Who’s in and who’s out in today’s cabinet shuffle?

TL;DR

Cabinet shuffle to be announced today, PM says. (What We’re Tracking)

Central bank hikes rates by 150 bps. (Speed Round)

CBE expects USD influx + Moody’s says devaluation is credit positive. (Speed Round)

Transport Ministry cancels China Harbour MoU for Alex multi-purpose facility. (Speed Round)

EFG Hermes is selling its stake in Crédit Libanais. (Speed Round)

Eni to raise EUR 7 bn by selling stakes in recent discoveries, including Zohr. (Speed Round)

Electricity minister meets Toyota delegation to talk energy project MoUs. (Energy)

GASC cancels rice import tender after prices reach record EGP 5,200 per ton. (Basic Materials + Commodities)

Cement manufacturers scale down production up to 80% to boost prices. (Manufacturing)

SODIC ready to participate in administrative capital projects. (Real Estate + Housing)

4G data services to launch by year’s end, CIT minister says. (Telecoms + ICT)

By the Numbers

WHAT WE’RE TRACKING TODAY

Cabinet shuffle to be announced today:  At a meeting with MPs from Gharbaya governorate on Saturday, Prime Minister Sherif Ismail acknowledged publicly for the first time that a cabinet shuffle is coming, AMAY reports. Ismail is expected to announce the cabinet shuffle today, state-run Al Ahram reports. The prime minister is said to have considered some 30 candidates to replace the ministers of investment, finance, education, justice, transport, irrigation, tourism, with some outlets reporting that the health minister will also be replaced. The list of new ministers will be sent to the president for final approval today, with the swearing in ceremony set to take place this coming Tuesday. The new cabinet’s first meeting will be held on Thursday, three days before a plan is expected to be presented to parliament, Al Borsa reports.

Frontrunners include financial services veterans Amr El Garhy for finance and Nevine El Tahri for investment. Former MP Hossam Badrawi (an MD with a longstanding interest in education) is said to be in the running for education, with Adel El Shorbagy said to be a in line to become the next minister of justice. Amr El Ganainy is reportedly favoured for tourism and Tarek Kotb for irrigation, while former Transport Minister Alaa Fahmy may reprise his post. Al Ahram also raises the possibility that the finance portfolio might be merged with planning under Ashraf Al Araby.

EEDC one year later: Salman’s final report to Ismail? Investment Minister Ashraf Salman sent Prime Minister Sherif Ismail a progress report on the EEDC agreements, almost one year since their signing, state-owned Al-Ahram notes. In it, Salman attests that four oil and gas concession agreements worth USD 21 bn are in the implementation phase. Four power agreements worth USD 9.5 bn are also currently being implemented, including the Siemens power plants, and an agreement to overhaul the national grid with the State Grid Corporation of China. Four MoUs in investments in real estate, housing, and tourism have been translated into concrete agreements.

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CBE Governor Tarek Amer is meeting with the heads of banks today to discuss developments in the FX market, Al Borsa says.

Egypt aims to conclude a five-year petroleum supply agreement with Saudi Arabia today at the fifth meeting of the Egyptian-Saudi Coordination Council. The gathering is also expected to see talks resume on funding for SMEs via a USD 200 mn grant from the Saudi Fund for Development, according to a statement from International Cooperation Minister Sahar Nasr carried by Al Borsa. The Daily News Egypt adds that in addition to USD 1.5 bn in Saudi funding for Sinai development, talks will also focus on as much as SAR 450 mn to upgrade Kasr El-Ainy hospital. The meeting had been postponed twice.

WHAT WE’RE TRACKING THIS WEEK

AmCham is holding its Women in Business: The Key to Economic Growth summit on 22 March. The conference will also announce the regional winners of the fourth AmCham MENA Council Women Awards. You can register for the summit here.

The Africa CEO Forum, Sofitel Abidjan Hotel Ivoire, Abidjan, Ivory Coast is taking place from 21-22 March.

Microfinance Egypt follows right after from 23-24 March at the Nile Ritz-Carlton, Cairo on how microfinance institutions can navigate a new operating environment.

ON THE HORIZON

Saudi Arabia’s King Salman is said to be making a visit to Cairo on 4 April for talks with senior Egyptian officials including President Abdel Fattah El Sisi, according to a statement from the Saudi Embassy in Cairo.

