TL;DR

Ismail gov’t will present its legislative and policy agenda to the House next week. (What We’re Tracking)

Finance Ministry prepares budget scenario for devaluation. (Speed Round)

China Development Bank transfers USD 1.4 bn to CBE, state banks. (Speed Round)

GM, LG may idle factories in Egypt due to FX crunch. (Speed Round)

Al Ahly pulls out of CI Capital bid, saying due diligence window isn’t sufficient (Speed Round)

European wheat suppliers feel the pressure after Egypt’s two nixed tenders. (Speed Round)

Could a secondary bond market be on the horizon? (Speed Round)

Hike in customs tariffs will see prices rise only 4-7%. (Speed Round)

Eni to boost production at Noras, Shell eyes new investments in Egypt. (Energy)

French industrial zone in Egypt to be announced “within days.” (Egypt Politics + Economics)

Serry Siam, former head of Court of Appeals, resigns from House of Reps. (On Your Way Out)

By the Numbers

WHAT WE’RE TRACKING TODAY

Foreign Minister Sameh Shoukry is still in Washington today for the third and last day of talks with Secretary of State John Kerry, National Security Advisor Susan Rice and a number of congressmen, according to a ministry statement.

A UK trade envoy is also still in Cairo for a weeklong visit to discuss investment opportunities. British firm CAD CAM Automotive, one of the companies in the accompanying delegation, expressed willingness to partner with Egypt (more in Automotive + Transportation). We’ll be on the lookout for updates from the visit.

The Business News Summit on Capital Markets and Financing Growth takes place today at the Nile Ritz-Carlton, Cairo. Speakers include Investment Minister Ashraf Salman, Housing Minister Mostafa Madbouly and Finance Minister Hany Dimian.

The 2016 Solar Power North Africa Conference takes place in Cairo today and runs until Thursday 11 February.

Voters in New Hampshire are casting ballots today in the first primary in the U.S. presidential election season. The first polling stations open at midnight Eastern time (or about 7am CLT). Donald Trump leads the Republican field heading into the primary despite some softness in his numbers over the weekend, while Bernie Sanders is polling significantly ahead of Hillary Clinton with New Hampshire voters, according to CNN. Clinton’s staff is already talking about a potential shakeup after NH, Politico reports. Meanwhile, Bloomberg owner Michael Bloomberg has confirmed to the FT that he’s considering entering the race as as a third-party candidate, saying: “I find the level of discourse and discussion distressingly banal and an outrage and an insult to the voters.”

ON THE HORIZON

Prime Minister Sherif Ismail will present the government’s agenda to parliament next week, according to a government source speaking to Al Masry Al Youm. Cabinet has finalized its plan and will present it to the House over two sessions. Speaking on the likelihood of the House rejecting the widely expected value-added tax, Investment Minister Ashraf Salman said the measure was part and parcel of the government’s agenda and that rejecting it would mean rejecting the whole program. He expressed confidence that it would be approved, Al Mal reports. The Tax Authority and the State Information Service launched a campaign to raise public awareness of the VAT last week, partly to avoid the fate of the Civil Service Act, a key part of the reform program that the House has so far refused to pass. Criticism of the civil service act by bureaucrats and MPs has been due in part to a lack of information about its provisions, cabinet has suggested: The Cabinet’s Information and Decision Support Center has released results of a recent survey that showed 77.1% of bureaucrats do not have a basic understanding of the act, Al Borsa reports.

Speaking of the House, President Abdel Fattah El Sisi will address parliament on 13 February.

The Egyptian Capital Market Association (ECMA) will hold a meeting next week to discuss support mechanisms for brokerages struggling as revenues have fallen off the proverbial cliff with anemic trading volumes. The meeting is set to include brokerage firms, individual investors, financial institutions and investment funds and portfolio management companies, ECMA Chairman Mohammed Taymour tells Daily News Egypt.

The Egypt Energy Investment Summit is scheduled for 16-18 February at the Nile Ritz-Carlton, Cairo.

Egypt will talk trade and investment with Africa in Sharm El Sheikh on 20-21 February at the Africa 2016: Business for Africa, Egypt and the World conference.

