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Email : [email protected] net/home.html 62nd YEAR No. 14 & 15 CAIRO WEDNESDAY, APRIL 8 & 15, 2015 ESTABLISHED 1945 Printed at Societe Orientale de Publicite Email : [email protected] (S.O.P.) - Cairo - Egypt Flash WE AND THE WORLD OIL UP MORE THAN US$1 AFTER SAUDI'S ASIA PRICE HIKE ON THE EDGE Ahmed Foda It seems that the world is on the verge of WWIII, one that seems to be approaching the Middle East, its winds blowing from USA; which seems to have miscalculated the strength of Asian countries, mistaking them for Russia; that is going through one of its down phases?. What is taking place in the Middle East could be the extension of a fire igniting somewhere else? It is evident that Saudi Arabia is tar- geted by parties that seek to sabo- tage the Middle East, and drag it into chaos; parties that are totally unaware of the damage awaiting the region in case of further escala- tion?I dare that heading these par- ties is Iran. This said, I wish to express my concern about Pakistan joining in the Gulf war against terrorist groups, as this might add oil to the fire, and then the flames will spread out of its currently contained region, and is bound to engulf much more than planned, taking the war to more serious levels. Levels Increasing Demand of Oil. that threaten to take the world a step closer to WWIII, which as Oil futures climbed more than US$1 a ly not happen before 2016. "While clearly on Friday as markets were closed for the SUEZ DRY DIGGING WORK NEARING speculated no one knows its barrel last Monday, after Saudi Arabia a bearish headline, a final deal and full start of the Easter holiday. parameters. raised prices for crude sales to Asia for a lifting of sanctions still faces a number of Despite the sanctions on Iran, China's COMPLETION second month, signalling better demand in obstacles," Morgan Stanley analysts said imports from the OPEC producer are set The dry digging work at the New Suez Canal project, the region. in a note. Even if a final deal is reached, we to rise from August as a Chinese state trad- which involved around 20,000 workers and 80 companies, International benchmark Brent regained do not expect any physical market impact er has signed a deal with the National is due to be completed next week, said a report. ground after tumbling as much as 5 per before 2016," the analysts said. Iranian Oil Company to buy more conden- The move is aimed at increasing the Suez Canal’s capacity cent last Thursday, when a preliminary Brent crude for May delivery LCOc1 sate. to 97 passing ships per day, up from the current rate of 49 per nuclear deal was finally reached between touched a high of $56.19 (38 pounds) a The world's top exporter Saudi Arabia day, the state-owned news agency MENA reported. world powers and Iran. More Iranian oil barrel and was up $1.19 from Thursday at kept output steady and cut its official sell- The project, which kicked off last year, will soon see a new could enter global markets if that is fol- $56.14. US crude for May delivery CLc1 ing prices (OSPs) sharply late last year in 72km-long canal being dug alongside the original. It would lowed by a comprehensive deal by June. was $1.21 higher at $50.35 a barrel, after a fight for market share during a global involve 35km of dry digging and 37km of “expansion and But analysts warned a ramp-up in earlier touching $50.48. There was no set- supply glut. deep” digging, the report said. exports could take months and would like- tlement in either Brent or US crude futures (Cont. on page 5) Once the project gets ready, the canal revenues are bound to Gen. Sedky Sobhy in his way to increase by 259 per cent, up from current annual revenues of PRESIDENT SISI : STATE BUDGET CAN LAGARDE HIGHLIGHTS EGYPT'S POTENTIAL $5 billion, it added. Pakistan. NOT FINANCE THE ESTABLISHMENT OF AND SAYS IMF READY TO HELP We need to keep in mind that THE NEW CAPITAL arms manufacturers are working President Abdel Fattah El Sisi has stressed the importance of International Monetary Fund chief Christine Lagarde last Saturday praised Egypt's March economic summit and expressed belief in the country's potential to day and night to provide the Gulf observing interests of the limited income and marginalized cate- war with enough ammunition, and gories in the underway national projects, saying that the state gen- achieve growth, saying the IMF is ready to offer help to the country in all possible ways. that the Middle East military arse- eral budget should not be overburdened with the costs of the new nal is getting packed?.such a situa- administrative capital, which will be carried out through invest- In a letter sent to the Egyptian President, Abdel-Fattah El-Sisi, Lagarde lauded the num- ments that will be injected from abroad. ber of deals and agreements reached at the Sharm El-Sheikh summit, according to Al- tion at this dangerous point I find Ahram's Arabic website. Lagarde also, commended recent legal amendments made in quite scary. LE37B. IN SUBSIDY TO SUPPLY Egypt, and the government's plan to achieve economic stability. "Egypt has the capabilities Al Ahram mentioned that the COMMODITIES IN THE BUDGET to achieve the aspirations of its people in a comprehensive strong development process," current war in Yemen will deter- Minister of Supply, Dr. Khaled Hanafi, said that the subsidies she said in the letter. Lagarde was one of the speakers at the three-day economic summit mine the future status of the bal- appropriations for the supply commodities of the coming fiscal last month. Egypt signed deals worth a total of $60 billion during the conference, Egyptian ance of power, relationships, and year 2015/2016 will not be more than those of the past year, ie LE Prime Minister said at the closing ceremony. interactions in this part of the 37 billion. The Minister expects that those subsidies are likely to Investment deals worth $36.2 billion were signed, Mahlab said, in addition to $18.6 bil- world. This part of the world; the decline due to the current measures the Ministry of Supply have lion for engineering, procurement and construction (EPC) contracts and loans totalling $5.2 Prime Minister Mahlab visiting Rashid - Behaira’s petroluem projects. renowned Arab world seems to be already adopted. billion. Egypt's wealthy Gulf allies Saudi Arabia, the , Kuwait and witnessing an unfolding plan, one Oman pledged an additional $12.5 billion in aid and investments. EGYPTIAN ELECTRICITY HOLDING that no one can foretell its repercus- 50 BUSINESSMEN FROM MEGA AZERBAIJANI COs TO PM INSPECTS RASHID PETROLEUM sions. COMPANY (EEHC) VISIT EGYPT WITHIN COMING MONTHS CO. IN BEHIRA Ahmed Foda UPPER EGYPT ELECTRICITY A delegation grouping 50 Businessmen from mega Azerbaijani companies will pay Prime Minister Ibrahim Mahlab inspected Monday PRODUCTION COMPANY (UEEPC) a visit to Egypt within the upcoming few months to explore available investment Rashid Petroleum Company and inaugurated a number of Comment opportunities in Egypt and carry out new projects in co-operation with the Egyptian SOUTH HELWAN SUPERCRITICAL new Petroleum finds. EGYPT PLANS TO private sector. During his visit to Rashid Petroleum Company (Rashpetco), SECURE OIL SUPPLY POWER PLANT 3x650MW The two sides stressed the importance of boosting trade and economic ties along Mahlab was briefed on the company’s activities. DISTRIBUTED CONTROL SYSTEM with exploring available investment opportunities in Egypt and Azerbaijan. In addition, officials at Rashid Petroleum Company said that WITHIN PRICES FALL EGYPT TO LIST 2 OIL COs WITHIN TWO WEEK nine phases to develop petroleum finds in the West Delta area Amid the global fall in oil prices (DCS) Egypt will list two public sector oil companies on the Egyptian Stock Exchange (EGX) have been accomplished. over the past seven months, the Procurement Notice No. (13/2015) within two weeks’ time out of 4 companies according to the government plan, They also said that investments in this area estimated at $12 revenues in many energy export- The Government of Egypt has Secured for a Loan from The billion. ing nations have fallen also, while Investment Minister Ashraf Salman stated Monday. In related context, Egypt has a well-devised future energy International Bank for Reconstruction and Development Speaking at the American Chamber of Commerce, Salman said that the details of the many importing countries are (IBRD) toward the cost of South Helwan Supercritical Power strategy that will make it by 2020, or even before, export gas likely to have to pay less, a matter initial Public Offerings (IPOs) for the four companies would be announced within two with the new finds, Mahlab said. Plant 3x650 MW and intends to apply part of the proceeds weeks’ time. that drive Egyptian government to President Abdel Fattah Al-Sisi has been following up the ener- secure public need in low prices toward payments under the contract for the Distributed Control gy file, and held over five meetings to review electricity, gas and Systems (DCS). EGYPT BANKS, STOCK EXCHANGE TO CLOSE 12-13 petrochemical industries projects, the premier said during the and supporting the economic Upper Egypt Electricity Production Company ( UEEPC), a APRIL tour of Rashpetco in Beheira’s Idko City. development plans, Dalia wholly owned subsidiary of the Egyptian Electricity Holding Mahlab then inspected a third-generation rig operating for Mohamed of MENA wrote. Company ( EEHC) is inviting Sealed Tenders from The The Egyptian stock exchange and all banks operating in the country are to close on , Minister of 12 and 13 April, reported Al-Ahram Arabic news website. Burullus Gas Company in the Mediterranean Sea. International Bank for Reconstruction and Development He also inspected another rig owned by the Egyptian Natural Petroleum and Mineral Wealth, (IBRD) eligible Tenderers to submit Tenders for the The public holiday is for Coptic Christian Easter and Sham El-Nessim, a celebra- announced that the harsh decline in tion linked directly to ancient Egypt marking the beginning of spring. Gas Holding Company (EGAS), Ganoub El-Wadi Petroleum Distributed Control Systems (DCS) Contract Package . Holding Company and Japanese Toyota Company. crude oil prices will support achiev- The Scope of work includes, but is not limited to design, fab- In a related context, the Petroleum Ministry signed 56 new ing sustainable economic growth, rication, furnishing, shop testing, delivery, installation, super- Banque Du Caire FOREIGN EXCHANGE RATES agreements to prospect for gas and oil from November 2013 until secure power supply at reasonable IN EGP POUNDS March 2015 with total investments of $12.1 billion, said Ismail. vision, transport to the Site, providing onsite technical servic- Treasury Department DATED APRIL 6, 2015 prices and help in refunding petrole- es, training place into successful operation, Start up and com- PREPARATIONS UNDERWAY FOR um sector's due debts. missioning for the complete Distributed Control Systems and CURRENCY Over the current low prices, the Operating Training Similator. BUY SELL INAUGURATION OF NEW SUEZ CANAL US Dollar 7.580000 7.630100 Ministry has a futuristic vision to The Tender Document will be available at UEEPC's office Head of the Mohab Mamish said last Euro 8.318300 8.400800 overcome the energy challenges, on April 6th, 2015. Tenderers may receive the tender document Saturday that preparations are underway for the inauguration cer- Pound Sterling 11.295000 11.386900 emony of the New Suez Canal. "The ceremony will be of a world including the gap between supply by submitting a written application in one original and two Canadian Dollar 6.066900 6.122300 class," Mamish said to MENA, adding that the dredging works at and demand, the decline in explo- copies to the address below and upon payment of nonrefund- Danish Krone 1.113200 1.121200 the new waterway project will be finalised before a deadline in ration and prospection investments, able fee 1000 USD against payment receipt from National Norwegian Krone 0.955700 0.9655001 July. The Suez Canal Authority will be responsible for running the slowdown in refunding foreign Bank of Egypt (Dokki Branch), Egypt.