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SPEED ROUND

The CBE’s Monetary Policy Committee (MPC) raised rates by 150 basis points at its meeting on Thursday, upping the overnight deposit rate to 10.75% from 9.25% and the overnight lending rate to 11.75% from 10.25%, according to a statement. The raise was 50 bps higher than the pre-meeting consensus as the central bank looks to curb inflation after devaluing the EGP last week. “The CBE’s monetary policy will be geared toward maintaining price stability by avoiding double digit inflation rates over the medium-term to maintain real incomes,” according to the statement. The increase, albeit widely expected, was higher than anticipated: “All 10 contributors to a Reuters poll had predicted the MPC would hike rates to defend the [EGP] following the devaluation, with forecasts ranging from a 50 basis point hike to a hike of 100 basis points,” according to Reuters.

The CBE kept the FX rate stable at EGP 8.78 per USD 1 in its regular auction on Thursday, Reuters reported. Banks are selling USD at EGP 8.8794, according to the CBE.

…The CBE is expecting an influx of USD, sources told Al Masry Al Youm. The central bank says it has received pledges from international fund managers to invest in Egyptian treasuries in USD and also inject USD into the country through converting them into EGP and depositing them in banks to benefit from the higher interest rate. CBE Governor Tarek Amer has guaranteed the funds’ managers that they will be able to repatriate their investments. On a related note, a brief mention at the end of a FastFT report on how Citi is “getting properly bullish” on emerging markets notes the bank’s suggestion that investors look at Egyptian USD bonds.

Speaking of the devaluation: Moody’s says the move is credit positive for Egypt as it helps bridge the gap between the official and the parallel market, according to a statement. “This will limit the need to spend foreign exchange reserves to support a higher currency value and is likely to boost exports and foreign investment inflows. These positive results should outweigh the near-term negative effect from devaluation-induced inflation.”  A weaker currency along with the lift on FX cash deposits and withdrawals will improve trade competitiveness and help revive economic activity and investment, according to the statement.

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Eni to raise EUR 7 bn by selling stakes in recent discoveries, including Zohr: Eni plans to cut capital spending by 21% to EUR 37 bn and slash its exploration budget 18% by 2019, said the company in its 2016-2019 strategic plan (pdf) on Friday. The company is also planning to raise EUR 7 bn “mainly through the dilution of our stakes in recent and material discoveries” and save EUR 6 bn in renegotiations of long-term contracts. Both Reuters and Al Mal are expecting that the sale will include portions of Egypt’s Zohr field. Reuters had noted last month that Eni would invest USD 12-16 bn in developing Zohr and that it had invested USD 4 bn in the field’s first phase development. The sale and cuts are meant to make the company even more exploration-driven while propping up dividends. An EGPC officials tells Al Mal that company had not notified them of any plans to reduce investments or divest part of its stake in Zohr. Eni has a fairly longstanding pattern of selling down its stakes in large fields once reserves are proven.

EFG Hermes to sell its stake in Lebanon’s Crédit Libanais in USD 492 mn transaction: EFG Hermes’ board of directors has approved the. sale of a 40% stake (or about 9.4 mn shares) in Lebanon’s Crédit Libanais bank for USD 33 per share. Reuters reports that the sale is expected to be completed by 30 June and that shares “will be sold to Arab and Lebanese investors and is subject to approval from the Lebanese central bank.” The transaction values EGG Hermes’ full stake in the Lebanese lender at c. USD 492 mn, with Bloomberg says the investment bank will sell the remaining 5.5 mn shares it holds by May 2017 at the same price via an underwriting agreement guaranteeing the sale. EFG Hermes’ regulatory filing on the sale is here. The investment bank owns a total of 63.7% of Crédit Libanais.

