from the Farafra Oasis and with olives trees. The kick-off will be by the end of the month.

LAST NIGHT’S TALK SHOWS

All of the talk shows opened last night with the same coverage: The story of Egyptian Army soldier Mohamed Ayman who threw himself on a terrorist wearing an explosive belt to protect his squad from an attack. Ayman died immediately, and his story was used to draw a comparison between what many TV presenters referred to as the “values of the armed forces” versus “our values.”

Khairy Ramadan on CBC compared Ayman to other young men spending their time on their mobile phones: “There are few young men in Egypt who want to organize a kissing festival. Yes, as you heard me, kissing festival. Other brave men like Ayman are protecting us. How do you think they feel when they read this kissing nonsense?” A member of the audience then called in to pledge EGP 100k in assistance to the dead soldier’s family.

Ramadan hosted renowned thinker Youssef Zidan whose controversial comments about when Al Aqsa mosque in Palestine was build were met with sheer criticism from religious scholars.

Minister of Investment Ashraf Salman called in to give details on the Egyptian Saudi Coordination Council meetings that took place on Tuesday. Salman explained that the kingdom will supply Egypt with petroleum products for five years, with no payments in the first two years.

Salman also confirmed that the SAR 30 bn figure the Saudi side discussed yesterday is all new investment. He said that Saudi sovereign wealth funds have agreed to prioritize four sectors: tourism, real estate, energy and agriculture. “The two countries may settle on establishing a holding company that received the SAR 30 bn and start implementing those projects,” the minister confirmed.

On Al Kahera Wel Nas, Ibrahim Eissa started the show with a question related to the Armed Forces martyr saying “Will this sacrifice changes our perspective of things? His sacrifice should be a wakeup call for us, and we need to live our lives up to that level.” Eissa then moved to mention the top ten things Egyptians searched Google for, mostly songs and Youtube clips, and concluded “I’m giving you an insight to what Egyptians think about and how their culture is formed.” (You can explore for yourself the Google Trends lists of search terms by country here.)

Amr Adeeb was off yesterday over at Al Qahera Al Youm, with co-host Rania Badawy doing the Wednesday night duty, as she often does. Badawy talked about the sacrifices of the armed force and then moved to introduce an old interview of former foreign minister Ahmed Aboul Gheit by Amr Adeeb.

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SPEED ROUND

Naguib Sawiris is making a play for CI Capital. Naguib Sawiris is making a run at CI Capital, a leading Egyptian investment bank and wholly owned subsidiary of CIB, according to sources speaking to Al Borsa. The newspaper says Sawiris’ bid would be in the EGP 1 bn range. Sawiris has been since last month the largest shareholder in Beltone Financial; CI Capital would give him the nation’s second-largest brokerage operation and a high-profile investment banking unit. Al Borsa claims CIB hasn’t ruled out a possible sale and notes that the nation’s largest private-sector financial institution recently divested insurance arm CIL to AXA. Al Borsa broke news of the CI Capital bid early this morning.

So just how much new aid is coming in from KSA? Over the past two days, the Ismail cabinet has struggled to effectively communicate the outcome of the second Egyptian Saudi Coordination Council, allowing cabinet members to talk individually to issues of interest rather than issuing a unified statement. Here’s a recap of what we know and what we don’t:

• King Salman has ordered authorities in the kingdom to supply Egypt with oil products for the coming five years. Aswat Masriya reported that both countries agreed that Egypt will sign a five-year contract with Saudi oil giant Aramco to provide Egypt with petroleum products. Investment Minister Ashraf Salman called-in to talk shows last night to confirm Egypt will make no payments in the first two years of the program. Al Shorouk says Egypt requires 500k tonnes of diesel, 300k tonnes of butane gas, 150k tonnes of gasoline, and 500k tonnes of fuel oil each month.
• The Kingdom said it will invest in Egypt, and Salman confirmed yesterday that the full SAR 30 bn bandied is new investment (the initial Saudi Press Association release was not clear on that point). The minister said Saudi sovereign wealth funds will prioritize investing in tourism, real estate, energy and agriculture and suggested a new holding company might oversee the investments
• Saudi will make good on the remaining USD 2 bn from the sum it pledged at the EEDC in March, Aswat Masriya reports. USD 750 will go to import machinery for the 1.5 feddans land reclamation project, smart home electricity meters, and supporting the manufacture of a Hepatitis C drug. Another USD 750 mn will arrive in the form of soft loans to fund Egyptian government development projects in the fields of education, health, energy, and infrastructure. Egypt will receive a further USD 500 mn, but the government official with whom Aswat Masriya spoke refused to give more details.
• Egypt and Saudi have reached a preliminary agreement that the kingdom will deposit a total of USD 1.5 bn at the Central Bank of Egypt in three lump sums over 18 months, but Aswat Masriya says further talks will take place on this front.
• Bloomberg reported yesterday that Saudi might consider buying into Egyptian debt as an alternative to deposits at the CBE.
• KSA will “support the traffic in the Suez Canal with the transit of Saudi ships.”

