SUBSCRIBE NOW THE MIDDLE EAST ( LE. 3 ) OBSERVER TO : THE MIDDLE THE PUBLISHER: AHMED FODA CHIEF EDITOR: H.A. RAOUF EAST OBSERVER MIDDLE EAST COUNSELORS: YASMIN FODA Economic AHMED SHAFIK covering the MAHMOUD FODA N.M.M. RASHED Middle East, Dir. of Public Relations: KAMAL MOKHTAR Arab Gulf and Head Office : 41, Sherif St., Cairo, Egypt African Markets Tel.: 23939732 - 23926919 Mob. : 01006670340 Head Office Emails : [email protected] 41, Sherif St., Cairo, Egypt [email protected] Tel. : 23939732 - 23926919 Fax : 23939732 - 27485844 [email protected] Mob. : 01006670340 Printed at Societe Orientale de Publicite Emails : [email protected] (S.O.P.) - Cairo - Egypt [email protected] - [email protected] 62nd YEAR No. 1 CAIRO WEDNESDAY, JANUARY 7, 2015 ESTABLISHED 1945

PRESIDENTIAL DECREE PRESIDENT SISI AND EMIR OF KUWAIT DISCUSS BILATERAL SISI REVIEWS WITH BUSINESSMEN Comment ON CREATING PHOS- OPPORTUNITIES OF INVESTMENT IN EGYPT PHATE INDUSTRIAL RELATIONS, ISSUES OF COMMON CONCERN TO THE REGION President Sisi met with the members of the Kuwaiti Chamber of SUBTERRANEAN ZONE IN ASWAN Commerce and Industry under Ali Thanyan Al Ghanem and 15 WATER HOPE OF President Abdel Fattah Al-Sisi has Kuwaiti investors with whom he discussed available chances of invest- issued a decree on establishing a ment in Egypt. During the meeting, Kuwaiti Businessmen expressed AGRICULTURAL phosphate industrial zone in Wadi willingess to take part in the economic conference which will be held EXPANSION IN Helal in Al-Sebaia City in Edfu, in Sharm El-Sheikh in March with the aim of supporting Egypt. The Aswan governorate at investments of Kuwaiti Businessmen offered the problems faced by Kuwaiti investors EGYPT LE 3.3 billion, and on an area of 5,115 in Egypt and called for solving them immediately. The issue of subterranean feddans. watercame underspot after The industrial zone in question will $1 BN KUWAITI INVESTMENTS IN President Abdel Fattah El Sisi include 12 integrated industrial com- ELECTRICITY, GAS PETROLEUM announced the reclamation of plexes and is expected to offer thou- Al-Sisi’s visit to Kuwait opened new investment horizons sands of openings, industry Minister million feddans within the between the two countries, especially that the Kuwaiti investments framework of a plan to reclaim Mounir Fakhry Abdel Nour has said. in Egypt are ranked third at the Arab level. Abdel Nour asserted that the area is four millions feddans during the On his part, Moataz Al-Alfi, head of a Kuwait holding investment coming period, Dr. Hossam rich in phosphate ores, which can be group in Egypt unveiled investment expansion to the tune of $1 billion used to produce fertilizers and chemical Moghazi of Al-Ahram said. products. The Minister went on to say in the coming period via a Kuwaiti fund in the fields of electricity, gas and petroleum. Some people might believe that that the industrial zone has the poten- dependence on subterranean tials to be one of the largest zones in the He pointed out that the number of Egyptians working in Kuwait hit about 500,000 ones. water in the light of the high cost phosphate production and exportation of production thereof is unsuit- field. 6.3% INCREASE IN THE VALUE OF able; however, the use of subter- EGYPT TO RESUME INDUSTRIAL PRODUCTION IN THE SECOND ranean water is a must for many ISSUING BONDS IN reasons: QUARTER (APRIL - JUNE) 2014 Egypt has limited amount of INT’L MARKETS Central Agency for Public Mobilisation and Statistics issued on Egypt will resume issuing bonds River Nile water amid a massive 1/1/2015, the Quarterly Statistical Bulletin for industrial produc- increase of population and shrink- in the international markets under a tion of public / public business and private sector establishments decision taken by the cabinet on ing area of arable land; this could which have more than 25 employees forthe second lead to an increasing gap between Monday. quarter(April/June) 2014. The step will help increase offer and demand in the food sec- Emir of Kuwait during the reception of President Sisi. The most important indicators are: Egyptian resources, said the economic The value of industrial production (excluding petroleum) reached tor. committee chaired by Prime Minister 84.86 billion pounds in the second quarter of 2014 compared to 85.05 Accordingly, Egypt pursued a Ibrahim Mahlab. On his first official visit to Kuwait, President Abdel sisterly Arab countries. He said Kuwait's participation in billion pounds during the first quarter of the same year, a decline of strategy that aims at the reclama- DANAGAS GETS $60M. Fattah El Sisi held a session of talks with Sheikh Sabah the economic conference for supporting Egypt next March 0.22 per cent, while the value of production (the second quarter) 2013 tion of more land in the desert FROM EGYPT Al Ahmed Al Jaber, the Emir of Kuwait on means of will be strong and effective, referring to keenness to take (the same quarter) was 79.82 billion pounds, an increase of 6.32 per areas that constitute around 95% Dana Gas, the Middle East's lead- boosting bilateral relations in all fields and a wide part in carrying out projects that would benefit the cent. (Cont. on page 2) of the total area of land in Egypt. ing regional private sector natural gas range of regional and international issues of common Egyptian people. CAPITAL INVESTMENTS IN ARAB The strategy includes the con- company, has received $60 million concern. ENERGY TO TOP $684B. struction of trade, industry and (Dh220 million) from the Egyptian He said the situation in the Arab region gives rise to con- KUWAITI INVESTORS: SISI VISIT IS tourist hubs as well. Government, TradeArabia News A CLEAR CUT MESSAGE THAT Energy capital investments in the Arab world will total $685 bil- The total number of subter- Service said. cern adding it is time for Egypt to return to play its role. lion over the next five years, according to a new report. He said Egypt's role is important in Iraq and in solving The report, by the Arab Petroleum Investments Corporation ranean water wells is estimated at The payment represents 28 per cent of EGYPT’S ECONOMY HAS 77,000. The Ministry of Water the total overdue receivables of $212 the Syrian crisis, referring to Egypt's attempts to solve the (Apicorp), was presented to officials and delegates at the 10th Arab million. All of this money will be used to Syrian crisis. He said Kuwait is looking forward to attend RECOVERED Energy Conference in Abu Dhabi, said a report in the Gulf Daily News Resources and Irrigation is used to pay for the company’s overdue industry the economic Summit, and the Arab summit in Cairo next Kuwaiti investors have expressed hope that (GDN), TradeArabia News Service said. survey the wells regularly nation- receivables, fund future investment March adding we are preparing for handing over the President Sisi's visit to Kuwait will bear fruits, at the Set against the backdrop of continuing regional turmoil, uncertainty wide to calculate the used quanti- requirements and address operational Presidency of the Arab summit to Egypt, which is capable investment level adding the visit is a message that in many global and regional economies and a declining oil price, ties and record the levels of sub- expenses in Egypt, the company said. of shouldering responsibility for the main causes of the Egypt's economy has recovered following the develop- Apicorp's latest Arab Energy Investment Outlook predicted lower terranean water in these wells. Earlier in 2014, Dana Gas and the Arab World .Answering a question on Arab co-operation ments witnessed by Egypt during the past three years. investment levels compared to the previous year's report. In some areas, like the new and Egyptian Government signed the land- They said there is an ample opportunity for the return of It stated that energy sector investments would have dipped even fur- old al-Farafra, subterranean water mark gas production enhancement for combating terrorism in the light of the lack of an Arab agreement on the term of terrorism. investment in different projects in Egypt which need big ther had it not been for an apparent catch-up effect, particularly evident is 1,000 deep in the wells; this agreement (GPEA) which allows the in the power sector, as well as ever-increasing project costs. company to significantly enhance pro- He said the Kuwaiti cabinet expressed satisfaction with financing. They said the visit will provide a chance for dis- makes the extraction of water duction and gradually recover its out- security, stability and sincere steps on the path towards cussing all the problems faced by businessmen who are Apicorp's report highlighted the growing divide between the GCC from these wells costly (the cost standing receivables in a phased manner progress and prosperity in Egypt, adding he is confident looking for incentives that could help them increase their and rest of the Arab region in terms of their credit ratings, and it pin- of digging one well could hit over a three-year period going forward. that the visit will serve the common interests of the two investments in Egypt. (Cont. on page 2) pointed three primary constraints on energy investments. LE2million). (Cont. on page 2) (Cont. on page 2) (Cont. on page 3) Sidi Kerir Petrochemical Company (Sidpec) Won the Award of Pioneer Works of Achieving Sustainable Development Sidi Kerir Petrochemical Company resent the state of the art in all (Sidpec) has been awarded the prize of fields such as energy, social pioneer works of achieving sustain- responsibility, environment able development for the year 2014 preservation, occupational during the ceremony organised by the safety and health procedures Environmental Compliance & and quality standards that Sustainable Development Office of achieve business excellence the Federation of Egyptian Industries and sustainable development. under the auspices of H.E the Prime Engineer Ahmed Helmy also Minister, Engineer Ibrahim Mahlab. confirmed that