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20.7% INCREASE IRAN'S EGYPT TO ISSUE SMART Flash IN WAGES IN NEW PETROCHEM CARDS TO FUEL STATIONS BUDGET REVENUE SURGES Egypt will begin using smart cards in the next few MILITARY The debates of the Shura weeks to distribute gasoline and diesel, Oil Minister EXERCISES Council's financial and eco- TO $2B. Iran has earned up to $2 Sherif Haddara said, in a step towards meeting IMF "EAGER LION nomic committee, under terms for a loan, Reuters said. Ashraf Badr Eddin, disclosed billion in revenue from its 2013" petrochemical projects since The first smart cards will go to fuel stations and then the that wages allocations in the programme will widen to include all car owners. From Ahmed Foda new budget increased by 20.7 the beginning of the new There are a lot of military Iranian year which started on The government is turning to smart cards to reduce the per cent to surge to L.E. amount of money it spends on subsidised energy products, drills being conducted in the 175.159 billion, against L.E. March 21, 2013, said a report Middle East recently, the lat- citing a top industry official, which eat up a fifth of all state spending. 142.672 billion in the current The International Monetary Fund is asking Egypt to act to est of which is the Eager budget, up by L.E. 29.532 bil- TradeArabia News Service Lion to be hosted by Jordan said. reduce its budget deficit in return for a $4.8 billion loan. lion after the tenure of 400.000 Egypt now sells many of its energy products at prices sub- within the coming few temporary workers. Five petrochemical projects weeks. More than 15,000 have come online during the stantially below the cost of production. Badr Eddin said that wages The government will issue cards to tanker trucks and 2,870 forces from Jordan, Saudi acquire 35 per cent of the period, reported the semi-offi- Arabia, Iraq, Jordan, cial Fars news agency. gasoline stations in June to regulate the distribution of fuel. aggregate revenues in the new This will help the distributors get used to smart cards and Lebanon, Bahrain, UAE, budget, but there is a great "These projects have raised work smoothly with the public when the scheme is extended Yemen, Qatar, Egypt, defect in the wages structure nameplate production of petro- to all car owners, Haddara told a news conference. Pakistan, Italy, Britain, in Egypt. chemicals by 2.728 million (Cont. on page 2) France, Canada, the US, IN tons," revealed National Turkey, Poland and Czech $800M. Petrochemical Company's OIL PRICES SET FOR BIGGEST will take part in the two- INVESTMENTS TO managing director Abdolhosain Dealers in Emirates markets. WEEKLY LOSS week military drills, a UPGRADE EAST Bayat. Oil is poised to post its biggest weekly loss In more than Jordanian military official "Since 2005, 51 petrochemi- a month, with Brent edging down towards $102 per bar- said. PORT SAID MIDDLE EAST CEOS cal projects have come on rel on Friday - pressured by ample supply and a sluggish The war games will CONTAINERS stream with $22 billion invest- economic recovery that could dent demand for fuel, address unconventional ment raising the nominal pro- Reuters said. threats facing international STATION OPTIMISTIC ON ECONOMY duction capacity of petrochem- Crude inventories in the United States are near record lev- security. Some world coun- Managing Director of Ebba A majority of chief executives in the Middle East are very confident about prospects icals by 38 million tons per els as the world's top oil consumer produced more from tries are seen absent from Maersk Containers Company year, said Bayat on the side- these exercises and appar- for business and economic growth over the next 12 months, according to a latest sur- shale, while shrinking factory activity in China capped fuel Klaus Larsen said that his lines of the inauguration of a demand growth in the world's No.2 user. ently they are not allies. company invested more than vey, Agencies said. hydrogenation unit at Tabriz , Improved US jobs and home sales data also sparked wor- These drills show for sure $800 million to upgrade infra- In conjunction with the Worlt.;=....:onornic Forum on the Middle East and North Africa 2013, PwC petrochemical plant. ries that the Federal Reserve could soon scale back bond pur- that there are military structure and utilities of East Middle East revealed the results of the 2013 Middle East CEO Survey titled "Matching confidence "In case of providing fman- chases and tighten liquidity in markets. preparations for getting Port Said containers station to with competitiveness." cial needs, production capacity Brent eased 2 cents to $102.43, stretching its losses into a involved in any sudden war be able to receive such giant The depth of