TL;DR

GM, LG haven’t closed their doors, Pepsi and Coca-Cola aren’t delighted, and medicine is disappearing from shelves. (Speed Round)

Chambers of commerce call for cabinet shuffle amid criticism of government policy. (Speed Round)

Government expects crude to average USD 40-50/bbl next year. (Speed Round)

Headline inflation down, core up. (Speed Round)

Cabinet meeting talks real estate regulations, allocating land to industrial zones without fees. (Speed Round)

CIB posts record FY2015 results, with net income up 26% y-o-y. (Speed Round)

Eni’s Egypt discover attracts investments, to finish second Zohr well in April. (Energy)

Power ministry to sign MoUs, loans with Japan during El Sisi’s February visit. (Energy)

EBRD provides USD 30 mn credit to Bank Audi-Egypt. (Banking + Finance)

By the Numbers

WHAT WE’RE TRACKING TODAY

The U.K. trade delegation wraps up its visit to Cairo today, which also happens to be the last day of Solar Power North Africa 2016.

ON THE HORIZON

Next week is looking packed with developments on the legislative and policy fronts:

• President Abdel Fattah El Sisi will address parliament on Saturday, 13 February.

• Prime Minister Sherif Ismail will present his government’s agenda to Parliament over two days at the end of the month, after initially announcing that it will take place next week, according to a statement from the cabinet on Al Borsa.
• The Egyptian Capital Market Association meets some time during the week to talk  bailouts for brokerages taking a hit from low trading volumes.
• The Egypt Energy Investment Summit runs 16-18 February at the Nile Ritz-Carlton, Cairo.
• Cabinet ministers from Egypt and across Africa will meet in Sharm El Sheikh on 20-21 February for “Africa 2016: Business for Africa, Egypt and the World.”
• The fifth Euromoney GCC Financial Forum takes place at the Four Seasons Manama in Bahrain on 23-24 February. Press release here, conference website here.

** DO YOU WANT TO READ OUR GCC EDITION? **

We’re opening the GCC alpha edition to everyone who has written in asking to be added to the list. You can also sign up via this link. The alpha edition will be published 2-3x weekly during the workday until mid-February, then move to a Sunday-Thursday publication schedule, delivered before 6am KSA / 7AM UAE.

LAST NIGHT’S TALK SHOWS

Our talk show coverage is taking its own three-day weekend this week. But that’s okay, because the lead talk show hosts do the same on Wednesdays .We’ll be back next week with our usual lineup.

** SHARE ENTERPRISE WITH A FRIEND **

Enterprise is available without charge — just visit our English or Arabic subscription page, depending on which edition you would like to receive. We give you just about everything you need to know about Egypt, in your inbox Sunday through Thursday before 7am CLT (8am for Arabic), and all we ask for is your name, email address and where you hang your hat during business hours.

SPEED ROUND

GM did not halt operations in Egypt, Federation of Egyptian Industries Mohamed El Sewedy tells Al Masry Al Youm. “I met with [GM Managing Director] Tarek Atta … he denied halting operations,” El Sewedy adds, explaining that GM’s factory only stopped operations “for three days” until the Customs Authority releases its raw materials “next week.” He expects the goods to be released by Saturday or Sunday.

…ditto LG: LG Egypt denied the “baseless rumours” that it would halt operations in Egypt or reduce their size, Al Masry Al Youm reports. The company says it maintains its commitment to the Egyptian market, its customers, and employees. However, the company implied operations were disrupted due to the foreign currency shortage, saying it expects operations to go back to normal “in the upcoming period.”

On a related note: PepsiCo and Coca-Cola have both complained to Al Borsa that they’re suffering from the FX crunch, but say operations haven’t been significantly disrupted.