there is a con- The ceremony was attended by a tinuous co-operation with the large number of dignitary figures Federation of Egyptian including the Egyptian Minister of Industries in order to enhance State Environment Affairs, Dr. Khaled and disseminate the concept Fahmy, the Head of the Committee of of sustainable development the Environmental Compliance & and social responsibility Sustainable Development Office, Dr. among the industrial compa- Sherif El-Gabaly, the Head of the to motivate the industrial sector to carry out the social service initiatives. nies in addition to implement- Confederation of Danish Industries The competition had approximately 170 competitors representing indus- ing them on the ground to and the Malaysian Ambassador to trial companies working in various lines of industrial activities where the serve the country. It is worth Cairo. During the celebration, results of the competition revealed the wining of 9 companies of large, mentioning that Sidi Kerir Engineer Ahmed Helmy received the medium and small scales and Sidi Kerir Petrochemical Company Petrochemical Company award in his capacity as the Chairman (Sidpec) has been awarded the first ranking position among the large (Sidpec) has won the Arab of Sidi Kerir Petrochemical Company companies. On his part , Engineer Ahmed Helmy indicated that the com- Quality Award last November, (Sidpec). pany is striving for supporting and consolidating the comprehensive for its business excellence and This competition was organised this industrial and sustainable development through working on improving high levels of quality in the year for the first time as a sort of and rationalising the consumption of energy to reduce carbon emissions field of Energy Management incentive granted by the Egyptian in addition to preserving the natural resources and the surroundings in addition to obtaining the government in co-operation with the thereof to support the future generations. In his statement, he asserted certificate of ISO - 50001 for Federation of the Egyptian Industries that the company is sparing no effort in implementing systems that rep- the year 2014. JANUARY 7, 2015

EGYPT PAYS $2.1B. TO FOREIGN EGYPT'S BUDGET DEFICIT HITS INVESTMENT LE107.9B. IN FIVE MONTHS MINISTRY KEEN TO ENERGY FIRMS, STILL OWES $3.1B. Egypt's budget deficit reached LE107.9 billion in the five Egypt paid $2.1 billion of its debt to foreign energy REFORM STATE2 COs months until the end of November 2014 to record 4.6 per companies, Oil Minister Sherif Ismail said, a move that The Investment Ministry is giv- cent of GDP, compared to 3.3 per cent for the same period ing more attention to reforming the could improve the investment climate and ease the coun- a yearearlier, the Ministry of Finance announced in its try's worst energy crisis in decades, Reuters said. state-owned companies, which alto- monthly report, according to Reuters. gether make up 15 per cent of the The payment was the third batch to energy firms in the past The government aims to cut the deficit for the current fiscal year, though the government still owes $3.1 billion, Ismail GDP, Minister Ashraf Salman said. year, expected to end 30 June, to 11 per cent compared to 12.8 The director of public relations and said in a statement. per cent in FY2013/14, Ahram Online said. The statement did not identify the amounts specific com- media at the minister's office, Ayman At the beginning of the current fiscal year, as president el Sherie told MENA that the meeting panies would receive, but the foreign firms owed money by Abdel-Fattah El-Sisi took office, the government cut fuel sub- dealt with means of providing plat- the Egyptian government include British majors BP and BG, sidies by LE44 billion to trim budget deficits, raising pump forms for storing coal and the condi- the UAE's Dana Gas, and Italy's Eni. prices by up to 78 per cent. tions set by the Ministry of Egypt has delayed payments to oil and gas firms as its The planned LE100 billion fuel subsidy bill is expected to Environment for the cement industry. economy has been hammered by almost four years of insta- drop to LE70 billion by the end of the current fiscal year as oil He said that the meeting also took up bility since a popular uprising ousted autocrat Hosni prices dwindle in the international markets, the petroleum min- the latest developments in the con- Mubarak. ister, Sherif Ismail, said last month. tract of Dipco Company at Damietta Arrears began to accumulate before the revolt, but worsen- Emir of Kuwait Sheikh Sabah Al Ahmed Al Jaber presents a cermonial guard in the reception of President Abdel Fattah El Sisi. In November, a decision by OPEC to maintain their produc- Port as well as the amendments intro- ing state finances saw the debts mount to billions of dollars tion levels for oil amid slowing demand and increasing supply duced to the contract of Dubai ports at while the government diverted gas earmarked for export to EGYPT MAIN INDEX STARTS 2015 IN THE GREEN Ein Sokhna, the final studies of the saw oil prices plummet to $56.51 per barrel. second containers station in east Port meet domestic demand. Egypt's bourse started the year in the green on Sunday as the bench- Financial consolidation measures also included raising taxes Mounting debt has hampered investment in the energy sec- Said and the passenger movement mark index inched up 0.18 per cent to close at 8,943 points, according to by 5 per cent on the wealthiest and implementing a new prop- between Egyptian and Saudi ports. tor, though recent moves by the government to address the Ahram Online. erty tax. Plans to introduce Value Added Tax are expected issue has begun to improve energy firms' confidence in For his part, Dahi pointed out to the Non-Arab foreign investors accounted for 40 per cent of market activity, as before the end of the fiscal year. study to develop Sharm el-Sheikh Egypt. The financial monthly for December also shows that Egypt's Egypt made payments of $1.5 billion in December 2013, net-sellers to the tune of LE446 million, while local investors, accounting for port to tum it into a tourist one at the 50 per cent of the market, were net-buyers for LE321 million. GDP grew 6.8 per cent in the three months from July to the end highest level. and $1.4 billion in October 2014 and said in November that it of September 2014 compared to the same period a year earlier. intends to repay all its debt within six months. Market bellwether Commercial International Bank (CIB) rose 0.51 per cent 6,000 TONNES OF British oil major BP has announced a $12 billion invest- to LE49.99. GDF SUEZ TO BREAK GROUND ON ABU BUTANE GAS ARRIVE ment in Egypt over the next five years and the president of In the real estate sector, Palm Hills Development Company slid 0.48 per cent DHABI PLANT IN FEBRUARY BG Egypt said he was confident the government was doing to LE4.11, TMG Holding rose 0.30 per cent to LE9.89, and Six of October GDF Suez, one of the largest desalination plant operators AT SUEZ PORT its best to improve investment prospects. Development and Investment (SODIC) inched up 0.07 per cent to LE14.41. A ship sailed into Zaytait port last in the world, will break ground in February on its billion- Sunday with 6,000 tonnes of lique- 6.3% INCREASE IN THE VALUE OF Orascom Telecom Media and Technology Holding was the most traded stock dollarMirfa gas-fired powerand waterproject, said a in the main index, with a turnover of LE47.9 million, sliding 0.76 per cent to fied butane gas on board, the INDUSTRIAL report. spokesman for the Red Sea Port trade at LE1.31. The project, located 120 km west of the UAE capital Abu Authority said. The ship was com- PRODUCTION IN THE SECOND Global Telecom Holding was up 0.49 per cent to LE4.09. Dhabi, will cost $1.5 billion and generate 1,600 megawatts ing from Yanbu port. A ship also set QUARTER (APRIL - JUNE) 2014 Total turnover of listed stocks recorded a weak LE241 million. (MW) of electricity, with a seawater desalination capacity of sail from Port Tawfiq for Jeddah (Cont. from page 1) The broader EGX70 climbed 0.67 per cent. 52.5 million gallons per day, stated the emirati news agency port with 6,000 tonnes of cargo on Coke activity represents EGYPTIAN POUND STEADY IN OFFICIAL MARKET, Wam, citing a top company official. board, he added. the largest share in the most The new plant, which is likely to start operation in 2017, will Comment GAINS ON BLACK MARKET replace an existing 200 MW plant that caters to local demand important economic activi- The Egyptian pound held steady at a central bank dollar sale on Sunday ties, it had a share of 18.3 in Mirfa, revealed Marie-Ange Debon, the deputy chief execu- SUBTERRANEAN per cent of the total value of and made gains on the black market, according to Reuters. tive and head of international activities at the utility unit Suez WATER HOPE OF industrial production, fol- The bank offered $40 million at the sale and said it had sold $38.7 million at Environnement. AGRICULTURAL lowed by food products a cut-off price of 7.1401 pounds to the dollar, a rate unchanged from its last GDF Suez, the largest shareholder in Suez Environnement, industry by 13.0 per cent, sale. had in July signed a 25-year power and water purchase agree- EXPANSION IN followed by iron & steel The rates at which banks are allowed to trade dollars are determined by the ment with Abu Dhabi Water and Electricity Authority (Adwea). EGYPT industry by 5.6 per cent of results of central bank sales, giving the bank effective control over official Adwea holds an 80 per cent stake in the scheme, with the (Cont. from page 1) the total value of industrial exchange rates. remainder held by the French company. On the other hand, water exists at production. In the unofficial market, a trader said the pound was trading at 7.77 to the Once operational, the plant is expected to provide enough little depths in some other areas, like • The value of production dollar on Sunday, stronger than last week