THE MIDDLE EAST THE MIDDLE EAST OBSERVER OBSERVER IS YOUR LUCKY CARD THE PUBLISHER: AHMED FODA CHIEF EDITOR: H.A. RAOUF FOR A SUCSSEFUL BUSINESS MIDDLE EAST COUNSELORS: YASMIN FODA AHMED SHAFIK MAHMOUD FODA Yearly Subscrption :- N.M.M. RASHED Egypt - LE 275 Dir. of Public Relations: Arab Countries US$ 375 KAMAL MOKHTAR Head Office : 41, Sherif St., Cairo, Egypt Abroad US$ 420 Tel.: 23939732 - 23926919 Head Office : 41, Sherif St., Cairo, Egypt Fax : 23939732 Tel.: 23939732 - 23926919 Mob. : 01006670340 Fax : 23939732 Emails : [email protected] Mob. : 01006670340 Website : http:www.meobserver. Emails : [email protected] net/home.html Website : http:www.meobserver. Email : [email protected] net/home.html 62nd YEAR No. 9 - 10 CAIRO, Friday, March 13 & Wed. 4, 2015 ESTABLISHED 1945 Printed at Societe Orientale de Publicite Email : [email protected] (S.O.P.) - Cairo - Egypt

EGYPT THE SHARM EL-SHEIKH ARDENTLY ANTICIPATES EGYPT’S ECONOMIC SUMMIT FUTURE… Sharm El-Sheikh City is witnessing the largest mote during the Summit. Egypt will persist in its ing fiscal discipline, which pushed a number of insti- is advancing, and Saudi investors are willing and TOGETHER WE campaign of beautifying and decoration of its hotels, development despite the insistence of certain parties tutions to raise the credit rating for Egypt. The reform determined to increase their investments in Egypt and STAND streets and squares in preparation for receiving the to cause devastation, Prime Minister Ibrahim Mahlab garnered positive results in the first quarter of will be visiting Egypt during this period. Over 1000 kings and heads of states and the Arab and said, adding that the upcoming parliamentary elec- FY2014-2015, where direct foreign investments Saudi businessmen and companies in various sectors By: Yasmine Fouda International delegations to attend Egypt Economic tions convey a strong message to the business com- (FDI) reached $1.8 billion, he said. He added that the are expected to attend the March Economic Summit, Our Middle East Analyst Summit in March 13-15, given that 90 per cent of the munities, that Egypt is on the right path, economical- launching unit responsible for licensing all the confer- director-general of the Saudi-Egyptian Businessmen When Prime Minister Ibrahim hotels have been already reserved, Abeer Roshdy of ly and in terms of security, and that it will continue to ence projects will be based within the Investment Association (SEBA) Ahmed Darwish. Mahlab first announced the MENA wrote. map its future. Ministry. Meanwhile, Minister of International Co-operation, Economic Development Several world countries and financial institutions Mahlab said that utmost efforts are currently being The Summit will present the government's econom- Naglaa AI-Ahwany confirmed that the success of the Conference, he described the have confirmed their attendance, including Saudi exerted to complete the necessary steps for the sum- ic policies, especially the legislative policy, to facili- Summit will lead to an economic boom for Egypt, as event as a catalyst forEgypt's Arabia, UAE, Kuwait, Bahrain, Morocco, Iraq, mit in co-operation with all the Arab partners. The tate the procedures of investment in order to create an it aims to improve the standard of living for economic development and an Algeria, Qatar, USA, China, Japan, Russia, Germany, government is in regular communication with the attractive investment environment Salman pointed out Egyptians. Nearly 120 countries and 3,500 investors Italy, France, Britain, S.Korea, India and Ethiopia. world, he said, in order to set right Egypt's image the recent amendments to the money markets law were invited to participate in Egypt's Economic opportunity forinternational This, in addition to high-profile delegations from the abroad to reassure that the security situation in Egypt allow a safe exit for the investor. Amendments were Summit. The Summit's taskforce will focus on har- political and business leaders, as World Bank and the European Union. is stable. also made to the law governing industrial lands' allo- nessing the natural resource wealth for inclusive well as investors and institutions, Egypt will present more than 42 investment proj- Mahlab added that the Summit will include 12 sec- cation, in addition to the local product preference law, growth and economic development. It will also pres- to participate in majordevelop- ects at local investment banks to be offered during the tions pertaining to various investment fields, such as which will attract direct foreign investments. Salman ent a group of projects by investment banks in differ- ment initiatives across a wide Economic Summit worth a total of over $20 billion. infrastructure, electricity, communications, environ- noted that investment banks will receive promoting ent sectors, in addition to partnership projects between range of sectors. The projects are to be implemented in two phases; the ment, technology, education, health, entrepreneurs commissions for the projects, which will means they private and public sectors. Strong growth will allow Mahlab was reading all of our first includes 28 projects, while 14 projects are includ- and youth investors. receive a percentage of the money they attract to the living standards to rise, institutions to develop, and minds and reiterated what we as ed in the second phase, with each investment bank On his part, Minister of Investment Ashraf Salman project. Meanwhile, Saudi Arabian Finance Minister, financial sectors to deepen, economic experts con- given the right to select the projects it plans to pro- said the economic reform in Egypt began with apply- Ibrahim AI-Assaf said the preparation for the Summit cluded. Egyptians were discussing in our offices, clinics, factories, and living rooms; thus when he said Egypt is firmly on the path to economic MSMES: TOWARDS INCLUSIVE GROWTH THROUGH THE VALUE CHAIN APPROACH recovery, implementing and com- IN THIS ISSUE: By: Dr. Arwa Morsy - Economic Expert municating a clear road map of Following four years of economic slowdown, Egypt starts a new path to structural reforms and development, business climate reforms, we all • The which can lead to economic stability and growth. A recent IMFreport indicated that things started to get rejoiced. We all understood what around in the last months. our Premiere Mahlab meant when The Government of Egypt (GOE) is currently undertaking an economic growth programme to he said that it is essential to foster Minister of raise growth, create jobs and fix the fiscal and monetary aspects. On the expenditure side of the budget, the government started to reform the system of energy subsidies. It also started to control investor confidence in Egypt and Tourism the public sector wage bill, which has also been increasing as a result of a very complicated wage pave the way to genuinely inclusive structure. On the revenue side, the authorities introduced higher tax rates for high earners, and a economic and social reform. Interview capital gains tax. These government measures have already made a big difference in curbing the Again Mahlab’s announcement for high fiscal deficit. With such reforms, economic growth rate is expected to show positive increase; upon launching the idea behind from an average of 2% during the past four years, to 3.8% in 2014/2015, and forcasted at 5% by “Egypt the Future, Economic The Middle 2015/2016. Development Conference”, reas- Current Economic and fiscal reforms are designed to focus on economic inclusion - that focus- Dr. Arwa Morsy sured us that this conference and East es on development and poverty reduction. For a number of years, Egypt has suffered from exclu- the reforms that the government is sive patterns of economic growth, lack of opportunities for a large segment of the population and high unemployment putting in place are not just for the Observer Christine Lagarde and the IMF’s planfor a LE30 billion. rate. The country's strong growth rates that were achieved prior the revolution proved to be of little value to the wider purpose of attracting investment; population. Thus, solving the structural unemployment and solving poverty were two key demands of 25th of January but aim to build a successful econ- revolution. omy and a more prosperous future • Egyptian Cabinet Unemployment in Egypt became a structural economic problem; Not only is the size of unemployment high (12.7% in 2011/2012 and 13.3% in 2012/2013), but there are also for our people. He referred to one of age, gender and education aspects to the problem. Youth (15-29 years old) have the highest rate of unemployment. Considering the gender aspect, unemployment among men our most pressing concerns; name- Approves Egypt’s reached 8.8% relative to male labour force, while unemployment among females amounted to 23% among female labour force. Considering the education aspect, 80% of the ly, upgrading the healthcare sys- unemployed are holders of intermediate level education and university degrees or above . tem, increasing access to healthcare Unified Investment Current GOE structural reform efforts promotes for creating an inclusive growth model; the model can reduce poverty by creating employment and income generating oppor- and housing as well as improving tunities for the majority of population. But, the extent to which the poor can benefit from economic growth depends on the type of their participation in the markets. Making the education services. He affirmed Law. markets work for the poor can solve constraints to economic growth. The approach has the potential even with small interventions to influence the actions of market players; including the firms and bringing sustainable economic impact at scale. ( Cont. on Page 10) that addressing all such matters will drive human development and ensure better lives for the Egyptian • JAICA Day One Day Two Day Three people.” Egypt's Premier constantly points Friday, March 13, 2015 Egypt Sustainable, long-term growth The Suez Canal is a key factor in Leading financial executives Sector-level sessions will include out that there is need for inclusive Ready To Hany Kadry Dimian, Minister of demands a balanced, diversified Egypt’s economic growth, and par- 09:00 : 11:00 an overview from Ministers, presen- 09:00 : 20:30 Business-to- Finance, Egypt economy. What are the priorities for ticularly in building its global trad- Running in parallel in breakout tation of sector opportunities by growth to support long-term eco- Offer Business Meetings Ashraf El-Araby, Minister of Egypt in diversification? ing ties. Ministers, officials and pri- room: Suez Canal Workshops local investment banks, and input nomic resilience – this has been To take place during the day at Planning and Administrative Naglaa El-Ehwany, Minister of vate sector executives involved in A detailed workshops on the from private sector participants. taken into consideration upon plan- Loan To venues near the Congress Center. Reform, Egypt International Cooperation, Egypt the megaprojects of the Suez Canal opportunities created by the Suez Session 6 “Sinai Room”: Power – ning for the Egypt Economic Hisham Ramez, Governor, Global CEOs Area Development Project present Canal Project. Knowledge Partner: McKinsey & Investment projects, prepared by Development Conference, thus it Establish local investment banks, will be pre- Central Bank of Egypt 13:45 : 14:30 Restaurant an overview of the opportunities. 09:45 : 10:30 Plenary Hall Company Economic Inclusion: The Role of sented during the day at venues near 09:00 : 20:30 Business-to- Networking Lunch Admiral Mohab Mameesh, Minister of Electricity and was emphasized that the conference SMEs and Vocational Training Energy, Egypt the Conference Center. Business Meetings 14:30 : 17:00 Workshop Rooms Chairman, Suez Canal Authority, is to feature the participation of Toshkah Barrages. What are the most promising Private sector executives 09:00 : 19:30 Registration To take place during the day at Egypt’s Sectoral Sessions: Five Egypt policies for job creation? What role Session 7 “Red Sea Room”: Egyptian youth, SMEs and entre- Open all day as participants venues near the Congress Center. run in parallel Leaders of the Suez Canal Area can small-and medium-sized enter- Retail and Internal Trade preneurs who will have the oppor- arrive. Investment projects, prepared by Sector-level sessions will include Development Project local investment banks, will be pre- an overview from Ministers, presen- 18:15 : 19:00 Plenary Hall prises play? How significant can Minister of Supply and Internal tunity to share ideas and interact 15:00 : 15:30 All Delegates and Trade, Egypt • Oman Awards Cargo sented during the day at venues near tation of sector opportunities by International Financialtraining and financing be in Invitees must be present at the Private sector executives with the conference delegates. the Conference Center. local investment banks, and input Institutions: Fostering Economic & strengthening the job market? Conference Center Mounir Fakhry Abdel Nour, Session 8 “Suez Canal Room”: We are optimistic, no matter Terminal Consultancy 15:30 : 16:00 Plenary Hall Doors 09:45 : 10:00 Plenary Hall from private sector participants. Social Development Transport & Logistics - Knowledge Egypt in Perspective Session 1 “Sinai Room”: Oil, Gas How can the major International Minister of Trade and Industry, what... the Economic Development Close Egypt Partner: Strategy & A Nobel Prize-winning scientist & Mining – Knowledge Partner: Financial Institutions improve the Conference is an opportunity, and Deal 16:00 : 18:00 Plenary Hall Global CEOs and thought leaders Minister of Transport, Egypt looks at Egypt today. Strategy & Minister of Petroleum, effectiveness of their support for Official Opening 10:30 : 11:15 Plenary Hall Private sector executives we will cling to it. We will do our 10:00 : 10:15 Plenary Hall Egypt Egypt’s economic development? Welcome and Vision Social Inclusion: Investment in Session 9 “Siwa Room”: best, forget about terrorists, and Regional Perspective Private sector executives Naglaa El-Ehwany, Minister of Abdel-Fattah El-Sisi, President, Egypt’s Future Agriculture – Knowledge Partner: their allies, put conspiracy theories • 12 Oil Projects To Be Egypt Regional leaders provide per- Session 2 “Red Sea Room”: International Cooperation, Egypt Policies for improved social World Bank Heads of State and Heads of spective on Egypt. Housing, Utilities & Development – Leaders of Internationalinclusion to confront societal Minister of Agriculture and Land behind, take a break from our wor- Delegations 10:15 : 11:00 Plenary Hall Knowledge Partner: Strategy & Financial Institutions inequalities. The role of different Reclamation, Egypt ries, and focus on Egypt the Future. Offered In Egypt’s Heads of International Financial Enhancing the Investment Minister of Housing, Utilities & 19:00 : 21:00 stakeholders for enhanced social Private sector executives Institutions Climate in Egypt Urban Development, Egypt Keynote Address inclusion Session 10 “Nile Valley Room”: Yasmine Fouda High-Growth Entrepreneurship: Economic Conference 18:00 : 18:15 Plenary Hall Leaders will exchange views on Private sector executives Ghada Wali, Minister of Social Sunday, March 15, 2015 Egyptian women and men building Conversation the critical agenda for improving the Session 3 “Suez Canal Room”: Solidarity, Egypt enterprises – Knowledge Partner: A world leader on economics investment climate in Egypt. ICT– Knowledge Partner: Booz 09:00 : 18:00 Global CEOs and thought leaders Ashraf Salman, Minister of Allen Hamilton Business-to-Business Meetings Endeavor Egypt reflects on Egypt’s role in the region. 11:15 : 11:45 Market Place Egypt’s leading entrepreneurs 18:15 : 18:30 Plenary Hall Investment, Egypt Minister of Communication and To take place during the day at Coffee Break • SR 1.45b. Accord Global CEOs Information Technology, Egypt venues near the Congress Center. present their companies in an inten- Presentation of the New 11:45 : 12:30 Plenary Hall sive session focused on the thriving 11:00 : 11:30 Market Place Private sector executives Investment projects, prepared by HERE WE ARE Administrative Capital of Egypt Technology and Innovation as a entrepreneurship ecosystem in Signed For Makkah Coffee Break Session 4 “Nile Valley Room”: local investment banks, will be pre- IN THE MIDDLE EAST Minister of Housing, Utilities & Solution to Egypt’s Most Pressing Egypt. Urban Development, Egypt 11:30 : 12:15 Plenary Hall Industry & Manufacturing – sented during the day at venues near Problems MARKETS, the Conference Center. 16:30 : 17:00 Market Place Metro Project 18:30 : 20:30 Plenary Hall Egypt’s Energy Equation Knowledge Partner: Arthur D Little Entrepreneurs and technology Coffee Break 09:00 : 09:45 Plenary Hall TO SERVE YOUR Egypt: Gateway and Hub Global executives will examine Mounir Fakhry Abdel Nour, innovators examine the opportuni- 17:30 : 18:00 Plenary Hall Financing Emerging Markets ECONOMIC REQUIREMENTS Leaders from global corporations the energy mix in Egypt and how Minister of Trade and Industry, ties for technology and innovation as Sport: Development, Cohesion Electricity Connection Egypt’s markets were among the look at where Egypt stands in their Egypt can best achieve energy secu- Egypt a key generator of dynamism in the and Opportunities world’s best performers last year. investment priorities. rity as part of its development plans. Private sector executives Egyptian economy. Egypt has a long history as nation Yearly Subscrption :- 12:15 : 12:30 Plenary Hall Session 5 “Siwa Room”: Tourism Several nascent markets like mort- Minister of Communications and for sports. How can this be used 20:30 : 21:30 Gala Dinner at gage, insurance and micro-finance Egypt - Movenpick Resort Sharm El-Sheikh Announcements – Knowledge Partner: Booz Allen Information Technology, Egypt more widely and play a role in build- LE 275 • 30 South Korean 12:30 : 13:15 Plenary Hall Hamilton show great potential. What are the Global CEOs and thought leaders ing community creating business Arab Countries powered by El Sewedy Electric key touchstones for finance in an US$ 375 The Global Investor Perspective Minister of Tourism, Egypt 12:30 : 13:00 Plenary Hall opportunities and societal cohesion? Abroad Officials, Businessmen Saturday, March 14, 2015 Heads of major investment hous- Private sector executives emerging market? What’s next in Announcements What are the business opportunities? US$ 420 09:00 : 09:45 Plenary Hall es examine the prospects for invest- 17:00 : 17:30 Market Place Egypt’s markets, and what changes 13:00 : 14:00 Restaurant Khaled Abdel Aziz, Minister of Emails : [email protected] are expected in the financial sector? Turning the Vision into Action ment in Egypt Coffee Break Networking Lunch Youth and Sport, Egypt [email protected] - [email protected] to Attend Economic Sherif Samy, Chairman, Egyptian “Charting the way forward” – 13:15 : 13:45 Plenary Hall 17:30 : 18:15 Plenary Hall 14:00 : 16:30 Workshop Rooms CEOs, thought leaders and sport- Tel. : 23926919 - 23939732 Financial Supervisory Authority, Egypt’s economic reform plan The Diversification Imperative Suez Canal Development: Egypt’s Sectoral Sessions: Five ing heroes Fax : 23939732 Summit Egypt Ibrahim Mahlab, Prime Minister, for Emerging Economies Egypt's Gift to the World run in parallel 18:00 : 19:00 Media Conference. Mob. : 01006670340 Friday, March 13 & Wed. 4, 2015

