Finance Minister Mohamed Maait ETA's Overhaul Plan Includes Integrating Income Tax With VAT: Minister The Egyptian Tax Authority's (ETA) overhaul plan includes the integration of the general income tax with the value-added tax (VAT) via a new structure, Finance Minister Mohamed Maait said on Sunday. The structure was prepared after consultations with specialized international institutions, local experts and representatives of the ETA, Maait said during a meeting with some Egyptian accounting firms. "The development plan aims to enhance financial inclusion and shift towards a more digital system," he added. "It includes several dimensions such as the simplification and streamlining of the [tax paying] procedures. The plan is carried out in cooperation with Ernst & Young (EY), an accounting firm specialized in this field." Maait stressed that the main goal of the integration is to improve the standards of the ETA to place the authority in the same standing as of developed countries, "even if it took several years." In September, the finance ministry introduced a newly-designed website where financiers and registrars are obliged to pay their tax bills as it attempts to facilitate and simplify the procedures of tax collection. "As for normal taxpayers, the tax payment method will be optional, either via the paper system or electronically. However, the system will be mandatory for all citizens by the beginning of 2020," the finance ministry said in a statement last month. The ministry also introduced in early September an e-payment system for citizens to use to complete any transactions with governmental bodies. The new system will be operational by January 1. "Payments, including tax and customs dues which are over EGP 100,000 ($5,600), will only be made through e-payments -- excluding the checks that were written prior to this date," the ministry stated. | | PM Says Development in Egypt Hardly Felt Because of Population Boom Egypt's booming population is a hurdle in the face of the country's ongoing development efforts, according to Prime Minister Moustafa Madbouly, who echoed the same sentiments often repeated by different Egyptian officials. Speaking during a meeting with Natalia Kanem, the UN's Under-Secretary-General and Executive Director of UNFPA, Madbouly said high birth rates overshadow Egypt's development. Madbouly also said the government was working on a plan to curb the country's birth rate. "We don't have any other option," he said. The PM unveiled in September a plan to construct 20 fourth-generation cities to accommodate 30 million citizens and provide job opportunities in an effort to overcome the rapid population growth. The social solidarity ministry launched in May a family planning campaign with the slogan "Two are enough," aiming to contain the increasing population. The campaign seeks to reduce the birth rate to 2.4, targeting rural areas where many view large families as a source of economic strength and resist birth control, believing that it is un-Islamic. President Abdel Fatah El-Sisi said on several occasions the country's population growth poses "a challenge as critical as that of terrorism." In April, Egypt's statistics body CAPMAS announced that the country's population had surpassed 100 million. Government figures showed that population is expected to reach 128 million by 2030 if fertility rates of 4.0 births per 1,000 women per year continue. | The Central Bank of Egypt Egypt's T-Bills Yield Down for First Time in 2-1/2 Months Yields on Egypt's treasury bills retreated in Sunday's auction, marking the first decline in nearly two-and-half months amid strong turnout by banks and other institutions. Yield on 91-day T-bills fell 0.18 percent to 19.709 percent, from 19.893 percent last week, while yield on 273-day T-bills declined by 0.15 percent to 19.812 percent, from 19.968 percent. The finance ministry has received EGP 6.574 billion ($366.7 million) and EGP 9.3 billion ($518.8 million) from the 91 and 273-day T-bills auctions. Egypt's financing needs in the 2018/2019 budget amount to around EGP 714.6 (nearly $40) billion, of which EGP 511.2 billion are secured from local debt instruments, while the remaining amount is obtained from the issuance of bonds and the IMF loan. Meanwhile, foreign holdings in Egypt's government debt instruments have amounted to $17.1 billion since the floatation of the pound in November 2016 until the end of July, which is $23.1 billion lower than their level at the end of March. The central bank has cancelled a number of bond auctions over the few last weeks as foreign investors shied away from the country's debt amid a global weak appetite for emerging market assets. Meanwhile, the central bank decided last Thursday to keep overnight deposit and lending rates unchanged at 16.75 and 17.75 percent respectively. | | Free Economic Zones' Exports