when traders put it at 7.81. electricity for more than one million homes, said the report. Toshka and East Owaynat (less than in Chemicals and fertilizers TRANSPORTATION MINISTRY The Mirfa desalination plant will use reverse osmosis, which 300 meter deep). But in order to get industry reached 8.16 bil- removes salt and algae from seawater by using membranes and that water, Egypt needs to depend on lion pounds in the second MULLS AMENDING DIPCO, DP is cheaper than the other two main types of desalination used in renewable sources of energy in the quarter of 2014 versus 8.49 WORLD CONTRACTS the region, multi-stage flash and multi-effect distillation. light of the dearth of other sources of billion pounds in the first Transportation MinisterHany Dahy, A major player in the region, GDF Suez operates the reverse energy in the country. quarter of 2014, it osmosis plant at the Fujairah One independent water and power Although the development of along with heads of seaport authorities and tourism in Sinai is a must, because decreased by 3.89 per maritime transport sector, will try to modi- plant, the largest of its type in the region. Fujairah One deploys cent.While the value of pro- a hybrid of reverse osmosis and multi-stage flash distillation. tourism in that particular area is an fy the contract of Ain Sokhna port, important source of income in the duction reached 7.38 billion Damietta containerterminal and future WB PRESIDENT TO PARTAKE pounds for the second quar- country, the scarcity of water vision on ports and Suez Canal develop- IN ECONOMIC CONFERENCE resources in the Egyptian peninsula is ter of 2013, it increased by ment, Al-Masry Al-Youm said. Executive Director at the World Bank (WB) Group Karim a challenge to the development plan 10.48 per cent. The minister has also tackled allocating Wissa announced that WB Group President Jim Yong Kim will therein. • The value of production in Non-metallic mineral products arrive in Egypt, leading a big delegation, to partake in the activ- The issue of subterranean water in reached 8.41 billion pounds in the second quarter of 2014 platforms to circulate coal and mulled require- ments by Environment Minister to geographi- ities of the economic conference that would be held next March Egypt should be addressed with a versus 9.03 billion pounds in the first quarter of 2014, it Hany Dahy in Egypt's Sharm el-Sheikh City. methodology different from the way decreased by 6.91 per cent. While the value of production cally distribute coal as per needs of ministries of electricity and industry required for cement This came in press statements that he had issued before leav- we deal with surface water. reached 8.11 billion pounds for the second quarter of 2013 it ing Cairo, heading for Paris. Accordingly, the ministry conduct- increased of 3.68 per cent. manufacturing ed studies to draw a map of the prom- The value of production in iron and steel industry reached The minister also reviewed developments with the contract of Damietta British COS To Take Part In Economic Conference ising subterranean water reserves in 9.48 billion pounds in the second quarter of 2014 versus International Ports Company (DIPCO) and DP World. He is also considering The Egyptian British Chamber of Commerce in London head order to start the application of the 10.92 billion pounds in the first quarter of 2013, it decreased studies on establishing cargo station in Safaga port to serve Upper Egypt and Taher El Sherif asserted that there is high turn out for attending first phase of the agricultural plan by 13.14 per cent .While the value of production reached final studies on founding another container terminal in East Port Said port. Egypt's economic conference on the part of the British compa- included in the president's electoral 10.31 billion pounds for the second quarter of 2013, it Dahy also indicated a study to turn Sharm al-Sheikh seaport into a tourist nies, especially in the fields of energy, alternative energy, infra- platform; this phase includes the decreased by 8.06 per cent. one and establishing fishing port in Tor city, South Sinai. structure and logistic areas. reclamation of one million feddans. DANA GAS GETS $60M. FROM EGYPT (Cont. from page 1) PRESIDENT SISI A.R.E. FOREIGN TRADE MONTHLY SUMMARY (May 2014) The GPEAagreement allows investments to be made in an AND EMIR OF THE MOST IMPORTANT EXPORTS AND IMPORTS OF FOOD COMMODITIES important development programme to eventually increase produc- KUWAIT DISCUSS ACCORDING TO COMMODITIES IN MAY 2014 tion from current levels of around 40,000 BOEPD from the com- Table No. 6B Value in 000 LE (Cont. From last week) pany’s development leases in the Nile Delta. BILATERAL Under the GPEA, Dana Gas will undertake a long term staged RELATIONS, ISSUES work programme over a seven-year period with project work Commodities May May Change Percentage Jan./May Change Percentage expected to start in the next few months. The first export sales of OF COMMON incremental volumes of condensate will follow thereafter. CONCERN TO THE 2014 2013 2014 2013 Estimated incremental production during the period will be 270 5.1- billion cubic feet of natural gas, 8 to 9 million barrels of conden- REGION Total Exports 18566983 17254696 1312287 7.6 84636224 89158894 4522670- (Cont. from page 1) Total exports of Food sate and around 450,000 tonnes of LPG. Peak production is commodities, out of Which : 3868775 3715375 153400 4.1 15862909 15579562 283347 1.8 expected to occur in 2017 with incremental daily production of They also said the visit will Fresh greepe 572840 396596 176244 44.4 573987 398688 175299 44.0 approximately 160 MMscf gas and 5,600 barrels of condensate. provide a chance for Egyptian Fresh Potatoes 388173 133738 254435 190.2 1733533 1002014 731519 73.0 During the discussions that Dana Gas has continued to have businessmen to enter into Fresh Orange 373136 317464 55672 17.5 2487048 2823409 336361- 11.9- with the Egyptian authorities to resolve the issue of its outstanding Chocklates 295194 5968 289226 4846.4 371096 46519 324577 697.7 payments, it has already been able to increase production for the new partnerships with their Fresh or chilled Onions 208032 540394 332363- 61.5- 551295 827273 275978- 33.4- benefit of the Egyptian economy and its people. Dana Gas Egypt’s Kuwaiti counterparts. Heated cheese 118047 109376 8671 7.9 651291 610464 40827 6.7 gas, LPG, condensate and crude oil production averaged 40,000 Hussein AI Kharafy, the Meal Sugar cane 113482 183974 70492- 38.3- 386627 490251 103624- 21.1- barrels of oil equivalent per day in 2014, which is an 8 per cent Head of the Federation of Tobacco and hair tobacco 89143 83065 6078 7.3 386243 322939 63304 19.6 increase over 2013 average production, it said. Repeated Sugarcane 75555 175365 99810- 56.9- 377498 571593 194095- 34.0- Kuwaiti Industries said the Fresh potatoes 58321 43929 14392 32.7 391661 211770 179891 84.9 Patrick Allman-Ward, chief executive officer of Dana Gas, said: visit reflects the depth of rela- “We would like to thank the Egyptian Government for making this Relative Importance of tions between Egypt and exports of agricultural payment. We are also delighted to have concluded the Gas commodities 20.8% 21.5% 0.7-% 3.3-% 18.7% 17.5% 1.2% 6.9% Production Enhancement Agreement and are working closely with Kuwait, adding that Kuwaiti the authorities to accelerate the implementation of the GPEA in investments top Arab invest- Total Imports 35933615 41583023 5649408- 13.6- 180924795 200479314 19554519- 9.8- order to fast-track enhanced production and the payment of the ments. He also said they hope remaining outstanding receivables as quickly as possible going that the visit would bring Total imports of Food forward. Dana Gas is now preparing for the startup of the project about mechanisms for pre- commodities, out of Which : 7893221 6804229 1088992 16.0 37869892 36617853 1252039 3.4 and is in the process of securing materials and drilling rigs". Dana Non-seed wheat 1840320 705659 1134661 160.8 8949012 2766558 6182454 223.5 Gas is among the most active oil and gas companies and is the serving the rights of Investors Non-seed Yellow corn 1426765 1167143 259622 22.2 5379791 5006184 373607 7.5 in Egypt. Without bones of bovine sixth largest gas producer in Egypt. The company has invested 2826516 1107403 64.4 around $2 billion in Egypt to date, making it the GCC’s largest Al Kharafy said there are animals, frozen 502687 436283 66404 15.2 1719113 Sunflower seed oil 400317 325198 75119 23.1 1594437 1671595 77158- 4.6- investor in the oil and gas sector in the country. some problems which face Meal Soybeans 350103 192740 157363 81.6 1723840 1031605 692235 67.1 Dana Gas was also recently awarded the North El Salhiya Kuwaiti investors as the pri- raw sugar cane 277666 157647 120019 76.0 647447 961830 314383 32.7- (Block 1) and El Matariya (Block 3) onshore concessions in the vate sector searches for its Black tea 216452 218411 1959- 0.9- 1251764 941343 310421 33.0 Nile Delta as part of the 2014 EGAS bidding round held recently own interests, He added that Frozen macreal fish 166738 60436 106302 175.9 558736 147786 410950 278.1 in Egypt. The company will operate the Block 1 concession area Milk 166569 155087 11482 7.4 692733 626384 66349 10.6 on a 100 per cent basis. It is expected that exploration success and for this reason rights should Chicken meat 135145 123184 11961 9.7 416694 288836 127813 44.3 future production from conventional gas reservoirs in the Block, be preserved through con- utilising Dana Gas’s existing infrastructure, has the potential to tracts as investors are search- Relative Importance of extend the Company's highly successful gas production business Imports of agricultural ing for profits and hence the 34.2% 20.9% 18.3% 2.6% 14.2% onshore the Nile Delta. proper environment should be commodities 22.0% 16.4% 5.6% provided. Source : The Central Agency for Public Mobilisation and Statisties. (CAPMAS) (To Be Cont.)

