WHAT WE’RE TRACKING TODAY

Cabinet declared today a national holiday in observance of the 30 June 2013 Revolution; the announcement came via a brief statement issued just before 5:00 pm yesterday. There will be no celebrations, however, as the nation mourns the assassination of Prosecutor General Hisham Barakat. More on that story below.

Look for turmoil today in capital markets near and far today on the back of Greece and, closer to home, the assassination of Barakat. The EGX slid 1.7% yesterday, while the Dow posted its worst one-day decline in more than a year on what the WSJ said was Greece-related jitters. Analysts don’t expect the Greek crisis — whatever its outcome — to be Europe’s “Lehman moment.” Mohamed El-Erian, in his newfound role as Oracle of the Global Economy, told Bloomberg yesterday that he believes Greece is heading for a “massive economic contraction” that there’s an 85% probability Greece will leave the eurozone in the coming weeks. The accompanying story includes a timeline on what could be next; thedomestic press has picked up El-Erian’s remarks. Greeks will go to the polls on Sunday, 5 July in a snap referendum on whether to accept the European Central Bank / IMF / European Commission’s take it or leave it proposal.

Meanwhile, the soap opera that is Telecom Egypt is becoming more and more entertaining. See our spotlight after Speed Round, below, which digs into one of the nastiest boardroom fights we’ve seen in years, complete with dueling public statements between exec and non-exec members of the board and allegations TE execs were initially barred from headquarters ahead of an emergency meeting.

Today is the self-imposed deadline for a nuclear accord between Iran and the P5+1 countries. NBC News and AP say negotiators will miss the deadline as Iran’s top negotiators heads home for consultations before returning to press ahead. As we’ve previously noted, the 30 June deadline was probably always a bit flexible.

Today is Asteroid Day. Yes, you read that correctly. As if we didn’t have enough to worry about already: “Scientists and spacefliers will be focusing attention on near-Earth objects when the first-ever Asteroid Day plays out on Tuesday — not so much to raise money, but to raise awareness about the potential threat from above and what to do about it,” reports NBC News. Even CNN is concerned. Asteroid day even has its own website.

Iftar / sohour times: Maghreb will be at 7:01pm today, while fajr will be at 3:12am, according to Islamic Finder.

WHAT WE’RE TRACKING THIS WEEK

The state’s 2015-16 fiscal year starts tomorrow (July 1); state-owned banks and the stock market will be taking the day off.

Emaar Misr shares begin trading on the EGX on Thursday, 2 July.

SPOTLIGHT ON: PROSECUTOR GENERAL ASSASSINATED

The facts: Prosecutor General Hisham Barakat was assassinated yesterday morning in a terrorist attack on his convoy in the upscale district of Heliopolis, near the Military Academy, Al Masry Al Youm reported. Barakat succumbed to his injuries hours later at El Nozha Hospital. Nine people, among them two bystanders, two drivers and five members of the security forces, were injured in the attack, which Al-Ahram speculates involved explosives equivalent to a half-ton of TNT. Notes Reuters: “Security sources said a bomb in a parked car was remotely detonated as Hisham Barakat’s motorcade left his home, after saying earlier a car bomber had rammed into the convoy.”

No claim of responsibility: No group has yet claimed responsibility for the assassination. “A little-known group calling itself the ‘Giza Popular Resistance’ claimed responsibility on its Facebook page for the attack,” an earlier Reuters story said, noting it could not verify the claim. Hours later, the group withdrew the claim from its Facebook page, the newswire said. What purports to be the GPR’s Twitter feed claims the group does not have a Facebook page. Here at Enterprise, we last covered the Giza Popular Resistance (GPR) when they were blowing up Western fast-food restaurants and attacking storefronts of the three major mobile network operators. If they pulled off the Barakat assassination, it represents a step-change in operational capabilities. Background on the group is here. Their principal international cheerleader is an American convert to Islam named Shahid King Bolsen, who faced charges of manslaughter charges in the UAE before decamping for Turkey.