EGYPT'S CBANK KEEPS BENCHMARK EGYPT'S BLUEPRINT FOR EGYPT GASC INTEREST RATES UNCHANGED STABILITY, INVESTMENT AND NEGOTIATES LOWER Egypt's central bank kept its benchmark interest rates PRICES FOR 2TENDER unchanged on Thursday 26 Feb., as it balances the needs to GROWTH manage high inflation with encouraging economic growth, On behalf of the Egyptian people, I welcome the inter- IN EGYPTIAN the bank said in a statement. national investment community to the Egypt Economic POUNDS The bank's monetary policy committee kept the overnight Development Conference. This is an opportune time for Egypt's state grain buyer, the deposit rate at 8.75 per cent while the overnight lending rate the global financial community to come to Egypt to wit- General Authority forSupply stayed at 9.75 per cent, the bank said in a statement, Reuters Commodities (GASC), negotiated ness firsthand the changes that the country has made lowerprices with suppliers fora said over the past year to fundamentally reform the economy tender to buy wheat in Egyptian Four out of six economists polled by Reuters had forecast and unleash its productive capacity. pounds from inventories already that the bank would keep interest rates on hold, while two pre- Our government is committed to pursuing policies aimed in the country, Cairo-based dicted a rate cut. traders said, according to Reuters. In a statement, the bank's sub-governor for monetary policy at achieving high and sustainable rates of growth and creat- ing an attractive, predictable, fair and internationally compet- Offers for Russian wheat were noted that GDPgrowth had quickened and annual inflation lowered to 1,970 Egyptian pounds rates were easing, but risks remained to both measures of the itive business environment. We know that we face many ($258.22) a tonne while those for economy's health. challenges ahead on both a macro and micro level before we Ukraine wheat were at 1,940 pounds "At this juncture, the MPC judges that the key (central bank) can fully realize these objectives, but Egypt is on the right a tonne, traders said. rates are currently appropriate, given the balance of risks sur- track. This country is turning the corner on its recent unusu- Offers had previously been rounding the inflation and GDPoutlooks," Rania Al-Mashat al period of political strife and uncertainty, and a positive between 2,180 pounds and 2,050 said. momentum has already begun. As we now look ahead to ful- pounds a tonne for Russian wheat The bank surprised analysts with a 50 basis point cut last filling Egypt's potential, we invite both domestic and foreign and 2,000 pounds a tonne for month, after holding rates steady since July, when it hiked the investors to take part actively in the re-invigoration of the Ukraine wheat. benchmark rates by 100 basis points. Results for the tender, which Egyptian economy. GASC announced on Feb. 12 are While another rate cut could boost investor confidence Egypt not only boasts considerable human resources, but expected Monday. ahead of an economic summit next month and lend some also significant natural resources, a diverse economic base "We believe GASC is in need of momentum to a nascent recovery, tackling inflation remains the Custodian of the Two Holy Mosques King Salman receives Egyptian President Abdel and a geo-strategically important position straddling Asia these quantities and so they will bank's main priority, most analysts said. Fattah El-Sisi at the airport in Riyadh on Sunday. (SPA) and Africa. make a purchase," one Cairo-based Inflation slowed last month but remains high. Urban con- There are many opportunities for both domestic and for- trader said. Traders had said delivery sumer inflation fell to 9.7 per cent in January from 10.1 the pre- of the wheat would be from March vious month. KSA-EGYPT TALKS SPOTLIGHT eign investors in an array of sectors. 15 to 31. The offers made to GASC Core inflation, which excludes volatile items such as fruit We have an unparalleled tourism product that has never in the tender are as follows: ANTI-TERROR FORCE, ME CRISIS been fully tapped, even before the 2011 revolution; it will -Louis Dreyfus: 50,000 tonnes of and vegetables, declined to 7.06 per cent in January from 7.69 Saudi Arabia reiterated its support for Egypt following wide-ranging talks per cent the previous month. inevitably recover and again become an important venue for Russian wheat -Union (Al Wehda): between Custodian of the Two Holy Mosques King Salman and President investment and catalyst for growth. Light manufacturing 25,000 tonnes Russian, 15,000 EGYPT'S POUND STEADY AT OFFICIAL Abdel Fattah El-Sisi on Sunda,. 1st of March. should take off in this country given the advantages that tonnes Ukraine -White Flour: 10,000 AUCTION, UNOFFICIAL RATE King Salman and El-Sisi discussed prospects of cooperation between the two Egypt offers in terms of its relatively low costs, large labor tonnes Russian -Alex Grain: 10,000 countries besides a range of regional and international issues of common concern. pool and accessibility to markets in Europe, the GCC and tonnes Russian GASC said on Feb. 5 VIRTUALLY ELIMINATED “Abroad range of subjects came under discussion,” said Affifi Ahmed it could tap the local Egyptian wheat Egypt's central bank (CBE) kept the pound steady at 7.53 Abdelwahab, Egyptian ambassador. King Salman hosted a lunch banquet for El- Asia. Another dynamic area of opportunity is information market to buy Black Sea grain in to the dollar at a foreign exchange auction on Thursday 26 Sisi and his accompanying delegation. Affifi said that there was no “defined agen- and communications technology, which we see poised for Egyptian pounds in an attempt to Feb., while the unofficial rate currency strengthened slight- da” of the talks. “El-Sisi discussed the deteriorating situation in Yemen and the lat- take-off. The energy sector will also revive as the energy sub- prevent smuggling of wheat during ly on the black market enough to eliminte gap between the est developments in the Middle East.” sidies are overhauled, leading to renewed exploration and the local procurement season. rates in both worlds, Reuters said. The visit and the subsequent Saudi-Egyptian summit talks came ahead of the production. Other sectors include transportation, housing, The Egyptian government annual- The central bank has now kept the official exchange rate high-profile International Economic Summit to be hosted by Egypt on March 13 agriculture, and mining. The ambitious Suez Canal Regional ly fixes a local procurement price for steady for more than three weeks after letting the pound weak- to garner financial support for Egypt and to encourage businesses to invest in the Development project, the flagship of the government's Egyptian wheat that is above global en in an effort to wipe out black market trading. Egyptian economy, said the envoy. The Kingdom is a partner and sponsor of the investment recovery program, will provide many opportuni- prices in an attempt to encourage The rates at which banks are allowed to trade dollars are farmers to grow the crop. But the conference, he noted. ties for investors as it sets the stage to enlarge and cement high price has led to a smuggling determined by the results of central bank sales, giving the bank During his four-hour stay, El-Sisi touched on several other subjects with Saudi effective control over official exchange rates. Egypt's role as a global trading and logistics hub. business in which traders sell the officials, including the formation of a force to counter terror threats from Syria, In the past, companies have hesitated to do business in government foreign wheat, mostly As part of recent policies taken by the central bank to elimi- Yemen and Libya. El-Sissi’s visit is part of a flurry of diplomacy in the capital, nate the black market, the CBE widened the band around which Egypt due to antiquated and unfair legal practices. The gov- Russian, falsely labelling it which witnessed talks between King Salman and leaders of GCC states as well as ernment is determined to remove these constraints in order to Egyptian. GASC has said it would banks are allowed to trade to 10 piasters and other traders to 15 Jordan recently. try to buy the Russian wheat off the piaster. create a welcoming climate for all investors. Alongside The king and the Egyptian president also discussed the Middle East crisis in gen- reforms to stabilize Egypt's fiscal position we are making market before the local season starts. A trader on the unofficial market said the pound was chang- eral and emphasized “the depth of strategic relation between the Kingdom and LE370 EIPECO ing hands for 7.68 per dollar on Thursday 26 Feb.,, slightly Egypt,” said SPA. Several royal family members and a number of high-ranking new efforts to tackle the regulatory and bureaucratic obsta- stronger than the 7.69 quoted Wednesday. Saudi and Egyptian officials attended the talks. cles that stand in the way of private sector and foreign TARGETED EXPORTS The central bank typically holds auctions every Sunday, Prominent among them were Crown Prince Muqrin, Deputy Crown Prince investors, as well as policies to ensure a level playing field IN 2015 Monday, Wednesday and Thursday. Analysts say that the cen- Mohammed bin Naif, Defense Minister Prince Mohammed bin Salman, Riyadh for all investors where transparency and the rule of law pre- The Egyptian International tral bank may Gov. Prince Faisal bin Bandar, National Guard Minister Prince Miteb bin vail: We have introduced amendments to the competition and Pharmaceuticals Industries have decided to Abdullah, Deputy Foreign Minister Prince Abdul Aziz bin Abdullah and Finance anti-monopoly laws. We have removed legal hurdles and will Company (EIPICO) aims to surge its stabilise the cur- Minister Ibrahim Al-Assaf. El-Sisi entourage included Sameh Shoukri, foreign soon introduce a new uniform investment law that will fur- exports volume form LE320 million rency to stop it minister; Khalid Fawzi, chief of General Intelligence; and Alaa Yusuf, spokesman ther streamline the path for foreign investment. recorded in 2014 to LE370 million from depreciating of the presidency. by the end of 2015, up by 15 per too much and Our ultimate goal is to generate sustainable high growth cent, "Alborsa" business daily because it hopes EGYPT'S SAWIRIS ACQUIRES 53 PERCENT OF that is well- balanced and inclusive in order to build prosper- reported. other recent meas- ity for the Egyptian people. EURONEWS This is essential to maintain political stability, and will also Al-FUTTAIM KEEN TO ures will have an Egypt’s Naguib Sawiris has officially acquires 53 per cent of multilingual impact. help the business community. With a sensible macroeconom- EXPAND ITS news channel Euronews for35 million ($40 million), through his Cairo- ic policy framework, persistent structural reform, the full and BUSINESS IN EGYPT The govern- based company Orascom Telecom Media and Technology (OTMT). ment is trying to welcome participation of the investor community, and the OVER 5 YEARS bolster the econo- The deal has finally been sealed after 12 months of confidential meetings and hard work and persistence of the Egyptian people. Egypt's negotiations, the Orascom CEO and chairman told privately-owned satellite TV A major leader company at retail my and burnish renewed blueprint for stability, investment and growth will and shopping centers and entertain- Egypt's image channel CBC in a phone interview on Saturday. The Egyptian billionaire expressed his enthusiasm with the new deal. He said it was important to have ties no doubt be realized. ment facilities in the Middle East ahead of a major and North Africa (MENA), Al- investment con- with “objective channels” and criticised the bias of world news channels, saying a President of the Arab Republic of Egypt, Futtaim Group recently announced ference next channel fails when it represent only one view. In an earlier statement, the Euronews Abdel Fattah El Sisi its long-term investment plan in the month. The cen- chairman described Sawiris’ arrival as a "tremendous asset", as the European news Egyptian market. tral bank said it offered $40 million on Thursday and sold $38.4 channel seeks capital for its million at a cut-off price of 7.5301 pounds per dollar, the same growth plans. Euronews is A.R.E. FOREIGN TRADE MONTHLY SUMMARY (May 2014) as at the previous sale on Wednesday. It also put limits for dol- owned by 21 public television TRADE EXCHANGE BETWEEN A.R.E. AND ARAB COUNTRIES channels and three local lar deposits in banks, a policy which lead to higher dollar pro- DURING MAY 2014 (Cont. from last week) ceeds for banks. authorities, with 600 journal- Table No. 7 Value in LE 1000 ists covering worldwide news. EGYPT'S MARKET GAINED LE6.3B., OMAN OIL INKS Imoprts Exports EGX30 ROSE 1.9% Regions and May Jan./May May Jan./May PACT WITH EGYPT countries Egypt's market rebounded on Monday's session, with 2014 2013 Change 2014 2013 Change 2014 2013 Change 2014 2013 Change EGX30 Index rose 1.86 percent recording 9,456.33 points on a DEALER total turnover of LE495 million, the Egyptian Exchange data As part of its ambitious 2-Gulf showed . international market-penetra- Co-operation Council countries Meanwhile, the small and mid-cap index EGX70 and the broad- tion strategy, Oman Oil United Arab er index EGX100 inched rose by1.34 and 1.3 per cent respective- Marketing CompanyEmerates 360921 1169339 808418- 3882379 2957547 924832 748915 287513 461402 2539595 1752983 786612 ly. Local institutions recorded net purchases reached a net flow of (Omanoil) signed QuadOil as Saudi Arabia LE73.71million, while, foreign and Arab institutions were net sell- the exclusive dealer of its own Kingdom 971163 1728880 757717- 5926498 8746196 2819698- 1336937 1745390 408453- 6015538 7110029 1094491- ers recording net flows of LE32.2million and LE7.2million respec- brand of lubricants in Egypt. Bahrein 8916 67820 58904- 207031 1187867 980836- 31664 332658 1594- 135541 162578 27037- tively. EGX market capital gained 6.34 billion ( US$830.9 billion) Since the launch of the range Oman 7540 88985 81445- 104465 612704 508239- 61130 60283 847 319204 347479 28275- in 2007, Omanoil has expand- Qatar 8895 42583 33688- 94560 144734 50174- 2370351 133693 103342 818922 618548 200374 to hit LE515,02 billion compared to LE 508.68 billion on Sunday's Kuwait 2289508 2355130 65622- 9951775 9392702 559073 169237 186518 17281- 967610 884522 83088 session. ed its reach to over15 coun- Total Gulf EFG HERMES HOLDS ANNUAL MENA tries, most recently Jordan and Co-operation Tanzania, with plans to Council (GCC) 3646943 5452737 1805794- 20166708 23041750 2875042- 2584918 2446655 138263 10796410 10876139 79729- INVESTMENT CONFERENCE increase its presence in African 3-Other Arab EFG Hermes, one of the Middle East’s largest investment and Asian continents as well as countries Tunisia banks, kicked off its annual One-on-One conference in Dubai, the Gulf Cooperation Council 458954 (GCC),Omani News said. Republic 57609 32551 25058 217161 182995 34166 87709 119869 32160- 668227 209273- gathering seniormanagers from 107 companies across the Algeria People Middle East and North Africa, with 450 investors from 200 "As a result of choosing the D.R 17953 268536 250683- 129293 1886320 1757027- 376270 338041 38229 1613749 16692205 15078456- global institutions managing assets worth over US$10 trillion. right partners to be the launch Comoros Islands - - - 1838 2199 361- 71 - 71 1178 478 700 The conference is held under the patronage of the Dubai pads for our products, we have Djibouti - 902 902- 4923 45140 40217- 9006 12052 3046- 47755 66899 19144- International Financial Centre (DIFC), the group said in its state- successfully gained entry into Lebanon Republic 36508 46763 10255- 206153 351202 145049- 315563 3800269 64706- 1855630 2404019 548389- ment, labeling the three-day gathering as “the most highly antici- new markets," said Engr. Nabeel Sherefian K. of Morocco 16804 5945 164928 176258 11330- 326906 299381 27525 1448245 1334312 1139933 pated annual platform for key global equity investors, high-level Salim Al Ruwaidhi, General 22749 Manager of Commercial, Total Other executives and industry professionals.” Arabian countries 134819 365556 230737- 724296 2644114 1919818- 1115525 1149612 34087- 5425511 21166140 15740629- “This year’s One-on-One holds true to the statement of being Lubricants, Aviation, Marine and Total Arab the largest MENA-focused investment conference held regional- Business Development.countries 3952364 7105292 3152928- 21826589 29747033 7920444- 5964378 6045345 80967- 27954757 43760623 15805866- "QuadOil share our high stan- Total world ly,” said EFG Hermes Chief Executive Officer Karim Awad. “We 84636224 89158894 are exceptionally pleased with the level of turn-out from regional dards for quality and service as Countries 35933615 41583023 5649408- 180924795 200479314 19554519- 18566983 17254696 1312287 4522670- well as understand market The Relative and international institutions, government officials and MENA Importance of the companies operating in a wide spectrum of industries. We look for- requirements and the lifestyle of their customers, and we are con- Arab countries ward to the uniquely engaging one-on-one format discussions and compared to other fident that the Omanoil brand countries 11.0% 17.1% 12.1% 14.8% 32.1% 35.0% 33.0% 49.1% the investment opportunities that will arise.” will establish a strong foothold in Egypt through this partner- ship." Source : The Central Agency for Public Mobilisation and Statistics. (CAPMAS) (To Be Cont.)

EGYPT COULD RAISE UP TO $2 BLN IN EUROBOND ISSUE Egypt could raise as much as $2 billion through a Eurobond this year and expects eco- THE MIDDLE EAST OBSERVER nomic growth of close to 7 per cent in three years' time, according to Finance Minister EVERY WEDNESDAY MORNING Hany Kadry. The Arab world's most populous country is in the process of rebuilding its battered finances ECONOMIC, PUBLISHED TO COVER after the uprising that toppled Hosni Mubarak four years ago hit the country's economy, discour- THE MIDDLE EAST, ARAB GULF aging investors and tourists, and slashing growth. AND AFRICAN MARKETS "I am getting advice on between $1.5-2 billion - we will see (what) our roadshow will reveal Head Office and Advertisements : 41, Sherif Street, Cairo, Egypt and then we will decide, but I think it will be in that region," Dimian said in an interview with Tel.: 23939732 - 23926919 Fax : 23939732 - 27485844 Reuters. E-mails Address: Clarifying comments made earlier in the day in a speech to investors, he said the dollar- [email protected] - [email protected] denominated Eurobond would be launched in June at the latest, but could come earlier. [email protected] - [email protected] Dimian said he expected the issue to come in different maturities, with possible combinations Web. www.meobserver.org of 3, 5 and 7 years, but would expect them to be less than 10 years. CCR.: 113389. Egypt has mostly relied on local money markets to finance its budget deficit since being effec- Printed at Societe Orientale de Publicite (S.O.P.) Cairo - Egypt tively frozen out of international markets after the uprising that toppled Mubarak in 2011. The Publisher : AHMED FODA Talking about growth prospects, Dimian confirmed he expected growth of at least 4 per cent Chief Editor : H.A. RAOUF in the fiscal year ending in June, and predicted a return to higher growth in the medium term. Economic Counsellors : YASMIN FODA "In three years' time we will be north of 6.5 per cent, approaching 7 per cent," he said, citing manufacturing, energy, construction, telecommunications and housing as drivers. MAHMOUD FODA The IMF has projected growth to reach 3.8 per cent in 2014/15 and to rise to 5 per cent over N.M.M. RASHED the medium term. Economists questioned for a Reuters poll last month saw growth at 3.5 per cent Dir. of Public Relations : KAMAL MOKHTAR this fiscal year. Annual Subscriptions ; Speaking of the value added sales tax (VAT) the country plans to introduce, Dimian said it would not be lower than 10 per cent, though declined to give further details. Egypt : LE275 - Aborad : $420 - £295 Website : http:www.meobserver.net/home.html "We are still in the early phases," he said. "Currently the general rate is 10 per cent, and we are Email : [email protected] From Saudi Gazette not going below this." In an interview last year, Dimian had pledged to impose the VAT before the end of the fiscal year. Friday, March 13 & Wed. 4, 2015

