Securing Cyberspace

NOT FOR SALE NOT AUGUST 2019 AUGUST Egyptian leadership in digital data protection SECURING CYBERSPACE

www.amcham.org.eg/bmonthly EXPANDING MARKET FOR HEALTHCARE FOR MARKET EXPANDING PUBLIC-PRIVATE PARTNERSHIP IN HOUSING PARTNERSHIP PUBLIC-PRIVATE ENTREPRENEURS PONDER CBE EASING ▲ ▲ ▲

ALSO INSIDE ▲ ▲ ▲

BUSINESS MONTHLY SECURING CYBERSPACE AUGUST 2019 Cover.qxp_Cover.qxd 8/6/19 4:35 PM Page 1 PM Page 4:35 8/6/19 Cover.qxp_Cover.qxd THE POWER OF CONSTRUCTION

DELIVERING NOW DELIVERING 2020

المونت جاللة - العين السخنة IL MONTE GALALA – TRANSFORMING SOKHNA فوكا باي ترحب بالسادة المالك FOUKA BAY – WELCOME HOMEOWNERS • تسليم 1،200 وحدة كاملة التشطيب بتصميمات داخلية DELIVERING 1,200 FULLY-FINISHED, INTERIOR • • جاري تسليم 170 وحدة بالمرحلة االولى كاملة التشطيب DELIVERING NOW 170 FULLY-FINISHED, INTERIOR • في DESIGNED HOMES IN 2020 2020 بتصميمات داخلية DESIGNED HOMES IN PHASE ONE • 1،900 وحدة تحت االنشاء UNITS UNDER CONSTRUCTION 1,900 • • 1،200 وحدة تحت االنشاء UNITS UNDER CONSTRUCTION 1,200 • • االنتهاء من المرحلة االولى للبحيرة الكريستالية علي THE WORLD’S FIRST MOUNTAIN-TOP CRYSTAL • • تم االنتهاء من 70% من إجمالي االعمال الخرسانية OF ALL CONCRETE WORK 70% • الجبل في LAGOON OPERATING IN 2021 2021 للمشروع بالكامل SUCCESSFULLY COMPLETED

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Drexel Eng. Ahmed Shalash

“We’re in the specialized services business for petrole- upstream, downstream, and providing safety solutions. um, petrochemicals, and fertilizers sector. Considered We go where the business is so while remaining in oil, together, these sectors of the economy are the highest the new business in Egypt is more in gas at the moment. earners for Egypt,” says Eng. Ahmed Shalash, Vice Fortunately, there is still demand for our services in oil, President of Drexel Oil Field Equipment, a fully -owned and we are opening up new operations centers in Kuwait subsidiary of Sky CTS Group with headquarters in Sheikh and Iraqi to meet that demand. Zayed, West Cairo. Each of our three business units has new work in han- DOWN STREAM SERVICES • Straub (Pipe Couplings)

“A well-trained workforce, advanced equipment, and dling gas and serving the uptick in Egypt’s power gener- • SAFI Plastic Valves Catalyst Handling Services state of the art facilities earned Drexel our solid reputa- ation. However, also because Egypt does not only sell • Pipes Sealing & Corrosion Protection • Cathodic Protection tion delivering client-focused services for multinationals gas as a commodity, or electricity as a commodity, there  Unloading & Loading of catalyst under in the business. We draw on a worldwide network of are new ventures to be served in the value-added field of • Pipe Joint Fills and Foam Products Inert or normal atmospheres. • Shrink Sleeves specialized solutions providers in addition to our propri- fertilizers and chemicals.  Catalyst screening, density grading and etary resources for both on and offshore work,” says Oxidization. Shalash whose experience includes refinery manage- Business Monthly: How has Drexel positioned itself as SAFETY SOLUTIONS  Catalyst Loading of reactors using UOP ment, government consulting, and most recently CEO of a regional leader in safety? Dense Loading and conventional techniques  Respiratory Solutions LEEDS-- the Sky CTS subsidiary working in electro-  Tubular Reformer loadings using unidense  Gas Detection Solutions mechanical engineering, energy conservation and com- Eng.Shalash: in 2018/2919 We’ve invested in assets Loading and conventional techniques  Fire Protection Solutions prehensive property management for real estate devel- between 5 and 6 million dollars in this business unit.  Video inspection and assessment  Fall Protection Solutions opers. Those assets include nitrogen tanks, and pumps, and  Rescue Services H2S and gas detection systems to manage the most poi- On Site Specialized Services  Rope Access “Over the company’s history, we transformed from sonous, corrosive, and flammable gas that petroleum  PPE Solutions representing oil and gas firms to an integrated service firms deal with during the drilling and production and  Hot Tapping  Safety Consulting & Training Courses provider with a full range of pre-commissioning, commis- refining cycles. The best personal protection equipment  Line Stopping & Freezing  In Plant Service Solutions sioning, specialized maintenance and decommissioning includes top-line breathing apparatus and fire protection  Online Relief Valve Calibration services that also operates in the upstream and marine outfits.  Hydro-jetting UPSTREAM & MARINE SERVICES sector, all the engineering tasks for pipelines. Safety  Online Air Coolers Cleaning services and environmental consciousness at the core of During critical Situations; industry leaders reach out to Drilling Services all our work.” Drexel for emergency response. We’ve just been called Process Services in to do a nitrogen purging job for a spherical tank.  Drilling Bits  “Our safety business unit provides services from the Gross Leak Test (GLT)  Centralizers  wellhead through the pipelines to onshore facilities with Equal to our investment in hard assets is a singular Air Drying & Dehydration  Rig Control Units approximately 65 personnel including technicians that focus on people, training them and upgrading their skills  Nitrogen Services work on the ground and managers with teams deployed so, in total, we’ve invested more than 10 million dollars  Chemical Cleaning Marine Services  Heat Exchanger Cleaning from our free zone operations centers at the port of in equipment and personnel in the company.  Subsea Fluids Alexandria and in the Suez area.” • Pipeline Services (PPL) Business Monthly: Can you talk about how environ-  ROV Systems and sensors Business Monthly: Over the past years, Egypt mental sustainability awareness informs your opera-  PPL Hydrostatic Testing  Underwater Cameras and Video achieved significant gas discoveries covering Zohr gas tions at Drexel?  PPL Air/ N2 Drying  Cable / Riser Protection System  field, which presents a capacity of around 30 trillion PPL Pigging  Simulation Services cubic feet. What do the finds mean for Egypt, the  Eng.Shalash: We are enforcing standards --not just fol- PPL Cleaning  region, and Drexel? lowing them. So when we do a chemical cleanup or an oil Pumping Services Water Treatment cleanup for any tank, we provide the service that takes

Eng.Shalash: The whole region has benefited from you to the sustainable edge where petroleum that in the SPECIALIZED SUPPLIES & SERVICES  this. The European market is benefiting from it. The past was seen as industrial waste, can be reused. For RO Desalination Plants  Middle East market is benefiting from it. As players example when we do a tank cleaning, we recycle 90 to • MEG Waste Water Treatment Plants (WWTP) come in, there are more opportunities for us to work 95 percent of the sludge that’s inside Tanks and reuse it. • Castrol Hydraulic Fluids  Filtration / Water injection Systems sky inv. adv.qxp_Editorial.qxd 8/1/19 4:16 PM Page 2

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Drexel Eng. Ahmed Shalash

Eng.Shalash: The whole region has benefited from you to the sustainable edge where petroleum that in the SPECIALIZED SUPPLIES & SERVICES  this. The European market is benefiting from it. The past was seen as industrial waste, can be reused. For RO Desalination Plants  Middle East market is benefiting from it. As players example when we do a tank cleaning, we recycle 90 to • MEG Waste Water Treatment Plants (WWTP) come in, there are more opportunities for us to work 95 percent of the sludge that’s inside Tanks and reuse it. • Castrol Hydraulic Fluids  Filtration / Water injection Systems Lars Geweyer Chief Executive Officer ALDAU Development - Hospitality Division

Q.Every hotel has an obviously different concept and persona. how does each hotel manage to represent itself differently? Each hotel property at Steigenberger ALDAU Resort offers a unique product to a different audience of age and interest. Accomplishing this was successful with intensive attention to the finest details to present every theme. The persona of each property is not only viewed in the architecture of the buildings and interior design of the rooms, but also in the hand-picked selection of the colors, music, and ambiance.

Q. Steigenberger ALDAU Resort has reached the total number of 89 awards. What did it take to achieve this success? Steigenberger ALDAU Resort has been working hard through challenges and competitions and under demanding conditions to finally build an unmatched reputation in hospitality.

The company was strong-minded to create the best-in-class residential and shopping destination in Hurghada and has broken new ground in the delivery of the finest properties in Egypt & abroad for the Q. Your title is definitely a highly demanding one. last twelve years. With a keen understanding of the Tell us how you manage to find balance between market in Egypt, the company seeks to produce work and your personal life. projects and services that fulfill the needs of the Balancing a personal life and work is challenging to various market segments it serves. everyone in any given industry nowadays. The key to achieving a balanced life is to arrange your priorities Q. What’s the upcoming project that will be the and approach life in an optimistic and positive way. highlight of 2020? We are very excited to announce that our latest Most importantly, you need to pursue a career that niche project, Hyatt Regency brand is coming back you truly enjoy because, at the end, every job position to Cairo. Built over an exceptional highland at the has its own advantages and disadvantages, but the Pyramids Heights Business Park, situated to have way you deal with them can shape your lifestyle. a panoramic overview of the city of Cairo and the Everybody runs a busy life, but we all learn from the Pyramids of Giza, only minutes away from the Grand obstacles that try to hinder us; besides, it’s important Egyptian Museum and Sphinx Airport. to view them as challenges that will teach you to grow rather than burdens. A total of 1,500 units of villas, townhouses, and low-rise apartment buildings that are designed as And, as a consequence, you will learn how to be a business community catered to multinational and happy which, in return, will drive you into a successful local businesses. Combined with the office park, direction where you’ll be able to deliver the ultimate Pyramids Heights will be a fully integrated community results. So, regardless of the position you run, it is a offering privacy, security, comfort, convenience, and matter of priorities and passion. leisure. BUSINESS PARK

WAREHOUSES RESIDENTIAL AREA INDUSTRIAL PLOTS coca cola adv.qxp_Editorial.qxd 8/6/19 3:34 PM Page 2

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One-on-one with the newly appointed General Manager of Coca-Cola in Egypt Ahmed Rady

We sat down with the newly appointed General Manager for Coca-Cola in Egypt, Ahmed Rady, to shed light on a success story for an Egyptian executive who is now leading one of the most iconic beverage companies in the world, and what he plans on achieving with his new role in Egypt. Most people tend to start working in local ﬁrms with aspirations of reaching international exposure, you started outside Egypt twenty years ago, then came back. Tell us about your long history working for Coca-Cola. I have been working for Coca-Cola for almost two decades, having started off as a Brand Manager for Coca-Cola Near East Region, where I was responsible for managing the Coca-Cola brands in Jordan and Yemen. Ever since, I started climbing up the corporate ladder before leading Coca-Cola East and Central Africa Franchise as the General Manager for this region, operating out of Nairobi, Kenya. It is really good to return back to my homeland after all these years, I can’t be more proud.

How will your extensive work experience at Coca-Cola enable you to lead the company in Egypt? Working for Coca-Cola for almost twenty years, meaning that at a very young age, and for a long time, I lived the brands of the Company and fully instilled and lived the values of Company. Working in Africa and Middle East, provided me with a great exposure, living in different markets with a wide diversity of cultures, dealing with a variety of market dynamics, various economic and political challenges, these all really widened my understanding and enabled me to identify critical market gaps and opportunities for each of the markets I led which with the help of my teams in each market, we succeeded to grow Coca-Cola and managed to sustain its position in the market. Having held operations in dozens of countries including Kenya, Tanzania, Uganda, Ethiopia and Zambia, I got a better understanding of the dynamics of every market; the strengths, the weaknesses, the potential and the talent. I have no doubt that Coca-Cola in Egypt has the best talents in the region and can achieve more and more outstanding growth and results, and I am planning build and grow its position and achieve an unprecedented growth in the market.

What business advantage does Egypt have compared to other countries? Egypt is currently building its economic and political landscape. That opens doors to endless investment opportunities. The country’s transformation is enabling real growth, which has greatly benefited Coca-Cola. coca cola adv.qxp_Editorial.qxd 8/6/19 3:34 PM Page 3

We will continue investing in the Egyptian market as we believe in the future of Egypt. In the past three years, Coca-Cola invested $500 million. We focused on distribution, new manufacturing facil - ities, new launches and new production lines. We directly employ 10,000 Egyptians and create indirect jobs for over 100,000 across our entire value chain. With the right investment environment, businesses flourish.

Do you export from Egypt? Our state of art Concentrate Plant located in the Free Zone area in Nasr City manufactures and exports concentrates of Coca-Cola products to 46 countries in Africa, the Middle East and Asia and brings close to half a billion dollars annually as a revenue and this provides job opportunities to the Egyptian people.

Why focus on football in Egypt when it comes to your campaigns? Football is a passion for the Egyptians and is full of great moments and Coca- Cola celebrates these special football events through creative campaigns to share this passion with the football fans. Our association with football dates many years back, when Coca-Cola officially partnered with the International Federation of Association Football (FIFA) in 1974 and we began sponsoring the FIFA World Cup. Just last year, we brought the World Cup Trophy to a historic visit to Egypt and we presented the Trophy to the President of Egypt, Abdel Fattah El Sisi. And we gave the chance to thousands of Egyptians to witness and take pictures with the Trophy throughout two days activations in different places in Egypt. With football being the people’s sport in Egypt, we wanted to confirm our commitment to the Egyptian foot - ball fan. Throughout the years, Coca-Cola launched multiple campaigns sup - porting the Egyptian Football fans. Just recently we launched a football campaign that invited people to put aside all differences and unite and cheer for their country.

Can you tell us a little about Coca-Cola Company CSR activities in Egypt? The Coca-Cola Company has always been keen on developing the communities in where it operates. As a private sector, working closely with the government and the community at large is what I call the golden triangle partnership of success. That model allowed us to implement sustainable initiatives and drive strong achievements. We want to see Egypt thrive. That is why we have been working with different sectors in the community to support less fortunate communities and societies. Back in 2011, Coca-Cola in Egypt launched its “100 Villages Development” Project which aims to develop less for - tunate villages with a holistic developmental approach through connecting clean water to houses that lack potable water connections, renovating schools, and refurbishment of medical centers and pro - vide necessary medical equipment and medicine. To date, we connected close to 500,000 Egyptians with clean potable water in rural areas. We developed 60 villages in 14 governorates. Moreover, in the past couple of years, Coca-Cola provided microbusinesses to over 25,000 women, as part of the Company’s global 5by20 program. It aims to empower 5 million women by 2020.

Can you tell us more about Coca-Cola’s products? Besides the most iconic brand in the world, Coca-Cola, in Egypt, we have Coca-Cola Zero, Sprite, Sprite Zero, Fanta, Dasani, Cappy, Schweppes, Schweppes Gold, Crush, Canada Dry, Sport Cola, Hi- Spot. Recently we just launched our Cherry Coke. merceds adv.qxp_Editorial.qxd 8/6/19 3:34 PM Page 2

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Mercedes-Benz V-Class: Redefining multipurpose vehicles

Mercedes-Benz Egypt introduces the new V-class for the first time in Egypt

Powerful and Efficient Mercedes-Benz Egypt is introducing its successful new V- Class as a new passenger car class for the first time ever in The V250 is equipped with the four-cylinder tur- Egypt. The style, usability and quality of this generation lead bocharged 2.0 liter petrol engine with an output of 211 the way in this segment, stricking the perfect work-life bal- hp and 350 Nm of torque. The engine is even more effi- ance. Following the design idiom of the current Mercedes- cient and clean, ensuring for a pleasantly quiet ride and Benz passenger cars, the new V-Class has a broader appear- a lively performance. The new V-Class is fitted with a 7G- ance and an even stronger visual presence. This comes cour- TRONIC PLUS automatic transmission and all engine tesy of a new sporty bumper design with striking cooling air variants come with rear-wheel drive as standard. The inlets and radiator grille, where the Mercedes star is centrally Mercedes-Benz V-Class remains under the two-metre positioned. mark, therefore it loses none of its day-to-day usability New features include updated colors and interior materials, and can still fit in regular garages as well as multi-storey as well as a new light-alloy wheel design ensuring an avant- and underground car parks without problems. garde appearance. The new V-Class is offered in Egypt as V250 AVANTGARDE and V250 AVANTGARDE PLUS. Both Safest in Class

models are generously equipped. The PLUS model adds Driving is best enjoyed when accompanied by a calming even more options including an excsuiste Burmester sur- sense of safety. Five years ago, the V-Class redefined round sound system, panoramic sliding roof, electrically safety standards in its segment with Crosswind Assist, adjustbale front seats with a memory function, and a table which helps the driver to keep the vehicle on track even package. There are also more safety features, including lane in the case of gusting crosswinds, and ATTENTION keeping assist and blind spot assist. ASSIST, the drowsiness detection system. The new V- Luxurious Space Class takes this a step further with new safety systems which is available for the first time, including the Active The interior of the new V-Class follows the trend of moder- Brake Assist system. Active Brake Assist can detect the nity and clarity, with new air vents in a sportier turbine look risk of a collision with a vehicle ahead, and initially initi- as well as new dials in the instrument cluster. Thanks to the ates a visual and acoustic warning. If the driver responds, new design, drivers can orientate themselves in a much it builds up brake pressure appropriate to the situation. more simple way. The new upholstery and equipment make If there is no response, the system actively assists with modern and elegant statement. Meanwhile, rear passengers evasive and braking manoeuvres. In urban traffic, Active can enjoy special comfort features, from luxury seats with Brake Assist also reacts to stationary obstacles or cross- reclining functions, table package, to privacy glass, as well as ing pedestrians. The new V-Class also comes with a increased air conditioning capacity and electric sliding doors Parking package which includes both Active Parking on both sides. The new V-Class is a VIP shuttle turning journ- Assist and a 360°camera for added convenience. ries into a spa like treatment.