Funeral today, El Sisi to attend: Barakat will receive a state funeral beginning at noon at El-Moshir Tantawy Mosque in New Cairo, according to Al-Masry Al-Youm. President Abdel Fattah El Sisi is expected to attend; condolences to the family (aza) will take place at the same venue following evening prayers.

Deputy PG to stand in pro-tem: Zakaria Abd El-Aziz Osman, deputy prosecutor general since April 2015 and a former judge of the Cairo Court of Appeal, has been named acting prosecutor general pending a permanent appointment. The news was broken by CBC.

A chilling first-hand account comes from Abbas Refaat, Barakat’s driver, who was interviewed by Al Ahram at the hospital. Abbas remembers the blast wave from the explosion sending both the prosecutor general’s car and the security car ahead of them flying against vehicles parked on the side of the road. Then everything caught fire. Only impact-resistant glass saved his life, Refaat says.

In Photos: An image gone viral on Twitter hints at the strength of the explosive device, while Ahram Gate has a roundup of images of damaged vehicles that puts things in starker terms. Youm7 has what it claims is video of a mortally wounded Barakat being eased to the ground by civilians who came to his aid (graphic). The best photographic roundup of the crime scene, though, belongs to Reuters.

Barakat took a hard line on Ikhwan, other Islamists: Barakat, 65, was appointed the nation’s top prosecutor in July 2013 by interim president Adly Mansour, but his role in the clampdown on Islamist hardliners began earlier when he helped direct the judicial investigation of the Wadi Natroun prison, which took place during the 25 January revolution. (Former president Mohamed Morsi was sentenced to death for his role in that case.) Since fall 2013, Barakat directed the prosecution of top Brotherhood leaders and Morsi-era political appointees, seeking death sentences in multiple cases, including one against former President Mohamed Morsi and five against former Morshed Mohamed Badie.

Allegations of lax security: The standard post-incident finger-pointing has begun, with Ahram Gatequoting a neighbor of the Barakat family as suggesting that security around the prosecutor’s residence was soft. Analysts and journalists are holding related conversations on Twitter.

We’ve been here before: The assassination follows the release yesterday by Ansar Beit El-Maqdis of a video of the drive-by killing of three judges last month. The video called for more killing of Egypt’s judges. The video is available online, but we will not be providing a link. The last significant attempt on the life of senior civilian official was the 2013 bid by ABM (before they rebranded as ‘Wilayet Sina’ after pledging allegiance to Daesh) to kill Interior Minister Mohamed Ibrahim, as we’re reminded by the Long War Journal.

Ittihadiya promises swift justice: Per a statement from the Office of the President: “Egypt has lost a model of judicial integrity, who set an example of dedication and commitment to the principles and ethics of this noble profession. He exemplified patriotism and diligence. Counselor Barakat, who was assassinated by an abhorrent act of terrorism, will remain a symbol for honest Egyptian judges. The Presidency of Egypt affirms that the perpetrators will meet swift justice and that such atrocities will not deter the state from advancing development, upholding rights and realizing the aspirations of the people of Egypt.”

Today is a national holiday, but there will be no celebrations: “The Presidency also announces the cancellation of celebrations marking the second anniversary of the June 30 Revolution as a sign of mourning.”

Interior Ministry on high alert: Interior Minister Magdy Abdel Ghaffar briefed El Sisi yesterday on the early hours of the investigation. A readout from Ittihadiya was laden with messages meant to reassure a shaken public, saying police are at a state of “maximum alert” and are securing state institutions and public venues in coordination with the Armed Forces in the hours leading into the anniversary of the 30 June revolution, noting, “Forces will be deployed in all governorates, main roads and squares. The Armed Forces, riot police, Central Security and Special Forces will also participate in security operations.”

Interior Ministry The Interior Ministry mourns the death of public prosecutor Hesham Barakat, who was “assassinated by the hands of treachery after a lifetime of loyal and dedicated work to uphold the law.”