( Account no, Swedish Krone 0.886400 0.895000 the Suez Canal Corridor . Development project until a new body partners' due debts, as well as the 1600001111005006739) Swiss Franc 7.948800 8.020801 is formed, he made it clear. "We await a Cabinet decision to take imbalance in the energy mix. Upper Egypt Electricity Production Company (UEEPC) Japanese Yen (100) 6.361200 6.418100 this responsibility and deal with the investors," he pointed out. The government has actually El-Kureimat - Atfih - Giza, Egypt Australian Dollar 5.768400 5.830300 EGYPT TO RECEIVE GULF DEPOSITS embarked on executing a compre- Attention: Head of Procurement Sector Kuwaiti Dinar 25.245600 25.406100 hensive strategy for overcoming Tel. No. : 0020829210733/0020233357086 Saudi Arabian Rial 2.020700 2.031900 IN TWO WEEKS such challenges through encourag- Fax.No. : 0020829210753 - 0020829210755 - UAE Dirham 2.063700 Egypt will receive the pledged deposits from the Gulf in the ing oil exploration and prospection 2.074900 coming two weeks, the minister of investment, Ashraf 0220237610578 Bahraini Dinar 20.104500 20.237900 and exploiting the untraditional Email: [email protected] Salman, announced last Monday. resources of production like the Omani Rial 19.688300 19.819000 Gulf countries have pledged at least $3 billion in deposits to Email: [email protected] QatarI Rial 2.081800 2.096200 shale gas. This, in addition to secure The tenders must be submitted not later than June 11th, 2015 Egypt's central bank as part of a total of $12.5 billion in aid dur- Jordanian Dinar 10.698700 10.775500 ing an economic conference held last month in Sharm El-Sheikh. gas supply via importing further in two envelopes at 12:00 noon (Egypt local time), Envelope A freights at the current low prices as must contain all the required information, (except all Above rates are applicable for amounts up to USD. 25.000 or Egypt's net international reserves stood at $15.5 billion at equivalent for larger amounts, please refer to Treasury Department. the end of February. well as regularly refunding foreign Schedules of Quantities & prices) and must include a tender partners' due debts. security in an acceptable form equal to 125000 USD, Envelope In late November 2014, Ismail A must contain all Schedules of Quantities & prices. said that the government intends to Only Envelope A will be opened on June 11th, 2015 at 12:00 repay a total of $4.9 billion debt noon (Egypt Local time) in the presence of tenderer's represen- owed to oil and gas foreign partners tatives who choose to attend at the headquarters of UEEPC at within six months. This step aimed the address shown above. to encourage foreign companies to Tenderers whose tenders have been determined to be sub- Happy Spring Festival boost exploration and production in stantially responsive shall be informed of the opening date for order to ease an energy shortage. envelope B . From 2010 until mid-2014, world The tenderers may obtain additional information by contact- oil prices had been fairly stable, at ing UEEPC's consultant at the address shown below: around $110 a barrel. But since June Power Generation Engineering and Services Company prices dropped by more than half. (PGESCo) Brent crude oil has now dipped 41 El-Salam Avenue, Center District, New Cairo, Cairo, below $50 a barrel for the first time Egypt since May 2009 and US crude is Attention : Project Procurement Manager down to below $48 a barrel. Tel No. :002- 0226176497 Fax No. :002- 02-25370481 Our next Issue will be on Wed. April 22, 2015. (Cont on page 2)

APRIL 8 & 15, 2015 FOREIGN ENERGY FIRMS OWED $3.3BN ARAB CONTRACTORS2 BY EGYPT 18TH COMESA SUMMIT KICKS OFF IN ETHIOPIA CO. RAISES INVEST- Egypt owes foreign energy firms $3.285 billion having The 18th COMESA with Seychelles's vice-pres- MENTS IN ETHIOPIA paid them $9.369 billion in arrears in the nine months to Summit kicked off in the ident on the sidelines of his March 31, an oil ministry spokesman told Reuters. Ethiopian capital last week. participation in the COME- BY $111M The ministry told Reuters last month that it aimed to fully Under the title of "Inclusive SA meeting. The Arab Contractors Co. is repay its debt to energy firms by mid-2016, a year later than and Sustainable During the meeting, building two projects in previously indicated. Industrialization", the summit Mahlab asserted that Egypt Ethiopia, with investments Hammered by instability since a popular uprising which will discuss solutions to eco- returned to its role at all amounting to more than $111m, ousted leader in 2011, Egypt has delayed pay- nomic challenges in levels, noting that the according to the company ments to oil and gas firms. COMESA's 19 member states. roadmap will be completed President and CEO Mohsen Arrears began to accumulate before the revolt, but worsen- It will also focus on econom- shortly through holding the Salah. ing state finances saw the debts mount to billions of dollars ic partnership agreements with parliamentary elections. In a press statement last while the government diverted gas earmarked for export to the European Union (EU). He added that success Saturday, Salah said the company meet domestic demand.Gas production has declined in Egypt Ethiopian Prime Minister achieved during Sharm el built construction projects in while consumption has risen, but firms have been reluctant to Hailemariam Desalegn was Sheikh economic confer- Ethiopia last year with investments increase investment in exploration and production, particular- handed over the presidency of ence confirmed that Egypt amounting to $30m, and Ethiopian ly in costly offshore areas, until the government pays them. the summit from the is going on the right path at employment in the two projects is EGYPT TO BEGIN LNG IMPORTS AS Democratic Republic of Congo all political and economic approximately 90%. at the beginning of the event. levels. FLOATING TERMINAL ARRIVES On his part, Desalegn The premier asserted that “The company is studying build- Egypt moved closer to easing its chronic power shortages stressed the importance of Egypt has experts and train- ing a new affordable housing proj- last Thursday as the arrival of a floating import terminal using the clean energy in the Prime Minister Ibrahim Mahlab ing centers which ect in Addis Ababa, such as resi- marked the start of imports of super-cooled liquefied nat- industrial field in Africa and Seychelles can benefit from dential buildings of 7, 9, and 12 ural gas (LNG), Reuters said. improving the level of adminis- especially in the tourism sec- floors”, added Salah. “The compa- The Hoegh Gallant floating storage and regasification unit tration, stressing the importance of merging the three major economic blocs summit that tor which represents the main source of income ny is willing to participate in carry- (FSRU) from Norway's Hoegh LNG arrived off Ain Sukhna on the regional economic blocs as the sole way for will be held in Egypt's Sharm el-Sheikh City to Seychelles. ing out Ethiopian development the Gulf of Suez, an official at state gas board EGAS told developing African countries. next June 10th to announce meeting them to be Seychelles's vice-president lauded President projects, which the government Reuters.It is carrying an initial cargo of 160,000 cu m of LNG. COMESA Secretary General Sindiso Ndema an important step toward creating African Abdel Fattah El Sisi's efforts to achieve devel- intends to put forward during the Egypt has exported LNG in the past, but the Hoegh Gallant Ngwenya also attended the inauguration cere- trade zone according to the Abuja Treaty and opment in Egypt and to achieve peace and sta- current stage.” will allow the country to begin imports. mony. Arusha Declaration. The summit will tackle bility in the region. He referred to an Arab The two roads are represented in Energy is politically sensitive in Egypt, where dissatisfac- For his part, Ngwenya said that the trade peace and security issues, as well as conflicts summit resolution to form a joint Arab force to in the COMESA region, based on recent two phases of the international tion with persistent power cuts has sparked protests that have movement among the COMESA countries hit achieve stability in all Arab countries. road between Nairobi in Kenya helped topple two leaders in four years. more than $22 billion against only $3 billion in reports and recommendations by the African Mahlab also met with Sudan's vice-presi- Energy consumption is rising and production falling, turning Union. The anti-terrorism file is also on the and Addis Ababa the Ethiopian the past, noting that the "COMESA"s imports dent. He hailed as "historical" the relations capital. The international road is Egypt from an energy exporter to a net importer and forcing hit $97 billion, stressing the importance of agenda of the ásummit. Participants will be dis- between Egypt and Sudan. the government to seek energy from abroad to head off the cussing ways to counter terrorism, armed vio- considered a part of international developing the industrial capabilities of the He asserted that Egypt is paying great atten- road project between Cairo and country's worst energy crisis in decades. COMESA countries. lence and threats that jeopardize citizens' life tion to co-operation with Sudan in all fields, The country is more than $3 billion in arrears to foreign Heads of state and government of African and harm private and public property. proposing to co-operate in a joint agricultural Cape Town in South Africa. energy companies, partly from diverting gas set for export to countries were also present. They will stress the need for African coun- farm through which a land would be cultivated Head of the East and West energy-starved domestic users. Prime Minister Ibrahim Mahlab is leading tries to adopt a comprehensive approach to in Sudan by Egypt. The two sides stressed the Africa sector Ibrahim Mabrouk Hoegh signed a five-year contract with Egypt in November Egypt's delegation to the summit. He is accom- deal with terrorist organisations. necessity of finalising all roads and crossing said that the first road is on a 2014 to provide the import terminal and the country has since panied by the ministers of trade and industry, Figuring high in the summit is also efforts to projects which connect the two countries like length of 94.5 km, and the rate of agreed to a number of LNG import deals. electricity, housing and planning, as well as the upgrade African infrastructure, with focus on a Cape Town-Cairo road. Mahlab also met with completion reached 88% with a EGAS has agreed to import 33 LNG cargoes from Trafigura deputy foreign minister. navigational route connecting Lake Victoria Uganda's Vice-president on ways of boosting cost of $ 54.7m. It is expected to , 9 from Vitol, 7 from Noble, and 6 from Mahlab delivered Egypt's speech to the sum- and the Mediterranean city of Alexandria. the bilateral ties. They asserted that Egypt and be completed by the end of May Algeria's Sonatrach, to be delivered in this year and next. mit, in which he will preview steps taken by PM Meets Vice-Presidents of Seychelles, Uganda have the potentials for integration in 2015. Last month, EGAS signed a deal to import 35 LNG cargoes Egypt to