confidence (53 per cent) sets Middle East CEOs apart from any other region in the of petrochemical products will fourth session. US crude inched down 9 cents to $94.16 a that might break out in the ships. The containers company world (36 per cent). This relative optimism is expressed both in terms of confidence about their com- hit 100 million tons in 2015," barrel. Mideast region .The ques- in East Port Said Port received panies' growth and the outlook for wider economic growth. In common with the global trend, confi- he added. Both were on track for a more than 2 per cent drop this tion remains is the coming last Saturday Ebba Maersk, dence among CEOs in the region is down compared to last year's survey (60 per cent). Commenting IMF CHIEF AVOIDS week - their biggest weekly drop since the week ended April war will erupt in the Mideast giant containers ship coming on the findings Hani Ashkar, Middle East Deals Leader at PwC, said: "The high confidence percent- 19. (Cont. on page 4) region or in the Korean from the Far East to Europe. age of Middle East CEOs led to a positive outlook for the economy. Compared to their global coun- CHARGES Peninsula? And Is the Eager GCC TO SPEND terparts, Middle East CEOs are expecting a major employment headcount increase with over two IMF chief Christine DUBAI ICD PLANNING TO Lion is a lion or an eagle? thirds expecting a five per cent or more rise." Lagarde avoided immediate $60B. ON GAS Domestic markets present a more open and competitive environment now than in the past. Around charges last Friday but was BOOST $2B. LOAN Ahmed Foda Investment Corp-oration of Dubai (ICD), the holding 44 per cent of the region's CEOs see organic domestic growth as a primary driver in 2013. named an "assisted witness" PROJECTS company for some of the emirate's best-known compa- GCC states, particularly Alternatively, 25 per cent view growth stemming from new operations in foreign markets and 13 per after French prosecutors COMMENT cent from new mergers and acquisitions (M&A), joint ventures or strategic alliances. nies, may increase the size of a $2 billion loan after signif- the UAE, Qatar and Saudi grilled her for two days over icant interest in the deal from lenders, banking sources EGYPT'S CREDIT Arabia, plan to award con- Many CEOs are positioning their companies to take advantage of emerging market opportunities a state payout to a disgraced that exists in Africa and Asia. A quarter of the Middle East CEOs appear to have their sights set on said. RATING CUT POSES tracts worth over $68 bil- tycoon when she was finance Strong demand for the loan is a sign of renewed confi- THREATS TO lion during the next five this 'south-south' opportunity as their main route to growth in the period ahead. minister, AFP said.Lagarde Thirty-eight per cent of CEOs count M&A and strategic alliances, among the top investment prior- dence among bankers in Dubai, which is recovering from the FOREIGN years to raise gas produc- was questioned for a total of aftermath of a real estate crash and sovereign-linked debt cri- ities for their companies in the upcoming 12 months. A massive 73 per cent target those M&A's and 24 hours by prosecutors BORROWING tion, according to a report. sis which followed the global financial meltdown of 2008, After less than 24 hours Gas will overtake oil in alliances in their own region, followed by 36 per cent for Africa, 27 per cent for South-East Asia, and working for a court that 27 per cent for Western Europe. Reuters said. from the announcement demand in the Middle East probes cases of ministerial The loan has been marketed since mid-March, with 51.6 misconduct over her 2007 made by the Central Bank of after 2025, with 50 per cent MEDITERRANEAN REFINERS BATTLE CRUDE SHORTAGE billion of the $2 billion target already pledged by the eight Egypt (CBE) on the rise of of all energy demand coming Sanctions against Iranian oil, Iraqi flow outages and a change in Russian export routes have handling of a row that result- arranging banks, one of the sources said, according to ed in 400 million euros Egypt's foreign reserves by for gas in 2040, said a white left Europe's recession-hit Mediterranean refiners short of their preferred oil grades at a time ($515 Reuters $1 billion to reach $14.3 bil- paper released by Deloitte when the rest of the world has plentiful supply. million) being paid to contro- ICD is currently deciding whether to increase it from the versial lion in April, the rating titled 'Middle East Energy Oil firms are betting shortages of previously abundant and cheap sour, heavy crude are here to stay, business figure original $2 billion target, with the transaction set to close in agency Standard and Poor's Bernard Tapie. -- and Resources: Managing had news for