SIS: “Assassinating prosecutor general attests to MB rejection of state of law.” The State Information Service issued a statement noting that “this obnoxious crime attests again to several facts that some international media outlets would like to disregard or connive at. … Targeting symbols of the judiciary today is an extension of the black history of the terrorist Muslim Brotherhood as they assassinated Counselor Ahmed el-Khazendar on March 22, 1948 who was looking into cases of murder and arson that were committed by MB members. They also killed three young judges in Arish city on 16/5/2015.” (More on the Arish assassinations, on which we’ve previously reported, below)

SIS draws parallels between Barakat’s murder and recent global terror attacks: “This crime is part of a terrorist plot that the world has recently seen in Tunisia, Kuwait and France. It is also an extension of the crimes committed by Daesh in Iraq and Syria as the Brotherhood group is part, not even the source, of all other terrorist groups that adopt the same ideology which is hostile to civilization and all forms of stability and human progress.”

What the Ikhwan is saying: The Ikhwan first released a nondescript statement on their website that says nothing of relevance, and made no mention of the killing of Hisham Barakat. However, one of their tweets in particular received widespread attention and condemnation:
@Ikhwanweb We affirm that violence will not end except by achieving justice, toppling this illegitimate regime and allowing #Egypt to be free

Late into the evening, Brotherhood spokesperson Mohamed Montaser released a second statement from which the above tweet is included as a passage. The statement briefly says that murder is reprehensible without actually saying that they consider Barakat was murdered. They then say that the only way to stop violence is to overthrow the government (a bloodless and peaceful exchange of power, we imagine). They then go on to list all the reasons they believe he deserved to die: “the coup regime’s public prosecutor legalized by facilitating executions, arbitrary arrests, detention, torture and slow death in prisons, and absurdly extended long-term remand in custody, abductions and forced disappearances, which are all horrid crimes that created a whole sector of society, with tens of thousands of oppressed people.”

The statement then has this nonsensical passage: “The targeting of the junta’s public prosecutor reveals to all that the coup’s security apparatuses and its killing machine can only face peaceful unarmed protesters in the streets, dragging them on asphalt, insulting and humiliating non-violent demonstrators, torturing workers and street vendors, and harassing the poor in Egypt’s slums.”

One may need to read it several times over to confirm that it actually makes no sense.

They primed the pump: Just last month, on Turkey-hosted Mekameleen TV, Muslim Brotherhood Sheikh Essam Telemeh incited the killing of judges and provided a religious pretext for assassinations of judicial officials. (Watch in Arabic, running time: 3:08, via Mokhtar Awad)

DOMESTIC REACTION

Egypt’s talk show hosts were nearly unanimous in their calls that the timeline for carrying out death sentences handed to Brotherhood members currently in prison be expedited:

• Lamees El Hadidy of CBC: “We need the speedy implementation of all the outstanding death sentences to avenge the death of Hisham Barakat.”
• Ahmed Moussa: “Close all the prisons to outside visitors for a year. That’s how these attacks get planned — the orders come from those inside prison. We can’t view this calmly. We cannot be calm. I don’t want to hear about human rights.”

Lamees El Hadidy aired the above-mentioned footage from Youm7 purportedly showing civilians trying to help Barakat as he lay injured and covered in blood. During commercial breaks, CBC Extra displayed pictures of all assassinations and attempted assassinations of Egyptian public figures, recalling the long struggle between the state and the Islamists. The head of the Lawyer’s Syndicate, Sameh Ashour, called in to the program to affirm that members of the judiciary would not be cowered from doing their duty, echoing similar statements made by Nagy Shehata on Ahmed Moussa’s program.

Speaking of which: Ahmed Moussa devoted a significant portion of his program to a segment in which he and a judge calling into the program railed against former Brotherhood member and Strong Egypt Party head Abdel Moneim Aboul Fotouh, calling him a traitor and an apostate and calling for him to be investigated, although it was not entirely certain to this reviewer as to why. (None of us at Enterprise normally watch Ahmed Moussa’s program, so this might be a nightly recurring theme). Moussa also slammed Al Shorouk newspaper, although a look through the paper shows nothing that stands out immediately as a candidate for his ire. Moussa also insinuated that Monday’s assassination of Barakat was linked to the recent opening of the border with Gaza.

