Beyoncé loves Okhtein.
Plus: Pharos opens in Dubai and Dice announces intention to float

An IMF delegation arrives in Cairo today to review progress on the economic reform program ahead of unlocking the next tranche of Egypt’s USD 12 bn extended fund facility. Finance Minister Amr El Garhy and CBE Governor Tarek Amer met earlier this month with IMF Chief Christine Lagarde, who “praised” Egypt’s reforms. El Garhy had previously said the government has completed 80% of its intended “tough” reforms.

A World Trade Organization delegation arrived in Cairo on Saturday to discuss its drafttrade policy review on Egypt, Al Masry Al Youm reports. The delegation will meet with officials including Trade and Industry Minister Tarek Kabil during its five-day visit. This is the WTO’s third visit in relation to the review. An April delegation had commended the government’s “2020 export strategy” and efforts to revamp trade policies.

President Abdel Fattah El Sisi sets off to Paris today for a three-day visit. El Sisi will be sitting down with French President Emmanuel Macron tomorrow ahead of a joint press conference, Al Ahram reports. The two leaders are likely to discuss a new arms agreement, sources tell Al Masry Al Youm, adding that Egypt’s temporary ban on French wheat imports will also be on the list of topics.

El Sisi will also meet with a number of other French officials (including the prime minister and presidents of the Senate and National Assembly) and will hold a roundtable with French investors. Look for MoUs on energy, infrastructure, education, and tourism.

The World Boxing Federation is out with its match report from GB Auto IRO Andre Valavanis’ defense of its WBF Intercontinental Welterweight belt on Sunday night, declaring that Andre put on a “flawless performance” in his first defense of his title. “Valavanis was simply too superior to Georgian opponent Vladimer Janezashvili, who was hurt by body-shots in the second round, claimed a shoulder injury, and was saved by his corner when the towel was thrown in and referee Eddie Marshall waved it off.” The victory gives Andre a record of 10-0. (Photo by Kyle Morrow).

The executive regulations for the Investment Act are expected to be issued this week, Prime Minister Sherif Ismail had said. As we noted yesterday, the regs appear to be causing a recent a stir among companies operating in private freezones over additional fees they will be forced to pay, some of the fees are as high as 37.5% of total revenues.

Skip date night on Friday, as it’ll have to compete with the launch of the iPhone 8 and 8 plus in Egypt; season two of Stranger Things dropping on Netflix; and the release of the new Assassin’s Creed: Origins, which is set in Ancient Egypt.

EFG Hermes will hold its 7th Annual London Conference on 6-9 November. The conference will see C-suite execs from top listed companies in MENA as well as frontier markets (among them Pakistan, Kenya, Nigeria, Bangladesh, and Sri Lanka) meet face-to-face with top global investors with mandates to invest in emerging and frontier markets. The event will take place at Emirates Arsenal Stadium in London.

The Investment Ministry’s investment map of some 600 projects will reportedly be ready by December and be out for bid by January.

Our daily roundup of Last Night’s Talk Shows is on hiatus for the rest of the week, but will return on Tuesday, 29 October. We were mistaken yesterday when we said we’d be back today — sorry, folks.

We couldn’t leave this one out though: Amr Adib stepped into his favorite role of master-critic-of-all-things on last night’s Kol Youm to accuse the country’s youth of being “lazy” and “unwilling to work.” He himself washed plates at a Cairo hotel for a living once, he claimed. “If you don’t like the country or the work it has to offer, then go work abroad,” he suggested. Go enjoy the episode for yourselves: watch, runtime 2:07:06.

Pharos Holding has opened an office (pdf) in Dubai, Pharos Gulf Limited. “We are confident that the diversified portfolio of services offered by Pharos in Egypt and now the UAE, is representative of, and will benefit, the growing financial and economic links between Egypt and the UAE, as well as the wider GCC,” Chairman and CEO Elwy Taymour says. Pharos Gulf CEO Ismail Shoukry says Pharos sees growth across its divisions, saying that “the Pharos Dubai office should help to add to this growth and in the deepening of our Financial Advisory and capital and debt-raising services for an increasing base of clients in the UAE and the region.” Pharos Holding is now also developing non-bank financial services including finance leasing, microfinance, and insurance along with its core services of investment banking, securities brokerage, asset management, research, online trading, and bookkeeping.