Cheesemaker Domty’s public offering will close with a 6x oversubscription rate after the company’s offering to retail investors in Egypt closed on Thursday 10.7x oversubscribed. The company had offered 12.25 mn shares in the Egyptian retail offering, but received requests for 131.305 mn, Reuters said. Sources close to the transaction tell us the offering as a whole was 6x oversubscribed, with demand for 739.0 mn shares against the 122.5 mn on offer (12.25 mn shares were allocated to Egyptian retail investors and 110.25 mn were earmarked for international institutional investors). As we reported last week, the international offering was 5.5x oversubscribed. Shares are priced at EGP 9.20 per (at the top end of the indicative range on which Domty had guided) and are due to begin trading on Tuesday, 22 March, under the ticker DOMT. EFG Hermes Investment Banking is sole global coordinator and bookrunner, Baker & McKenzie is international counsel, and Matouk Bassiouny is local counsel. Akanar Partners is financial advisor.

Separately, Domty inked an agreement to export products valued at USD 4 mn annually to Russia, announced managing director Omar El Damaty. The company is also negotiations for a second agreement valued at USD 8 mn annually to a second Russian company, he added, noting that negotiations should be complete within days. Selling shareholders in the company’s public offering will reinject EGP 300 mn into the company, said El Damaty. The capital increase will finance developing the distribution fleet at a cost of EGP 175 mn, cover EGP 16 mn to build a production line, and EGP 70 mn to establish a company specializing in exports to African markets. (Read in Arabic)

Transport Ministry scraps China Harbour MoU for Alex multi-purpose facility: The Transport Ministry has scrapped a memorandum of understanding that would have seen China Harbour build a multi-purpose berth in Alexandria Port. The move comes in the wake of a review of MoUs signed with Chinese companies, the domestic press report. Al Mal says objections to the project by a number of companies operating in Alexandria port were behind the cancellation of the project. These objections call into question the viability of the project in light the inability of pier 55 — the central pier in the project — to hold the resulting influx of containers. Talks with China Harbour over the funding mechanism for the project had broken down in January, as we have previously reported.

Finance Ministry says no taxes on tuition for schools, universities: The finance minister dismissed reports that it was planning to tax school and university tuitions, according to spokesperson Ayman Al Qaffas, Al Mal reports. It is unclear as of yet if this is related to news reports last week quoting the Tax Authority chief as saying that international schools would be subject to the value-added tax.

El Sisi says Libya intervention is risky: “Military intervention in Libya is risky and foreign powers would be better off supporting a military commander based in the east,” President Abdel Fattah El Sisi is quoted as saying, according to Reuters. El Sisi recommends supporting Khalifa Haftar’s Libyan National Army, saying if it is given arms and support “it can do the job much better than anyone else, better than any external intervention that would risk putting us in a situation that could get out of hand and provoke uncontrollable developments.” El Sisi said five questions needed to be asked before taking military action, according to Reuters: How to get in and out of Libya; who would re-establish the police and army; how to protect civilians during a mission; whether an intervention would meet the needs of all Libyans; and who would rebuild the country physically.

Egyptian acknowledgment of foul play in the Russian plane crash case? The Egypt-led committee investigating the crash of a Russian passenger airplane in the Sinai peninsula last October said it is referring the case to the Prosecutor General. Reuters says this is “the first indication it suspects foul play.” It explains that “after receiving a report on the crash from Russia suggesting suspected criminal activity, the committee decided to refer the case to the attorney general, it said in a statement.” Reuters’ Arabic service meanwhile reports that only the Russian report on the crash has been sent to the Prosecutor General. The move is the first word from the committee since President Abdel Fattah El Sisi admitted last month in a speech that the plane was brought down by terrorists, Reuters writes.

All 55 passengers and seven crew aboard a flight operated by budget carrier FlyDubai from Dubai to southern Russia were killed on Saturday when the plane broke apart after its wing clipped the runway while trying to land in high winds, Reuters reports. “Investigators are probing human error, technical failure and difficult weather conditions among possible reasons for the crash, the Investigative Committee,” Bloomberg quotes the main Russian investigating authority as saying on its website. “This investigation will take time until all facts are collected,” said FlyDubai CEO Ghaith Al Ghaith at a press conference in Dubai. So far, it appears most of the passengers aboard were Russian nationals, with Ukrainian, Uzbek, and Indian nationals also on board. CCTV footage reportedly caught the moment of the crash (watch, run time 0:41). FlyDubai’s emergency page is here.

Black box flight recorders have been recovered at the crash site, FlyDubai said in a statement last night. The company said it will offer immediate “hardship payments” to families in the amount of USD 20k per passenger “with the aim of addressing immediate financial needs.”