THE MIDDLE EAST OBSERVER EVERY WEDNESDAY MORNING ECONOMIC, PUBLISHED TO COVER THE MIDDLE EAST, ARAB GULF AND AFRICAN MARKETS Head Office and Advertisements : 41, Sherif Street, Cairo, Egypt Tel.: 23939732 - 23926919 Fax : 23939732 - 27485844 E-mails Address: [email protected] - [email protected] [email protected] - [email protected] Web. www.meobserver.org CCR.: 113389. Printed at Societe Orientale de Publicite (S.O.P.) Cairo - Egypt The Publisher : AHMED FODA Chief Editor : H.A. RAOUF Economic Counsellors : YASMIN FODA MAHMOUD FODA N.M.M. RASHED Dir. of Public Relations : KAMAL MOKHTAR Annual Subscriptions ; Egypt : LE275 - Aborad : $420 - £295 From Al-Ahram JANUARY 7, 2015

JEDDAH SPENDS L&T WINS OMAN AIRPORT ARAMCO HALTS RAS $798M ON CONSTRUCTION CONTRACT TANURA CLEAN INFRASTRUCTURE L&T Oman, a subsidiary of India-based technolo- 3 gy, engineering, construction and manufacturing FUELS PROJECT PROJECTS company Larsen & Toubro, has won a major order State oil giant Saudi Aramco The total value of civic from Oman's Ministry of Transport and has suspended plans to build a projects in Jeddah during Communications for the construction of a new pas- $2 billion clean fuels plant at its the last year has been esti- sengerterminal and otherkey facilities at Duqm largest oil refinery in Ras mated at SR3 billion Airport in the country, according to TradeArabia Tanura, three industry sources ($798.9 million), including News Service. said, according to Reuters. establishment and main- The scope of work includes constructing a modern The energy project appears to tenance of bridges, under- passenger terminal building with a capacity to handle be one of the first suspended in passes, asphalting, repair 500,000 passengers per annum, a 37-m-high air traffic Saudi Arabia in response to the of pavements and light- control tower, and an air cargo terminal equipped to halving of the oil price in the last handle 25,000 tonnes of cargo per annum, said a state- six months. ing, according to a report. The Ras Tanura clean fuels "These projects have had ment from L&T. The company also bagged an order from Oman project, including a naphtha a deep positive impact on hydrotreater, was to be part of a the development of Tourism Development Company (Omran), the sul- tanate’s leading tourism and mega real-estate developer, second phase of upgrades to Jeddah's infrastructure, Aramco's refineries, and was especially in the corniche for the turnkey construction of a four-star hotel at Oman Exhibition and Convention Centre (OECC). originally due to go on stream in where these projects have 2016. opened new parks,” Hani With this win, the total orders clinched by the con- struction giant for this month both in the Indian and "They withdrew the bidding," Abu Ras, Mayor of Jeddah, international markets has hit $398 million. said one source familiar with the was quoted as saying, in the In its domestic market, L&Tsaid it has secured a matter, adding that no reason was Arab News report. major order from a leading developer for the design and given for the move. “Anumber of new construction of residential apartments in the city of Another source said: "They bridges and underpasses Bangalore in the Indian state of Karnataka. The scope of indicated they will postpone the were also built to develop works includes civil, structural, mechanical, electrical, project by a year and rebid." the city further as it is the plumbing and finishing works. He told Reuters that Aramco gateway to the two holy Another order has been received from a reputed client was evaluating its projects fol- cities - Makkah and for the construction of 10 high-end residential towers in lowing the fall in oil prices to Madinah. Jeddah can now Mumbai. The scope includes civil, structure and associ- determine which should have pri- ated works, it added. ority. attract more visitors and Aramco's chief executive, tourists,” he added. Investors Follow Market Shares in Abu Dhabi Stock Exchange. Khalid Al-Falih, said in Meanwhile, the general November that the cyclical director of administrative moves of oil markets would not and financial affairs at the EMAAR ANNOUNCES MAJOR ORGANISATIONAL REVAMP Emaar Properties, a major Dubai-based global real estate developer, has announced a new organisational struc- take Saudi Aramco's long-term Jeddah municipality, Ali corporate strategy off track. Al-Sulami, said that all ture focusing on timely delivery of projects and world class customer service. Mohamed Alabbar, chairman of Emaar Properties, said the new organisational structure draws on the Dubai Plan 2021 Company officials were not road projects cost over SR1 announced by Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, available to comment. billion, while the total cost according to TradeArabia News Service. Aramco invited bidders in 2013 for development projects “As Dubai builds its future as a smart, sustainable city and a preferred place to live, work and visit, Emaar is creating a for the Ras Tanura project but was SR990 million. fresh template for its sustained growth and value creation. In today’s maturing property market, our priority is to manage later decided to hold another The development, super- and deliver our projects efficiently through our team of experienced professionals. They are supported by a new cadre of round as proposals were higher vision and other related young professionals, led by Emaar’s core values of developing quality-driven projects, timely delivery and excellent cus- than its budget. The company studies cost the government tomer service while further enhancing the value of our masterplannned communities.” also cancelled one of the pack- SR300 million. Alabbar added that Emaar, under its new organisational structure, will continue to develop prime real estate assets in its ages for paraxylene production The Jeddah municipality home-market of Dubai and other high-growth international markets, as well as strengthen its competencies in shopping malls after finding it was not economi- said it is also planing to and retail, and hospitality and leisure. NEW DEAL FOR RESIDENTIAL cally feasible. construct five new intersec- “Among the key strategic directions defined by the new organisational structure are our concerted efforts to strengthen DEVELOPMENT FUND The new round of bidding was tions on Prince Majed Road Project Management in Dubai. A seasoned professional has been appointed to head Emaar’s Project Planning & SEDCO Development, a major Jeddah-based real due to close in mid-November but at a cost of SR1 billion to Programming Department for developing appropriate project management programmes and ensuring the timely completion estate developerand a subsidiary of SEDCO was postponed before the deci- and on-schedule delivery of Emaar’s projects,” he said. Holding Group, signed with Dar Al-Wessal, a com- sion was taken to delay the proj- ease traffic congestion, ect, one of the sources said. Mohamed Al-Buqami, Alabbar added that in today’s age of incredible advancements in information technology and the enormous reach of social pany specialised in marketing residential projects, to media networks, it is essential for any company to analyse customer’s behaviour on regular basis and implement proactive market its residential units. CAPITAL spokesman of the munici- strategies. pality, was quoted as say- These units pertain to the AlAhli SEDCO Residential “As part of this, Emaar has established a Customer Relationship Management department, which will be responsible for Development Fund and are located in the Salamah INVESTMENTS IN ing. developing customer loyalty to the company’s products and services by regularly analysing internal and market data.” District 2 in Jeddah. ARAB ENERGY TO There would also be Noel Madigan, with over 32 years of experience in Australia, Indonesia and the Middle East, will head the project plan- With a wide expertise in the Saudi real estate market, other projects to build a TOP $684B. ning and programming department reporting to the managing director. Khalid Dalil has been appointed as head of the cus- SEDCO Development is executing this project on a (Cont. from page 1) highway along the same tomer relationship management department. 25.934 sq m plot of land, which was previously These were the unrelenting cost route, linked to the Jeddah- Fred Durie, formerly CEO of Emaar International, will continue to serve on the boards of Emaar joint ventures in Jordan acquired by the fund through SEDCO development, the of project inflation; the paradoxical Laith Highway. and India. Robert Booth, who has been serving as chief executive officer – Emaar Real Estate Dubai, will continue to work main developer. scarcity of fuel and feedstock such The intersections would with the company in an advisory capacity to the Emaar chairman. This project consists of approximately 372 residential as natural gas and ethane; and the link with Old Makkah “The organisational structure highlights our strategy of honouring merit and encouraging talented professionals to join us units with different dimensions thus fulfilling the rising accessibility of funding, which will Road, Al-Falah Bridge, in our ambitious growth journey,” said Alabbar. “Our iconic projects in Dubai are the result of global collaborations with demand in the sector of residential units in Jeddah. be exacerbated if oil prices remain Television Street, King some of the world’s brightest talents.” According to SEDCO Development Company CEO low and below national break-even Faisal Street, South With assets of Dh64.93 billion ($17.68 billion) as of 2013 end and an impressive land bank of over 226 million sq m in Khaled Jamjoom, the distinguishing factor of this proj- levels over the long term. Corniche and Al-Khamra. It high-growth international markets, Emaar has launched several new major projects this year, which received strong investor ect is its proximity to key points in Jeddah, such as "The energy scene is changing response. Madinah Road, Heraa and Quraish streets, providing rapidly but we expect oil prices to would take the form of a remain depressed for some time," ring road and run parallel to ADCB SIGNS $81M FUNDING DEAL FOR PORT easy access as well as its distinct design for the project, Abu Dhabi Commercial Bank (ADCB) announced today a financing agreement with Abu Dhabi Terminals (ADT) fulfilling all requirements for residential environments Apicorp senior consultant and Al-Haramain Road, said the author of the outlook Ali Aissaoui report. for the expansion of the Khalifa Port Container Terminal (KPCT), the region’s first semi-automated and most tech- aligned with the community’s privacy. said. Contractors are due to nologically advanced container terminal, TradeArabia News Service said. This project is considered one of the typical residen- "The general macroeconomic begin work on the projects The Dh300-million ($81.65 million) agreement marks the first long-term finance solution for ADT, and extends ADCB’s tial projects targeting those with middle to upper and energy investment climate is relationship with the terminal operator to include its complete suite of products and services. ADCB will act as the sole income home buyer especially in terms of what is already impacting many Arab coun- in the next few weeks, it provider of cash management, interest rate and lending services to support ADT’s ambitious growth strategy and contribute added. offered in the real estate market when it comes to tries' ability to access the necessary to its local and global competitiveness. design, planning and the distribution of parks and green funding for investment in energy Colin Fraser, head of wholesale banking at ADCB, said: “ADCB is committed to playing an integral role in the