Medicines are disappearing from shelves in Egypt, a Reuters report claims. Depreciation and the FX crunch scarcity are driving the domestic medicine shortage, Reuters’ Mostafa Hashem writes, making it “harder for Egyptian pharmaceutical companies to import active ingredients they need to make generic medicines.” Even though medicines are categorized as essential goods and have priority access to foreign currency, the weaker EGP made it more expensive to import active ingredients as selling medicines at government-fixed prices is becoming a loss-making endeavor. The result? A nationwide shortage of several medications. (Read)

Car assemblers cut production by 30%: The FX shortage has forced domestic car manufacturers to cut production by up to 30%, says head of the Transportation Division at the Federation of Egyptian Industries, Adel Badeir. Banks have been inconsistent in opening LCs for production requirements, he adds, which helped drive car sales to 180k units in 2015, according to Amwal Al Ghad. Badeir expects 150k car sales in 2016, despite manufacturers forecasting 300k car sales this year.

And while we’re on the FX crunch: The Central Bank Egypt (CBE) does not have a long-term plan to shore up reserves beyond hoping for tourism to pick up in the second half of the year and relying on remittances, an unnamed CBE official tells Al Borsa. Until then, the CBE will likely stay the course on import restrictions and international financing packages. Beltone’s Hany Genena suggests the CBE’s EGP 8.65 to USD 1 cap on the parallel market rate came as a precursor to devaluation. A Beltone research paper cited in Al Mal on Tuesday suggested the CBE was overstating the level of FX reserves.

Other economists share this view, telling Al Ahram’s Deya Abaza that Egypt is on track for a sharp EGP devaluation in 1H2016. Expect the exchange rate to drop to EGP 8 per USD 1 by the end of March end, if not sooner, an anonymous senior banker said. “Egypt’s government seems to be coming around to the view that maintaining an overvalued exchange rate is doing more harm than good to the economy … we expect devaluation to take place in the first half of this year, in a one-off move to an exchange rate of 8.5 pounds against the [USD],” Capital Economics’ Jason Tuvey comments. While devaluation is expected to drive consumer prices up, Tuvey expects Tarek Amer’s CBE to increase interest rates to maintain a grip on inflation rates.

** WE’RE HIRING — we have vacancies for business writers or research analysts to work on our GCC edition, with some contribution to the Egypt edition you’re reading right now. We’re looking for someone with writing chops, a strong interest in regional business and the desire to get in on the ground floor of something we think is pretty amazing. More details here.

---

The government should shuffle cabinet and merge the ministries of investment, industry and trade, the head of the Federation of Egyptian Chambers of Commerce said at a press conference yesterday. Ahmed El Wakeel was highly critical of the cabinet economic group’s perceived lack of cohesion and failure to move the needle on the economy, further taking issue with import restrictions. On another note, El Wakeel spoke of an agreement to form a Eurasian trade zone, which will include investments from Egypt, Russia, Belarus, and Kazakhstan. He stated that the agreement would need approval from the House of Representatives to take effect. 35-40% of production inputs must be sourced locally by foreign manufacturers in the zone, while Egyptian exports produced at the zone will not be subject to tariffs in these countries, he added.

Crude to average USD 40-50 per bbl next fiscal year, the Egyptian government expects: The Finance Ministry has begun a series of meetings with representatives from the Egyptian General Petroleum Corporation to agree on an oil price estimate for FY2016-17, a source tells Al Shorouk. The Finance Ministry is projecting oil will trade at an average of USD 40-50 per bbl, but EGPC sees it closer to USD 50 per bb. The source says EGPC is being more conservative with its estimate due to fears of what a sudden increase in global energy prices could do to the budget.

The wheat debacle has some concerned that EU countries could halt grain exports to Egypt completely, with Nader Noureldin, a former advisor to the supply minister and professor of agriculture at Cairo University, suggesting Egypt should increase wheat imports from Russia and Ukraine to replace French imports, Daily News Egypt writes.

