| Egypt Ponders Selling Yen, Yuan Bonds in Q1 2019: Minister Finance Minister Mohamed Maait said Egypt was contemplating issuing its first Japanese yen and Chinese yuan-denominated bonds in the first quarter of 2019, with the country seeking to tap into new sources of foreign currency that it constantly needs to buy foodstuffs and fulfill its international obligations. Egypt has sold over $13 billion worth of foreign currency-denominated bonds over nearly two years, following the floatation of its pound and subsidy cuts that came as part of an IMF agreement over a multi-tranche $12 billion loan deal that aims to revive its battered economy. The turmoil in emerging markets, however, as well as higher US federal reserve interest rates have dissuaded portfolio investors in Egypt and other countries. "We want to diversify our debt instruments and currencies. We aim to have a basket of bonds in several currencies," Maait said in a telephone interview with Bloomberg. The minister paid a visit to South Korean capital Seoul this month, with Egypt planning non-deal roadshows in Asia and Europe before the end of the year. | | Egypt in Talks With WB Over $200 Mn Loan for SMEs Egypt is holding talks with the World Bank to secure a $200 million loan for small and medium-sized enterprises, said Investment Minister Sahar Nasr. Speaking to reporters yesterday, Nasr hailed a report issued by the United Nations Conference on Trade and Development (UNCTAD) last week, in which it said Egypt's foreign direct investments rose by 24 percent in the first half of 2018 compared with the same period last year, despite a slowdown in FDI worldwide. The investment ministry announced last week that Egypt had agreed a new $3 billion financing deal with the World Bank, which came shortly after President Abdel-Fattah El-Sisi met with the head of World Bank Jim Kim last month. "This funding reflects the World Bank's confidence in Egypt's economic reforms and ensures its keenness on providing Egypt with support to implement the economic and social reform program," Nasr said. Earlier this month, the government signed a $300 million agreement with the World Bank to finance infrastructure projects as part of the "Sustainable Rural Sanitation Services Program." | | Oil & Gas  Egypt, Jordan Sign MoU to Cooperate in Energy Field Egypt and Jordan signed on Sunday a memorandum of understanding (MoU) to bolster cooperation and exchange knowledge in the gas and renewable energy fields as Egypt attempts to become a regional energy hub. The MoU's terms include sending Egyptian experts to train Jordanians in the field of oil and gas. The two countries' energy and petroleum ministers also discussed the resumption of Egyptian gas exports to Jordan through a pipeline in 2019. Egypt has made some significant strides towards both becoming a regional natural energy hub and achieving self-sufficiency of natural gas. The country has recently announced that it will halt its natural gas imports after receiving a last shipment in September as its natural gas production has increased by 10 percent to reach 6.6 billion cubic feet per day, owing to an increase in the production of giant gas field Zohr. Zohr, discovered by Italian energy company Eni in 2015 for the largest ever discovery of natural gas in the Mediterranean, holds an estimated 30 trillion cubic feet of gas. Its production has recently risen to 2 billion cubic feet per day. | | Juhayna Posts $6.7 Mn Profits in Q3 2018 Juhayna Food Industries reported on Sunday that its consolidated profits had hiked by 83 percent in the third quarter of 2018 to reach EGP 119.6 (roughly $6.7) million, compared to EGP 65.3 ($3.6) million in the same period last year. In the first nine months of 2018, the company's net profits surged 138.3 percent, recording EGP 359.48 million in the January-September period from EGP 150.86 million in the corresponding period last year, Juhayna said in a bourse filing. During the first half of 2018, Juhayna posted a 180.3 percent year on year increase in its consolidated profits, posting EGP 239.8 million versus EGP 85.5 million in the year-ago period. | | AMOC Profits Fall 37% in Q1 2018/19 Net Profits of Alexandria Mineral Oils Company (AMOC) fell in the first quarter of the 2018/2019 fiscal year to register EGP 253.1 ($14.1) million, down from EGP 402.6 ($22.5) million in the same period last year. The company's sales increased during this period though to register EGP 4.1 billion ($228.9 million), up from EGP 3.5 billion ($195.4 million) in the first quarter of the 2017/2018 fiscal year. AMOC is one of the state-owned companies that are set to have some of their shares floated in the Egyptian bourse before the end of this year. Twenty percent of AMOC's shares will be floated in the bourse as the company expects to raise EGP 2.8 billion ($156.3 million). | | International Delegation of 40 Egyptian Firms to Fly to UK to 'Explore New Grounds of Cooperation' The British Egyptian Business Association (BEBA) said it is planning to send its doorknock mission, comprising nearly 40 Egyptian financial