Administration’s GCC charm offensive continues: Egypt will seek new USD deposits from Kuwait and will open talks that could see the emirate buy Egyptian bonds, International Cooperation Minister Sahar Nasr said at a press conference yesterday. The minister is expected in Kuwait for talks on Friday, Al-Mal reports.

Abdullah Al Othaim Markets announced it is expanding in Egypt and expects to begin commercial activity in 1Q2016, according to a bourse statement. The company will inject the equivalent of SAR 114 mn over the next three years in opening stores in Egypt and, according to the business plan, expects to be generating operating profits by 3Q2017. It had already established a subsidiary in Egypt in 2011, but has not yet engaged in any commercial activity in the market since entering. Al Othaim “found that the current opportunity and the economic conditions of the Egyptian market is favorable and encouraging in light of the continued growth in the population and increasing demand for goods and services.” We reported that Al Othaim said it was considering starting a supermarket chain in Egypt back in January.

A two-step on the VAT? It looked for a little while yesterday as if we weren’t having a VAT after multiple news reports that the Finance Ministry is now considering alternatives to implementing the value added tax (VAT). Al Shorouk broke the news, reporting that no date for the implementation of the tax has been set and, even if it is approved by the incoming parliament soon, it will not be able to generate the expected revenues for the current fiscal year. Close to midnight, the ministry issued a statement saying that dropping the VAT is not an option — the enabling legislation will be at the top of the House of Representatives’ agenda when it convenes. The FY2015-16 budget projects EGP 98.5 bn in VAT revenues. Al Shorouk says the government still fears the inflationary impact of implementing the new tax regime.

El-Sisi to business: Tahya Masr isn’t a shakedown: Speaking at a meeting with the Federation of Egyptian Investors yesterday, President Abdel Fattah El-Sisi told investors that no business is being compelled to donate to Tahya Masr. The president notes that no step may be taken to seize a businesses’ funds other than those steps already enshrined in law or granted to the government by the constitution, Al-Mal reported, citing a briefing it received from Muharram Helal, deputy head of the Federation of Investors.

QIZ terms were not amended, Mohamed Kassem, the head of the Readymade Garment Export Council, told Al Mal. Kassem is denying in the Times of Israel saying that Israel agreed to reduce the minimum Israeli component in QIZ output to 8.5% from the current minimum of 10% as part of the Ouda Tarrabin prisoner swap agreement. He added that reducing the minimum component is a longstanding Egyptian demand and he hopes it materialises.

IPOs in 1H2016? Maybe, but don’t expect to raise on the same scale as this year’s larger offerings. EGX chief Mohamed Omran said earlier this week he thinks the market can support 10 IPOs in the first half of the new year. Al Borsa checked in with the market, and found there was very guarded optimism, saying it may be possible, but the conditions will be extremely strained conditions. Capital markets can support the move, but only if the transactions are on a smaller scale, said EFG Hermes Head of Investment Banking Ahmed El Guindy. He adds that IPOs north of USD 100 mn will have a hard time getting traction given the current outlook for next year. Prime Holding’s Mohamed Maher is betting that better market conditions might see relative improvements on the back of the completed political road map. He added that with competition for capital intensifying, only companies with the best fundamentals will see their IPOs take off. Beltone Financial said that it is delaying transactions in its pipeline until market conditions improve, which it hopes will happen next year. Egyptian Financial Supervisory Authority chief Sherif Samy is quoted as hinting that delaying IPOs may be a prudent decision with current valuations and trading volumes.

Suez Canal receipts fell 9.1% month-on-month in November to USD 408.4 mn, the lowest level since February, Reuters reported.

