| IMF Mission in Cairo for Fourth Review of Economic Reform Program A delegation from the International Monetary Fund (IMF) arrived in Cairo Thursday to conduct the fourth review of Egypt's economic reform program. Under the reform program, which was launched by the government in late 2016, Egypt should receive a loan of $12 billion, of which $8 billion have so far been disbursed in four tranches over the last two years. The last tranche, which amounted to $2 billion, was unlocked after the successful review of the program in May. The economic reform program entailed the execution of several tough economic measures, the most notable of which was floating the local currency, implementing the VAT and gradually lifting energy subsidies. The first meeting of the fourth review was scheduled to be held between the IMF team and governmental officials on Saturday. The government is facing the fallout of the emerging markets' interest rates crisis, which caused a surge in debt burdens in Egypt's budget, reaching around EGP 1 trillion (nearly $56 billion), compared to EGP 817 billion targeted in the budget of the current 2018/2019 fiscal year. Moreover, global oil prices soared to record levels, leading to a jump in the fuel subsidy bill by $89 billion. | | Egypt, EU Sign Two Deals Worth $155 Mn to Combat Unemployment, Illegal Immigration Egypt and the European Union (EU) signed on Thursday two agreements worth €135 ($155.6) million to boost growth and job creation in the country and combat illegal immigration. "The program will help in achieving the priorities of the Egyptian people," said Sahar Nasr, Egypt's investment minister who signed the deal with General Director of the Neighborhood Policy and EU Enlargement Christian Danielson. The agreement that is meant to boost growth and job creation is worth about €75 ($86.5) million, while the funding allocated for combating illegal migration amounts to €60 million, according to a statement issued by the Federation of the Egyptian Chamber of Commerce. "The EU is Egypt's first development partner, with more than €1.3 billion in grants for ongoing projects. This figure rises to €11 billion when grants, financing and debt swaps from European Union member states and European financial institutions are added," Danielson said in a statement. | | Oil & Gas  Gas Production Underway in 'Simian DT' Well in West Delta The first well of phase 9B in the West Delta Deep Marine (WDDM) area in the Mediterranean Sea -- "Simian DT" -- started operating on Saturday with an initial production of 20 million cubic feet per day, according to Egypt's Minister of Petroleum Tarek El Molla. Modern drilling technology was used to save up to eight working days of the usual period for the drilling of the rig and lower costs by nearly $4 million, according to a ministerial statement. "This new technology will be applied to all the 9B wells, which comprises about eight wells in total," said Sabry El Sharkawy, head of Rashid Petroleum Company -- the firm responsible for developing the project. "This will result in saving millions of dollars as well as taking the production rates of the project to nearly 400 million cubic feet of gas and 3,000 barrels of condensates daily." | | Israel Might Have to Import Egyptian Gas: Expert Israel, which is expected to export gas to Egypt soon so the latter can export it to Europe, might also have to import gas from Egypt as a measure to increase competitiveness and lower the relatively high prices of local Israeli gas, Haaretz Reported. In late September, Israel's Delek Drilling and American company Noble Energy Inc. announced that they, along with the Egyptian East Gas Company, were acquiring a 39 percent stake in EMG, an Egyptian company that owns an undersea pipeline running between Egypt and Israel. Earlier this month, CEO of East Gas Company Mohammed Shoeib told Bloomberg that Egypt can begin importing natural gas from Israel to transfer it to Europe under a $5 billion deal as early as March if the gas pipeline is found to be in fit condition. Oded Eran, former Israeli ambassador to Jordan and current senior researcher at the Institute for National Security Studies, told Haaretz that the undersea pipeline should also be used to supply Israel with Egyptian gas. According to Eran, Israel pays for gas 50 percent above the competitive price. "The [Israeli] energy ministry should prepare for this eventuality by making it a condition of the permit granted to Noble Energy and Delek for Operating the EMG pipeline," stresses Eran, who says that Egypt is the only viable country in the region for Israel to buy gas from. The pipeline, which is located near restive North Sinai's Al-Arish, has been unused for several years after repeated attacks on it by terrorist groups in the