institutions and firms, to the UK in late November to "explore new grounds of cooperation between both countries" and promote the available investment opportunities in Egypt. "Investment opportunities will be presented in the sectors of energy, financial services, education and health," BEBA Chairman Khaled Nosseir told Amwal El-Ghad newspaper on Sunday. "The visit is well-timed, given the imminent exit of Britain from the European Union (EU) and Egypt's desire to take advantage of this to develop its exports." According to Nosseir, Egypt endeavors to become an alternative hub to the English market needs by supplying the goods and products that were imported to Britain via the European Union countries. On Saturday, around 700,000 people from all over the UK marched peacefully to demand a second referendum on the British exit (Brexit) from the EU, which is scheduled for 20 March, 2019. Back in 2016, 51.9 percent voted for a British exit, or Brexit, from the EU in a historic referendum on June 23. | | Stock Market Orange Egypt's Consolidated Losses Drop 87% YoY Orange Egypt for Telecommunication posted an 87 percent year on year drop in its consolidated losses during the first nine months of 2018, recording an EGP 234.9 (nearly $13.1) million loss on the back of a growth in sales. The telecom company reported increased sales of EGP 10.9 billion ($609 million) at the end of September, compared to sales of EGP 9.3 billion in the prior-year period, Orange Egypt said in a bourse filing on Sunday. Orange Egypt had previously incurred losses of EGP 1.76 billion during the January-September period of 2017. It witnessed a 77 percent year on year decline in consolidated losses during the first half of 2018. In late September, Orange Egypt agreed to optionally delist the company's shares from the Egyptian Exchange (EGX), according to a previously posted bourse filing, adding that the delisting procedures are supposed to be finally submitted to the firm's extraordinary general meeting (EGM) by the end of December. | | Global Telecom Reveals New Assets Valuation 42% Higher Than VEON's Offer Global Telecom Holding (GTH), an Egyptian joint stock company, said on Sunday that New Street Group, a financial advisor, has set the fair value of GTH's stocks in Bangladesh, Pakistan and Mobilink Microfinance Bank at about $3.6 billion -- 42 percent higher than the recently withdrawn offer by VEON Holdings. The figures are based on a study conducted in response to the demands of minority shareholders, GTH said in a bourse filing, adding that the report noted that the currency value of the Pakistani rupee and Bangladeshi taka will keep dropping. Meanwhile, the Egyptian Exchange (EGX) announced on Sunday that trading in GTH's shares has resumed after it was suspended last week until the company revealed the fair value (FV) of its assets. GTH will hold an ordinary general meeting (OGM) on November 15 to extend the maturity date of the $100 million revolving credit facility from VEON -- due on November 30, according to the filing. On October 11, GTH revealed that VEON withdrew its offer to acquire the company's assets in Pakistan and Bangladesh for $2.55 million -- which was first presented in July. | | Real Estate AREH's Profits Fall Over 70% in First 9 Months of 2018 The Real Estate Egyptian Consortium's (AREH) profits fell by 71.1 percent during the first nine months of 2018 to reach EGP 7.4 million ($413,000) compared to EGP 26 ($1.5) million registered in the same period last year. The public-owned company's sales also fell year on year, registering EGP 9.8 million ($547,000) compared to EGP 14.6 million ($815,000). The company attributed the decline in revenues to the ongoing marketing of its new real estate project, a residential tower in Cairo's famous El-Batal Ahmed Abdel-Aziz Street. | | Govt to Build 13 Integrated Cities as Part of $8.37 Bn Plan The Egyptian government intends to build 13 new integrated cities as part of a plan worth EGP 150 ($8.37) billion, according to an urban planning official. Alaa Zahran, Head of the National Planning Institute, said that the plan includes the construction of the New Administrative Capital east of Cairo as well as cities in Rafah, El-Alamein, El-Mansoura and New Toushki. Speaking in an experts' forum meeting, the official showcased a number of domestic and international examples of building smart cities, such as Dubai in the UAE, Vancouver in Canada and Stockholm in Sweden. He also stressed the importance of "bolstering sustainable development and knowledge economy." "Such cities contribute to the formation of a variety of industries and a knowledge-based economy, in addition to developing new patterns of innovative work force and human communities," Zahran added. He also reviewed Egypt's expertise in building new smart cities, stressing that there is a sustainable development strategy and medium-term development plan named 2018-2022 that includes expanding the country's populated area to 10 percent from 7 percent and establishing new urban communities to accommodate 10 million