CIB posted record results last night, with FY2015 net income up 26% y-o-y to EGP 4.73 bn and revenue advancing 32% y-o-y to EGP 10.2 bn. 4Q2015 net income jumped 11% y-o-y to EGP 1.15 bn while revenue rose 33% y-o-y to EGP 2.89 bn. Deposits climbed 27% in 2015 to EGP 155 bn while financing to businesses and individuals grew 18% to EGP 63 bn. The bank continues to “take a cautious approach to the general operational and economic landscape. We have acted prudently in increasing our provision reserves in the face of deterioration in key business sectors, building up a sector-leading non-performing loan coverage ratio of 188%.” After recapping both the changing macro and regulatory backdrops — including measures that could “increase the regulatory capital requirement” — the bank notes that “we are thus confident that our robust balance sheet positions us uniquely well amongst our local peers to face potential changes in macroeconomic factors and banking regulations, as well as swings in general corporate performance over the coming period.” The full release is here in pdf.

Ford will move forward with plans to assemble two models in Egypt and will be looking to ink an agreement with an established assembler to use their facilities, Al Mal reports. The shortlist of candidates includes the Bavaria Group, Nissan Motors Egypt, Suzuki-Egypt, and the Arab Organization for Industrialization’s Arab American Vehicle Company. Ford is completing a year-long feasibility study on the project, with plans to establish its own facility somewhere down the road, according to company sources.

---

White taxi drivers are planning to sue Uber and Careem in the Administrative Court for “operating without a license” — a move they must feel is easier than improving their standards to match those of Uber and Careem drivers. At a press conference held outside the Journalism Syndicate’s headquarters, taxi drivers beseeched President Abdel Fattah El Sisi and cabinet to block the apps, which they claim have shaved 30% off their revenues, Al Shorouk reports. Al Wattan has aired a video (runtime: 3:59) reportedly showing protesting cabbies ironically using Uber to ambush Uber drivers and handing them over to traffic police in a “citizen’s arrest”. One of the attacking taxi drivers in the video actually explains how easy and convenient it was to call Uber. “If we stop five of them, the rest will be scared,” said another.

Careem General Manager Hadeer Shalaby countered that the company has a license to operate as a tech company from the General Authority for Investment and is registered with the Commercial Registry and files tax returns. She added that the company is willing to sit down with protesting taxi drivers to work out a viable solution to their grievances to benefit both parties. Careem, which has been operating in Egypt since December 2014, has seen its business grow 50% month after month, Shalaby adds in a statement to Al Borsa.

---

Senior U.S. diplomat in town for talks: Ambassador David Thorne, the Senior Advisor to Secretary of State John Kerry, is in Egypt to meet senior Egyptian officials, business executives, and representatives of U.S. businesses operating in Egypt, according to the U.S. Embassy. He is also scheduled to travel to “Luxor to visit U.S. Agency for International Development-sponsored projects and highlight the critical role of Egypt’s cultural heritage and antiquities preservation as a vehicle to promote tourism and economic development.” Thorne met with Trade and Industry Minister Tarek Kabil yesterday, Al Masry Al Youm writes. Kabil reportedly asked Thorne to approve reducing the minimum Israeli content requirement to 8% from 10.5% and expand the program to other geographies in Egypt, the newspaper reports. More relevantly, Kabil also asked that the U.S. ease restrictions on Egyptian air cargo imposed in the wake of the Metrojet disaster. Al Borsa reports that Egypt also asked to include new categories of goods in the QIZ agreement. Thorne met with Ahmed Darwish, head of the Suez Canal Development Project, to discuss investment opportunities available to US companies, AMAY reports.

“This has to be a Libyan-led process:” Libya needs to form a unified government before the U.S. and its allies intervene militarily to combat Daesh forces operating in the country, Foreign Minister Sameh Shoukry tells Reuters’ Warren Strobel in Washington DC. International intervention without Libyan approval could backfire, Shoukry believes, given past interventions in the country, particularly after the toppling of Gaddafi. On Egypt’s human rights record, Shoukry rejected “broad generalizations and the use of numbers that are not authenticated or verified.” As for the case of murdered graduate student Giulio Regeni, the Foreign Minister dismissed “innuendoes” from some in Italy that security forces were involved in the incident, saying that “it’s unfortunate that he might have been subject of some form of criminality. And we hope that we will be able to come to the bottom of it and bring to justice whoever is responsible for his tragic death.” The interview was also translated to Arabic.