achieve development and stability. Sudan, Uganda on Sidelines of COMESA several sectors, including the agricultural and Managing Director of the from Russia's Gazprom over five years On his part, Mahlab called for partaking in In a related context, Mahlab met last week livestock fields. Ethiopian branch of the Arab Contractors Co, Yasser Bakir said TALKS TO BE HELD MID-APRIL FOR ARAB that the second road has a length of 72 km, and the rate of completion CUSTOMS UNION ESTABLISHMENT: MINISTRY OF reached 35%, with a cost of INDUSTRY $56.5m, and will be completed in A meeting will be held mid-April at the Arab League headquarters to negotiate the June 2016. rules for establishing an Arab Customs Union. The Arab Contractors Co. is The meeting is set to discuss rules that aim to achieve industrial integration between Arab affiliated to the Egyptian Ministry countries, Saied Abdullah, First Undersecretary of the Ministry of Industry and Foreign Trade of Housing and has projects in told state-run MENA. more than 29 countries. It has One of the necessary steps for establishing the union is the issuance of an Arab common major investments in Africa, customs law, which has already been formed, and work is underway for its enforcement, amounting to $2bn. according to Abdullah. He further mentioned that steps are expected to be taken this year involving ensuring the 15% OF REVENUE free movement of goods and the standardisation of traded product specifications, as well as the formation of customs tariff classification for goods. FROM BEIT President Abdel Fattah El Sisi during his meeting with PM Mahlab and the Ministers of Electricity and Petroleum. The Arab Customs Union's main goal is to ensure the ease of trade between Arab League AL-WATAN GOES members by removing trade quotas and restrictions, as well as constraints on movement of IMPORTS OF PRODUCTS WITH FM: EL SlSI TO VISIT goods, individuals, capital and more. This will further open the door for the establishment of TO LOW-INCOME an Arab Common Market (ACM) in the foreseeable future. FOLKLORIC FEATURES TO BE JAPAN SHORTLY The idea however is not new, as it has been “a long awaited dream”, as some media outlets PROJECTS BANNED: ABDEL NOUR President Abdel Fattah El Sisi plans to have cited its existence from the 1960s. The cabinet approved the two visit Japan during the coming period in “Arab countries have very similar economic structures (relying mostly on raw materials) requests from the Minister of Imports of products that have features of Egyptian folk- response to an invitation from the Housing to direct 15% of the total lore and antiqui- and find little interest in trading with each other, and they therefore integrate with industri- Japanese prime minister, said foreign min- alised countries,” , former finance minister and a current Adviser for the revenue from “Beit Al-Watan” ties are to be ister . lands to the Social Housing Fund banned, Minister Supreme Planning Council of Oman, told Daily News Egypt previously, commenting on the In statements to representatives of main causes of this significant delay. and to amend some terms of of Industry and applications for social housing Foreign Trade Japanese media outlets, Shoukry said that the During the 16th conference of Arab Businessmen and Investors held in November 2014, Mounir Fakhry planned visit of Sisi is meant to promote co- Arab League Secretary General Nabil El-Araby declared that the Arab Customs Union will be units in the “1 million housing Abdel Nour operation with Japan in all fields. launched in 2015. He added that the ACM will be active in six years, emphasising that the units” project, said Minister of announced last The minister hailed as close the relations organisation has taken steps that would lead to those forthcoming goals. Housing in Saturday. between Egypt and Japan at the political, eco- To date, no tangible results have been reached and no exact decisions of the date of launch statements to the press last week. The ban aims to nomic and cultural levels. Japan is a key part- have been defined. Further, the requirements of establishing the union have yet to be fulfilled This is within the framework of preserve Egyptian ner to Egypt, he went on to say. by member countries. the Ministry of Housing's steps heritage and folk The top diplomat replied, during the meet- For instance, a unified customs tariff is crucial for the materialisation of the union; howev- towards social justice and support- art as well as pro- ing with Japanese media figures, to their er it has not yet been reached. ing low-income individuals, he tect the intellectual questions about Cairo's vision about regional During the preparatory meeting for the Arab League that kicked off at the end of March, added. property rights of issues including the crisis in Yemen, said Middle Eastern countries were called upon for forming national teams composed of relevant “15% of the revenues from the Egyptians. Spokesman for the Foreign Ministry Badr ministries and institutions to follow up on the Arab Customs Union's requirements at the Beit Al-Watan project, designated Engraved prod- Abdel Aatti. national level. for selling lands to Egyptian expa- ucts, sculptures, “ICO” ON MILLENNIUM DAM The General Secretariat of the Arab League was also called upon to provide technical sup- triates, will be directed to the social ceramics, clay fig- port programmes to the national teams in order to build their capabilities through cooperating housing fund that was founded two urines are among STUDIES TO BE CHOSEN with regional and international organisations. months ago in order to finance the the banned prod- The International Consulting Office (ICO) Arab member states were further requested to regulate their tariff structures in order to form implementation of the 1m housing ucts. Wooden prod- on the Ethiopian Millennium Dam studies is a unified customs tariff. unit project,” said Madbouly. ucts, metals, gems, decided to be chosen on Wednesday out of 4 The second decision concerns carpets, musical offers from ICOs. ANA FIRST OFFICE TO BE OPENED IN EGYPT increasing the age range of appli- instruments and On his part, irrigation minister advisor Alaa The Johannesburg-based African News Agency (ANA) chairman Ladislas Agbesi unveiled that its country wishes to open an office for the agency in Cairo to be the first office for the cants for the social housing project architectural forms Yassin stated that choosing the consulting office to 50 years instead of 45 for owning that have Egyptian is complicated, thus it had been delayed for 60 agency outside South Africa. features will also be banned. He told "Al-Ahram" paper that the creating of this entity aims to satisfy the Africans' desire and renting units. The decision days. came in response to citizens' Chamber of Tourist Antiquities member Hussein Al-Gabry He added that intensified and important meet- to get the information from its source and via purely African point of view. previously stated that at least 7,000 bazaars were shut down requests to expand the deserved cat- ings would be held before the Egyptian experts' ARMED FORCES’ ENGINEERING AUTHORITY HEAD egory, the minister noted, clarifying out of 14,000 licensed bazaars during 2014. He added that travel to Ethiopia for partaking in the national those that remain open only remain because the owner does INSPECTS NEW DABAA PROJECT that the repayment period has also not pay rent. “Chinese goods and antiquities are scattered in committee that would be held late this week. Head of the Armed Forces' Engineering Authority Kamel Al-Wazir inspected the new increased to 20 years instead of 15 the Egyptian bazaars for two reasons; the first is the cheap He added that the meetings will last for three Dabaa project for following up the works in the site and getting acquainted with the construc- for ownership units. prices and low cost of importing these goods, and the second days for creating the Egyptian final vision for tion works in the new city. Madbouly further noted that a reason is that the tourists who visit Egypt are less affluent than the meeting, in addition to considering means of In his part, Al-Wazir said that the authority is racing against time to complete the works in part of the revenues from sales of previously,” said Chairman of the Chamber of Tourist implementing the principles agreement that had the new city that includes the building of 1,500 housing units on an area of 2,380 feddans in the lands of the Urban Communities Antiquities, Mohammed Al-Qattan. been inked by the leaders of Egypt, Sudan and the style of Bedouins at a total cost of LE1 billion as a gift from the armed forces to the Dabaa Authority and from the partnership Ethiopia late last month in the Ethiopian capital. inhabitants harmed from the nuclear project. projects with the private sector will also go to low-income social hous- Comment ing projects and to deliver facilities EGYPT PLANS TO SECURE OIL to low-income areas and villages. SUPPLY WITHIN PRICES FALL COLLECTIVE (Cont. from page 1) The reasons for such change envisage two DECLINE IN EGX THE MIDDLE EAST OBSERVER main reasons including the weak demand in INDICES EVERY WEDNESDAY MORNING many countries, as well as the Organization of The Egyptian Stock Exchange ECONOMIC, PUBLISHED TO COVER the Petroleum Exporting Countries (OPEC) (EGX) indices shut on Monday’s determination not to cut production as a way to session collectively down over THE MIDDLE EAST, ARAB GULF Violations prop up prices. AND AFRICAN MARKETS Egypt's daily consumption of oil products, sales by local and foreign invest- Head Office and Advertisements : 41, Sherif Street, Cairo, Egypt including natural and liquefied natural gas, ment funds and institutions as the Tel.: 23939732 - 23926919 Fax : 23939732 - 27485844 reached up to 2.1 million barrels, Ismail told Al- government is about to impose 10 E-mails Address: Masry Al- Youm daily, which left a shortage of per cent on capital gains tax on [email protected] - [email protected] profits and dividends of listed [email protected] - [email protected] more than 500,000 barrels daily. On his part, Tarek Al Mulla, Chairman of the securities. Web. www.meobserver.org The market capital lost about LE CCR.: 113389. Egyptian General Petroleum Corporation Printed at Societe Orientale de Publicite (S.O.P.) Cairo - Egypt (EGPC) said that the petroleum sector has adopt- 7.4 billion to reach LE 495.3 bil- lion, amid transactions which sur- The Publisher : AHMED FODA ed three core initiatives for securing oil supply in Egypt. The first initiative is represented in boost- passed LE 1.1 billion. Chief Editor : H.A. RAOUF ing exploration and prospection in the border The main benchmark EGX 30 Economic Counsellors : YASMIN FODA areas, including the Red Sea, Mediterranean as index went down by 1.16 per cent MAHMOUD FODA well as the Western Desert areas, he explained. reaching 8,508.24 points. N.M.M. RASHED The second initiative addresses securing oil The broader EGX 70 index of supply through increasing oil reserves and main- the leading small and medium Dir. of Public Relations : KAMAL MOKHTAR National Council for Human Rights taining the new and old oil reservoirs as well as sized enterprises (SMEs) dropped Annual Subscriptions ; increasing the rate of importation, especially by 1.4 per cent recording 483.08 Egypt : LE275 - Aborad : $420 - £295 with such low prices. The third initiative will points. The overall EGX 100 index Website : http:www.meobserver.net/home.html From Al-Ahram address boosting production from non-tradition- went down by 1.17 per cent reach- Email : [email protected] al sources like the shale gas, he added. ing 985.59 points.