people. Meanwhile, experts at the forum reiterated the importance of studying the connections between old and new cities, as well as financing forms and alternatives. Experts also said the new cities should be linked to new development areas such as the Suez Canal Zone, the Golden Triangle and the One-Million-and-Half Feddan project. | Residential units in the New Administrative Capital Edge Holding Plans to Invest $111 Bn in New Capital Tower Egypt-based property developer Edge Holding Group said on Sunday that it is planning to invest EGP 2.5 billion (around $111.6 million) in a mixed-use tower in the New Administrative Capital east of Cairo, said the Vice Chairman of the Company's Commercial Sector Nader Badr. "The company has submitted a request to the Administrative Capital for Urban Development (ACUD) to obtain a land plot of 15,000 square meters in the new capital's towers area in order to utilize it for implementing the new project," Badr told Mubasher news website. According to Badr, the 40-storey tower, which comprises residential, hotel and administrative units, will be completed within four years as soon as Edge Holding lays its hands on the land plot. The mixed-use tower is Edge Holding's second project in the new capital after "OIA" -- its first residential compound in the smart city which is being built on an area of 30 acres with investments worth nearly EGP 3 billion ($167 million). Meanwhile, the property developer is also looking to build a residential tourism project in New Alamein City in Egypt's North Coast, covering an area of 50 acres with investments of EGP 15 billion ($837 million), according to Badr. Edge Holding is an Egyptian-Saudi joint venture between Egypt's construction company Al-Borouj Egypt and Saudi-based real estate developer El-Mashareq. | | New Administrative Capital Warns Against Dealing with Developer The New Administrative Capital Company for Urban Development issued a warning to citizens against making any deals with Makkah Real Estate Investment Co. or reserving residential units through it in the New Administrative Capital, according to Amawl Al-Ghad newspaper. "Makkah Real Estate Investment has no dealings with respect to the new capital, except for an application submitted by it for a land plot, and it has not been authorized to conduct any marketing or selling activity inside the capital," the company said. The New Administrative Capital Company is 51 percent owned by the armed forces and 49 percent by the New Urban Communities Authority (NUCA). To be built over an area of 170,000 acres, the new capital will include 20 residential areas and is expected to accommodate 6.5 million people and a 650 km road network. | | Deals Sidi Kerir Petrochemicals Acquires 20% of Solvay Alexandria for $3 Mn State-owned Sidi Kerir Petrochemicals Company (SIDPEC) bought on Thursday 20 percent of Solvay Alexandria Sodium Carbonate's (SASC) shares for $3 million, the company announced on Sunday. SIDPEC acquired 12.9 million shares of SASC, a subsidiary of Belgian Solvay SA, at $0.23 per share. SIDPEC is also considering acquiring a loan of $1.2 billion to finance its expansion plans, which include building two factories in Alexandria for the production of propylene and polypropylene. It aims to produce around 500,000 tons annually of each material once production starts in early 2022, Al-Mal reported. | | Foreign Direct Investment FM Lures Greek Counterpart With Investment Opportunities in SCZone Egyptian Foreign Minister Sameh Shoukry met on Sunday with Greek Deputy Minister of Foreign Affairs Terence Quick in efforts to boost bilateral ties between the two Mediterranean countries. Shoukry highlighted the benefits that Greece can gain should it decide to utilize the Suez Canal Economic Zone (SCZone), describing it as a "portal to the African continent." The SCZone consists of six ports: West Port Said Port, East Port Said Port, Adabiya Port, El Arish Port, El Tor Port, and Ain El Sokhna Port. Earlier this month, President Abdel-Fattah El-Sisi visited the Greek island of Crete for a sixth tripartite summit between the leaders of Egypt, Greece and Cyprus, which aimed at bolstering cooperation, especially in the field of oil and gas exploration. | | QNB Al-Ahli Raises Returns on 3-Year CDs by 1.5% Qatar National Bank decided last week to raise annual returns on its 3-year Certificates of Deposit by around 1.5 percent to reach 14 percent, a customer service officer at the bank told Masrawy website. Returns on those certificates are disbursed monthly, said the officer, adding that the minimum amount for the certificates is EGP 1,000 ($56), with the ability to redeem their value after the elapse of six months. Although Egypt's central bank has fixed interest rates four times since the local currency floatation in late 2016, private banks, such as the National Bank of Kuwait, Audi and Credit Agricole raised interest rates on deposits and savings certificates in a bid to bring in more savings and boost their liquidity levels. In its latest meeting on September 27, the monetary policy committee of