Carnivore’s delight

JW’s Steakhouse is undoubtedly the city’s best place to enjoy your favorite cuts of premium Australian and American beef expertly grilled to perfection and accompanied by crisp salads, fresh seafood and delicious desserts. For an exclusive culinary experience, reserve our private dining room, which hosts up to 12 guests. Open daily from 6pm until 12am.

JW Marriott Hotel® Cairo jwmarriottcairo.com PMI adv.qxp_Editorial.qxd 8/6/19 3:35 PM Page 2

“PMI has invested over USD 6 billion in research, development and commercialization of smoke- free products, yet trying to convince 1.1 billion adult smokers globally is a very challenging endeavor that requires broad collaboration”, says Philip Morris Egypt and Levant Managing Director Vassilis Gkatzelis “Inside PMI’s Smoke-Free World”

Philip Morris International (PMI) is leading a transfor- Could you please give us a general brief about mation in the tobacco industry to create a smoke-free the tobacco industry in Egypt and how PMM per- future and ultimately replace cigarettes with smoke- ceives the country’s tobacco market and the man- free products to the benefit of adults who would oth- ufacturing process, given that this industry is one erwise continue to smoke, society, the company and of the key pillars of the economy, and the country its shareholders. PMI is a leading international tobac - is considered the largest tobacco market in the co company engaged in the manufacture and sale of Middle East & Africa? According to CAPMAS, the cigarettes, smoke-free products and associated elec- tobacco tax revenue represents approximately tronic devices and accessories, and other nicotine- 8.0% of government tax revenues, and is consid- containing products in markets outside the U.S. PMI is ered the second largest income contributor to building a future on a new category of smoke-free the Egyptian State Finances, following revenues products that, while not risk-free, are a much better from the Suez Canal. choice than continuing to smoke. In its 2018 The industry has significantly evolved, and PMM has Sustainability Report, PMI has stated the ambition been playing a major role in its development. The that by 2025, at least 30% of its volume would come Egyptian market is witnessing strong competition, from smoke-free products. thanks to the presence of international tobacco compa- “We would like to offer better alternatives to adult nies besides Eastern Tobacco Company (ETC). ETC man- smokers in Egypt”, Managing Director Philip Morris Misr ufactures a total of 86 billion cigarettes annually for all (PMM) and Levant Vassilis Gkatzelis told Daily News tobacco companies operating in Egypt. Egypt in an interview at his office. An INSEAD Global EMBA graduate, Gkatzelis has Are all PMM products manufactured locally and held key positions throughout his 16-year career at not imported from other countries? Are there PMI, and enjoys a broad geographical exposure span- any imported brands? ning Asia, the European Union, North Africa and the We manufacture all our products locally at ETC, with Middle East. whom we have a strong, long-term partnership based on "Philip Morris Misr (PMM) is the number one interna- mutual benefits. tional player in the Egyptian tobacco industry with Importation is a possibility; however, imported ciga- around 24% market share. The company provides numer- rettes currently available in Egypt are most likely part of ous job opportunities, as it employs around 2,500 peo- illicit trade, which is regarded as a major issue globally. ple, whether directly or indirectly, across its value chain, Illicit trade represents 10% of the global tobacco indus- including manufacturing, supply chain and distribution, try and is known to fund illegal activities, negatively among others. This comes in addition to more than affects tax revenues, and poses a risk to adult con- 100,000 retailers who sell PMI products on a daily basis," sumers, since the illicit products’ quality is not regulated Gkatzelis stated. nor bound by internationally accepted standards. PMI adv.qxp_Editorial.qxd 8/6/19 3:35 PM Page 3

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After a long history of manufacturing cigarettes, is products that revolutionize their sector and change holis- PMI shifting its core mission to produce a different tically the consumer experience. We believe IQOS is one product? of those products. PMI is transforming itself from a cigarette manufacturer to a science and technology-driven organization. We have two Do you have a certain set of criteria that countries state-of-the-art global R&D centers in Switzerland and have to meet to qualify for IQOS to be Singapore. Additionally, we have published more than 340 launched? peer-reviewed scientific papers since 2011 and have been PMI has made a public commitment to pave the way for granted more than 3,400 patents. a smoke-free future as soon as possible. The shift will Smoking is harmful, this is a fact that is commonly take time, given that convincing 1.1 billion adult smokers known. But people often don’t know the ‘why’ and ‘how’ is a very challenging task on its own. of this harm. Despite general misconceptions, experts The science shows that these smoke-free products are a agree that nicotine, while addictive and not risk-free, is better choice for smokers and those around them. When not the primary cause of most smoking-related illnesses. we can reach a critical mass of men and women who have It is the burning process that generates smoke, which switched, we can deliver a broader reduction in population contains harmful toxicants. harm. Innovation, therefore, has the power to change lives Through years of testing and learning, we may now for individuals and, collectively, the future of public health. heat tobacco to release a satisfying aerosol without However, innovative products do nothing if people do burning. This tobacco aerosol, which has dramatically not know about them. Getting the word out is difficult lower levels of harmful toxins than cigarette smoke, still without support from regulators, public health experts, delivers nicotine while providing the taste and ritual that NGOs and all those who care about smokers. This sup- smokers demand. While heating tobacco is one possibil- port is a key criterion to prioritize investment in coun- ity in developing alternatives to cigarette smoking, tries, so that the related investment pays off not only another approach is to produce a nicotine-containing financially but also in terms of positive impact on society. aerosol without the use of tobacco. So far, over 11 million smokers have made the switch What is keeping you from launching IQOS in to IQOS globally, including over 8 million who have fully Egypt? What do you need from the Egyptian abandoned smoking and are using IQOS. government in order to introduce IQOS to the Overall, IQOS is present in 48 markets worldwide, with Egyptian market? more markets in the horizon. On our end, we are committed to offering a portfolio of better alternatives to adult smokers while being transparent How does your new product IQOS work? in our research and findings. But we can’t do it alone. In this While the idea of heating tobacco, instead of burning it, respect, we are working closely with relevant authorities has been around for more than two decades, it is only and our partners in Egypt, who are showing great support now that we have managed to find ways to heat tobacco when it comes to smoke-free alternatives. in products that are satisfying to adult smokers. IQOS When you think of it, there are millions of smokers in uses sophisticated electronics to heat specially prepared Egypt, most of whom will not quit cigarettes, and and blended tobacco. IQOS heats the tobacco just therefore deserve information about, and access to, enough to release a flavorful nicotine-containing vapor smoke-free alternatives. but without burning it. Actually, when I go out, I see numerous adult users of Although the tobacco in a cigarette burns at tempera- IQOS who have already stopped smoking cigarettes. tures in excess of 600°C, IQOS heats it to much lower Although the product has not been launched in Egypt yet, temperatures, below 350°C, generating a nicotine-con- incoming travelers still manage to bring it to the country. taining vapor without combustion, fire, ash, or smoke. The lower temperature heating releases the true taste of Are there other tobacco companies that are pro- heated tobacco. Because the tobacco is heated and not ducing alternatives? Why doesn’t the entire burned, the levels of harmful chemicals are significantly industry move together towards achieving one reduced compared to cigarette smoke. common goal? The IQOS experience has evolved over time based on We believe that the entire industry will ultimately move consumer feedback. With our fourth and latest product in the same direction. PMI has taken a leading role glob- iteration, IQOS 3, we are not just delivering improve- ally with regards to the harm reduction approach, and we ments to the product’s design and functionality, but also will be glad if the industry’s key players follow suit, in to the way we engage with adult smokers. There are few order to ensure a sustainable smoke-free vision. TOC.qxp_TOC.qxd 8/6/19 4:37 PM Page 1

AUGUST 2019 VOLUME 36 | ISSUE 8

Inside 16 Editor�s Note 18 Viewpoint

The Newsroom 20 In Brief A thumbnail view of the top monthly news.

In Focus 22 Searching for quality health care Families grapple with high medical costs

Investor Focus 26 A singular choice for hospital shares

Emerging Trends 34 Affordable Housing: Opening Doors

Market Watch 44 A story �red� all over

© Copyright Business Monthly 2018. All rights reserved. No part of this magazine may be reproduced without the prior written consent of the editor. The opinions expressed in Business Monthly do not necessarily reflect the views of the American Chamber of Commerce in Egypt.

12• Business Monthly - AUGUST 2019

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AUGUST 2019 VOLUME 36 | ISSUE 8

Cover Story 30 Defense for the digital economy CEOs and government officials mobilize against online threats

Cover Design: Nessim N. Hanna

38 InDepth Interest rate crossroads Can business afford a rate cut delay?

At a Glance 42 Decoding residential real estate A story in infographics

Executive Life 46 Dining Out Bocca opens in Shiekh Zeyed

The Chamber

50 Events

59 Exclusive Offers

60 Media Lite An irreverent glance at the press

14• Business Monthly - AUGUST 2019 Classic Fusion Ferrari GT 3D Carbon. Designed in collaboration with Ferrari. Three-dimensionnal carbon case inspired by the "Gran Turismo" universe. In-house chronograph UNICO movement. Leather on rubber strap. Limited edition of 500 pieces.

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Editor’s Note

Director of Publications & Research Khaled F. Sewelam

Senior Editor Jacob Wirtschafter

Contributing Editors Tamer Hafez Kate Durham

Striking parallels Consulting Editor Bertil G. Peterson

Even the most casual of our readers will notice that there has been no such thing as Writers a summer slowdown here at Business Monthly where our reporters tracked develop- Ola Noureldin ments on multiple beats ranging from finance to construction, from healthcare to Adam Skaria

cyber defense. Senior Art Director As an American, I could not help but note the striking parallels between the hous- Nessim N. Hanna ing, medical system, and interest rate choices facing Egypt and the struggle over the same core issues in the United States. Senior Graphic Designer Emy Emile This month�s hack on credit card giant Capital One saw more than 106 million credit applications and files stolen from a cloud server. Ongoing data breaches Graphic Designer underscore the importance of heightened cybersecurity measures taken by systems Verina Maher

engineers at Chamber member firms who work with state agencies to safeguard dig- Advertising & Business Development ital transactions in Egypt and the wider MENA region. Director On the eve of September�s Arab Security Conference, Adam Skaria looks at how Amany Kassem government and business are partnering to defend our data infrastructure. Meanwhile, we are listening to a quiet debate about interest rates being held Advertising Coordinator Lamia Seleit among business and state leaders, who according to Tamer Hafez are weighing the comparative merits of an adjustment. Lower rates could boost a long-promised man- Circulation Coordinator ufacturing stimulus but a looser lending policy could diminish the volume of high Ashraqat Helmy

rate deposits that help Egypt�s government continue big infrastructure projects and Photographers social support, even as it pursues additional reform measures. Soha El Gabi Expediting construction of affordable middle-class homes is now a crucial action Karim el Sharnouby item for the Egyptian government, which is looking for private sector partners to Said Abdelmessih deliver quality units at accessible price points. Production Supervisor The Central Bank of Egypt has set aside EGP 50 billion to subsidize mortgages Hany Elias for middle-income homeowners. We cover the new arrangements to encourage developers who had specialized in upmarket compounds to meet the 600,000 unit Market Watch Analyst per year deficit in supply to the market. Amr Hussein Elalfy

Reallocation of roles between public- and private-sectors is a policy priority in Chamber News Contacts health care as well as housing. Last month, Egypt�s inclusive health care law Nada Abdalla, Azza Sherif, launched in Port Said where personnel at state-owned facilities have undergone Susanne Winkler training from medical and management teams from privately held providers, including the Cleopatra Hospital Group. Shortages in quality and availability of health services have been documented by our reporter Ola Noureldin who explains how companies advance their mission to meet consumer demand for quality while working with the government to bridge the affordability gap.

JACOB DANIEL WIRTSCHAFTER U.S. address: 1615 H Street, NW • Washington, D.C. 20062 SENIOR EDITOR Please forward your comments or suggestions to the Egypt editorial office: [email protected] Business Monthly American Chamber of Commerce in Egypt 33 Soliman Abaza Street, Dokki 12311 • Cairo • Egypt Tel: (20-2) 3338-1050 • Fax: (20-2) 3338-0850 E-mail: [email protected] www.amcham.org.eg/bmonthly

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Tudor_AmChamEG_M79030N-0001_205x285.indd 1 20.06.19 14:46 Viewpoint.qxp_Viewpoint.qxd 8/6/19 6:25 PM Page 1

Viewpoint

A busy month all around! uly was extremely busy for AmCham Egypt. With AmCham Egypt Inc., we orchestrated a U.S. Chamber of Commerce visit by Myron Brilliant, executive vice president and head of international affairs, who was joined by Khush Choksy, vice president, Middle East and Turkey affairs; and Steve Lutes, director of the office of Turkey, MENA Affairs. Brilliant met with President Abdel Fattah JEl-Sisi, the prime minister and the ministers of investment and international cooperation, trade and industry, petroleum and mineral resources, and communications and information technology to discuss U.S. companies� interest in Egypt�s energy, health and digital sectors. These conversations not only promote trade and investment but also strengthen the bilateral strategic relationship between Egypt and the United States. AmCham Egypt also hosted a dinner for U.S. Secretary of Energy Rick Perry, who was in Cairo for a meeting of the Eastern Mediterranean Gas Forum, hosted by Egypt. His visit�which included talks about investment opportunities in petroleum exploration and production, petrochemicals refining and renewable energy� highlights the energy sector�s contribution to Egypt�s economic growth and development ambitions. Government officials in July sat down with U.S.-based auto makers to discuss setting up facilities in Egypt. The talks are part of a broader conversation about the U.S. Trade and Investment Framework Agreement, which could lead to a free trade agreement with the U.S. if Egypt addresses issues such as non-tariff trade barriers. Meanwhile, the International Monetary Fund completed its final review of Egypt�s economic reform program, releasing the last $2 billion tranche of the three-year Extended Fund Facility. The program has successfully led to macroeconomic stability, and the future looks promising with opportunities for more private sector-led growth and job creation. However, this is a long journey, and more sectoral reforms are needed to strengthen the positive economic outlook. July brought us highs and lows in sports. First was the national soccer team�s disappointing early exit from AFCON 2019. It has nothing to do with the team�s efforts, for Egypt is not short on talent; rather it is about the poor handling and management of the most-followed sport in our country. Ironically, AFCON 2019 was proof of what we can accomplish with proper leadership: With only six months to prepare, we delivered an unprecedented opening ceremony and near-spotless organization of the tournament yet failed abysmally in the sport itself. But in other sports, Farida Osman won a bronze medal in the 50-meter butterfly at the World Swimming Championships, while the men�s under-21 national handball team won eight of their nine games to earn bronze in the Junior Handball World Championship. Success in any field, be it sports or the economy, requires leadership coupled with a clear vision, well-defined objectives, the right human capital and resources, proper planning, and effective and efficient execution. As much as strong economic pillars are needed for development and growth, I believe that given our demographics�with the vast majority of Egyptians under the age of 30�an educated, energetic and competitive population is invaluable in moving our beloved country forward. Sports in many ways can help us achieve our ambitions. Next month, another viewpoint… SHERIF KAMEL President, AmCham Egypt

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Advertorial

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The Award

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Al Ahram Beverages Company celebrated July 22nd the winning of three prestigious awards in Supply Chain from the Regional Supply Chain of HEINEKEN.

The first award was given to Sharkeya Plant: AMEE Brewery Award Winner – First Prize

LtoR: Hans Essaadi, ABC MD - Ehab Mahfouz, ABC Technical The second award: The AMEE Supply Chain Award for 2018. It Director - Nicolas Noel, ABC CS and L Director is shared between Technical and Customer Services & Logistics (CS&L)

The third award: AMEE OpCo for Water and Energy Management

The event was held at Dusit Thani Hotel. It was attended by ABC management team and representatives from all functions.