APRIL 8 & 15, 2015 Business Opportunities A.R.E Texts, Laws and Regulations3 (Tenders Prepared by Our Staff) Official Journal- Issue No. 11 (Supplement) - Dated the 12 March 2015 - Electric Electronic Meters sites (Beni Sueif, Borollos “Kafr ing: design, furnishing, receiv- ¥ Three (3) Generator cir- Presidential Decree-Law No 17 of the year 2015 ABO/10 for Electric Energy by El-Sheikh Gov.” and the New ing at the site, storage, installa- cuit breakers and accessories Cards. Administrative Capital loca- tion, testing and Placing into (22.5KV . 23 KA) Amending Some Provisions of the Joint Stock Companies, Partnerships Due Date : 20.4.2015 tion). successful operation of DC ¥ Three (3) Set of isolated Limited by Shares and Limited Liability Companies Promulgated by Booklet : LE 15000 (2) Establishment of combined equipment, electrical distribu- phase buses including acces- Law No. 159 of the year 1981, General Sales Tax Law No. 11 of the year - Electronic Meters A 100/5 by Cycle Power Plant with a capac- tion panels, relay panels, UPS sories (22.5 KV) Cards. ity of about 900 MW in El- equipment, medium and low The tender document will 1991 and Investment Guarantees and Incentives Law and Law No.8 of Due date : 21.4.2015 Seiouf Site. voltage cables, cable trays, con- be available at UEEPC's the year 1997 promulgated thereby, Booklet : LE 3500 (3) Conversion the existing 6th duits and other miscellaneous office on February 5th, 2015. and Income Tax Law No. 91 of the year 2005 Client : North Delta for Electricity of October simple Cycle Power electrical and instrumentation Tenderers may receive the (Cont. from last week) Distribution Manssourah - Cairo. plant extension to combined equipment. tender document by submit- Article (23): *** Cycle by adding about 300 MW. ¥ Receiving at site, storing, ting a written application in The provisions of Article (4) of the Law Regulating Customs Exemptions, referred to above, pertain- The Mechanical and Electrical Due date : 15.4.2015 installation, testing and placing one original and two copies to ing to collection of a customs tax at a unified rate of 2% (two percent) of the value shall apply on com- Department invites sealed bids Booklet : US$ 5000 into successful operation of the address below and upon panies and establishments subject to the provisions of the present law regarding all their imports of form eligible bidders for supply Bid Bond : US$ 1500000 electrical and instrumentation machinery, equipment and devices necessary for their establishment as of the date of enforcing this law. payment of non-refundable Article (29): & erection of squirrel cage induc- Client : Egyptian Electricity Co. - equipment, furnished by fee 1000 USD against pay- tion motors Cairo. owner, such as power trans- A free zone covering an entire city shall be established by a law. - Group (A): Bid Security *** formers, isolated phase system ment receipt from National The Cabinet of Ministers may, upon a proposal of the competent minister and the Minister of Finance, (100000) Euro. - The Egyptian Tourist ,control panels, etc. Bank of Egypt (Dokki establish public free zones to set up licensed projects, regardless of their legal forms. The decree estab- - Group (B): Bid Security (3000) Authority ETA announces its Due date : 20.4.2015 Branch) Egypt. lishing the free zone shall indicate its location and boundaries. A Cabinet of Ministers' decree shall spec- Euro. International Public Bid to Booklet : US$ 1500 (Accout no. ify the fields of activity that are permissible for investment under the free zone system. The Executive 1600001111005006739). Regulations shall set out the conditions and procedures necessary for the security of the free zones. - Group (C): Bid Security (20000) develop and execute Egypt’s Bid Bond : US$ 650 000 A public free zone shall be managed by a board of directors, formed, and its chair person appointed, by Euro. International Integrated Client : Upper Egypt Electricity Due Date : 15.4.2015 Bid Bond : US$ 750 000 a decision of the Authority's Board of Directors. The board of directors of the free zone shall be respon- - Group (D): Bid Security (10000) Marketing and Advertising Production Company (UEEPC) sible for enforcing the provisions of the present Law, its Executive Regulations and the decisions to be Euro. Campaign (2015 - 2018) among South Helwan Supercritical Power Client : Upper Egypt Electricity issued by the Authority. Client : Mechanical And internationally qualified agen- Plant 3x650 MW. Production Company (UEEPC) Without prejudice to customs and tax exemptions determined for projects established in free zones, all Electrical Department cies and companies in this field. *** Giza, Egypt projects invested under the free zone system shall be subject to customs and tax controls. Booklet: LE 2500 Due date : 31.5.2015 at 12:00 pm. - Supply, erection a unit for *** In all events, no license shall be granted for establishing projects under free zone system in the field of Due Date : 8/7/2015 Booklet : LE 10000 Carbon Oxid (100%) 22.5 T.H ARAB TENDERS fertilizers industries; iron and steel; petroleum manufacturing; natural gas manufacturing, liquefaction ¥¥¥ Bid Bond : LE 3500000 Due date : 12.4.2015 DUBAI EMIRATES and transport, or any other energy-intensive industries, which are to be determined by a Cabinet of Supply leed lamps 120 cm c.18 w Client : Ministry of Tourism Booklet : LE 1000 Ministers' decree. - Tender for Construction of Article (31 Paragraph - 2): and leed lamps 60 cm c.8w Egyptian Tourist Authority ETA Bid Bond : 2% Moh. Ben Zaied City in Booklet : LE 200 Misr Travel Tower - Abbassiya The license shall indicate the purposes for which it has been granted, its term, and the amount of the - Manufacturing and Supply Fugairah Emirate. financial guarantee to be paid by the licensee. This license may not be assigned, in whole or in part, except Bid Bond : LE 6500 Square - Cairo. of Sulfate Aluminium Unit. Due date : 19.4.2015 upon the approval of the authority issuing same. Denial of a license, or of assignment thereof, shall be - Supply and erection of cameras *** Due date : 13.4.2015 Booklet : LE Derh. 3000 effected by a substantiated resolution. The party concerned may lodge a complaint against such denial control system - Import of complete boiler for Booklet : LE 500 Bid Bond : Derh. 1,000,000 with the Committee set out in Article (101) of the present Law. Booklet : LE 200 - BB LE 11500 steam generating plant with all Client : El-Nasr Co. for Article (32 Paragraph -1): - Supply Machine for Managing accessories with capacity from Client : www.mopw.gov.ae Fertilizers - Attaqua - Suez. *** Without prejudice to Article (29, Paragraph - 4) of this Law, and to the provisions prescribed in laws Metal Sheets C.N.C. C. 20 tonnes 100 to 120t/hr superheater *** and regulations prohibiting dealing in certain goods or materials,' goods exported by free zone projects or hydraulic and hydraulic C.N.C. steam at operating conditions : AJMAN / UAE imported by same for performing their activities, shall not be subject to the rules governing import and - Upper Egypt Electricity Replacement and renewal of two C. 120 tonnes Hydraulic 43 kg/cm2 and 430 co fired by Production Company export activity, nor to the customs pr9cedures on exports and imports. Such goods shall als.o not be sub- Booklet : LE 1500 natural gas, pumping stations ject to customs duties, the general sales tax or other taxes and duties. (UEEPC), A Wholly Owned Due Date : 14.4.2015 Article (35 Paragraph - 2): Bid Bond : LE 60000 Booklet : LE 5000 Subsidiary Of The Egyptian Client : North Cairo For Electricity Bid Bond : LE 2% of the offer by Booklet : 5% These projects, however, shall be subject to an annual fee of 1 % (one percent) of commodity value Distrbtion, Cairo. Foreign Currency. Electricity Holding Company Client : Municipality & Planning upon ingress with respect to the storage projects, and of commodity value upon egress concerning man- ¥¥¥ Client : El-Nasr Fertilizers Co. (EEHC) Is Inviting Scaled Dept., Ajman ufacturing r and assembly projects. Transit trade goods shall be exempted from this charge. Manufacturing and supply sulfat Attaqa - Suez. Bids From The International [email protected] Article (43 Paragraph -1): Bank For Reconstruction And Projects in public free zones shall not be subject to Law No. 113 of the year 1958, referred to above, amonium unit. *** DUBAI EMIRATES or to Chapter Five, Part II of the aforementioned Labor Law. Due date : 19.4.2015 The Government of Egypt Development (IBRD) Eligible Bidders To Submit Bids For - Supply and Erection of Lifts Article (46): - Tender for developing two boil- Has applied for financing from for Al-Qasemi Hospital - The provisions of Articles (8, 9, 10, 10-Bis, IO-Bis-I, 11, and 20) of the present Law shall apply to ers 3-5 (Japanese) for the power the Islamic Development Bank The Power Transformers investment in free zones. Package. Sharjah and Saqr Hospital in station (IDB) to finance the electrical Raas El- Kheima Area. Article (51. Paragraphs 3 and 4): Due date : 20.4.2015 equipment / instrument instal- The scope of work includes, Due date : 27 - 28 .4.2015 Paragraph - 3: Booklet : LE 500 lation contract package for but is not limited to design, Booklet : Derh. 1000 The Chief Executive Officer (CEO) of the Authority shall Issue a decision establishing work rules and Client : El-Nasr Fertilisers - Attaka, South Helwan Supercritical fabrication, delivery and pro- Bid Bond : Derh. 100 000 procedures at such offices. Suez power plant 3X650 mw. viding onsite technical super- Client : Ministry of Health - Paragraph - 4: *** Upper Egypt Electricity vision during erection and The Chief Executive Officer of the Authority shall determine, by virtue of a decision thereof, the func- Dubai - UAE. tions of the Authority's branches in a manner that ensures co-ordination among such branches and - Egyptian Electricity Holding Production Company (UEEPC), start up for the following: *** Company (EEHC) is inviting a wholly owned subsidiary of the ¥ Three (3) Main Power between them and the Central Investment Services Unit. - Supply of Cables (Tender 68 Article (55 Paragraph -1): local and international consult- Egyptian Electricity Holding Transformers (bank of three E/2015) The Authority shall issue the final license within a period not exceeding fifteen days from the date of ing firms to participate and sub- Company (EEHC) is inviting single phase transformers and Due date : 19.4.2015 issuance of all required licenses and approvals by the competent bodies. The final license shall be issued mit bids for providing the international tenderers to sub- one spare single phase trans- Booklet : Derh. 3000 through the Authority's employees at its offices or branches, who are authorized to issue such license; pro- required consulting services for mit tenders for the electrical former (300 MVA/phase). Bid Bond : 5% of the offer vided the documents stated in the application as stipulated in Article (54) of the present Law are duly com- the following projects : equipment/instrument installa- ¥ Three (3) Unit Auxiliary Amount pleted. If said period has lapsed without the issuance of the final license, the CEO of the Authority shaH, (1) Establishment of three com- tion contract package. transformers (54MVA). Client : Federal Electricity and within one week, submit the matter to the committee prescribed in Article (101) of the present Law, to bined cycle projects, each The scope of work includes, ¥ One (1) Station service Water Authority - Dubai take the proper decision within a maximum of fifteen days, in accordance with the rules and procedures (4x1100 MW) capacity, in three but is not Limited to the follow- transformer (54MVA). Website - www.fewa.gov.ae to be prescribed in the Executive Regulations. Article (60 Paragraph - 1): The CEO of the Authority, or whoever he delegates, shall be responsible for issuing the necessary cer- tificates for companies and establishments that are subject to the present Law, to enjoy tax and customs Economic & Social Indicators Bulletin of the Arab Republic of Egypt exemptions, and any other exemptions, in light of the laws regulating such exemptions. (Article 5) New articles (7-Bis-1), (10-Bis), (10-Bis-1), (20-Bis), (30-Bis), (46-Bis-1), (51-Bis), and (60-Bis) shall be added to the Investment Guarantees and Incentives Law, referred to above. Furthermore, a third para- graph shall be added to Article (31), a second paragraph shall be added to article (33), and a second para- graph shall be added to Article (54) of the said Law, in addition to three further paris: fifth, sixth and sev- enth. The following are the texts thereof: Article (7-Bis-1): In cases where the crime is committed in the name and for the account of the legal person, the person responsible for the actual management of that legal person shall not be penalized, unless his knowledge of the crime is established as well as his intent to commit it for his benefit or for the benefit of others. In the case where the liability of the natural person is not established as defined in the preceding para- graph, the legal person shall be penalized by a fine not less than fourfold the fine stipulated for the crime by law and not exceeding tenfold thereof. A verdict may ordain suspension of the activity license of the legal person for a period not exc.eeding one year. In case of recurrence of crime, a verdict shall ordain the cancellation of the license altogether, or dissolution of the legal person, as the case may be. The verdict shall be published in two widespread daily newspapers at the expense of the legal person. The foregoing shall not preclude ordain of any complementary or subsequent penalties prescribed inlaw. Article (1O-Bis): Without prejudice to the provisions set forth in laws and decrees pertaining to investment, the investor shall have the right to establish, expand or develop the investment project, and to finance, possess, man- age, use, and dispose it, and gain and transfer its profits, and to liquidate the project, and transfer the pro- ceeds of such liquidation, in whole or in part, without prejudice to the rights of third parties. (To be cont.) A.R.E. FOREIGN TRADE MONTHLY SUMMARY (November 2014) EXPORTS THROUGH PORTS DURING JAN. 2013 Table No. 2-A Value in 000 LE (Cont. From last week)