Egypt's central bank decided to leave key interest rates unchanged, as was widely expected. Overnight deposit and lending rates were kept on hold at 16.75 percent and 17.75 percent respectively, while the main operation and discount rates were also maintained at 17.25 percent. | | Parliament Agrees to Extend State of Emergency for 3 Months Egypt's parliament voted on Sunday to extend a nationwide state of emergency for an additional three months retroactively from October 15, in a way that it said would "protect public freedoms while maintaining national security." "The extension of the state of emergency is still necessary due to security challenges facing the country and the importance of fighting terrorist movements targeting Egypt," Prime Minister Mostafa Madbouly said in a short statement before a parliament session. "The extension of the state of emergency is also necessary to ensure that the country moves forward on the road of comprehensive development in a climate of complete stability," Madbouly added, noting that "the efforts of combating terrorism have helped a lot in recovering stability and achieving a lot in the area of development." Addressing the parliamentary session, Madbouly vowed that the Egyptian government will resort to taking unprecedented measures only in a way that drives a balance between public freedoms and the necessities of national security. This marks the seventh time the state of emergency is renewed since it was first imposed on April 10, 2017, following twin terrorist attacks on two churches in Tanta and Alexandria, which left about 47 worshippers dead. | | Egypt Dismisses Reports of British Tourist Organs Theft The State Information Service (SIS), Egypt's public relations agency, has downplayed reports claiming that unknown people have stolen the organs of a deceased British tourist in the Red Sea resort of Hurghada. British media reports said the body of David Humphries, 62, was missing the heart and two kidneys, pointing the finger at organs thieves. The SIS said medical documents show that only samples of the body were taken for analysis in laboratories in Assiut, Upper Egypt. "The allegations pertaining to the deceased's organs theft are unfounded," the SIS statement read. "All formalities were conducted in a procedurally sound matter, geared towards the use of familiar scientific methods to ascertain the cause of death with complete certainty." Humphries was pronounced dead on September 18 at the Red Sea Hospital where he arrived "in a deep coma, with no pulse, breathing, or blood pressure and cold body," the SIS said. Five days earlier, he was briefly admitted to the same hospital after falling sick, the SIS reports his wife as saying, and was released after receiving treatment. | | Nile Taxi to Expand Service from Upper Egypt to Nile Delta The transport ministry plans to launch a second phase of the Nile Taxi project that will cover Minya governorate in Upper Egypt and Mansoura city in the Nile Delta north of Cairo, said Transport Minister Hisham Arafat. Speaking to Al-Mal newspaper, Arafat said the ministry's plan aims at expanding means of public transport and linking the river transport to the railway and road networks. "Operating Nile Taxi to reach Minya will likely alleviate pressures on the railway, especially during holidays and feasts," he added. "During the last Al-Adha feast holiday, for example, the number of passengers who rode trains for five days equaled their number in a whole year, which put more pressure on the railway especially given its low ticket prices compared to buses." The minister also said he hoped a draft law regulating river transport activities would be ratified by the parliament within the next three months, saying it would help lure the private sector into such projects. In May last year, Uber announced that it had concluded a partnership with Nile Taxi to introduce UberBoat in Cairo. | | Egypt Says Has Released 15,960 Debt Defaulters From Prison Since 2014 Egypt has released from prison 15,960 debt defaulters since 2014 amid the state's efforts to free people imprisoned over unpaid debts, an Egyptian official said. "The Tahya Misr Fund [a government-backed fund established to bolster social and economic projects] and other civil society organizations have settled the debt for the released prisoners," said Zakariya El-Ghamry, Deputy Interior Minister for the Prisons Authority. "Around 100,000 prisoners have been released in total since 2014, including debt defaulters. Those released include 46,000 who received presidential pardons, and 54,000 released conditionally." "Consequently, the country's prisons are now better equipped to offer medical and psychological care for prisoners in accordance with human rights accords," he added. Last August, Egypt's president launched an initiative dubbed "Prisons Without Debt Defaulters," which aims to help some of those imprisoned because they failed to repay money borrowed for family expenses. | | SCMR Receives License Requests for Websites, Dismisses Ones With 'Anti-State Tone' Egypt's Supreme