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LAST NIGHT’S TALK SHOWS

The bulk of Lamees El Hadidy’s Hona Al Assema program on CBC Egypt was focused on the work of an NGO called the Education First Initiative, which works with youth in Upper Egypt. El Hadidy hosted students from the program, as well as its general coordinator, Randa Kamel. The program seeks to not only provide additional training to students, but to administrators and teachers as well, some of whom have previously been on El Hadidy’s program. (Watch in Arabic the first segment, running time: 15:40 and the second, running time: 14:30)

El Hadidy also took note of the press conference held yesterday by Minister of Interior Magdy Abdel-Ghaffar with regard to the ongoing investigation into the death of Italian graduate student Giulio Regeni. El Hadidy carried a segment of the conference (running time: 3:23). Ahram Online has a summary of the minister’s statement in which he is quoted as saying that the authorities are treating the investigation “as if it were a case involving an Egyptian… We are still waiting for the forensics authority’s report to show whether [the victim] was tortured.”

Amr Adeeb commented on yesterday’s resignation of presidentially-appointed MP Serry Siam, saying Siam had been unhappy over not being elected Speaker of the House. (Watch embedded video in Arabic, running time: 10 minutes)

Ibrahim Eissa on Al Kahera Wal Nas spent the majority of his program discussing public sector reform, hosting in his studio Dr. Ahmed El Borai, law professor and head of the social legislation department at Cairo University’s Faculty of Law, and formerly Minister of Manpower and Immigration (2011) and former Minister of Insurance and Social Affairs (2013). The two discussed the political difficulties involved with civil service reform, considering the large number of public sector employees, which El Borai places at roughly 7 mn. (Watch the interview in Arabic, running time: 32:08)

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SPEED ROUND

The devaluation is nigh? Egypt will start FY2016-17 at an exchange rate of EGP 8.75 per USD 1, compared to EGP 7.75 per USD 1 in FY2015-16, two government sources told Reuters, “indicating the central bank is preparing to devalue.” The newswire could not immediately reach the Central Bank of Egypt for comment, but the Finance Ministry issued a statement late yesterday dismissing that devaluation is imminent. The emailed statement noted that the Finance Ministry plans for multiple budget scenarios as a matter of routine. The statement also notes that the central bank has no role formulating the state budget and is the sole, independent architect of monetary policy.

The parallel market has beaten the CBE to the punch, with the USD now going for EGP 8.75, Al Mal reports. This comes despite a stark warning by the central bank last week to the FX bureaux to abide by a cap on the parallel rate of EGP 8.65 or face the revocation of licenses revoked. Exchange operators tell Al Mal that a spike in demand for USD this week, resulting from speculation by FX currency holders, will drive up the exchange rate through to the end of the week. This would imply that market forces are beyond the control of exchange officers, the paper says.

The China Development Bank has now transferred a total of USD 1.4 bn to the Central Bank of Egypt and state-owned banks as part of the USD 1.8 bn loan agreements signed during President Xi Jinping’s visit last month, Al Mal reports. USD 1 bn will be used by the CBE to shore up FX reserves, while USD 700 mn will go to NBE and USD 100 mn to Banque Misr, CBE Governor Tarek Amer tells Al Mal. The CBE recently announced that net FX reserves reached USD 16.5 bn at the end of January, up from USD 16.4 the previous month.

General Motors could temporarily idle its factory in Egypt this week if letters of credit are not issued to clear production inputs and completely built up (CBU) imports, a company source tells Al Borsa. Its banks have reportedly stopped issuing further LCs while some of its production inputs languish in customs. The source stated that GM downing tools at the factory would be disastrous to the domestic auto market as it holds a 23.8% market share. Reuters has coverage in English. Meanwhile, LG, which had warned last week that it may face a shutdown if LCs were not extended, has reportedly shut down its plant in Tenth of Ramadan City, Al Masry Al Youm reports.