PORTS Nov. Nov. Change Nov. Jan./Nov. Change 2014 2013 2014 2013

Alexandria 3627416 4521912 894496- 50125589 50262355 136766- Western Frontier 132069 174596 42527- 1382961 1763795 380834- Port Said 331946 439244 107298- 4165616 5643455 1477839- Suez 4132083 3179105 952978 32504556 38164004 5659448- Damietta 674299 877520 203221- 9694142 11908428 2214286- Al-Arish 328924 413544 84620- 3552853 4443955 891102- Al-Dekhelia 978035 922966 55069 11116595 10598211 518384 Safaga 221141 188950 32191 1324752 2158844 834092- Kosair and Red Sea ports 79840 46729 33111 750542 997579 247037- South Frontier (Wadi Halfa) 105687 111722 6035- 1011772 1482111 470339- Air Ports 2086565 2006529 80036 22367935 24434733 2066798- Other ports 3469092 2756191 712901 36018725 31114895 4903830

Total 16167097 15639008 528089 174016038 182972365 8956327- Source : The Central Agency for Public Mobilisation and Statisties. (CAPMAS)

(To be cont.) The Egyptian Cabinet - Information and Decision Support Centre (To be cont.)

APRIL 8 & 15, 2015 4 Egyptian International Pharmaceutical Industry Co. (EIPICO) An Egyptian Joint Stock Company S.A.E., Under the Provisions of Investment Law Commercial Register No. 11116 - Ismailia Head Office and Factories Address: Industrial Area- B1 Sharqia Governorate, 10th of Ramadan City. Trust …. Leadership … Excellence The Authorized Capital Amounts to L.E.850 Million - The Issued and Paid-In Capital Amounts to L.E.793.364Million Proposed coupon cash appropriation L.E 3.3 Net Profits for the Year L.E. 320 M. Net Sales L.E. 1553 Million The Most Significant Notes Accompanying the Financial Statements For The Financial Year Ending as at 31 December 2014 (1) Legal entity & activity: Egyptian International Pharmaceutical Industry Co. (EIPICO) is a joint stock company established on 18 December 1980 pursuant to Law No. 43 of 1974. The company's activity is represented in manufacturing drugs, pharmaceutical products and distributing its production in Egypt and abroad. (2) Bases of preparing the financial statements: The financial statements are prepared according to the Egyptian accounting standards and in light of the applicable laws and regulations. (3) The most significant accounting policies applied: 1/3 All the financial transactions are recorded in the books in Egyptian pound. 2/3All transactions carried out during the year in foreign currencies are translated in Egyptian pound based on the prevailing exchange rates on the date of transaction. All the balances of the assets and liabilities of monetary nature in foreign currencies are revaluated during the year and at the end of each financial period. The foreign exchange differences are recorded in the income statement at the end of each financial period. 3/3The revenues and expenses are recorded on accrual basis and the revenue is recognized when the incident of sale occurs and the goods are submitted to the client. 4/3The inventory count is carried out according to the methods in practice and measured accord- ing to the production cost or net selling value, whichever less. 5/3 Assets depreciation: Fixed assets: Fixed assets are recorded in the books at historical cost. The depreciation of fixed assets is calcu- lated using the straight-line method in accordance with the depreciation rates that are applicable in pharmaceutical industry and the depreciation of the additions during the year is calculated on quar- terly basis. The fixed assets are presented in the balance sheet at the cost of asset, accumulated depreciation and the net book value. Goodwill : The cost of goodwill on the date of merger (30/9/1999) amounted to L.E 370 million where the amount of L.E 282125 million was amortized and the balance of goodwill as at 31/12/2014 amounted to L.E 87875 million. 6/3 Investments in associates are valuated at cost and in case of impairment in recoverable value or investment below its book value, the value of such investment shall be reduced with the amount of impairment and charged to the income statement. 7/3 : Income tax: The tax due amounts from the company for the year are calculated based on the laws and the decrees applicable in this regard. The required provision of tax liabilities is formed after conduct- ing a study in light of the tax claims. The company settle its tax due amounts based on the tax returns.

*Proposed earnings per share for the profits of the year 2014 to be distributed among shareholders is (L.E 3.30 per share). **10% of the distributable profits after deducting 5% as legal reserve and 5% as first appropriation to the shareholders from the paid in capital according to article No. 52 of the articles of association of the company. Accountant / Ali Ibrahim Ragheb Financial Sector Head Dr./Ahmed Borhan EL-Deen Ismael BOD Chairman &Managing Director

Total(11) Deferred tax liabilities : The income tax of the profits of the year includes deferred tax resulting from the existence of some temporary dif- To The Shareholders of the Egyptian International Pharmaceutical Industry Co. (EIPICO) ferences due to the variation of the period of time when the accounting profit of the period includes revenues or The subject matter of the audit: expenses while they are included in another period that brings about temporary differences. We have audited the accompanying financial statements of the Egyptian International Pharmaceutical Industry Co. (EIPICO) S.A.E, which (12) Tax position : comprise the balance sheet as at 31 December 2014, and the income statement, statement of changes in equity and statement of cash flows The tax due amounts from the company for the activity of the year are calculated based on the laws and the decrees for the financial year then ended, and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Financial Statements applicable in this regard. The required provision of tax liabilities is formed after conducting a study in the light of These financial statements are the responsibility of Company's management. Management is responsible for the preparation and fair pres- the tax claims. The company settle its tax due amounts based on the tax returns. entation of these financial statements in accordance with the Egyptian Accounting Standards and in the light of the prevailing Egyptian laws, First: Corporate tax: management responsibility includes, designing, implementing and maintaining internal control relevant to the preparation and fair presen- The years from the inception of activity till 31/12/2007: tation of financial statements that are free from material misstatement, whether due to fraud or error; management responsibility also The company was tax inspected and internal committees were formed hence, the tax file was settled for the said includes selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. years and the tax due amounts were paid. Auditor's Responsibility The years 2008/2009: Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Egyptian Standards on Auditing and in the light of the prevailing Egyptian laws. Those standards require that we comply with ethical The company was tax inspected and notified thereof by virtue of form No. 19;.the company objected thereto and has requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material mis- not been notified of a date determined to consider the dispute. statement. -The last tax return (corporate tax) was submitted to the large taxpayers center for the financial year ended as at An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The pro- 31/12/2013 and the due tax amount was paid based on the tax return in the month of April 2014. cedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, Second: Payroll tax: whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation The years from the inception of activity till 31/12/2011: and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the The company was tax inspected and internal committees were formed hence, all tax differences were settled based purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presen- on the decision of the internal committee in this regard.The year 2012: The tax inspection is currently in process. tation of the financial statements. The period from 1/1/2013 till 31/12/2014: We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial The company withholds the due tax amounts from all employees according to the law and remits them on due legal statements. time to the large taxpayers center. The company has not been tax inspected for the said period up to this date. Opinion Third: Stamp tax: In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Egyptian The years from the inception of activity till 31/12/2012: International Pharmaceutical Industry Co. (EIPICO) S.A.E, as of 31 December 2014, and of its financial performance and its cash flows for The company was tax inspected and internal committees were formed hence, the tax differences were paid based on the year then ended in accordance with the Egyptian Accounting Standards and the Egyptian laws and regulations relating to the prepara- tion of these financial statements. the tax returns and the tax file was settled for the said years. Report on Other Legal and Regulatory Requirements Fourth: Tax sales: The Company maintains proper books of account, which include all that is required by law, and by the statutes of the Company, the finan- The years till 31/12/2011: The company was tax inspected and the differences resulting from the inspection were cial statements are in agreement thereto, the company applies cost system that meets the purpose thereof and the inventory was counted by paid. management in accordance with methods in practice. The years 2012/2013: The tax inspection is currently in process. The financial information included in the Board of Directors' report, prepared in accordance with Law No. 159 of 1981 and its executive Fifth: The withholding tax & advance payments: regulations, is in agreement with the Company's books of account The company withholds the due tax amounts from all the parties dealing with the company and settled them accord- El-Maazawy ing to the tax card of each taxpayer to the competent tax inspectorate till 30/9/2014 and the payments were settled till 31/12/2014. Arafat Mohamed Abdel Salam El-Maazawy (13) Comparative figures Egyptian Society of Accountants and Auditors Fellowship The comparative figures were reclassified to comply with the classification of this year. Egyptian Taxation Association Fellowship The Arab Federation of Accountants & Auditors Membership