The head of the Giza Criminal Court Nagy Shehata said in a phone interview with Moussa: “The attack won’t stop us from doing our jobs in fighting terrorism. I’m not afraid.” He also asked the “elite and educated” to stop calling for reconciliation: “We have reached a dangerous slope.” (Watch: running time 7:53)

Amr Adeeb was relatively more restrained compared to his peers, asserting that “even if they executed everyone in prison tomorrow, the attacks would continue. We need more comprehensive solutions; we need to improve the security of public officials, including the judiciary.” Speaking with Adeeb and co-host Rania Badawy, former Attorney General Abdelmegid Mahmoud said: “We [prosecutors] do not protect a political regime, we protect the state. We must stop living in a hypocritical manner and use our judicial and executive authority to put an end to terrorism.” He also called for President Abdel Fattah El Sisi to reinstate the emergency law and any other “special measure” necessary to eradicate terrorism.

Hamdeen Sabahi: In a phone interview with MBC Masr, former presidential candidate Sabahi mourned Barakat, saying, “We’re determined to build a modern state, not a religious state. … The terrorist groups had a clear message: We rule you or we kill you.”

Mostafa Bakri: The journalist and former MP tweeted: “Terrorism is on the rise. Egypt is in a state of war and military prosecution is the solution.”

Alaa Al-Aswany: The Omaret Yacoubian author tweeted: “Justice alone suffices to eliminate terrorism, while oppression feeds terrorism and justifies its continuation.”

Tarek El Khouly: The former April 6 Movement leader’s blunt tweet: “It’s all over. Nothing left to say. Morsi has to be executed.”

What Twitter is saying: @TheBigPharaoh: The hashtag “execute the Brotherhood” trending on Egypt’s Twitter.

INTERNATIONAL REACTION

The United Nations, the White House, the US State Department, the US Embassy in Cairo, theUN Secretary-General and the UAE all released variations of more or less the statement — condemning the attack, expressing condolences to the Egyptian government and the Prosecutor General’s family, and affirming their commitment to Egypt in its fight against terrorism.

Amnesty International: “The killing of Public Prosecutor Hisham Barakat was a despicable, cowardly and cold-blooded act of murder. … If the rule of law is to prevail in Egypt, judges and prosecutors must be free to do their jobs without the threat of violence. However, the Egyptian authorities must not use such threats as a pretext for trampling upon human rights. … In May 2015, more than 500 ‘Islamic scholars and organizations’ across the world had launched a signed online statement urging supporters to kill government officials in Egypt’s judiciary, police and the army.” (Read)

This is journalism? Meanwhile, Al Jazeera’s icon of free speech and liberty, journalist Ahmed Mansour, accused El Sisi of ordering the assassination of Barakat. (Read in Arabic)

Obituaries: Mada Masr has the most comprehensive obit we’ve seen so far in English, while Al-Borsa does yeoman’s work.

Need more? Ahram Online has wall-to-wall coverage, with its permalinked update page being your starting point, here. For domestic takes, visit the front page of any newspaper (Begin with Al-Ahram or AMAY, depending on your personal reading preferences.) Kareem Fahim and Merna Thomas turning in a solid effort for the New York Times, and there’s the always-reliable Associated Press. The WSJ and FT also have solid takes on what is the defining story on Egypt this morning. And if you prefer your news leavened with plenty of links and social media, definitely check out Suzanne Gaber’s news roundup for the Atlantic Council’s Egypt Source blog.

** READ ENTERPRISE IN ARABIC **

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SPEED ROUND

Egypt’s natural gas production has dropped by an average of 200 mcf per day in 2015 to about 4.395 bcf/d, an Oil Ministry report showed. DNE notes that “foreign partners are slowing down the development processes of fields, leading to a decline in the gas production rate and an inability to connect compensatory wells.” BP’s Pharaonic Petroleum Company (PhPC) saw its natural gas output decline by 95 mcf per day. On the other hand, RWE’s SUCO and Shell’s Bapetco had output increases of 82 mcf and 73 mcf per day respectively.