region. In recent years, Egypt has made significant strides towards both becoming a regional natural energy hub and achieving self-sufficiency in natural gas. | Minister of Trade and Industry Amr Nassar Foreign Direct Investment Egypt's Exports to Italy Hit $1.24 Bn in Eight Months: Minister Egypt's exports to Italy hit $1.24 billion during the first eight months of 2018, compared to $986 million in the same period last year, Minister of Trade and Industry Amr Nassar said on Thursday. Egypt's imports from the Italian market dropped to $2.96 billion in the January-August period of 2018 versus $3.63 billion in the same period last year, Nassar added during a meeting held in Cairo with an Italian delegation representing 25 major Italian firms. Ashraf Rashid, a member of the board of the Italian Egyptian Business Council, said that the visit of the Italian delegation aims at strengthening economic relations between Italy and the Mediterranean countries, including Egypt. "Italy is one of Egypt's main trade partners in the world as trade exchange between both countries reached around $5 billion," he stated. The killing of Italian student Giulio Regeni in Cairo in early 2016 strained relations between both countries, with Italy recalling its ambassador over the case. However, tensions eased in August last year when Roma said it would return its envoy to Cairo and Egypt stressed that it was committed to bring the culprits to justice | | 3 Tri-Ocean Officials Referred to Criminal Court Over $1 Bn Embezzlement Prosecutor-General Nabil Sadek on Thursday referred three officials at Tri-Ocean Energy, a joint-stock company in which the state owns a stake, to a criminal court on charges of embezzling $1 billion from the company and smuggling them to other countries including Qatar. The accused officials include the company's Managing Director Mohamed Mahfouz Al-Ansari, who is facing charges of wiring $9.5 million from accounts at Bank Audi in Switzerland and Qatar National Bank (QNB) in Doha to his own accounts. The second defendant is accused of transferring nearly $4.3 million to a company he owns, named MH Ltd for Trade and Imports, via accounts at QNB and Bank Audi in Cairo and Doha, in addition to wiring over $4.4 million to his personal account at QNB in Doha. The two defendants are also accused of money laundering. The company's Deputy Chairman and the CFO are accused of transferring $18 million from February until September 2012 from Tri-Ocean Energy's accounts at QNB (Doha), Mashreq Bank, the Arab African International Bank and Bank Misr (all in Dubai) to three other accounts Meanwhile, Mohamed Helmi, legal cases manager at Egypt's Commercial International Bank (CIB), which owns 15 percent of Tri-Ocean, submitted documentation showing that the defendants had embezzled $950 million from the company's funds during the period from May 25, 2011 to October 29, 2015. In October 2017, Egypt Kuwait Holding (EKH) issued a statement to the Egyptian bourse explaining that Tri-Ocean Energy has not been a subsidiary of the company since 25 February, 2016. | | Nestlé to Launch New Coffee Factory in Egypt Nestlé will inaugurate a new coffee factory in Egypt in January with the intention of producing high-quality local products that can be exported, Egypt's Trade Minister Amr Nassar revealed on Friday. The factory will feature eight production lines that operate with the latest manufacturing technologies, Nassar said during a meeting held with a Nestlé North East Africa Region delegation led by Moataz El Hout, chairman and CEO of Nestlé. "The ministry seeks to make Egypt an industrial and export hub for the Middle Eastern and African markets," Nassar stated. El Hout said Nestlé has injected up to EGP 1 billion (nearly $56 million) into the Egyptian market over the past five years, stressing that his company aims to increase exports as part of its expansion plans in Egypt. Nestlé currently owns three factories in Egypt, which are run by 3,000 permanent employees. The factories produce an array of products such as coffee, mineral water and dairy products among others. | | Telecom Egypt Signs $500 Mn Medium-Term Syndicated Loan Telecom Egypt signed on Thursday a $500 million medium-term syndicated loan with a consortium of regional and international banks, which will be used to support its capital and operational expenditure. The loan, arranged by First Abu Dhabi Bank and Mashreq Bank, includes contributions from a consortium of the two banks in addition to Moroccan Attijariwafa Bank, Industrial and Commercial Bank of China (ICBC) and Al Ahli bank of Kuwait among others. Telecom Egypt, which is 80 percent owned by the Egyptian government and the rest of its shares listed on Egypt and London stock exchanges, will also use the loan to develop its 