APRIL 8 & 15, 2015 Egyptian International KUWAIT INCOME PLUNGES OVER CRUDE PRICE SLUMP5 Pharmaceutical Industry Co. (EIPICO) The Most Significant Notes Accompanying the Consolidated Financial Statements (1) Legal entity of the subsidiary company: Egyptian International Ampoules Company (EIACO) is a joint stock company subjected to Investment Law No. (8) of 1997. The company's activity is represent- ed in manufacturing pharmaceutical ampules. The Egyptian International Pharmaceutical Industry Company (EIPICO) is the major shareholder in the capital of the company where it participates in the Egyptian International Ampoules Company (EIACO) with a percentage of 98.63% while the remaining percentage of 1.37% represents the participation of some employees working for the Egyptian Traders follow the stock market activity at the Kuwait Stock Exchange. (AFP) International Pharmaceutical Industry Company (EIPICO). Kuwait's revenues dropped by one fifth in the first 11 months of the fiscal year due to (2) Bases of preparing the consolidated financial statements the decline in global oil prices, according to figures released by the Finance Ministry last 2/1 The financial statements of (EIPICO) and its subsidiary (EIACO) which com- Thursday, AFP said. menced its production in the year 2007 were prepared based on the Egyptian Revenues of the OPEC member reached 23.2 billion dinars ($77.3 billion, 71.4 billion euros) Accounting Standards and in the light of the regulations and decrees in effect. until the end of February to 28.9 billion dinars in the same period last year — a fall of 19.7 per- 2/2 All the similar items of assets, liabilities, equity, revenues and expenses of cent. The decline is mainly due to a 27.4 per cent dive in oil revenues from 27 billion dinars (EIPICO) and its subsidiary (EIACO) were consolidated. 3/3 The consolidated financial statements were prepared after excluding the fol- last year to 21.2 billion dinars. lowing: Oil income still represents 91.4 per cent of total public income. Oil lost around 60 per cent 1- The cost of investment made by (EIPICO) company in its subsidiary (EIACO) of its value since June due to oversupply, with a strong dollar and a weak global economy in return for decreasing its equity in the subsidiary company. dampening demand. Price of Kuwaiti oil averaged well above $100 a barrel last fiscal year but 2- The minority interest share in the net profit of the subsidiary and the surplus is currently hovering around $50. Kuwait's fiscal year runs from April through March. Revenue carried forward was specified in an independent item in the consolidated financial figures for March have not yet been published. Despite the sharp drop in revenues, the Gulf statements in proportion with the shares owned by (EIPICO) in the subsidiary com- state posted a provisional budget surplus of 9.9 billion dinars and it is expected to end the year pany. with a windfall for the 16th consecutive year. Kuwait calculated the price of oil last fiscal year 3- The balance resulting from the transactions exchanged between (EIPICO) at $75 a barrel but reduced the figure to $45 a barrel in the current 2015/2016 fiscal year, which company and the subsidiary company were excluded. began on Wednesday. As a result, the emirate is projecting a deficit of $24 billion. Sustained The Fixed Assets (Net) surpluses since 2000 have boosted fiscal reserves of the country's sovereign wealth fund The following is a statement of the movement and balances of the fixed assets to around $550 billion, according to unofficial estimates. items (per million Egyptian pound) SAUDI NON-OIL GROWTH HITS BAHRAIN FORUM SIX-MONTH HIGH ON FAMILY Growth in Saudi Arabia's non-oil private sector accel- BUSINESS ISSUES erated to a six-month high in March, while it slowed to The issues facing a 17-month low in March in the UAE as expansion of Bahrain's family business- both output and new orders eased, surveys of business- es and what needs to be es showed, according to Reuters. done to make their model The seasonally adjusted SABB HSBC Saudi Arabia more robust discussed at a Purchasing Managers' Index rose to 60.1 points last month key seminar last Saturday, from 58.5 points in February, indicating the kingdom's TradeArabia News Service (4) Projects in progress : economy continues to comfortably ride out low oil prices. said. The projects in progress represent what has been spent on the assets to be The 50-point level separates expansion from contraction. Organised by Khalid completed and transferred to fixed assets that amounted to L.E 155.990 thousand Kanoo-led Bahrain Family as at 31/12/2014, which included the documentary credits opened as at The Saudi government has continued spending heavily on 31/12/2014 to purchase fixed assets whose details are as follows: economic development and welfare projects despite the Business Association, the plunge of oil prices since last June. It is drawing down its seminar has been conducted huge foreign currency reserves to cover its budget deficit. by EY Family Business Output growth surged to 67.6 points in March, its fastest Centre of Excellence execu- since June 2011, the survey showed. New order growth tive director and leader accelerated to 67.3 points. Loutfi Echhade, reported the Accountant / Ali Ibrahim Ragheb Employment growth slowed slightly but remained strong Gulf Daily News. at 53.7 points. Output price inflation edged up to 50.4 points Echhade's experience Financial Sector Head but input price inflation increased faster, to 53.7 points. includes due diligence for Dr./Ahmed Borhan EL-Deen Ismael Detailed PMI data are only available under licence from mergers and acquisitions, valuations, company reor- BOD Chairman & Managing Director Markit and customers need to apply to Markit for a licence. The HSBC UAE Purchasing Managers' Index fell to 56.3 ganisation and restructuring points last month from 58.1 in February. The 50-point level and advising on governance separates growth from contraction in the survey of 400 for a number of multination- firms. al family-owned businesses. "Rates of expansion eased for the second month running He has led courses on var- and were below those seen through much of last year," said ious topics, including inter- Philip Leake, economist at data provider Markit. "As a nal audit, risk management, result, workforce numbers rose at the slowest pace in three fraudulent reporting and years." family and corporate gover- Output growth dropped to 60.7 points from 64.3, while nance. A member of the new order growth slowed to 61.6 from 63.3. However, Family Firm Institute in the growth in export orders actually accelerated because of US and the Family Business strong demand in neighbouring countries. Employment Forum in the Middle East, growth fell to 51.3 points. Echhade has more than 35 Input costs and output charges fell simultaneously for the years of experience in serv- first time in five years, which the survey attributed to stiff ing companies in the region. competition among suppliers. Input price inflation tumbled Kanoo had invited family to 49.3 points from 53.6; output price inflation edged up to business owners to attend 49.2. the event at The K Hotel, BAGHDAD MAKES $455M BUDGET Juffair PAYMENT TO KURDS LIBYA'S Iraq's Kurdistan region received a $455 million budg- OFFICIAL GOVT et payment from Baghdad for March, proof the nation- TO DEPOSIT OIL al government honours a deal over the Kurds' oil poli- cies, the country's finance minister said last Thursday, REVENUES IN according to Reuters. UAE Baghdad cut the budget payments in January 2014 over Libya's internationally (9) Deferred tax liabilities : the semi-autonomous region's plans to export its oil through recognised government said it The income tax imposed on Turkey but reinstated them in December after the Kurds plans to open a bank account abroad to deposit oil rev- the deferred tax profits resulting agreed to export an average of 550,000 barrels per day enues, hoping to divert pro- from the existence of some tem- (bpd) from Ceyhan via Iraq's State Oil Marketing ceeds from the industry away porary differences due to the Organisation (SOMO) in 2015. from the country's rival The agreement aimed to help Iraq increase oil exports at administration in Tripoli, variation of the period of time a time when revenues are strained by low global prices and Reuters said. when the accounting profit of the cost of fighting Islamic State insurgents who seized con- Crude revenues are at the the period included revenues or trol of large areas in the north and west last summer. heart of a battle for control of expenses while they are includ- "Both sides are committed to implementing the agree- the North African OPEC pro- ment in good faith," Finance Minister Hoshyar Zebari told ducer that has pitted the two ed as tax profit in another period rival camps and their respective that brings about temporary dif- Reuters. armed forces against each other ferences subject to taxation, the Zebari, a Kurd, added that the payments had come in for four years after the fall of the past five months. Iraq made its last payment to the Muammar Gaddafi. matter that leads to creating Kurds for February on March 19. Prime Minister Abdullah Al- deferred tax liabilities. The The semi-autonomous Kurdish region was promised 17 Thinni's government, which is deferred tax is recorded using per cent from this year's $105 billion national budget, which based in the east, has gradually the tax rates prevailing on the averages out to a monthly payment of $1 billion. released details about a new So far, neither side has been able to reach its immediate payment system for the oil sec- date of the balance sheet. tor, but analysts say it may targets. The central government has severe cash flow prob- struggle to convince interna- lems, burdened by low oil prices and the war against tional traders it is legally enti- The Auditor's Report Islamic State. tled to claim ownership of To The Shareholders of the Egyptian International Pharmaceutical Industry Co. (EIPICO) The Kurds have struggled to reach the export target of Libyan crude. The subject matter of the audit: 550,000 barrels per day from their fields and from national Until now oil sales and rev- We have audited the accompanying consolidated financial statements of the Egyptian International Pharmaceutical Industry Co. (EIPICO) S.A.E, which comprise the fields in Kirkuk they are now responsible for exporting enues have gone through balance sheet as at 31 December 2013, and the income statement, statement of changes in equity and statement of cash flows for the financial year then ended, and a from. Libya's central bank and the summary of significant accounting policies and other explanatory notes. Total Kurdish oil exports have now reached an average of National Oil Corporation Management's Responsibility for the Financial Statements 300,000 barrels per day, according to Zebari. (NOC) in Tripoli, which says it These consolidated financial statements are the responsibility of Company's management. Management is responsible for the preparation and fair presentation of these wants to stay out of the conflict financial statements in accordance with the Egyptian Accounting Standards and in light of the prevailing Egyptian laws, management responsibility includes designing, Both sides have displayed "a steady, insistent commit- between the two governments. implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether ment" to honouring their deal, he said. Thinni's decision, announced in due to fraud or error; management responsibility also includes selecting and applying appropriate accounting policies; and making accounting estimates that are reason- IRAQ OIL EXPORTS HIT RECORD a statement late Saturday, able in the circumstances. authorised his government's Auditor's Responsibility 2.98M BPD IN MARCH parallel NOC to open a separate Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Egyptian Iraq's oil exports rose in March to record 2.98 million bank account in the United Standards on Auditing and in the light of the prevailing Egyptian laws. Those standards require that we comply with ethical requirements and plan and perform the audit barrels per day (bpd) from 2.597 million bpd in the pre- Arab Emirates for oil revenues to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. vious month, the oil ministry said in a statement last and to seek independent oil An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected week. sales. depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. It would also open represen- In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements Exports from Iraq's southern terminals reached 2.712 mil- lion bpd, while exports from the north via the Kurdistan tative offices of its NOC in the in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal United States, Britain and control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well pipeline were 268,000 bpd in March, the ministry said. as evaluating the overall presentation of the consolidated financial statements. Germany, and carry out swaps March shipments generated $4.457 billion in revenue. of Libyan crude for refined We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. Iraq sold its crude for $48.24 per barrel. Opinion products and fuel to provide In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Egyptian International basic supplies. Seeking sepa- Pharmaceutical Industry Co. (EIPICO) S.A.E, as of 31 December 2013, and of its financial performance and its cash flows for the year then ended in accordance with the rate oil transactions would like- Egyptian Accounting Standards and the Egyptian laws and regulations relating to the preparation of these consolidated financial statements. ly exacerbate the conflict with Report on Other Legal and Regulatory Requirements the Tripoli administration, ***The Company maintains proper books of account, which include all that is required by law, and by the statutes of the Company, the consolidated finan- which was set up by Libyan cial statements are in agreement thereto, the company applies cost system that meets the purpose thereof and the inventory was counted by management in Dawn forces who took over the accordance with methods in practice. capital in the summer and ***The financial information included in the Board of Directors' report, prepared in accordance with Law No. 159 of 1981 and its executive regulations, is forced Thinni's government to in agreement with the Company's books of account withdraw to the east. El-Maazawy Introducing a new payment mechanism would also mean Arafat Mohamed Abdel Salam El-Maazawy breaking up the central bank Egyptian Society of Accountants and Auditors Fellowship system, which has processed Egyptian Taxation Association Fellowship oil exports though accounts The Arab Federation of Accountants & Auditors Membership used by buyers for decades, and The Egyptian Financial Supervisory Authority Register No. 124 which is the only source of hard From Al-Sharq Al-Awsat currency for importers.