Headline inflation falls, core rises: Egypt’s headline consumer inflation rate fell to 10.10% in January from 11.06% in December, the CBE cites CAPMAS data as showing. The core inflation rate computed by the CBE increased to 7.73% in January from 7.23% in December.

Prime Minister Sherif Ismail’s cabinet held its weekly meeting on Wednesday. Key policy decisions taken at the meeting include:

• Ratifying the new real estate regulations drawn-up by the New Urban Communities Authority (NUCA) last October, which place the onus on NUCA to provide infrastructure on land to be tendered, establish a planning committee on all housing projects in Egypt, set guidelines for bidding on tenders, and streamline bureaucratic procedures;
• Allocating land in industrial zones to be tendered without fees as part of the incentives mandated by the Investment Act;
• Contracting the National Investment Bank’s NI Capital Asset Management with restructuring the Egyptian Electricity Transmission Company to boost efficiency;
• Amending the Environment Act’s executive regulations to classify coal and petroleum as production inputs instead of energy sources.

Nine members of the police service have reportedly been referred to the prosecutor on Wednesday in relation to the assault on physicians at the Matariya Teaching Hospital, Daily News Egypt reports. The prosecution general’s office decided to reopen the investigation into the case following news that the Doctors’ Syndicate would hold an emergency meeting on Friday, 12 February to discuss a nationwide strike in response to the assault, DNE writes in a separate piece last week.

THE MACRO PICTURE

U.S. Federal Reserve Chair Janet Yellen told Congress on Wednesday that global conditions, including higher risk stemming from conditions in China, the ongoing slide in equity markets, and higher credit costs for riskier borrowers “could weigh on the outlook for economic activity and the labour market, although declines in longer-term interest rates and oil prices provide some offset,” according to the FT (paywall). Yellen suggested that the Fed could delay, not abandon, the planned interest-rate increases in response to these conditions, according to Bloomberg.

Knock us over with a feather, oil is making headlines again. But it wasn’t bad news this time, with BP offering a positive outlook on the industry in light of rising demand, the FT (paywall) reports. “US oil producers will recover from the collapse in crude prices to 12-year lows and pump mns of barrels a day more over the next two decades amid resilient growth in energy demand,” in forecasts given by chief executive Bob Dudley. In contrast to the regular doom and gloom, BP argues the “downturn will be seen as a blip in the longer run.”

Maersk isn’t nearly as optimistic as BP, warning that business conditions are worse now than during the 2008 crisis “after it plunged to a large net loss as global trade growth ground to a halt last year,” the FT (paywall) writes. Group CEO Nils Andersen tells the FT: “It is worse than in 2008. The oil price is as low as its lowest point in 2008-09 and has stayed there for a long time and doesn’t look like going up soon. Freight rates are lower.” According to Anderson global trade conditions had been “abnormal” last year with imports to Europe, Brazil, Russia and west Africa all falling. It remains to be seen how this is slated to impact Egypt as Maersk is reportedly one of the largest “customers” of the canal, according to its website.

In other oil news, Italy’s Eni is said to be “is in the early stages of exploring a sale of gas and power retail assets as part of plans to reduce debt,” Bloomberg quotes people familiar with the matter. “If Eni goes ahead with the auction, the business could attract private equity firms and utility companies,” say the sources.

EGYPT IN THE NEWS

Foreign Minister Sameh Shoukry appeared to be everywhere last night, with the minister giving NPR an interview in which he says, “Egypt is certainly on its way to a full democratization.” Other highlights from the interview: “The government has secured a very high degree of security … We still have the occasional terrorist activity, by the [Muslim] Brotherhood, but that has been reduced considerably.”