NBE’s Al Ahly Capital has withdrawn its offer to acquire 100% of CIB subsidiary CI Capital as Al Ahly’s 45-day due diligence requirement was longer than “the transaction timeline … previously discussed” with rival bidder OTMT, according to a CIB press release. CIB gave Al Ahly one week to complete due diligence after Al Ahly submitted a non-binding offer earlier yesterday, but Al Ahly pulled its bid after saying it needed “at least 30 days,” leaving OTMT yet again the sole player looking to acquire CI. Egyptian Financial Supervisory Authority chief Sherif Samy weighed in, saying CIB has the legal right to determine the duration of the due diligence process. He adds that CIB’s shareholders do, however, have the right to block CIB’s decision on Al Ahly and reject the OTMT-Beltone offer through a general assembly meeting, Al Borsa reports.

NBE’s move on CI Capital was an attempt to stop “certain people” from acquiring a toehold in the banking industry, sources tell Al Arabiya’s Khaled Hosny. The story states the obvious as it notes Naguib Sawiris has been looking to own a bank (commercial or investment) in Egypt for some time, but that the CBE had repeatedly refused to issue new commercial banking licenses. NBE’s run at CI Capital through its investment banking arm should be viewed as an attempt to prevent Sawiris from sidestepping the “no new licenses” bit, the author implies, apparently not quite understanding the difference between commercial and investment banks — and not addressing why, if that’s NBE’s calculation, it did not step-in to block Sawiris’ OTMT (and ACT Financial) from acquiring Beltone Financial.

Paris wheat fell to the lowest level in more than 16 months after Egypt cancelled two import tenders, “fueling concern more European supply will pile up,” according to Bloomberg. “Egypt is spooking the market as they clamp down on wheat specs … There is plenty of wheat around and because no one will pay up for it, only a severe weather event could trigger a sustainable rally,” INTL FCStone Inc wrote. Al Borsa is reporting that Black Sea wheat shipments have fallen USD 1 to USD 181 as a result of Egypt’s cancelled tender, citing a report by Russia’s Institute for Agriculture Market Studies. Egypt is the largest importer of Russian wheat.

Hike in customs tariffs will only raise prices 4-7%, Federation of Egyptian Industries (FEI) Chairman Mohamed El Sewedy says. According to Al Mal, El Sewedy also said he refuses a blanket ban on imports, which would destroy domestic industry, but believes that the most recent import restrictions will improve the quality of products on offer domestically. The custom tariff increases would be for goods which can be sourced domestically and for better prices than imports, said the Magdeldin Manzallawi, head of the FEI’s Customs Committee. These and other import policies have driven some traders to explore shifting gears and invest in manufacturing, he adds.

The feed-in-tariff (FiT) agreements will provide for a Switzerland-based dispute-resolution mechanism with the Electricity Regulation Authority’s approval, Al Borsa cites a copy of the final draft of the agreement it reportedly obtained. The terms of the FiT are currently being revised by the State Council after international institutions had requested changes to them. Al Borsa writes that the amendments also include a requirement that investors open an EGP 720k letter of credit for every 1 MW of their investment during the construction process, an amount that will be refunded once operations begin.

The Investment Ministry held a meeting with the Finance Ministry and the CBE to discuss how to kickstart the secondary bond market on the EGX within two to three weeks, Investment Minister Ashraf Salman tells Daily News Egypt. Salman talked of steps to ‘activate’ the sukuk market, on which he expects the Finance Ministry to make a final decision and present to parliament within three weeks. Salman said the ministry is set to identify within three months all state-owned companies that could be to be offered on the EGX. “We will not consider financing our national projects through IPOs because they will be offered mainly to the private sector,” he adds. Salman adds that the Saudi-Egyptian Coordination Council will hold a meeting on 25 February (a meeting scheduled for 10 February was cancelled) to discuss an MOU for direct investment as well as contracts to export petroleum products.

Enacting the Movable Assets Act is at the top of the Egyptian Financial Supervisory Authority’s (EFSA) agenda this year, chairman Sherif Samy tells Daily News Egypt. EFSA plans to issue the executive regulations in June 2016 and send them to the Investment Minister for approval. The legislation will help provide SMEs with access to funding by allowing them to collateralize assets such as equipment, inventory and crops. Next on the agenda are amendments to the Capital Market Act, which Samy hopes will open the gate for investment opportunities like sukuk. Finally, EFSA is looking into amendments to the Insurance Act, such as opening adjusting rates on insurance company investments and directing them to different sectors. Samy adds that EFSA’s next meeting will focus on approving regulations for the three funding instruments (covered bonds, bonds with no credit rating and the charity investment funds) approved by Investment Minister Ashraf Salman last month.