A raffle draw was made and One Lucky Winner of the Grand Prix some lucky winners won VIP tickets to F1 in Italy InBrief.qxp_Layout 1 8/6/19 4:49 PM Page 2

THE NEWSROOM IN BRIEF

Egypt-US trade volume surges by nearly thirty percent

Trade between Egypt and the US grew to $2.2 billion during the period last year, an increase of $172.9 million. first quarter of 2019 �1Q2019�, up 26 percent from the corre- Non-oil products represent 80.2 percent of the total sponding period in 2018, according to the Egyptian Commercial number of exports during the period between January and Service �ECS�. The Egypt-US trade deficit declined by 0.5 per- April 2019. Ready-made garments valued at $377.3 million, cent, from $802.8 million to $798.7 million. comprised 42.3 percent of Egypt�s total exports to the US. The report notes total Egyptian exports to the United States These statistics reflect an increase of 10.6 percent over the increased by 34.1 percent to record $ 892.3 million compared to same period last year. $665.4 million during the same period last year, an improvement High-quality crafts and artwork estimated at a value of of about $227 million. $106.7 million, was exported to the US, marking a 752 per- Oil exports netted $176.9 million in Q1 2019 compared cent increase over Q1 2018. The US imported iron and steel to 122.9 million dollars in the same period of 2018, an uptick worth $41.6 million US from Egypt, an increase of 10 per- of 44 percent and $54 million. Petroleum exports account cent compared to last year. American firms bought alumi- for 19.8 percent of total Egyptian exports. The report also num products at a value of $25.7 million, a growth of 703.8 noted the rise of non-oil exports by 31.8 percent to $715.4 percent and glass products exports increased 237 percent million compared to $542.5 million in the corresponding amounting to $8.9 million. Egypt–U.S. Trade &!! Egypt’s Export Distribution in 1Q2019 Egypt’s Export Volume, y-o-y Growth 377.3 y-o-y growth 752% %'! Export volume %!! ($ mn) $'! 704% Aluminum products Glass products Non-oil exports $!!$ Iron & steel 176.9 & ##'!! 237% Ready-made garments 106.7 % Oil exports #!! 44% High-quality crafts 41.6 $ 25.7 11% 8.9 10% ! !" High-quality Aluminum Glass Oil exports Garments Iron & steel crafts products products

International participation in Egypt’s workforce grows

Non-Arab Asian 24.5 % countries The number of non-Egyptians working in the private sector and investment increased 9.7 percent year-on-year in 2018 to reach 14,777 compared to 13,469 a year ear- European countries 23.9% lier, according to the Central Agency for Public Mobilization and Statistics. 42.9 percent of the total figure is made up by foreigners signing contracts in Egypt for the Arab countries 21.4 % first time. Out of the total number, 45.2 percent �6,686� are from non-Arab Asian countries. Bangladesh accounts for 24.5 percent �1,641�, Philippines for 22.5 percent �1,504�. Eu- U.S. & Australia 7.5% ropean countries account for 23.9 percent �3,525� of the total number of foreigners. 23.9 percent �957� are workers coming from the UK, while 15.6 percent of the total number Non Arab African 1% countries �549� are from Italy. 21.4 percent �3,165� of the non-Egyptians working in the private s sector are from Arab countries. Palestinians and Syrians hold the larger number of

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In Brief

Arabs accounting for 37.2 percent �1,177� 34 percent Technicians & as- CEOs & policymakers �1,076�, respectively. 7.5 percent �1,107� are from the sistants represent represent 24.2% of for- 40.5 % of the work US and Australia, of which 47.3 percent �525� are 33.15% of foreigners eigners working in Egypt’s permits was issued by Americans and 26.6 percent �295� Canadians. Only 1 working in Egypt’s pri- private sector Ministry of Manpower percent �154� from foreigners in Egypt�s private sector vate sector are from non-Arab African countries. The Ministry of Manpower issued 40.5 percent of the work permits, facilitating employment for a total of 5,978 internationals according to CAPMAS. Tech- nicians and assistants represent the most significant number of internationals working in Egypt�s private sector, reaching 33.1 percent, a total of 4,890. Top managers, CEOs, and policymakers follow accounting for 24.2 percent �3,605�. Non-Egyptians working in the medical sector comprised 23.2 percent �3,426� of the total number in 2018.

MENA startups set funding record for first half of 2019

Magnitt�s MENA Venture Investment report ranks Egypt percent drop from last year. as the MENA region�s second-largest funding recipient in Shifts in regional ecosystems continue as Bahrain �5 per- the first half of 2019 � H1 2019�, accounting for 21 percent cent�, and Tunisia �8 percent� captured a higher percentage of the number of agreements signed. share compared to H1 2018 increasing 3 percent. MENA startups raised $471 million during H1 2019, surg- �In relative terms, Egypt, Saudi Arabia, and Jordan have ing 66 percent year-on-year, a record of 238 funding agree- witnessed the greatest funding growth, while Lebanon and ments were inked, up 28 percent from 1H2018�the highest Kuwait have witnessed the biggest decline,� Magnitt number of deals in the first half of a year on record. founder Philip Bahoshy said. The UAE held the lion�s share of the total venture invest- Fintech accounted for 17 percent of all deals in H1 2019, ment amount, grabbing 26 percent of deals in H1 2019, an increase of 9 percent compared to H1 2018, retaining its marking a 2 percent decrease from last year. top spot as the most active industry due to early-stage ven- Saudi Arabia ranks as the fourth largest ecosystem across ture investments and accelerator programs. the region by the number of deals even after a 1 percent de- E-commerce and delivery and transport came second and crease from last year. It now accounts for 11 percent of deals third, respectively. in H1 2019 after Lebanon at 13 percent, which witnessed a 2

Egypt’s local securities shine in Bloomberg African bond index

Bloomberg notes that the African countries struggle to attract South Africa�s debt is up 6.9 percent as its output contracted investors to their stock markets, as value seekers who go for the most in a decade in Q1 2019, and its key index dropped 1.4 equity often look for growth � something that is lacking in the percent since April. Nigeria�s debt is up 4.7 percent as it works continent, with the exception of Egypt. to rebound from the collapse of oil prices five years ago. The index groups local currency debt for eight African na- Excluding South Africa, the continent�s stocks trade at a for- tions, including South Africa, Nigeria, Kenya, Namibia, Bots- ward price-to-earnings ratio of nine based on estimates for the wana, Ghana, and Zambia. While the index gained 6.1 next 12 months, far below the global emerging and frontier mar- percent since May, EGP bonds which yield 16 percent, rose ket average ratio of 12. By contrast, the EGX30 has risen 4.6 almost 8 percent in the same period, extending their advance percent YTD. this year to 25 percent. Egypt has hiked interest rates by around 700 basis points since Egypt ranked third in the Economist�s list of the fastest- November 2016 in an attempt to curb rising inflation following growing countries in the world in the first quarter of 2019. the flotation of the pound. But in February 2018, the central As Egypt�s GDP grew at 5.6 percent in fiscal year 2018-19, the bank began an easing cycle.The higher interest rates are attract- country was able to buck the �anemic� economic growth ex- ing foreign investments in government debt. Foreign holdings perienced by African peers, finds Bloomberg. For example, in Egyptian treasuries stood at $19.2 billion mid-June.

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In Focus

Salaried employees stretch to find Quality health care

Middle-income families grapple with high medical costs as the government implements gradual reforms. By Ola Noureldin Photos by Soha ElGabi

t was a tedious week for 55- Things got worse when Ezzeldin real- Stagnant salaries, rising costs, and year-old Youssef Ezzeldin as he ized his older son needed treatment for insufficient reimbursement rates from searched for a vacant hospital bipolar disorder. For two months, his insurers have made it increasingly diffi- bed for his son�s tonsillectomy. 26-year-old exhibited extremes in cult for middle-class Egyptians to afford Eager to offer his 7-year-old a relaxed behavior and struggled to cope with proper health care. Iexperience, he reluctantly refused to routine daily tasks. Coverage plans often exclude primary settle for a public hospital in spite of Cash-strapped, Ezzeldin scoured care, mother and childcare, elderly care, free treatment. Cairo but was unable to find affordable psychiatric care, and addiction treat- After countless calls and visits, Ezzeldin shared accommodation at a private ment. However, other multinationals finally managed to book a surgery appoint- mental health hospital. He learned that began covering psychiatric treatment ment through a relative who is a doctor at a one-week stay would cost EGP with private medical insurance, accord- a private hospital in Heliopolis. State med- 25,000. With an EGP 12,000 monthly ing to psychotherapist Yomna Zaki. ical insurance covered two-thirds of the salary from his job at a state oil and gas Ultimately, contributions by family EGP 10,000 �about $600� cost. company, treatment is out of reach. members paid for Ezzeldin�s son�s

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treatment, a bill that totaled almost He further suggests that the govern- highly trained staff, communicative EGP 100,000 for a month stay at Al ment offer land and tax incentives for nurses, and an overall comfortable and Mashfa Psychiatric Hospital on investments directed toward construction luxurious experience,� he says. Cairo-Ismailia desert road. of the hospitals, which could partner with Aiming to target this group, El �There was no other solution. My state medical insurance hospitals. That Ganzoury in June unveiled an expansion salary barely covers my family�s monthly would help middle-income Egyptians find of his general hospital, which was estab- expenses, and the only thing I could better access to affordable care. lished in 1973. The old building was have afforded was treatment at a public Essam, who runs a privately owned mainly serving class B and C patients, hospital,� says Ezzeldin from his apart- intensive care unit �ICU� at Helmeyat with 60-70 percent covered by health ment in Nasr City. �There is no way I Al Zaytoun, believes third party private insurance. would let my son risk receiving substan- insurance companies could help ease The expansion adds 84 beds, eight dard psychiatric help.� the registration process and long wait- operating theaters, 11 ICU beds, as well The government estimates 30 per- ing periods, adding the government can- as pediatric facilities. Construction of cent of the population has enrolled in not do it alone. the new facility started in 2003, says El private health insurance plans, yet He says many medical facilities, Ganzoury, noting that licensing and leg- World Bank data shows Egyptians now including his ICU, Einaya, have the islative difficulties coupled with rising pay out-of-pocket for nearly 60 percent potential and resources to operate at costs are the core challenges of investing of their health care expenses � $30.2 higher capacity in terms of bed availabil- in healthcare in Egypt. �To allow private billion out of a total of $51.8 billion, ity and workforce. His ICU, however, is healthcare services to grow and raise according to the Institute for Health struggling to reach half its capacity of 15 capital, we need to simplify and stream- Metrics and Evaluation. These figures fully-equipped beds because of its loca- line the regulatory process and over- are a significant reason behind the gov- tion in an impoverished neighborhood. come bottlenecks in licensing,� he says. ernment�s goal of providing universal Launched in 2016 for EGP 2.7 mil- health coverage by 2030. lion, the ICU was created to provide Managing demand affordable, high-quality services. Due to a rapidly growing population, Egypt�s health care system is composed insurance coverage put more pressure Einaya�s highest occupancy was six beds. Patients pay an average of EGP 4,000 of a variety of public and private enti- on an already strained private hospital ties. The primary government player is infrastructure, says Bassel Essam, a proper night. �Realistically, none of the income the Ministry of Health and Population, fessor of anesthesiology and intensive which directs policy and provides most care and emergency at the Faculty of brackets is comprehensively served by Egypt�s healthcare system,� he says. services at free, public hospitals. Medicine at Ain Shams University. �The lower and higher classes are ill- The country has 2,062 hospitals with

served due to an insufficient number of about 131,000 beds, according to a 2017 Making more beds beds at public and private hospitals, and report by Colliers International. Public Global commercial real estate ser- the uninsured middle class can neither facilities account for 75 percent of vices provider Colliers International afford the out-of-pocket expenses Egypt�s available hospital beds � 93,267 estimates that by next year Egypt demanded by private hospitals nor com- out of 124,361 in 2015, according to needs 77,000 more hospital beds at fortably accept a level of overall care CAPMAS. That same year, the govern- the cost of $21 billion and another below their standards.� ment paid EGP 4.5 million for public- 178,000 by 2050 requiring a $40 bil- Initiating partnerships with over- care treatment. lion to $60 billion investment. crowded public hospitals and private In the current fiscal year, the govern- Essam says the government�s new insurance companies to route patients ment plans to spend EGP 2.1 billion on health care law is designed to encour- to medical facilities like Einaya would be universal healthcare services. In May, age private-sector doctors and hospi- a win-win situation, says Essam. Health Minister Hala Zaid asked the tals to provide affordable services as Hossam El Ganzoury, chairman of El government to increase the budget allo- state-run facilities struggle to keep Ganzoury Specialized Hospitals in cation for the health sector to EGP 100 pace with demand. He believes Heliopolis, shares Essam�s sentiments billion. To implement the Universal investments should be directed on the benefits of public-private part- Healthcare Act, the ministry will toward increasing beds at accessible, nerships. However, he sees Egypt as lag- require an additional EGP 33 billion for affordable class B and C hospitals. ging in hospitals serving Egypt�s upper fiscal year 2019-2020, she said. The min- �Money should not just be pumped class, which is willing to pay or travel istry previously asked for EGP 96 bil- into constructing seven-star-hotel- abroad for care. lion for healthcare during the next fiscal like hospital facilities and medical �This group is not just looking for year, but the Finance Ministry has parks,� he says. good medical care; it is looking for approved only EGP 73 billion.

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In Focus

Management of public hospitals is investments of EGP 40.5 billion and A new nonprofit initiative began at split between the Ministry of Higher EGP 17.8 billion, respectively. Demerdash hospitals in 2016 that offers Education, which oversees teaching Ayman Saleh, director of Ain Shams discounts for Egyptians who can pay hospitals such as Kasr Al Aini at Cairo Hospitals, believes the challenge for their expenses. The low-cost treatment University and Demerdash at Ain Egypt�s public hospitals involves a redis- units offer many surgical procedures at Shams University, and the Ministry of tribution of resources to correct the dis- half the price of other upmarket facilities. Social Affairs, which supervises reli- crepancy between the number of beds A cardiac catheterization procedure costs giously affiliated hospitals and other and manpower, not just adding more EGP 2,000, compared to EGP 6,000. charitable organizations that provide beds. More advanced procedures like a coro- health services. Demerdash, the university hospital nary stent placement would cost EGP The public and parastatal healthcare system of Ain Shams, has a total of 4,000 18,000 at the new unit, compared to sector represent almost 57,000 beds and beds in 12 hospitals and medical centers about EGP 35,000 at private hospitals. 268 hospitals in Egypt. The parastatal with more than 1.5 million patient visits Fees paid by patients go toward the ren- sector is run by the state but governed per year, according to Saleh. ovation of Demerdash�s free care facilities.

by its own set of rules and regulations, Places like Demerdash are where the However, Saleh says the number of has separate budgets and exercises more middle class should be treated, says Saleh, patients utilizing the new unit is not as autonomy in daily operations. The gov- yet that is not the case due to misconcep- high as it might be due to inefficient ernment sector provides an additional tions about public healthcare providers. marketing. Economy treatment 41,000 beds, while the private sector Patients have every right to complain accounts for 150,000 patients out of supplies 33,000 beds in 1,400 hospitals. about overcrowding, slothful service, Demerdash�s 1.5 million annually. The 2017 Colliers International inadequate communication skills, and Many units lack privacy in postsurgery report notes that with demand rude staff, he says, but it does not mean recovery rooms, a disturbing factor for buoyed by a rapidly growing popula- Demerdash can�t be used by middle- some people. Omar El Tahawy, a 34- tion, the country will need an addi- income individuals. �It just means it year-old computer engineer who sought tional 4.4 million square meters of might take some more time and treatment at Demerdash�s new unit hospital space and 2.7 million square patience for customers to get the care for a sleeve gastrectomy, was directed meters of clinic space by 2025, with they deserve.� to a room with other patients after his