IPO WATCH- DICE Sport and Casual Wear announced yesterday its intention to float (pdf) up to 33.05 mn existing ordinary shares, representing 62.35% of its outstanding share capital listed on the EGX. The selling shareholders are National Textile S.A.E, which holds 56.0% of DICE’s share capital, and other minority investors who hold a combined 6.4% stake. The offering is split into an institutional offering and an offering to Egyptian retail investors. DICE submitted its public subscription notice to the EGX yesterday. CEO Nagy Toma said, “We continue to expand further through a combination of organic and inorganic growth across the value chain. We are very confident in our ability to continue this growth trajectory and we look forward to cement our position in the apparel and ready-made garment export and local market.” EFG Hermes is sole global coordinator and bookrunner for the offering and Matouk Bassiouny is local counsel.

International Financial Law Review (IFLR) named Allen & Overy the international law firm of the year in its IFLR Middle East Awards 2017. Matouk Bassiouny took home the national award for law firm of the year in Egypt. The equity transaction of the year award went to Baker McKenzie, Helmy Hamza & Partners, and White & Case for the IPO of Dubai-domiciled ADES International Holding. Sharkawy & Sarhan was also among the list of firm who participated in the Adeptio share acquisition of Americana, which won best M&A transaction. The IPIC-Mubadala merger agreement was named the best domestic transaction with Shalakany Law named as one of the firms in it.

EARNINGS WATCH- Juhayna Food Industries reported a net profit of EGP 76 mn in 3Q2017, a 34% y-o-y increase over the same period last year. Revenues for the quarter jumped 34% y-o-y to EGP 1.7 bn, the company said in an earnings statement (pdf).

EARNINGS WATCH- Orange Egypt reported a consolidated net loss after tax of EGP 1.77 bn in 9M2017, down from EGP 133.9 mn a year ago, the company said in a regulatory filing (pdf). Consolidated revenues for the period rose 6.26% to EGP 9.35 bn, up from EGP 8.80 bn last year. The company said that the losses came on the back of the EGP float, and rising inflation and interest rates.

SME Development Authority looking for EGP 5 bn in loans from international institutions: The SME Development Authority is in talks with international financing institutions, including the European Bank for Reconstruction and Development and French development agency AFD for EGP 5 bn in funding, Al Mal reports. The funds will be used to finance SMEs, as well as labor-intensive and community-centric projects in more impoverished governorates, sources from the authority say. The authority will also begin next year to directly offer finance to medium-sized enterprises.

House agrees to a third term of emergency rule: The House of Representatives unanimously agreed yesterday to extend the state of emergency for another 90-day period effective 13 October, Al Shorouk reports. Ahead of the vote, Prime Minister Sherif Ismail briefed MPs on the reasons behind the decision, assuring them that the exceptional measures, which are necessary to counterterrorism efforts, according to a Cabinet statement. President Abdel Fattah El Sisi had issued a decree earlier this month re-imposing emergency rule after two consecutive three-month terms — the maximum term allowed by the constitution — had expired. El Sisi first proposed the measure in April after Coptic churches were targeted in deadly attacks, but promised that emergency rule would not be extended indefinitely as was the case during the Mubarak era.

This will not make Turkey happy: The Cypriot government is planning to submit coordinates regarding its exclusive economic zone (EEZ) in the sea to its north to the United Nations in the coming days, Cyprus Mail reports. Cyprus will also “try to engage in discussions with Turkey about the delineation of its EEZ, in that part of the sea.” The move is the result of Turkish plans to begin exploration drilling in the sea off Cyprus. Cyprus has signed “an agreement to delineate the EEZ with Egypt and Israel and embarked on exploration and exploitation activities for any possible natural gas and oil reserves. A similar agreement to delineate the EEZ was signed with Lebanon, but has not been ratified yet.”

INVESTMENT WATCH- Per Bloomberg this morning: Dubai-listed Emaar Properties “will sell 20 percent of its real-estate development business, according to emailed statement on Sunday.” News of the offering on the Dubai Financial Market sent the company’s shares down 2% as investors had expected a larger sale. “The market expected Emaar Properties to distribute a one-off dividend of AED 1 per share, but a 20 percent sale would mean a dividend distribution of AED 0.67 per share based on the AED 24 bn valuation,” one analyst told Reuters.