ACWA GETS SENAAT TO INVEST $1.36BN ON CEMENT SALES $344M LOAN FOR INDUSTRIAL PROJECTS SURGE 3.8% TO Senaat, one of the UAE’s largest industrial hold- 3 DUBAI SOLAR SR13.5BN IN 2014 PROJECT ing companies, is planning to invest Dh5 billion Sales of the listed cement ($1.36 billion) on further expanding its portfolio of firms grew by 3.8 per cent to hit Saudi Arabia's Acwa industrial projects over the next two years. Power is obtaining a loan of SR13.5 billion in 2014 com- Over the past five years, Senaat invested over Dh16 pared to SR13 billion in 2013, about $344 million from billion developing the metals sector, the company said, three banks to finance a according to a financial report. according to TradeArabia News Service. Likewise, net profits of the solarenergy project in The announcement on the new plans was made by Dubai, chief executive cement sector rose by 6.10 per Husain Jasim Al Nowais, Senaat’s chairman, when he cent in the year to SR6.2 billion Paddy Padmanathan said spoke at the Global Financial Markets Forum, a high- according to Reuters. compared to SR5.83 billion in the profile annual conference organised by the National previous year, a report published The 27-year amortising Bank of Abu Dhabi (NBAD). loan with an interest rate of 4 by Al-Hayat daily said. Al Nowais shared his views on the country’s diversi- Capitals of the 14 listed cement per cent is being provided by fication efforts and where he sees UAE industry head- Abu Dhabi's First Gulf Bank companies stand at SR18.4 bil- ing in light of recent market developments at the con- lion with their market capitalisa- and two Saudi banks, ference attended by 1,300 delegates. National Commercial Bank tion worth SR82.3 billion, or 4.6 Al Nowais said: “Lately we’ve found ourselves per cent of the value of Saudi and Samba Financial Group, relentlessly pursuing one common goal: diversification. he told reporters on the side- stock market, the report said. While we owe much of the early stages of our incredi- Yamamah Cement Company lines of a business confer- ble success to oil, our coming together through an event ence. (YCC) is considered the biggest such as GFMF is a testament to how far we’ve come in the terms of capital, which Padmanathan said the since then. It is in fact partnerships such as these, that entire project would cost stands at SR2.02 billion, followed allow us to come out to the world and demonstrate that by Madinah Cement Company about $400 million, of which we are in fact so much more than just oil-producing the bank financing would (MCC) at SR1.89 billion, the nations and that our strength lies in the diversity of our Northerly Border Cement account for 86 per cent. "We crafts and our co-operation. I congratulate NBAD on are working towards signing Company (NBCC) at SR1.8 bil- having created such a world-class event that is now lion while Um Al-Qura Cement by end-March," he said. symbolic of Abu Dhabi.” The solar plant, to be built Prince Khaled Al-Faisal, Emir of Makkah region and adviser to Custodian of the Two Holy Mosques, supervised the sign- Company (UQCC) was the least ing of an agreement for the connection of electricity service for the Makkah Metro Project. The SR1.45 billion agreement was He added: “At Senaat, our commitment to the indus- at SR550 million, the report said. by a consortium of Acwa and trial sector is solid. Our industrial journey has clearly Spain's TSK, was ordered by signed at the governorate in Makkah on Sunday in the presence of Makkah Mayor Dr. Osama Al-Bar and CEO of Saudi Meanwhile, the National Electricity Company Ziyad Al-Sheeha. - SPA been paved by successes, and sound collaboration with Committee for Cement Dubai Electricity and Water the financial community. But how do we take what is Authority and will have a Companies (NCCC) said the vol- exceptional today and make it the best choice of tomor- ume of demand on cement is capacity of 200 MW. PRINCE TURKI HIGHLIGHTS JEF'S SUCCESS row? I believe we need further support from the finan- Acwa is preparing bids for Prince Turki bin Mohammed bin Nasser, director of international relations at the Ministry of Commerce poised to grow by 4 per cent to cial community. reach SR59.5 million tonnes in projects worth $7 billion in and Industry, has highlighted the success of the Feb. 25-26 Jazan Economic Forum, Arab News said. "The industrial sector would welcome banks explor- areas from South Asia to the the current year compared to 57.2 “The JEF has achieved its set objectives and was instrumental in promoting Jazan as an attractive investment hub ing ways, including the creation of a domestic bond million tonnes in 2014, the report Middle East and North Africa in the Kingdom,” he said while commending Saudi Aramco for the excellent organisation of the event. market, to provide longer-term funding that better and South Africa, said. He said the forum discussed a number of important topics and research papers that emphasised the region’s invest- matches the average life of assets on the balance sheet Earlier, cement companies Padmanathan said. "It is a ment potential. of industrial players. We, as the industrialists, would very, very buoyant sector." have called for opening doors to “Jazan Gov. Prince Mohammed has called upon Saudi businessmen and businesswomen to make use of the like to see local banks establish even deeper relation- export surplus products which, The company's 2014region’s opportunities,” he added. ships with major Export Credit Agencies and be able to results are due to be compiled they say, will have positive Abdul Rahman Al-Zamil, president of the Council of Saudi Chambers, also stressed the significance of JEF in the act as an intermediary in such deals. We also need to impact on all companies. They in April and it expects to develop the commodities market, specifically iron ore, achieve 15-20 per cent profit backdrop of Jazan’s speedy development over the past few years, offering attractive investment opportunities. claimed that export ban had led to Al-Zamil said Saudi businessmen and businesswomen should meet in the Kingdom’s various cities and regions to copper and grain, as it will help with commodity hedg- impede production lines and curb growth, Padmanathan added. ing." Acwa is awaiting regulato- explore investment opportunities and establish huge projects in association with foreign partners. other economic activities related “Jazan is expected to achieve tremendous progress following the establishment of Jazan Economic City and Jazan GFMF, which started, will discuss major challenges to the export operations in a man- ry approval for an initial pub- and opportunities in today’s world economy from the lic offer of its shares; the size Refinery,” he said. ner that accumulated the cement perspectives of regulators, asset managers, sovereign surpluses of companies to more of the IPO has not been Ibrahim bin Abdullah Al-Olyan, an industrialist in the Eastern Province, also spoke highly about the Jazan forum, wealth funds, bankers and politicians. finalised, he said. Asked adding that the tapping new investment opportunities in the region with government support would bring about qual- than 22 million tonnes, the report Senaat, which translates as “Industries”, manages said. about the company's value, he itative development in the region. more than $6.9 billion of industrial assets and employs said: "We control about $25 “The growing development activities in Jazan such as the economic city and refinery would help attract more more than 15,000 people. Senaat has invested over $4.7 GALFAR WINS OMAN billion-plus of assets - that is, domestic and foreign investment to the region,” Al-Olyan said while praising the forum’s success. billion in the non-oil sector since 2004 and its leader- BP POWER CON- we are invested in." ship is made up mainly of Emirates nationals. TRACT MOTT IRAN APPROVES $5.5B. TO FUND DEVELOPMENT PROJECTS Senaat's subsidiaries include: Emirates Steel; Oman-based Galfar MACDONALD, Iran has approved a bill to issue 150 trillion rials ($5.5 billion) to fund national development projects, according National Petroleum Construction Company (NPCC); Engineering and Contracting to a report. Arkan Arkan; Ducab; Agthia; Al Foah; and Taweelah said it has been awarded a KHUDAIRI TO Aluminium Extrusion Company (Talex). The fund will be used to implement oil and gas projects as well as complete semi-finished development plans, said the $10.05-million construction DELIVER KEY Tehran Times report. EGYPT, SUDAN AND ETHIOPIA TO contract by BPExploration IRAQI PROJECTS The projects include development of joint oil and gas fields, the expansion of public transportation fleet, the establish- BUILD HYDROELECTRIC DAM ON (Epsilon) for the installation of Mott MacDonald, a global ment of water and wastewater treatment facilities as well as power plants, and the construction of sport complexes. a 26-km overhead line in the management, engineering “We will allocate the lion’s share of the national development budget to completing the projects which are done by over NILE sultanate. and development consultan- Foreign ministers of Egypt, Sudan and Ethiopia have 80 per cent,” Mohammad-Baqer Nobakht, Iranian Government spokesman, was quoted as saying. signed a declaration of principles on a multi-billion- The scope of work at Oman cy, has joined hands with Khazzan 132-kV project includes leading Iraqi group Khudairi dollar hydroelectric Ethiopian dam on the Nile. Sudanese Foreign Minister Ali Karti recently said, the the installation and commission- to deliver oil and gas projects consensus had been reached on a joint declaration of prin- ing of a 26-km overhead line on in the country, TradeArabia OMAN AWARDS CARGO TERMINAL CONSULTANCY DEAL ciples to cooperate and benefit from the eastern Nile basin concrete poles/steel towers from News Service said. The move and the Renaissance dam, according to a report in the Petroleum Development Oman combines the consultancy’s full Oman-based Simon Engineering & Partners has been awarded a RO2.89 million ($7.48 million) consultancy con- Turkish Weekly. (PDO) Musallam 132-kV substa- range of engineering and pro- tract for the redevelopment of the Salalah Port’s existing general cargo terminal (GCT), said a report. Karti said that the preliminary agreement would be sub- tion to the proposed BP Khazzan curement technical support With construction underway on a new GCT, the old terminal is proposed to be redeveloped to attract investment in new mitted to each of the three countries' presidents for review, 132-kVswitchyard,” said the services with Khudairi Group’s green-field investments that will capitalise on Salalah’s strategic location overlooking the Indian Ocean, reported the Oman without offering any details regarding the agreement, it procurement, inspection, expe- Omani firm in its filing to the Observer. added. Muscat Securities Market diting and construction man- For his part, Egyptian Foreign Minister Sameh Shoukry agement services. Simon Engineering & Partners is a group company of Omani multidisciplinary engineering services firm HMR (MSM). Environmental Engineering Consultants. said that the agreement would "pave the way for further The scope also includes the Mott MacDonald offers a cooperation on the political and technical aspects" of the full range of engineering serv- As per the contract, the company will provide design services to redevelop the existing terminal for meeting the future dam project. construction and commissioning ices from concept to commis- operational demands from import and export business at the port. "The deal addresses the concerns of the downstream of the 132-kVswitchyard and sioning, including feasibility Once redesigned, rehabilitated and modernised, the old terminal is expected to open up opportunities for investment in states Egypt and Sudan," he added. control building at Khazzan field. and advisory. an array of new ventures at the transshipment and logistics hub, including tank storage facilities, oil jetty, limestone stock- Egyptian Irrigation Minister Hossam Moghazi had said “We expect reasonable income The consultancy was heavily yard, and even dedicated berths for coal and iron ore, stated the report. that the consultancy firm which would be tasked with from this project,” the company involved in rebuilding Iraq’s Around $143 million is being invested in the development of the terminal designed to cater to surging limestone, gyp- assessing the likely impact of Ethiopia's Renaissance dam added. infrastructure and successfully project, which Egypt and Sudan fear would reduce their 6 NEW MUSEUM delivered 1,000 projects in six sum, cement, grain and other general cargo volumes being handled at Salalah Port, it added. respective shares of the Nile water, would be announced years, said a senior official. $20B. VENTURES IN SUEZ CANAL DOUBLES THE TARGETED within four days in Addis Ababa. PROJECTS PLANNED This included restoration of Moghazi also said that the tripartite committee on the IN BAHRAIN essential services such as water INVESTMENTS OF EEDC dam – made up of Ethiopia, Egypt and Sudan - would sign Six new museums are among and power supplies. In a bid aimed at revitalising the Suez Canal productivity, doubling capacity, cutting transit times, increasing revenues as the contract with the selected firm following an economic major projects planned by the In the oil and gas sector, well as supporting the economy, the Suez Canal Authority (SCA) pledged to offer 15 investment projects hiked to $20 bil- summit in Egypt's Sharm al-Sheikh resort town slated for Mott MacDonald was owners’ March 13 to 15. Bahrain Authority for Culture and engineer for the conversion of lion in investments before the Egypt Economic Development Conference (EEDC). Four consultancy firms from France, Australia and Antiquities, its president Shaikha Arbeel Power Plant from sim- EGYPT FOREIGN DEBT DOWN 2.6% IN SEPT. 2014 Holland had earlier been shortlisted and invited to submit Mai bint Mohammed Al Khalifa ple to combined cycle. The Egypt's foreign debts decreased by $0.2 billion or 2.6% to $44.9 billion in September 2014, compared to $46.1 billion in their proposals. has said, according to consultancy also supported June 2014, the Central Bank of Egypt said. Egypt and Ethiopia have been locked in talks over the TradeArabia News Service.. increased production from the potential ramifications of Ethiopia's project to construct These include a modern arts Rumaillah oilfield - the second The decline of the exchange rate of the majority of currencies against the US dollar contributed to the drop in the nation's the multi-billion Grand Ethiopian Renaissance Dam museum, the Al Muharraqi muse- biggest field in the world. foreign debt, the CBE said in a report Monday. (GERD) on the Nile's upper reaches. um and a children's museum, said On the Khudairi partnership, INDIA TAKES PART IN EEDC WITH 43-MEMBER DELEGATION Egypt fears the dam will negatively affect its traditional a report in the Gulf Daily News Albert Allan, the managing In a related context, India will take part in EEDC with a high profile delegation led by India's Ambassador here Navdeep share of water from the Nile, its only source of water. (GDN), our sister publication. director of Mott MacDonald’s Ethiopia, for its part, says the project is indispensable to Three more museums are being Suri, involving 43 members representing 25 Indian companies. its own national development and the economic welfare of oil and gas business, said: "The The delegation includes companies operating in various fields in Egypt; namely; Egyptian Indian Polyester Company planned for Saar, Barbar and initiative combines the its burgeoning population. A'ali.The authority also plans to strengths of both companies to (EIPET), Ranbaxy Egypt Limited for Pharmaceticuls, TCI Sanmar and Essel Propack Egypt. Indian Prime Minister Narendra Modi sent a message to El Sisi on February 7 greeting him on Egypt's hosting of the con- HIGH-LEVEL GREEK DELEGATION build an oasis alongside the Bab offer our clients wide-ranging Al Bahrain in Manama, a Green engineering, procurement, con- ference and reiterating his commitment to boosting relations between India and Egypt in all domains. TO ATTEND EEDC In the same context, Greece will take part in the Building which will serve as the struction (EPC) services in this authority's headquarters and fast growing market." HIGH-PROFILE DELEGATION OF S. KOREA TAKES PART IN EEDC EEDC. Khudairi is a leading In the same context, Minister of Industry and Trade Mounir Fakhry Abdel Nour said that a 3D-member delegation of gov- A high-level delegation, led by Greek Economy and revamp the Khamis Mosque and provider of solutions to the oil ernment officials and businessmen from South Korea will take part in the EEDC. Tourism Minister Giorgos Stathakis, will attend the the Al Hidaya Al Khalifiya and gas and construction indus- This came following the minister’s meeting with South Korean Ambassador in Cairo Chung Kwang-kyun. conference along with a host of Greek companies oper- School. tries in Iraq. ating in Egypt. ICD TO DEVELOP The volume of trade exchange between Egypt and ARMY EYES KEY ROLE IN EGYPT Greece increased during the first half of 2014 to hit $1BN OFFICE about LE3 billion, with an increase of 79%, compared PROJECT IN DUBAI INFRASTRUCTURE PROJECTS to the same period in 2013, according to recent reports Investment Corporation of Egypt's military could help build an industrial hub around prepared by the Statistical Service of Greece. Dubai (ICD), the state's sovereign a new Suez Canal, the project's manager said, the first sug- Egyptian exports to Greece registered a growth of wealth fund, has partnered with gestion that the armed forces may play an important role in 57.2 % from January to November 2014, compared to Canadian property manager the huge investment venture planned alongside the new the same period in 2013, according to the reports. Brookfield to build a $1 billion waterway, Reuters said. EGYPTIAN CAPITAL BRACE FOR development in the heart of the The army began in August digging the new $8 billion canal that emirate’s financial district, said a President Abdel Fattah al-Sisi, the former military chief, wants COMPETITION ON INDUSTRIAL report. completed within a year. PROJECTS The development, ICD The chairman of the Suez Canal Authority, retired admiral A number of businessmen said they would compete Brookfield Place, will come up next Mohab Memish, told Reuters the army should also help develop on economic projects which would be offered at the to the cluster of Dubai International the planned industrial and logistics hub. Economic Conference which will be held in Sharm EI Financial Centre (DIFC) buildings. "I hope there will be a role for the army in infrastructure and Sheikh. They said the majority of the projects which are It will comprise a 50-storey office securing the project because this struggle needs the armed forces' expected to be a source of competition focus on chem- tower, hotel and retail outlets, experience," Memish said in an interview. ical, fertilizer, paper, textile and leather industries . reported the Financial Times. The military has experience building infrastructure and could CABINET APPROVES EGYPT’S ICD Brookfield Place is a vote of also play an important security role at the industrial project, he confidence from the government in said. Egypt faces an Islamist militant insurgency. UNIFIED INVESTMENT LAW continued growth in its financial "The investor needs to feel security. I am sure that by building EEDC OFFERS 60 PROJECTS centre amid increasing competition roads and power stations the armed forces can carry out these from neighbouring hubs, including projects seriously and with speed and excellent experience," he WORTH LE35B. TO INVESTORS The Cabinet under Prime Minister Ibrahim Mahlab a new free zone in the richer emi- stated. The army are the best people that carry out roads and rate of Abu Dhabi, said the FT power and water works," Memish said. early in the week approved the long-awaited unified investment law bill, part of a package of reforms the report. Private investors may be concerned however at more military The first tenants are expected in involvement in the economy where critics say it already operates government is adopting prior to Egypt Economic Development Conference (EEOC) in Sharm EISheikh, 2018, the report added. like a state within a state. Some estimates put the value of army's Quality office space in prime financial empire at as much as 40 per cent of the economy. Sisi March 13-15. It will be passed to President Abdel- Fattah El Sisi for final approval on March 11. The bill locations such as the DIFC contin- told Reuters last year it was no more than two per cent. includes amendments over micro industries, mining and ues to attract strong demand, espe- The Suez project, more than just an economic gamble, is a local products priority legislation. It also envisages acti- cially from multinationals, though a potent symbol of Egyptian nationalism. vating the 'one-stop shop' investment window to unify glut of less desirable offices further The nationalisation of the Suez Canal by then president Gamal the licence authority as well as setting up a mechanism out weighs on the broader sector, Abdel Nasser in 1956 sparked the Suez crisis in which Egypt pre- From Arab News to settle disputes quickly and successfully. where occupancy is about two- vailed against fading colonial powers Britain and France. thirds, it stated. Friday, March 13 & Wed. 4, 2015

Business Opportunities 4 (Tenders Prepared by Our Staff) A.R.E Texts, Laws and Regulations - Ministry of water Client : General Authoprity *** *** Al-Wakaye Al-Mesreya / Government Bulletin - Issue No. 275 resources and irrigation for Agricultural Reform - TENDERS DUE FOR - 6 Drillers 80 - 100 H Dated 6 December 2014 Mechanical and Electrical Beheira Dept. OMAN'S SINGLE Booklet : LE 2000 Ministry of Tourism Decree No. 979 of the Year 2014 department studies and *** Bid Bond : LE 80 000 Issued on 19/11/2014 specifications department - UpperEgypt Electricity LARGEST POWER - Supply of 2 Drillers 50 - Minister of Tourism, After Preamble DECREES THE FOLLOWING: Tafteesh el-Ray Street Production CompanyPROJECT 60 H. Article -1 Shoubra el-Mazallat Cairo (UEEPC), A Wholly Owned Oman is expected to float Due date : 15.3.2015 The text of article-11 of ministerial decree no. 222 of the year 2012 concerning the tourist restaurants Invitation forbidsSubsidiary Of Thetenders in February forits Booklet : LE 1000 and shops, as replaced with the minister of tourism's decree no. 825 of the year 2013, shall be substitut- Financed by kfw loan no. Egyptian Electricitysingle largest powergenera- Bid Bond : LE 16 000 ed by the following text: "The department concerned with issuing licenses may, after referring the matter to the Minister of 200165 902 Holding Company (EEHC) tion project, which could Client : Gen. Authority for Tourism, give an initial approval of the project or license the temporary operation of any of the establish- Med announces postpone Is Inviting Scaled Bids reach a capacity of 3,200 Agricultural Reformments mentioned in this decree and any floating or regular restaurants, in case the establishment has ful- the due data for rehabilita- From The International MW, a report said. Directorate of Al-Beheira. filled some but not all of the relevant conditions and providing that the fulfilled conditions shall include the following: tion of the following pump- Bank ForReconstruction “Two sites, one in Ibri and *** Having the engineering drawings of the project approved by the competent department, based on the ing station to be as follows And Development (IBRD) anotherin Sohar, within the -Int. Tenderfortype of establishment. at 12 noon Cairo time : kos- Eligible Bidders To Submit Main Interconnected System Construction of a modern Having the requirements of protection against fire hazards approved by the general department for civil protection. tol on 17/3/2015, old el Bids ForThe Power (MIS) region have been Automated SlaughterSubmitting the handover report related to the anchorage required for operation and obtaining the khiam on 24/3/2015, korta Transformers Package. finalised for this major proj- houses according toapproval of the Supreme Committee for Protection of the River Nile as regards the floating establish- on 263.2015. The scope of work ect. The project will spread Islamic tradition with 2 ments. In case of initial approval or licensing the temporary operation, the applicant shall be notified of the *** includes, but is not limited overtwo sites but only one Separate Lines (One 20 other conditions that must be fulfilled, and shall be given a grace period not exceeding one year to fulfill - Egyptian Airports to design, fabrication, tenderwill be floated for cattle per hour - The other same. The aforesaid grace period may be renewed in case the applicant demonstrates seriousness in ful- Company delivery and providing both,” Ahmed Al Jahdhami, 50 sheep perHour) in filling some of the remaining conditions". Article-2 announces raising a gener- onsite technical supervision the CEO of Oman Power and addition to 2 manual Article (11-Bis) of Ministerial Decree No. 222 of the year 2012, as added by Ministerial Decree No. al public bidding no. (12 - during erection and start Water Procurement Slautering Lines (turnkey 212 of the year 2013, shall be cancelled. 2014 - 2015) forgranting up for the following: Company (OPWP), wasbasis). Article-3 This decree shall be published in Al-Wakaye Al-Mesreya/ Government Bulletin, and shall come into concessions forcatering • Three (3) Main Power quoted as saying in the Due date : 25.3.2015 force as of the day following its date of publication. The entities concerned shall implement this decree. food and Beverage service Transformers (bank of Muscat Daily report. Booklet : LE 5000 Minister of Tourism Hesham Zaazou in Luxorinternational three single phase trans- “The aggregate power gener- Bid Bond : LE 200 000 ••• Airport and no. (13 - 2014 - formers and one spare sin- ation capacity of these two Client : Gharbia Al-Wakaye Al-Mesreya / Government Bulletin - Issue No. 280 2015) forgranting conces- gle phase transformer (300 combined facilities is currently Government - Tanta. Dated 11 December 2014 sions for catering food and MVA / p h a s e ) . under review and could go up *** Ministry Of Tourism Decree No. 1002 of the Year 2014 Beverage service in Borg • Three (3) Unit Auxiliary to 3,200 MW,” he said. - Implementation and Issued on 24/11/2014 Al-Arab International transformers (54MVA). The process of pre-qualifying Operation of Five High Minister of Tourism, Airport. • One (1) Station service bidders for the project, which Quality Bus Lines in 6th of Having reviewed ; Due date : 22.3.2015 transformer (54MVA). was launched in 2014, is October and Sheikh Zayed Decrees of the Minister of Tourism Nos. 380, 381 and 582 of the year 2014 regarding the obligations of the tourist companies owning tourist buses to fulfill the license conditions related to the GPS trackers, Booklet : US$ 2000 each • Three (3) Generator cir- expected to conclude soon, he Cities speedometers and security cameras as well as the specifications of same; Bid Bond : US$ 10 000 the cuit breakers and acces- added. Due date : 31.3.2015 ...... _, First US$ 3900 the second sories (22.5KV . 23 KA) The contract is expected to be Booklet : LE 5000 DECREES THE FOLLOWING: Article-1 Client : Egyptian Holding • Three (3) Set of isolated awarded in October, according Bid Bond : LE 200 000. The The tourist companies shall fit the GPS trackers installed in the tourist buses with the driver identifica- Company for Airports and phase buses including to Jahdhami. winning bidder shalltion feature, sound card and microphone, considering the foregoing to be among the necessary specifica- Air Navigation Egyptian accessories (22.5 KV) “Ibri will have an early increase this amount to tions of the tourist vehicle GPS trackers required to be installed in the tourist buses to license them for tourist purposes. Airports Company General The tenderdocument power requirement, by 2018, LE 2 000 000 a Article-2 administration of procure- will be available at with commercial operations at Performance Bond. The tourist companies shall be granted a three-month grace period to apply the provision of article-l of ment and Financial contracts. UEEPC's office onboth sites planned to com- Client : New Urban this decree starting from the date of publication hereof. Article-3 *** February 5th, 2015. mence in 2019. The project will Communities Authority. The stipulations of Articles Nos. (2, 4 and 5) of the Minister of Tourism's Decree No. 381 of the year - Supply and Erection of Tenderers may receive the add to the MIS capacity and *** 2014 shall apply to the companies which have not enforced the provision of article-l of this decree. Cooling Towers for Cooling tenderdocument by sub- enable us to meet demand until Article-4 ARAB TENDERS The present decree shall be published in Al-Wakaye Al-Mesreya / Government Bulletin, shall apply as station RP1 - RP2 (First mitting a written applica- 2021,” he added. of the day following its date of publication, and shall be enforced by the entities concerned. Line) tion in one original and Regarding the SalalahSAUDI ARABIA Minister of Tourism Hisham Zaazou Due date : 18.3.2015 two copies to the address Independent Power Project - Supply of : ••• Booklet : LE 3000 below and upon payment (IPP), Jahdhami said that 1618075R1 Pressure Al-Wakaye Al-Mesreya/Government Bulletin - Issue No.4 Bid Bond : LE 450 000 of non-refundable fee 1000 OPWP expects to conclude the Regulator Dated 6 January 2015 Client : Egyptian Co. for USD against payment tender evaluations soon and Booklet : SR 197 Ministry Of Tourism Decree No. 1281 Of The Year 2014 Issued on Metro Management - Cairo. receipt from National sign an agreement in March. 1641393 Pipe Spools 21/1212014 *** Bank of Egypt (Dokki *** Booklet : SR 327 Minister of Tourism, - Supply of 6 Drillers 80 - Branch) Egypt. - Int’l TenderNo. 1007 1641753 Flame Arrestor Having reviewed ...... 100 H. (Accout no. forpurshasing 15 units Booklet : SR 197 Decree of the Minister of Tourism No. 381 of the year 2014 on obliging the tourist companies to install Booklet : LE 2000 1600001111005006739). of Articulated Tram 1643013 Drain Sumpsecurity cameras in the tourist buses belonging thereto; Bid Bond : LE 80 000 Due Date : 15.4.2015 Cars. Pump Packages ...... - Supply of 2 Drillers 50 - 60 Bid Bond : US$ 750 000 Due date : 17.5.2015 DECREED THE FOLLOWING: H. Client : Upper Egypt Booklet : LE 2000 Booklet : SR 458 (Article One) Client : Saudi Arabian Application of the provisions of decree of the Minister of Tourism No. 381 of the year 2014 on oblig- Booklet : LE 1000 Electricity ProductionBid Bond : 400 000 Euro ing the tourist companies owning tourist buses to install security cameras in their buses shall be postponed Bid Bond : LE 16 000 Company (UEEPC) Giza, Client : Alex. Passenger Chevron Inc. / Kuwait Gulf for one year as of the date of issuing the present decree. Oil Co. (K.S.C) (Article Two) Due date : 15.3.2015 Egypt Transport Authority. The Egyptian Travel Agents Association shall notify all the tourist companies to finish the installation *** of the security cameras prescribed by , decree no. 381 of the year 2014 during the period of postponement of application stipulated in article one hereof. (Article Three) The present Decree shall be published in Al-Wakaye Al-Mesreya / Government Bulletin, shall apply as Economic & Social Indicators Bulletin of the Arab Republic of Egypt of its date of issue, and shall be enforced by the entities concerned. Minister of Tourism Hisham Zaazou ••• Al-Wakaye Al-Mesreya/Government Bulletin - Issue No. 10 Dated the 14 January 2015 The Egyptian Financial Supervisory Authority Resolution of the Board of Directors of the Authority No. 171 of the Year 2014 Dated 21/12/2014 Concerning the Service Charges for the Entities operating in the Activity of Microfinance The Board of Directors of the Egyptian Financial Supervisory Authority After perusal of Law No. 10 of the year 2009 organising the Control on the Non-Banking Financial Markets and Instruments; Law No. 141 of the Year 2014 Organising the Activity of Microfinance; Decree of the President of the Republic No. 192 of the year 2009 issuing the articles of association of the Egyptian Financial Supervisory Authority; Resolution of the board of directors of the Authority No. 158 of the year 2014 concerning the fields and values of micro finance; and The approval of the board of directors of the Authority in its session No. (22) held on 2/12/2014. DECREED THE FOLLOWING: (Article One) The Authority shall take service charges. from the companies licensed thereby to practice the activ- ity of microfinance in accordance with the , provisions of Law No. 141 of the year 2014 as follows: 1. Charge in return for the service of examining the temporary license application at the amount of 10 thousand Egyptian Pounds. 2. Charge in return for the supervision and control costs at the rate of half per thousand (500 Egyptian Pounds per million) of the average balance of finance provided to the clients of the company which shall be calculated and paid quarterly. The companies shall pay the charges in return for the supervision and control costs within a period not exceeding six weeks from the end of every quarter. (Article Two) 1. Charge in return for the service of examining the temporary license application at the amount of 500 Egyptian pounds. 2. Charge in return for the supervision and control costs at the rate of quarter per thousand (250 Egyptian Pounds per mil1ion) of the average balance of finance provided to the clients of the non-gov- ernmental association or institution which shall be calculated and paid quarterly. The non-governmental associations and institutions shall pay the charges in return for the supervision and control costs within a period not exceeding six weeks from the end of every quarter. (Article Three) This resolution shall be published in Al-Wakaye Al-Mesreya/ Government Bulletin and the electronic website of the Authority and shall come into force as of the day following the date of its issue. Chairman of the Board of Directors Sherif Samy