While we quibble with its take on the five challenges faced by the incoming House of Representatives, Ahram Online — unlike much of the domestic Arabic-language press — gets credit for remembering that we’re about to have a parliament for the first time in more than three years. At the top of reporter Ayat Al Tawy’s list is the (rather slim) threat that parliament could be dissolved if constitutional challenges are lodged on the basis that it isn’t fully representative as prescribed by the 2014 Constitution. Of more concern is the reminder that the House will have 15 days in which to ratify all legislation passed since January 2014. Our take is that the legislation will be covered in an up-or-down vote, not by individual review of more than 200 individual acts. The other challenges Ahram Online identifies include lack of a clear parliamentary opposition bench, potential conflict over formation of a cabinet (representatives are required to “endorse” the current Council of Ministers within a month of taking their seats), and the choice of a Speaker of the House.

Egypt shut out of Middle East solar power industry awards: A decisive commitment to renewable energy was a hallmark of Egypt’s energy policy this year, but the jury for the Middle East Solar Industry Association skipped Omm El Donia in its annual industry awards. The Dubai Electricity and Water Authority (DEWA) won for policymaker of the year and utility company of the year, while ACWA Power took home the award for utility scale solar power project of the year for projects in Morocco. The full list of winners is here.

Arab tourism ministers confirm direct flights to Sharm, support for Egypt and Tunisian industries: Supporting the battered tourism industries of Egypt and Tunisia was a key area of concern at the 18th session of Arab Ministerial Council for Tourism held in Sharjah, which began on Tuesday and is set to conclude today, according to KUNA state news agency. In the past month, Kuwait, Saudi Arabia and the UAE have demonstrated their support to Egypt’s tourism industry by rolling out direct flights to Sharm El Sheikh. Minister of Tourism Hisham Zaazou signed an agreement with the UAE’s Minister of Culture, Youth and Community Development Sheikh Nahyan bin Mubarak to facilitate tourism between the two states, The National reports, without delving into details, other than that the agreement “would promote cooperation in the field of sustainable tourism development, especially rural, cultural and marine.”

Meanwhile, King Tutankhamun’s gold mask is finally back on display at the Egyptian Museum in Cairo after nearly two months of restoration work, as unveiled in a press conference on Wednesday, the AFP reports. The beard is thought to have broken off sometime in late 2014 by museum workers, who hurriedly attempted to repair the damage with epoxy.

Administrative Prosecution Office (APO) collected USD 5.9 mn in overdue payments and fines owed by tourism sector investors to the Tourism Development Authority, according to issued by the APO’s investment cases unit. The prosecutor said an investigation of the tourism sector found that investors in the North Coast, Sinai, and Red Sea had not completed payments on land acquired from the TDA. These incomplete payments totaled USD 5.1 mn, Al Borsa reports, saying the APO also netted fines of USD 850k. The move suggests bureaucratic jockeying given it is rare the APO issues statements — and that the Ismail government has been very clear that it is looking for ways to support the ailing tourism industry amid lingering fallout from the Metrojet disaster in Sinai.

Army permits required for renewable energy projects in Aswan: Solar energy investors were told by the head of New and Renewable Energy Authority (NREA) Mohamed El Sobky that they must now obtain permits from the armed forces to operate their feed-in tariff projects in Benban, Aswan. Investors in the renewable energy projects must pay and apply for licenses to the Armed Forces’ Operations Authority, a process that could take 1-3 months, El Sobky told Al Borsa, adding that NREA will help them navigate the process. The news puts added pressure on the 39 companies — who thought their bureaucratic obligations complete — that face deadlines of October 2016 to complete build-out of their projects. These companies are already dealing with what they describe as a security threats and a lack of infrastructure.

Seventeen new Ambassadors to Egypt, including Germany, Tunisia, and Ireland, presented their credentials to President Abdel Fattah El Sisi. According to the official readout from Ittihadiya, they include:

• Chile: Mr. Fernando Zalaquett Sepulveda
• Gabon: Mr. Guy Roger Nze
• Germany: Mr. Julius Georg Luy
• Ireland: Mr. Damien Cole
• Malawi: Ms. Caroline C.S. Bwanali – Mussa
• Mali: Mr. Mamadou Mangara
• Mauritius: Dr. Abdool Aniff Sorefan
• Mongolia: Mr. Chuluun Bayarmunkh
• Norway: Mr. Sten Arne Rosnes
• Paraguay: Mr. Nelson Alcides Mora Rodas
• Philippines: Mr. Leslie J. Baja
• Portugal: Ms. Maria Madalena Lobo Carvalho Fischer
• Rwanda: Mr. Sheikh Habimana Saleh
• Senegal: Mr. Talla Fall
• Tunisia: Naguib El-Manief
• Uruguay: Mr. Juan Jose Di Sevo Moreno
• Vietnam: Dr. Do Hoang Long