refiners who set up their plantsfor the grade in the-days when fight. sweet barrels-were the next couple of weekg. downgraded the country's scarcer and more expensive, Reuters said. "My status as assisted wit- scarcity for the future'. - The final deal size could be as high as $2.5 billion, the sec- long and short term credit ness is not a surprise, Most National Oil The deficit may even worsen in the months to come as Russia sends more oil to Asia and Europe's she told ond banker said, although nothing has been decided. rating to "CCC+" from "B-" Companies (NOCs) in the north while major trading houses have built a large position in the Mediterranean, allowing them to reporters as she left the Paris (Cont. on page 4) and :C" from "B" respec- Middle East already have dictate prices. courthouse late on Friday. "I tively. Such a cut has been a multi-billion dollar invest- That forces refiners such as Italy's Eni, traditionally reliant on Russian Urals, Iraqi Kirkuk and have always acted in the best WORLD BANK FUNDS shock for the local business ment plans for gas explo- Iranian crude grades, to look for alternative and expensive options putting them under further strain public interest and in accor- PROJECT TO UPGRADE community and importers, ration and production, it said, in a recession-hit region. dance with the law," said in particular, amidst con- according to TradeArabia This week, Eni won Russian oil firm Surgut's tender for I .2mn tonnes of Urals crude loading from Lagarde, 57, who has consis- CAIRO-ALEXANDRIA cerns over the possible News Service. the Baltic ports of Primorsk and Ust-Luga in July-December. tently denied any wrongdoing. increase of the opening of Meanwhile, despite a Eni has never before committed to long-term oil deals in the Baltic and took oil from Europe's north (Cont. on page 4) RAILWAY LINE documentary credit costs. to its plants in the south only sporadically when market freight and pricing conditions favoured such The Egyptian Railways Authority signed a contract Downgrading Egypt's credit growing focus on renewable OIL FALLS BELOW with an international company to install the most and alternative forms of ener- operations on a one-off basis. rating is likely to pose tighter "The Mediterranean will be structurally short for a long time. Russia has built a big surplus of $94 A BARREL advanced system of communications and electric signals restrictions on importing, gy, oil and gas will account The price of oil fell in the Cairo-Alexandria line, the cabinet said on Sunday. for about 60 per cent of glob- pipeline exports capacity to Asia and the Baltic. Now it has to fill it to pay back the initial investments. Manar Ghoneim wrote So things look bad for the Med," said a source with Eni. Monday as traders concerned The project will also include building a central control al energy demand in 2040, up (MEN) To outbid the rivals at the tender, including oil majors BP and Total, the Italian firm had to pay a about global energy demand tower to coordinate train traffic. Such downgrade by the glob- from 55 per cent in 2010, it premium of 60 cents per barrel to a pricing formula that Surgut uses to award tenders. took profits ahead of econom- The World Bank will fund the project with LE938 million, said. al rating agency seeks to raise (Cont. on page 4) ic data from China and the the cabinet said in a statement. suspicions over Although oil is still pro- United States, AP said. The national railway authority also signed an agreement to jected to remain the primary PER CAPITA SUBSIDY SHARE DOUBLED SEVEN FOLDS IN Egyptcapability of realising Benchmark oil for July have a specialised European company supervise the imple- the economic reform pro- fuel, significant advance- SEVEN YEARS delivery was down 59 cents to mentation of the project. inents in technology will gramme committed by the The per capita share of subsidy has surged seven folds during the period from 2004-2005 to $93.66 per barrel at late after- The Egyptian government is facing criticism for failing to government, according to Amr cause natural gas to overtake 2011-2012, increasing from L.E. 197 to L.E. 1658. noon Bangkok time in electron- offer a plan to develop the transportation sector in spite of coal as the number two fuel Hassanein, CEO of Middle According to the Central Agency for Public Mobilisation and Statistics (CAPMAS) data, the value ic trading on the New York numerous train accidents, the worst of which left 50 school- East Rating and Investors source, according to of subsidy, grants and social benefits in the budget increased from L.E. 29.7 billion to L.E. 150.2 bil- Mercantile Exchange. The con- children dead last November. Deloitte's white paper. Service (MERIS). Thus, the lion during the said period, up