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procedure. The operation cost EGP often making them three times more existing hospitals. Within the next two 20,000 instead of about EGP 100,000 expensive than Egyptian nurses.� years, the company plans to invest at a private hospital. He also cites a lack of physicians in EGP 1.5 billion to double the number �I can�t say the doctors were bad, the rural areas. Latest data from the World of hospital rooms to 1,200 and open procedure was smooth, the place was Bank says Egypt has 0.81 physicians per two polyclinic facilities with primary clean, and the facility is very well- 1,000 people, compared to 2.65 per 1,000 care doctors and specialists yearly by 2023. equipped, but in the end, you get what in Jordan, 1.75 in Turkey and 1.56 in UAE. While the group�s strategy is to pro- you pay for,� says El Tahawy. vide healthcare for higher-income Saleh, Ain Shams� director, says Room for investors patients, he says, �due to the penetra- Demerdash offers a high standard of The public healthcare sector�s struggle tion of private insurance, we now actu- care with up-to-date equipment. to meet quality expectations of mid- ally see all segments of society,� It However, there is a lack of specialists dle-income Egyptians and a surging serves about 1 million patients per year. and highly trained nurses outside Cairo population has created an opportunity Fikry sees more room for improve- and Alexandria. �If I do not have those ment. He believes the Universal Healthcare Act will overcome concerns and glitches and offer better medical services to all. �Public facilities need a push in standard operating procedures, efficiency training, and operating struc- tures,� Fikry explains. To target this limitation, the Ministry of Health in April signed agreements with a number of private hospitals par- ticipating in the new healthcare system, including CHG, Dar Al Fouad, Al Salam and Maghrabi hospitals to train medical and administrative staff at several Port Said hospitals, where the first phase of the universal healthcare act is being rolled out. The partnership program aims to improve the effectiveness of medical and non-medical staff, according to CHG Project Manager Abdelrahman ElMazny. CHG offers training on supply chain management, marketing, and human resources. CHG is working at three hospitals in Port Said, including El Nasr Specialized Hospital for children and Tadamon General Hospital. specializations available in all hospitals, for providers of commercial clinical �We are trying to develop their per- then I don�t have sufficient manpower services. Individual investors are seek- sonnel so patients can receive an experi- to use those beds,� he says. �They�re ing to profit from this gap and secure good for nothing.� ence similar to that at private hospitals,� guaranteed returns. says ElMazny. To date, CHG has trained Moreover, Saleh says that recruit- Egypt and similar countries are attrac- more than 500 employees on patient ing foreign personnel has been even tive since they are relatively unexploited handling and communication. The more challenging since the devalua- by investors introducing novel revenue- group also is collaborating with Port tion of the pound. �Before the deval- generating concepts, says Hassan Fikry, Said�s hospital staff. uation, we were bringing in some head of investor relations at Cleopatra Eventually, says ElMazny, there will be nurses from abroad,� he says. �But Hospitals Group �CHG�. a chance to close the gap between pri- afterward, salaries for foreign staff CHG has invested nearly EGP 600 are very high. Average international million over the past three years in its vate and public facilities so all Egyptians salaries are about $1,000 per month, can receive quality healthcare. n

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Investor Focus

Interest in CHG points to market appetite for Medical care shares

By Ola Noureldin

mong the three companies listed on the healthcare and pharmaceuticals sector index on the Egyptian Exchange �EGX�, Cleopatra Hospital AGroups �CHG� holds the lowest weighted average at 26.2 percent. The two other companies are the Egyptian ---International Pharmaceuticals Industries �EIPCO� and Ibn Sina Pharma. They hold 42.29 percent and 31.51 percent, respectively. Investors currently only have CHG as the primary EGX listed hospital firm. It�s generally seen as an attractive proposition with operations secured by expanding demand for healthcare services and the firm�s multiple expansion projects. CHG is the biggest private sector hospital group in Egypt, with a total of 643 beds divided between six operating hospitals including Cleopatra Hospitals, Cairo Specialized Hospital, Nile Badrawi Hospital in Maadi, Queens Hospital in Heliopolis and El Katib Hospital in Dokki. The company was listed on the EGX on April 13, 2016, and made its trading debut on the EGX in June 2016. The transaction revealed a hefty participation from global funds evidenced when the offering of 34 million shares to international institutions was 6.7-fold oversubscribed while the Egyptian retail offering of 6 million shares was oversubscribed more than 28-fold.

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By April, a 1-to-20 stock split resulted Its paid-in and issued capital stands at from EGP 309.6 million in the same in the stock trading at EGP 1.38 instead EGP 800 million. period the previous year. of EGP 9. CHG prospects almost seem under- Higher volumes and favorable pricing �Strong international appetite for the written by an increase in population at supported revenue, and net profit transaction is simultaneously an endorse- 2.2 percent annually and a consumer mar- growth concluded a very successful 2018 ment of Cleopatra�s strong growth ket accustomed to steady price hikes for for CHG with yet another quarter of prospects as well as of Egypt�s healthcare medical care. Ever since it became listed, durable top and bottom-line growth. sector and the wider economy,� EFG CHG has been working on reviewing Cleopatra Hospitals raised its spending Hermes Deputy Head of Investment potential acquisitions. The group rise to EGP 148.6 million in 2018 from Banking Mohamed Abou Samra said to announced their first expansion plans for EGP 117 million in 2017 to fund capital expenditure in the current high interest the local press at the time. the first quarter of 2017 including an rate environment. As of July 25, the share price stands at EGP 300 million to EGP 350 million In the first months of 2019, CHG EGP 6.17. The group has 1.6 billion acquisition of a private hospital in New signed a long-term lease agreement shares, traded at EGP 0.5 per share. Cairo. A second investment of EGP 250 for Queens Hospital, a 50-bed East CHG authorized capital is EGP 2 billion. million was put up to increase Cleopatra Hospital capacity by 100 beds while a Cairo. The facility, located near third for EGP 150 million added 40 beds Cleopatra Hospital, is expected to at Al Shorouk Hospital. �serve excess demand� for the firm�s services. This is likely to contribute to Fast-growing sector the group�s consolidated financials by the second quarter of 2019. On June 2016, CHG implemented an A few months after, CHG also com- EGP 360 million capital increase pleted the acquisition of El Katib promised during the initial public offer- Hospital in Dokki, adding 100 beds to its ing process. The group moved forward inpatient capacity. The plans were with a 40 million share capital increase, announced a year ago, and shareholders with each share carrying a nominal value greenlit the move last December. of EGP 9 split between EGP 0.5 par On the first quarter of 2019, the group value and a premium of EGP 8.5 with a reported a 4 percent y-o-y dip in net total issued capital of EGP 100 million. profits to EGP 55.1 million compared to By the end of 2017, CHG�s EGP 700 EGP 57.2 million a year earlier. Revenues million capital increase was 99.81 per- rose 20 percent y-o-y during the quarter cent subscribed. The company had to EGP 416 million. The leasing agree- applied for EGX approval to issue 1.4 ment brought CHG�s total number of billion new shares to existing share- hospitals to six. holders in October for EGP 0.5 per Net income was impacted by an share as it looked to raise its issued cap- increase in impairments �primarily relat- ital to EGP 800 million from EGP 100 ed to claims made in 2016 and 2017. The million. company said it is �actively working to That same year, the Egyptian establish a more structured revenue cycle Financial Supervisory Authority �EFSA� management framework� that will greenlit Cleopatra Hospital�s acquisition include moving away from weak credit of 46.32 percent of Cairo Specialized profile clients and improving the group�s Hospital, bringing Cleopatra�s total claims collection procedure. holdings in Cairo Specialized Hospital Further expanding its portfolio, CHG to 99.04 percent at the time. moved in June to acquire a majority stake In 2018, Cleopatra pumped in some in one of Egypt�s largest IVF centers. EGP 1 billion on new acquisitions. It CHG did not provide the name of the reported a 168 percent y-o-y increase in target company or the size of the stake net profit in the final quarter of 2018 to but said that it expects to close the trans- EGP 90.2 million, up from EGP 33.6 action later this year. million in the last quarter of 2017. In the same month, CHG signed an Revenues for the quarter stood at agreement with Al Taaleem EGP 394 million, up 27 percent y-o-y Management Services to set up a joint

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Investor Focus

venture that will rebuild, develop, oper- EGP 5.2 a share in a transaction worth hospital rooms to 1,200 and open two ate, and manage Al Nahda Hospital. EGP 2.6 billion � bringing its owner- polyclinic facilities with primary care The JV will be 90 percent owned by ship stake in Cleopatra down to 37.9 per- doctors and specialists yearly by 2023. CHG, with the remaining 10 percent cent. �In the coming months, we will con- held by Al Taaleem, the owner and oper- By mid-July, Actis made official its tinue to explore new potential loca- ator Nahda University in Beni Suef. take over in management at Abraaj tions, in line with our plan to inaugurate In July, private equity fund Actis Private Equity Fund IV �APEF IV� and two facilities per year over the coming received approval from the Financial Abraaj Africa fund III �AAF III� in a five years. We will also press on with the Regulatory Authority to take over the landmark transaction for private equity group-wide renovation works and aim management of Creed Healthcare in the region. The deal includes invest- to roll out the new hospital information Holdco from private equity giant ments in 14 portfolio companies across systems at Cleopatra hospitals. This will Abraaj. Creed Healthcare owned a 69 the two funds and brings Actis� assets see all the group�s East Cairo facilities percent stake in CHG. However, Actis� under management to $12 billion. APEF operating under the new, integrated takeover will reportedly not change the IV�s $1.6 billion portfolio includes framework allowing us to enhance effi- ownership structure of CHG. CHG and Nahda University in Egypt. ciency further and further improve the A few days later, Creed Healthcare Looking ahead, CHG is still commit- quality of care across our hospitals,� and its subsidiary, Care Healthcare, ted to expansion plans. Within the next Chief Executive Officer Ahmed divested 31.5 percent stake in Cleopatra two years, the company plans to invest Ezzeldin said, according to the compa- Hospitals. It sold 503 million shares at EGP 1.5 billion to double the number of ny�s June earnings statement. n

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Cover Story

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Securing Cyberspace Egypt�s increasingly digital economy faces ever-evolving new threats. By Adam Skaria

ystems engineers, CEOs, and government officials are mobilizing in the face of ramped-up threats to corporate and public sector digital assets to protect consumers and businesses in Egypt and throughout the Middle East. �In line with global trends, cybercrime in Egypt increased by 190 percent Sfrom 2012 to 2017,� says Ziad Abdel Tawab, who heads the Cabinet�s Information and Decision Support Center �IDSC�, �but most of the crimes targeted penetrating websites and altering their homepages and content.� For the third consecutive year, the support center and Egyptian Supreme Cybersecurity Council will convene the Arab Security Conference in September in Cairo. The event is considered the region�s most influential forum for public and private efforts to confront digital threats, with Egypt a recognized leader in the cybersecurity field in Africa and the Middle East. In the International Telecommunication Union�s 2018 Global Cybersecurity Index, Egypt ranked 23rd, just behind Germany and ahead of Croatia and Italy. With some of the highest mobile phone penetration rates in the world, the Middle East and Africa receive more than their share of mobile-phone malware attacks, according to Kaspersky Lab, a multinational cybersecurity and anti-virus provider headquartered in Moscow. �The drop in ransomware incidents is a great showcase of the growing awareness of the need for cyber security,� says Amin Hasbini, a senior security researcher at Kaspersky Lab. �At the same time, we have to realize that if there are fewer ransomware attacks, malicious intent is being diverted elsewhere.� Mobile malware attacks in the region numbered more than 368,000 in the first three months of 2019, an average of 4,098 per day and a 118 percent increase compared to the same period last year. Kaspersky statistics for the Middle East and Africa show Egypt had the lowest number of users affected by domestic malware, which can spread through USBs, CDs, and DVDs.

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Recent ransomware attacks on local weakness, publishing or selling their and state governments in the United exploits anonymously on the dark web States have already in certain cases to gain fame or money,� Soliman says. resulted in capitulation to hacker Holding more than 3,000 security demands for tens of millions of dol- patents, IBM operates a broad lars, while hundreds of thousands of research, development, and delivery individuals have had their personal organization that monitors more than identification information stolen. 2 trillion events per month in 130-plus Such incidents reflect a new era for countries, and offers advanced and digital assaults, as hackers move from integrated portfolios of enterprise targeting individuals and companies to products and services. effectively holding hostage entire �Cybersecurity is not an IT prob- cities, such as Lake City and Riviera lem, but an issue that affects every Beach in Florida. member of an organization,� says Just this month, the entire nation of Soliman, whose company recently Bulgaria fell victim to a cyberattack signed agreements with the that compromised the privacy of nearly Information Technology Industry Mohamed Soliman, Security Business all its citizens� data, including income, Development Agency and the Unit Leader - IBM Egypt at the June taxes, loans, and health insurance. Information Technology Institute to opening of the company’s new stimulate entrepreneurship among Innovation and Industry Client Center Companies respond young professionals and develop skills in Smart City. �An increase in high-profile attacks around cybersecurity for such tech- The ecosystem offers a simple inter- has led to an increase in awareness of nologies as artificial intelligence and operable payment platform for peo- cybersecurity challenges in the public blockchain, a cryptographic payment ple, businesses, and governments to and private sectors,� says Mohamed transactions platform. transact with a wide range of payment Soliman, security business unit leader As one of the highest-volume digital instruments that includes P2P, P2M, for IBM Egypt. payment processors in the world, bill payment, airtime purchase, and Attacks target social, state and Mastercard has been at the vanguard salary disbursement, among other ser- financial institutions as �cyberspace of cybersecurity efforts in Egypt, vices. naturally becomes another arena for closely collaborating with the govern- The NFS program resulted in an disputes between nations and �non- ment on several fronts since 2010. eleven-fold reduction in fraud rates, state actors� with conflicting agen- �We consider our partnership with meaning �Egypt effectively became a das,� he says. the Egyptian government as a model benchmark for the region, a model for In September 2016, Yahoo revealed for best practices in terms of the pri- the positive deployment of workable it had been victim of the biggest data vate-public partnership,� says Magdy cybersecurity mechanisms,� says breach in history, likely by a �state- Hassan, general manager of Hassan. sponsored actor.� The 2014 attack Mastercard Egypt and Pakistan. The

compromised personal data of all its 3 2017 Cyber Crime Law �was a great billion user accounts, effectively example of how the government has Egyptian efforts knocking an estimated $350 million been keen to work with the private The increasing expense of cybersecurity off its sale price to Verizon. sector, and onboard global expertise to vigilance for companies and governments In November, Marriott support� its initiatives. has driven efforts to develop measures to International conceded cyber thieves Mastercard launched its joint cyber- both counteract and preempt attacks. had stolen data on approximately 500 security work with authorities by safe- �With its Supreme Council for million of the hotel chain�s customers. guarding government payroll systems Cybersecurity, Egypt built an impres- The rise of cryptocurrencies and the in 2010. By 2014, it had developed the sive model for other countries,� says �dark web� � the clandestine corner of first of its kind NFS �national fraud Sameh Aboul Enein, a member of the the internet accessible only through security� solution that helps protect U.N. group of governmental experts special software that allows users to banks and other card issuers in the on information and telecommunica- remain anonymous � provide hackers domestic market, and the first inter- tions development. This is a 24-mem- and nefarious entities with new operable ecosystem platform in 2016 ber body dedicated to creating a avenues to pursue cybercrimes. in collaboration with the Egyptian national strategy to help government �When a new vulnerability is discov- Banks Company �EBC� and the agencies prevent cyberattacks and ered, hackers compete to exploit that Central Bank of Egypt �CBE�. educate the public on cybersecurity.

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Winners of the simulated wargames competition on the sidelines of last year’s Arab Cybersecurity Conference.

Still, �Egypt has yet to enact com- PricewaterhouseCoopers �PwC� titled Furthermore, in PwC�s 19th Annual prehensive laws to protect personal the Digital Trust Insights Survey CEO Cybersecurity Survey in the data, although provisions that address included 3,000 executives and IT pro- Middle East 2018 survey, 61 percent data protection �are included in� in fessionals worldwide, found that the of respondents admitted they were various existing rules,� says Aboul top 25 percent of respondents � mar- concerned about cyber risk, yet only Enein. ket leaders known as �trailblazers� � 39 percent of Middle East boards in Additionally, the constitution sets are not only leading the way on cyber- the survey asked for information out principles regarding privacy rights security, but delivering more value and about how to assess their organiza- and imposes financial penalties for better business outcomes. tions� readiness to cope with a cyber- unlawful acts under the Egyptian Civil Geographically, 21 percent of attack and 12 percent had not consid- Code, which governs the collection, Europe, the Middle East and Africa ered whether they even needed such use, and processing of personal data. respondents were found to be trail- information. Aboul Enein thinks Egypt should blazers, compared to 30 percent in the Basel Hammoda, founder of strengthen existing legislation by defin- Asia Pacific region, and North and Egyptian startup Digital Cloud ing what constitutes data protection South America. Platforms, points to the tension and other significant terms, such as per- �By focusing on building digital between efforts to accelerate expan- sonal data and sensitive personal data. trust, trailblazers drive more proac- sion of the Middle East�s digital econ- He also believes �Egypt would ben- tive, preemptive and responsive omy and putting in place mechanisms efit from the creation of a national actions to embed these strategies into to secure it. data protection authority with specif- businesses, as opposed to those who �Our countries are generally more ic provisions that regulate online pri- primarily look to minimize the opera- interested in accelerating this digitiza- vacy and enforce legal requirements to tional impacts of cyber threats in a tion than identifying cybersecurity report data security breaches or losses reactive manner,� said T.R. Kane, threats,� he says. �But the more digi- to the authorities.� PwC�s US strategy, transformation and tized you are, the more vulnerable A May report by risk leader. you become.� n

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Emerging Trends

Affordable Housing: Opening Doors As rising prices slow sales of high-end properties, the government looks to private developers to meet unprecedented demand for starter homes.