Banque Du Caire FOREIGN EXCHANGE RATES IN EGP POUNDS Treasury Department DATED MARCH 9, 2015 CURRENCY BUY SELL US Dollar 7.630000 7.630100 Euro 8.231900 8.298600 Pound Sterling 11.430700 11.497400 Canadian Dollar 6.023900 6.054700 Danish Krone 1.095000 1.113600 Norwegian Krone 0.950900 0.967500 Swedish Krone 0.887500 0.902200 Swiss Franc 7.705400 7.754800 Japanese Yen (100) 6.279100 6.321700 Australian Dollar 5.844500 5.892000 Kuwaiti Dinar 25.450100 25.557000 Saudi Arabian Rial 2.025800 2.034700 UAE Dirham 2.069200 2.074900 Bahraini Dinar 20.184600 20.238900 Omani Rial 19.558700 19.819900 Qatar Rial 2.086700 2.095300 Jordanian Dinar 10.625200 10.769300 The Egyptian Cabinet - Information and Decision Support Centre Above rates are applicable for amounts up to USD. 25.000 or equivalent for larger amounts, please refer to Treasury Department. Friday, March 13 & Wed. 4, 2015

ARAMCO SENIOR EIFFEL MANAGEMENT BUYS DIB BAHRAIN SUMMIT VP AL-BUAINAIN STAKE IN EMIRATES REIT TO FOCUS ON STEPS DOWN Emirates REIT, a UAE-based real estate investment FUTURE ENERGY5 Saudi Aramco's senior trust, has announced that Eiffel Management has A forward-thinking confer- vice president fortechnical acquired Dubai Islamic Bank’s (DIB) 25 percent ence focusing on the future of services Khalid Al-Buainain stake in Emirates REIT Management, the manager of the energy sector in a post-oil has left the company, indus- Emirates REIT, TradeArabia News Service said. world is set to be held in try sources said, according to The transaction, for an undisclosed amount, means Bahrain. Reuters. Eiffel Management now owns 100 per cent of the REIT The two-day GCC Ahmad Al-Sa'adi will take manager’s total issued share capital. Leadership Conference, organ- over Buainain's role in the The REIT manager is responsible for running the prop- ised by Expression Marketing company as acting head for erty portfolio of Emirates REITand all the operations Communications, will open at technical services until the end concerning the REIT. It is a private company incorporat- the Moevenpick Hotel Bahrain of August this year. ed in the Dubai International Financial Centre and on April 15 under the patronage Al-Buainain took early licensed by the DFSA(Dubai Financial Services of Energy Minister Dr retirement for personal reasons Authority). Abdulhussain Mirza, reported and his departure took effect Eiffel Management and DIB launched the REITin the Gulf Daily News. last week. He joined Aramco 2010; the UAE’s first regulated Shari’a-compliant Real To be held under the theme in 1980 and has held several Estate Investment Trust incorporated in the DIFC. 'Developing Energy Leaders', it senior positions. Abdulla Al Hamli, managing director of the Dubai is expected to bring together A company spokesperson Islamic Bank and chairman of Emirates REIT energy sector leaders from declined to comment. Management said: “Dubai Islamic Bank has played an across the Gulf, who aim to lay In addition to his role as instrumental role in the development of the REIT with the foundations for the emer- senior vice president for tech- Eiffel Management, supporting this successful project, gence of a new generation of nical services, he was also including the listing of the REIT on Nasdaq Dubai last specialists chairman of PetroRabigh, a year. The REIThas developed according to the initial Expression Marketing joint venture between Aramco plans and DIB now wants to be able to concentrate on its Communications founder and and Japan's Sumitomo role as a strategic shareholder of the REIT.” managing director Aseel Al Chemical. Atiq Juma Nasib, SVP, commercial services sector, Dubai Chamber, and Ibrahim Bardeshi, acting secretary general, MCCI, Sylvain Vieujot, chairman of Eiffel Management and Mohandis told the GDN that it PetroRabigh said in a state- sign the MoU in the presence of Maher Saleh Jamal, chairman, MCCI. executive deputy chairman of Emirates REIT had taken two years to plan this ment last week it had appoint- Management said: “I would like to thank DIB for their third edition of the conference. ed Abdulaziz Al-Judaimi as DUBAI CHAMBER SIGNS MOU WITH valuable support. Since inception, Emirates REIThas "No longer is oil and gas going chaiman of the company fol- developed a solid portfolio of strong income producing to rule the energy sector," she lowing the resignation of Al- MCCI TO FACILITATE E-COMMERCE assets, today valued at over Dh2.2 billion ($600 million). said. Buainain. As part of its efforts to promote e-commerce among Addressing the gathering after the signing of the MOU, "We are continuing to expand our team to give the best "We are diversifying our service to the REIT, and we are pleased that Al Hamli will BLOOMINVEST the Gulf chambers, the Dubai Chamber of Commerce Nasib said that gone are the days of traditional trading as the economies but energy is still a and Industry (Dubai Chamber) signed a memorandum future belongs to e-commerce, adding that the concept of remain on the board as independent chairman.” major component of the gross SAUDI PROFIT of understanding (MoU) with Makkah Chamberof online trading has become a necessity in today’s business BUSINESS FRANCE OPENS KUWAIT domestic product of all GCC SURGES 16PC TO Commerce and Industry (MCCI). The MoU is meant to scenario and under the guidance of the country’s wise lead- countries. So we have to look at support, facilitate and join the new e-commerce initia- ership to adopt the concept of smart business, Dubai OFFICE other energy sources and train $9.5M Business France, the national agency supporting the Bloominvest Saudi Arabia, tive launched by Dubai Chamber in collaboration with Chamber recently collaborated with the major global e-por- the next generation to adopt the Alibaba Group, China's major global e-portal, Arab tal alibaba.com to double the business prospects for the international development of the French economy, new techniques, ideas and a leading investment compa- recently opened its first representative office in ny, has recorded a SR36 mil- News said. business community. He lauded the role of the officials of resources." Under the new partnership, the two sides agreed to MCCI in adopting the concept of smart business as well as Kuwait, TradeArabia News Service said. According to the latest avail- lion ($9.59 million) net profit This office works to enhance the French presence in the in fiscal yearthat ending enhance international trade by promoting e-commerce, and their desire to benefit from the experiences of their counter- able International Monetary opening of new and promising markets for the MCCI mem- parts in the region as this partnership will serve the interests Kuwaiti market, reinforce relations with French compa- Fund estimates, Bahrain's 2014, marking an increase of nies and strengthen ties with local players in addition to 16% compared to the same bers besides allowing them the benefits of the e-commerce of the regional business community. He called for a unified break-even oil price - the aver- platform, which is unique in the region. effort to achieve the growth and prosperity for Gulf busi- improve the French offer attractiveness. age price which is needed to period in 2013, TradeArabia It is hosted in the French Embassy in Mansouriah/ News Service said. The benefits include access to the knowledge center and nesses. Nasib further stated that this latest agreement with balance the budget - is more free e-commerce customer service and International MCCI is in line with the directives of Sheikh Mohammed Kuwait city, and chaired by the former economic attaché than $110 a barrel. Abdullah Al Rashoud, CEO of the Embassy Rabih Soufangi. of Bloominvest Saudi Arabia, Chamber of Commerce (ICC) services through the e-com- bin Rashid Al-Maktoum, UAE VPand PM and ruler of However, according to most merce MENAregion club and allotment of certificate of Dubai, to share knowledge and expertise with regional enti- The main mission of Business France office in Kuwait international benchmarks the said: "These results are cer- is to explore and identify the business opportunities in tainly attributed to increasing verified membership. The MoU was signed by Atiq Juma ties as he stressed that there will be more co-operation pacts current price of oil is around Nasib, SVP, commercial services sector, Dubai Chamber, in the areas of sustainable business practices and CSR as Kuwait and encourage French companies (mainly SMEs) $50 a barrel. the assets under management, to come and explore the Kuwaiti market and exploit all reducing costs, restructuring and Ibrahim Bardeshi, acting secretary general, MCCI, in Dubai Chamber is one of the major organisations in the Al Mohandis said that the the presence of Maher Saleh Jamal, chairman, MCCI. region to promote these concepts. the attractive opportunities in this important market, Gulf needs to diversify away some departments and focus- noted Soufangi. ing on profitable activities.” from hydrocarbons to avoid the The local office, in conjunction with the regional office effect of such price shocks. Al Rashoud noted that the MIDDLE EAST FUNDS INCREASINGLY BULLISH ON SAUDI ARABIA based in Dubai will, on one hand, develop the French value of company projects had "The new generation is EQUITIES attractiveness by identifying relevant target groups in extremely talented, ambitious increased to over SR7 billion terms of investments and on the other hand, will encour- in 2014 from nearly SR3 bil- Middle East funds are increasingly positive toward Saudi Arabia’s stock market as oil prices appear to be stabil- and very energetic, and I think ising and the Kingdom is preparing to open its bourse to direct foreign investment, a Reuters survey of regional asset age the French exports by organising events in Kuwait to they can do a lot," she said. lion in 2013. He also disclosed mobilise French companies towards priority sectors. that in the course of the current managers shows. "Bahrainis and GCC nation- With its main stock index up 11.2 per cent year-to-date, Saudi Arabia has outperformed all other major bourses in the To that end, a French pavilion will be organised in als are very well educated and year, the company is sched- KOGS, set to be the largest gathering of the Oil and Gas uled to establish five new Middle East, whose returns are mostly in the low single digits. motivated characters. They are In the February version of the monthly survey, 53 per cent of respondents said they expected to increase their Saudi equi- industry in Kuwait, from October 11 to 14. knowledgeable about what is investment funds with a total Soufangi said: “Although relations between France and value of more than SR3 bil- ty allocations in the next three months, while none intended to cut them. A month earlier, 40 per cent planned to boost Saudi going on in the sector and a lot equity allocations and the rest expected them to be stable. Kuwait are excellent on the political side, the commercial of them are keen to study, but lion. side of this relation needs more efforts to achieve excel- Bloominvest Saudi Arabia Saudi Arabia’s Capital Market Authority has said it plans to open the stock market to direct investment by foreign insti- that is not enough. tutions in the first half of 2015. lence.” "We want a body that actual- provides a broad range of “My main mission is to push the commercial balance diversified financial services Analysts expect the opening to be gradual, with institutional investors permitted to enter into stages, so a sudden rush of ly takes the responsibility of funds into the market looks unlikely. forward by encouraging French companies to come here training new energy leaders. including initial public offer- and participate in the attractive Kuwaiti projects with the ings, listing in the stock mar- When we talk about leadership aim of offering their experience, know-how, products, we are talking about manage- ket, mergers and acquisitions and services,” he added. and financing, among others. ment and training, human capi- In addition, Business France will organize seminars in tal and a lot of other things - but MNCS ‘LIKELY TO France and Kuwait to inform French companies on the an energy leader must possess INVEST IN OMAN new projects held in the region and on market demands in the technical know-how. They many sectors. have to have the qualities of a DESPITE CHEAP The Business France office will work in regular and leader but also must have the OIL’ close coordination with the Economic Department of the technical background that will Regional bosses of multina- Embassy and the French Business Club in Kuwait (equiv- enable them to lead the sector,” tional companies (MNCs) she added. expect to invest in Oman in Al Mohandis said that the the coming three years Read The MiddleEast Observer conference would "shed light on despite lower oil prices, the importance of leadership in according to the latest brief- Every Wednesday morning the energy sector". ing from Emerging Markets Intelligence and Research (EMIR), TradeArabia News Service said. EMIR is a sup- GCC GOVERNMENTS MUST PREPARE FOR port service for leading execu- tives of some of the biggest POST-OIL ERA multinational companies doing Cuts in public spending, the widespread introduction of taxation and rising lev- business in the Middle East. els of unemployment are set to hit Bahrain over the coming decade, said a report The recent EMIR But eventually the opening may help Saudi Arabia secure the status of an emerging market in global indexes, which could citing the UK-based international think tank Chatham Housem TradeArabia Boardroom briefing brought trigger heavy fund inflows. News Service said. together over 120 senior execu- Another positive factor is oil, which appears to have bottomed out at $45 per barrel of Brent in January and has hovered Independent policy institute Chatham House, the Royal Institute of International tives from some of the world’s around $60 in the last few weeks. This is providing support to heavily weighted petrochemical stocks. Affairs, has warned in its latest report "Future Trends in the Gulf" that declining oil largest multinational companies Although Saudi Arabia’s state budget will be in deficit if oil stays at the current level, the government’s fiscal reserves revenues and burgeoning populations across the GCC will fuel drastic changes in the for a private meeting with a will allow it to keep spending heavily, as shown by King Salman’s order late last month to pay two months’ salary as a bonus near future, reported the Gulf Daily News, our sister publication. high-profile Omani delegation to public servants. State-run companies have mirrored the move, prompting a rally in consumer-focused stocks. The "implicit bargain between society and state" is under strain across the Gulf, it led by Dr Salem ben Nasser Al Thanks to their high concentrations of interest-free deposits, profit margins at Saudi Arabian banks may benefit when US noted, adding that "Bahrain and Oman are faced with the most immediate economic Ismaily, chairman of Ithraa, the interest rate hikes expected later this year prompt rate rises in the Gulf, where currencies are pegged to the dollar. pressure on their ability to sustain [this bargain]". investment and export promo- The Reuters survey of 15 leading Middle East investment professionals was conducted over the last two weeks (of last "Oman and Bahrain have already been faced with declining oil revenue, whereas tion arm of the Omani govern- Saudi Arabia has nearly eight decades of oil production at current rates, and Abu Dhabi ment. month). With all eyes on Saudi Arabia, fund managers are somewhat less optimistic about other Gulf stock markets and have become temporarily negative on Qatar. Thirty-three per cent of respondents expect to increase their United Arab Emirates could cover the costs of some eight years of government spending through its sover- “EMIR Boardroom was a eign wealth fund alone," said the report. hugely effective platform for us allocations and seven per cent plan to cut them. In January, the per centages were 47 and 13 respectively. With its large exposure to the real estate sector, Dubai’s bourse in particular may be vulnerable to interest rate rises start- "However, none of these states can afford to keep increasing public spending in the to talk directly to business lead- way to which their economies and societies have become accustomed in the last decade ers on their perceptions of ing later this year. UAE markets “have been trading in a tight horizontal range on low volumes, which indicates many of doing business in Oman, while the institutions and high net worth individuals are adopting a wait-and-see approach till first-quarter results to see what the of high oil prices," the report added. at the same time highlighting effect of lower oil prices will be on companies’profits in 2015,” said Mohammed Ali Yasin, managing director at Abu Preparing for the "post-oil era" is an absolute must for all GCC states, the report the Sultanate’s future develop- Dhabi’s NBAD Securities. warns, especially as many natural resources that the region has relied on for the past ment plans, particularly the However, he added that he believed that “the second quarter will see more activity and the breaking of the trading range.” half century are predicted to run dry within the lifetime of children born today. plethora of investment opportu- "All GCC states have long-term plans envisaging a transition to a post-oil economy, nities,” said Dr Al Ismaily. developing a mix of energy-intensive and knowledge-based industries, employing According to an EMIR e- more nationals in the private sector, and considering the introduction of taxation," said poll of multinationals, almost the report. three-quarters (72 per cent) of Yet, recent trends have suggested a "return to short-termist policies", according to respondents believe it is likely Chatham House, with the GCC making new public spending commitments worth $150 that their companies will International Initiative billion, or 12.8 per cent of GDP, in 2011 alone - which creates "unsustainable expecta- expand or invest in Oman in the tions of lifestyle and wealth". coming three years. Syrian "The large numbers of recent graduates in the Gulf, who have grown up during an When asked to what extent Regime economic boom, typically expect either public sector jobs or well-paid, high-status pri- lower oil prices would impact vate sector jobs," said the report. their decision, the same amount "For now, such expectations are more easily met in the wealthiest countries with the of respondents (72 per cent) smallest populations - Qatar and the UAE - but in Saudi Arabia, Oman and Bahrain, said crude receipts are impor- salary expectations and unemployment are already causing problems." tant, but not a deal breaker when it comes to investing in With this in mind, the report predicts that "politics in the GCC states will be signif- the Sultanate. Almost one-fifth icantly transformed in the coming decade". (19 per cent) of respondents "Generational change, with 60 per cent of the population under the age of 30, is said they would invest irrespec- placing strain on traditional political structures," said the report. tive of oil prices. “Many of our "The revenues from energy resources are not sufficient to sustain the current politi- clients said this was the best cal-economic bargain in the medium to long term - three of the six GCC countries need EMIR briefing to date because oil at $100 per barrel in order to balance their budgets, and, crucially, these 'break-even' it had the right balance between prices are rising as population growth adds to public-sector wage and subsidy bills," it strategy insights, government added. interaction and high-profile Addressing the growing expectations of Gulf populations- - both citizens and non- networking,” said Trevor indigenous residents - and providing greater opportunities for them to take part in McFarlane, founder and CEO designing their future should be "core elements of the region's security", recommend- of EMIR. ed the report. Dr Al Ismaily spoke to "Curbing fiscal spending will be a pressing concern in the next five to ten years, and EMIR’s C-suite audience about the need to diversify away from oil will require long-term transformations of the econ- the Omani government’s strate- omy and education system," it stated. gy to attract more investment to "Governments, opposition groups and civil society - as well as international allies - the Sultanate, while the private need to engage constructively in addressing the full implications of these complex sector also heard from key Omani business representa- challenges," the report added. tives. From Al-Sharq Al-Awsat Friday, March 13 & Wed. 4, 2015