Up 8% YoY Egypt's publicly-managed free economic zones have recorded $14.7 billion in exports during the first nine months of 2018, an increase of $1.1 billion -- or 8.1 percent -- over the same period last year, with the country aiming to double the number of the country's free zones soon. Projects operating in the economic free zones currently stand at 1102 projects; 898 of which operate in the public zones while 204 operate in the private ones, Minister of Investment and International Cooperation Sahar Nasr told local media on Sunday. "These projects have contributed to providing 200,000 job opportunities," Nasr said. She revealed last month that seven new free economic zones comprising 1,000 projects were scheduled to be built soon. The free zones, which will create 120,000 jobs, will be built in Giza, New Ismailia, Daqahlia, Aswan, Minya, South Sinai and Kafr El-Sheikh governorates. Egypt currently has eight public free zones. | | Al Tamimi Considering Opening Branch in SCZone Al Tamimi and Co. law firm is considering opening its second branch in Egypt in the Suez Canal Economic Zone (SCZone) early next year, the head of its Egyptian branch Ayman Sherif told Amwal Alghad newspaper on Sunday. Al Tamimi is already in talks with the SCZone to obtain the required approvals, Sherif added, as its Egypt office became the third top for the firm in terms of businesses, behind UAE and Saudi Arabia. The law firm has 17 branches in nine countries and is studying the possibility of expanding in east and North Africa. Al Tamimi is specialized in businesses, particularly in restructuring and starting companies, acquisitions and mergers, drawing commercial contracts in addition to arbitrations and commercial disputes. | | Foreign Direct Investment  Minister Hopes Germany Becomes Among Top 10 Countries Investing in Egypt Minister of Investment and International Cooperation Sahar Nasr expressed her hopes that Germany becomes one of the 10 top countries that invest in Egypt Nasr, who made her comments during a visit by a German parliamentary delegation, said that German investments have reached $641.4 million through 1103 companies, ranking the European powerhouse 20th among countries that invest in Egypt. She also praised the work of German government-owned bank KFW's and German development agency GIZ's support of developmental projects in Egypt, adding that their cooperation portfolio has reached around €2 ($2.3) billion. | | NBE Triples Loans Allocated for Cotton Companies The National Bank of Egypt (NBE) has increased its allotted loans to cotton ginning and trading companies for the 2018/2019 agricultural season by 196 percent compared to the same period last year to match an anticipated increase in cotton production. NBE's new rounds of loans will reach EGP 2 billion ($111.5 million), up from EGP 675 ($37.8) million and will be available to all cotton companies across the country, according to a bank statement. Cotton production for this season is expected to reach 2.5 million Kantar (Cwt) planted on over 336,000 acres. Egypt's cotton exports have increased remarkably in the 2017/2018 season, which ended in August, as they reached over 50,000 tones, up by nearly 37 percent from the previous year. Cotton exports in 2018/2019 are expected to rise by approximately 40 to 45 percent -- around 75,000 tons -- according to a Reuters report in July. | | Real Estate Arabia Holding to Inject $28 Mn in Galleria New Cairo Arabia Holding is set to invest EGP 500 ($27.9) million in its Galleria New Cairo residential project in 2019 as the company is set to deliver its second phase soon. The company, which has invested EGP 2 billion in the project so far out of planned total investments of EGP 5 billion ($279 million), is working on delivering its second phase (around 300 units) before the end of this year. The seven-phase project, built over 75 acres, is 60 percent complete, with expectations that it will reach the 70 percent mark before 2019. | | Three Companies in the Running to Develop Downtown Cairo's Shepheard Hotel Three companies are in the running to develop downtown Cairo's historic Shepheard hotel after previous talks with an Emirati company to develop the property fell through. Seven companies applied for a chance to develop the hotel, but only three applicants were accepted, according to head of the Egyptian General Company for Tourism and Hotels (EGOTH) Mervat Hataba, who declined to mention the companies' names. The winning company will get the chance to acquire the majority stake of 51 percent and contribute $66 million out of the planned $100 million capital to develop the hotel, with EGOTH paying the rest. Studies conducted for EGOTH revealed that the hotel's return on investment will reach 27 percent. An unnamed Emirati company was in talks to develop the hotel along with EGOTH but talks