By Tamer Hafez

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ince getting married in 2017, Over the years, however, the Ministry of housing program for middle- and upper- Samy Abdallah, a 36-year-old Housing built social �low-income� housing middle-income families. Unit sizes are bank teller, hunted for a new only sporadically. In 2014, the state 106 square meters to 118 square meters home. �Prices seemed to launched the Social Housing Program with a green belt surrounding new neigh- spike overnight in line with pound�s �SHP�, which secures funding for buyers borhoods. Phase one saw construction depreciation,�S he says. and receives their installment payments. of 40,000 115-square-meter units. Phase Abdallah rents a 120-square-meter Under the program, the New Urban two, announced this year, involves the �1,291-square-foot� flat in Manial that Communities Authority �NUCA� and construction of 20,000 units. eats up more than half his salary. �I Central Agency for Construction jointly With 1 million marriages every year, it�s worry we will never find an affordable commit to construct more affordable units. no wonder Egypt has a housing deficit of home,� he says, reflecting a widespread NUCA traditionally contracts with 600,000 new units per year. According sentiment. �Before the devaluation, I developers in 30 areas designated by the to El Gazzar, newlyweds constitute most never had a buyer and seller I couldn�t state as �new cities.� Plots are paid for in first-time buyers, adding �the govern- match,� says Mahmoud Samir, a Maadi full, and real estate companies are free ment can�t meet that demand alone. We real estate broker with 20 years of expe- to determine the construction footprint need private sector cooperation.� rience. �Now, it is common.� and neighborhood density. A case in Hoping to expand the supply of prop- point is the New Administrative New market reality erties, the Ministry of Housing recently Capital. The Central Agency for Prices of residential units soared after activated a clause in the 2017 investment Construction mainly builds social hous- the pound�s value dropped from about law that allows free allocation of land to ing units everywhere else. Under the EGP 10 to the dollar to between EGP developers for the construction of afford- SHP, the government aims to provide a 17.5 and EGP 18 in 2017 and 2018. able housing. In exchange, units must total of a million low-income residential �Before the currency crash �starting in cost no more than EGP 500,000 �about units covering all 27 governorates, 2017�, high-end units were selling at near- $30,000�, which the government defines according to Mai Abdel Hamid, chair- ly EGP 10,000 per square meter,� says as a �middle-income� family home. man of the Social Fund for Samir. �Now, you could easily find a mid- �The strategy of the Ministry of Development �SFD�. tier home priced at EGP 13,000 or EGP Housing is to work with the private sec- The SHP also builds middle-income 14,000 per square meter in some com- tor to build low- and middle-income housing projects to plug a new gap pounds in Sheikh Zayed. High-end units homes,� Housing Minister Assem el caused by the private sector�s focus on in places like Madinaty rarely go for less Gazzar said in March. �Our ultimate wealthy buyers. �The private sector for than EGP 20,000 per square meter.� goal is to be a regulator of the sector, not years has built for the top 10 percent of Salaries never caught up with home a direct investor.� society,� says Samir. �Society is now prices, with demand for property shift- Many developers see the state�s policy poorer. That is why middle-income ing to developments targeting middle- shift as an opportunity to offset a dra- housing demand is increasing.� These income Egyptians. �Everyone in the matic decline in sales of high-end prop- SHP developments target formally market has noticed the decline in sales erties. �That may prove to be their only employed Egyptians with units, similar of high-end residential units to their lifeline in the foreseeable future,� says to low-income homes, sold below cost lowest level this year,� says Beshir Tarek Shoukry, head of Real Estate thanks to government subsidies. Mostafa, managing director of First Chambers at the Federation of Egyptian Launched in 2014, the Dar Misr Group for Real Estate Development. Industries �FEI�. National Housing Project was the first �That hurt private sector developers, government-built development target- who have long focused solely on the Government made ing middle-income Egyptians with plans high-end property.� Egyptians have argued about a shortage for 500,000 units. To stimulate sales, developers started of affordable housing since the 1950s. According to a 2018 report by think going even more upmarket with increas- Historically, private sector builders saw tank Marsad Al Omran, in fiscal year ingly unique offerings to cater to the higher profit margins in luxury develop- 2017/2018, the government delivered most affluent clientele. �That strategy ments. �And that was normal, given how 188,697 of those units ranging from 100 worked on a limited scale, for a short loosely supervised the market was in square meters to 150 square meters in time,� says Mostafa. terms of what private developers could gated compounds with commercial and Now, it is increasingly evident that build,� says Samir. �Also, more people educational facilities, as well as mosques the sustainable solution is to build were getting richer, so they wanted and other services. more affordable property. �Middle- more and could afford it.� The second project is Sakan Misr with income housing is more in line with A supply and demand mismatch units in Badr City, New Cairo, Shiekh current realities,� says Mostafa. �That required the government to be a direct Zayed, 6 October, and New Damietta class is now the main driver of supplier to the lower end of the market. city. It was launched in 2017 as a national demand for residential units.�

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There is much room to capitalize on then reimburse developers based on revenue-generating portion of the such an opportunity. �It is a sector that contracts. project. almost all real estate developers have The initiative caps land given to any abandoned for years,� says Tarek Shoukry, single developer to parcels ranging A positive reaction head of Real Estate Chambers at the between 50 and 100 acres. Additionally, The May version of the initiative has Federation of Egyptian Industries �FEI�. delivered homes must be �fully finished� received widespread support. �It is a Shifting the focus from top-tier proper- with at least three bedrooms and one winning situation for everyone ties to middle-income homes is not easy. sitting area, according to Abdel Hamid involved,� says Shoukry of the FEI. �The government didn�t discriminate of the SFD. Minimum unit sizes are set �The government builds affordable when it sold plots,� says Mostafa of First at 90 square meters. �We ultimately homes faster. Families will once again be Group. �So why would we build a low- decide how to price it and determine able to afford decent homes. So devel- profit-margin, middle-income project who is eligible,� says Abdel Hamid. opers will see business improve,� when we could build a high-profit-margin In terms of leeway to build these units That is because land is the most sig- project? Also, we must take into consider- as well as quality standards, developers nificant cost factor when building resi- ation the fact that Egypt�s economic eligible for the initiative must comply dential property. According to Fathallah prospects had been booming since 2003, with 2007 regulations imposed by the Fawzy, head of the construction com- and demand for high-end residences New Urban Communities Authority mittee at the Egyptian Businessmen�s didn�t significantly drop until 2017.� �NUCA�. That means builders have two Association, the cost of the plot would Additionally, construction costs have years to finish projects after approval by equal about 40 percent of the final unit been rising amid ongoing fiscal reforms, the NUCA and municipality. price. Alaa Fikry, CEO of Beta Egypt for led by the end of energy subsidies. To attract construction companies, Real Estate Development, says develop- Mostafa points out that the government the proposed legal framework allows ers building middle-income property also has been increasing land prices part of allocated plots to be used for rev- would only make a profit if the land is every year. To sell, First Group takes on enue-generating projects. These inter- free, adding. �I think 70 percent of local �too much� risk by allowing installment mediate-sized units would be priced and developers are likely to enter into such a payments over five to 10 years, he says. sold by developers, who must pay for partnership if the initiative is imple- the land and cater to Egypt�s middle mented.� Fawzy. New regulatory framework class. Apartment sizes would be limited The increase in supply should create To overcome rising costs, the Ministry to between 90 and 150 square meters, more fairly priced residential units, he of Housing in 2015 floated the idea of according to Abdel Hamid. says. �That would entice more families giving land to developers for free if they Plot prices for the new mid-range to move out of rented apartments,� says build homes suited to middle-income units are expected to vary, depending on Fawzy. �Those who rent in compounds buyers. The plan aims for the private location. The proposed law also stipu- have certain requirements only private- sector and government to provide lates the NUCA as the sole authority on sector developers can offer. Before, it 500,000 residential middle-income pricing the land. �These prices should, was not affordable; under the initiative, units over the next decade. These apart- hopefully, take into consideration that it shouldn�t be.� According to Shoukry ments are set to sell for EGP 500,000. they are catering to the middle class,� of the FEI, another upside is more inno- However, the proposal was post- says Mamdouh Badreldin, chairman of vation. �Developers should start think- poned until now. At first, there was no the Real Estate Investment Division at ing of new ways to cut costs as well as legal premise under which plots could the Federation of Egyptian Chambers innovate in terms of design to attract be given to investors. �We have been in of Commerce �FECOC�. more buyers,� he says. constant negotiations with the state,� He adds negotiations with the In the long term, if high-end proper- says Amgad Hassanein, chief projects Ministry of Housing are ongoing to ties continue to be unaffordable, devel- officer of Capital Group Properties. make it even more attractive for opers may have no alternative but to The Ministry of Housing prepared developers. Points under discussion make the switch to middle-income the latest draft of the initiative in May include eligible developers paying housing. �In general, real estate develop- and sent it to industry bodies for review. only 10 percent of the �profit-gener- ers need to diversify their investment The proposal includes allocating plots ating� plot�s price upfront, instead of portfolios to compensate for the drop in to developers to build housing, while the all of it. After construction, the sales of traditional high-end offerings,� government retains ownership of the remainder of the land price would be says Mohamed el Edrisy, an economics land. Units ultimately would be trans- paid over seven years. FECOC also is professor at Cairo University. �I think ferred to the Social Fund for trying to extend the construction every developer in Egypt will eventually Development �SFD� to oversee sales, time from two to three years for the be forced into that market segment.�

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Caveats Egypt is that investing in middle-income purchases of middle-income homes to housing requires reliable research. �We Despite optimism that the initiative complement CBE�s housing initiative are speaking about the housing gap, large might spur a rebound in residential and establishment of a dedicated real sales, developers are aware of the chal- newlywed figures, and high middle- estate financing entity. �It would work lenges posed by the underlying policy income demand,� he says. �Yet there is directly with developers to offer suitable adjustments. �If we are part of that ini- no data linking income to these stats. We funding options for potential middle- tiative, then it will not be business as don�t know where these newlyweds are income home buyers,� he said. usual,� says Shoukry, of the FEI. �We located, for example. We don�t even have Developers, on the other hand, want need to work under a completely differ- a relevant, reliable quantitative defini- the state to impose some control over the ent mechanism that integrates our tion of who is �middle class.�� price of construction materials �We don�t efforts into what the government is That lack of reliable information, for want price caps or heavy-handed regula- doing now with affordable housing.� Fikry, is the first problem that the state tions. However, the market needs to have Abdel Hamid of the SFD acknowl- must tackle: �These projects must house a degree of oversight to ensure that prices edges involving the private sector in many people … We are not in the busi- are not artificially increasing because of affordable housing requires a new way of ness of building ghost towns while pop- hoarding or manipulation,� says el Edrisy, doing business. �While the private sec- ulation in informal settlements contin- the university professor. �If only for those tor is a major player, moving into afford- ues to surge.� projects, a form of government support able housing is a different game,� she regarding energy prices would noticeably says. �Developers must present more Finding success impact the final price of units.� guarantees than usual. Especially when From the government side, the �free Ultimately success in addressing companies are getting plots for free.� land to build middle-income homes� ini- imbalances in the housing market rests The other important factor is devel- tiative is not the only step to entice the on long-term policy continuity �It may opment location. �As a broker, I can�t sell private sector to invest in affordable seem like a good idea to give plots for residential units � no matter how good housing. In March El Gazzar told the free. However, for its impact to become and affordable the project is � if it�s daily Al-Mal newspaper that his min- visible, it must last for at least two located away from services such as istry is working with banks to increase years,� says Fikry. �The government paved roads, commercial centers and gas lending to real estate companies, as well must not back out, even if it turns out to stations,� says Samir. as to potential buyers. There also is the be a costly exercise with no visible More worrisome for Fikry of Beta idea of creating a fund to help finance immediate benefits.� n

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In Depth

Egypt At interest rate crossroads

A reduction would likely benefit businesses and stimulate the economy, but policymakers lean toward safeguarding family savings accounts and maintaining foreign holdings of government debt. By Tamer Hafez

hould I invest in my business My profit margins were about 10 percent this year. �If it drops below 10 per- or put the money in a savings cent,� he says. �Once I realized it was cent,� he says. �I might feel as though I account?� more profitable to put my money in the made the wrong choice.� �SThat was the question for 55-year-old bank, I sold the business. Now I live off Even after the Central Bank of Egypt Raafat Mahgoub, who owned a company the returns.� �CBE� left the overnight deposit rate at that manufactured plastic bags. Mahgoub does not regret his decision 15.75 percent during its July 2019 meeting, The answer was a no-brainer. �I saw despite interest rates declining from an most manufacturers and many retailers interest rates climb from 9.25 percent at all-time high of 18.75 percent between say they still hope for a rate drop in the start of 2016 to 11 percent a year later. July 2017 and February 2018 to 15.75 per- August to help offset rising operating

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costs caused by higher taxes and escalat- overnight rate forecasts on predictions of net importer�,� says Hany Tawfik, former ing energy bills. the inflation rate in the next few chairman of the Egyptian and Arab It�s widely acknowledged that eased months,� says Mamdouh. Private Equity Association. The govern- rates would likely encourage entrepre- More recently, however, interest rates ment also says fuel is no longer subsidized neurs to take loans to invest in ongoing have been kept at historic highs to curb and will now move with international enterprises or start new businesses. Some inflation-inducing side effects of ongoing prices. That negates a mid-year spike in economists, however, believe significant fiscal reforms. �It helps discipline the inflation. �All that creates a better fiscal reductions in the short term could have market by lowering liquidity. It also keeps environment to accommodate a rise in adverse consequences, resulting in an out- inflation at bay while the government inflation if interest rates are cut,� says flow of dollars as international money tackles other issues, such as removing fuel Tawfik, who also predicts a rate cut this subsidies,� says Khaled el Shafie, an eco- year. nomics and international trade professor Further underscoring the likelihood of at Cairo University. CBE easing is that U.S. interest rates Since the currency floatation in 2016, could also decrease. �The decision about the CBE has been unusually busy adjust- how domestic �interest� rates will move is ing the overnight interest rate. It closely linked to the movement in increased from 9.25 percent in January America,� says Mamdouh. In June, U.S. 2016 to 18.75 percent by the start of 2018. Federal Reserve Chairman Jerome Since, it has been dropping gradually, Powell signaled the Fed could soon cut reaching 15.75 percent at press time. The interest rates. Powell was testifying primary justification for keeping interest before the House Financial Services rates well into double digits is to keep Committee when he said ongoing trade inflation between 6 percent and 12 per- wars could result in a global economic cent, according to the CBE�s Monetary slowdown, which could make it necessary Policy Committee. for the Fed to drop rates to maintain its That target was achieved in three economic growth trajectory. U.S. GDP months after the pound lost nearly half its grew by 2.85 percent in 2018, compared to value in 2017 when inflation rates 1.567 percent in 2016. increased from just under 10 percent to According to a report by Capital more than 33 percent. In 2018, thanks to Economics published in July, Egypt�s a stable foreign exchange rate between interest rate could drop by 50 basis points EGP 17.5 to the dollar and EGP 18, infla- from 15.75 percent without significantly tion rates cooled to less than 15 percent. increasing inflation. It also noted that if So far in 2019, inflation has been hovering inflation continues in the neighborhood just over 14 percent, except in July when of 9.4 percent, interest rates by the end of investors look for higher-yield treasuries it declined to 9.4 percent, according to the year should drop to 13.75 percent. in other emerging economies. the CBE. Additionally, lower interest rates could Cheaper funding hurt families attempting to supplement New dynamic? Even a minor downward adjustment their income with higher yields on sav- That most recent decline in inflation would be welcome news for businesses. ings accounts. �That is the problem when rates to single digits for the first time �Already, the slight drop in interest rates debating interest rates,� says Alaa el Bahy, since 2016 has some economists expect- since the start of 2018 has helped some chairman of Fancy Foods, a producer of ing the Bank to make another reduction businesses revisit their expansion plans,� packaged snacks. �Changing them will by the last quarter of 2019. �If the infla- says Fathy el Tahawy, deputy head of the have a significant impact that will result tion rate remains in single digits in the Household Equipment Division in the in advantages as well as disadvantages.� coming few months, the Central Bank Cairo Chamber of Commerce. �We are According to Alyaa Mamdouh, chief would likely drop interest rates,� says already seeing many company owners economist at Beltone Financial, the pri- Mamdouh. �I expect that could happen withdraw money from banks to inject mary motive for the Central Bank �CBE� by August or September.� into their businesses.� when changing interest rates has always Possibly justifying a rate cut in August However, compared to historical been fighting inflation. People tend to is the appreciation of the pound, a factor trends, interest rates are still high. put more of their money in banks� indicating inflation is unlikely to spiral Between 2003 and 2016, rates remained instead of spending it�when interest out of control. �The pound�s appreciation under 10 percent. �That is the rate that all rates are high. That dynamic dampens probably will mean less pressure on businesses have come to expect,� says demand, prompting businesses to lower domestic finances �given that Egypt is a Mohanad Adly, a member of the prices to retain sales. �We model our