The Egyptian Trade Union Federation (ETUF) has filed a case for the dissolution of independent trade unions in Egypt, Mada Masr reports. ETUF’s lawyer Ahmed Mortada Mansour (the son of the high-profile Mortada Mansour) wants to outlaw the unions and “shut down all funds and finances associated with the EFITU and its affiliates and to prevent independent unions from establishing financial accounts or collecting money.” While ETUF claims the unions are illegitimate, defense lawyers say the government’s appointment of ETUF leadership violates the law. The case began on Sunday but was adjourned to March 13 to give ETUF time to present documents from its last elections in late 2006. The case was filed by ETUF-affiliated General Union of Tax, Finance and Customs Employees against the Egyptian Federation of Independent Trade Unions and its affiliates.

The UAE announced a cabinet shuffle at its World Government Summit in Dubai. A series of tweets by Dubai ruler Sheikh Mohamed Bin Rashed said the shuffle — approved by UAE President Sheikh Khalifa Bin Zayed — will focus on moving the UAE to a knowledge-based economy. The shuffle will see new faces in cabinet and the merger of portfolios. The Development Ministry will merge with the Foreign Ministry, while the roles of the environment, labor and social affairs ministries will shift. The UAE will also establish councils on youth and science to advise the government on policy.

Present at the UAE summit yesterday: Prime Minister Sherif Ismail and Planning Minister Ashraf Al Arabi, who met with leaders from the UAE to discuss strengthening ties and cooperation on development projects, Al Ahram reports.

THE MACRO PICTURE

It was yet another bad day for markets on Monday, with European stocks falling to their lowest since 2014 and Greek stocks down to numbers not seen since 1990, Bloomberg reports. The MSCI Emerging Markets Index fell 0.5 percent overnight in Asia and US stocks took a pounding amid recession worries, Reuters reports. Not helping matters: tumbling oil prices after a meeting between Saudi Oil Minister Ali al-Naimi and his Venezuelan came out with no solid steps to shore up the market, according to Bloomberg.

In a “summary of opinions” (pdf) released by Bank of Japan yesterday after it slashed interest rates, a minority committee feared negative rates could backfire, setting off a global race to set the lowest interest rates, according to the FT (paywall). And it’s already started. According to Bank of America and JPMorgan Chase, if the U.S. economy weakens enough, the Fed may consider pushing rates below zero, Bloomberg reports.

Trouble ahead for U.S. multinationals. Companies like Google, Facebook and Amazon will soon be forced to publically disclose their earnings and tax bills in Europe under legislation drafted by the European commission, Reuters and the FT (paywall) report.  In an effort to curb multinationals’ tax avoidance, which the European Parliament estimates is costing the EU countries EUR 70 bn a year in lost revenue, EU diplomats said on Monday that an agreement may be reached as early as March. Unsurprisingly, U.S. lawmakers are less than thrilled, according to the FT (paywall).

EGYPT IN THE NEWS

International press was still very much focused on the case of Giulio Regeni last night and into this morning, with the story making its way to the Financial Times in “Brutal murder threatens relations between Egypt and Italy” (paywall). And while Italy demands answers, Egypt is denying that the security services were involved in the incident, writes Reuters

It’s official: The foreign press has lost its mind over the Egyptian press losing its mind over RedCarpetGate. It’s almost embarrassing to list how many sites carried the news of a presidential motorcade driving over a red carpet at the inauguration of a housing project. The AP, BBC, the Guardian, NPR and even Mashable have stories on the local and social media frenzy left in the motorcade’s wake.

WORTH READING

All measures point to Egypt making a strong recovery, according to former Mexican President Felipe Calderon, who spoke at AmCham’s conference on “The Private Sector’s Role in Inclusive Growth” on Monday. Egypt shares circumstances similar to those Mexico faced when it suffered its own financial downturn, Calderon said, and the nation’s economic recovery came down to supporting SMEs through government-backed loans and central bank initiatives, in addition to facilitating investment by utilizing technology to cut red tape. Speaking on Egypt, he praised the government’s programs to attract investment and said new oil and gas finds will help bolster the country’s economic options, Al Ahram reports.