DOLLAR HITS 11- CHINA ECONOMIC GROWTH LIKE- BAHRAIN-RUSSIA YEAR HIGH AFTER LY TO SLOW TO 7PC IN Q1 TRADE TIES CHINA RATE CUT The Bahraini 6side of the China's economy is expected to slow to an annual 7 The dollarhit an 11-year per cent in the first quarter of this year, a top Chinese Bahraini-Russian Joint high against a basket of government think tank said in a research report, a Business Council held its first majorcurrencies last week, sign policy makers will have to roll out more stimulus meeting, under the chairman- with the greenback gaining a to support faltering growth, according to Reuters. ship of BCCI Chairman broad lift afteran interest The forecast by the State Information Centre under- Khaled Al Moayyed, BNA rate cut in China dented the scored the rationale of Saturday's move by China's central said. Chinese yuan and emerging bank to cut interest rates for the second time in less than While hailing the relations Asian currencies, according four months as it steps up efforts to ward off deflation. between Bahrain and Russia, to Reuters. "Our country's economic growth still faces relatively the panel members proposed The dollar rose to as high as heavy downward pressure amid structure adjustments," boosting trade and investment 95.505 .DXY against a basket the think-tank said in its research report published in the between both sides, describing of major currencies, its highest official China Securities News on March 2. the current volume of trade, level since September 2003. "As such, it will continue searching for a bottom in the which amounts to $138 million, The dollar index last traded at first quarter of 2015 and is preliminarily forecast to grow as below aspirations. 95.417. around 7 per cent in the quarter," it said. The committee also proposed The Australian dollar gained The think tank operates under the purview of China's intensifying the exchange of only a fleeting boost after top economic planner, the National Development and delegations, and benefiting China cut rates, in the latest Reform Commission. from the direct flights to effort to support the world's China's economic growth held steady at 7.3 per cent in Moscow offered by Bahrain’s second-largest economy as its the fourth quarter of 2014 from a year earlier but still hov- national carrier Gulf Air. momentum slows and defla- ered near the weakest pace since the global financial cri- Deputy Chairperson of the tion risks rise. sis, reinforcing expectations that policymakers will have Bahraini side of the council After rallying to $0.7850 to roll out more support measures to avert a sharper slow- Jawad Al Hawaj was assigned last week, the Aussie dollar down. to follow up on and monitor the reversed course and slid 0.6 China's consumer price index (CPI) is expected to work progress and accomplish- per cent to $0.7763, coming increase only 1.2 per cent on-year in the first quarter of ments of the council. under pressure as mixed local 2015, compared with 2 per cent a year earlier, the think- SUDAN DEL economic data and concerns tank said. EGATION TO about China's slowing econo- Annual growth of exports is expected at 5 per cent in my reinforced the case for the first quarter, slowing from 6 .1 per cent a year earlier, EXPLORE more interest rate cuts in People watch an electronic stock board of a securities firm in Tokyo. (AP) while imports are likely to decrease 10.7 per cent in the INVESTMENT Australia. quarter, compared with a 0.4-per cent increase in the same OPPORTUNITIES The Reserve Bank of period of 2014, it said. FOR SAUDI Australia (RBA) holds its JAPAN INFLATION FALLS ON LOWER ENERGY COSTS KENYA: STATE TO REGISTER ALL March policy meetin and there INVESTORS is much speculation it could Japan’s inflation rate has fallen to its lowest level since hopes to reach during the fiscal year starting in April 2015. FIREARMS TO REDUCE BANDITRY A high-level Sudanese dele- follow up a February easing just after Tokyo launched a high-profile offensive aimed Prices had been on the rise, largely due to Japan having to AND CATTLE RUSTLING CASES gation headed by Investment with a cut to 2.0 per cent. at conquering years of falling prices and tepid growth, import pricey fossil fuels to plug an energy gap left by the The Government will embark on a voluntary pro- MinisterMustafa Osman Analysts are split on data showed, AFP said. shutdown of atomic reactors in the wake of the 2011 gramme to register all firearms in the hands of civil- Ismail arrived last week to whether the RBA will deliver a The disappointing figures — weighed by weak consumer Fukushima accident. ians in orderto reduce banditry and cattle rustling explore investment opportuni- follow-up rate cut. Should it spending and falling energy prices — challenge Bank of But plunging oil prices have dealt another blow to the among pastoralists, Internal Security Cabinet ties for Saudi investors in stand pat, traders said the Japan chief Haruhiko Kuroda’s claim that inflation is on an BoJ’s inflation goals, and doubts are growing over the ambi- Secretary Joseph Nkaissery has said, according to The Sudan that will pave the way Aussie could see a relief rally. uptrend. tious target — even among BoJ members. Star said. forfood security in the A cut could send the Aussie They may also aggravate doubts over Tokyo’s wider bid Minutes from the central bank’s January meeting showed The CS was speaking during a pastoral leaders forum Kingdom, Arab News said. lower. AURATE1 to kickstart the world’s number three economy and reverse that three of nine policy board members were doubtful about presided over by Deputy President William Ruto at the Abdul Hafez Ibrahim, "Given the higher expecta- years of stagnant or falling prices which were blamed for the feasibility of reaching the price target. Keekorok Lodge, Masai Mara in Narok County on Sudanese ambassador in tion this month that the RBA holding back growth and denting firms’ expansion plans. Despite insisting that the BoJ was marching toward its Saturday. Riyadh, told Arab News on could ease, expect the down- Sustained inflation is a key measure of Prime Minister inflation goals, Kuroda has also said the BoJ would further Nkaissery said the government has come up with the Thursday: "The minister will be side reaction will be somewhat Shinzo Abe’s three-pronged growth plan, dubbed expand its unprecedented monetary easing campaign — voluntary programme to ensure those in illegal possession accompanied by a delegation of more limited, although the Abenomics, to resuscitate Japan’s long-suffering economy. launched in April 2013 — if necessary. “Currently, 80 per of firearms register them so that they could easily be high-ranking officials, including immediate support between The government data last week showed that Japan’s infla- cent of private-sector economists expect additional easing monitored. Mohammed Taher Aila, gover- 0.7740 and 0.7770 should, tion rate last month came in at 2.2 per cent, down from 2.5 by the end of the year,” SMBC Nikko Securities said in a " We have decided as a government to urge all those in nor of Red Sea state in Sudan, nevertheless, still be at risk," per cent in December. note. “We expect additional easing will come in late April.” possession of illegal guns to register them in the new and they will participate in a analysts at Macquarie Bank But stripping out the effect of a sales tax hike last year, it The inflation data were among a mixed bag of figures that strategy to contain insecurity." he said. bilateral meeting and two-day wrote in a note to clients. rose just 0.2 per cent from a year earlier, the lowest since a also showed a better-than-expected expansion in factory Ruto said cattle rustling and banditry could have been workshop at the Riyadh "Technically, the morezero per cent rate in May 2013, and well short of the Bank activity, but analysts warned that the uptick was likely to fiz- eradicated if leaders demonstrated their seriousness in the Chamber of Commerce and important support, and the one of Japan’s much-touted 2.0 per cent inflation goal which it zle in the coming months. war against the vice. Industry (RCCI)." we need to break for bearish RCCI Chairman Abdul He asked leaders from pastoral areas to come up with Rahman Al-Zamil leads the confirmation that the down- new strategies and approaches in the fight against insecu- trend is continuing, is at LIBYANEEDS MARITIME FORCE TO STOPILLICIT OIL: GOLD PRICES TO Saudi side while Saudi business- rity. man Saleh Al-Kamil also will 0.7620/0.7640." UN The Deputy President said leaders must come out Some analysts said the RISE AFTER attend the bilateral meeting to Libyan authorities are unable to halt the illicit trade in oil or the flow of weapons forcefully and confront the security challenges witnessed review the investment opportu- greenback's strength against in and out of the country, and they need an international maritime force to help, JAITLEY KEEPS in the region by coming up with alternative solutions to the Chinese yuan and emerg- nities in Sudan in the wake of United Nations sanctions monitors said in a new report from Reuters. IMPORT DUTY HIGH the menace. new investor-friendly laws, ing Asian currencies in the The confidential report by the UN Security Council's panel of experts on Libya will Gold premiums in top con- He said the national and county government would wake of China's rate cut especially for sectors like agri- likely increase pressure on major world powers to consider intervention to stop the North sumer India could jump to as work together in initiating development projects that culture, poultry and animal hus- helped bolster the dollar ver- African state from spinning further out of control. much as $5 an ounce over could provide an alternative source of income instead of sus major currencies as well. bandry that suit the food securi- "The capacity of Libya to physically prevent (arms) transfers is almost non-existent world prices next week, from relying on livestock alone for their survival. ty initiatives of the Kingdom, "China's rate cut has trig- and there is no authorisation to enforce the arms embargo on the high seas or in the air "We have to take tough decisions to end cattle rustling the envoy underlined. gered dollar-buying against being almost at par, after as there were during the 2011 revolution," the panel wrote in the report. Finance Minister Arun Jaitley if we are to catch up with the rest of Kenyans," Ruto said. Moreover, seeking investment the Chinese yuan and that is The 15-nation Security Council imposed an arms embargo on Libya in 2011 to stop Ruto added that the establishment of irrigation projects in six free trade zones in Sudan helping to spur broad buying surprised jewelers by main- delivery of weapons to the government of former leader Muammar Gaddafi during his taining import duty at a record would pave way for serious framing activities that will within the framework of the of the dollar," said Satoshi crackdown on pro-democracy demonstrations. Under the embargo, the government can make the youths busy and there will be no room for cat- strategy of his ministry to Okagawa, senior global mar- import munitions with approval of a council committee. level in Saturday’s budget, tle rustling activities. Reuters said. encourage Saudi investment in kets analyst for Sumitomo "The absence of universal enforcement of the embargo, the very high demand for "If we have huge irrigation projects in areas like the country in accordance with Mitsui Banking Corporation in (arms) materiel and the resources and support available to fighting parties to procure The wedding season that Kapedo or build and equip schools along the border areas, the new investment law, the Singapore. materiel indicate that continuing large scale illicit trafficking is inevitable," the report extends to May typically raises we will definitely occupy the minds of the youths and minister and his accompanying Okagawa said such broad said. gold demand, but many had there will be no room for acts of lawlessness," said Mr. delegation will update the Saudi dollar buying on the back of The panel urged the Security Council to form an international maritime force "to assist delayed purchases expecting a Ruto investors and private stakehold- China's rate cut was likely to the Libyan government in securing its territorial waters to prevent the entry into and exit cut in the 10 per cent tax. Buying The Deputy President said there were substantive ers on the introduction of advan- prove short-lived, adding that from Libya of arms ... the illicit export of crude oil and its derivatives and other natural had been muted in the past few resources allocated to the counties which when used well tages and guarantees granted by the focus would probably shift resources." weeks in the otherwise buzzing would transform the lives of the people through initiation Sudan government to foreign soon to US jobs data. The Libyan Mission to the United Nations was not immediately available to comment jewellery centres, Zaveri Baazar of income generating activities. investors," Ibrahim said. Emerging Asian currencies on the report. Reuters could not independently verify the allegations in the report. in Mumbai and Karol Bagh in fell against the dollar as Earlier this month, Libya and Egypt asked the UN Security Council to lift the arms New Delhi. MAURITIUS: GOVERNMENT PROGRAMME 2015-2019 China's rate cut and its lower embargo on Libya, impose a naval blockade on areas not under government control and “Gold prices were declining daily yuan guidance onhelp build Libya's army to tackle Islamic State and other militants. on expectations of a duty cut but DEBATES - 2ND ECONOMIC MIRACLE WILL BE DRIVEN BY Monday underscored expecta- Libya has descended into factional fighting, leaving it almost lawless nearly four years now prices would rise and pre- tions of further easing in the TECHNOLOGY AND INNOVATION after the fall and death of Gaddafi. Two competing governments backed by militia miums would shoot to $3 to $4 The Second Economic Miracle will be driven by technology and innovation. Internet region to tackle slowing brigades are vying for control of the oil-producing Opec member, and UN-brokered talks growth and deflationary pres- an ounce,” said Rahul Gupta, Connectivity, Broadband, Information and Communication Technologies and Innovation will between them have been unsuccessful. director at P. P. Jewellers in New sures. The panel said that UN exemptions aimed at enabling Libyan authorities to buy muni- be at the heart of all Government's economic and social strategies, cutting across not only The euro eased 0.2 per cent Delhi. through existing pillars but, also via all the new economic sectors that will be created. tions to establish law and order have helped militias develop considerable arsenals. Keyur Shah, head of precious to $1.1176 EUR=. It touched a One example cited in the report involved the council's 2013 approval for Belarus to This was the gist of the intervention of the Minister of Technology, Communication and fresh one-month low of metals at retailer Muthoot Innovation, Mr Pravind Kumar Jugnauth, in the National Assembly last week during debates on export 3,000 tonnes of ammunition to Libya. Pappachan, reckons jewelers and $1.1160 earlier on Monday, The panel wrote that in February 2014 much of the first shipment from Belarus was Government Programme 2015-2019. According to him, the ICT Sector has an inherent dynamism 2nd of March. not only "diverted upon arrival at Tripoli airport by brigades controlling it, but some of manufacturers will replenish for boosting economic growth through wealth and employment creation. The key focus is thethe deliveries appear to have been made directly to autonomous armed groups." their inventory from Monday, It is expected, said the Minister, that with the new innovations in computing which will change European Central Bank (ECB) There were 15 other flights from Belarus. "This raises the possibility that further ship- boosting premiums to $5 an the way IT services are delivered to the business and end users, new employment opportunities can meeting. Investors are keenly ments may have been diverted by the Zintani brigades and the panel is still investigat- ounce. “Inventories with jewel- be created in the sector through the mastering of the latest trend in IT architecture comprising of waiting for further details on ing," it said. ers and manufacturers are low as Social, Mobile, Analytics and Cloud technologies. its 1 trillion euro ($1.1 trillion) Between the revolution and August 2014, Tripoli airport was controlled by fighters everyone was waiting for the As regards the development of the ICT-BPO industry, Minister Jugnauth said, the expectations government bond-buying pro- from the town of Zintan, who are loosely allied with the official prime minister and the duty cut to place fresh orders,” are that through the provision of the necessary incentives to attract foreign direct investments, glob- gram, which begins this elected parliament of Libya. Shah said. “Next week we would month. al players will establish their operations in Mauritius in the various sectors. Among these: BPO The panel wrote that in March 2014 a shipment of 23 assault rifles, 70 handguns and see big purchases from them.” Non-Voice-Back Office, Payroll, Finance & accounting, Legal Process Outsourcing; Information The ECB may also decide tens of thousands of rounds of ammunition for the European Union Border Assistance Jaitley instead proposed intro- whether to accept Greek gov- Technology Outsourcing-software development, Mobile apps development, Web development, E- Mission in Libya went missing at Tripoli airport. ducing gold deposit accounts to commerce, Multimedia; and, ITServices-Data Centres, Disaster Recovery, Training and ernment bonds as collateral for The panel said arms proliferation from Libya to Egypt and the Sahel remained "sig- make use of the more than its direct funding, which the nificant," though transfers of weapons to Syria appeared to have declined. 20,000 tons held in households Consultancy. bank stopped doing at the start "Libya is a preeminent source of arms used in criminal and terrorist activities in and temples in the country, and The Minister also spoke about Government's commitment to fully maximise the potential of the of February. Egypt," the panel said in the report. "Transfers of the arms to Gaza through Egypt are also launched a state gold bond to African dividend. For him, through a compelling alternative for higher value works, Mauritius will The dollar touched a two- continuing." temper imports. increasingly leverage as an ideal platform for the delivery of ICT-related business services to week high of 119.95 yen JPY= Egypt conducted air strikes on militant targets in Libya last week after Islamic State Shares of major jewellers such Africa. 'We will strive our best to make of Mauritius the back office of Europe and the USA through and last traded at 119.86 yen, released a video purportedly showing the beheading of 21 Egyptian Christians. the provision of high-end knowledge process outsourcing', he stressed. up 0.1 per cent on the day. as Gitanjali Gems and Titan The panel also said the illicit export of crude oil and oil products was providing "fund- Company fell after Jaitley’s PROSPECTS IN FRANCOPHONE AFRICA BRIGHT DESPITE INDIA IN ‘SWEET ing to the ongoing conflict." speech, though the higher prices RISKS A year ago the Security Council authorised states to board ships suspected of carrying looked unlikely to significantly SPOT’ OF LOWER oil from Libyan rebel-held ports and allowed the Libyan government to request that ves- French-speaking West and Central Africa are generating strong revenues and could DEFICITS, MORE sels carrying the oil be blacklisted by the council's sanctions committee. dent demand. Instead, clarity emerge as top investment destinations despite pockets of turmoil and uncertainty overa "No vessels were designated despite the export of crude oil from ports that are not around the duty will cause reluc- series of looming elections, Citibank said, according to Arab News. GROWTH tant buyers to finally end their India can increase invest- under the control of the Libyan government," the report said. A track record of coups and civil wars has historically made many investors wary of the region, ment to drive economic indecision, industry players said. which is still struggling with unrest in Mali, turmoil in Central African Republic and the spillover growth without borrowing India could buy more than 90 from Nigeria’s Boko Haram Islamist insurgency. more, a key government tonnes in March compared with However, Kevin Murray, Citi’s managing director for West and Central Africa, said growth in report said, in an indication an estimate of more than 50 sectors ranging from large-scale infrastructure to agriculture and telecommunications is creating that Finance MinisterArun tonnes for this month, according big investment opportunities. Jaitley will stick to debt tar- to Sudheesh Nambiath, an ana- “Last year across this region we had a 19 percent increase in revenues year-on-year. I continue gets in his maiden full-year lyst at precious metals consul- to believe that the opportunities are very good, with Ivory Coast being the belle of the ball,” he said. budget last week, Arab News tancy GFMS, owned by Not long ago Ivory Coast, the largest economy in the West African Economic and Monetary said. Thomson Reuters. Union (UEMOA), was itself among the region’s trouble spots. The Economic Survey, the basis for Jaitley’s budget for the fiscal year starting April 1, fore- cast growth of 8.1 per cent to 8.5 INDIA’S BUDGET DELIVERS ON MODI’S REFORM AGENDA per cent under new calculations India’s finance minister, Arun — but was also supported by lower with a larger share of capital spending that make India the world’s Jaitley, presented the central govern- global commodity prices which at the expense of reduced subsidies most dynamic big economy. The ment’s budget for the fiscal year start- reduced government outlays. Going and other cuts in current spending. forecast marks an acceleration ing on April 1, 2015 (2015/16) on Feb. forward, the government is targeting a However, Modi’s first full budget was from growth of 7.4 per cent in 28. The government is expected to deficit of 3.9 per cent of GDPin not merely about fiscal arithmetics, it the current fiscal year. achieve its deficit target of 4.1 per cent 2015/16 and expects to reach its deficit also represented a major statement “India has reached a sweet spot and ... there is a scope for of GDP for the fiscal year 2014/15 (4.4 target of 3.0 per cent in 2017/18. about the Modi administration’s inten- Big Bang reforms now,” the per cent of GDP in 2013/14). This was Notwithstanding continued fiscal con- tions to implement the ambitious report said, adding the country thanks to a combination of bold moves solidation, the government’s medium- reforms needed to unleash India’s eco- was on course to hit double- From Al-Ahram — such as the reduction of subsidies term fiscal strategy is growth-friendly, nomic potential.

Friday, March 13 & Wed. 4, 2015 7 Friday, March 13 & Wed. 4, 2015 8

MINISTRY OF TOURISM READY WITH 5 GIANT TOURISM MAJOR PROJECTS WORTH EGP 5.3B. Eng. Khaled Abbas Rami, Egypt Minister of Tourism announced investment opportunities. The Minister clarified that the projects that the Ministry and The Tourism Development Sectorare pre- soon to be released include a tourism resort in Gamsha, north pared for the upcoming Economic Summit (Egypt The Future) with Hurghada for a total investment cost of EGP 1.076 billion, and a a list of Tourism Investment Projects that will soon be announced tourism resort “ Ras Hewala” in Egypt's western north coast for a to investors in the Economic Development Conference. The total investment cost of EGP 318 million. Minister pointed out that the projects soon to be released are 5 proj- Egypt's Minister of Tourism referred further to 3 other projects; a ects worth a total investment of EGP 5.26 billion. sports resort south Magawish in Safaga for a total cost of EGP 1.989 He Further added in a press conference that was held to announce billion, a tourism resort in Marsa Wezr El Qoseyr Marsa Alam for the tourism sector harvest in 2014 that the sector will participate in a total cost of EGP 663 million, and a tourism resort in Sharm El the economic Development Conference in order to present tourism Foqayry, south Marsa Alam for a total cost of EGP 1.215 billion.