Saudi Arabia is pushing foreign ownership limits in its bourse past the 10% mark, Reuters reports. The country’s Capital Market Authority is working with the Saudi Arabian General Investment Authority to “to prepare rules under which foreign investors with appropriate experience and expertise could own such stakes.” The CMA said strategic investors in Saudi companies would retain their voting rights and that “some parts of the economy will remain restricted or prohibited” to foreign investors.

Saudi leaders refused US Secretary of State Rex Tillerson’s requests on Sundayto end the four-month-long Qatar boycott, Bloomberg reports. Tillerson met yesterday with Saudi’s Crown Prince Mohammed bin Salman to “ask him to please engage in dialogue,” but said after that the two sides were not yet ready to talk. Tillerson is in the Middle East in the hopes of finding quick resolution to the feud between Doha and its neighbors, which he says is “unintentionally bolstering Iran.” Tillerson also sat down with Iraqi Prime Minister Haider Al Abedi in Riyadh yesterday in a meeting that’s being largely viewed as an attempt to “seek Arab help … to isolate Iran,” whose “growing assertiveness” in the region is threatening US interests, ABC News says.

WHO removes Mugabe as goodwill ambassador: World Health Organization Director-General Tedros Adhanom Ghebreyesus rescinded his appointment of 93-year-old Zimbabwean President Robert Mugabe as a goodwill ambassador, Reuters reports. The decision came after many donors and rights groups expressed outrage over the appointment of Mugabe, who has widely been condemned for human rights abuses and his responsibility for the collapse of his country’s economy.

Japanese Prime Minister Shinzo Abe “secured a crucial victory” in parliamentary elections on Sunday that could allow his party to push for a constitutional revision, according to the Washington Post.Abe had sought to amend a constitutional clause that renounces war but was met with opposition from some in government who say the measure could further fuel regional tension, especially given the situation in North Korea.

Tourists and locals gathered around the temple of Abu Simbel in Upper Egypt yesterday for a solar alignment that only happens twice a year, Anadolu says. The sun beams on Ramses II’s face in the inner chamber of the temple on 22 October, to mark his birthday, and 22 February to commemorate the day of his ascension to the throne. The two dates are also said to mark the growing and harvesting seasons.

How financially literate are you? From this morning’s Wall Street Journal: “There’s a financial-literacy crisis in the U.S. And it is probably even worse than it seems. Study after study shows how poorly Americans understand money and investing. Consider this common question posed by surveys: “Suppose you had USD 100 in a savings account and the interest rate was 2% a year. After five years, how much do you think you would have in the account if you left the money to grow?” More than two-thirds of Americans over the age of 50 got the answer wrong when asked to choose from among three possibilities: More than USD 102, USD 102, less than USD 102. Read the piece (paywall) for the questions that go on to differentiate between financial literacy and “financial comprehension” — what you really understand about the basics of personal finance. (The answer to the first question here: USD 110.41.)

Still topping coverage on Egypt in the foreign press is the attack which left at least16 policemen and conscripts dead. Some, including the National’s Jacob Wirtschafter, focus on how the sophistication of the attack has shocked both security forces and the nation at large. “The attack places the Ministry of Interior under greater scrutiny, because it appears to have been caught off-guard by the abilities of the” terrorists, said the International Crisis Group’s North Africa Project Director Issandr El Amrani.

Egypt is willing to assist in “creating a lasting peace agreement between Israeland the Palestinians,” a senior White House official said last week, according to the Jewish Telegraphic Agency. The official met with Egyptian intelligence officials in Cairo last week who “expressed a strong desire to assist the US’ peace efforts.” This came as Egypt helped broker a new unity agreement earlier this month between Palestine’s rivaling factions Fatah and Hamas.

Protesters in Ottawa called on the Canadian government to “to intervene after members of the LGBT community were arrested in Egypt last month,” according to CBC News. “We would like [the Canadian government] to be more involved in this file. We are a little bit disappointed. I’m personally disappointed that there is no clear message to the Egyptian government,” protest organizer Nabila Kaci says.