by four folds, a matter which stresses the importance of reconsidering tract fell 10 cents to $94.15 a Prime Minister Hisham Kandil and Transportation cut would likely affect not "Although the share of the subsidy system in Egypt to make sure that subsidy makes its way to those who truly need it. barrel on Friday. Minister Hatem Abdel Latif attended the contract signing of demand for oil and gas is set only winning the long-delayed The oil product subsidy reached well over L.E. 95 billion in 2011-2012, up by 204 per cent as com- Analysts said traders took both agreements in Cairo. International Monetary Fund to rise, it is important to note pared with that in 2004-2005. profits before May unemploy- This step comes as part of the government's plan to devel- (IMF) loan but also other loans that alternative energy Thus, oil products subsidy which goes to the rich constitutes 70.8 per cent of the subsidy value in ment data released which in op the infrastructure of railway lines and increase safety fac- linked to striking the agree- sources such as nuclear, the state's budged while the subsidy allocated for food and supply commodities needed by the poor Washington, which should help tors to provide a better service to citizens. ment with the Fund, Hassanein wind, solar and biofuel will did not surpass 22.4 per cent of the aggregate subsidy value in 2011-2012, the CAPMAS said. clarify the state of the recovery Implementing the whole project will take up to four years, assessed. also take on an increasingly CBE: DOMESTIC CURRENCY LIQUIDITY RISES IN FEB. in the world's biggest econo- the statement reported. Explaining, Hassanein said significant role in meeting the A recent statistical report by the Central Bank of Egypt (CBE), issued Sunday, said domes- my. France's and Germany's ambassadors to Egypt attended that such rating cut is likely to world's energy needs in the tic liquidity has risen to L.E.10211 trillion at the end of February, with an increase of L.E. 116.9 "We're starting to build con- the contract signing as well. have a direct impact on pro- future," said Kenneth billion or 10.7 per cent from July to February 2013. fidence in the economic data, France has helped in funding preliminary studies for the longing the already marathon McKellar, energy and The report said the surge in domestic liquidity increased money supply by L.E. 34.3 billion or 12.5 but that's not going to stop any- Cairo-Alexandria project with $650 thousand, the French negotiations with the global resources leader at Deloitte in per cent and an increase in quasi-money by L.E. 82.6 billion or 10.1 per cent. one from taking money off the embassy said in a statement. lender. If the long requested the Middle East. The rise in money supply resulted from the increase in the currency in circulation outside the bank- table ahead of a long week- EGYPTIAN-INDONESIAN $4.8 billion loan had been fur- With the nature of oil and ing system by L.E 23.6 billion or 12.7 per cent and the growth in deposits in the local currency by end," Carl Larry of Oil ther delayed, Egypt's financial gas production diversifying, L.E. 9.7 billion or 12.1 per cent. Outlooks and Opinions said in PARTNERSHIP TO and economic position would strategies shifting to the a market commentary, referring PRODUCE AUTOMOBILE TYRES have been unfortunately weak- unconventional, and an PROPOSED BUDGET FOR 'GOODS & SERVICES" INCREASED to the Memorial Day holiday in Behira Governor Mokhtar el-Hamalwi, Indonesian ened in negotiations, the same unprecedented rise of energy TO LE30.7B. the U.S. on Monday. ambassador to Egypt Nurfaizi and other senior officials expert warned. demand globally, research Chairman of the Financial and Economic Committee at the Shura Council Mohamed Abdel- The global economic picture discussed Sunday means of boosting and attracting for- However, Hassanein believes and development (R&D) will Maged el-Fiqi said that the proposed budget for the second chapter "Purchase of goods and was clouded last week by a pri- eign investments to the governorate. that the IMF has its own calcu- play a crucial role in the services" in the state budget for the fiscal year 2013/2014 increased by L.E. 2 billion to reach vate survey showing weak These include the setting up of an Egyptian-Indonesian lations and forecasts which longevity of the industry. L.E. 30.7 billion. Chinese manufacturing. That partnership project in the field of automobile industry at give it a full-detailed picture of This is especially significant This came at a meeting of the committee to discuss the second chapter of the state budget. raised questions about the $400 million investments (75 per cent in foreign components Egypt's economic conditions to the Middle East, where Fiqi noted