4G infrastructure. | | Global Telecom Eyes Capital Increase of at Least $500 Mn Global Telecom Holding, an Egyptian joint stock company, said on Thursday that it is planning to increase its capital by at least $500 million should its shareholders release outstanding payments for 2018 and 2019. "The increase is still subject to the approval of relevant regulatory authorities," Global Telecom said in a bourse filing. The company is also seeking an approval from regulatory authorities to acquire the $100 million temporary increase in a revolving credit facility agreement with the Amsterdam-based VEON Holdings. Global Telecom first approved the temporary increase on May 30 to utilize it for what it called its "general purposes" such as settling a short-term loan that was due on June 15. The loan will supposedly mature in no more than six months from the entry date -- November 30. | | Careem Receives $300 Mn Funding from Existing Investors Middle East ride-hailing company Careem said Thursday it had secured $200 million in funding from existing investors, which comes as part of a first funding round in which the company expects to raise over $500 million. The funding will go for broadening the scope of services that include the payment system and bus transport services to "improve the quality of people's lives in the region," the company added. The Dubai-based company announced in October the launch of a bus-booking service in Egypt. Earlier in February, it acquired RoundMenu, a restaurant listing and food ordering platform in Dubai, to expand is food delivery service. In December 2016, the company raised $350 million from investors including Japanese e-commerce leader Rakuten and Saudi Telecom, giving the company a $1 billion valuation. Careem subsequently attracted a $62 million investment from Kingdom Holding, an investment firm owned by Saudi billionaire businessman Prince Alwaleed bin Talal, which bought a 7.1 percent stake in the company in June last year. Founded in 2012, Careem says it has 30 million registered users in over 120 cities in the Middle East, North Africa, Turkey and Pakistan. | | EgyptAir to Offer Security Services to Bahrain's Gulf Air EgyptAir signed on Thursday an agreement with Bahrain's Gulf Air to provide security services to the Bahraini airline's flights at Cairo International Airport, as well as in other airports across the country. The new agreement comes as part of a number of deals sealed by EgyptAir to offer security services to other airlines. EgyptAir Holding Company has recently passed all international reviews carried out by representatives of International Air Transport Association (IATA), without receiving any remarks. It has also fulfilled the requirements of UK's Department for Transport (DFT) and US' Transportation Security Administration (TSA). | | Foreign Direct Investment Egypt Boasts Half of EBRD's Investments in Region Egypt boasts half of the European Bank of Reconstruction and Development's (EBRD) €8 billion investments in the Southern and Eastern Mediterranean (SEMED), state news agency MENA quoted EBRD's managing director for the region as saying. "EBRD is committed to supporting the Egyptian economy's transformation phase," Janet Heckman said, adding that the bank was optimistic over Egypt's economic reform measures. Last week, Egypt signed a €214 million deal with EBRD to improve sanitation services in the Nile delta region. EBRD started its activities in the region six years ago. | | Real Estate Castle Development's Investments in New Capital Reach $447 Mn Castle Development's real estate investments in the New Administrative Capital has reached EGP 8 billion (over $447 million) as the company also eyes retail investments in the capital, its CEO Ahmed Mansour told reporters on Thursday. The company is building a 1800-unit housing project in the capital's R7 District, in partnership with Castle Landmark, over four phases with the entire project's delivery date scheduled in 2022. Of the 380 units offered in the project's first phase, 300 units have been sold so far, encouraging the company to build a retail mall in the capital, Mansour revealed. The New Administrative Capital, located 45 kilometers east of Cairo, will extend over 170,000 acres and house around 6.5 million people. | | NUCA to Offer Fine Exemptions to Installment Payers The New Urban Communities Authority (NUCA) said on Friday it would offer reduced fines of up to 100 percent to those who pay the required installments on their allocated housing and retail units within three months starting from October 21. Individuals who pay their entire due amounts on their allocated properties will receive a complete fine exemption, while individuals who pay 75 percent of the due installments will receive a 70 percent