Confirming yesterday’s news, Ezz Steel said its factories have been suffering from a “disruption in natural gas’ supplies,” according to a statement sent to the EGX. The disruption often leads to a severe gas shortage, Ezz adds, noting the increased difficulty of forecasting the supply of gas during the summer month in particular. The company is working to reduce the impact of the shortage by utilizing other inputs, the statement read.

The bourse now requires that proceeds from GDR sales be passed on through local custodians in EGP. Proceeds from the sale of Egyptian stocks that have been converted to GDRs will only be paid out in EGP, following a decision by the EGX Chairman. The measure is aimed at domestic investors in particular,Reuters says. EFG Hermes Securities Brokerage chief Mohamed Ebeid took issue with the measure, Al-Borsasuggests.

El Sisi taps anti-corruption watchdog to investigate obstacles faced by business, investors: Per a statement released by Ittihadiya: “President Abdel Fattah El Sisi instructed the Chairman of the Administrative Control Authority Mohamed Erfan that the agency immediately hold meetings with investors and businessmen in order to discuss all problems that impede their projects and investments in Egypt in their interaction with all state agencies. The President also directed that the agency works on finding swift and lasting solutions to these problems in order to ensure a conducive environment to attracting and sustaining investment.” The statement notes that the president demanded “a detailed report” be submitted “expeditiously.” What this means for the Investment Ministry and GAFI is, frankly, anyone’s guess given the statement was issued just after it was announced that Prosecutor General Hisham Barakat had died of his injuries following an assassination bid. The ACA has a surprisingly well-developed websitehere. The story is getting wide coverage in the business and finance pages.

Al-Borsa picks up where we left off on Sunday with a piece exploring Moody’s disappointment in Egyptafter the 2015-16 budget fell short of the deficit target initially communicated by the Mahlab government.

EBRD, CIB step-up support to Egyptian traders: “The European Bank for Reconstruction and Development is stepping up its support to Egyptian exporters and importers by increasing financing available under its Trade Facilitation Programme (TFP) to Commercial International Bank by USD 50 mn to USD 100 mn,” EBRD said in an emailed statement. Through the TFP, EBRD “provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the countries of operations.” CIB joined the TFP as an issuer in December 2014 and “within a short period of time has become very active under the programme.”

A verdict in the retrial of the Al Jazeera English journalists will be handed down on 30 July, Reuters reported. The journalists were previously sentenced to seven to ten years in prison.

Egypt’s top appeals court gets new chief: President Abdel Fattah El Sisi swore in Mr. Justice Ahmed Gamal Eddin Abdellatif as the next president of the Court of Cassation, Al-Ahram reports.

MOVES- Sayed El Gharabawy, Telecom Egypt’s Senior VP for International and Wholesale, was removed from his position as per a disclosure sent to the EGX and appointed an advisor to the company’s CEO. We had noted in Sunday’s issue that El Gharabawy and two other VPs were being booted because of their refusal to reduce the pricing structure for ISPs using the company’s network infrastructure.

Which brings us to…

SPOTLIGHT: Telecom Egypt is better than the Ramadan mosalsalat

Telecom Egypt executives board members sent a candid letter to CIT Minister Khaled Negm denouncing the pressure placed on the company to force it to reduce the network prices it charges ISPs.

They called the move by Negm a publicity stunt, alleging that TE has already submitted a proposal to reduce prices, a claim which was rejected. The executives also accused the newly appointed leadership of the company of being there only pass on the price reductions and stop TE from obtaining a mobile operator license.

Non-executive members of the board of directors responded to the claims in an open letter of their own, calling the initial one “unprofessional” and noting that the company’s profitability is sagging. The board also said the company’s staff is seeing lower profit distributions while executives were taking in over EGP 2 mn each annually — and it was there to rectify that.

A source told Al Masry Al Youm, that it was Negm himself who forced the non-executive board members to issue their letters. Other reports claim that the Minister wants all of the signatories on the initial letter fired.

Along with putting them under investigation, he has also tasked CIT Ministry executives to check their records for any ‘administrative violations’ as a prelude for their dismissal.