The State Information Service sys Shoukry described his meetings with U.S. officials as “fruitful,” saying his meeting with Secretary of State John Kerry “did not focus just on the regional situation, but also on promoting economic development in Egypt and the US.” The pair held a press conference on Tuesday that left some members of the U.S. media bleating out the same old refrain: Kerry “appears incapable of making public comments about the situation in Egypt without describing a transition to democracy that exists only in his imagination,” writes Neil Hicks for the Huffington Post. “Egypt is going through a period of unprecedented state violence and mounting economic, political, and social instability. But according to Kerry, it’s just ‘going through a political transition.’”

Egypt has made it folks. Our very own jumping donkey is making foreign headlines. “A donkey has leapt to fame in a small Egyptian village by defying her species’ well-known stubbornness and jumping hurdles on command,” according to The National and The New York Post in their pickup of a story from the AP. The New York Post features several photos of the what now appears to be a regular show in the town of Al Arid.

WORTH READING

Yalla fe seteen dahya: Following World Economic Forum (WEF) founder Klaus Schwab’s commentary on the cancellation of a WEF MENA event originally planned to be held in Sharm El Sheikh — and amid persistent rumors here in Cairo that the event will take place in Qatar — we would argue it’s really no big loss. Our feelings on the matter are best conveyed through Naissance Capital CEO R. James Breiding’s hilarious takedown of Davos published in the Wall Street Journal in January 2013: “It is a puzzle even for many inside the WEF to explain how the organization’s founder and boss, Klaus Schwab, has achieved all this. He is an understated, un-charismatic, slightly awkward man. But if his genius for personal chemistry is elusive, his genius for strategic insights is self-evident. The WEF says it is there to improve the world, but it is really there to exploit rich people’s need to feel important… ‘Schwab discovered along the way that saving the world is really quite hard work,’ one longtime conference-goer said to me last year. ‘Vanity is much easier to sell.’” (Read The Unbearable Vanity of Davos)

DIPLOMACY + FOREIGN TRADE

Israel’s Foreign Ministry named David Govrin as Israel’s new ambassador to Egypt on Wednesday, Haaretz reports. “Govrin will replace Haim Koren, who asked to return to Israel after a two-year stint as ambassador in Cairo.” The appointment is still subject to cabinet approval, according to the piece.

Planning Minister Ashraf Al Araby signed an MoU to develop public sector human resources and administrative planning capabilities with the UAE’s Education Minister Hussein Bin Ibrahim Al Hamady at the World Government Summit, AMAY reports. The MoU will see the UAE provide training and expertise on using smart technology to improve government planning and efficiency.

The delegation of nine UK-based companies that visited Egypt this week have reportedly complained about the lack of clarity in the opportunities available for investment in the Suez Canal Development Area, according to statements Chairman of the Egyptian-British Chamber of Commerce Ian Gray made to Al Mal. The companies, which are eager to invest, are awaiting a detailed plan and outline for how investments will be set up in the area, the newspaper claims.

ENERGY

Eni’s “spectacular discovery success” in Egypt attracts investment from Platinum Asset Management
Platinum Asset Management’s leader Kerr Neilson believes the oil market has bottomed and is investing in Eni, specifically expecting an “eventual tightening of the oil market.” Neilson says Eni’s “spectacular discovery success” with Zohr make it “arguably more cheaply priced than its global peers.” Australia’s Financial Review says Neilson “pointed out that Eni reserves were within easy reach of its pipeline infrastructure, and for context, that it nearly doubled Egyptian reserves and could supply the country, at current usage rates, for 15 years.” (Read)

Eni to finish second Zohr exploratory well in April
Eni said the second exploratory well at the Zohr field will be completed in April, Al Borsa quotes a source at EGAS as saying. The well will cost Eni USD 100 mn, Al Borsa writes. The source adds that Eni is targeting completing drilling six exploratory wells this year. (Read in Arabic)