President El Sisi directed Supply Minister Khaled El Hanafi to form a government committee to make it easier for retailers to obtain licenses. The meeting reviewed the partnership between the Supply Ministry and retailers—who agreed to be supplied by the ministry in exchange for lowering prices on essential goods. The President also encouraged retailers to expand outlets nationwide, particularly in Upper Egypt, and to continue to help curb price inflation, Al Mal reports.

The Ismail Cabinet held its weekly meeting on Wednesday, There was no word of whether Cabinet discussed the draft media regulation bill, which we noted on Tuesday was to have featured prominently on their agenda. Key decisions at the meeting include:

• Ratifying amendments to the Tenders and Auctions Act that allow the government to withhold advance payments to encourage project-financing through the private sector; lowers initial bid security deposits to 1.5% of the bid offer and extended the deadline to pay the full security deposit; 10% of projects offered by the government will be allocated to SMEs; preferential selection will be given to SMEs if their bids match those of larger companies;
• Amending the Investment Incentives and Guarantees Act to end issuing licenses for energy-intensive projects under the special free zones system; only projects which received approval before 13 March 2015 can continue to operate in special free zones until their licenses expire; production inputs are to be sourced locally (Read in Arabic);
• Amending the Illicit Gains Act (corruption law) to expand its scope to cover heads of government institutions and political parties and to allow for reconciliation and settlement of cases through the repayment of funds with interest and a 2% fine on top of the interest; (Read in Arabic)
• Approving recommendations from cabinet’s investor disputes group on 8 November concerning disputes between government bodies and companies in the maritime transport, cement, tourism, investment, and the import/export sectors;
• Appropriating land in East Kom Ombo and Toshka for the 1.5 mn feddan project.

Abraaj frontrunner for Saudi supermarket chain Al Raya stake -sources: Abraaj is rumored to be in the lead for buying a majority stake in Saudi supermarket chain Al Raya, according to unnamed sources speaking to Reuters on Wednesday. In a transaction thought to be valued at USD 300 mn, Abraaj is thought to have overtaken PE firm Apollo Global Management, with parties hoping to conclude an agreement before Abraaj’s period of exclusivity runs out by the end of the month. Representatives from both Abraaj and Apollo declined to comment to Reuters on the story.

Yahoo Middle East is planning on closing its Dubai office, putting up 50 jobs at risk, Gulf Business reported. The Internet City-based office will be closed by April 2016 in a bid to streamline international operations. The company opened its Dubai office in 2009 after acquiring Maktoob.com for USD 164 mn and has already closed its Middle Eastern offices in Amman and Cairo.

Gunmen in Iraq have kidnapped at least 27 Qatari hunters, including members of the Qatari ruling family, in a desert area near the Saudi border, BBC reported. “The attackers were driving dozens of four-wheel drive vehicles when they swept into the hunters’ camp at dawn on Wednesday, officials said,” as per the BBC. In response, Qatar’s Foreign Ministry said it is working with Iraqi government to release the kidnapped Qatari nationals “as soon as possible” and that they were hunting with official permission from the Iraqi interior ministry. “The hunters had been escorted by Iraqi security forces but they decided not to engage a large number of gunmen,” a police colonel said. 9 of the kidnapped Qataris were freed by their attackers before midnight, Al-Arabiya reported, while it is not clear why the rest weren’t.

Pakistan, Malaysia and Indonesia learn of their participation in Saudi Arabia’s 34-state “Islamic coalition” against terror by reading about in the press: Pakistan, Malaysia and Indonesia stated on Wednesday they were never formally informed of agreed to their inclusion in the coalition of Muslim-majority states announced by Saudi Deputy Crown Prince Mohammed Bin Salman on Tuesday, the BBC reports. Malaysia has gone a step further by stating they will not engage in any military operations, and that their understanding of the coalition is that its primary function is to combat militancy.