exemption. NUCA will also guarantee a 45 percent exemption to those who pay half of their due installments and 20 percent to those who pay 25 percent of what they owe. NUCA is an entity under the umbrella of the housing ministry that works on developing new cities either by building residential and retail properties or by selling lands to developers. Units and lands are allocated to individuals and developers through a lottery system as the demand is usually high on such properties. | | Egypt Signs MoU with Intertek to Establish MENA's First Facility Certifying Communication Devices The information ministry signed yesterday a memorandum of understanding with Intertek to establish in Egypt the first facility to test and accredit communication equipment and devices in Africa and the Arab world. In cooperation with an international partner, the facility will certify that mobile phones and tablets, among other devices, meet international standards, according to a statement released by the ministry. The facility, the statement reads, will encourage the domestic manufacturing and exporting of communication devices. The project is part of the Egypt Manufacturing Electronics initiative, which aims at boosting this sector out of belief that it is a cornerstone for economic revival. According to the World Bank's MENA Economic Monitor Report of October 2018, Egypt's Gross Domestic Product is estimated to grow at a rate of 5.8 in 2020. The report recommends countries in the region to develop their digital economies and increase their industrial exports to accelerate their economic growth. | | Govt Promotes Digital Payment of Registration Office Fees Egypt's planning ministry released on Friday an infographic that displays the recently digitized services offered by the Real Estate Publicity Department (REPD) as it attempts to provide a faster payment experience for citizens. Electronic payment services include issuing notarization documents and obtaining official contract copies, according to the ministry, which also said that more services were being developed, such as ordering a copy of the authority's periodical booklet. On October 15, the Egyptian Authority of Real Estate Registration and Notarization (RERN) signed a protocol with state-run e-finance to digitize payment of all real estate-related services provided by the REPD. "Through a website created in cooperation with the planning ministry, citizens will be able to pay for all real estate-related services offered by the department electronically via various means, including credit cards, mail, or electronic points of sale which are available across Egypt," the RERN said in a statement. "As a primary stage, the new system will be implemented in Giza governorate and then Cairo, before it makes its public debut." The Egyptian government has been exerting efforts to "enhance financial inclusion and shift towards a cashless society." In September, the finance ministry announced a newly-designed website for financiers and registrars to pay their tax bills. Minister of Communications and Information Technology Amr Talaat said in late September that citizens would be provided with over 20 electronic services by 2019, including real estate, health insurance and car licensing services. All the services will be available through the soon-to-be-launched websites of government bodies. | | International Facebook Appoints Ex-UK Deputy PM as Global Affairs Head Facebook has installed former UK Deputy Prime Minister, Sir Nick Clegg, as its head of global policy and communications, with the company facing substantial pressure over a number of thorny issues. The ex-head of the Liberal Democrats will fly to Silicon Valley early next year to fill his new post and is expected to deal with fake news accusations and data protection concerns as well as government regulations. Clegg's appointment came after widely circulating rumors that Facebook founder Mark Zuckerberg was seeking to hire a high-profile former politician. Clegg reveled in the pinnacle of his career when he was made deputy prime minister after stirring the Lib Dems into a coalition with David Cameron's Conservative party between 2010 and 2015. The 51-year-old lost his parliamentary seat in 2017. | | Egypt Praises Saudi 'Transparency' in Khashoggi Case Investigation Egypt's foreign ministry praised on Saturday Saudi Arabia's "keenness and commitment in reaching the truth" and taking the "due legal actions against the involved individuals" in the killing of Saudi Journalist Jamal Khashoggi. Egypt, who offered their condolences to Khashoggi's family, also said Saudi investigation into the matter would reveal the truth and "put an end to any attempts to politicize the case and target Saudi Arabia." On Friday, the Arab Gulf country