Council for Media Regulation (SCMR) started on Sunday to receive license requests for new websites, dismissing those adopting what it called "an inflammatory tone against the state." The state's move comes as part of its efforts to regulate online websites, SCMR First Under-Secretary Abdelfattah El Gebaly told a news conference, saying that website owners have to submit their license applications, along with a license fee of EGP 50,000 ($2,791), within two weeks. "All online media outlets must be regularized within six months after the issuance of the executive regulation," he added. The new media law, passed by the Egyptian parliament last June, was ratified by President Abdelfattah El-Sisi last month. It stipulates that all media outlets and websites are forbidden from publishing or broadcasting fake news or any content that "contradicts the country's constitution, violates the profession's standards and ethics or disturbs public peace and order." "The new law applies to current and new websites. Unauthorized sites are expected to be held legally accountable and are punishable by law," El Gebaly stated, adding that the license expires after five years but remains renewable. The law also grants the council the right to block websites and censor a newspaper if it is proven that it violated the law. However, affected media outlets have the right to appeal the decision in the administrative court. | | Region Sisi Invited to Lay Foundation Stone of Dam Set to Be Built by Arab Contractors in Tanzania President Abdel-Fattah El-Sisi has accepted an invitation from his Tanzanian counterpart to attend the laying of foundation stone ceremony of Stiegler Gorge dam, which is set to be built by Egyptian company Arab Contractors. El-Sisi, during a phone call with Tanzania President John Magufuli, said he appreciates the historic bilateral ties between the two African countries, a presidential spokesman statement read. State-owned Arab Contractors won a tender to build the Tanzanian dam which, once completed, will more than double the country's power generation capacity. | | Stock Market Int'l Investors Sell $1.1 Bn Saudi Stocks in Huge Selloff Following Khashoggi Disappearance Foreign Investors sold a net SAR 4.01 ($1.07) billion of Saudi stocks in the week ending on October 18, marking one of the biggest selloffs since the market opened to direct foreign buying in mid-2015, Reuters quoted exchange data released on Sunday. The selloff came during a week when investors were rattled by Saudi Arabia's deteriorating relations with some western states following the disappearance of journalist Jamal Khashoggi. The Arab Gulf country announced on Friday that Jamal Khashoggi, who visited the Saudi Consulate in Istanbul two weeks ago to obtain paperwork, died in a fight in the consulate. A breakdown of the exchange data showed foreigners had sold SAR 5 ($1.3) billion and bought SAR 991.3 ($264) million worth of stocks. The Saudi index closed up 0.2 percent on Sunday after falling as much as 3.5 percent earlier in the session. In the wake of the Saudi announcement, 18 Saudi nationals were arrested pending investigations. Royal court adviser Saud al-Qahtani and deputy intelligence chief Ahmed Asiri were also sacked, a Saudi statement revealed. | | Region Jordan Says to End Land Peace Treaty With Israel Jordan said it had no intention of extending a 25-year deal that has enabled Israel to use two tract of territory along its frontiers, as the latter country was set to start talks over an extension. Swathes of land in Baquora, northwest of Jordan, and Ghumar in the south have been used by Israeli farmers. Under the 1994 peace treaty, which expires next year, some of these farmers owned plots of land and special travel rights to the kingdom. There has been public demand to end the deal with Israel. "These are Jordanian lands and they will remain," King Abdullah said, according to Petra state news agency which also reported that he told senior Jordanian politicians the kingdom wanted to exercise its "full sovereignty" over the two areas. | | Ahly Signs Record Sponsorship Deal With Presentation Sports Egypt's most successful club Ahly has signed a record EGP 520 ($29) million sponsorship deal with sports advertising agency Presentation. Ahly's chairman Mahmoud El-Khatib, a football icon at the club, and Presentation CEO Mohamed Kamel signed the four-year deal during a news conference in Cairo on Sunday. The new sponsorship deal is the most lucrative in the history of Egyptian football. The previous record was also set by Ahly when it signed an EGP 500 ($28) million deal with Saudi Arabia's sports marketing firm Sela last June. That four-year contract was unilaterally terminated by Sela last month in protest at insults directed at Saudi sports chief Turki Al-Sheikh by Ahly's die-hard football fans during an African Champions League game in Cairo. "I'm proud that we managed to conclude this deal after prolonged negotiations. If I die now, I will be very satisfied to have cooperated with a famed club like Ahly," Presentation CEO Kamel said. | |