eventually broke down. | | Stock Market Egypt Stocks Slump to 14-Month Low on Foreign Sell-Offs Egypt's stock market closed in the red Sunday after being battered by a selling spree from foreign investors, with the benchmark index falling to its lowest level in 14 months. Market capitalization lost around EGP 431 million ($24 million) to reach EGP 736.5 billion. Sunday's traded volume amounted to around 134 million shares, exchanged in 16,000 transactions at EGP 1.2 billion. The benchmark index, or EGX30, fell by 0.33 percent to close at 12,980 points, while the small and mid-sized stocks index EGX70 rose by 0.07 percent. The ongoing slump in emerging markets has led to a decline in the local bourse by 39% since last April, which drove the government to shelve its IPOs program, which was planned for this month, until next year. EGX Chairman Mohamed Farid earlier said the condition in the emerging market was difficult. He added, however, that Egypt is distinguished by its early economic reforms, legislative amendments and infrastructure development. | | Global Telecom's Shares Drop 65% YTD
Global Telecom Holding's (GTH) shares value has declined 65 percent since the beginning of this year, as talks of an acquisition fell through last month. The shares of the company -- a major EGX30 constituent -- now stand at EGP 2.61 (0.15) per share in the Egyptian bourse, down from EGP 7.38 ($0.41) recorded at the start of this year, Al-Mal newspaper reported. Experts told Al-Mal that GTH's shares could further dip this week to EGP 2.4 per share. However, it could climb back to between EGP 2.8 and EGP 3 ($0.17) if the company starts its capital-raising procedures. GTH said earlier this month that it will increase its capital by EGP 500 ($27.9) million to finance its loans' payment, debts and payables. In September, GTH said that an offer submitted by Amsterdam-based company VEON would be turned down as a required percentage of approval from minority investors and shareholders could not be reached. VEON, which already owns 57.7 percent of GTH, offered in July to acquire GTH's issued share capital in its Pakistani and Bangladesh companies and assume certain GTH Group debts and payables. GTH, formerly Orascom Telecom Holding, is an Egypt-based company that, through its subsidiaries, provides mobile telecommunication services in African and Asian countries such as Algeria, Pakistan and Bangladesh. | | Govt Creates Database of 25 Mn Poor Egyptians for More Social Safety Nets Egypt's social solidarity ministry has created a database of 25 million low-income citizens as it attempts to better implement social programs and ease economic burdens on the needy families. Deemed the largest database of poor families in Egypt, it is created in cooperation with some NGOs and the private sector, Minister of Social Solidarity Ghada Wali said on Sunday at the Narrative PR forum. "The ministry utilizes information technology to present low-income families with 17 distinct types of monetary support. The social solidarity ministry, in cooperation with some NGOs, is also currently implementing a program that aims to develop 300,000 housing units." Egypt's poverty rate soared to 27.8 percent in 2015 versus 25.2 percent in 2010, according to the latest data reported by Central Agency for Public Mobilization and Statistics (CAPMAS). The country is already the most populous in the Arab world with 98.2 million citizens in 2017 and the figure is set to grow to over 120 million by 2030 if fertility rates of almost 4.0 births per 1,000 women per year continue, according to CAPMAS. | | Fees on New Mobile Phone Lines Won't be Scrapped: Parliamentarians Egyptian lawmakers have denied that there are talks between the parliament and the finance ministry to cancel fees on new mobile phone lines imposed last July, Al-Mal newspaper reported on Sunday. Media reports suggested the fee was weighing down mobile network operators' sales and decreasing the purchase of new mobile lines. If the EGP 50 ($2.8) one-time fee for new mobile phone lines were to be scrapped, a law would have to be issued to that extent rather than a ministerial decree, the parliamentarians quoted in the report revealed. The new law also includes an EGP 10 (0.56) fee on the monthly bills of mobile phone lines. | | Egypt Post Offices to Open Doors for Traffic Ticket Payers Starting November Egypt's post offices nationwide will provide traffic ticket payment services starting from next month, the communications minister said on Sunday, as the country aims to end long-standing reliance on paperwork and queues at traffic departments. "The service, which will initially launch in Cairo for two weeks to ensure its technical readiness and then will roll out nationwide, will allow citizens to pay for all traffic-related services," Amr Talaat told reporters. "In addition, citizens can