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In Depth

Federation of Egyptian Industries. The starting 2015,� says Hamdy Abdel Aziz, more than 20 years. �We depend on local only exception was in 2008 in the after- head of Engineering Chambers in the borrowing for 20 to 25 percent of our math of the global financial crisis and was Federation of Egyptian Industries. He investment budget,� he says. �We had no squarely aimed at keeping foreign trea- points out that Egypt is now one of the option but to take these last two loans to sury investors in Egypt. Rates increased more expensive emerging markets when cover our day-to-day expenses.� from 9 percent starting July 2008 to 11.5 it comes to manufacturing electronic To reduce dependence on expensive percent in February 2009. They subse- devices. �Most companies in our sector borrowing, Kapci Coatings Investment, a quently dropped to a 20-year low of 8.25 have loans at an interest rate of 22.5 per- subsidiary, cut its budget for real estate percent by October 2009. �We didn�t feel cent. We also pay VAT �14 percent� and investment. �We had to take that deci- its impact on our financing because the income tax �22.5 percent�, as well as con- sion because the Kapci Coatings increase was short-lived,� says Mahgoub. tribute 0.25 percent to the Universal Investment business model depends on �Meanwhile, the low interest that fol- Healthcare System,� says Abdel Aziz. taking loans,� says Rateb. Meanwhile, the lowed was an immense help to me in �That doesn�t make us competitive either conglomerate�s chemicals and inks busi- fighting declining sales.� locally or abroad.� nesses have seen reductions in output. A significant drop in the CBE�s Mohamed Rateb, head of sales and �We are reducing production to reduce overnight rate is vital in the short term marketing at Kapci Coatings, notes the our day-to-day costs. That translates to insist industrialists, citing ongoing sub- most significant contributor to rising less dependence on borrowing,� he sidy reductions and high-interest rates� costs has been high interest rates. Rateb explains. unseen since 1994. �We lost our low-cost took out a loan in 2017 and another in With a debt of EGP 70 million in loans advantage since subsidies were removed 2018, both at the highest interest rates in at 18 percent annual interest, Bahy of

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In Depth

“Egypt may have better long term foreign direct Fancy Foods manages a tight budget. investment prospects” �We get charged a markup over the CBE overnight rate. That is the nature of the business,� he says. �As a result, that rate is reason why Egyptian treasuries are attrac- all manufacturers would like to see such too high for us now. That is unfortunate tive is that government finances are in a program come to life,� says Abdel Aziz because the sector has, by nature, very better shape than in almost all other of the FEI Engineering Chambers. tight-margins.� To improve his finances, emerging markets. Egypt�s debt-to-GDP If it does, it would not be the first Bahy is looking into applying for a loan ratio topped 92.6 percent in 2018, and the time banks have set industry-specific from the International Finance government aims to reach 86 percent this rates. Abdel Aziz cites a 2016 initiative Corporation �IFC� or another interna- year. In many other emerging markets, it when banks quietly started making tional source because their rates are sig- is more than 100 percent, according to a loans to factories at 7 percent interest. nificantly lower than those offered by June Bloomberg report. �Investors always �What killed it was that the amount Egyptian banks. �We can get 1 or 2 per- seek to balance risk, represented by the had to be at least EGP 40 million, and cent interest on such a loan,� he says. debt-to-GDP ratio, and reward, embod- it had to be withdrawn in one go,� he �The downside is that it must be repaid in ied by treasury debt yields,� says Alan says. �That amount was too high, even dollars, and we don�t export that much. Sandeep, director of research at Naeem if it is taken in tranches.� Ultimately, though, it may be our only Holding. Despite interest rate concerns, most option.� Another reason why economists hope analysts give Egypt�s government high the CBE doesn�t reduce interest rates is marks for reforms to improve the overall Low interest dangers the potential effect on household economic environment. �Looking at the While industry would benefit from an finances. According to Damaty, ongoing big picture, fiscal policy reform has pro- interest rate cut, some economists worry fiscal reforms have raised the cost of liv- vided an excellent base for manufacturers that a significant drop poses risks for the ing to a point where many families need over the past few years,� says Sandeep of economy at large. The first reason to to supplement their income. Many Naeem Holding. maintain current interest rates is to keep savers regularly withdraw their savings According to Abdel Aziz, the next step foreigners investing in locally-issued trea- interest. According to the CBE, house- is for the government to build a structure sury bills. �Foreign investors put more hold deposits nearly doubled since mid- on top of that base to sustain higher eco- than $18 billion in these instruments,� 2016, when interest rates started nomic growth. The first piece would be says Sahar el Damaty, former managing increasing, through March. They cur- monetary policy reform, according to director and board member of Emirates rently stand at more than EGP 2.1 tril- Bahy. �Rising costs from fiscal reforms NBD bank. �We can�t afford to see that lion. �With people complaining about can be managed by making smart busi- money exit Egypt right now.� rising prices, I think it would be risky to ness decisions,� he says. �However, find- Capital outflow is a realistic threat lower rates,� observes Shafie, �even if it ing that your financing options are unfea- given that Turkey and Argentina have would benefit industry and, hence, the sibly expensive is much harder to navigate been increasing their rates to attract for- economy.� without completely revisiting your eign investors as both nations face eco- model.� nomic crises. Turkey has raised its interest Countering threats Domestic manufacturers are con- rates from 7.5 percent in 2018 to 24 per- Worried that the CBE is unlikely to sig- cerned that delays in reforming monetary cent at press time. Argentina�s rates, nificantly drop overnight interest rates in policy might push businesses out of meanwhile, doubled from about 30 per- the short term, several industry groups Egypt to rival manufacturing centers in cent in 2018 to 60 percent at press time. propose a low-interest financing program the region. One such destination is �Egypt may have better long term foreign exclusive to domestic manufacturers. Morocco, where central bank overnight direct investment prospects than either �That would be a great way to move for- rates are 2.25 percent. The 2001 Agadir country,� says Shafie, the international ward given how big the gap is between Free Trade Agreement makes accessing trade professor. �However, when it comes current rates and what we need to fix our the Egyptian market easy and cheap for to the short-term nature of treasury businesses,� says Bahy of Fancy Foods. both Tunisian and Morrocan exporters. yields, return rates are more of a priority,� Under such an initiative, manufac- �Because funding costs are so much less The CBE, however, only needs to leave turers in Egypt would be charged 8 in places like Morocco, it would even be the rate unchanged to keep foreign trea- percent interest when taking a bank feasible for large Egypt-based corpora- sury investments in Egypt, says Damaty. loan. Additionally, eligibility would no tions to relocate there,� says Shafie. �Even �There is no real need to increase it longer be determined by the size or if they are primarily catering to the beyond 15.75 percent,� she stresses. One legal status of the company. �I think Egyptian market. n

Business Monthly - AUGUST 2019 •41 At A Glance.qxp_Layout 1 8/6/19 5:36 PM Page 2

At a Glance

In Partnership with

Housing sector in Egypt: latest developments

Sectoral annual real growth (%)

Real estate sector 18% Overall GDP Growth Construc�on & Building Real Estate Ac�vi�es 16% activities encom- 14% pass a range of 12% services relating to 10% 10.0% the provision of 8% property, including 6% 5.3% buying, selling and 4% 3.7% renting of com- 2% mercial and res- 0% 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 idential properties or land. This also includes the activities of real estate agents intermediating in buying, selling, letting or managing real estate. Construction sector includes creation, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature, and other such engineering constructions as roads and bridges among others. Source: Ministry of Planning Share in GDP and employment Share in GDP Share in employment Financial Intermediation Transport & Warehousing Social Services 10.1% 3.9% 4.6% Others 5.0% Construction & Building

16.7% 6.0% Manufacturing 8.5% General Government

13.7% The construction and Wholesale & 9.8% building sector employs 14.1 Retail trade Extractive Industries percent of the total number 11.5% 10.4% of employees in Egypt, Agriculture Real Estate whereas the real estate activities employ 0.2 percent. In FY 2017/18, the real estate sector represented 10.4 percent of total GDP, whereas the construction and building sector Sources: Ministry of Planning & CAPMAS represented 6 percent. Sector inputs: sales and prices

During the first nine months of Between June 2016 and June 2019, FY 2018/19, total cement sales the housing and utilities sector wit- in Egypt recorded 34.1 million nessed a 37.1 percent cumulative in- tons, compared to 36.8 million crease in prices. Average prices of tons a year earlier �7.2 percent steel and cement increased by 122 decline�. percent and 41 percent, respectively, during the same period. During the first nine months of FY 2018/19, reinforcement steel sales by main Egyptian companies reached 5.1 million tons, down from 5.9 million tons a year earlier �13 percent decline�. Source: Central Bank of Egypt & CAPMAS

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At a Glance

Total number of new housing units implemented by the public and private sectors Public sector Private sector 221,187 105,076 216,636 • Over the past three years, a total of 906,962 new housing units were 100,548 developed in Egypt.

• An additional 197,988 units were developed under the social housing 167,743 95,772 project during the same period.

• In FY 2019/20 budget, EGP 3.9 billion is allocated for the social housing program to develop 120,000 housing units.

2015/1 6 2016/17 2017/1 8 2015/1 6 2016/17 2017/1 8 Source: CAPMAS

Informal housing and GOE’s urban development plan

Informal housing: slum areas in Egypt Government’s urban development Plan (Egypt 2030 vision) 188 unsafe slum areas in Egypt with 105,328 units have been revamped, and 90 other areas with 90,466 units are currently being revamped. Increasing the urbanized Moreover, 52 unplanned slum area by five percent areas in Egypt have been re- Establishing seven and a half vamped, and 18 other areas with million housing units a total of 284,108 units are cur- Solving the problem of slum areas rently being revamped. Building one million Source: Statement by executive director of the Development Fund for Slums in May 2019 social housing units Source: Egypt 2030 Vision

New cities in Greater Cairo

PM Mostafa Madbouly announced in September 2018 that GOE is planning twenty new cities of the fourth generation in Egypt on a total area of about 580,000 feddans, expected to accommodate about thirty million people besides providing millions of jobs. Below are the main new cities in Greater Cairo. New Administrative Capital New City at the Sixth of October City of Sphinx 170,000 feddans 78,000 feddans 32,000 feddans

South New Cairo New City at October Gardens New Obour City 16,000 feddans 41,0000 feddans 58,000 feddans

Business Monthly - AUGUST 2019 •43 Market Watch.qxp_Layout 1 8/6/19 5:38 PM Page 2

MARKET WATCH Stock Analysis A story “red” all over he market resumed its downturn during the period from unchanged in its July 11 meeting. Anticipation of a rate cut in June 15 through July 15, where EGX 30 fell 3.9 percent August or September is building up, provided that the recently- to 13,627.9, while EGX 70 nosedived 11 percent to 538.8. announced subsidy cuts work their way through inflation with- TIf not for CIB �COMI�, which is up 22.6 percent year-to-date, out much disruption to price levels. the market�s main index performance would have been even Elsewhere, the market is getting ready for what should be a worse so far in 2019. EGX 30 capped index �where each constit- hot IPO season, starting with the flotation of e-payment solu- uent�s weight is capped at 15 percent� was back to square one, tion provider Fawry, managed by EFG Hermes Holding�s up to a mere 0.2 percent year-to-date versus EGX 30�s +4.5 per- �HRHO� investment banking unit. Set-asides for Fawry may ex- cent. plain the scarce liquidity as investors reserve cash to take part Market participants have been paying attention to two pri- in upcoming IPOs. With such low liquidity, declines outnum- mary triggers. Investors� eyes have been on the long-awaited bered advances during the period by a ratio of 3 to 1. The losers� Global Telecom Holding �GTHE� deal, where its majority list was led by Dice Sport & Casual Wear �DSCW� � down 37 owner VEON Ltd. was set to acquire the former�s free float at percent to EGP 1.42, Ezz Steel �ESRS� � down 31 percent to a premium to the market price, pending agreement with the EGP 8.22, and Arabian Cement �ARCC� � down 26 percent to government concerning overdue taxes. To investors� rejoicing, EGP 2.81. DSCW and ESRS have both suffered from a GTHE agreed to pay the Egyptian government $136 million, strengthening Egyptian pound. thus paving the way for the mandatory tender offer to go Meanwhile, ARCC has been negatively impacted by over- through. This settlement should unlock some EGP10 billion of supply in the cement market and hence, weak pricing power. inflows to the market by the end of August, which should drive Also, Sidi Kerir Petrochemicals �SKPC� and Arabia Investments trading liquidity further. With inflation June reading coming Holding �AIH� both saw prices dwindle after announcing future below 10 percent, the first single-digit reading in 39 months, in- capital increases, a corporate action that investors loathe now- vestors are now looking forward to the resumption of the easing adays. However, the summer vacation is not over yet, and soon cycle. However, the Central Bank of Egypt �CBE� disappointed we will have Eid Al-Adha vacation, after which investors are ex- some market participants when it decided to keep interest rates pected to be back in the market in full swing.

Ezz Steel

12.05 12.11 Ezz Steel �ESRS� was the second worst-performing stock 11.97 11.91 during the period, down 31 percent to EGP 8.22, further ex- 11.69 11.42 11.38 11.5 11.18 11.22 tending its year-to-date loss to 55 percent. More than one 11.26 10.89 factor has been at play. First, iron ore prices jumped by more 10.92 than 70 percent since the start of the year. Second, electric- 10.03 9.81 ity prices were hiked further by the Egyptian government 9.67 effective July 2019. Third, local selling prices have somewhat 9.43 9.24 stagnated, dampened by imports and a general slowdown 8.57 in the market. The company had just posted wider losses of 8.22 EGP1.1 billion in the first quarter of 2019 vs. EGP 67 million 6/16/19 6/19/19 6/22/19 6/25/19 6/28/19 7/1/19 7/4/19 7/7/19 7/10/19 7/13/19 7/16/19 in the comparable quarter on a lower gross margin.

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Capital Markets

Egyptian price indices - EGX 30

14241.21 14202.86 14210.09 14137.22 14132.18 14136.58 14097.43 14100.74 14043.42 14017.34 14043.33 13997.4 14013.26 14006.99 14013.04

13867.47 13813.56 13831.23

13672.13 13627.89

6/16/19 6/18/19 6/20/19 6/22/19 6/24/19 6/26/19 6/28/19 6/30/19 7/2/19 7/4/19 7/6/19 7/8/19 7/10/19 7/12/19 7/14/19 7/16/19

Egyptian price indices - EGX 70

606.03 603.85 603.56 603.52 606.63 599.9 602.53 604.25 602.35 602.15 601.8 597.28 598.14

570.28

556.26

545.74 543.39 543.49 538.81 539.05

6/16/19 6/18/19 6/20/19 6/22/19 6/24/19 6/26/19 6/28/19 6/30/19 7/2/19 7/4/19 7/6/19 7/8/19 7/10/19 7/12/19 7/14/19 7/16/19

Egyptian price indices - NileX

464.54 462.87 461.46

458.35 457.22

454.08 452.08 451.57 452.06 450.72 450.55 450.82 451.51 450.34 450.28 450.71 449.08 449.19 447.55 447.51

6/16/19 6/18/19 6/20/19 6/22/19 6/24/19 6/26/19 6/28/19 6/30/19 7/2/19 7/4/19 7/6/19 7/8/19 7/10/19 7/12/19 7/14/19 7/16/19

Business Monthly - AUGUST 2019 •45 ELife.qxp_eLife.qxd 8/6/19 5:39 PM Page 1

the EXECUTIVE Life DINING OUT

Bocca Eatery and social house

Set in the international style esplanade of Capital Business Park in Zayed, this two-story restaurant always seems a tad busier than its immediate neighbors, and we decided we should figure out why By Mike Bradshaw

he menu at Bocca is a spir- creamy herb sauce included just a hint la, rocket, cherry tomatoes topped ited celebration of global of peanut butter and a hefty dose of an with caramelized walnuts & aged bal- gastronomic trends with unidentifiable peppery spice. The pot samic dressing. Perhaps we were a lit- choices in appetizers, was generously stuffed with mussels, tle greedy, but we did wish there were mains, and sides that hint of a night and the sauce was irresistible to more mango slices in the mix. outT in Barcelona or Bologna or per- slather on garlic toast. We weren�t Bocca�s version of the classic Italian haps even Beirut without much overt quite ready for the hot seasoning on trattoria Caprese �110.00 EGP� loyalty to a specific regional food tra- the seafood, and that�s when we includes decadent helpings of creamy dition. ordered the Kiwi, Banana and Mango burrata, house-roasted baby plum The space boasts two esplanade fac- juice smoothie. tomatoes � and a sufficient serving of ing dining areas one at entry-level as Inspired by the reviving taste of chopped basil drizzled with balsamic well as the ampler second-floor patio. fresh fruit on our palates, we next that allows the dish to qualify as a Longing for a little sea breeze on a ordered the Bresaola and Mango salad and not just another excuse for a hot desert evening, we settled on the Salad. Generous enough for a group of cheese course. Hot Mussels Pot with Golden Garlic four this �EGP 110� ensemble of We noted that like many of its Cairo Bread �EGP 155� as our appetizer. The endive, beautifully sliced beef bresao- gastronomic peers, the menu included

46• Business Monthly - AUGUST 2019 Enjoy a variety of Asian ﬂavors throughout the week. Use the secret word “Silk Road” when reserving and get the chance to win a complimentary dinner.