Proposed amendments to the Consumer Protection Act are a welcome step from the government to regulate the market and give citizens some measure of protection against price gouging, Hagag El Husseiny writes for Al Ahram. The amendments do not contradict the basic tenets of a free market where prices are determined by supply and demand, he maintains, and will have a significant positive impact on citizens struggling to keep up with inflation. El Husseiny urges MPs to approve the bill as quickly as possible, regardless of the pressure and resistance they may face from those who benefit from soaring prices.

Ah, the stench of socialist populism in the morning…

A team of archaeologists dove down to the Thistlegorm wreckage to create a 3D rendition of the site. Accompanied by a photogrammetry specialist, the group spent 13 hours trying to capture every angle of what has become one of the world’s most famous dive spots. This virtual tour really gets a full picture of the armed British freighter Thistlegorm, which sank somewhere along the Straits of Gubal near Suez while on its way to deliver supplies to Allied troops in Egypt in 1941 (watch here, runtime 1:26, 1:33 and 1:04)

President Abdel Fattah El Sisi met with Iraqi Prime Minister Haider Al Abadi during his short stop in Cairo on Sunday to discuss bilateral ties and cooperation on fighting terrorism, an Ittihadiya statement said. Al Abadi, who visited Egypt as part of a regional tour that takes him to Jordan, Iran, Turkey, and Saudi Arabia, also met with Prime Minister Sherif Ismail yesterday. The Kuwait News Agency has coverage.

The President also met with Australian Governor General Sir Peter Cosgrove yesterday, where discussions centered around strengthening trade and economic ties and bolstering cooperation on security.

Prime Minister Sherif Ismail discussed strategic relations with US Charge d’affaires Thomas Goldberger on Sunday,according to a Cabinet statement.

Qatar does not support the Egypt-sponsored rapprochement between Palestinian factions Hamas and Fatah, Hamas leader Yahya Sinwar said, according to Al Arabiya. “Asked whether it’s possible for Hamas to communicate with Qatar to pay the wages of its employees in Gaza until a judicial committee agreed on in Cairo is created, Sinwar said: ‘Qatar is dissatisfied with Hamas due to some of its moves.’” Qatar had failed to broker an agreement between the two factions in a previous attempt.

Switzerland’s economy minister will be heading a business delegation to Egypt in November to explore potential investment, Swiss ambassador Paul Garnier told Investment Minister Sahar Nasr yesterday, according to Al Ahram. Swiss investors are particularly interested in the fields of waste recycling, electronics and medical equipment manufacturing, fish farming, and Suez Canal development projects.

Spanish and Catalan authorities should revert to the constitution to settle their differences, Egypt’s Foreign Ministrysaid in a statement yesterday.The statement followed an escalation of tensions over Catalonia’s independence from Spain, after Spanish Prime Minister Mariano Rajoy decided on Saturday that he would seek parliamentary approval to reshuffle the entire Catalan government. Catalonia’s parliament will meet today to decide “whether to hold a session to formally proclaim the republic of Catalonia,” according to Reuters.

Oil Minister Tarek El Molla met with Apex International Energy CEO, Roger Plank, in Cairo yesterday to discuss ongoing work at the company’s West Badr El Din and South East Meleha concessions, according to Al Mal. Apex had said in August that it would invest USD 45.9 mn in the two Western Desert exploration projects.

The Agriculture Ministry says the UAE has agreed to lift its ban on importing Egyptian produce, according to Reuters. “A ban on Egyptian strawberries imposed by Saudi Arabia was also lifted about a month ago after a Saudi delegation visited Cairo,” Agriculture Ministry spokesman Hamid Abdel Dayem said on Sunday. We had reported yesterday on Bahrain and Kuwait lifting similar bans temporarily. It is not clear whether this most recent shift is temporary or permanent. Separately, a ministry report showed that 3.1% of vegetable exports and 14% of fruit exports were rejected in 9M2017, Al Mal reports.

The Dakahlia Group is looking to pump EGP 755 mn-worth of new investments through to the end of 2018,Chairman Mahmoud Al Anani tells Al Mal. The company is looking to upgrade and expand production capacities across its three main areas of business; agricultural development, poultry, and feed production. A EGP 500 mn feed factory in Sadat City is already in the works and set to open in January.

The New Administrative Capital Company for Urban Development plans to begin selling homes at the residential district of the new administrative capital in 1Q2018. The New Urban Communities Authority had given district developers a June 2018 deadline to complete infrastructure works and another in 3Q2018 to complete development, Housing Ministry sources tell Al Borsa.