SECTOR Strategy, policy, and investments opportunities SECTORAL STRATEGY AND KEY MESSAGES Overview of key sector challenges and opportunities The tourism sector has been significantly affected by the last few years of instability in Egypt. In the period between 2010 and 2014, the number of tourists decreased by a third, receipts decreased by 40% and the average spend by 10%. However, as the situation in Egypt stabilizes, the tourism sector's fundamentals are attracting again the masses. With its natural and historical wonders, perfect climate, and diverse offerings, Egypt is regaining its leading position as a tourist destination. With the rise of the global tourism, numerous opportunities exist in Egypt. The rise of ecotourism, luxury and family travel, and the emer- gence of tourists from Southeastern countries will fuel Egypt tourism sector's growth for the next decades. The Minister of Tourism talking to the Middle East Observer Editors. - Photo - A .Al-Ashkar

Sector strategy over the short and medium terms(including with regard to attracting the private sector) Egypt's Sustainable Tourism Strategy 2020focuses on six strategic objectives: 1.Target 30 million tourists by 2020 2.Increase Egypt share to 3% of world tourism 3.Double Egypt share of regional and Arab tourism 4.Raise tourist revenues to US$ 30 billion. 5.Attract US$ 10 billion of new foreign direct investment in tourism 6.Achieve an average expenditure between US$ 100 and US$120 per tourist per night These strategic objectives will be achieved through key initiatives: 1.Create an effective institutional framework 2.Develop and diversity tourism products 3.Provide appropriate infrastructure and stimulate investments 4.Improve level of services ENABLING ENVIRONMENT: 5.Create an effective marketing strategy SECTORAL POLICY AGENDA 6.Focus on sustainability in tourism Recent Policy Changes and Reforms 7.Measure to manage Legislative and Regulatory In the short-term, seven tactical • Modernized Ministerial Decree No.535/2010 initiatives are either underway or already completed: related to hygiene standards (completed) 1.Implement an international campaign to brand and promote Egypt • Amended restaurants norms Ministerial Decree No. 851/2013(completed) 2.Continue the traditional marketing activities : • Decreased number of permits from 12 to 2 3.Launch a public relations campaign to improve the perception of accreditation by Ministerial Decree No. Egypt 852/2013(completed) 4.Introduce new marketing tools • Consolidate all tourism-related laws under In the medium-term, seven initiatives Unified Tourism Law(underway) are planned or underway or already 5.Promote domestic tourism • Unify laws and regulations related to hotels 6.Implement tourism awareness campaign for Egyptians establishment(planned) completed: 7.Encourage tourism investments (facilitate process, incentives for Institutional 1.Reconsider tourism sector legislation and green projects, offer new areas for investments, etc.) • Adopted a one-stop shop system in TDA and provide additional incentives to increase MoT for licenses and permits (completed) domestic and foreign investments 8.Review tourism policies across different sectors • Launched intranet system linking 4 and 5 star- In the medium-term, seven initiatives are planned or underway or hotels with the Chamber of Hotels and the MoT 2.Support customers by introducing new already completed: (completed) mechanism to facilitate the administrative 1.Reconsider tourism sector legislation and provide additional incen- • Explore a Tourism Consultants Committee work headed by the minister of tourism and gathering 3.Apply one-stop shop system to minimize tives to increase domestic and foreign investments skillful professionals from the private sector to 2.Support customers by introducing new mechanism to facilitate the partner on tourism projects (planned) the paperwork and time to launch businesses administrative work Planned Policy Changes and Reforms (For 4.Coordinate with the civil aviation sector to 3.Apply one-stop shop system to minimize the paperwork and time to meeting with Development Partners, highlight construct cost effective airports through BOT areas with technical support needed from DPs) 5.Encourage multiple partnerships through launch businesses Legislative and Regulatory 4.Coordinate with the civil aviation sector to construct cost effective • Consolidate all tourism-related laws under Consortiums with developers, investors, tour airports through BOT Unified Tourism Law (underway) operators, management contractors, etc. 5.Encourage multiple partnerships through Consortiums with develop- • Unify laws and regulations related to hotels 6.Promote partnerships in infrastructure of establishment(planned) most promising areas through PPP system. ers, investors, tour operators, management contractors, etc. Institutional 6.Promote partnerships in infrastructure of most promising areas • Explore a Tourism Consultants Committee 7.Create an investment fund to boost the through PPP system. headed by the minister of tourism and gathering "unfinished" tourism projects and encourage 7.Create an investment fund to boost the "unfinished" tourism projects skillful professionals from the private sector to the entry of potential projects (i.e., Papyrus and encourage the entry of potential projects (i.e., Papyrus fund partner on tourism projects (planned) fund) Friday, March 13 & Wed. 4, 2015 9

MINISTER OF TOURISM: TOURISM WILL REBOUND In a special interview for The Middle East would qualify the newly established centres to nies refraining from booking for their clients Observer Eng. Khaled Abbas Ramy, Minister become fully integrated cities rather than mere and here lies the dilemma. of Tourism said that Tourism is one of 8 key centres. Dr. Adla Ragab, said that having examined sectors that are vital for Egypt's economic Part of our plan is that Egypt start hosting the situation we at the ministry reached the con- development. Further, Tourism prior to the more than beach resorts, we are looking for- clusion that at this point we do need a renown recent turmoil was Egypt's second most impor- ward to becoming a sports, health, and business international public relations company with a tant source of national income after the Suez tourism hub. This entails establishing sports distinguished record to work on the internation- Canal, and provides direct and indirect employ- centers that meet international standards and al level. We approached Ministry of Foreign ment to up to 12.6 per cent of the country's specifications. We seek to market Egypt as a Affairs, and we actually did reach the agree- workforce, according to official figures said the business destination, we thus need investors ment on the specifications needed in the Public minister. who are willing to establish exquisite confer- relations company that is to be selected. The ence centres with all supplementary required company will work on improving Egypt's tar- facilities. We seek to market Egypt as a desti- nished image, and refresh our marketing of nation for health tourism and thus seek Egypt as a unique tourist destination, said investors who will invest in model spas and Ragab. I can claim that in this regard we are health facilities. Furthermore, we seek to proceeding on the right track. become a distinguished shopping destination, Parallel to the above track we are moving thus will consider projects that are to establish along other speedy ones said Dr. Adla, as cur- mega competitive shopping malls, said Eng. rently we are maximising our utilisation of the Khaled Ramy. Egypt tourism sector will media both localy and internationaly. Our care- rebound, we are persistent and adamant in our fully tailored campaigns target Gulf markets, as intent to accomplish our targeted objective, and well as tourists worldwide. We took active the proposed projects in EEDC will contribute steps; and launched the URLvideo footage viably to our national income. "Live the Magic" which was viewed by 8 mil- Dr. Adla Ragab, Economic, advisor to lion people worldwide so far. We also pro- Minister of Tourism reassured upon discussing duced two Arabic videos; which speak for the issue of terrorism and its negative repercus- themselves as their popularity is known to all Dr. Adla Ragab Economic Advisor to Minister of Tourism. sions that following the 1992 wave of terrorism by now said Adla. In conclusion Dr. Adla said it took us a six months period to rebound, Egypt is the homeland of the world's most 'The Ministry of Tourism will propose in nowadays bouncing back I can claim is even ancient civilisation, this in addition to the reli- EEDC 5 major projects, and the targeted easier. Today's wave of terrorism is a world- gious sites in Sinai, other governorates, and regions are the Red sea (North Hughada - wide phenomenon, it crossed all borders, and along the Nile. We are blessed with our beach- Hurgada/Safaga - El-Quseir/Marsa Alam) and no one can claim that they are terrorism proof. es, gold sand, safari deserts, and warm weather, the Northwestern coast. The main projects are Dr. Adla Ragab explained that our objective at as well as multiple assets that blend in harmony Gamsha Tourist Centre, South Magawish this point is to steer clear of the list of banned with our lively markets. However, our true and Tourist Centre, Marsa Wazar Tourist Centrre, countries, and this can be achieved, if we main- genuine precious stone is the pleasant nature of Sharm El Foukary Tourist Center, and Ras tain a calm internal environment. To clarify Dr. the Egyptian people. Once more I wish to reas- Hewala Tourist Centre. Eng. Khaled Ramy Ragab said that the real problem is that being sure all that Egypt stands out as a unique desti- explained that in these proposed projects the on the list of "banned countries" lifts insurance nation, and tourism will rebound, said Dr. Eng. Khaled Abbas Ramy, ministry requires that the newly established off tourists heading to such banned destina- Ragab economic advisor to the Egyptian minis- Minister of Tourism projects components fulfill certain criteria that tions; which in turn results in tourism compa- ter of tourism. INVESTMENT OPPORTUNITIES NAME OF PROJECT: Gamsha • Housing units (hotel units from 3-5 star, Project location Marsa Alam - land available studies, reforms etc.): Tourist Center motels, housing tourism units) Project sponsor Project proposed by Budget PPP financing Tier 3 • Covered halls Ministry of Tourism Minimum cost: EGP 1.2Bn Brief description and objective of project • Sports fields according to International Legal framework Budget secured and source of financing (if Gamsha is a tourist center which Olympic Specifications Timeframe Potential starting date: relevant): includes several fully equipped facilities to • Squash courts Duration: Financing gap (if relevant): host conferences and seminars. Gamsha • Health center / Spa For tier 2 or 3 projects, preparatory steps Other remarks Tourist Center is located in North • Conferences Center / Media center to be completed (pre-feasibility, feasibility Contact persons Hurghada sector and is distinguished by • Opened recreational areas studies, reforms etc.): its 3,800m sea stretch • Facilities service area Budget NAME OF PROJECT: Ras Hewala The center will include: • Staff Housing Minimum cost: EGP 663Mn Tourist Center • Housing units (Hotel units from 3-5 Project location South of Budget secured and source of financ- PPP financing Tier 3 Hurghada - land available ing (if relevant): stars, motels, housing tourism units) Brief description and objective of project • Main building Project sponsor Project pro- Financing gap (if relevant): Ras Hewala Tourist Center is a 1,100,000 • Restaurants and cafeterias posed by Ministry of Tourism Other remarks • Spa / Health center Legal framework Contact persons m2 project providing travelers with various • Conference center Timeframe Potential starting date: luxurious facilities. Located in Ras El • Commercial centers and general Duration: NAME OF PROJECT: Sharm El Hekma, the resort is distinguished by its services For tier 2 or 3 projects, preparatory Foukary Tourist Center proximity to Alamain city and Marsa steps to be completed • Opened recreational areas PPP financing Tier 3 Matrouh (pre-feasibility, feasibility studies, reforms • Facilities services areas Brief description and objective of project The center will include: etc.): • Staff housing Sharm El Foukary Tourist Center is a • Housing units (hotel units from 3-5 stars, Budget Minimum cost: EGP 2.0Bn Project location North Hurghada - land state-of-the-art sea resort designed to Budget secured and source of motels, housing tourism units) available attract sailing and beach enthusiasts.The financing (if relevant): • Main building Project sponsor Project proposed by tourist center is located in South Marsa Financing gap (if relevant): • Restaurants and cafeterias Ministry of Tourism Alam and is known for its secure neighbor- Other remarks • Spa / Health center Legal framework hood and 4,500m sea stretch Contact persons Timeframe Potential starting date: The center will include: • Conferences center Duration: • Marina • Commercial centers and general services For tier 2 or 3 projects, preparatory NAME OF PROJECT: Marsa Wazar • Boat landing and parking spaces for boats, • Opened recreational areas steps to be completed (pre-feasibility, Tourist Center yachts, and sea motorcycles • Facilities services areas feasibility studies, reforms etc.): PPP financing Tier 3 • Security gates and check points • Staff housing Budget Minimum cost: EGP 8.3 Bn Brief description and objective of project • Light house. Project location Ras El Hekma - land avail- Budget secured and source of Located in the historical El Quseir sector, • Gas station financing (if relevant): able MarsaWazar Tourist Center offers various • Strollers and bridges for pedestrians , recre- Project sponso Project proposed by Ministry Financing gap (if relevant): luxurious facilities. The resort is located in ational and opened green areas of Tourism Other remarks Marsa Alam, and is distinguished by its • Housing units (hotel units from 3-5 stars, Contact persons proximity to El Quseir ancient city and the motels, housing tourism units) Legal framework sea • Facilities services ( shops , banks , restau- Timeframe Potential starting date: NAME OF PROJECT: South The center will include: rants ,cafeterias , exchange offices) Duration: Magawish Athletic Center • Housing units (hotel units from 3-5 star, • Staff housing For tier 2 or 3 projects, preparatory steps PPP financing Tier 3 motels, housing tourism units) Project location South of Marsa Alam - land to be completed(pre-feasibility, feasibility Brief description and objective of project • Main building available studies, reforms etc.): South Magawish Center is an athletic • Restaurants and cafeterias Project sponsor Project proposed by Ministry Budget Minimum cost: EGP 1.2 Bn resort designed as per Olympics stan- • Spa / Health center of Tourism Budget secured and source of financing (if dards to attract sport-loving travelers. The • Conferences center Legal framework 4,500,000 m2 resort is located in Safaga, • Commercial centers and general services Timeframe Potential starting date: relevant): and is favored for its sports facilities and • Opened recreational areas Duration: Financing gap (if relevant): proximity to Hurghada • Faculties services area For tier 2 or 3 projects, preparatory steps Other remarks The center will include: • Staff housing to be completed (pre-feasibility, feasibility Contact persons

Friday, March 13 & Wed. 4, 2015 10

HOUSING MINISTRY PROPOSES EGP ITALCEMENTI TO CONVERT 2 FACILITIES IN 12.5BN CENTRE AT ECONOMIC SUMMIT 2015, TO BRING LATEST PRODUCTS TO EGYPT project will be called the “Business the new housing's budget has more Italcementi, the Suez Cement with 2015 revenues projected to The company's latest product, and Finance Centre”, and will be built than doubled during the current fiscal company's Italian owner, will con- continue growing by 10%-15%. white cement, includes photo-cat- over 2,000 acres in the 6th of October year (FY), adding that an allocation of vert two new facilities in 2015, Carrè said the expansion plans alytic material, an active principle City and Sheikh Zayed. He added that EGP28bn is expected for FY the project will aim to make use of the 2015/2016. adding to two facilities converted “are targeting renewal energy and that reflects light and can destroy land and develop the services in both The real estate and construction sec- in 2014, Italcementi Managing our activities in the Gulf as in pollutants, and for which the cities. tor witnessed much activity in early DirectorBruno Carrè told Daily Egypt; our capacity is enough to Italcementi won the European The project's return on investment February. The New Urban News Egypt. support 40%-50% growth”. patent. Another product produced will range between 25% and 30%, Communities Authority (NUCA) will “We are investing some EGP He highlighted that 2015 will see by the company is the transparent Madbouly said. offer four pieces of land, ranging 400m per year for four years,” Carrè the continuation of heavy invest- cement i-light. The “October Oasis” project will between 2,900sqm and 14,200sqm in said. “We have done one and we ments to convert the energy mix and The company is currently also be proposed by the ministry dur- a closed tender public bidding in ing the Economic Summit, and is set Sheikh Zayed. converted two plants and we have improve the company's environ- attempting to bring their latest to cost EGP 150bn. The project will be The NUCA also issued in February another two plants to complete.” mental impact to the highest inter- cement technologies to Egypt but built over an area of 10,000 acres in seven tenders for development proj- The company is not disclosing national standards. architects who are able to apply the the south of 6th of October City, and ects in different cities across Egypt. any expectations about their invest- Italcementi will be one of the technology are required, an will be surrounded by the Ring Road The authority's vice president, Kamal ments in 2015, Carr_ noted, companies participating in the Italcementi official told Daily News Ministerof Housing Mostafa and the Fayoum road. Fahmy, said that four tenders were although it expects the market to Economic Summit this month. Egypt. The cement company held Madbouly announced Sunday his The city is the ministry's largest issued by the local authorities in New project to be announced at the Qena and another two in New Tayba, grow. The company spends approxi- the arcVision prize event on 6 ministry will propose a commercial In January 2015, Carrè said 2014 mately 0.2% on scientific research March. Egyptian architect Manar project at the Sharm El-Sheikh Economic Summit and will include located in the Red Sea governorate. Economic Summit, which will need residential, commercial and hospitali- The last project tender was located in revenues will exceed EGP5.5bn, for innovative products, with Moursi was short listed in the com- EGP 12.5bn in investments. ty elements, Madbouly said. Sadat City, which is one of the largest marking an EGP 1.0bn or 20% pro- approximately 6.5% revenues com- petition, however, the prize went to In a statement, Madbouly said the Earlier in February, Madbouly said industrial cities in Egypt. gression over the previous year, ing from newly produced cement. Swiss architect Angela Deuber. TRANSPORT MINISTRY OFFERS 6 MSMES: TOWARDS INCLUSIVE PROJECTS IN EGYPT PIONEERS HOLDING CONSIDERS NEW ACQUISITIONS IN 2015 GROWTH THROUGH THE Pioneers Holding for Financial Investments SAE is studying a num- bidding via mandatory tender offers on Arab Dairy”. The company had been VALUE CHAIN APPROACH ECONOMIC SUMMIT ber of new deals and acquisitions for 2015, Walid Zaki, Chairman of the listed in the Egyptian Stock Exchange (EGX) for several months, the state- (Cont. from page 1) AT $2.5BN Board of Directors said in a statement, Tuesday. ment highlighted. One approach to achieve inclusive economic growth and The Ministry of Transportation Three new potential acquisitions in the sectors of food and real estate are Pioneers Holding already had a 16.73% stake in Arab Dairy. The state- reduce poverty is to focus on integrating micro, small and aims to propose six projects at the expected to be completed this year, Zaki added. ment added that “the transaction values 100% of Arab Dairy's shares at an medium enterprises (MSMEs) into local, regional and global Economic Summit, with invest- The comment comes after the company purchased a 52% stake in the equity value of EGP 426.7m”, with an enterprise worth of about EGP 601m. value chains, while ensuring an enabling environment and ments of $2.5bn, according to Arab Dairy Products Company SAE, totalling approximately 3.5m shares, Earlier this month, Pioneers Holding approved a capital increase of EGP access to information and resources to benefit from market Minister of Transport Hany Dahi. according to a Monday statement from Pharos Holding Company. 3bn ($393m), planning to issue 170m shares at EGP 17.63 per share. opportunities. Egypt's MSMEs have the capacity and poten- Dahi added that the ministry is tar- The transaction was concluded by Pharos that agreed to sell to the high- Arab Dairy bids started in December 2014. The company started produc- tiality to improve the Egyptian economy, increase employ- geting the development of transporta- est bidder, which leads a full service investment bank based in Cairo. tion in Egypt in 1990, and currently exports to countries across the Middle ment and reduce poverty with the proper assistance from the tion infrastructure in Egypt over the On 2 March, it was announced that Pioneers Holding won the bid to East. It registered a loss of EGP24m in the first nine months of 2014, GOE, and support of business and development organisations. next 10 years. acquire the dairy company, the percentage of shares acquired however were according to its statements. The sector accounts for over 90% of active enterprises in yet to be revealed. The Egyptian Stock Exchange announced that it will pro- Pioneers Holding, which specialises in brokerage services and operates in Egypt and contributes to over 80% of GDP and 75% of total long the validity of the declared purchase until 11 March. Egypt, the UAE, and Bahrain, offers market research and investment bank- employment. Yet they do not receive the same attention as Several international and domestic companies aside from Pioneer ing for retail and institutional clients. large enterprises. SMEs account for only 10% of total capital Holding have attempted to gain a slice of the Arab Dairy cake, with com- In 2013, the company registered a 37% increase in net profits, marking accumulation in Egypt, and while 75% of SMEs apply for petitors including: Lactalis's Al-Nour Company; Danish Arla Foods; Indian EGP 358m ($51m) in 2013 compared to EGP 260.5m in the previous year. banking loans, 92% of the applications are rejected. company Paras Dairy; and Saudi Arabia's Arrow Food Distribution. The Egyptian Stock Exchange has been witnessing some activity since MSMEs are still more challenged by underdeveloped value The last round, however, included only Al-Nour and Pioneers, with the the start of 2015, as on 4 March, the Listing Committee of (EGX) approved chains, across various sectors of production. And what we former's offer at EGP 71.00 per share, and the latter offering at EGP 71.11 Emaar Properties PJSC and Orascom Construction (OC) EGX listings. mean by the value chain is the full range of activities through per share. Capitals amounted to $878m and $105m, respectively, the biggest listing which a good or service passes from its beginning stage to its The deal was sealed “following a period of 60 working days of public operations on the EGX for almost five years. distribution and beyond. This may include various ranges of activities such as design, production, packaging, marketing, distribution and support to the final consumer. Strengthening value chain approach within the MSMEs sector will ultimately mean the integration and / or co-opera- tion among firms / enterprises / factories in each subsector or industry. That can happen through vertical or horizontal rela- tionships. Vertical linkages among firms are needed to move a product from its starting point to the market. Vertical linkages Minister of Transport Hany Dah can enable MSMEs; including the informal ones, access new markets, acquire new skills and provide wider range of servic- Sharm El-Sheikh will host the sum- es. They can also help small producers secure their future sales mit on 13-15 March, with a strong of production. Horizontal linkages among producers happen presence expected from the largest when working with many small suppliers. It can help reduce international investment companies. the transaction costs of buyers or exporters. One example is a The ministry prepared six projects food processing producer who buys his inputs in bulk from to be proposed in the summit sched- many farmers. Horizontal linkages can take the form of formal ule as top priorities, according to or informal groups, or can be through networks that are man- Consultant to the Minister of aged through a third party (a big firm or trader). With Value Transportation for Project Planning chain relationships in the market, competitiveness doesn't only Ahmed Moussa. concern a single firm performance; but is then a concern for Moussa noted that the six projects the entire chain. will be proposed according to the GOE's current structural reforms support the establishments BOT system, or in cooperation with of value chains, and the integration of MSMEs to large firms. the private sector. The projects GOE has recently finalised a draft law for investment. There include: a container station in East are also ongoing efforts to streamline business regulations Port Said worth $700m in invest- with the aim to improve the business environment and facili- ments; and a goods road, the first of tate investment and job creation. On another front, the govern- its kind, which will link Ain Sokhna ment is also increasing cash transfers and spending on health, to Helwan, worth $500m. education, and infrastructure, a matter that should give a boost The projects also include a propos- MINISTRY OF TOURISM AIMS TO DOUBLE ing occupancies in hotels during 2015, especially in Cairo and Alexandria. to human and physical capital, productivity, and potential al for a logistics port in both the 10th OCCUPANCIES IN 2015: OFFICIAL The number of Arab arrivals last year reached 1.6 million arrivals, com- growth, which is very important for investment, job creation of Ramadan City and 6th of October The Ministry of Tourism aims to increase average occupancy rates pared to 1.8 million during 2013. and income generation. City, with costs of $200m. during 2015 to 65% from 35% in 2014, according to a ministry official. “We hope Arab tourism sill return to 20% of total annual arrivals to Together with government authorities, donor and develop- According to Moussa, the ministry The official said that Hurghada and Sharm El-Sheikh showed the highest Egypt, after a 16% fall last year,” the official added. ment organisations can also have a crucial role in the develop- will also propose a bus highway link- occupancies over 2014, compared to other regions of the country, adding REAL ESTATE REGISTRATION PROJECT TO BE ment of the country value chains. Interventions can help build ing New Cairo, Heliopolis and Nasr that average occupancies in tourist cities in the Red Sea and Sharm El- the capacity of value chain stakeholders to respond to market SHARED AT ECONOMIC SUMMIT: EITESAL dynamics and support them to adopt new practices. City, with investments at approxi- Sheikh exceeded 45%, while they were less than 30% in Cairo. The upcoming Economic Summit will witness the launch of a num- mately $400m. He added that the areas with the least occupancies during 2014 were Intervention can be taken to scale by helping stakeholders ber of technological projects, the most prominent of which is the Public change behavior that increases competitiveness and change The ministry intends to propose an Luxor and Aswan, and Taba and Nuweiba in South Sinai, as occupancies Private Partnership project (PPP). electric train project that links there did not exceed 20%. the industry norm, and by addressing and advocating for the The Real Estate Registration project is scheduled to be put forward, with industry / chain needs. Taking a processed food chain as an Ramsis, Downtown Cairo, to the east Hotel capacity in Egypt accounts for 225,000 rooms, 65% of which are in a cost of EGP 650m, and will be implemented under the umbrella of the of the capital, with costs of $500m. example supporting investments can take place along the dif- the Red Sea and South Sinai. According to the official, targeted tourist num- PPP.According to Engineer Hazem El-Tahawy, chairman of the Egyptian ferent stages of the chain; including agriculture, storage, logis- Transport development comes bers by the end of this year are 12 million tourists, compared to 10 million within the Ministry of Information Telecommunications, Electronics & Software Alliance tics, transportation, packaging, processed products and retail. in 2014. The Ministry of Tourism is working on separating the marketing of (Eitesal), all indicators confirm the Economic Summit's success. The sum- There are many areas of possible technical assistance; includ- Transportation's priorities regarding different regions, which gives flexibility to their promotion, in light of the developing the system, according to mit will involve 60 countries from around the world in addition to the offi- ing but not limited to developing a database for large firms and crisis they witnessed over the past four years. cial delegations participating in the conference. MSMEs in selected value chains, promoting for the entrepre- Moussa. He added that the ministry “Income increased last year to $7.5bn from $5.9bn in 2013,” said the offi- will propose a river bus project with Engineer Moqbel Fayyad, head of the integrated solutions division at neurship culture, Supporting networking & establishing link- cial, adding that they hope it reaches by the end of 2015 at least $10bn. Eitesal, thinks the size of investment in the planned national projects will be ages between large firms and MSMEs, expanding the provi- costs of $100m. According to Economic Adviser to the Minister of Tourism Adla Ragab “Cooperation with investment at least EGP 500m. This requires partnership between companies operating sion of Business Development services (BDS), for market the second half of last year witnessed growth in numbers and an increase in in the market to implement these projects both inside and outside Egypt. stakeholders of the value chain, facilitating access to finance, banks regarding studying and mar- tourist spending per night. keting these projects already took He added that these projects could help the development of domestic provision of technology support services, improving stan- Ragab mentioned that the nightly tourist expenditure increased from $74 demand in the market, and assist in the implementation of a number of gov- dards, helping in the consolidation of suppliers, agriculture place, and specifications required by in the first half of 2014 to $81 by the end of the year. the Ministry of Investment are done,” ernment projects. These will see the generation of large revenues to the pub- infrastructure, improving the hygiene standards, and helping said Moussa. According to the official, Arab arrivals will have a significant role in rais- lic treasury of the country. in maintaining a green economy.