develop- areas. related projects, but the lower price ment of the UAE’s critical infrastructure and is proud to be the key relationship bank for NCB Capital has previously announced that this of oil will likely be an additional Abu Dhabi Terminals. This facility exemplifies the excellent, strategic engagement we have close-end investment fund aims to develop the existing constraint on access to finance. GOVERNMENT OF ARAB REPUBLIC OF EGYPT with ADT. We look forward to supporting the company in the future.” capital and achieve yearly internal revenue for investors "While we are not a policy mak- MINISTRY OF ELECTRICITY AND ADCB's facilities will be utilised primarily for capital expenditure, corporate services, worth 10 per cent. ing organisation, given the invest- RENEWABLE ENERGY and the re-financing of an existing short-term bridge loan. The deal is one of many initia- ment outlook and current con- EGYPTIAN ELECTRICITY HOLDING tives undertaken by ADCB to encourage and support the socio-economic progress of Abu straints, we would propose steps are Dhabi through the emirate’s strategic development goals. In line with Abu Dhabi’s vision taken by the relevant authorities to COMPANY for 2030, ADCB is setting new banking services standards for the country’s future and improve the overarching invest- AL SHABAB POWER PROJECT investing in its people, sectors and long-term policies. ment climate. PHASE II Martijn Van De Linde, CEO of Abu Dhabi Terminals, said: “We are extremely pleased "They should consider methods to sign this long-term agreement with ADCB, a key partner for Abu Dhabi Terminals’ future to reduce the cost of projects and CONVERTING EXISTING SIMPLE the impact of inflation, address the CYCLE TO COMBINED CYCLE growth strategy. Khalifa Port Container Terminal has witnessed a 20 per cent year-on-year increase in containers handled since its opening in December 2012. This important finan- feedstock scarcity paradox, and Electrical Equipment / Instrument cial partnership with ADCB allows us to invest in the required expansion to support the eco- promote the full sweep of equity Installation nomic growth of the UAE and at the same time provide our customers with fast and effi- and debt financing options avail- cient services.” able to the sector," he added. SPECIFIC PROCUREMENT NOTICE (72) Apicorp, an investment company BAHRAIN’S ENTREPRENEURIAL FIRMS OPTIMISTIC ON Khaled Jamjoum, CEO of SEDCO Development was established by 10 member The Egyptian Electricity Holding' Company (EEHC) has GROWTH Company with Ziad AlAkil, CEO of Dar Al-Wessal. states of the Organisation of Arab secured a loan from the European Bank for Reconstruction Petroleum Exporting Countries and Development (hereinafter referred to as EBRD) Local entrepreneurial firms in Bahrain project an optimistic outlook with profit margins and the numberof full-time employees are expected to increase overthe (OAPEC) in 1975, and a sponsor of towards the cost of Al Shabab Power Project Phase II. EXPERTS FROM 170 NATIONS FOR the 10th Arab Energy Conference, The East Delta Electricity Production Company, a whol- forthcoming months, TradeArabia News Service said. This is according to the latest survey results from the Entrepreneurs' Organisation's (EO) ABU DHABI ENERGY SUMMIT participated in sessions with other ly owned subsidiary of EEHC hereinafter called "Owner", More than 32,000 people from 170 countries are industry leaders to discuss energy Global Entrepreneur Indicator research project report, said a report in the Gulf Daily News sector developments under the cen- now invites sealed Tenders from eligible Tenderers. for the (GDN). The results reveal renewed optimism in the local market," EO Bahrain chapter expected to participate in the upcoming World Future Electrical Equipment / Instrument Installation contract Energy Summit (WFES) in Abu Dhabi, UAE, a key tral theme of "Energy and Arab Co- president Safa Sharif said. operation". package to be funded from part of the proceeds of the loan. The survey shows that in the past six months, 70 per cent of EO Bahrain members have platform forclean energy investment opportunities, The contract package includes all works related to, includ- TradeArabia News Service said. "Next year will see Apicorp cele- hired more full-time employees and 80 per cent predict they will continue hiring permanent brate its 40th anniversary," Apicorp ing but not limited to for designing, engineering, fabricat- employees over the coming six months. Now in its eighth year, WFES takes place during Abu Dhabi Sustainability Week (ADSW), running from January chief executive and general manag- ing, furnishing, testing, delivering to Site, receiving, stor- It adds that 85 per cent of EO Bahrain members expect a growth of business revenue er Ahmed Al Nuaimi said. ing, installing, training, start-up, commissioning, putting. while 75 per cent predict a rise in net profit in the following six months. 17 to 24 at Abu Dhabi National Exhibition Centre. Hosted by Masdar, Abu Dhabi's renewable energy com- "Over the past four decades, our into successful operation, maintaining until Operation The current proclivity to start a new business in Bahrain is 80 per cent. efficient and effective equity Acceptance Certificate (OAC), and preparing the detailed EO Bahrain finance chair Khalid Alshakrani said the numbers indicate that businesses pany, the ADSW is a yearly platform that addresses the interconnected challenges of energy and water security, cli- investments and loans have helped drawings and other technical documents and as-built docu- expect to see an expansion in their activity over the next six months. to develop the energy industry in ments of all the materials, equipment, and all required elec- This would encourage business owners to increase employment and short-term spending, mate risk and sustainable development. the Middle East and North Africa, The WFES provides participants with as an unmatched trical, instrumentation, and civil works described for Al he pointed out. enabling this vital sector to make a platform to meet with key international players from indus- significant contribution to econom- Shabab Power Project Phase II. The planned delivery/con- try, technology, finance and government to drive actionable struction period is 693 Days from the commencement of the ic growth and prosperity for the solutions to the world's energy challenges, according to Arab people." Contract.. industry leaders. The Tender Document for the above Package available at "The Arab Energy Conference "WFES has proven to be the most important energy con- has become an important platform EDEPC's offices on December 30, 2014. Tender ference in the Middle East for cultivating sustainable ener- for OAPEC members and energy Documents may be obtained from the address below upon gy solutions that help countries to lower their carbon foot- sector experts to gather and discuss payment of a non-refundable fee of USD 1,000 payable at prints," said a representative of the Abu Dhabi National Oil the current issues and opportunities the National Bank of Egypt (Al Ahly Bank), Ismailia Company (Adnoc), a principal sponsor of WFES. facing the industry. Branch, Account No. 11000441395. "WFES generates collaboration among industry leaders "With uncertainty around hydro- East Delta Electricity Production Company to encourage the commercialisation of energy-efficient carbon futures, many in the region Shebeen El Kom Street, Araishia Misr, Ismailia, Egypt projects throughout the region," the Adnoc representative are increasingly looking at alterna- Attn: Head of Procurement Sector . added. tive sources of energy. Tel No.: (20-84) 3371906 Fax No.: (20-84) 3204590 Maria van der Hoeven, executive director of the "Apicorp was a regional pioneer All Tenders must be accompanied by a Tender security of International Energy Agency (IEA) who will chair a panel in financing renewables and is now USD 400.000 and must be delivered to EDEPC's offices by on the energy opportunities in Sub-Saharan Africa, said: helping investors make smart "WFES is a platform to stimulate progress in helping the choices as countries in the region March 1, 2015 at 12:00 (noon) In two sealed envelopes. increase their energy security. Envelope A (Technical Envelope) and B (Pricing countries of Sub-Saharan Africa realise their goals in sus- tainable energy. As an event that brings together the world's "We had a lot of interest at this Envelope) of the Tenders will be opened on the same day year's conference in our experience Immediately thereafter, in the presence of Tenderers' repre- leading minds to discuss and implement innovative energy solutions, WFES is an event with far-reaching internation- in this growth area," he added. sentative, who choose to attend, at East Delta. al significance." Discussions at the 10th Arab Electricity Production Company Sami Khoreibi, CEO of UAE-based solar developer Energy Conference covered current Shebeen El Kom Street, Arishia Misr, Ismailia, Egypt Enviromena Power Systems, said: "WFES is the most developments in the oil and natural gas markets and their implications Prospective tenderers may obtain further information important show in the region for meeting with partners, from the following office: for Arab countries, and investment investors, and governments from all across the region and requirements to develop the energy Power Generation Engineering and Services Company the globe, and to get an upfront look at the innovations (PGESCo) sector in Arab countries highlight- driving renewable energy at both the project and technolo- ing sustainable development. 41 Al-Salam Avenue, Central District, New Cairo, gy levels.” Bahrain's sovereign wealth fund Egypt The large solar turnout for WFES 2015 also will include is a stakeholder in Apicorp, which Attention: Project Procurement Manager From Arab News US-based First Solar, which has more than 8 gigawatts of also operates an offshore banking Tel. No.: 20-2-2618-5829 Fax. No.: 20-2-2617-6519 installed capacity globally. branch in the kingdom. JANUARY 7, 2015