Lan Tania, every Sunday all you can eat Pad Thai with your choice of 2 beers

Noble House, every Monday all you can eat from selected dim sum

Raj, every Wednesday select your favorite curry dish along with unlimited Naan bread and a complimentary beer

For more information call 02 22677730/40 ELife.qxp_eLife.qxd 8/6/19 5:39 PM Page 2

Dining Out

a wide array of imaginative takes on the fateer layered pastry. The Shrimp and Cream Cheese �160.00 EGP� version we saw our neighbors devouring was tempting, but it was difficult to choose from the imaginative selection of pasta and risotto offerings which included a Lime Shrimp Risotto and Black Squid Fettuccine. After a prolonged discussion, we settled on the Baked Rigatoni with Truffle Cream. This �EGP 115� dish delivered for mushroom enthusiasts like our- selves who appreciated the hearty infu- sion of truffle oil inside the creamy cheese sauce infusing the perfectly baked noodles. The house signature dish Black Bun Salmon �125 LE� has been Instagrammed by more than a few Egyptian foodies. The grilled fish patty is complemented by salmon tinged pickled ginger slices and con- trasts visually with a green avocado- cucumber garnish, sliced red tomato, and the exotic ebony roll. We liked the overall flavors but thought the dark doughy bread didn�t quite work with the patty. Still, we could see skipping the bun next time and special ordering this item without the bread just to get another helping of the onsite kettle fried potato chips and taste of the accompanying pepper mayonnaise dipping sauce. By contrast, the Layered Center Cut Beef and Liver an �EGP 295� was a car- Given the restaurant�s location, we romantic couples enjoying their nival for carnivores that we recommend should note that this would be a great food and conversation. as something to share given the gener- place to do business breakfast- both The setting is not overwhelmed ous portion sizes at Bocca. The meat Sheikh Zayed and Mohandeseen by loud music prevalent at other medallion and liver were both succu- branches open promptly at 10 AM. �hip� dining spots, and guests are lently tender and exquisitely balanced We would come back to sample the escorted to seating in the comfort- with roasted cherry tomatoes skim- Eggs Benedict�85.00 EGP� and the able indoor /outdoor furniture by an ming in a blissful pool of parmesan. mushroomy Truffle Melted Croque attentive staff articulately answer- For our dessert finale, we ordered �115.00 EGP� which bechamel, grilled ing inquiries about the menu in Fruit Creme Brulee �70.00 EGP� The smoked turkey, melted cheese, crispy Arabic and English. n perfectly sweetened custard, hardened beef bacon, and a side salad promises caramelized top and a hefty garnish of to power an early diner all day. juicy pomegranate seeds and mango � Bocca delivers on its self-descrip- Bocca the restaurant�s most celebrated fruit - tion as an eatery and �social house.� Capital Business Park evoked the consistent quality of We saw a mixed clientele of fami- Sheikh Zayed Bocca�s curated eclecticism. lies, business folk, and even a few (+2) 01554777777

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CHAMBER NEWS

BOARD OF GOVERNORS

PRESIDENT Sherif Kamel,The American University in Cairo

EXECUTIVE VICE PRESIDENTS Paul Griffith, Apache Egypt Companies Dalia Wahba, CID Consulting

VICE PRESIDENT, MEMBERSHIP Amr Allam, H.A. Construction (H.A.C.)

VICE PRESIDENT, PROGRAMS Khaled Abu Bakr, TAQA Arabia

VICE PRESIDENT, LEGAL AFFAIRS AmCham Committee Leadership Girgis Abd El Shahid, Shahid Law Firm

for August 2019 to June 2020 TREASURER Kamel Saleh, Saleh, Barsoum & Abdel Aziz – Deloitte have yet to be announced MEMBERS OF THE BOARD Seif ElDin ElSadek, Agrocorp For Agriculture Investment Sherif El Kholy, ACTIS Soha Ali, J.P. Morgan Chase Bank Omar A. Mohanna, CHUBB Insurance Egypt Zaidun Jawdat, Bechtel Overseas Corporation

PAST PRESIDENT Tarek Zakaria Tawfik, Cairo Poultry Group

ADVISOR TO THE BOARD Hisham A. Fahmy

CHIEF EXECUTIVE OFFICER Sylvia Menassa

American Chamber of Commerce in Egypt – Tel: (20-2) 3333-6900 – Fax: (20-2) 3336-1050 For more information about AmCham services and news, please visit www.amcham.org.eg or our US mirror site www.amcham-egypt.org Chamber.qxp_Layout 1 8/6/19 5:50 PM Page 2

Events

LUNCHEON Electricity Capacity Building

Throughout 2015, the Ministry of Electricity added 6 GW to the maximum capacity of the national power grid. �That addition was enough to meet peak loads at the time,� said Shaker. �That made us feel comfortable that we will have enough momentum to counter future increases in peak loads.� By the end of 2018, the national grid maximum capacity had reached 55 GW. �We now have a significant safety margin over expected peak loads,� noted the minister. Also being updated are the transmission lines as well as expanding the national grid from 2,364 kilometers in 2014 to over 6,000 by 2020. Additionally, substation count increased from 18 in 2014 to a planned 48 by 2020. �The capacity of these new substations are over five times that of the older ones,� said Shaker. Running in parallel is an aggressive strategy to promote investment in renewable energy stations. �The first benchmark is for renewable energy to account for 20 percent of electricity generation in Egypt by 2022,� said the minister. �By 2035, we aim to produce 42.7 percent of electricity from these clean energy sources.� Those plans, noted Shaker, are in line with the 2030 National sustainability plans and the United Nations Sustainable Development Goals. The majority of these new investments will likely be in solar and wind power farms. �Hydropower is very important to this matrix,� said Shaker. �However, there is little space to increase its contribution to the national grid since we are already operating a maximum capacity.� Solar power farms have been in the spotlight recently as �When I took office in 2014, the president told me that work continues at the Benban Solar Park, near Aswan. It is electricity is a matter of national security,� said Mohamed projected to have a maximum capacity of 1,465 megawatts Shaker, the Minister of Electricity and Renewable Energy, �MW� when it reaches maximum capacity next year. �It will during the July 22 AmCham Egypt Luncheon held at the be one of the largest solar complexes in the world,� said Four Seasons Hotel at Nile Plaza. �Political support is a Shaker. Currently, Benban generates nearly ninety percent major reason why our national grid can now easily meet local of the nation�s solar energy --980 MW of out of Egypt�s total peak demand. We are also looking at exporting excess ca- solar output of 1160 MW. pacity.� Simultaneously, wind farms are being installed closer to Work on upgrading Egypt�s electricity network started in the Red Sea coast in Zafarana and Gulf of Suez. All of 2014. The national grid at the time generated 24.4 gigawatts Egypt�s wind farms currently generate 1,125 MW of electric- �GW� of electricity. That output was insufficient to meet ity to the national grid. However, its rate of expansion is demand at period, noted Shaker. That is why rolling black- slower than solar energy farms. �We are taking our time with outs for hours at a time, several times a day, were common- that expansion until we tackle some technical aspects in the place during the summer and the month of Ramadan. �Our national grid,� says Shaker. electricity shortage started in 2008. But it was not in major In the long term, Shaker is looking to export electricity cities,� said Shaker. �It gradually got worse because the prob- given that supply is now outpacing demand. �We already lem was never tackled.� signed agreements with many neighboring countries to Accordingly, when Shaker was appointed, the president allow that. We are now working on connecting both grids as tasked him to make sure the lights stayed on always. �We well as come up with a legislative format for cooperation,� were under strict instructions to work fast,� he said. said Shaker. n

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Events

CUSTOMS AND TAXATION Latest trade facilitations aim at streamlining imports

For most businesses in Egypt, facilitating importation is crucial. That was the topic of discussion during the June 24 Customs and Taxation Committee meeting. �We want to make processes Accordingly, Gaber is working with the private sector to try and procedures easy and seamless while reaching a global and minimize these losses. �There are many cases that the im- audience,� says Ismail Gaber, chairman of the General Organ- ported merchandise is already at port or at sea when the regu- ization for Export-Import Control �GOEIC�. latory change is introduced,� he says. �We are working on a The first step is to continue improving and expanding the mechanism that would not necessitate that the goods are dis- government agency�s website. �We are currently working on posed of or returned to their country of origin.� having our website in French as well as Arabic and English,� Other changes include improving facilities at ports for busi- said Gaber. Additionally, we will add a new section that includes ness representatives, including better waiting areas. GOIEC is a list of companies whose import licenses are revoked due to also trying to simplify processes and procedures to release in- transaction irregularities �We are now in the process of annul- coming shipments. �We are working on a logistics one-stop- ling import licenses of around 10,000 companies,� added shop at the Customs Authority,� says Gaber. �That office would Gaber. �The names of these companies will be announced on deal with everything from import request submissions to mak- the website.� ing payments and getting final release forms.� The other topic Gaber highlighted was how companies are However, the government official noted that many of these not aware of changes in the specifications of some imported changes would take time to have an impact in the real world. goods such as leather products and electronics. �Companies �We are not only modifying the administration of imports but have lost a lot of money because they imported goods no longer also must have physical facilities to accommodate these complying with local standard,� he said. changes,� said Gaber. n

HUMAN RESOURCES Authentic Leadership: The Science and the Art

Effective leadership is a mix of art and science. �Leaders have three functions, give orders, direction and protection,� said Ms. Rasha Kenawi, Lecturer of Transformational Lead- ership, Facilitator, Strategy Consultant in Public Policy, Har- passion and sympathy as they are by their logical minds. vard Kennedy School at a AmCham Human Resources Leadership in organizations ought to be authentic in order to Committee Meeting on, �Authentic Leadership: The Science be effective and successful over the long term. The six main and the Art� on June 27th. steps to developing an authentic leadership are: be self-aware A good leader sets the tone in any organization. �Leadership and genuine, set clear values, have a sense of purpose, connect plays a very important role in team effectiveness�, said Kenawi. with people, engage in reflection, and be mission-driven and re- A role of being an effective leader is the ability to continually sults-oriented. Powerful leaders, who follow the six rules of be- adapt to the continuous changing environment and to guide the coming an authentic leader, create a sense of belonging on the team successfully in order to achieve the organization�s goals. team, which is one of the most transformational levers for cre- The authenticity of the leader is more important than the style ating a supportive work culture. with which the leader leads. As a conclusion, leadership is not something people are born To be authentic means to accept one�s faults and short- with, but authentic leadership, especially, requires constant de- comings, as well as to use one�s strengths in bringing the or- velopment and growth, which can take years to develop. Most ganization and the people to successfully achieving the importantly authentic leadership is a type of management style organization�s targets. Authentic leaders have a desire to serve in which leaders act genuine and sincere that is true to who they others, empower the team they are leading and are guided by are as individuals. n

Business Monthly - AUGUST 2019 •51 Chamber.qxp_Layout 1 8/6/19 5:50 PM Page 6

MEMBER NEWS

AUC SODIC

The American University in Cairo (AUC) opened three university career devel- SODIC celebrates the achievement of its citizenship partner, Educate Me, in sign- opment centers at Zagazig University funded by the US Agency for International ing a cooperation protocol with the Ministry of Education. The agreement sup- Development (USAID). The newly opened centers are part of the expanding ports a nationwide learning transformation that includes public, technical, and University Centers for Career Development project aimed at job-search services, community schools and targets students at all grade levels. Educate-Me is a training for market opportunities, and entrepreneurship skills to increase the non-profit organization developing curricula in its community school in Talbeya graduates’ competitiveness. This inauguration comes after the opening of the as well as organizing teacher training for faculty and staff in private and public UCCD of Sohag University, making the UCCD centers eleven opened in Delta schools. Over 45,000 beneficiaries have gained new skills and knowledge from and Upper Egypt. The project aims to reach around one million students in Educate-Me initiatives over the past three years. public universities nationwide.

CAIRO MARRIOTT HOTEL ARAB AFRICAN INTERNATIONAL BANK

Cairo Marriott Hotel & Omar Khayyam Casino joined Marriott International Arab African International Bank (AAIB) is partnering with Maison Pyramide team members from other Egyptian properties for a cycling event. It raised (MP) to support young entrepreneurship talents and contribute to development. EGP 100,000 for Dar Al Sondos Orphanage for Children with Special MP is a global platform nurturing emerging designers. The MPxHN popup pro- Needs. The activity is part of the Business Council’s “Serve 360 “Initiative vides an opportunity for young talents to display their products in one of the during 2019. Fulfilling one of Marriott International’s core values--over iconic stores, allowing them to expand their business, reach a wider customer 15 Marriott Egypt Hosts gathered to raise awareness on the importance audience, and increase their brand awareness. It will feature brands including of community service. During the event, an auction was held to bid for a handbag company Okhtein; straw accessories label Yosuzi, and ready-to-wear stay at one of the Marriott Egypt hotels. firms Nafsika Skourti and Nadya Dzyak.

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NEW MEMBERS

Academic/Educational/Research Consultancy & Development (R&D) Severals Nexford University Wafik Farag Fadl Al Tarzi CEO

Founder and CEO Address: 24 Street 90 North, Address: 1140 3rd St. NE, Suite 200, Fifth Settlement, New Cairo Washington DC, USA Tel: (20-2) 2537-9647 Membership Type Tel: (00-1) 202-280-2049 Membership Type Associate Resident Website: www.nexford.org Associate Non-Resident

Construction/Engineering Information Technology

Fast Trading, Industrial and Treatment Silicon Waha Fouad Saad Attia Adel Danish CEO Chairman of Board of Directors

Address: 11 El Mina El Sharkeya, Address: Smart Village, Building 5B, Raml Station, Alexandria Km 28 Cairo-Alexandria Desert Road, Tel: (20-3) 485-2707 Six of October City Fax: (20-3) 484-4726 Membership Type Website: www.siliconwaha.com Membership Type Website: www.fasttreatment.net Associate Resident Associate Resident

Consultancy Non-Governmental Organizations (NGOs)

Mercer Financial Services Family Health International (FHI 360) Mohamed Faisal El Nezamy Sherif Salaheldin Soliman Country Manager Regional Director for Engagement-

FHI 360 Address: Dubai International Financial

Centre, 01B Gate Precinct Building 2, Address: 1825 Connecticut Avenue Level 5, Dubai UAE NW, Floor 10, Washington D.C., USA Tel: (00-9714) 327-8700 Membership Type Tel: (00-1) 202-884-8000 Membership Type Fax :(00-9714) 327-8686 Associate Associate Fax: (00-1) 202-884-8400 Website: www.mercer.com Non-Resident Non-Resident

Hospitality/Tourism/Travel Real Estate

Saudi Egyptian Touristic ADVA Developments Development Co. (SETDCO) Ahmed Hussein Al Shennawy Riad Loutfi Chairman & Managing Director Chief Executive Officer & Managing Director Address: Prima Vizta Mall, Extension of the Central Axis, Magda Square, Address: Grand Nile Hotel, Garden City Six of October City Tel: (20-2) 2365-1234 Membership Type Tel:(20-2) 3889-6007 Membership Type Fax: (20-2) 2362-1931 Associate Resident Website: www.elshennawy-eg.com Associate Resident Membership Type: Associate Resident

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NEW MEMBERS

Affiliate Members Construction/Engineering Khalid Hamza Category: Affiliate Omar Fouad Attia Deputy Head of Egypt, The Euro- Sector: Financial Sector CDO, Fast Trading, Industrial and Treatment pean Bank for Reconstruction and Development (EBRD) Financial Sector Shaymaa El Nemr Engy Osama Wahdan Category: Affiliate Head of Equities, Arab African Sector: Financial Sector Human Resources and Public Relations Director, Arab Investment Management African International Bank

Maggie Sakr Category: Affiliate Information Technology MNC Head, Credit Agricole Egypt, Sector: Financial Sector Sameh El Mallah SAE CEO, Silicon Waha

Ahmed Rady Category: General Pharmaceuticals/Medical/Health General Manager, Coca-Cola Sector: Food & Beverages Suzanne Mohamed Hassanein Egypt Policy & Communication Lead for MSD Egypt Cluster Karine Abdelnoor Category: Affiliate Real Estate Director of External Affairs - Egypt Sector: Food & Beverages Iman Hammam and Levant, Philip Morris Misr, LLC Marketing & Sales Director, Madinet Nasr for Housing & Development (MNHD) Rami Wahbi Abdelshahid Category: Affiliate Manager Fiscal Affairs Egypt and Sector: Food & Beverages New Replacements in Member Companies Levant, Philip Morris Misr, LLC

Heba Amir Wadie Category: Affiliate Radwa Bahgat Category: Affiliate Tax Partner, Ernst & Young Egypt Sector: Accounting Marketing Director, Danone Egypt Sector: Food & Beverages

Mai Sadek Category: General Essam El Maddah Category: Affiliate General Manager, Hill + Knowlton Sector: Consultancy HR Director, Danone Egypt Sector: Food & Beverages

AbdElAal Elsayed Category: General Robert Hugh Nichols Category: General Managing Director, SGS Egypt Sector: Consultancy Managing Director, 3M Middle East Sector: Industrial Société Générale de Surveillance & Africa, 3M Egypt Trading, Ltd. Machinery & Equipment

Randa Aboul-Hosn Category: Public & Diplomatic Yasser Mamdouh Category: Affiliate UNDP Resident Representative, Sector: Diplomatic Missions Chief Financial Officer Advansys for Sector: Information United Nations Development Engineering Services and Consultancy Technology Programme UNDP-Egypt Country Office John Cable Category: Affiliate Mohamed Bayoumi Category: Affiliate Regional Commercial Manager, Sector: Petroleum Assistant Resident Representative, Sector: Diplomatic Missions Apache Egypt Companies United Nations Development Programme UNDP-Egypt Country Office Khaled Kacem Category: General Chairman, Shell Egypt Sector: Petroleum

Maged Shawky Sourial Category: General Executive Chairman, Beltone Sector: Financial Sector Hassan Ashraf El Kholy Category: General Financial Chairman and CEO, EGYPTAIR Airlines Sector: Transportation

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NEW MEMBERS

Changes

Change in membership Category: Karim Nabih Partner, Youssef Nabih & Co. Category: General Sector: Accounting

Ramez Mohsen Managing Director Egypt, Jordan, Libya & Sudan, Janssen BE SEEN BY Category: General Sector: Pharmaceuticals/Medical/Health

Change in Member Company: EGYPT’S Sharif Elwy Vice Chairman & Managing Director, Arab African BUSINESS International Bank Category: General ELITE! Sector: Financial Sector

Heba Kelada Consultant, Etico Scientific Co. Category: Affiliat Sector: Furniture, Wooden, Metallic & Accessories Book your advertising Ashraf Hassan Wahby spot in the 2019-2020 Board Member OUD, Orientals for Urban Development "OUD" Annual AmCham Category: Affiliate Membership Directory, Sector: Real Estate used by more than 1,900 executives and decision makers throughout the year.