DIPLOMACY + FOREIGN TRADE

Egypt has pulled out of the grand East African regional power pool until its concerns over the use of the Nile waters have been addressed, All Africa reports. Egypt refused to sign and adopt the master plan for the power pool at the Council of Ministers’ meeting in Addis Ababa held by the 10 Eastern African Power Pool (EAPP) countries as the hydropower generation projects in Ethiopia and Sudan are on the Nile. The master plan, which has already been adopted by the member states, will be implemented despite Egypt’s protest, said Lebi Changullah, the secretary-general of the EAPP, who added that the Nile Initiative will address Egypt’s concerns over cutting Nile water flow. The regional power pool seeks to connect power lines between 10 East African countries.

An expanded delegation from the EU Parliament met with officials from the Trade and Industry Ministry to plan out a EUR 20 mn program to bolster trade and development projects, Al Mal reports. The program, which provides technical and logistical assistance to implement foreign trade policies and raise standards and measurements to comply with those of EU regulators, will be announced this Thursday, said head of the Development Projects Departments at the Trade Ministry Hala El Shawarby. The delegation also met with Investment Minister Ashraf Salman on providing assistance for implementing the one-stop shop policy, AMAY reports.

President Abdel Fattah El Sisi gave an interview to French weekly news magazine Jeune Afrique ahead of the Africa 2016 Forum in Sharm El Sheikh on 20-21 February, according to a statement from Ittihadiya. The interview tackled developments in Egyptian-African relations in light of Egypt’s membership to the UN Security Council and its AU Peace and Security Council membership, which starts in April. The interview also touched on counter-terrorism activities and the situation in the region, particularly Libya and Syria. No word on when the interview will be published, but we’ll keep an eye out for it.

ENERGY

ACWA Power inks Dairut power station agreement at end of month
The Electricity Ministry will sign the final agreement with ACWA Power for the Dairut power station at the end of this month at a total cost of USD 2.5 bn, sources tell Al Mal. Negotiations over pricing the electricity are still underway. 10 companies qualified for the 2,250 MW power station, but only ACWA submitted technical and financial proposals. The source says this was due to uncertainty over fuel supply and its availability. The station is the first to be built under a BOO system, with operations reaching full capacity by 2018. (Read in Arabic)

Eni to boost production of Noras field to 500 mn cubic ft by the end of 2016
Eni plans to boost production on Well-4 of the Noras field to 75 mn cubic feet of gas per day in April and increase production on the field to 500 mn cubic feet by the end of 2016, according to an EGAS official speaking to Al Borsa. The source adds that three of the field’s wells have come online, which helped compensate for declining outputs in maturing fields. EGAS had reached a pricing agreement for the field’s gas with Eni, with the agreement awaiting final approvals, said an EGAS source. (Read in Arabic)

Shell looking to increase investments in Egypt
Shell Egypt is looking to expand in the domestic market despite challenges facing the industry, including the FX shortage and unstable exchange rates, Al Borsa quotes Managing Director Saher Hashem as saying. The growth will be achieved through additional investments and “innovation” in marketing schemes, he adds. (Read in Arabic)

El Sisi talks Daba’a, renewables with electricity minister
President Abdel Fattah El Sisi met with Electricity Minister Mohamed Shaker to talk about the negotiations with Russia over the Dabaa nuclear power plant and other energy issues, according to an Ittihadiya statement. The agreement’s technical and financial clauses are currently being discussed, according to Shaker, taking into consideration the “highest and most stringent nuclear safety and security criteria.” The minister also touched on a number of solar- and wind-powered plants in the pipeline. El Sisi lauded the success of the emergency power plan to quell outages in summer 2015 and “instructed the continuation of work at the same rates of implementation during the next summer.”