Another crumbling BRIC. Brazil’s bourse was battered yesterday when a second ratings agency downgraded the once high-flying EM economy to junk. Fitch Ratings cut Brazil’s sovereign ceiling to BB+ from BBB- citing “the economy’s deeper recession than previously anticipated, continued adverse fiscal developments and the increased political uncertainty.” There’s wall-to-wall coverage this morning in Bloomberg, the WSJ and the Financial Times.

EGYPT IN THE NEWS

The Wall Street Journal’s Rory Jones and Summer Said cover the freezing of natural gas talks between Egypt and Israel. “Israel needs Egypt … It will be a big buyer and it is a door to other markets in Europe, so Egypt can use this as a card to avoid paying compensation,” a source close to the Egyptian government said. Alternatives for Israel could be to export the gas to Turkey and Europe, “but there are no [other] practical ways currently to transport the gas,” Robin Mills, head of consulting at Manaar Energy says. Mills says Israel’s conundrum is that Egypt presents it with its only accessible market at the moment.

WORTH WATCHING

Researchers are developing a bomb-proof bag to hold luggage in cargo holds of airplanes, as demonstrated in this Reuters video. (Watch, running time: 1:36)

Your garage band was never this good: Kids cover 46 and 2 by Tool / O’Keefe Music Foundation. You don’t need to be a fan of either Tool or children in general to thoroughly enjoy this. (Watch, running time: 7:01)

ENERGY

Siemens’ power plants will require 2.250 bcf of gas per day, EGAS source says
The new power plants being built by Siemens will require a natural gas supply of 2.250 bcf per day to run, a source at EGAS told Al Shorouk. The first of the plants is expected to become operational in September and will require a gas input of 750 mcf per day. In total, three power plants will be built and are expected to begin operations in 3Q2016. (Read in Arabic)

EGPC renews USD 1 bn Aramco petroleum derivatives contract
The Egyptian General Petroleum Company (EGPC) has reached a final agreement over renewing Aramco’s contract to supply Egypt with fuel products, sources within EGPC tell Al Mal. 2.5-2.7 mn tonnes of petroleum derivatives will be imported to meet domestic market demands for 1Q2016, as per the new agreement. Egypt had signed signed a USD 1.4 bn agreement with Aramco that expired in November and was working to extend it to December. (Read in Arabic)

Gov’t to build petroleum product trading terminal in Ain Al Sokhna
EGAS and the Arab Petroleum Pipelines Company (SUMED) inked an USD 324 mn agreement to build a petroleum product terminal in Ain Al Sokhna. The project includes building a pier as well as several storage warehouses at the port. The project will be built over two phases, the first will handle LNG trading and should be ready for operations by 1Q2017. Phase two will involve building butane and mazut facilities and are expected to be completed by 2Q2018. (Read in Arabic)

BASIC MATERIALS + COMMODITIES

Juhayna subsidiary to build milking facility for 4k cows in 1Q16
Al Enmaa for Agriculture Development & Livestock Company — Juhayna Food Industries’ livestock and agricultural arm — plans to build in 1Q2016 a new milking facility capable of handling a 4,000-strong herd. The acquisition of cows for the facility could cost as much as EGP 75.6 mn, said Al Enmaa chairman Akil Bashir. The move is part of Juhayna’s EGP 400 mn plan to raise its production capacity to 80 ktons of milk per annum in 2015 and 2016, in part, through importing 8K cows. (Read in Arabic)

MANUFACTURING

Chemicals Export Council looking to hire consultant to create export strategy
The Chemical and Fertilizers Export Council is currently choosing between consultants to place a new general strategy for all export councils, said Council head Khaled Abu El Makarem. Abu El Makarem says the council already met with a local practice and an international one and will be meeting with a third candidate next week. The restructured strategy will revise subsidies and the council aims to grow exports by 25% by organizing several promotional and marketing campaigns in 2016. (Read in Arabic)

TOURISM

Emirates adds three weekly flights to Egypt
Emirates said it will add three new weekly flights between Dubai and Cairo starting from next year. “The new service will supplement the current twice daily Boeing 777-300ER flights, taking the total number of flights serving Cairo to 17 each week,” Gulf News reports. The new flights will be operated with Airbus A330-200 aircrafts and will boost the number of connection options on offer. (Read)