For any change to contact information, please contact the Membership Services Department at the Chamber’s office Tel: (20-2) 3333-6900, ext. 0016 Fax: (20-2) 3336-1050 For further information: E-mail: [email protected] Tel: �202� 3333-6900 - �202� 3333-6915 Mail: [email protected]

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ADVERTORIAL

ADIDAS MAJID AL FUTTAIM

adidas Running announced it had raised $1 million in its 2018 Run For Majid Al Futtaim announced that it has successfully handed over possession The Oceans initiative. This year, adidas aims to raise $1.5 million to continue to its tenants in a ceremony held at City Centre Almaza site. On track to open to invest in the education of future generations on the dangers of marine its doors to the public on September 30 this year, City Centre Almaza features plastic pollution. In 2018, adidas created a global movement with Run 103,000 square meters of unique retail space, dining outlets and exciting For The Oceans to raise money to clean up the world’s oceans. To date, lifestyle experiences to provide excellent moments to Cairo residents and the funds raised have educated 100,000 youths and their families living tourists. City Centre Almaza is set to be home to more than 260 local and in coastal areas affected by plastic pollution to take action as part of iconic fashion and lifestyle brands including Dsquared2, Hugo Boss, Emporio the Parley Ocean School Program. The partnership saw five million pairs Armani, H&M, Hamleys, Zara, Massimo Dutti and Ego, along with exceptional of shoes created using recycled ocean plastic in 2018 alone. dining and leisure facilities.

HILTON CAIRO HELIOPOLIS JAZ HOTEL GROUP

Hilton Cairo Heliopolis is thrilled to announce that “Al Dabké Lebanese The board of Jaz Hotel Group has recently announced the acquisition of Restaurant” won this year TWO awards at the World Luxury Restaurant a new owned hotel to be open July 2019; The five stars hotel “Jaz Maraya” and Spa Awards held in St. Petersburg, Russia on July 6, 2019. Al Dabké located in Madinat Coraya, Marsa Alam the very potential vacation spot was named Best Lebanese Cuisine for 2019 across the Continent of Africa, in the magnificent Red Sea shores, Egypt. By adding the new resort “Jaz while the famous Lebanese Chef, Michel Ghawi was named Best Head Chef Maraya” to the existing portfolio, Jaz Hotel Group will offer more in Egypt. The award firmly establishes “Al Dabké Restaurant” sustained diversified options to the vacation seekers and holidaymakers. Jaz commitment to service excellence and highlights its position as the best Maraya Resort is 4 km away from Marsa Alam International airport. It Lebanese restaurant not only in Cairo on the African continent. offers 202 rooms, including 21 superior rooms, 116 superior family rooms, and 60 deluxe family rooms. The property also boasts five junior suites with private pools.

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ADVERTORIAL

JW MARRIOTT NILE RITZ-CARLTON CAIRO

JW Marriott Hotels & Resorts welcomed Egyptian ballerina Engy El Shazly In celebration of the “Festival of Sacrifice,” The Nile Ritz-Carlton, Cairo has to host a class in collaboration with the artists who established the prepared an array of memorable activities and offers to ensure a joyful Eid Ballerinas of Cairo project at the JW Marriott Hotel, Cairo. The brand filled with relaxation and enticing culinary experiences. For a special lunch, has worked with the ballerina to launch a series of barre workout videos. head to Culina, the all-day dining restaurant invites you to an extravagant The videos shot against the backdrop of three JW Marriott Hotels in the special Eid Lunch buffet on the first and third days of Eid. Also on offer are Middle East and Africa, reinforce the brand’s commitment to well-being, luxury cabanas overlooking the main pool area. At night, guests can dance providing guests with tools and techniques to maintain a healthy lifestyle the night away at Nox rooftop party on the first, second, and third day of no matter where their travels take them. Eid El Adha.

TOYOTA EGYPT ELSEWEDY ELECTRIC

Sharm El-Sheikh witnessed the opening of Toyota Egypt’s first fully Elsewedy Electric announced several projects ranging from energy integrated branch providing sales and after-sales services. The branch solutions to industrial parks, infrastructure, and industry to achieve the will sell Hiace, a pickup truck for the commercial segment. Passenger desired economic prosperity. Over the years, Elsewedy Electric has cars include the 12th generation of the Corolla. Also the mid-size seven-seat adopted an integrated strategy to achieve the objectives set by the Egypt SUV Rush. Toyota Egypt network of branches and distributors covers 2030 Vision, especially those relating to sustainable energy development. many Egyptian governorates including Cairo, Giza, Alexandria, Ismailia To that effect, the Company has developed, financed, and operated two and Al-Alamein with some 54 authorized dealers and service centers plots in Benban solar power park each generating 65 MW. Elsewedy Electric’s offering authorized sales, maintenance and genuine spare parts to its subsidiary Transmission and Distribution “T&D” established a transmission customers across Egypt. line to connect the solar park to the national grid, providing power for hundreds of thousands of homes and businesses.

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Announcements

Jobs

AMCHAM RECRUITMENT CENTER

Code Vacancies Company Name 116804 Light Current Project Manager SUMMIT 116704 Senior Director, Internal Audit The American University in Cairo - AUC 116717 Administrative Assistant CONTRACK FM S.A.E 116691 Security Manager Groupe Scolaire Oasis 116670 Digital Marketing Specialist SMG Engineering Automotive Co.

For more information about these jobs and others, visit: www.amcham.org.eg/recruitment – e-mail: [email protected], Tel: (20-2) 333 88 220 Ext. 1513 - 1514 Fax: (20-2) 333 73 779

Top Tenders

TOP TENDERS FROM TAS

Client Bid bond Description Deadline Specs fees Sectors

Securing of 23 electronic archiving locations using aerosol based fire extinguishing National Post Office, the Requirements & Stores August 27, 75,000 EGP Information & Communi- system. Ref. 24/ 2019/ 2020. Department 2019 EGP 1,000 cations Technology Banking, Finance & Insurance

Delivery of 15 complete mobile substations 60 MVA, 220/ 66/ 22 KV capacity for EETC -Egyptian Electricity Transmission Co., the September 4, 300,000 $ Energy delivery into 3 lots of 5 units. Specs fees are payable to the Development Bank Purchases & Stores Dept., 2019 $ 5,000 Energy of Egypt, Orouba Branch, to EETC A/c No. 02020065929101027..

Beneficiary Sectors Generating Sectors www.amcham.org.eg/TAS For further information, contact the Business Information Center at AmCham Egypt Tel: (20-2) 3338-1050 – Direct: (20-2) 3761-9641 • Fax: (20-2) 3338-9896 • E-mail: [email protected] Website: www.amcham.org.eg • US Website: www.amcham-egypt.org

U.S. Exhibitions Listings are now available on our website:www.amcham.org.eg Exhibitions related to the following sectors are scheduled for the upcoming months.

Sector Show Name Website Embassy Contact Person TEL.

September

Energy - LNG GasTech Exhibition & Conference gastechevent.com Dina Bissada 2797-2340/2330

Environmental Technologies Water Environment Federation Technical weftec.org Rania Mekhail 2797-3487

Energy - Solar Solar Power International solarpowerinternational.com Dina Bissada 2797-2340/2330

For more information about these exhibitions, please contact: The Commercial Service at the U.S. Embassy Tel: (20-2) 2797-2330/ 40 - E-mail: [email protected]

*Please refer to the Commercial Service at the U.S. Embassy for any updates on the exhibitions.

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EXCLUSIVE OFFERS

Exclusive Offers

BARON HOTELS & RESORTS CAIRO MARRIOTT HOTEL

Baron Hotels & Resorts has the pleasure to offer a 15% Discount on Online Accommodation Is pleased to extend its offer of 15% discount on the best available room rates and a Rates, to AmCham members, in addition to the below privileges: 15% discount on Food and Beverages at all Cairo Marriott outlets (This offer does not The offer is applicable on Baron Palace Sahl Hasheesh, Baron Resort Sharm El Sheikh, require having a room at the hotel) Baron Palms Sharm El Sheikh and Baron Cairo. 25% discount on laundry during your stay - Rate is for Bed and Buffet Breakfast at Omar’s Cafe, subject to availability and prior ***Discounts will be granted for AmCham members upon reservation, valid at any day of the week. presenting their AmCham 2019 membership card*** - Rate is subject service charge and taxes.

- Offer is valid for the members only and has to be reserved through and used by the For more information, please contact: member for a maximum of two rooms per stay. - Members can only accompany their spouse and children during their stay. For the reservations in Baron Palace Sahl Hasheesh and Baron Resort Sharm El -This discount is not applicable for more than 5 pax Sheikh): Emad Fathy Tel: (20-2) 2241-9206/207 Ext: 225/ 286/ 117; 2414-0929; 2290-1836 ***Discounts will be granted for AmCham members upon For the reservations in Baron Hotel Heliopolis, Cairo: presenting their AmCham 2019 membership card*** Abdalla Hussein Tel: (20-2) 2291-5757 For more information, please contact: Emails: [email protected]; [email protected]; Mai Moenes [email protected]; [email protected] Phone: (202) 27394647 Ext. 8808 • Mobile: (20-12) 0434-0648 Email: [email protected]

Please visit AmCham Cyberlink on http://www.amcham.org.eg/cyberlink Please visit AmCham Cyberlink on http://www.amcham.org.eg/cyberlink for more information on AmCham benefits for more information on AmCham benefits

This offer is valid until December 31, 2019 This offer is valid until December 31, 2019

HILTON WORLDWIDE SEMIRAMIS INTERCONTINENTAL HOTEL

Hilton Worldwide is delighted to offer AmCham Members an exclusive discount on Semiramis InterContinental Hotel is pleased to extend its offer to AmCham accommodation and food & beverages at the Hilton Cairo Zamalek Residences, Hilton Members on Accommodation, Restaurant & Spa: Marsa Alam Nubian Resorts, Hilton Luxor Resort & Spa and Ramses Hilton. City view room: L.E 1,950, Double city view room: L.E 2,200 Up to 15% Discount from Hilton Worldwide (Egypt Branch) to AmCham Members on Nile view Supplement: L.E 350, Club Floor Supplement L.E 700 Accommodation and Food & Beverages Executive Suite: L.E 5,300 In addition to a 20% discount on the below restaurants all weekdays ***Discounts will be granted for AmCham members upon Sabaya, Pane Vino, The Grill, Birdcage *New, The Indian along the Nile *New, presenting their AmCham 2019 membership card*** Nile Terrace *New Except Night & Day Friday Brunch, Takeaway And 15% discount off all Spa treatments. For more information, please contact: Hilton Marsa Allam: Amir Maher • Phone: (20-65) 3740-060 ***Discounts will be granted for AmCham members upon Email: [email protected] presenting their AmCham 2019 membership card*** Hilton Luxor: Reservation Department Phone: (20-95) 2399-999 • Email: [email protected] For more information, please contact: Rooms Information and reservations: Hilton Cairo Zamalek: Reservation Department Mahmoud Abou Hussein Phone: (20-2) 2737-0055 • Email: [email protected] Office: (20-2) 2798-8000 • Fax: (20-2) 2798-8015 Ramses Hilton: Basma Zeidan E-mail: [email protected] Phone: (20 2) 2577-7444 • Email: [email protected] Dinning Information and reservations: F&B reservation desk • Office: 2798-8000 - Extension: 1151 Please visit AmCham Cyberlink on http://www.amcham.org.eg/cyberlink for more information on AmCham benefits Please visit AmCham Cyberlink on http://www.amcham.org.eg/cyberlink for more information on AmCham benefits This offer is valid until December 31, 2019 This offer is valid until December 29, 2019

The BUSINESS MONTHLY Classifieds section is open exclusively to AmCham member companies. Text ads are £E 150 for up to 30 words, £E 5 per additional word. Abbreviations, phone numbers and e-mail addresses count as one word. Display ads are £E 100 per cm in height, per column (max. 20cm in combined total height). Discounts are offered for regular advertisers and repeat bookings. Insertion orders, payment and ad content must be received by the 15th of the month preceding publication. All classified ads subject to editorial approval. For more information, or to place a classified ad, contact Amany Kassem at (20-2) 3338-9890, fax (20-2) 3338-0850, e-mail: [email protected]

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Media Lite

A Glance At The Press

“How much would you pay to know the reasons behind the Britsh Airways decision to suspend flights to Cairo?”

Al Masry Al Youm July 23

Media Lite is a satirical review of items published in the local press. All opinions and allegations made in them belong solely to the original publications and no attempt has been made to ascertain their veracity.

Case of the missing rug Spiders to space Matchmaking for Visitors to the newly opened Naguib Social media has been aflame with academicians Mahfouz museum were outraged when news of Egyptian youth, Amr Mo- Looking to expand her business, a Ph.D. they couldn�t find his famous carpet any- hamed who allegedly would be getting holder in psychology created a match- where on display. Tunisian president Zine on a moon-bound space shuttle within making website solely for singles with at El Abidine Ben Ali gave the rug to the a few months. Along for the ride would least two masters degrees or a doctoral di- Nobel Prize winner for literature in the be his pet spider, according to social ploma. Those working on their PhDs are 1990s. When Mahfouz family members media posts portraying Mohamed wea- also eligible to join her exclusive network questioned the museum�s management ring a spacesuit. Next to him in the along with university professors and their over the whereabouts of the rug, curators photo was a spider enclosed in a plastic assistants. According to the website�s said the carpet was sent to an Al Azhar capsule. founder, she personally investigates every area dry cleaner as it was disfigured with Actual circumstances are far less dra- submission to certify the love-seeking ap- multiple stains. matic; the Egyptian youth in question plicants as bona fide academicians. The The museum management was con- was only one of many contestants en- reason she started that website was the founded further when they discovered rolled in Youtube�s space labs competi- realization that serious scholars lack time the cleaners mislabeled Mahfouz�s rug, tion� a program for teenagers launched to socialize to find a suitable spouse. sending it to another client who had in cooperation with NASA and its Eu- Additionally, it�s believed that degree dropped off a similar carpet. Making ropean counterpart agency. To win, holders have personal match require- matters worse, the cleaners can�t track to participants must design an experi- ments significantly more specific than whom they gave Mahfouz�s rug saying ment to perform onboard the Inter- those of non-academicians. 29 women they had yet to implement a digital inven- national Space Station. Mohamed won and 21 men have enrolled in the web- tory system. To hide their shame over the this competition in 2012. His project site since it launched in late June. Two incident, museum management pur- proposed to investigate how spiders act clients have become engaged while one chased another rug putting it in place of in a weightless environment but complaint was filed regarding the in- the original priceless item in the futile neither the arachnid nor Mohamed ac- compatibility of the partner selected hope that no one would notice. tually are boarding the shuttle. by the website. Al Shorouk News, July 21 Al Masry al Youm, July 23 Al Tahrir News, July 17

60• Business Monthly - AUGUST 2019

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