Business Opportunities 4 (Tenders Prepared by Our Staff) A.R.E. Texts, Laws and Regulations - Maintenance and supply *** forming all works related Bid Bond : LE 50 000 of Boilers Equipment - Supply of 40 000 - 50 000 to, including but not lim- Tel. Hot Line 125 Official Journal- Issue No. 46 (Supplement) - Nos. 3&4 of Damietta tonnes of Journals paper 45 ited to, designing fabri- Client : Potable water and Dated the 13 November 2014 Electricity station. GM/M2 Rolles, cating, furnishing, deliv- Health Sanitary - El-Menia Decree-Law of the President of the Arab Republic of Egypt Due date : 2.2.2015 Due date : 13.1.2015 ering to site, storing, *** No. 141 of the Year 2014 Booklet : LE 50 000 Booklet : LE 2000 installing, training, test- REP. OF MALDIVES Bid Bond : LE 1300 000 Client : Ministry of ing, starting up, commis- - Tenderfor Organizing the Activity of Microfinance Client : East Delta Co. for Information - sioning and placing into (Cont. from last week) Reconstruction of Article (8) Electricity Production. Fax : 25757162 successful operation and Harbours Project (Phase The company shall get the approval of the Authority on the activities, services, products and instruments *** *** maintaining all equip- 11) for more Information it intends to deal in and the types of guarantees associated therewith. It shall also disclose to its clients in - Supply of Agricultural - Implementation and ment and systems within Ministry of Finance and each contract the detailed finance services or products, the finance burdens, the prices of the other servic- Fertilizer. Operation of Five High this Tender Package until Treasury, es it provides, the transaction risks that the clients may be exposed to and their current and future obliga- Due date : 13.1.2015 Quality Bus Lines in 6th Taking OverandAmeenee Magu, Male 20 - tions in accordance with the disclosure rules laid down by the board of directors of the Authority. 03 The company shall not open branches thereof, merge in or integrate with another entity, cease the activ- Booklet : LE 1000 of Octoberand Sheikh Acceptance Certificate ity, liquidate its assets or the major part thereof or transfer its credit portfolio without obtaining the prior Client : El-Salheia Co. for Zayed Cities (TOAC) is issued, prepar- Client : Rep. of Maldives written approval of the Authority in accordance with the conditions and procedures laid down by the board Investment - Salheia City. Due date : 31.3.2015 ing of detailed drawing, Email : tender@finance- of directors of the Authority. *** Booklet : LE 5000 Technical documents and gov.mv All licensed companies shall pay the control and supervision costs to the Authority at the rate of half - Supply, Erection and Bid Bond : LE 200 000. as-built documents for *** per thousand of the average balance of the finance provided to the clients of the company. Such costs shall maintenance of Smart The winning bidder shall the Mechanical ARAB TENDERS be calculated and paid every quarter. ABU DHABI Article (9) Meter in October City. increase this amount to Equipment/Pipe The licensed company shall prepare financial and quarterly statements in accordance with the Egyptian Due date : 23.2.2015 LE 2 000 000 a Installation forAl-- Hire of Fast support and Accounting" Standards and subject to the rules laid down by the Authority in this respect. 'These state- Booklet : LE 25 000 Performance Bond. Shabab PowerProject Intervention vessel. ments shall be audited in accordance with the Egyptian Auditing Standards and subject to the audit man- Bid Bond : LE 600 000 Client : New Urban Phase II. TheDue date : 7.1.2015 ual issued by the Authority. The accounts of the company shall be audited by one auditor at least from Client : Ministry ofCommunities Authority. delivery/construction Bid Bobd : US$ 180 000 among the auditors whose names are recorded in the register created for that purpose by the Authority. The board of directors of the Authority shall lay down the conditions and provisions of recording and deleting Electricity (South Cairo *** period is 695 Days from Client : Dolphin Energy auditors ' in and from such register. Electricity Co. - Cairo. Supply of : the contract execution www.dolphinenergy.com Article (10) *** 6 Transport Cars (Double date. *** The following shall be considered deductible costs upon the determination of the net taxable income - Supply of Student Books Cabin) 3/4 to one tonne Booklet : US$ 1,000 to QATAR in accordance with the provisions of the Income Tax Law referred to: (English Language) for Bid Bond : 50 000 National Bank of Egypt (El 1. Debit interests paid by the company on loans and the other means of finance; - The Arab Qatari Co. for 2. The provisions that the company calculates on the doubtful finance in accordance with the standards 2014 - 2015. 5 Transport Cars 10 Ahly Bank), IsmaillaPoultry Production,laid down by the Authority and what is acknowledged by the auditor of the company; Due date : 13.1.2015 tonnes Branch. announces its desire to 3. The debts that the board of directors of the company decides to write off based on the auditor's report Booklet : LE 200 Bid Bond : LE 100 000 Bid Bond : US$ 1,000,000 establish the 4th stage of in excess of the provisions referred to after taking serious actions to refund them in accordance with the controls and procedures laid down by the Authority. Bid Bond : LE 7000 5 Transport Cars (3 - 5 Client : Egyptianits project in Shamal Rd. Client : Cairo University - tonnes Electricity Holding The loan balances and 'all types of finance provided by the company to its clients in accordance with Exit# 32, Um Qam Area, the provisions of this Law shall be exempted from the stamp duty and the other taxes and duties. Faculty of Commerce. Bid Bond : LE 50 000 Company. Article (11) *** 15 Van Cars *** Qatar. The said project includes all the civil To stabilize the market and protect the rights of dealers with the company or in case the company is - Supply of Different Bid Bond : LE 20 000 - Tender for preparation exposed to financial situations that may impact its financial position,the board of directors of the Authority Kinds of Chemicals, Booklet : LE 300 each ten- and erection of 1000 ATM works, electro mechanic may oblige the company to increase its paid-up capital or the funds allocated for practicing the activity or Due date : 11.1.2015 der Machines (500 Machines and equipment necessary its financial solvency rate in accordance with a specific schedule. Bid Bond : LE 41 000 Client : Eastern Co. every yearforBranches to construct, erect and In case the company violates the provisions of this Law or the decrees issued in implementation there- guarantee the followings : of or if it loses one of the license conditions or carries out what may threaten the stability of the market or Client : Petroleum 6 October City. of the Bank in all the the interests of its shareholders or members or the parties dealing therewith, ' the board may also take one Researches Institute, *** Arab Rep. of Egypt 1 - Buildings of the poul- or more of the following measures: Nasr City - Cairo. - Tenderforsupply, Client : Banque Misr - try houses. 1. Warn the company to remove the violation within the period and according to the conditions set forth *** Installation supervision , Cairo - Egypt. 2 - Extension of the in the warning; - Supply of a Crane on and startup 1500 TPD *** hatchery building. 2. Request its board chairman to call for a meeting of the board or general assembly to consider the vio- lations ascribed thereto and take the necessary action towards removing them; Chain 200 tonnes from Corn Wet Milling and - Supply and installation 3 - Extension of the 3. Prevent it from practicing all or some of the licensed activities for a certain period or prevent it from the European Union,1000 TPD fructose. of 3 feeding Pumps and slaughterhouse building. dealing with new clients; USA, Japan Countries, Due date : 27.1.2015 its parts forAbu Qir 4 - The water tanks of the 4. Dissolve the board of directors of the company and appoint an authorized agent to manage it till the Due date : 20.1.2015 Booklet : LE 30 000 Electricity station waste watertreatment appointment of a new board by means of the prescribed legal instrument; Booklet : LE 300 Bid Bond : LE 1 000 000 Booklet : LE 10 000 5. Issue a resolution to merge the company into another one provided that the merging company accepts olant. that; Bid Bond : LE 500 000 Client : Arab Sweetners Bid Bond : LE 272 000 5 - Various Civil works 6. Cancel the license of practicing some or all of the licensed activities. Client : El-Nasr Co. for Co. (Naeem Holding) Client : West Delta for and accessories. The two measures stipulated in Items (1 and 2) may be taken by the chairman of the Authority. He may Building and Construction, Alex. - Cairo Road. Electricity Production - Tender documents can be also take any of the measures stipulated in Item (3) of this article if the threat referred to may result in Tel. : 22716317. *** Alex. irreparable damage for a maximum period of one month or pending the issue is presented to the board of *** - The East Delta *** obtained against a non- directors of the Authority, whichever is earlier. - Import of 3 Packing Electricity Production- Replacement, Renewal refundable amount of Article (12) QR. (4000), from A separate unit of special nature shall be established in the Egyptian Financial Supervisory Authority to Machines forthe coverof Company, a whollyand construction of control the activity of micro finance by the non-governmental organizations. It shall have a board of Oil botels, owned subsidiary ofWaterlines fortheDue date : 31.1.2015 trustees on which the ministries and entities concerned shall be represented. The formation of such board Booklet : LE 150 EEHC hereinaftercalled Industrial zones in (Al- Client : Arab Qatari Co. of trustees and the determination of the financial treatment of its members shall take place by a resolution Client : Oils Extracts Co. - “Owner”, now invites Matahra - El-Menia) for Poultry Production. of the board of directors of the Authority, and it shall assume the responsibilities set forth in this Law. Alex. sealed Tenders forper- Booklet : LE 5000 *** The board of directors of the Authority shall issue a resolution with regard to the articles of association, the financial, administrative and personnel regulations as well as the organizational structure of the unit without being restricted to the systems and rules in force in the government, the public sector and the pub- lic business sector. Economic & Social Indicators Bulletin of the Arab Republic of Egypt Article (13) The Unit shall be responsible for organizing, controlling and monitoring the activity of micro finance. It shall particularly carry out the following: 1. Laying down the conditions for obtaining the license of practicing the activity of micro finance by the non-governmental organizations; 2. Setting the rules and standards required for practicing the activity referred to by the non-governmen- tal organizations and managing the risks associated therewith; 3. Laying down the controls of the contribution of the non-governmental organizations to the compa- nies working in the field of microfinance; 4. Obtaining the data and information about that activity practiced by the non-governmental organiza- tions, developing the studies associated therewith and issuing the relevant reports and statistics; 5. Monitoring the performance of the non-governmental organizations practicing this activity and tak- ing the necessary action to ensure their compliance with the provisions of this Law and the rules and stan- dards laid down by the Unit; 6. Setting the rules of inspecting and controlling the non-governmental organizations in the field of practicing the activity of microfinance; 7. Presenting the follow-up reports to the chairman of the Authority including the necessary recommen- dations with regard to the non-governmental organizations which violate the provisions of this Law or fail to abide by the rules and standards of practicing the activity; 8. Coordinating with the entities concerned thus contributing to the development of the activity of micro finance and management of the risks associated therewith and working on having similar rules and con- trols for practicing the activity among the companies and the non-governmental organizations practicing such activity. Article (14) All companies and non-governmental organizations subject to the provisions of this Law shall provide the Authority or Unit, as the case may be, with the required reports, statistics or information related to practicing the activity of micro finance. Article (15) The non-governmental organizations practicing the activity of micro finance shall keep accounts and prepare separate financial statements for this activity in accordance with the standards and conditions set forth in Article (9) of this Law. Article (16) The boards of directors of all licensed companies or non-governmental organizations practicing the activity of microfinance , shall determine the cost of finance provided to their clients without being restricted to the limits set forth in any other law. Article (17) The transactions concluded by the companies and the non-governmental organizations practicing the activity of micro finance with their clients shall be considered commercial activities. In this respect, the provisions of the Trade Law shall apply thereto. (To be cont.)