said Khashoggi, who visited the Saudi Consulate in Istanbul two weeks ago to obtain paperwork, died in a fight in the consulate. Eighteen Saudi nationals have been arrested pending investigations. Royal court adviser Saud al-Qahtani and deputy intelligence chief Ahmed Asiri were sacked, a Saudi statement also revealed. The whereabouts of the veteran journalist's body is yet to be revealed. Meanwhile, US President Donald Trump said Saudi Arabia's announcement was "credible" and a "good first step," adding that he prefers that any sanctions against Riyadh do not include canceling $110 billion worth of defense orders. German Chancellor Angela Merkel said Germany "expect[s] transparency from Saudi Arabia about the circumstances of his death ... The information available about events in the Istanbul consulate is inadequate." | Prime Minister Mostafa Madbouly Cabinet-Affiliated Committee to Create Database for Egyptian Expats Prime Minister Mostafa Madbouly ordered on Saturday the creation of a committee to be entrusted with preparing an integrated database on Egyptian expatriates with the aim of making the most of their abilities to serve the state's sustainable development strategy. "The panel will be chaired by Minister of Immigration and Expatriate Affairs Nabila Makram as well as representatives from the ministries of foreign affairs, interior, planning, among others," the cabinet said in a statement. Cabinet Spokesman Nader Saad said that committee will have access to any information available on Egyptian expats at the relevant ministries and departments. "No information may be withheld from the committee," he stressed. | | PM Calls for Three-Year Plan to Reduce Student Density in Classrooms Prime Minister Mostafa Madbouly has commissioned Education Minister Tarek Shawki to draft a plan aiming to decrease student density in classrooms, a perennial problem in Egypt, over the next three years. Madbouly has also tasked Mahmoud Shaarawy, Minister of Local Development, and all governors with allocating plots of land to school building in the area where student density is high. The premier, however, did not reveal a targeted number of students per classroom. Earlier, he said the average density ranges from 45 to 50 students per classroom, stressing that the state needs a decade to solve this problem. For his side, Shawki said that Egypt needs extra 259,000 classrooms to accommodate students by end of 2021. | | 35,000 Families Excluded From 'Solidarity and Dignity' Program Because of Non-Compliance The accountability committees, created to ensure the status of families benefiting from the state's "Solidarity and Dignity" cash transfer program, have excluded nearly 35,000 families in 20 governorates due to their non-compliance with the program's terms. Last Thursday, the Egyptian social solidarity ministry imposed a number of penalties on the beneficiaries of the "Solidarity and Dignity" project, a cash transfer program that aims to help poor households beat poverty, who did not meet the conditions of the program, according to a ministerial statement. The conditions include "children attending 80% of the academic year and mothers frequently visiting health clinics to undergo necessary checkups and tests," the statement noted. After the first month of violating those terms, the ministry will slash 30 percent off the family's monthly support. The deducted amount is refunded in case the family complies with the conditions. However, if the family does not comply with the listed conditions during the second month, an additional 30 percent will be cut from its monthly allowance. An extra 30 percent will be deducted if the family still does not comply by the third month. "If the family does not comply by the fourth month, the support granted by the program will be ceased," according to the statement. The solidarity ministry has provided funds worth EGP 17.5 billion (roughly $1 billion) for the 2018-2019 fiscal year to strengthen the country's cash assistance programs. | | 'Arbitrary Firing' of BiscoMisr Workers Stirs Uproar in Parliament The "arbitrary dismissal" of workers at biscuits and cake producer BiscoMisr by the company's US owners Kellogg Company prompted some lawmakers to seek the summoning of Minister of Manpower Mohamed Safan to the parliament. MP Maysa Atwa requested that the minister attend an "urgent meeting" this week to discuss the workers' crisis. Another MP, Mohamed Abdelghani, also said the minister should address the issue before the parliament, citing what he called the American company's "failure to observe the rules of dismissal when it sacked the workers four months ago." In January 2015, Kellogg Company acquired a majority stake in Bisco Misr, which was established in 1957. | | Suez Canal Reduces Docking