Friday, March 13 & Wed. 4, 2015 11

Egypt Rest Assured... Your Glorious History is yet to witness an even brighter future

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THE ARAB COMPANY FOR PHARMACEUTICALS & MEDICINAL PLANTS MEPACO-MEDIFOOD has developed formulas from standardized medicinal herbal extracts, becoming a leader in the production of herbal medicine.We have also introduced new lines of conservative medication & baby cereals to our product mix to be able to fulfill customer needs. We apply GMP regulations at our manufacturing facilities, and have accreditation of ISO 9001, 14001 & 18001, 2200 & 17025 Certificates. We are continuously upgrading our production lines to meet international standards of pharmaceutical quality.

As the global trend is to head back to nature, MEPACO-MEDIFOOD has succeeded in developing export markets in Asia, Africa, Europe and America. Our par- ticipation in international specialized exhibitions has been our portal for introducing our products to diverse pharmaceutical markets and has in turn made posi- tive impact on our total company sales.

www.mepaco-pharma.net Scientific office Secondary Trade Building, Entrance No. 5 Fifth Area, Sheraton Heliopolis - Cairo - Egypt +2 02 22673175 , +2 0127693377 Factories Enshas El Raml Sharkeia +2 0552822711 Abu Sultan - Fayed +2 064-3400360 Friday, March 13 & Wed. 4, 2015 13 Misr Co. for Pharmaceutical Industries Holdipharma

An affiliate to the holding company for pharmaceuticals The company produces more than 200 medications covering most medication groups. The company was founded in 1939 as the first national company in Egypt in the modern age. The company was established by the first Egyptian economist Talaat Harb, who is considered one of the pioneers of the Egyptian industries, including the pharmaceutical industry.

It is well known that pharmaceutical industry is a unique indus- local companies according to the GMP. try as it always needs ongoing upgrading and development. The The company produces more than 200 medications covering industry is also governed by rules and regulations made for the most medication groups and is the only company producing sur- field’s manufacturing practices in order to produce effective, gical operations’ drugs from the anaesthetic ampoules as well as safe and high-quality medications. The company was always on Eye ointments. top of the technological advances and it constructed its new fac- In the pursue of development, the company has also developed tory on a 146,000 square metre area. This factory is equipped its medications by registering ‘Paramol plus’, one of the medica- with state-of-the-art technology that follows all the applied reg- tions that the company is famous for. The company uses this ulations of the GMP. medicine for its short term strategies. A stand alone penicillin factory is attached to the new factory, The company exports more than 15% of its total sales to this is because isolating the manufacture of penicillin is a must African and Arab countries. The exports this year was LE 25 in order to produce a high quality medicine. million and it is estimated to be more than LE 30 million next This beta-lactame factory is considered to be the first of its year. The total sales reached LE 152 million and is expected to kind in Egypt to produce penicillin to sister companies and other be more than LE 200 million in the upcoming years.

Friday, March 13 & Wed. 4, 2015 14 EEDC A WIDE STEP IN A LONG ROAD AHEAD Sharm El Sheikh Poised to Host Long-Awaited By Rania Galal the event, he said. legislative reforms that would reflect Saudi Arabia, the UAE, Kuwait and vative and intelligent infrastructures. Egypt is gearing up for a much- Russia, the U.S., France, Italy, positively on investment, she said. other nations have helped promote It's critical to deploy the right mix of heralded investment conference in India and several other world nations The conference will include a num- the Egyptian economy with 23 bil- technologies quickly, efficiently and the Red Sea resort city of Sharm have also confirmed their high-level ber of main sessions on the first day lion US dollars in financial aid. competently so that Egypt's rapidly el-Sheikh, slated for March 13-15, participation in the conference. to review Egypt's economic vision Gulf countries have also been strengthening economy maintains its an event expected to reposition Around 14 Egyptian investment and expound the government's plans involved in helping organize the momentum", Kaeser added. Egypt on the global investment banks in co-ordination with the for the near future, the minister said. conference, with Saudi Finance "We have the right technologies map and affirm its potential as a French Lazard investment bank are She pointed out to 10 sectors on Minister Ibrahim Al-Assaf and UAE and we have the expertise. As a politically and economically stable also promoting economic projects which workshops are to be held to Minister of State Sultan Al-Jabir proven local citizen present in Egypt nation in the region and a trust- that Egypt intends to offer during the review the sector's strategy through both on the organising committee. for more than 110 years, we are part worthy partner on the internation- summit. Egypt's Minister of the ministers concerned, namely The Ministry of Housing will sign of the country and the Egyptian soci- al arena. International Co-operation, Dr petrochemicals, electricity, informa- Memorandums of Understanding ety. Weare familiar with what the The Egypt Economic Naglaa el Ehwany said more than tion technology, agriculture, logis- with Saudi businessmen during the country needs, and we know how to Development Conference (EEDC) is 1,700 figures have confirmed their tics transport, supplies, housing, conference with a capital of over deliver it. That's how we can support expected to lure back international participation in the conference tourism, industries and entrepreneur- EGP 1bn. This will allow for Saudi Egypt", Kaeser said. investors scared off by four years of including official delegations,ship. Special sessions will be held to participation in implementing sever- Siemens has also completed major political turmoil since the January 25 investors and representatives of review the blueprints for the New al real estate projects in new cities, mobility, healthcare and industry Minister of International revolution that ousted the regime of international institutions and leading Suez Canal project , she stressed. according to Housing Minister projects in Egypt and employs about Co-operation, Dr Naglaa el Ehwany Hosni Mubarak to boost its limping figures. The Suez Canal Axis development Mostafa Madbouly. 550 there. economy. Egypt is hoping through Addressing a joint briefing on the project is the most important project Egypt will unveil a project to build Egypt and France will sign an the conference to draw in some latest developments in preparations presented at the Economic Summit, a 200-meter tower, which would be agreement on the sidelines of the Essel Propack and Olam major long-term investments for for the conference with the premier according to President of the Suez the nation's highest, at the upcoming conference on the establishment of a International, among others. large and essential national projects. and Investment Minister Ashraf Canal Authority (SCA) Mohab economic summit scheduled in power plant in Kom Ombu to be The companies include those that The country plans to promote at least Salman, Ehwany, said the confer- Mamish. March, Egypt's Minister of Housing funded by the French Development already have a presence in Egypt as 60 projects at the long-awaited eco- ence aims at supporting and develop- “The Economic Summit is the Moustafa Madbouly announced last Agency with costs amounting to well as those looking for investment nomic conference. ing the Egyptian economy with the beginning of our work; we must pro- week. EURO 40 million. opportunities such as Maruti Suzuki, The investment summit represents co-operation of world nations back- vide to investors the next procedures The Zayed Crystal Spark project France's Ambassador to Egypt Godrej consumer products, Aptech, a milestone in Egypt's economy, ing Egypt and luring real invest- that they need to invest in Egypt,” would be implemented on a 798,000- André Parant told reporters on and Shapoorji & Pallonji etc. Egypt's Prime Minister Ibrahim ments that would realise the targets said Mamish in press statements square meter bloc in West Cairo's Monday French Finance Minister In the run-up to the conference, Mahlab believes, expecting the of current and future development. Monday. He added that in order to Sheikh Zayed district and would be Michel Sapin will lead the country's Egypt's national carrier, EgyptAir, wide-ranging participation of world Among the participants are US facilitate communications, investors built through partnership between delegation to the conference which has taken several measures to pro- nations, international institutions, Secretary of State John Kerry, Head will find specialists in all industrial real estate developers and the New he considers as an important oppor- mote for the big event on board all companies and businessmen. of the International Monetary Fund domains. Urban Communities Authority tunity for Egypt to send an important its flights by airing an in-flight doc- Around 121 world nations includ- Christine Lagarde, Dr. Mohamed el The government has already been (NUCA), said the minister. message to the international commu- umentary on 'why invest in Egypt' ing; 20 Arab states, 43 African coun- Eryan, Dr. Ahmed Zewail, former promoting ten of these projects and “It is an administrative, commer- nity as regards economic develop- and facilities offered by the govern- tries, 15 Asian, 36 European, and 7 British prime minister Tony Blair expects to sign final agreements for cial and entertainment project as it ment for the coming years. ment to support investment ventures from the Americas, in addition to 23 and heads of a number of major around six of them at the conference, includes buildings for various pur- A large business delegation from and encourage businessmen. The regional and global organisations multinational companies, including adding that one of the projects is a poses, in addition to the unique 200 India will participate in Egypt's eco- company offered a 25% discount on have confirmed high-level participa- British Petroleum, General Electric power station worth $3 billion, meter-tower,” Madbouly said. nomic conference this week to all international flights to Cairo or to tion in the conference, according to and Siemens along with Arab busi- according to the investment minister. President and CEO of Siemens explore opportunities in Egypt. Sharm El Sheikh throughout the Foreign Ministry Spokesman Badr nessmen, mainly from Saudi Arabia, Investment banks will present 30 AG Joe Kaeser will take part in the India's Ambassador to Egypt, three-day event.Egypt hopes that the Abdel Aatti, noting an “expected the UAE and Kuwait, she said. of these projects with detailed stud- conference. On the opening day of Navdeep Suri, will lead around 43 conference would bring investments high turnout from global and multi- Private sector projects will be pre- ies, while the rest will be presented the conference, he will outline how people, comprising representatives needed to revamp its battered econo- national companies.” sented during the event through by government ministries, he said, Siemens can support Egypt's future from 25 Indian companies in addi- my. The government's prepared The European Union, International investment banks and bilateral meet- adding that around 35 projects will development. "Siemens is commit- tion to a delegation from the plans for projects ranging from Telecommunication Union, FAO and ings to take place among investors to be launched at the conference and ted to supporting Egypt's long-term Confederation of Indian Industry mega-ventures to microfinance COMESAblock, as well as global probe ways to participate in these around 180 project proposals were sustainable growth as a trusted advi- (CII) to the conference. The repre- schemes would provide stimulus for financial institutions such as the ventures, she added. considered. The chosen projects tar- sor and technology and education sentation will include the petro- investment in the production of sup- World Bank, International Monetary The conference aims to lure long- get sectors of real estate, new and partner," said Joe Kaeser in state- chemicals giant TCI Sanmar, the porting goods and services and in Fund, European Investment Bank run and direct investments to boost renewable energy, mining, agricul- ments to reporters." Egypt faces sub- Egyptian Indian Polyester Company vertical integration projects. The and European Bank for Egypt's economy, she said, adding ture and tourism, he noted. stantial challenges, particularly in (EIPET), Tata Sons, Kirloskar conference comes as Egypt's cabinet Reconstruction and Development that attracting investments requires Since the June 30 revolution that the area of energy, and these chal- Brothers Ltd, Ranbaxyhas approved a much-anticipated have confirmed their participation in promotion as well as carrying out ousted Mohamed Mursi in 2013; lenges can be met by providing inno- Pharmaceuticals, Galaxy Chemicals, investment bill aimed at eliminating

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30 SOUTH KOREAN OFFICIALS, BUSINESSMEN TO ATTEND PEACE ICON SQUARE STATUE READY TO GREET ECONOMIC SUMMIT EEDC GUESTS IN SHARM A delegation of 30 South Korean officials and busi- By now Sharm El Sheikh, Egypt the Future, Economic Development Conference vis- nessmen will attend the Economic Summit in Sharm El-Sheikh, said Minister of Industry and Foreign itors must have come across the newly landscaped Peace icon square, Raa eight winged Trade Mounir Fakhry Abdel Nourm Daily News said. lotus flower Sculpture, and its accompanying fountain. The sculpture's net height is 26.5 The South Korean delegation will be headed by the m, the wings are 24 meters, and the icon from street level is 36 meters; which equals a Korean deputy Minister of Trade and Industry. 12 story residential building. The design is set at a strategic location, with the statue's Abdel Nour said the delegation’s participation con- firms South Korea’s willingness to expand economic eight wings pointing to the main directions, north, east, south, west, north east, east relations with Egypt and to benefit from the existing south, south west and west north. investment opportunities. The sculpture is inspired by the well-known peace icons extracted from the Egyptian Bilateral negotiations Monday, between the minis- ter and the South Korean Ambassador in Egypt, have lotus plant, Raa wings and the globe at a diameter of ten meters with doves flying, refer- tackled ways to promote economic cooperation and to ring to one of the economic conference's main messages "Sharm El Sheikh, the land of increase bilateral trade and investments. peace and Egypt the source and centre of civilization". “The Korean investments in Egypt represent suc- cess stories in several domains especially in the elec- The steel structure which is cladded by aluminum sheets is formed of a concrete base tronic industry, where Samsung and LG companies cladded by double black granite, the stainless steel globe on top holds the world's map, managed to manufacture high quality products not and Egypt map in Gold bronze steel, the flying doves are in stainless based upon a 3 d just in the local market but in exporting products to design of the different wings.Surrounding the statue is a fountain16 m in height; spiral countries in Africa and Arab region,” Abdel Nour added. shapes with different color shades. The lighting was especially designed and fabricated The meeting discussed a proposal to sign an agree- in Germany, and the statue's unique design was contributed by Egypt's reputable engi- ment between Egypt, the UAE and South Korea to neer Yasser Assem. boost trade and industry sectors cooperation. For his part, the South Korean Ambassador to Egypt, Chung Kwang-kyun, noted that his country is keen to participate in the Economic Summit with a CENTRAL AGENCY FOR PUBLIC large delegation. Kim added that Korean companies are aiming to invest in Egypt, as well as to expand the existing projects. Egypt had received several aid packages from MOBILIZATION AND STATISTICS Korea, since it officially became a donor country. This has been in the areas of construction and human development, according to the government-run State 4.3 % increase in the number of hotel Guests in 2013 Information Service (SIS). Central Agency for Public Mobilization and Statistics, issued today the / / 2015 rooms in governmental sector, 2.7 thousand rooms floating in the private sector 0.67 EGP7.5BN INVESTMENTS BY SEBA Annual Statistical Bulletin of the elements of hotel activity and tourist villages of rooms in hotel of public sector / public business. IN A SUMMIT PROJECT governmental sectors, public / private and public business in2013. • The number of beds reached 256 thousand beds in 2013 compared to 242 thousand The Saudi-Egyptian Businesmen's Association It notes that the increase number of guests in hotels during the 2013 for improv- beds in 2012, an increase of 5.8%. (SEBA) will invest in an agricultural project to be - The number of beds reached 239 thousand beds in hotels and tourist villages of pri- presented at March's Economic Summit, Ahmed ident of security situation increasing cultural and scientific activities during this period. vate sector, 6.5 thousand beds public / business of public sector ,0.5 thousand bed in Sabry Darwish, a memberof SEBA's Board of governmental sector 0.5 thousand hotel beds in floating hotels in the private sector ,and Directors, told Daily News Egypt. The most important indicators 134 floating hotel beds in the public sector / public business. Darwish said that a total of EGP 7.5bn will be injected are as follows: • The number of guests totaled 10.2 million guests in 2013 ,versus 9.7 million guests into the agricultural project. in 2012, an increase of 4.3%. The project is to be developed over four phases of 1m • The total number of hotels tourist villages acres each, with the first phase expected to be completed and floating hotels 1193 hotels in 2013 com- - The number of guests reached 9.6 million guests in hotels and tourist villages of pri- by 2017. pared to 1223 hotels in 2012, a decrease of vate sector, 314.3 thousand guests in hotels Darwish revealed that SEBAhas obtained a total of 2.5%. and tourist villages of public sector / public 250,000 acres out of the million, where each acre was - The number of hotels and tourist villages business 0.130 thousand guest of govern- sold at a price of EGP 30,000. in the private sector reached 1105 hotels , 13 mental sector, hotels 89.8 thousand guest Total investments for the project amount to EGP30bn, hotels and tourist village in the public sector floating hotels of private sector, 3.7 thousand and the final delivery for all four phases is expected by / business26 hotels in governmental of sec- guest hotels floating public / business sector 2030, according to previous statements by Minister of tor, 47 floating hotels private sector and 2 General Agriculture and Land Reclamation Adel El-Beltagy. floating hotel in public sector / public busi- • The number of accommodation nights' A meeting was held between El-Beltagy and a SEBA ness. for guests totaled 33.8 million nights in 2013 delegation to discuss the first operational procedures for • The number of rooms reached 139 thou- compared to 34 million nights in 2012 a the cultivation of the first phase of the project, according sand rooms in 2013 compared to 130 thou- decrease of 0.7%. to SEBA statement. sand rooms in 2012, an increase of 6.3% - The number of accommodation nights' for guests reached 32.49 million nights in The meeting also included the presence of boards and despite a decline in the number of hotels and hotels and tourist villages of private sector, 0.473 night in hotels and tourist villages of heads of 30 Saudi, Egyptian and Emirati companies. The this is due to addition of serviced apartments item suites in the questionnaire this year. public sector / public business, 431 nights in floating hotels of private sector, 0.384 meeting is a preparatory procedure before a further meet- - Number of rooms reached to 130.1 thousand rooms in hotels and tourist villages in nights in government of sector hotels and 0.14 nights in floating hotels of public sector ing expected to take place with Egyptian president, private sector, 3.9 thousand rooms in public / business of public sector, 1.8 thousand / General Business. Abdel Fattah Al-Sisi, the statement added.