Banque Du Caire FOREIGN EXCHANGE RATES Treasury Department IN EGP POUNDS DATED JANUARY 5, 2015 CURRENCY BUY SELL US Dollar 7.150000 7.180100 Euro 8.491000 8.615000 Pound Sterling 10.870400 11.004500 Canadian Dollar 6.046200 6.094900 Danish Krone 1.144900 1.157000 Norwegian Krone 0.934700 0.945200 Swedish Krone 0.895600 0.9062001 Swiss Franc 7.083900 7.167700 Japanese Yen (100) 5.923000 5.980200 Australian Dollar 5.742100 5.818000 Kuwaiti Dinar 24.310000 24.437300 Saudi Arabian Rial 1.902300 1.912500 UAE Dirham 1.944300 1.952400 Bahraini Dinar 18.964500 19.043800 Omani Rial 18.570900 18.649100 Qatar Rial 1.963200 1.971700 Jordanian Dinar 10.067500 10.114200

Above rates are applicable for amounts up to USD. 25.000 or The Egyptian Cabinet - Information and Decision Support Centre equivalent for larger amounts, please refer to Treasury Department. JANUARY 7, 2015

PRINCE ALWALEED OIL DECLINES IN THIN, VOLATILE BAHRAIN SETS UP ATTACKS SAUDI TRADING COMMITTEE TO DEFICIT BUDGET MONITOR 5 Global benchmark Brent crude oil closed down Billionaire Prince nearly a dollar a barrel last Friday after a day of chop- PROJECTS Alwaleed bin Talal has py trading despite expectations of new investments in Bahrain has set up a high- lashed out at the Saudi fiscal the new year, as strong mid-day rallies in crude fiz- powered committee to moni- policy afterprojecting the zled, Reuters said. torthe implementation of its largest-everbudget deficit Brent was down 91 cents at $56.42 a barrel. Earlier, it blueprint for growth, a report for 2015 following the slump touched a post-2009 low of $55.48, having averaged said, according to in oil prices, TradeArabia around $110 a barrel between 2011 and 2013. TradeArabia News Service. News Service said. Front-month US crude for February delivery settled Prime Minister Prince "We have reached the dan- down 58 cents a barrel at $52.69, before a steep 50-cent Khalifa bin Salman Al Khalifa ger point... after starting to drop post-settlement. has outlined the blueprint of withdraw from the reserves," The US dollar index was 0.9 per cent stronger last government plans for the next to meet the budget shortfall, Friday. The combination of the supply glut and the strong four years at a rare joint parlia- Alwaleed said in a letter dollar has been a "double whammy" for crude oil prices, ment and Shura Council ses- addressed to the finance minis- said Walter Zimmerman, chief technical analyst at sion. ter, according to a report in the United-ICAP. The committee supervises Gulf Daily News. "This is a long-term cyclical downtrend," Zimmerman specialised sub-groups that Last week, the world's said. "It's going to take a while for prices to fall low focused on individual pro- biggest crude exporter enough to cut off that excess production." grammes, according to a report announced an expansionary Low trading volume also made the market vulnerable in Akhbar Al Khaleej. 2015 budget with the largest- to knee-jerk reactions. The move is part of the ever deficit of $38.6 billion. Saudi Arabia's King Abdullah bin Abdulaziz is suffer- Premier's keenness to discuss It projected spending at ing from pneumonia and temporarily needed help to the programmes with parlia- $229.3 billion, a slight breathe through a tube on Friday but the procedure was ment and ensure their timely increase from last year's esti- successful and his condition was now stable, the royal implementation, the report said. mates, and revenues at $190.7 court said. For the first time in Bahrain's billion, sharply down from The DFM benchmark Index ended 2014 at 3,774.00 points, or an increase of up 12 per cent, from previous year. — Kt file Opec, the Organisation of Petroleum Exporting history, MPs have the right to $228 billion projected in 2014. photo Countries, which includes Saudi Arabia, declined to reject the blueprint - and if par- Saudi Arabia, the lead pro- restrict oil output in November despite pressure from its liament rejects it three times, ducer in the Organisation of member nations. His Majesty King Hamad then the Petroleum Exporting Iran's deputy foreign minister urged regional rival has the right to dissolve either Countries, also said it esti- STOCKS TO OPEN ON HIGHER NOTE IN UAE Saudi Arabia last Thursday to take action to support oil parliament or the Cabinet. mates 2014 actual budget The UAE bourses are expected to start new-year trad- increased steadily for the past three years, was the most prices, saying producer countries across the Middle East Parliament chairman Ahmed deficit at $14.4 billion as both ing on a positive note when the markets opened last volatile in 2014, surging about 60 per cent in the year before will be hurt unless the price slump is reversed. Al Mulla said this was an his- spending and revenues far Sunday. losing most of the gains in the fourth quarter. In the US, benchmark oil prices took some support toric step, a first in the region exceeded projections. from data last week showing inventories fell by 1.8 mil- and the Arab world. Alwaleed, a member of the The leading fund managers, experts and analysts say the Abu Dhabi Securities Exchange also relinquished most of UAE equities will sustain the upward trend last week as the the years’ gains but ended 2014 up 5.6 per cent at 4,528.93 lion barrels in the last week, but an increase of 2 million The unprecedented step is the Saudi ruling family and the barrels at the US crude contract's delivery hub of blue chip stocks are available at very attractive prices fol- points. result of National Dialogue, he wealthiest Arab private Cushing, Oklahoma, kept prices under pressure. said. investor, said Riyadh should lowing market correction last month. By the end of 2014 in Gulf countries, four markets, Qatar, The traders were searching for a bottom in US crude The DFM benchmark Index ended 2014 up 12 per cent at Dubai, Abu Dhabi and Bahrain, posted annual gains while Dr Al Mulla said it will be a not have let spending rise around the $52 a barrel mark, but Friday contained most- major challenge for parliament above projections, especially 3,774.00 points after dipping below the 2013 close in the Saudi Arabian, Kuwaiti and Omani bourses recorded ly sideways trading due to thin volume, said Carl Larry, December. The last day of the trading in 2014 witnessed 1.3 dips. to assess programmes objec- after oil prices began to director of business development at Frost & Sullivan. tively to optimise them to meet decline. per cent increase in the index. All the seven stock markets in the Gulf countries record- "We're all waiting for the new money to come in next citizens' aspirations. Oil income contributes “The current levels are very attractive to book profit, so ed strong gains in the first nine months of 2014 but ended week," he said. SAUDI ACCOUNTS about 90 per cent of public the UAE equity markets will sustain the upward direction if the October to December period in the red amid a wave of IRAQ OIL EXPORTS SOAR BUT LOW revenues in Saudi Arabia not move into bullish circle,” according to an equity analyst. panic selling after oil lost about 50 per cent of its value FOR 70% OF TOTAL which pumps around 9.6 mil- Banking stocks, which witnessed record growth last year, because of weak demand, a glut in production and a strong PRICES HIT REVENUE GCC PACKAGING lion barrels per day. will be prime focus of investors who are expected to back US dollar. Iraq’s oil exports reached their highest level in decades If the government had con- into the ring after long weekend, he said, adding that lead- The UAE economy is diversified and there is no immedi- in December, the oil ministry’s spokesman said, but vital MARKET tained last year's spending revenues were being hit by the plummeting prices of Saudi Arabia maintains 70 ing banking scrips are expected to sustain an upward trend. ate impact is expected to be noticed because of free fall of crude. within projections, a surplus of Emirates Islamic Bank stocks climbed by nearly 74 per oil prices in the country, top government officials have con- percent share of the GCC’s at least $50 billion would have Iraq exported 91.141 million barrels of oil in December for total packaging industry as cent, Emirates NBD surged 40 per cent while Commercial firmed several times last month. an average of 2.94 million barrels per day, the highest daily per recent industry studies, been posted, the prince said. Bank of Dubai soared 37 per cent in 2014 despite volatile The capitalisation of the GCC bourses, however, rose by average since 1980, Assem Jihad said, citing initial figures. As a result of failing to with local business posting a trading in last quarter. Mashreq and Dubai Islamic Bank around $70 billion to $1.04 trillion at the end of 2014 from December exports were far and away the highest in 2014, 15 per cent annual growth, check rising spending, a total eclipsing the previous best month by more than 11 million of $53 billion will be with- advanced 36 per cent and 29 per cent, respectively, last year. $970 billion a year ago. But they shed around $131 billion TradeArabia News Service Dubai Financial Market (DFM) Index, which has from their value on September 30. barrels, according to ministry figures. drawn from fiscal reserves, But revenues were $5.247 billion, only up slightly on said. estimated at $750 billion, in November and much lower than the early months of 2014 Due to a widespread use of just two years, he said. FIRE AT LIBYAN OIL PORT DESTROYS UP TO 1.8M BARRELS OF because of sharply declining oil prices. plastic as a raw packaging Jihad said prices averaged $57 a barrel in December, down material over glass and metal, CRUDE from $100 or more during the first half of the year. packaging has emerged as one FIRE AT LIBYAN OIL PORT DESTROYS Two tanks have collapsed and two others are still on fire, The average December price was even lower than the $60 of the most active industries of said Mohamed El Harari, a spokesman for state National Oil per barrel used to calculate Iraq’s 2015 budget, which the country, with demand con- UP TO 1.8M BARRELS OF CRUDE Corp (NOC). Two tank fires had been extinguished. already includes a more than $19 billion deficit. tinuing to rise for both flexible A fire raging for almost a week at Libya's biggest oil Thinni has been forced to work out of the east since a Oil producing cartel “OPEC must move to address this and solid packaging. port of Es Sider has destroyed up to 1.8 million barrels rival group called Libya Dawn seized Tripoli in August, set- issue,” Jihad said. The current surge in demand of crude and damaged seven storage tanks, causing total ting up its own government and parliament that is not recog- for safe and sustainable packag- damage of $213 million, a top oil official said, according nised by world powers. ing solutions alongside food to Reuters. Es Sider is fed from fields run by Waha Oil Co, a joint- packaging requirements comes The Es Sider terminal and nearby Ras Lanuf stopped venture between Libya's National Oil Corp with US compa- at a time when food consump- Prince Alwaleed bin Talal working three weeks ago when forces loyal to a rival gov- nies Hess, Marathon and ConocoPhillips. tion is expected to grow at an ernment in Tripoli tried seizing them from forces allied to Without the two ports, which accounted for around annual rate of 4.6 per cent Alwaleed also criticised the the recognised Prime Minister Abdullah Al Thinni. 