Fees in East Port Said Port The Suez Canal Authority (SCA) announced on Thursday that it reduced the docking fees by up to 60 percent for container ships and ferries at the East Port Said Port in a bid to attract more ships to the harbor. "A 30 percent discount will apply for vessels carrying less than 80,000 tons while those carrying more than that will receive a 40 percent discount," the SCA said in a statement. "Vessels carrying more than 50 containers will also receive a 60 percent discount." "This moves comes as part of our efforts to compete with regional and international ports," SCA Chairman Mohab Mamish was quoted in the statement as saying. The global maritime navigation can witness a major shift in the near future. Late in September, a Danish ship embarked on a successful first-ever journey from Asia to Russia navigating the Russian Arctic, which has significantly melted due to global warming, a route that can be an alternative to the Suez Canal. Russia is reportedly investing in the development of this maritime shortcut, which would cut maritime journeys to Asian ports by 15 days compared with the conventional route through the Suez Canal. | File photo of Mohamed Salah Mo Salah Scores 50th Goal in England to Help Liverpool to Premier League Win Mohamed Salah scored his 50th goal for English clubs to power Liverpool to a 1-0 Premier League win over Huddersfield on Saturday, ending a mini four-match goal drought in all competitions. The Egyptian winger scored what proved to be the winner on 20 minutes, sending a low shot into the far bottom corner from a tight angle after latching onto a through pass from Swiss midfielder Xherdan Shaqiri. He took his tally to 50 career goals with English clubs -- Chelsea and Liverpool -- in 83 appearances in all competitions. Salah, who took the Premier League by storm last season after finishing as the competition's top scorer with a record 32 goals, has made a relatively slow start to the new campaign, netting four goals in the first nine matches. He has gone four matches without scoring in all competitions before finding the net against Huddersfield. | | Ahly Agree New Kit Deal With Umbro Cairo giants Ahly have agreed a new kit deal with British sportswear firm Umbro starting this season, the club announced on Saturday. Umbro will take over from Sporta, whose partnership with Ahly came to an abrupt after the Saudi Arabian company terminated its contract with the club last month in protest at insults directed against Saudi Sports chief Turki Al-Sheikh by the football team's die-hard fans. Ahly have been wearing the kits of Sporta since 2015. The Red Devils hailed the new agreement with Umbro, which supplies kits for the likes of Everton and West Ham in England and Schalke and Werder Bremen in Germany. The deal is worth $250,000 for the 2019-20 season and will increase by 5 percent every year, the club said in a statement. "The deal will immediately take effect after it's signed very soon," Ahly said on their official website. | | Global Economy OPEC, Allies 'Struggling' to Fulfill Oil Increase Pledge: Reuters OPEC and petroleum-producing allies are "struggling" to increase production as per their June pledge to boost output, a move than shall bring down soaring prices, reported Reuters, citing an internal OPEC document. According to the report, an increase by Saudi Arabia was offset by declines in Iran, Venezuela and Angola. Saudi Arabia injected the largest share of the extra oil, raising output by 524,000 bpd in September compared to May, according to the document. Other increases came from Iraq, Kuwait and the UAE. Saudi Energy Minister Khalid al-Falih said OPEC and non-OPEC countries would pump roughly an extra 1 million barrels per day (bpd) following the June agreement with US President Donald Trump, an amount the document suggested has not yet been met. OPEC says it is on track to reach its target yet did not provide a timeframe. Iran's production was slashed by 376,000 bpd in September compared to May due to US sanctions imposed last November on its oil exports. | | International Africa's Youngest Billionaire Freed Unharmed in Tanzania Following Abduction Africa's youngest billionaire was freed unscathed in Tanzania on Saturday after nine days of abduction as kidnappers are still at large. Police are chasing the abductors of Tanzanian Mohammed Dewji, who Forbes lists as Africa's youngest billionaire with a $1.5 billion net worth, saying the crime could harm the continent's second-largest economy. Dewji, 43, was released somewhere in Dar es Salaam, Tanzania's most populous city, police Inspector General Simon Sirro said. He was kidnapped by unidentified individuals in Dar es Salaam on October 11. Tanzania has recently experienced politically motivated crimes. | |