send complaints as well as receive certificates of … through any of the Egyptian post offices." On October 8, the Public Prosecution Office and National Post Authority signed a protocol of cooperation to provide traffic-related services such as the inquiry and payment of traffic violations and obtaining certificates of clearance from post offices nationwide. | | Magdi Yacoub Foundation Ponders Opening Heart Center in New Administrative Capital Magdi Yacoub Foundation (MYF) is considering establishing its newest branch of Aswan Heart Center (AHC) in the New Administrative Capital east of Cairo instead of New Aswan city in Upper Egypt, founder Magdi Yacoub revealed. "MYF's board of trustees agreed that there should be diversity in the places where there are centers for the children rather than being limited to Aswan only," Yacoub said during the inauguration of Mounir Armanious Research Center (MARC) for pharmaceutical research on Sunday. "The idea will soon be presented to President Abdel Fattah El-Sisi to consider." The AHC, which was launched in 2009, is an integral part of the MYF that aims to combat heart diseases in Egypt and offer health services for free to the less privileged. Last May, Yacoub announced plans to build a new international heart and scientific research center in New Aswan at an estimated a cost of $350 million. "The center will incorporate a total of 420 patient beds, including 120 beds for intensive care patients," he said at the time. "External clinics will receive about 80,000 patients annually; 1,200 highly trained medical staff members and researchers will operate the center." | | Agriculture Ministry Says to End Potato Shortage by Late November Egypt's agriculture ministry will end the potato scarcity by late November following the cultivation of a new batch of the vegetable, a ministry spokesman said on Sunday amid fluctuations in potato prices. "The agriculture ministry does not import potato seeds since it's simply not the job of the ministry. Its job is to guide, produce and conduct scientific research," Hamed Abdel Dayem told Extra News. The supply ministry began on Wednesday to offer via its outlets various types of vegetables and fruit at lower prices than in the market in an effort to control price hikes, particularly potatoes as the local market is continuing to witness a shortage of the vegetable after its price soared to unprecedented levels. The Potato Producers Association justified the increase in price by saying farmers had planted smaller crops this year after they were underpaid last year. It also cited climate change as one of the reasons affecting the crop's quality this year. Accordingly, prices of frozen potatoes have also hiked during the past days, especially after merchants were obliged to sell their entire stock by early December in a bid to lower the soaring prices of fresh potatoes, Agriculture Minister Ezz Eldin Abu Setet said on Sunday. Egypt's potato exports doubled nearly twice last year and eight times over the past 11 years, according to data reported by the Central Agency for Public Mobilization and Statistics (CAPMAS). | | Upper Egypt Prioritized in Natural Gas Delivery Program for Homes: Minister Priority is given to Upper Egypt governorates in the natural gas delivery program for homes as the focus turns to the most densely populated areas, Petroleum Minister Tarek El Molla said on Sunday. "During the last week of this month, natural gas will be delivered to Maghagha area of Minya governorate and Al-Sadaka City of Aswan," El Molla said in a statement. According to El Molla, about 9.12 million housing units have been supplied with natural gas since the start of the program so far, adding that citizens were required to pay a fee of EGP 30 ($1.7) per month, excluding the deposit, for the gas delivery. The minister had earlier revealed that the state spends more than $1.5 billion per month on the provision of petroleum products to the local market, with the bill including imports and the share of foreign oil companies. | | Supply Ministry Issues Special Ration Cards to Neediest Citizens The Egyptian supply ministry has started issuing new ration cards for the neediest citizens if they meet its conditions, with up to 670 cards already issued by the ministry as part of its subsidy system. "The supply ministry will only issue these special ration cards only if it was provided that the monthly income of the citizen does not exceed EGP 2500 ($139) and pensioners EGP 2000 ($112)," an official source at the ministry told Al-Shorouk newspaper on Sunday. "In addition, Solidarity and Dignity pensioners, divorcees, widows and low-income employees are allowed to register in the subsidy system during the current period." The official highlighted that the new ration cards will only include a maximum of four individuals per card. "The ration