THE MACRO PICTURE

Global markets reacted to the Fed’s decision on Wednesday to keep rates on hold, which signaled that the US is as exposed to global risks as it is to domestic ones, Bloomberg reports. And while a fall in the USD boosted commodities, many are wondering if the USD has dropped too far, too fast. Meanwhile, European stocks rose with mining companies and after Norway cut its benchmark interest rate to a record low while the UK and Switzerland kept rates unchanged.

Royal Dutch Shell and Saudi Aramco are breaking up. The pair are ending an 18-year agreement, splitting up assets and even the brand name of a joint US venture, Bloomberg writes. Aramco will keep the “Motiva” name, an exclusive license to sell fuel under the Shell brand in parts of the US, and the largest oil refinery in the country. Shell will keep rights to branded markets in other parts of the US as well as two oil refineries, and nine fuel terminals. This will reportedly “make it easier for Saudi Aramco to sell part of a wholly-owned downstream asset in any future public offering,” said London-based independent analyst Mohamed Ramady.

Meanwhile, global LNG prices are easing: LNG for May delivery in Asia eased to USD 4.50 per mmBtu, with traders saying prices were supported by Argentina’s tender to buy 19 LNG cargoes for delivery from May to August delivery, Reuters reports. Egypt’s state-owned EGAS also tendered for supply last week, seeking two cargoes for April delivery, while new supplies from Australia and the US continued to pick up.

EGYPT IN THE NEWS

Secretary of State John Kerry is “deeply concerned” about the “deterioration in the human rights situation in Egypt” in recent weeks and months, including the reopening of an investigation into the 2011 NGO case against Hossam Bahgat, Gamal Eid, and others on Thursday, according to a State Department statement. A court is expected on 24 March to look into a ruling to freeze the assets of four defendants on charges that they illegally received USD 1.5 mn in foreign funding for their NGOs, according to Mada Masr. Amnesty International echoed Kerry’s sentiments, saying. “The measures against Hossam Bahgat and Gamal Eid are arbitrary and punitive, imposed in response to their criticism of the deteriorating human rights situation in Egypt.” Egyptian Foreign Minister Sameh Shoukry rejected the claims, saying during a press conference with his Slovakian counterpart in Cairo on Saturday, “Human rights issues are the responsibility of the Egyptian government, which is very keen to implement and put into action the constitution, which stipulates respect for and commitment to human rights,” Ahram Online reports.

Even if Egypt quells the policy dispute over ergot limits in imports soon, it will be “too little, too late” for French exporters struggling to offload stocks, Reuters writes. A record 2015 harvest is set to filter through to France’s biggest end-of-season stockpile in 17 years, highlighting the country’s worrisome dependence on North Africa. “[T]he on-off trade with Egypt …. capped French sales during its peak export period – leaving little time for exporters to find alternative destinations in a well-supplied world market.”

The Wall Street Journal, meanwhile, took note of the central bank’s actions last week, noting that “Egypt’s central bank sells USD 1.5 bn in auction to cover imports,” FastFT took note of the Central Bank of Egypt’s Thursday rate hike, while the New York Times’ Declan Walsh serves up “Killing of Italian Student, Giulio Regeni, Puts Focus on Egypt’s Stability.”

Have we found Queen Nefertiti’s lost burial site? Antiquities Minister Mamdouh El Damaty told Reuters an analysis of radar scans done on the site last November has revealed the presence of two empty spaces behind two walls in King Tutankhamun’s chamber, Damaty told a news conference. A more advanced scan is scheduled for the end of this month with an international research team to confirm whether the empty spaces are in fact chambers. British Egyptologist Nicholas Reeves, who is leading the investigation, believes Tutankhamun’s mausoleum was originally occupied by Nefertiti and that she lies undisturbed behind what he believes is a partition wall.

WORTH READING

How a ragtag gang of retirees pulled off the biggest jewel heist in British History. “British crime aficionados saw the operation as a refreshing throwback to the meticulously planned, supremely executed jewelry heists of yesteryear, the ones that had inspired such classic crime movies as To Catch a Thief and Topkapi.” (Read)

DIPLOMACY + FOREIGN TRADE

The Foreign Affairs Ministry condemned Israel’s confiscation of land in the West Bank for settlements. The ministry’s spokesperson said the move was illegal, unlawful, and hinders the prospect of a peace agreement and the two-state solution.