Tourism developer Travco has begun construction on four hotels in Marsa Alam, Marsa Matrouh, Safaga, and Hurghada worth a combined USD 120 mn, Travco chief Hamed El Chiaty said, according to Al Borsa. The company plans to complete development on the hotels in 2018, with an eye towards opening the hotels in 2019. Travco is in talks with banks to help finance the project.

Vodafone Egypt apparently plans to have its 4G network cover the country completely in five years’ time, as per an agreement with the National Telecommunications Regulatory Authority, the company’s head of External Affairs and Legal Director Ayman Essam tells Al Shorouk. Right on time for when 7G becomes a thing all over the world.

Auto dealers are expecting car prices to drop 10-20% over the next two months and through the beginning of 2018 to reflect improved USD exchange rates and customs tariffs, they tell Al Masry Al Youm. Distributors are looking to clear current inventory before announcing reduced price tags, they explain, adding that prices are also expected to dip as various freetrade agreements, such as the Mercosur pact, come into effect, opening the door for tariff-free imports. We, on the other hand, aren’t holding our collective breath. Auto sales witnessed a significant drop over the past several months, with expectations seeing sales declining by as much as 50% y-o-y in 2017. Some industry insiders believe, however, that industry is poised for a 2018 comeback.

EgyptAir is looking to borrow USD 870 mn from local banks to finance a portion of its planned purchase of 33 new planes, Al Mal reports. EgyptAir has already begun negotiations with National Bank of Egypt, Banque Misr, and Banque du Caire, sources say. The national flag carrier has reportedly set this month’s end as the deadline for banks to bid for the loan. EgyptAir will be spending EGP 60 bn (USD 3.4 bn) on a full range of aircrafts to fly short-, medium- and long-distance routes.

Garment manufacturer Cottonil plans to open 60 new branches by the end of the current fiscal year, bringing its total number of branches to 400, General Manager Mohamed Eissa said, Al Masry Al Youm reports.

The Giza Criminal Court’s terrorism circuit handed down death sentences to 11 defendants yesterday from a 2014 terror case, Ahram Online reports. The charges include “joining an illegal group, attacking personal freedoms, manufacturing explosive materials, and attempted murder of two police officers, as well as destroying a police vehicle.” Four of the 11 were convicted in absentia, while 14 others were sentenced to 25 years in prison. One juvenile defendant was given a 10-year sentence.

The Egyptian Football Association (EFA) has decided against Egypt’s participation in the 2018 African Nations Championship in Morocco next January, King Fut reports. The EFA said that the tournament would interfere with the Egyptian Premier League.

Beyoncé posted a series of pictures on Instagram wearing a bag from Egyptian designers Okhtein, the brand’s co-founder Mounaz Abdel Raouf announced over the weekend. The pop icon purchased the handbag from a boutique in Los Angeles, where Okhtein displays its products, Abdel Raouf told online tabloid CairoScene.

The Supreme Media Council launched an investigation into television host Ahmed Moussa for broadcasting a fabricated recording during his coverage of Friday’s Wahat attacks, Al Shorouk reports. The council also investigated the channel on which Moussa’s show airs, whose president promised to broadcast an apology for the “mistake.” Don’t expect that this is Moussa’s last appearance on the small screen.

ON THIS DAY- On this day in 1942, Lieutenant-General Sir Bernard Law Montgomery launched an attack against German forces in El Alamein, starting what became the decisive Second Battle of El Alamein, which prevented the Axis forces from advancing further into Egypt. The Hungarian revolution against Soviet rule began on this day in 1956 with protests, demanding that former Prime Minister, Imre Nagy, be returned to power. In 1983, suicide bomber attacks in Beirut killed at least 146 American marines and 27 French servicemen. The Northern Ireland peace process reached a “historic breakthrough” as the IRA announced they had begun decommissioning their weapons in 2001. Also in 2001, the first generation of the Apple iPod was released. The device was described as “a breakthrough MP3 music player that packs up to 1,000 CD-quality songs into an ultra-portable, 6.5 ounce design that fits in your pocket.” Football legend Pelé was born on this day in 1940. This time last year, Enterprise readers were learning about a warning from the government that price controls could be the law the of the land if “price gouging” continues.