outlets will still continue to offer a range of products for citizens to choose from in accordance with the needs of their families and the number of individuals enrolled on each ration card -- until the end of October." "November's first batch will be pumped into the outlets starting next Thursday." | | International Egypt, China Ink First MoU in Archaeology The Egyptian antiquities ministry and the Chinese Academy of Social Sciences (CASS) inked their first memorandum of understanding (MoU) in archaeology in a bid to bolster cooperation in the field and raise archaeological awareness among citizens of both countries. Starting November, the first Chinese archaeological mission will begin working in an archaeological site in Egypt to conduct surveys, excavation, restoration and documentation works, according to a cabinet statement. The signing of the MoU was witnessed by China's Vice-President Wang Qishan, who paid a short visit to Egypt, and Egyptian Prime Minister Mostafa Madbouly. Qishan also toured a number of touristic sites across Egypt, including the Giza Plateau and the tomb of King Tutankhamun in Luxor's Valley of the Kings. | | Owner of Britain's Leicester City Football Club Killed in Helicopter Crash Leicester City football club confirmed late yesterday that its Thai owner Vichai Srivaddhanaprabha was among five people who were killed in a helicopter clash following the end of a Premier League game on Saturday. "It is with the deepest regret and a collective broken heart that we confirm our chairman … was among those to have tragically lost their lives on Saturday evening when a helicopter carrying him and four other people crashed outside King Power Stadium," the club said in a statement. "The world has lost a great man. A man of kindness, of generosity and a man whose life was defined by the love he devoted to his family and those he so successfully led. "Leicester City was a family under his leadership. It is as a family that we will grieve his passing and maintain the pursuit of a vision for the Club that is now his legacy." Police said the aircraft carrying Vichai and four other people, including two members of his staff, crashed in a car park near Leicester City's King Power stadium an hour following the team's 1-1 Premier League draw with West Ham United. The Thai tycoon bought the unfancied club in 2010 and stunned the world by leading them to a jaw-dropping Premier League triumph in 2016 at the expense of established powers such as Manchester United, Liverpool and Chelsea. | | Stock Market Saudi Stock Market Up 8% YTD Despite Q3 Losses The Saudi stock market is up about 8 percent year to date although it has weakened in the third quarter as foreign funds slowed their buying after MSCI's announcement in June that the kingdom will be included in its global emerging market benchmark next year. The stock market managed to limit its losses in the week ending on October 25 despite foreigners selling SAR 2.34 billion ($624 million) worth of shares, as local institutions made stock purchases worth SAR 8.06 ($2.1) billion. The foreign selling slowed from a record SAR 4.01 billion in Saudi stocks last week when investors were jolted by the kingdom's deteriorating relations with western states following the killing of journalist Jamal Khashoggi, Reuters reported quoting market data. The data did not disclose the names of the Saudi institutions that supported the market by making purchases. However, Reuters reported the previous week that the Public Investment Fund has been indirectly supporting local stocks, using local institutions, to limit a market crash caused by the killing of Khashoggi. | | Five-Star Barcelona Too Strong for Real Madrid in Exciting Clasico Luis Suarez netted a hat-trick as Barcelona demolished arch rivals Real Madrid 5-1 in an entertaining Clasico, increasing the woes of the European champions. The Uruguayan frontman converted a penalty on the half-hour mark, headed home on 75 minutes and completed his hat-trick with a delicate chip seven minutes from time. Brazilian playmaker Philippe Coutinho opened the scoring with a composed finish early on and Chilean midfielder Arturo Vidal completed the rout with a late header. Real Madrid scored a consolation via a low shot from Brazilian left-back Marcelo in the early stages of the second half. The defeat left Real, who lost their last three league games, ninth in the table, seven points behind leaders Barcelona. Real coach Julen Lopetegui is likely to be dismissed following the embarrassing defeat. "We had 15 difficult minutes but we had a great performance," said Barca coach Ernesto Valverde. "The first half belonged to us. They turned things around by playing fullbacks as wingers and we were caught out by it and suffered after their goal. Then we sorted ourselves out and took advantage of their risky approach." | |