To address the crisis, TE Chairman Mohamed Salem called for an emergency meeting that finally took place following odd initial reports that security at TE’s headquarters were ordered to bar executive board members from entry. The meeting reportedly ended abruptly following a spat between Ahmed Ossama, a Senior VP, and CEO Osama Yassin.

Escalating the situation further, Negm is now reportedly taking steps to place Telecom Egypt directly under the CIT Ministry’s control, Al Borsa reported. The CIT Minister is going to present the cabinet with a memo reportedly aimed at giving the Ministry the right to approve any “critical” decisions related to TE that are being blocked by executive board members.

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A MESSAGE FROM PHAROS HOLDING

Edita: Exceptionally well-positioned for value-accretive M&A transactions

Pharos Holding Research has initiated coverage on leading Egyptian snack foods producer Edita, which recently listed on the EGX after two partners sold a combined 30% stake in a secondary offering in March 2015. At first, the firm traded on a 25.2x PE multiple that has since shot up to 40x, which Pharos Research has deemed justifiable, particularly in light of its ongoing expansion drive.

Our take: Edita’s trading multiple is a fair reflection of a combination of the FV estimate derived from its DCF valuation — which is based on a projected revenue CAGR of 18.5% until 2020, an average GPM of c. 40% and annual SG&A/Sales ratio of 17.5% — and Edita’s plans for capacity expansion.

Another key: Edita has high potential for M&A transactions as either a buyer or as an acquisition target in its own right. Industry giant Kellogg’s has already entered Egypt in early 2015 through acquiring Bisco Misr and other regional giants, such as Turkish Ulker, are aggressively seeking growth opportunities in Egypt and selected other MENA region countries, such as Saudi Arabia. We believe Edita’s dominant market share in the cakes and croissants segments — and the firm’s successful shift in distribution policy towards retail clients — are highly-valued intangible assets. Click here to read our full initiation report.
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ENERGY

Petroceltic losses widen, bulk of revenues coming from Egypt
Irish Times | 29 June 2015
Petroceltic’s full year losses widened to USD 282 mn as exploration costs of unsuccessful wells are written off along with an impairment charge of USD 86 mn, The Irish Times reported. Chairman Robert Adair said the company delivered on its production target, with the bulk of the USD 157 mn in revenue recorded coming from the USD 106 mn in revenue generated in Egypt. The Irish Times noted that “improved availability of external capital to the Egyptian Government facilitated material payments to international oil and gas companies operating in the country, including Petroceltic.” (Read)

PGESCo signs consulting contract for West Cairo Power Station
Al Borsa | 29 June 2015
PGESCo was awarded an EGP 225 mn consulting contract for the West Cairo Power Station. The project includes 17 phases that will be issued from 3Q2015 onwards. Six other companies had expressed interest in the project, but only PGESCo submitted an offer. The station will run on one thermal unit and will have a production capacity of 650 MW at an estimated investment cost of around EGP 5.38 bn. (Read in Arabic)

Electricity Ministry begins operating ten new mobile production units
Al Mal | 29 June 2015
The Electricity Ministry began operating ten new mobile electricity production units with a total capacity of 250 MW. The units are placed in Assiut, the Red Sea governorate, and Minya to respond to higher electricity demand during the summer months. This comes as part of the Ministry’s plan to improve services in Upper Egypt and account for an expected supply drop from the Aswan High Dam. (Read in Arabic)

Electric Utility Agency studies 10 renewable energy licenses
Al Borsa | 28 June 2015
The Electric Utility and Consumer Protection Agency is studying, today, ten applications for temporary operating licenses submitted by renewable energy companies to establish plants operating at a total output of 450 MW, says agency director Hafez Salmawi. (Read in Arabic)

INFRASTRUCTURE

USD 225 mn Saudi loan to complete Abo Aouikal plant
Al Borsa | 29 June 2015
The Ministry of Housing received a USD 225 mn load from Saudi Arabia to complete the Abo Aouikal water plant project. The project will begin next August with an output power of 500,000 m3/d. (Read in Arabic)