President Abdel Fattah El Sisi met with the Deputy Prime Minister and Minister of Foreign and European Affairs of Slovakia Miroslav Lajčák on Saturday to talk boosting EU-Egypt ties, the refugee influx into Europe, and the Palestinian and Syrian crises, according to an Ittihadiya statement. El Sisi also stressed the importance of “realizing Libyan consensus on the national unity government, backing Libyan state institutions and its national army and lifting the arms embargo imposed on the army.”

ENERGY

Electricity minister meets with Toyota delegation to discuss implementing energy project MoUs
Electricity Minister Mohamed Shaker met with a delegation from Toyota on Thursday to discuss implementing MoUs signed during President Abdel Fattah El Sisi’s visit to Tokyo last month. The projects include a coal-operated power and desalination plant with a capacity of 2,000 MW and a 1,300 MW combined-cycle plant. (Read in Arabic)

NBE considering EGP 3 bn in new loans to five renewable energy companies
The National Bank of Egypt is studying issuing EGP 3 bn in new loans to five renewable energy companies, said an official from the bank’s credit department. The official added that the bank is expected to sign off on 40% of these loans by the end of the month. The bank is also considering EGP 8 bn in new loans to the power and energy sector. (Read in Arabic)

INFRASTRUCTURE

Civil Aviation Ministry studies new expansions to Sharm El Sheikh Airport
The Civil Aviation Ministry has completed a study on proposed expansions and developments to the Sharm El Sheikh Airport, sources within the ministry tell Al Mal, and will formally submit them to the Cabinet. The expansions aim to increase the airport’s capacity to 9.5 mn passengers annually from 7.5 mn. The ministry had submitted a separate expansion plan earlier this year that included building a new terminal at an investment cost of around USD 445 mn, but the project was put on indefinite hold, the source added. Read in Arabic)

BASIC MATERIALS + COMMODITIES

Egypt imports 50,000 tonnes of Indian rice to combat rising prices
The Chamber of Grain Industries is importing 50,000 tonnes of rice from India to combat the short supply and subsequent rising prices, head of the rice division Ragab Shehata told Al Mal. Rice prices have risen to EGP 6-7 per kilo, he added. GASC deputy head Mamdouh Abdel Fattah was quoted saying GASC was looking to import 300k tonnes of rice for the same purpose. The imported rice will cost around EGP 3.6-4.0 per kilo and should arrive within a week, said Shehata. (Read in Arabic)

GASC cancels tender to import rice as prices reach record EGP 5,200 per ton
GASC cancelled a tender on Friday to buy white rice after prices reached a record high of EGP 5,200 per ton, Al Borsa reports. The authority will instead issue an international tender. The move was prompted by the unwillingness of over 80 traders participating in the tender to reduce prices below EGP 4,750 per ton. Head of the Agriculture Export Council’s rice committee Moustafa Al Neggary attributes this to an increase in the price of paddy rice (unmilled rice) to EGP 3,100 per ton. He accused local traders of hoarding supplies of rice to artificially inflate the price and welcomed the move for an international tender. (Read in Arabic)

Supply Ministry explores new supply distribution system in cooperation with private sector
The Supply Ministry is considering implementing a new system to distribute subsidized goods to Egyptian families to run parallel to the bread smart card system, said Supply Minister Khaled Hanafi. The new system, which will be rolled out in cooperation with the private sector, will be announced soon, Al Masry Al Youm quotes the minister as saying. (Read in Arabic)

Federation of Chambers of Commerce calls for single regulator to monitor meat imports
The Federation of Egyptian Chambers of Commerce called on the government to amend legislation governing the import of meat through its representative Sameer Swaylem. The federation is looking to streamline the process of approving and monitoring safety and quality of imports of meat, chicken, and fish through a single regulator, instead of the current system, which involves multiple regulators, AMAY reports. (Read in Arabic)