Actis to complete core construction on three renewable projects by end of 2016
Work on private equity outfit Actis’ three renewable energy investments, worth a combined USD 500 mn and producing 350 MW is underway, with plans to complete core construction work by the end of 2016, Actis GM Sherif El Kholy tells Al Borsa. Actis and Mainstream Renewable Power’s JV Lakela are building a 250 MW wind farm in the Gulf of Suez. Other Actis investments include a 50 MW wind farm in Ras Ghareb and a 50 MW solar power plant in Benban, Aswan. (Read in Arabic)

Egyptian electricity “heavily subsidized,” Shaker says
Egypt’s electricity is heavily subsidized, Electricity Minister Mohamed Shaker says, according to Al Mal. Electricity is sold domestically at an average of 25 piasters per kWh, whereas it costs 60 piasters per kWh to produce. Shaker reiterated that subsidies to electricity will be removed completely by 2019. (Read in Arabic)

Power Ministry to sign four MoUs, three loan agreements with Japan during El Sisi’s trip visit to Japan later this month
The Electricity Ministry is expected to sign four MoUs and three loan agreements with Japan during President Abdel Fattah El Sisi’s trip this month, according to a ministry official speaking to Al Borsa. The MoUs, which will total USD 8 bn, will be for two coal-fired power plants, a DCS power plant, and a coal import agreement, the source adds. The ministry had reached an agreement with Japan’s International Cooperation Agency (JICA) to fund a USD 50 mn solar power plant and provide a loan for the smart-grid project. The ministry is in talks with JICA for a third loan to finance overhauling six power plants. (Read in Arabic)

Arabian Cement to secure biofuel needs through Evolve
The Arabian Cement Company will secure its biofuel needs through its recently established subsidiary Evolve, according to head of investor relations Haitham Shaarawy. Arabian Cement uses biofuel for 30% of its energy needs, he adds. The company is looking to build a new biofuel factory that will sell its produce to energy-intensive industries, added Shaarawy. (Read in Arabic)

Farouk Systems to build EGP 100 mn cosmetics factory in Egypt
Haircare and spa product manufacturer Farouk Systems are looking to build an EGP 100 mn cosmetics factory in Egypt next year, according to Chairman Farouk Shami. The factory will be the company’s first in the MENA region, he says, noting that cosmetics sales in Egypt grow 40-50% annually. (Read in Arabic)

REAL ESTATE + HOUSING

Housing Ministry inks four private partnership agreements with combined value of EGP 200 bn
The Housing Ministry has signed four private partnership contracts with real estate developers at a combined investment value of over EGP 200 bn, announced the minister’s technical affairs assistant Khaled Abbas. The developers include Mountain View, who signed two contracts, Palms Hills Development, and the Arabia Group for Development, he says. The ministry is preparing to issue a new round of investment projects in the coming period, mainly centered around New Cairo, he notes. (Read in Arabic)

TOURISM

South Sinai investors ask for extensions on social insurance dues
The South Sinai Investors Association has asked the Social Solidarity Ministry to postpone receivables from tourism sector employees with no interest on the installments in light of the conditions the sector is facing, says member of the association Atef Abdel Latif. The pending installments are a prerequisite to obtaining licensing for tourist vehicles or renewing licenses for tourist establishments, he adds. (Read in Arabic)

Umrah will not be affected by Zika, tour operators say
The number of Egyptians going to Umrah will not be affected by the spread of the Zika virus, tour operators say. Precautionary measures are being taken at airports in Egypt and Saudi Arabia, Al Borsa was informed. Also, Saudi Arabia has not issued warnings over the virus or restricted the number of Umrah visas. (Read in Arabic)

BANKING + FINANCE

Peer-to-peer lending in Egypt is verboten, EFSA says
EFSA has refused to legalize peer-to-peer lending and crowdfunding in Egypt despite its growth online, Al Borsa reports. EFSA has reportedly said the domestic market is not yet prepared to regulate fundraising online and regulating it is not within EFSA’s agenda for the next six months. Chairman Sherif Samy even said EFSA is willing to take legal action against users of these services if formal complaints are received. (Read in Arabic)