300,000 bpd of exports, Libya's total output was in the range between 2011 and 2015 to even- way Saudi reserves are invest- The terminals are still under control of Thinni's forces but of the 380,000 bpd reported, Harari said. tually reach 51.1 million tonnes. ed, saying because most of the area has become a battlefield against former rebels who The ports of Zawiya and Mellitah in the west of the coun- The new challenges and them are invested in US and helped oust Muammar Gaddafi in 2011 but now fight for try have also halted oil exports as the conflict has shut down opportunities have emerged in European bonds, they have control of the North African country. the connecting fields of El Sharara and El Feel. the packaging industry due to low yields at around 2.4 per A huge fire at a tank farm outside the terminal was report- Only the ports of Hariga and Brega in the east and two advancement in technology, cent annually. ed after a rocket hit, with both sides blaming the other. offshore fields are still working but part of the output is “Prices are falling now to abnormal levels, and it is up to new machineries, and innova- The reserves are currently Thinni's top oil official, Al Mabrook Al Buseif, told needed to feed the 120,000 bpd Zawiya and 20,000 bpd the organisation to move instead of watching prices collapse tive products. managed by the Saudi Arabian Reuters the fire had damaged seven tanks and destroyed up Tobruk refineries. to illogical levels,” he said, adding that this was his personal To throw the spotlight on Monetary Agency, or the cen- to 1.8 million barrels of crude - roughly four times Libya's opinion rather than that of the ministry. fresher concepts of packaging, tral bank. daily production. The dramatic decline in oil prices poses a major problem Riyadh Exhibitions Company is Alwaleed called for the cre- for Iraq, which depends on oil revenues for the vast majority set to host the Saudi Print and ation of an independent sover- FUNDS POSITIVE ON UAE, EGYPT STOCKS IN ERA OF CHEAP OIL:SURVEY of government funds. Pack 2015, the 12th internation- eign wealth fund to invest the The UAE and Egypt appear the most attractive among major Middle Eastern stock markets in an era of low oil The oil ministry said in November that Baghdad lost more al trade exhibition for printing reserves and increase the than 27 per cent of its projected revenues for 2014 because and packaging technologies for prices, the latest Reuters survey of regional asset managers suggests, Reuters said. of the fall in prices. returns to around 7-8 per cent. The plunge of oil and equity prices over the last several months has stunned managers, and they may therefore invest their the first time in Jeddah, the It comes at a time when expenditures are higher than major urban centre of the Saudi If oil prices remain at the 2015 equity allocations to the region only gradually. usual, with the country battling to regain ground from the current level of under $60 a “I think the next three months will witness a wait-and-see approach by most fund managers, as they wait to see stability Arabia’s Western Region and Islamic State jihadist group, which spearheaded a sweeping one of the country’s most barrel for benchmark Brent in the equity markets after the wild swings of December," said Mohammed Ali Yasin, managing director at Abu Dhabi's offensive that overran swathes of territory in June. crude, Saudi Arabia is expect- NBAD Securities. important commercial centres. ed to lose half of its oil rev- A key question, he said, is "if the predictions of more stable oil prices in the range of $65-$75 materialise - that will be enues of $276 billion posted in a major defining factor for their investment strategy over the rest of 2015." Petrochem, the 12th interna- 2013. Oil income in 2014 was However, the Reuters survey of 15 leading Middle East investment professionals, conducted over the past 10 days, shows OMAN RAISES STATE SPENDINGtional AT plastics EXPENSE and petrochemi- estimated at $248 billion. the markets' tumble has not turned funds away from regional stocks in general. OF BIG DEFICIT cals trade fair, from March 1 to DUBAI TO LIFT Forty-seven per cent expect to raise overall equity allocations in the next three months against 20 per cent who anticipate Oman's finance ministry released a state budget for 2015 that raises spend- reducing them. ing at the cost of a big projected deficit due to the plunge in oil prices. SPENDING 9%, Many fund managers note that the markets' slide - Saudi Arabia .TASI is down 24 per cent from its September peak - has greatly improved valuations, reducing or eliminating big premiums to other emerging markets. Government expenditure this year is estimated at RO14.1 billion ($36.6 billion), END DEFICIT IN The big difference shown by the latest survey is that funds have become much more selective about which stock markets up 4.5 per cent from last year's original plan, the ministry said. according to they plan to buy in coming months. On balance they are still wary of Saudi Arabia, for example; 40 per cent expect to lower Reuters 2015 BUDGET Revenues are projected at RO11.6 billion, down one per cent, leaving an antici- Dubai would raise spend- their equity allocations there and 33 per cent to increase them. ing nine percent in 2015 That is because petrochemical stocks are heavily weighted in the Saudi market and they remain vulnerable to further falls pated deficit of RO2.5 billion, equivalent to about eight per cent of Oman's annu- undera state budgetin oil prices, which would reduce the advantage that Saudi companies enjoy over foreign rivals due to cheap feedstock. al gross domestic product. approved by the emirate's "With oil prices expected to remain low and the petchem sector weight big in the index, next year will be very interest- The ministry said it would look at a range of ways to cover the shortfall. Grants ruler, designed to keep the ing when it comes to stock picking,” said Bader Al Ghanim, head of asset management at Kuwait's Global Investment from foreign donors could provide RO200 million, international loans RO200 mil- economy growing strongly House. lion, borrowing from the local market RO400 million, state reserve funds RO700 while eliminating its budget Fund managers are also cautious about Qatar, where petrochemical firms such as Industries Qatar are heavily weighted, million, and previous years' surpluses RO1 billion. deficit, official news agency and Kuwait, which has one of the richest governments in the region but where bureaucracy and political tensions have made The state finances of all the Gulf oil exporters have been hit by the halving of WAM reported on Saturday, it hard for authorities to spend money effectively to offset poor global economic conditions. crude prices in the past six months, with Brent crude now standing at about $57 a But towards the UAE and Egypt, managers are considerably more optimistic. Forty-seven per cent expect to raise over- barrel. according to Reuters. all equity allocations to the UAE in the next three months and 20 per cent anticipate reducing them. Economies in the Gulf face But Oman's oil resources are not as ample as those of its bigger neighbours and There are two major reasons. Partly because of the contribution of Dubai, economic growth depends less on oil in the it has not built up their huge fiscal reserves, so it is more vulnerable than most. financial pressure this year UAE than it does in the other wealthy Gulf states. because of the plunge of oil The government has been spending heavily to build industrial projects and infra- prices. Although Dubai's oil structure to diversify the economy beyond oil, and it ramped up social spending to output provides only 4 per maintain stability after the 2011 Arab Spring uprisings elsewhere in the region. It cent of its revenue, the emirate appears to have decided it cannot cut either form of spending sharply. relies on trade, tourism and The ministry statement did not specify the oil price assumed in its budget calcu- investment ties with the rest of lations, and a regular annual news conference by Financial Affairs Minister the Gulf. Darwish Al-Balushi to discuss the budget was cancelled without explanation last Its 2015 budget plan shows Thursday. it believes the regional econo- The ministry's statement did not explain how it could limit this year's drop in my will stay healthy enough revenues to one per cent if oil prices stayed around $60; oil accounts for about for revenue to continue four-fifths of revenues. expanding rapidly, allowing In November an advisory body to the government suggested sweeping spending Dubai to close a budget short- cuts and tax rises, including a levy on liquefied natural gas exports, a royalty on fall that opened up during its the revenues of telecommunications operators, and a hike in royalties paid for min- 2009 financial crisis. eral exploitation. Spending this year is pro- The ministry did not say which if any of these steps had been adopted. Last jected at about Dh41 billion month, Omani cement firms said the government would double the natural gas ($11.2 billion), up from 37.88 charges they pay. A proposal to tax foreign workers' remittances was rejected, local billion in the original budget media said. for 2014, WAM quoted a gov- A privatisation programme will be carried out in the next three years, the min- ernment statement as saying. istry said without elaborating. Revenue is expected to "Due to low oil prices, it was necessary to make some temporary measures to jump 11 per cent in 2015 from maintain financial stability. These measures will not affect the common people, a projected Dh37 billion their living standards or employment," it said. ($10.07 billion) for 2014, Actual government spending in 2014 was about RO14.5 billion, higher than the reducing the budget deficit to original budget plan because of "additional unplanned costs", the ministry said. zero from Dh882 million From Al-Sharq Al-Awsat Actual revenues in 2014 were RO13.9 billion, largely because of the conservative ($240 million) last year. oil price of $85 assumed for that year.

JANUARY 7, 2015 6

The Holding Company for Pharmaceuticals has put forth an investment plan to set up a new factory for the Kahira Company for Pharmaceuticals to be carried out in three years at an investment cost of 365 million pounds. A 65,000-square-meter-sized plot of the lands owned by the Holding Company for Pharmaceuticals was allocated for the establishment of the new factory in the Sixth of October city at a cost of LE15.3 million.

A new sterile area was set up in accordance with the GMP regulations where sterile tive capacity of 3,000 packets per hour, an automated wrapping machine for drops, two pharmaceuticals are being processed and packed like ampoules, drops, eye ointments, syrup filling machines, a tablet press machine and one tablet strip de-foiling machine. as well as the other non-sterile medicaments of antibiotics like Cephalesporins in form The development of some productive areas, labs and warehouses is under way to of capsules or suspensions. The company has also bought new machines which effec- comply with GMP regulations covering the fields of oral drops, strip de-foiling, sugar- tively contributed to improving the quality of products and reducing the waste. Among coating tablets, colored tablet production, sample receipt room, pharmaceutical moni- the new equipment are eight electrical ovens for powder, capsule and tablets depart- tory lab and cronbach's alpha lab. Over the past period, the company manufactured ments with a productive capacity of 200 kilograms for each oven. The company has new products, including Thinetens 50mg and 100mg, Pyral Extra (tablets), Ceftriaxone also bought two self-adhesive labeling machines with a capacity of 10,000 bottles per 1mg and Indol 10mg and 40mg. hour and one eye drop filling machine with a productive capacity of 4,500 bottles per Known for its good reputation as pharmaceutical manufacture, high-quality products hour. and latest-of-the-art scientific research techniques, the company succeeded in gaining Other new equipment that gave an impetus to production rates and improved quality the confidence of many global pharmaceutical companies that gave it the permission of products was heat sealing machine for effervescence powder boxes with a produc- to manufacture its products locally. 5, El-Hadika St., Garden City, Cairo Tel.: 27956578 - 27956579