MANUFACTURING

Cement traders accuse manufacturers of slowing production to raise prices
The cement traders division of the Alexandria Chamber of Commerce has accused some cement manufacturers of deliberately scaling down production to 20% to drive up prices at a meeting with the Egyptian Competition Authority, Al Mal reports. A significant portion of traders’ capital is tied to stocks of cement from factories and warehouses. They buy the cement at higher prices when supplies are low and have to sell at lower prices to their customers, said the head of AlexCham’s cement traders association. He called for a fixed monthly price on cement. (Read in Arabic)

REAL ESTATE + HOUSING

SODIC ready to participate in administrative capital projects, calls for review of land pricing scheme
SODIC is ready to participate in administrative capital projects once they are issued, announced managing director Magued El Sherif. Simultaneously, El Sherif is calling for the government to revise its land pricing policy. The decision to devalue the EGP is unlikely to affect the company’s sales pricing, he adds, noting that 97% of the company’s sales depend on domestic income and include no foreign components. (Read in Arabic)

Housing Ministry approves development of 140k homes by private sector
Housing Minister Moustafa Madbouly directed the New Urban Communities Authority to ready 2,000 feddans for the development of 140k homes as part of the EGP 60 bn first phase development of a housing initiative proposed by the real estate investment division of the Federation of Egyptian Chambers of Commerce. 20 private sector real estate developers will participate in the first phase, with plans to expand participation in the initiative in future phases. 40,000 homes will be for low-income residents, while 100k will be for medium-income residents. (Read in Arabic)

TELECOMS + ICT

4G services to launch by the end of 2016, says CIT minister
4G mobile services will be launched by the end of 2016, said Communications and Information Technology Minister Yasser El Kady. Meanwhile, 2G and 3G frequencies will also be provided within the year, he added. (Read in Arabic)

Huawei opens first store in Egypt and Africa
Huawei opened its first official store in Egypt and Africa on Saturday at City Stars Mall, Al Borsa reports. The move is part of an expansion strategy that will see Huawei open up stores in all governorates, said George Lee, head of consumer electronics at Huawei Egypt. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

Suez Canal Authority begins EGP 600 mn overhaul of Suez Shipyard
The Suez Canal Authority is studying an overhaul plan of its subsidiary Suez Shipyard, deputy head of company administration at the authority Gamal Abdel Nasser told Al Borsa. The cost of the overhaul plan is estimated at around EGP 600 mn, with the project duration ranging between three and five years, he added. (Read in Arabic)

Suez Canal Economic Zone looking to develop West Port Said Port
The General Authority for the Suez Canal Economic Zone is looking to include the West Port Said Port into its development plan, said authority deputy chief Abdel Kader Darwish. The cost of the development project ranges between EGP 700-800 mn, with the authority making back its expenditures over four to five years, he added, with the project duration ranging between 18-24 months. (Read in Arabic)

Shipping costs rise as a result of devaluation
Shipping agents have informed their Egyptian customers that shipping costs will increase starting this month due to the devaluation. Shipping agents must pay for port service fees, docking, and unloading in USD. Further drivers of a USD 170 inflation in shipping costs include higher port service fees, said the chairman of East Med Waleed Badr. (Read in Arabic)

BANKING + FINANCE

United Bank awaiting CBE approval to issue three-year CDs at 15% interest
The United Bank is looking to issue three-year CDs with a 15% interest rate, similar to ones issued by the three state banks last week, but is awaiting CBE approval, sources told Al Mal. The CDs are only accessible if you give up the amount in USD, which will then be converted to EGP and invested in the CDs. (Read in Arabic)

EFSA approves Pioneer Holding MTO to acquire Unipack
The Egyptian Financial Supervisory Authority has approved Pioneer Holdings’ mandatory tender offer to buy 66.8% of Universal for Paper and Packaging Materials, known as Unipack, at EGP 7.5 per share. Pioneer had applied for the MTO last month, Al Borsa reports. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

FY2016-17 budget deficit to grow to EGP 319 bn on account of devaluation
The Finance Ministry will use the official CBE rate in drawing up the budget for FY2016-17, ministry sources tell Al Mal. The ministry had estimated a devaluation, in violation of the CBE rate, in last month’s budget estimates. The source estimates that last week’s devaluation of the EGP raises the budget deficit by EGP 68 bn to EGP 319 bn due to USD purchases. The Finance Ministry will present the next year’s budget to parliament for approval at the end of the month. (Read in Arabic)