MANUFACTURING

National Cement denies Chinese investment
China’s AVIC did not enter into a partnership with National Cement Company, the company tells the EGX. National Cement is denying a report that AVIC has pumped EGP 2 bn to develop the company’s factories, adding that its chairman has not made any official statements on the matter. (Read in Arabic)

TIDA plans to invest in Sinai industrial zone
China’s TIDA has expressed a desire to invest in the Abu Zineiba industrial zone in Sinai, says head of the Industrial Development Authority (IDA) Ismail Gaber. If an agreement is reached, the company would develop industrial infrastructure and utilities in the zone, Geber adds after a meeting with a delegation from the company and the governor of South Sinai. IDA plans to develop 12 metallurgical industries complexes in the zone. TIDA will conduct feasibility and other studies on the project next month, said TIDA’s CEO. (Read in Arabic)

HEALTH + EDUCATION

Some prices to increase within days, Health Ministry source says
Health Minister Ahmed Emad is set to increase the prices of some drugs domestically to trim the losses of domestic pharmaceutical companies, a source at the ministry tells Al Shorouk. The ministry committee that sets drug prices will reportedly look into the production cost of a number of medications, with a source saying those priced under EGP 10 are set for an increase. The low prices meant over 5,000 medications were sold at a loss, the deputy head of the Pharmaceuticals Chamber tells Al Shorouk. He also adds that while some domestic shortages are caused by the low prices, others are due to the shortage of raw materials internationally. (Read in Arabic)

India’s Pharmed HC applies to register cancer treatments in Egypt
Pharmed HC has submitted a proposal to the Health Ministry to register cancer therapies ahead of manufacturing them in Egypt, board member and shareholder Alaa Burhan says. Indian investors have faced difficulties registering medications manufactured in New Delhi in Cairo due to fears over quality, says CEO Mohamed Mabrouk, despite advances in the field that could allow India to enter the U.S. and European markets. India’s Hetero holds an 85% stake in Pharmed HC. (Read in Arabic)

Eleven companies register to manufacture Harvoni
The Egyptian Drug Authority has accepted 11 requests to manufacture Harvoni domestically, according to Osama Rostom, board member of the Pharmaceuticals Chamber at the Federation of Egyptian Industries. The companies include Pharmed HC, Marcyrl, Mash Premiere and Magic Pharma, says Rostom. The drugs can be expected on the market within weeks, with prices ranging from EGP 1,000 to EGP 1,500, compared to EGP 19,000 for the U.S. equivalent, he added. (Read in Arabic)

REAL ESTATE + HOUSING

Red Sea Development Authority completes first phase of Bedouin housing project
The Red Sea Development Authority has completed 200 homes in eight areas in Marsa Alam and Halayeb and Shalatin as part of the Bedouin housing project, according to authority head Hosny Mansour. The whole project includes 376 homes at a total cost of EGP 47.1 mn, he adds. The construction is divided between four companies, the most notable of which is Arab Contractors. (Read in Arabic)

NUCA amends pricing mechanisms for land tendered with Investment Ministry
The New Urban Communities Authority (NUCA) has amended the pricing mechanisms for land tendered in conjunction with the Investment Ministry under the one-stop-shop placeholder policy. These amendments, which must be ratified by the cabinet, include setting the price of land based on the date the MOU was signed (not the contract) and eliminating fees on changing the commercial purpose of the development with provisions on meeting building and environment codes, according to NUCA deputy head Raga Foad. (Read in Arabic)

TELECOMS + ICT

ICT Ministry nears completion of electronics manufacturing framework
The ICT Ministry will complete laying down a framework to govern domestic manufacturing of electronics in two weeks, says ICT Minister Yasser El Qady. The framework will include provisions for software development, establishing a regulator for the market, setting up a list of products to be manufactured and a list of companies that will operate in the sector. El Qady says Egypt hopes to make USD 3 bn in exports through the development of an electronics manufacturing sector, which President Abdel Fattah El Sisi had called for during last year’s Cairo ICT Conference. (Read in Arabic)