EBRD provides USD 30 mn credit facility to Bank Audi-Egypt
The European Bank for Reconstruction and Development  has provided a USD 30 mn credit facility to Bank Audi-Egypt to finance small- and medium-sized projects in Egypt, Al Mal quotes an EBRD disclosure. Bank Audi-Egypt began negotiating foreign currency financing through loans of letters of credit last August. SMEs represent 75% of employment in the private sector, the EBRD reportedly explains, yet financing remains a large concern for the sector.

OTHER BUSINESS NEWS OF NOTE

First phase of evaluating airport security project to cost USD 700k, says gov’t
The first phase of the agreement with Control Risks to evaluate airport security in Cairo, Sharm El Sheikh, and Marsa Alam will cost around USD 700k, announced Civil Aviation Minister  Hossam Kamal. Egypt tapped Control Risks to review and evaluate security at airports following the Metrojet crisis. The project will be financed by the Tourism Development Fund, and it will take six months to complete the first phase. Kamal did not clarify what the total cost of the project was. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Negotiations with Saudi to increase intake of Egyptian labor
The Manpower Ministry is in negotiations with Saudi Arabia to increase the percentage of Egyptian workers in Saudi’s foreign labor pool by up to 20%, ministry official Mohamed El Housseiny tells Al Mal. There are around 2 mn Egyptians employed in Saudi Arabia, currently making up 15% of the foreign workforce there. (Read in Arabic)

** Further reading in Egypt Economics + Politics: “Sudan will not use the Renaissance Dam card to pressure Egypt to cede [Halayeb and Shalateen], since both countries wish to consolidate their relations,” Ambassador Mohamed Orabi, the interim chairman of the Foreign Relations Committee of House of Representatives tells Al Monitor’s George Mikhail. Orabi believes the parliamentary delegation’s visit to Sudan helped improve the relationship between the two countries and could help secure Sudan’s support in negotiations with Ethiopia.

ON YOUR WAY OUT

The Middle East’s Donald Trump: The ever-tactful Benjamin Netanyahu said a project set to encircle Israel in an uninterrupted strip of barriers is to defend it “against beasts of prey,” Bloomberg reported. He adds that the fences will protect Israel “in the current and projected Middle East.” Bloomberg’s Jonathan Ferziger explains that “barriers, some incomplete, have also been built on the borders with the Hamas-ruled Gaza Strip, Egypt, Jordan, Syria and Lebanon.”

New financial instruments and investment vehicles remain underutilized, to the detriment of Egypt’s capital markets. That was the consensus among economists speaking at Al Borsa’s Capital Markets & Financing Growth conference. Many, including Managing Director of the Egyptian Company for Housing Development & Reconstruction Hashem El-Said, championed the role of real estate investment funds in growing the real estate market. The Tax Authority is currently considering the exempting real estate investment funds from taxation, said Tax Authority official Ragab Mahrous. In another session focusing on the secondary bond market, many speakers anticipated the emerging importance of sukuks as a means to bolster capital markets. Beltone Chairman Sameh El Torgoman and Misr Holding’s Basel El Heny called on the government to do more to spread the use of alternative financial instruments, with El Heny calling for a national strategy to grow the leasing sector, Al Borsa reports.

An Egyptian court has acquitted former Information Minister Anas al-Fiqi on corruption charges, according to Reuters, in a pickup from state news agency MENA.

President Abdel Fattah El Sisi backed the Agriculture Ministry’s decision to cancel the French wheat tender at a meeting with Agriculture Minister Essam Fayed, saying Egypt will not allow the import of wheat that does not meet international standards. The pair also discussed the Agriculture Ministry’s plans bring agriculture production with the population growth rate, Al Masry Al Youm reports.