NATIONAL SECURITY

President Abdel Fattah El Sisi attends “Zat El Sawari” naval maneuver
President Abdel Fattah El Sisi attended the “Zat El Sawari” naval maneuver on Thursday, according to an Ittihadiya statement. The maneuver included securing naval forces, transport lines, maritime activities, and protecting naval units against mine threats. They also carried out all sea defenses against hostile targets and launching surface-to-surface and surface-to-air missiles, artillery, and torpedoes. El Sisi raised the Egyptian flag on FREMM frigate “Tahya Misr”, marking its entry into service.

At least 18 members of police force killed in Daesh attack in Arish
At least 18 member of the police service were killed in Arish on Saturday after Daesh-backed militants fired a mortar round at a security checkpoint, Reuters quotes security and medical sources as saying. A correspondent for Al Arabiya News Channel reports that Daesh-supported Wilayat Sinai claimed the attack. Government forces were killed five of the militants who carried out the attack, security sources tell Reuters.

Son of Ettihad great Mohamed Omar mourned in Alexandria
The domestic press carried extensive coverage Thursday of the death of Maj. Omar Sharif, who was killed by Islamist terrorists in the Sinai. Sharif, a 35-year-old father of two, was the son of Ettihad Football Club great Mohamed Omar. Sharif’s funeral procession “turned into a demonstration against terrorism,” AMAY reported.

Russia to Supply President-S aircraft defense systems to Egypt in weeks
Russia’s Radio-Electronic Technologies Concern (KRET) will begin delivering President-S onboard defense systems to Egypt in the coming weeks, said KRET’s first deputy director Igor Nasenkov. The supply contract for President-S, which is designed to protect planes and helicopters from being hit by missiles, was signed last year, Sputnik reports. (Read)

ON YOUR WAY OUT

Orange could settle with Telecom Egypt, Al Mal says. Sources said Orange, which was awarded EGP 250 mn by an arbitrator in damages from TE, is in talks to resolve the dispute with TE in a “friendly manner.”

19 Egyptians were killed when a bus carrying 44 Egyptians on Omra pilgrimage in Saudi Arabia overturned, said Assistant Foreign Minister Hisham Al Naqeeb, Al Mal reports. The identities of eight of the dead have yet to be identified, and the 25 injured were being treated in Medina, Al Naqeeb added.

CALENDAR

21-22 March (Monday-Tuesday): The Africa CEO Forum, Sofitel Abidjan Hotel Ivoire, Abidjan, Ivory Coast.

23-24 March 2016 (Wednesday-Thursday): Microfinance Egypt, Nile Ritz-Carlton, Cairo.

29-31 March 2016 (Tuesday-Thursday): Future Rail and Metro Egypt, Cairo.

04 April 2016: Saudi Arabia’s King Salman visits Cairo.

07-10 April 2016 (Thursday-Sunday): Cityscape Egypt Conference, Cairo International Convention Centre, Cairo

13-16 April 2016 (Wednesday-Saturday): Cafex, Cairo.

17 April 2016: German economic delegation visits Cairo.

25 April 2016 (Monday): Sinai Liberation Day (national holiday)

26-28 April (Tuesday-Thursday): Arabian Hotel Investment Conference, The Madinat Jumeirah, Dubai.

01 May (Sunday): Easter Holiday / Labour Day (national holiday)

02 May (Monday): Sham El Nessim (national holiday)

02-03 May (Monday-Tuesday): The Middle East Investment Summit 2016, Ritz-Carlton DIFC, Dubai.

10 May (Tuesday): Business News Foundation’s Third Annual Energy Conference: Energy and Sustainable Development, InterContinental Hotel Citystars Cairo. Register here.

25-26 May (Wednesday-Thursday): The Middle East and North Africa Solar Conference and Expo MENASOL 2016, Hyatt Regency, Dubai.

06 October (Thursday): Armed Forces Day (national holiday)

27 November 2016 (Sunday): 2016 Cairo ICT Conference Group

04-06 December 2016 (Sunday-Tuesday): Solar-Tec Conference, Cairo International Convention Centre, Cairo