AUTOMOTIVE + TRANSPORTATION

CAD CAM Automotive expresses desire to develop an Egyptian-British car
UK-based auto design and development firm CAD CAM Automotive has expressed a desire to partner with Egypt to develop an Egyptian-British car, says Egyptian Businessmen’s Association director Mohamed Yussef. Speaking at a meeting with the Egyptian-British Chamber of Commerce, Yussef says the company, which developed cars for Iran in the past, would also like to invest in engineering consulting, technical training and renewable energy development. The company was among the nine firms that joined MP Jeffrey Donaldson on his trip to Egypt this week. (Read in Arabic)

BANKING + FINANCE

Beltone managing two new IPOs, five acquisitions in 2016
Beltone Financial is managing two new IPOs and five acquisition worth a total value of EGP 5 bn this year, Director of Investment Banking Mohamed Al Akhdar tels Al Borsa. The IPOs are in the houseware and building material sectors, while the acquisitions are in the food, real estate, consumer and health sectors. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Cairo Chamber of Commerce yet to assess new import regulations
The Cairo Chamber of Commerce denied it issued any official statements regarding the new import regulations. All opinions expressed are personal, an official statement notes, but the chamber is still assessing the measures and their potential impact. The Cairo Chamber of Commerce asked all importers to refrain from using its name when expressing their personal opinion, Al Masry Al Youm reports. (Read in Arabic)

LEGISLATION + POLICY

Children will be allowed to leave the country with foster parents – Waly
New amendments to the Child Act will allow children to leave the country with their foster families, Social Solidarity Minister Ghada Waly says. The government is amending the executive regulations of the legislation to better accommodate the needs of children domestically, she says. The amendments will also allow families to foster children as young as three months old and raises the fostering age limit to 60 from 55 years old. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

French industrial zone in Egypt to be announced within days
The French Chamber of Commerce in Egypt (CCIFE) will announce the details of a proposed French industrial zone within the next few days. The announcement is set to coincide with the French President Francois Hollande’s visit to Egypt. The industrial zone was announced in a meeting with GAFI and CCIFE along with the Federation of Egyptian Industries, and completing the procedures to establish it should take two months. (Read in Arabic)

Confusion over Investment Act is becoming a hurdle for GCC investors
Jostling between the Investment Ministry and governorates over the jurisdiction of land tenders under the Investment Act is causing problems for a number of GCC agriculture investors in Egypt. The Investment Act grants investors, whether domestic or foreign, the right to full ownership of land and facilities. However, under the provisions of Article 12 (included as a probable comprise in last March’s amendments to the act), governorates and other authorities have the right to designate land under their jurisdiction and apply different legislation for investments on those lands, such as the Desert Lands Act, which only permits 49% ownership by foreigners. The amendments had upheld the ownership contracts signed prior to the amendments, but GCC-based agriculture investors including Al Rajhi Group and the UAE’s Al Zahra Group, had not completed ownership contracts at the time of the amendments and must fall under new jurisdictions. Their cases have now been taken up by the cabinet’s investors’ disputes committee. (Read in Arabic)

Customs Authority to form new unit to combat evaders
The Customs Authority will form a new unit to combat customs evasion that will also coordinate efforts with other authorities to enforce customs regulations, Al Mal reports. The new unit will have designated departments for monitoring violations of monetary policy, inspection of goods, import and export regulations and health and safety. (Read in Arabic)

ON YOUR WAY OUT

Representative Serry Siam resigned suddenly yesterday from parliament. The presidentially appointed MP, who was considered one of the most notable legal minds in the House of Representatives and was former head of Egypt’s Court of Appeals, said in an interview that his legal experience was not adequately used and noted he had been denied appointment to a committee to draw up the parliament’s bylaws. In other parliament news, a number of MPs are calling for those accused of terrorism charges be tried in military tribunals.

Qatar Petroleum is buying a 30% stake in three deep-water offshore leases in Morocco from Chevron Morocco Exploration, a subsidiary of Chevron Corporation, Reuters says. The areas are Cap Rhir Deep, Cap Cantin Deep and Cap Walidia Deep. The sale will leave Chevron with a 45% stake in the leases while remaining the operator, with Morocco’s Office National Des Hydrocarbures Et Des Mines retaining a 25% stake.

The Antiquities Ministry wants to see charges brought against the creator of the sting video of criminals selling pieces of the Pyramids, Shorouk News reports.