Al-Futtaim Real Estate funds EGP 10 mn pedestrian bridge
Amwal Al Ghad | 29 June 2015
As part of their social responsibility program, the Al-Futtaim Real Estate company are funding an EGP 10 mn pedestrian bridge crossing over the Ring Road from Cairo Festival City Mall, said managing director Mohamed Al Mekawy. The bridge will be designed and built by the Engineering Authority of the Armed Forces. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Agriculture Ministry sets plan for Toshka crops
Al Mal | 29 June 2015
Reviving the Toshka project is vital, Agriculture Minister Salah Helal said during a visit there with other cabinet members. Helal said that wheat, fava beans, beets, and maize are amongst the crops that could be grown in Toshka. The Minister added that there are plans to build a slaughterhouse there as well with access to commercial centres. (Read in Arabic)

REAL ESTATE & HOUSING

EGOTH offers the Cairo Cosmopolitan Hotel for development and managers
Al Mal | 29 June 2015
EGOTH is offering the downtown Cairo Cosmopolitan Hotel to investors to develop and manage it. The decision came after the Tourism Ministry decided to withdraw funding for the hotel and focus instead on a promotional campaign. EGOTH will present the hotel to prospective developers in ten days. (Read in Arabic)

TOURISM

Tourism Federation requests activation of Supreme Tourism Council
Daily News Egypt | 28 June 2015
The Tourism Federation is moving on with the setting up of the Supreme Tourism Council even though it is still awaiting official activation. DNE reports that the Chairman of the Egyptian Federation of Tourism Chambers Elhamy El Zayat “believes that the convening of the Supreme Council for Tourism is the only way to eliminate the sector’s crises from the roots.” The topics on the Federation’s agenda include the implications of the labour law, taxes, and incentives from the state. The Federation’s board members do not know when the first meeting of the supreme council will take place, but believe they must be ready when the cabinet calls for a meeting. (Read)

Revenue per available room in Luxor to drop by 28%, Colliers International expects
Daily News Egypt | 28 June 2015
Revenue per available hotel room in Luxor is set to drop by 28% y-o-y following the thwarted terrorist attack earlier this month, Colliers International expects, as reported by DNE. Occupancy is also set to remain in single digits at 8%. “Ramadan would have a negative effect on domestic demand, however European demand will continue to grow stronger than in 2014,” Colliers’ report read noting that occupancy in Hurghada and Sharm El Sheikh is set to be at 76% and 65% respectively. (Read)

Tourism Promotion Authority contracts kiteboarding champion to promote Egypt
Egypt Independent | 29 June 2015
Kiteboarding world champion Karolina Winkowska signed a contract with the Egyptian Tourism Promotion Authority to promote Egypt as a tourist destination. Winkowska will “promote beach tourism and attract tourists to Egyptian destinations,” said Samy Mahmoud, Chairman of the Authority. The agreement includes Winkowska’s participation in the Ford Cup in Poland, as well as her participation in films that promote various tourist destinations in Egypt on YouTube. (Read)

TELECOMS & ICT

TE tasks Pharos with estimating the maximum discount it can offer for its networks
Amwal Al Ghad | 29 June 2015
Telecom Egypt has tasked Pharos with estimating maximum possible discount the company can offer for its network infrastructure, sources told Amwal Al Ghad. The assessment is set to take between three to seven days. Amwal Al Ghad also reports that another company will be tasked with estimating the proportion of network rental cost to the final price the customer pays for internet service. (Read in Arabic)

TE Data tasks Masary with bill collection
Amwal Al Ghad | 29 June 2015
TE Data and Masary signed a cooperation protocol allowing customers to pay their internet bills through 10 thousand Masary outlets throughout the country, according to Masary managing director Mohamed Nagi. (Read in Arabic)

EGP 3.5 bn on developing network last year, says Vodafone
Amwal Al Ghad | 29 June 2015
Vodafone Egypt invested EGP 3.5 bn on developing its network last year, says executive director Ahmed Essam. Vodafone Egypt aims to spend EGP 9.5 bn on development in the years 2014-2016. The company is 80% ready for 4G services, he added. (Read in Arabic)