APRIL 8 & 15, 2015 ARABTEC, EGYPT DUBAI TO LEAD TALKS ON YEAR 2015: BEST AGREES TERMS ON GLOBAL OIL STORAGE ISSUES FOR FOREIGN6 FIRST PHASE International industry leaders will come together in INVESTMENTS OF 1 M. HOMES Dubai this month to debate the increasingly critical Egypt Economic issue of global oil storage and its impacts on the Conference is approaching PROJECT Middle East oil and gas industry, as countries around and as wider attention '" is Dubai-listed Arabtec has the world reach critical capacity levels, TradeArabia currently being given to agreed terms with Egypt's News Service saud. addressing the structural Ministry of Housing for the The third edition of Tank World Expo – the world’s problems of the Egyptian first phase of a 280 billion leading industry congress for oil, gas and energy storage economy, experts are talking Egyptian pounds ($36.70 bil- Ð will take place at the Dubai World Trade Centre from about legislative challenges lion) plan to construct one April 13-14. It will bring together more than 100 solution which are faced by the invest- million homes across the providers and 80 expert speakers to an audience in excess ment climate in Egypt and country, the builder said last of 2,500 at a crucial moment for the entire oil and natural which restrict its capability to week. gas sector. lure new Arab and foreign Arabtec will sign a contract Supported by the UAE Ministry of Energy, the confer- investments, stressing the with the ministry "at the earli- ence will feature a strong line-up of speakers including Dr need for analysing 'the prob- est opportunity" for this first Matar Hamed Al Neyadi, undersecretary, UAE Ministry lems which confront the phase, according to a state- of Energy; Mohamed Daoud, manager, projects quality, Egyptian economy and limit ment to Dubai's bourse. Adco; Edwin Lammers, executive commercial manager its growth prospects, Abdel This will consist of 100,000 of the Sohar Port and Freezone; Christopher Amstutz, Rahman Moussa of MENA units to be built in Egypt's El director tanks, terminals and transportation, Emerson; wrote. Obour and Badr districts, the Hendrik Schaake, business development manager at Experts have uncovered the statement said. Endress Hauser, and many others. points of strength and weakness Arabtec agreed in principle The effects of the steep fall in oil prices have been sig- of the Egyptian economy, the a broader plan with Egypt's nificant for the oil storage industry. With traders increas- role of the banking sector and army in March 2014 to build 1 ingly seeking out storage in order to sell at a profit when foreign investors movement million homes in 13 locations Cityscape Jeddah comes at a key moment in time for the Kingdom’s real estate development sector where all eyes are on the the prices rebound, the limits of global tank capacity are towards the sectors which are across the country on land pro- continuous fluctuation of oil prices and its impact on the real estate sector. reaching critical levels. In a recent report, the given wider attention. They said vided by the armed forces, International Energy Agency reported global stock levels the Egyptian banking sector is before negotiations switched MAJOR DEVELOPERS EXHIBIT PROJECTS AT CITYSCAPE JEDDAH at an 80-year high. about to recover once more to being between the contrac- The key relationship between the price of oil and the given the packages of financing tor and the housing ministry. More than 50 of the GCC’s major real estate develop- alternative affordable residential apartments for families capacity to store it, will be a key topic on the congress’s offered by banks and the con- The two sides agreed terms ers and brokers were showcasing their projects at the looking for a community lifestyle living experience. In agenda. As the industry is looking for new solutions to sultant companies in the year in February, but the contract Jeddah Urban Development and Real Estate Investment addition, the company was showcasing its new project in storage challenges, new infrastructure investments and 2014. which Arabtec subsequently Event — Cityscape Jeddah — taking place for the sixth Riyadh. more unconventional methods such as floating storage, received included less attrac- time at the Jeddah Centre for Forums and Events from Emphasising the importance of Cityscape Jeddah, Riyadh take centre stage. tive terms for the company Sunday (April 5). Al-Thagafi, CEO of Ewaan Global Residential Company, “2015 started with mixed feelings about the reaction of than it had approved, a source The show was opened under the patronage of Prince said: “As a founding sponsor of Cityscape Jeddah, we keen- oil companies with regard to oil price development,” said familiar with the matter told Mishaal bin Majid, governor of Jeddah, Arab News said. ly look forward to this event each year as the perfect plat- Schaake of Endress Hauser. “However, many projects are Reuters last month. The three-day event, came at a critical moment for the form to showcase our projects, while giving our peers the still on-going since the price drop is not a result of a That led senior Arabtec offi- Kingdom’s real estate development sector where all eyes benefit of our extensive and in-depth experience in develop- decrease in demand. Furthermore, we see a strong cials to return to Egypt for are on the continuous fluctuation of oil prices and its impact ing residential communities that meet the requirements of increase in interest for optimisation solutions for existing fresh negotiations and they on the real estate sector. the modern Saudi families and exceed its expectations.” installations to streamline product and business informa- have now agreed terms, for the Also, recently, as part of a full reform package, a royal Sumou Holding Company, was showcasing Dhahiat tion flows, reduce losses and assure safety.” first phase at least. decree was issued by Custodian of the Two Holy Mosques Sumou project, which is the outcome of a unique vision of “In terms of storing oil on the high seas, this is an Arabtec did not provide any King Salman allocating SR20 billion for electricity and understanding the expectations and needs of the growing option that presents both benefits, as well as challenges,” details on how many phases water services. This move signals the Kingdom’s intent to population in the Western Region and Makkah in particular commented Lammers of Sohar Port and Freezone. were in the project or when it solve the challenges facing the real estate industry. The new adhering firmly not only to allocate housing units, but also “Towards the end of last year, the spot price for oil was might conclude terms on funds will be used to provide the necessary infrastructure to create a healthy and integrated lifestyle community lower than in the futures market. This is one of the rea- Minister of Investment building the remaining for government lands allocated for housing projects. emerging the most modern diversified urban designs and sons why crude oil is being stored at sea, as companies 900,000 units. Abdullah bin Mahfouz, chairman, National Exhibitions uses with international standard facilities and services. currently see a greater benefit in buying up physical oil Figures show that the real Construction on the project Company, organiser of Cityscape, said: “For the sixth year Saeed Al-Nahdi, VP, Sumou Holding Company, said: stocks and immediately selling futures. The challenge, of estate sector has witnessed had originally been due to start running we look forward to welcoming real estate develop- “We are very pleased to support Cityscape Jeddah as princi- course, is that if interest rates or storage costs increase, more attention on the part of a in the third quarter of 2014, ers from Saudi Arabia and across the region. pal sponsor for the sixth year running since the event play a the cost of storing oil out at sea would eclipse any future large number of banks which with the first homes to be Among the companies supporting the event were Sumou vital role in positioning Jeddah as one of the biggest and profits.” offered financing for SODIC delivered in early 2017. Holding Company (principal sponsor), Ewaan Global most dynamic real estate markets in the region. Now in its third year, Tank World Expo plays a crucial and SOREL real estate compa- Abu Dhabi state fund Aabar Residential Company (founding sponsor), Dubai-based Furthermore, by promoting investment Cityscape con- role in the development of the Middle East as a global nies. Moreover, banks offered owns 35 per cent of Arabtec, Sobha Hartland (gold sponsor), IQI Group (silver sponsor), tributes to making the Kingdom’s real estate development storage hub. The event provides a chance for investors $1.3 billion worth of financing according to Reuters data. Benfaqeeh Real Estate Investments from Bahrain, LS sector a key part of Saudi Arabia’s economic growth.” and industry experts from around the world to discover for the Egyptian General The Egyptian housing proj- Company, Sabban Property Investments, and Lifestyle Lifestyle Developers, participating for the second time in regional infrastructure growth plans and facilitate busi- Petroleum Corporation (EGPC) ect is seen as part of economic Developers. Cityscape Jeddah, was launching its latest development ness in the region in an ever more globalised industry. It through local and foreign banks. and political support to the Ewaan Global Residential Company is exhibiting its project, Diyar Al-Salam. In addition, the company was also provides Middle eastern Terminal operators the Moreover, banks are also country by the United Arab “hugely successful” Alfareeda residential real estate project, introducing other new, upcoming projects as well as show- opportunity to see the latest technologies from Europe, arranging a LE10 billion loan to Emirates, which has provided and its adjacent Almayaar project that is designed to offer casing a variety of completed development projects. US and Asia that can help improve the efficiency, prof- the same corporation. billions of dollars of aid to itability and safety of their facilities. As for Islamic financing in Cairo since Islamist president CONSTRUCTION SUMMIT FOCUS ON GREEN LEGAL Egypt, experts say many banks Mohamed Mursi was ousted in shy away from offering financ- 2013. TECHNOLOGY RESTRICTIONS ing conforming with Islamic SENEGAL SEEKS Participants at an upcoming construction show in Bahrain next week are to BEHIND ABSENCE OF law, adding this restricts the SAUDI IDB’S HELP press for green sustainable technologies in the industry, according to organisers. EGYPTIAN growth of Islamic banking They said investment in such technologies is the future for a rapidly growing and transactions in Egypt. TO ORGANISE developing industry worldwide and the only hope for generations to come, reported DEVELOPERS IN Reports show that London SUKUK BOND the Gulf Daily News. SAUDI ARABIA surpasses most of the world Senegalese President In a statement, Exposure Media managing director Sijo Joseph said this would help The building sector in Saudi countries in exercising Islamic Macky Sall has asked the builders and developers achieve higher levels of energy efficiency in their buildings Arabia was worth $41bn in 2014, financing as it has expertise that Saudi Arabia-based Islamic and contribute towards environmental protection. accounting for 5.4% of the king- extends to more than 15 years, Development Bank (IDB) to Organised by the company, the fourth edition of the Arabian MEP (Mechanical dom's gross domestic product referring to the announcement help the West African coun- Engineering Plumbing) Conference and Exhibition is being held at the Bahrain (GDP), according to an HSBC by the British Prime Minister in try tap the Islamic finance International Exhibition and Convention Centre from Tuesday to Wednesday under report. According to analysts, 2013 of his plans to turn market for