MINISTRY OF ELECTRICITY & ENERGY LEADERS, BUSINESSES CONFIRM ECONOMIC SUMMIT TO SET ECONOMIC EGYPT'S VISION FOR INVEST- EGYPTIAN ELECTRICITY TRANSMISSION COMPANY (EETC) MENT CLIMATE: EJB SUMMIT ATTEN- Investors in the Egyptian JuniorBusiness ABBASSIA, NASR CITY, CAIRO. FAX.&TEL NO. 02-22616527 Association (EJB) believe that the Economic DANCE Summit set to be held in mid-March in Sharm El- Prime Minister Ibrahim Mahlab invit- Sheikh will determine the vision of the invest ed businessmen and investors to partici- ment climate in Egypt during the upcoming peri BENBAN 3 X 175 MVA -22/220 KV S/S pate in Egypt's Economic Summit and od. urged them to pump more investments Investors said, at a seminar organised by Al Borsa into the country during his visit to the newspaper on Saturday, that the conference is a good ADJUDICATION NO. 56 (2014/2015) Dubai Government Summit in step towards reforming the investment climate. February. The conference is not the end; it is an event where Lebanese Prime Minister Tammam many projects will be presented, and whatever is not EETC invites international Eligible Bidders to participate in an Salam has confirmed his attendance to presented will be presented later, according to presi Egypt's Economic Summit in Sharm El- dent of the EJB Hossam Farid. international bidding for Engineering, design, fabrication, factory Sheikh from 13-15 March, the Ministry of During the past period, Egyptian citizens started to tests, (CIF)delivery, inland Transportation, loading, unloading, Industry and Trade said in a statement believe that Egypt's economic situation depends erection, civil work, site tests, Commissioning, insurance till tak- Saturday. completely on the conference, said Farid, adding On 13 February, Minister of Industry and that expectations for the conference are very high. ing over and technical assistance during the warranty period and Trade Mounir Fakhry Abdel Nour, along- Ahmed Salem, Secretary-General of the associa guarantee on turn key job basis according to tender document for side an Egyptian delegation, attended the tion, believes that the conference is a message to all four(4) substations Benban (1,2,3,4) 221220Kv,3 X175MVAfor Egyptian-Lebanese Business Forum that countries interested in investing in Egypt, adding each Substation at Kom Ombo (Aswan Governorate). was held in Beirut. that they have a political desire to participate in the During the visit, Abdel Nour met with a summit. Each Company can participate in one Substation or more and number of Lebanese officials. Separate "There are 1,800 persons invited to the summit, EETC has the right to divide the S/S's to the bidders according to discussions were held with the Ministers of 900 of whom are foreigners. It is a message to the EETC requirements. Agriculture and Tourism, as well as Abdel Lebanese Prime Minister Tammam Salam world that states that there are great investment Nour's counterpart. The discussions mainly opportunities in Egypt," said Salem. Tender Document is available against presentation of payment involved strengthening relations between He added that the presence of all the executive receipt of a non-refundable US$ 3000 from National Bank of Egypt, the two countries. bodies of the state, starting from the president to the Nasr city branch, EETC'S account No. 1100 1 007177 together with an Abdel Nour also held talks with several Lebanese investors, four of whom will visit Egypt different ministers, is favourable to investors. by the end of the week to study the available investment opportunities. These will specifical- The legislations are the biggest factor that application (original plus two copies) showing the name, address, E- ly be in the four main sectors of “textiles, electrical transformers, food industries and build- investors rely on regarding Egypt's attraction of mail, fax and telephone numbers of both supplier and local agent and ing materials”. domestic and foreign investments, according to head Meanwhile, a delegation responsible for promoting the summit met with more than 20 of legislation committee in the EJB Gamal Abu Ali. addressed to Head of Purchasing and Stores sector during official The legislations, which the government working hours. department heads of Italian companies who confirmed their attendance at the summit. The companies specialise in a number of sectors such as energy, electronics, infrastructure and announced are to be issued soon, are in themselves The Bids shall be submitted according to tender conditions in one architecture. an announcement to the foreign investors, revealing In addition, Taher Al-Sharif, Secretary General of the Egyptian-British Chamber of the state's willingness to reform the investment cli sealed envelope (Technical & Financial), on or before the day of mate in Egypt. 8/4/2015 at 12.00 (noon). Commerce, stressed the importance of the British participation in the summit. He noted that the UK is the second largest foreign investor in Egypt, after Saudi Arabia. Abu Ali believes that although the unified invest- The Technical envelope contains the Bidder's technical offer includ- He further highlighted that Britain has cumulative investments in Egypt since 1992, far ment law is not issued yet, it is not a negative sign, but proof that the government wishes it to be accu ing all information as specified in the tender document and tender exceeding $22bn, and more than 60% are in the oil and gas sector. rate so that it would not require amendments in a security with an amount of US$ 400000 for each Substation. Moreover, Minister of Investment Ashraf Salman met with the Chinese Ambassador to short period. Egypt Song Aiguo and announced Thursday that China will be participating in the economic "There will be no problem if these legislations are The Financial envelope contains the price schedules only. summit. Technical envelope and Financial envelope will be opened on the issued following the summit," according to Abu Ali. Furthermore, Kuwait's Emir, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, confirmed his Mohamed Nader, member of the Board of same date and, time. attendance through personal telegram to the Egyptian President Abdel Fattah Al-Sisi on Directors of the EJB, asked that the country to The Completion Period is 8 months for each Substation. Wednesday. decide what it wants from the investor, whether it is Prime Minister Ibrahim Mahlab invited businessmen and investors to participate in Egypt's Bids should be valid for 120 days starting from the opening date. added value or employment, and to specify which Economic Summit and urged them to pump more investments into the country during his visit kind of investments it would like. Bidders should be the manufacturer of the main equipment, or a to the Dubai Government Summit in February. Abu Ali also noted that EJB held many meetings consortium or joint. venture between the manufacturer of the main A promotional campaign is being undertaken by the Federation of Egyptian Chambers of with foreigner ambassadors. equipment and a trading company. Commerce (FEDCOC) in that regard. Meanwhile, the Association's chairman sees that Visits were paid to Brussels, Luxemburg, Russia, Berlin, and Moscow, where representa- the unified investment law must be compatible with The conditions of EETC purchasing and contracting regulations tives from the Federation invited and urged foreign investors to participate in the Summit. the vision that the Ministry of Planning issued will be considered as integral part of tender documents. Government officials are taking serious measures to make sure that various countries and before. Interested Bidders may obtain further information regarding Tender international companies would fly to Egypt in March to attend the summit. Egyptian delega- Salem stated that administrative reform in Egypt is tions will continue visits to various countries in the coming period to promote it. important. In the past, no one discussed this issue. Documents from: Meanwhile, long awaited reforms or amendments to a number of Egyptian investment laws Salem affirmed the private sector's role regarding are yet to be revealed. Those amendments are key drivers that will determine whether foreign the upcoming development processes. Bank funding EGYPTIAN ELECTRICITY TRANSMISSION investors will actually invest in the country in the coming period or not. should not continue during the next period, which Investment Minister Ashraf Salman had previously revealed that the investment law is mainly funds governmental debt tools, whether COMPANY - EETC, being amended to unify the process of obtaining licences through a 'one-stop shop' investment bonds or treasury bills. CENTRAL PURCHASES DEPARTMENT, window. It will also set out a mechanism for settling disputes quickly and successfully. According to Salem, investment opportunities will ABBASSIA, NASR CITY, CAIRO. FAX & TEL NO. 02-22616527 The Economic Summit will open the doors for international and domestic investors to par- not reach the private sector so long as the private ticipate and know more about available investment opportunities in Egypt. The summit will sector funds governmental debt tools. present 30 different investment projects worth a total of $20bn.

Friday, March 13 & Wed. 4, 2015 16 GULF STATES TO DEPOSIT $10B. IN EGYPT BEFORE KUWAIT TO JOIN ECONOMIC SUMMIT, PUMP NEW INVESTMENTS SUMMIT While Egypt is preparing for the launching of the Economic Summit next month in Sharm Saudi Arabia, Kuwait and the El-Sheikh, Prime Minister Ibrahim Mahlab paid a 3-day visit to Kuwait last week to review UAE will deposit $10 billion in joint co-operation as well as inviting Kuwaiti investors to participate in the Summit. During Egypt before the Economic Summit his meeting with Kuwaiti EmirSheikh Sabah Al-Ahmad Al-Jaber, Mahlab discussed the in March. Egypt hopes the Summit investment opportunities and mutual ties between Egypt and Kuwait, Dalia Moh. wrote. will generate ventures worth billions Egypt is preparing a package of legislative reforms to lure more foreign direct investments (FDI) of dollars, helping to boost the econ- to breathe life into the ailing economy, Mahlab highlighted. "A higher committee for legislative omy, which has just started to recov- reforms is reviewing a large number of laws, at the forefront of which is the investment law, with erfrom political turmoil triggered a view to curtailing bureaucracy and cutting time of paper work processing," Mahlab said. by the January Revolution in 2011. In his speech during a visit to the Kuwaiti Chamber of Commerce and Industry (KCCI), Mahlab Saudi Arabia, Kuwait and the UAE said "the new investment law will be completed before the convention of the international gave Egypt more than $12 billion in Economic Summit which will be organised on March 13-15," he affirmed. aid, deposits for the Central Bank of The current situation in Egypt requires solidarity and co-operation among regional countries to Egypt (CBE) and petroleum products overcome the huge security and economic challenges, the Premier noted, pointing out that Egypt since the toppling of President will set a new mechanism to ensure quick settlement of investment disputes. "The government is Mohamed Mursi in 2013. keen on cracking down on corruption at the State bodies and improving the performance of civil Egypt expects economic growth servants," he stressed. near 4 per cent in FY 2014-15, boosted In addition, Mahlab said that Egypt is also working on a unified land law and a bankruptcy law by rising confidence and a windfall to achieve the interest of the State and investors and avoid future disagreements. Over 25 mega projects in the different sector would be put forward for investment during the Summit, he said. from lower oil prices, Finance KCCI President Al Al-Ghanim highlighted that Kuwait is eager to support the Egyptian econo- Minister said last month. President my, assuring that a large Kuwaiti investment delegation would partake in the Summit. He also Abdel Fattah El-Sisi has focused on encouraged the Arab investors to pump more money into the Egyptian economy to help recover it, trying to repair Egypt's economy, urging Egypt to take all required measures to create a good investment environment. enacting reforms to try and win over Moreover, Mahlab discussed with the Kuwait Fund for Arab Economic Development (KFAED) foreign investors and announcing the possibility of financing some projects in Egypt. Fund's Deputy Director-General Hesham mega-projects such as the new Suez Ibrahim said that the Fund is studying financing of two electricity projects in Egypt worth $300 Canal to create jobs. million. LE130M. "The Fund will participate in the Economic Summit in Sharm EI-Sheikh," according to Mahlab, noting that the Fund has participated in a number of service and development projects in Egypt INVESTMENTS FOR since 1964. LAFARGE’S Also, Vice President of Al-Kharafi Group Bader Al-Kharafi announced the Group's intentions to launch a factory for Mitsubishi Motors in Egypt, to be located in Qena, saying that the group is FACTORY President Abdel Fattah El Sisi receiving the Kuwaiti Ruler . currently obtaining approvals from the company. Lafarge Group intends to boost its Negotiations with Mitsubishi Motors are still underway, said AIKharafi, noting that the move is activity in the market via setting up part of the company's plan to expand its business in Egypt. a new factory in the Suez Among Al-Kharafi's most important investments in Egypt so far is Porto Ghalib, a coastal resort on the Red Sea with a capacity of 1,050 yachts, an extensive real estate development project, and the Marsa Governorate, in co-operation with Alam Airport. Porto Ghalib investments total $1.2 billion. The Group also owns an Egyptian-Kuwaiti holding company with diversified investments of more than $250 million across petrochemicals, glass, International Financial Institutions pipes, fertilisers and gas. Kharafi Group's investments in Egypt amounted to more than LE38 billion in nearly 35 projects. (IFls). This factory will produce Furthermore, Governor of the Central Bank of Egypt (CBE) Hisham Ramez, who accompanied the Premier in the visit, said that Egypt is not facing a dollar crisis and that the government imports roughly alternative fuel from the municipal, LE60 billion a year. The CBE along with the operating banks provide half of this amount, while the rest from the black market, he noted. agricultural and industrial wastes, However, Ramez promise to close the black market soon with procedures applied internationally. "Whoever owns dollars in the black market will have to take them back," he assured. "Al Alam Al Yom" business daily The Governor assured the strength of Egypt's banking sector. No banks are facing difficulties, he stressed, adding that the liquidity of the banking system is high. "We are ready to push growth in the coming reported. period," said Ramez. Amr EIKady, General Manager of Prime Minister's visit to Kuwait aimed to inspire confidence to the Kuwaiti business sector on Egypt's economic situation. Egypt is also looking for agreement on investment co-operation during the upcom- ECOCEM Industrial Ecology Egypt, ing phase, and consulting on speeding up the settlement of any disputes related to Kuwaiti investors working in the Egyptian market. affiliated to Lafarge, announced that the new factory will be established with LE 130 million in total cost and production capacity of 800,000 tonnes EGYPT TO OFFER $10B. per year. The work will start by j the SUEZ CANAL PROJECT ON PETROLEUM PROJECTS end of 2015. The factory is the largest of its kind in terms of the production AT SUMMIT capacity in Egypt and the Middle East, Egypt will highlight a total of 12 TRACK, TOLLS UNCHANGED petroleum, petrochemicals and min- he added, noting that the European erals projects worth $10 billion to standards in health, safety and envi- potential global investors at an ronment will be applied. upcoming economic development Lafarge is still implementing its plan summit in Sharm El-Sheikh, a report to switch to the alternative energy's use said. from wastes by 35 per cent by the end Egypt aims to boost local production of the current year. of petroleum commodities and industri- al chemicals with these projects, the MISR ITALIA TO Ahram Online report said, citing the PUMP LE2.2B. country’s petroleum ministry. Egyptian banks will offer seven proj- INVESTMENTS ects worth $5 billion, the report said, IN 2015 adding that these include a hydrocrack- Misr Italia Holding Company for ing complex at the Assiut Oil Refinery Real Estate and Tourist Investment Company at a cost of $2.8 billion, and a announced its plans to pump LE2.2 phosphate fertilisers and phosphoric billion investments to implement acid plant worth $1.2 billion. A $430 million complex with an two commercial centers in New annual production capacity of 375,500 Cairo and 6th of OctoberCities in tonnes of petroleum commodities will 2015. be highlighted at the global conference, Hany EI Assai, Board Chairman of as well as a venture to construct a $299 Misr Italia noted that the investment million bio ethanol plant. cost is estimated at LE1.1 billion for A 100-kilometre Sohag to Assiut each mall, to be finalised during the LNG, as well as a Sohag to Aswan line coming three years. of 500 Kilometres, at a cost of $35 mil- Moreover, the company also intends lion and $201 million respectively, will to start implementing the first phase of also be the show, the report said. Mousa Coast project in the North Other proposals include a propylene Coast during the current quarter of production plant at a cost of $2.5 billion 2015 with LE1.1 billion investments; to lay out 250,000 tonnes of the gas "Amwal Al Ghad" news gate quoted annually; an aromatics and fertilisers EI Assai as saying. The project's first complex at a cost of $2.13 billion to produce 1.4 million tonnes of industrial phase will be finalised within three chemicals and fertilisers annually, years. He added that the project is. Transit tolls at the Suez Canal will stay largely at their current prices this year, according to Chairman of the Suez Canal Authority Mohab Ahram Online reported. located on a total area of 8 million m2, Mameesh, as development of a second parallel waterway proceeds on schedule. The canal, which generates a main source of income for the Arab An industrial chemical formaldehyde and with total investment cost of more world's most populous country, would open its second lane as expected in August, Mameesh said. project at a cost of $100 million to pro- than LE 10 billion for the four phases. The project has been the focus of many hopes and attention in Egypt, where several years of tumult following a 2011 uprising have left the econ- duce 70,000 tonnes annually will be on Furthermore, Misr Italia plans to omy battered. President Abdel-F attah EL-Sisi ordered a faster digging schedule at an inauguration ceremony last year, saying that the urgency of offer, as well as a new desalination unit hand over the first phase of Cairo Egypt's situation meant that the project could not wait for an originally planned three-year timetable. in Amreya Oil Refinery Company Business Park in New Cairo during the The canal earned a record $5.455 billion in revenue last year, its most lucrative since inauguration in 1869, compared to $5.105 billion the pre- which could produce 4.59 million current year. This project is located on vious year, the Authority said. tonnes of petroleum products annually an area of 350,000 m2 with invest- Mameesh said the toll structure was unchanged as an incentive for ships at a time when lower oil prices could make the alternate, fuel-intense at a cost of $250 million, the report ments estimated at LE300 million. The route around Africa attractive. "The fuel price has dropped all over the world. Raising the transit toll would make it easier for ships to travel around said. Egypt will also promote a glass project's three phases will be delivered the Cape of Good Hope," he said. sand processing plant with a production in the forthcoming three years with The only change for 2015 would be for shippers of liquefied natural gas, who will see a toll discount they had cut to 25 from 35 per cent, he said. target of 250,000 tonnes annually at a total investment cost exceeding LE2 cost of $35 million. billion. JICA TO FUND CAIRO METRO 4TH LINE, PHASE I Japan International Co-operation Agency (JICA) will meet in two weeks with 17 ELECTRICITY PROJECTS TO BE OFFERED IN EGYPT'S ECONOMIC Egyptian authorities to discuss funding the first phase of Cairo Metro Project's fourth line. Hideki Matsunaga, JICA Cairo Office Chief Representative, that SUMMIT meeting with officials from the Egyptian National Authority for Tunnels (NAT) The Ministry of Electricity and Renewable Energy has recently finalised a list of the projects and investment oppor- will tackle plans to carry out the first phase of Cairo Metro's fourth line tunities in the power sector, to be offered before investors and the International financial institutions during Egypt's through a loan estimated at $340 million. Economic Summit on March, Dalia Mohamed of MENA wrote. Matsunaga expected to ink the financing The list includes 17 projects, out of which 15 projects are equally distributed to generate electricity from conventional ener- contracts and start implementation on the gy, represented in gas and mazut, renewable energy, transferring energy, and two additional projects, represented in establish- fourth line early 2016. JICA seeks to grant a ing a center for national energy control and another for smart meters. soft loan worth $340 million, with 0.2 per cent interest rate that should be paid in 40 The final list witnessed adding Dairut and Beni Suef power plants with total capacity of 4500 megawatts, as well as two years, the Japanese official noted. This step power plants for transferring electricity; namely, Wadi El Natrun and Abu El-Matamir in El-Beheira governorate. emphasises the Japanese government's will- The Ministry reduced the number of the solar power plants from 15 plants to only two plants, with total capacity of 200 ingness to invest in Egypt in the coming peri- megawatts, while there are no changes in wind projects or in their production capacities. od. 800 megawattes renewable projects, $1.5b. investments Furthermore, Matsunaga stated that the Japanese government is committed to partic- Moreover, total projects' investments will exceed $10.3 billion and nearly 8300 megawatts total capacities, out of which ipate in the Cairo metro project, clarifying 7500 megawatts conventional power plants, according to sources. These conventional plants include Dairut and Beni Suef sta- that the current obstacle facing both JICA tions with capacity of2250 megawatts and total investments of $2.5 billion per station, in addition to 1500 megawatts for and the Egyptian Ministry of Transportation is not related to pumping those loans Damanhour power plant with total investment estimated at $1.6 billion. but to the implementation steps in the upcoming period. Sources added that El-Seyouf and Mahmoudia power plants will be launched with capacity of 750 megawatts and about JICA's participation is not only in providing trains but also participating in con- $800 million investments for each power plant. Minister of Electricity struction works, civil works, and controlling systems and management, the Japanese official elaborated. The total volume of the project is worth around $3 billion. Regarding renewable energy, it is scheduled to launch 800 megawatts renewable energy projects with $1.5 billion total Tourism for Energy Emad Hasan. The project will be implemented during the first investments, dividing into 600 megawatts wind energy and 200 megawatts solar energy. The projects include three wind half of 2015, to be followed by converting the entire sector to new and renewable power plants in the Gulf of Suez and West Nile with capacity of 200 megawatts per plant and investments up to $850 million, in addition to 200 megawatts for two energy, in accordance with the Ministry's strategy, he noted. solar power plants with Photovoltaic cells system in Kom Ombo in Aswan with nearly $500 million investments. The Ministry of Finance allocated LE1.25 billion during 2014 to provide loans for The Ministry of Electricity and Renewable Energy also plans to set up five electricity transmission projects with 500 kilovolt capacity per plant to transfer the converting to new and renewable energy, in light of the energy crisis in Egypt. Hasan power from the established projects as well as linking them with the National Grid. The five plants include Tamiaand Abu El-Matamir stations in El-Beheira gov- sees that decreasing the financial allocations of the new energy programme in the sector is not considered a retreat. "Hotels that will convert to new energy will be a ernorate and Wadi El Natrun. There are control centers and smart meters projects that the Ministry sought to expand in it. trial phase which will decide on transformation in all hotels for the coming period," On his side, Mohamed Shaker, Minister of Electricity and Renewable Energy, clarified that the projects will be implemented under the current five-year plan Hasan said. 2012-2017. The Ministry is seeking to open the door for the private sector, after the government approves the new renewable energy tariff from the private sector.