TE reaps 67% of mobile market profits
Amwal Al Ghad | 29 June 2015
Telecom Egypt is the ultimate beneficiary of 67% of all profits generated by Egypt’s mobile market, Ahmed Essam, executive director of Vodafone Egypt, revealed in a press conference yesterday. The profits consist of the cost renting their infrastructure, and their shares in Vodafone Egypt, he added. Essam highlighted that excluding TE’s 45% shares in Vodafone would mean that they would control 40% of mobile market profits. (Read in Arabic)

AUTOMOTIVE & TRANSPORTATION

Car manufacturers complete new sector development strategy
Al Borsa | 29 June 2015
Car manufacturers at the Chamber of Engineering Industries completed a strategy to develop the car manufacturing industry ahead of their meeting with Trade and Industry Minister Mounir Fakhry Abdel Nour next week. The strategy involves granting car manufacturers a sales tax exemption, and raising the minimum local component, currently at 45%, to 58% in five year increments over a 15-year timeframe, said chamber head Hamdi Abdel Aziz. The manufacturers also suggested applying a 30% sales tax on local and domestic cars, without changing consumer price. (Read in Arabic)

USD 600 mn to restore Ramsis-Heliopolis tram
Al Mal | 29 June 2015
The National Authority for Tunnels seeks casting a tender in 3 months to restore the Ramsis-Heliopolis tram line, with a preliminary cost of USD 600 mn. The Cairo Governorate had agreed to transfer control of tram lines from the Public Transport Authority over to the National Authority for Tunnels, which operates under the Ministry of Transportation, to handle their development. (Read in Arabic)

BANKING & FINANCE

Mortgage finance initiative undermined by bureaucracy, high interest rates
Daily News Egypt | 28 June 2015
The initiative to expand mortgage financing in Egypt is facing a number of impediments halting its growth, Federation of Egyptian Chambers of Commerce member Alaa Fikri said.  Bureaucracy and the large number of documents required are coupled with high interest rates curbing the growth of mortgage financing especially as obtaining land remains cumbersome. Expanding the system would increase access to a larger segment of customers and allow real estate developers to generate a quicker return from projects, Fikri added. (Read)

Ahli United Bank studies acquiring Omar Effendi branch
Al Mal | 29 June 2015
The Ahli United Bank is studying acquiring a branch of Omar Effendi in exchange for debts upwards of EGP 50 mn, says AUB’s legal council Mostafa Tamer. The bank received a final court ruling against the Omar Effendi company to pay its debts, he added. The bank will avoid branches of special nature or of historic significance as to not diminish their worth, added Tamer. (Read in Arabic)

4% expected growth in GDP by end of year
Al Borsa | 29 June 2015
Economic performance indicators have improved noticeably this fiscal year, said Minister of Investment Ashraf Salman, expecting a 4% growth rate in GDP. Unemployment is down to 12.8% as of March 2015 compared to 13.6% in June 2014, he added, citing Egypt’s improved credit ratings as proof of Egypt’s economy experiencing radical shifts. (Read in Arabic)

Egypt seeks EGP 400 bn in domestic investments
Ahram | 29 June 2015
Egypt aims to collect EGP 400 bn in domestic investments in the new fiscal year to achieve a targeted 5% growth rate, says Minister of Investment Ashraf Salman. Egypt successfully attracted USD 8 bn in direct foreign investments last year, and aims for USD 12 bn next year, Salman added. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Chinese contributions in Leather and Tanning City project
Amwal Al Ghad | 29 June 2015
Minister of Trade and Industry Mounir Fakhry Abdel Nour discussed the possibility of utilizing the advanced technology possessed by Huajian Group in the field of leather and tanning, and their expertise creating a dedicated leather city in Ethiopia, to create the leather city planned for El Roubky. Egypt possess a great chance of creating the biggest specialized industrial zone to produce leather, according to Zhang Huarong, president of Huajian. (Read in Arabic)

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Works to develop Tahrir Square will be completed next week, the Governor of Cairo said. The development works include placing an Egyptian flag on a 45-metre-high staff along with adding more trees and green areas.

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