a second time as the patronage of Works, Municipalities and Urban Planning Affairs Minister Essam however, Egyptian developers London into the first centre for it seeks to organise financing Khalaf. have close to no shares in the world Islamic financing. for infrastructure projects, It highlights Bahrain and the region's promotion of green energy technologies as booming market. Experts say working banks well as issues concerning environmental sustainability. This sets a sharp contrast from are the only ones capable of Reuters said. Saudi investments in the Egyptian The arid Sahel country “The event showcases the latest heating, ventilation, air conditioning and refriger- moving the stagnant water in ation (HVAC) technologies as well as look at advances in mechanical, electrical, construction sector. According to launched its first Islamic bond Egypt's General Authority for the Islamic financing activity. through a 100 billion CFA plumbing, insulation, refrigeration and automation products and services in the UAE STATE MIN. INSPECTS Figures show that Islamic region,” said Joseph. Investment and Free Zones, a total of franc ($166 million) sukuk 107 Saudi construction sector firms PROJECT TO ESTABLISH WHEAT financing during the past two placement in June last year. “The demand for higher energy efficiency, greener products and sustainable tech- were established in Egypt since years exceeded more than LE.3 "I hope the IDB will help us nologies has accelerated the pace at which new products and innovations are 2011. These were set up with a total SILOS IN ALEX. billion through a number of the mobilise Islamic finance, launched in the market,” he said. capital of over $578m, of which UAE State Minister Sultan al-Jaber made last week an working banks in the Egyptian notably sukuk, to implement “This has led to HVAC professionals becoming more innovative in their business- nearly $278mn were paid. inspection tour of the ongoing works to establish two market. strategic infrastructure proj- es or be left behind.” Ahmed Abdel-Hady, deputy silos for storing wheat in Amiria region, Alexandria gov- Despite objections to some ects, such as a regional express He said key industry leaders are expected to be present at the event, where they will General Manager of Vision Real ernorate. decrees of the Central Bank of train linking Dakar to the new exhibit their products and also hold live demonstrations, take part in conferences and Estate Marketing and Sales, a unit of The silos are part of a UAE project to establish 25 silos Egypt (CBE) which restrict international airport Blaise benefit from networking opportunities. Murabahat Real Estate Solutions to store wheat in 17 governorates in Egypt. expansion of lending, yet they Revolutionary 3D printing, the challenge of super-tall buildings and state-of-the-art Company, said the key reason The project is aimed at increasing the capacity of stor- Diagne," Sall told national tel- ing wheat by 1.5 million tonnes. remain as the safety valve of the evision on his return from a fire-fighting systems will also be among the more than 200 brands and services on behind the absence of Egyptian Egyptian economy in times of show, billed as promoting Bahrain and the region's use of green energy technologies developers in the Saudi market is the The project was carried out via cooperation between visit to Saudi Arabia. the ministries of investment, support and agriculture. crises as the banking sector He did not elaborate on the as well as issues concerning environmental sustainability. kingdom's restricting legislations. enjoy big capabilities, experts amount or timing of any “Seminars, workshops and open discussions during the event will focus on the lat- “Saudi laws, unlike Egypt's, bar Egypt Appreciates UAE's Role in argued. issuance but said IDB est technologies in green buildings and their implementation in the construction foreigners from owning land. This is Development Projects Speaking of the problems industry in this part of the world.” why Saudi developers can easily President Ahmed Mohammed acquire land and build away, while In the same context, Minister of Supply and Internal faced by investors, experts Ali had assured him the bank Khalid Al Mulhim from the American Society of Heating, Refrigerating and Air- Trade Khaled Hanafi appreciated the role played by the referred to the absence of the Conditioning Engineers '“ Saudi Arabian Chapter will deliver the keynote address at Egyptian developers struggle to would help Senegal fund its access the kingdom's construction UAE in backing the development process in Egypt. People's Assembly, shortage of programme. the opening ceremony, in the presence of Mr Khalaf. sector,” he said. He added, however, Accompanied by al Jaber during the inspecting of the foreign exchange in the market, Despite strong growth in the “The Works, Municipalities and Urban Planning Affairs Ministry will use the event that the only exception to this is two grain soils in question, the minister said that the the compacted system of Middle East and southeast to showcase its present and future projects as well as honour its engineers,” said Egypt's The Arab Contractors com- UAE projects provided many job opportunities for youth. obtaining licenses and fears of Asia, Islamic finance has Joseph. “A special section on the latest energy efficient electrical products will be one pany. Hanafi said that the new silo project will back the the government's incapability to lagged in Africa, home to a of the highlights of the show, which will also feature iPad draws on all three days.” The state-owned construction firm logistic grain center that would be established in fulfill its obligations in the com- quarter of the world's OMAN TO DEVELOP LIQUID BERTHS TERMINAL IN was part of at least seven construc- Damietta to secure Egypt's strategic stock of grains. ing stage. Muslims, presenting an oppor- TWO STAGES tion companies in the kingdom, CHINA WELCOMES EGYPT’S BID Experts said investors have tunity for the Islamic according to its website. TO JOIN AIIB shown wider interest in the sec- A major bulk liquid berths terminal project coming up at the Port of Duqm in With a population of 27 million tors which concern population, Corporation for the Oman will be implemented in two stages, TradeArabia News Service said. China has welcomed Egypt's bid to join the Asian Development of the Private people, and a need to build 100,000 Infrastructure Investment Bank (AIIB) one day before a such as the sectors of communi- The first stage will involve dredging and reclamation and marine/jetty structure, while housing units by 2020 to meet a Sector (ICD), the private sec- the other will be for topside facilities including tanks, reported the Oman Observer. deadline to join the bank as a founding member. cations, foodstuffs and banks tor arm of the Jeddah-based housing shortage, the Saudi market Egypt will become a founding member on April 14th, adding given the political and Earlier, Special Economic Zone Authority at Duqm (Sezad), which is overseeing the is an attractive one to any developer. IDB. development of a mega industrial and maritime hub on Oman’s Wusta coast, had envis- should all existing members approve, according to a economic stability, investors are Nigeria and Ivory Coast are Egypt's Talaat Mostafa Group has statement on the Finance Ministry's website. now focusing on all economic aged the implementation of the project as one Engineering, Procurement and Construction attempted to benefit from this mar- looking at Islamic bond place- (EPC) package, it stated. The total number of applicants awaiting approval is sectors to benefit from available ket in 2007 through establishing now 13. The bank now has 30 prospective founding ments, Khaled Al-Aboodi, Sezad is now looking for a competent EPC contractor to handle the first stage of the Thabat, a joint venture with a num- opportunities. chief executive of ICD, told project, the report added. members, since Switzerland and Britain were accepted Experts said the announce- ber of Saudi firms, with the aim of on March 28. Founding members have the right to make Reuters last month. South The scope of work in the first stage includes reclamation and dredging, as well as the building Nasamat Al-Royadh proj- ment by the government of the Africa also issued a sovereign construction of the jetty and related marine facilities, to be executed on an EPC basis, said the bank's governance and operation rules. Countries timetables of the parliamentary ect. The 3m sqm projectwas to be the joining after the deadline will simply have voting right, sukuk last year, a $500 mil- the report. During the second stage, the focus will be on the construction of topside facil- first fully integrated city in Saudi elections is very important for lion, five-year bond. ities, including the installation of product storage tanks, dry bulk facilities, pipelines, and less say in the rule-making process. investors as this reflects the Arabia, comprising of 2,031 villas The AIIB originally had 21 founders including China, Sall, who will be seek buildings, road and other infrastructure. and 2,112 apartments, along with capability of the government to India and Singapore which signed a MoU last October in observe the third phase of the reelection in polls to be held as schools and other facilities. Beijing. The bank is expected to be established by the soon as 2017, is eager to press Heading to the In 2013, however, the company end of this year. The IMF, World Bank and other leading roadmap, adding the controlling ahead with infrastructure proj- International exited the project and venture. global lenders have all welcomed collaboration with the of the security problems in ects under his $21 billion According to Seif Farag, Professor new bank to fill in Asia's infrastructure gap. Sinai will have a positive Emerging Senegal Plan (PSE), Court of Justice. of Urban Economics, differences impact on investors who are fol- which aims to double growth between the two markets reduced OIL UP MORE THAN US$1 AFTER lowing up events through the over the next decade from 4.5 chances of Egyptian developers SAUDI'S ASIA PRICE HIKE world media. Experts called for per cent last year. accessing the Saudi real estate sec- (Cont. from page 1) maintaining legislative stability It aims to attract investment tor. “While Egypt's real estate mar- Its ability to raise prices for April and May suggests its in general and in the field of in the mining, agriculture and ket depends massively on mass pro- strategy is working, although competition has kept its flag- taxes in particular, adding that duction, where developers build ship Arab Light at a discount to Oman/Dubai quotes, ana- the amendment of taxes affects transport sectors, among oth- units in bulk, Saudi largely sees indi- ers. lysts said. "There is still competition for the Asia market efforts to lure direct foreign vidual construction of houses, with even though it is also a sign that some of the production Senegal aims to issue the government providing mortgage investments. Concluding, between $500 million and $1 elsewhere is less able to compete in the market right now," experts declared that the gov- loans, and a local developer handling said Shunling Yap, a senior oil and gas analyst at BMI billion in debt on international one house at a time,” he explained, ernment bodies dealing with markets this year, starting in Research. On the supply front, the number of rigs drilling investors suffer from shortages adding that this, along with legal for oil in the United States declined by 11 last week to 802, June, which could include restrictions, limited Egyptian devel- of cadres which are qualified the smallest drop since December, a weekly survey by oil for daily dealings with the pub- issuance in the sukuk and From Al-Khaleej opers' interest. service firm Baker Hughes showed last Thursday. Eurobond markets. lic.