TELECOMS + ICT

NTRA to issue regional ADSL licenses early next year
The National Telecommunications Regulatory Authority (NTRA) confirmed that it will issue regional ADSL tenders in two months. These tenders will provide licenses for companies to provide ADSL services in governorates across the country, in a bid by the NTRA to improve the quality of service, said NTRA head Mustafa Abdel Wahab. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Transport Ministry asks China Harbour to switch the multipurpose facility project to a public-private partnership system
The Transport Ministry requested that China Harbour switch the multipurpose facility project at Alexandria Port to one of the public-private partnership systems. The USD 700 mn (reported as USD 800 mn in Al Borsa) is being financed by a five-year loan from the Export-Import Bank of China at 2.5% interest. China Harbour is considering the switch, said the Transport Ministry’s spokesperson Ahmed Ibrahim. Meanwhile, the Transport Ministry received a number of offers, including one from Kuwait’s Al Kharafi Group, to operate Dock 55 of Alexandria port, which will be part of China Harbour’s multipurpose facility project. (Read in Arabic)

BANKING + FINANCE

USD 3.2 bn AfDB loan as part of 2016-2019 strategy
The African Development Bank (AfDB) has greenlit USD 3.2 bn in loans to Egypt as part of cooperation strategy with Egypt that extends into 2019, sources told Amwal Al Ghad. As we reported yesterday, AfDB agreed to issue a USD 500 mn facility before the end of the year. The new strategy between the Ministry of International Cooperation and AfDB is to direct the loan into infrastructure development and governance, with a committee following up on the strategy’s implementation. (Read in Arabic)

LEGISLATION + POLICY

Parliament should make capital inflows and outflows easier, says Sawiris
The new parliament must draft a law that will facilitate the USD cash flow for foreign investors, said Naguib Sawiris. “Investors must be able to take foreign currency out if they bring it in,” he said. Egypt’s economic crisis is not caused by the strength of the USD relative to the EGP, Sawiris says, but by the FX shortage in the country, which slows down industry and commerce and forces businessmen to resort to the informal market. (Read in Arabic)

LAW

NREA to hire legal consultant to establish Egyptian-Emirati energy company
The New and Renewable Energy Authority (NREA) and UAE’s Masdar are in the process of hiring a legal advisor to establish an Egyptian-Emirati energy company by next week. Al Borsa says three law practices are being considered: Sharkawy & Sarhan, Sarie-Eldin & Partners, and Eversheds Consulting. The group aims to build a 200 MW wind farm in the Gulf of Suez, sources within the NREA said. The total cost of the project is estimated at around USD 250 mn, of which the AfDB has agreed to finance the NREA’s share of around 15-20%. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Al Wafd seeking chairmanship of six parliamentary subcommittees
Al Wafd will be fielding candidates to chair six parliamentary subcommittees, Al Shorouk reported. According to Mohamed Fouad, an MP-elect, Al Wafd has its eyes specifically on the Health, Housing, and Industry subcommittees. He added that Al Wafd is not coordinating its parliamentary actions with the Free Egyptians party but will begin liaising with the Egyptian State Support coalition. (Read in Arabic)

Interior Ministry refutes Amnesty report, says child in custody was not assaulted
The Interior Ministry refuted Amnesty International’s report that a 14-year old boy in police custody was [redacted] assaulted using a wooden stick. A Ministry source told Al Ahram the child was examined medically and Amnesty’s claims were found to be untrue. The source added that medical examiners also found no evidence that he was physically tortured while in custody. (Read in Arabic)

Cairo Governorate refuses to renew public ad space licenses, ad agencies to sue
Cairo Governorate is refusing to renew licenses for billboard advertising on public land from December 31 onwards, driving the advertising division of the Federation of Egyptian Industries to a state of uproar. The division plans to sue Cairo Governorate in response, according to a press conference held by the advertising division. Advertising agencies were caught unaware and were shocked when instructed by the regional government to take down their billboards at their own expense. The move by the Cairo Governorate was made to but advertising space up for auction, Al Borsa reports. Advertising spending reached EGP 1.3 bn last Ramadan. (Read in Arabic)

ON YOUR WAY OUT

Egyptian actress Menna Shalaby won the nod for Best Actress at the Dubai Cinema Festival yesterday on her film Nawara. Menna spoke about her character in the film, which she says represents a social class in Egypt. (Run time: 3:05)

Moviegoers in Cairo were treated to an unpleasant surprise on Wednesday when the IMAX theater reported its IMAX copy of Star Wars: The Force Awakens was corrupted and were awaiting to receive a new copy from Disney. The movie did screen in regular 3D format.