that the goods and services include raw materials, fuel, oil and spare parts. He also crit- strength of oil demand in the and 25 in per cent local ones). The project will be established far from the credit rating cut capacity building in local icized allocating L.E. 906 million in this chapter for educational programmes at the Egyptian Radio world's No. 2 economy. on 8/ feddans in Kafr el-Dowar. by the global agencies. knowledge capital is critical and Television Union (ERTU). The project aims Yet, the downgrade of to the development of the to produce 3,3 mil- Egypt's credit rating does not socio-economic fabric of the INITIATIVE FOR lion tyres with esti- mean that it may fail to re-pay mated annual sales at the due debts but it would be region, the paper said. I PRODUCING FIRST Deloitte's whitepaper also $185 million of vulnerable to greater risks in explores the challenges fac- EGYPTIAN CAR which 75 per cent term of paying the future debt ing the energy industry, Minister of Military will be earmarked for installments, Hassanein which include the serious Production Reda Hafez has said exportation and 25 argued. The credit rating cut issue of skills shortages. This that co-ordination is underway per cent export-ori- may only add further costs to is a global problem but even with the Ministry of Investment ented for the local foreign borrowing, he added. more pronounced in the to manufacture a 100 per cent market. The project On the same score, Ahmed Middle East where students Egyptian car, adding that negoti- is expected to double Al-Ghandour, a senior official across the region are choos- ations are underWay with sever- the tyres production at the United Bank, said that ing to pursue business careers al countries including France, to 6,6 million to be cutting Egypt's credit rating to outside of technology, physi- India, Malaysia and china as exported to the North "CCC+" means that it is close cal sciences and technical well as Fiat Company to manu- of Africa, Arab and to the countries which fail to process industries. These facture a car that suits the European countries. meet their financial commit- The governor ments. However, Egypt never trends are stimulating high Egyptian market. demand for a powerful corn- noted that the project failed so far to pay its foreign The Minister also spoke of will provide job debt installments, he said, not- bination of technology and negotiations for merging Al- opportunities to the ing that the recent downgrade talent in the Middle East. The Nasr Manufacturing . Company governorate resi- is "unfair" and "hasty." Such a restructuring of the existing to the ministry of Military pro- dents and the expect- step is likely to have a nega- talent pool, with preference duction. ed annual profits of tive effect on banks, adding for local hires rather than However, Hafez said that the the state are estimat- further burdens on foreign expensive expatriates, is yet Ministry does give a high priori- ed at $30 million that lending and giving a negative another obstacle to bringing ty to manufacturing weaponry to will be doubled outlook on Egypt more than it in the required skills in the provide for the needs of the Dealers in New York stock Exchange. along with the pro- should, he complained. short run, it said. Armed Forces and police. duction. (Cont on page 2 )

MAY 29 , 2013 2 INCREASING FOUR MORSI DISCUSSES WITH COMMUNICA- GAS MINISTRIES SIGN HAILEMARIAM THE EFFECTS TION MINISTER : PRODUCTION PROTOCOL FOR EGYPTIAN BY 300 M. CUBIC `BEST PRODUCT' OF RENAISSANCE DAM ON A co-operation protocol INVESTMENTS IN FEET was signed between the EGYPT BROADBAND HIT Deputy Chairman of the ministries of supply, The President stressed the importance of achieving Egyptian Natural Gas $6.4B. investment, agriculture integration among the peoples of Africa. Addressing Communication and Holding Company and local development for the extraordinary summit of the African Union last (EGAS) Taher Abdel Information Technology continuing the initiative Sunday in the Ethiopian capital, The President said we Rehim said that all the Minister Atef Helmi asserted new natural gas agree- of the best product for the are in need of addressing our problems and to be aware the necessity of benefiting ments are directed to the best people, which aims at that low level of develop- from the technological infra- local market with the aim striking price balance for ment was one of the key structure capabilities such as of augmenting the added food commodities in the reason of the conflict activating the broadband ini- value of gas production Egyptian markets. from which the continent tiative at $2,4 billion invest- Minister of Supply has suffered a lot. ments for the first 2-year which will be increased phase and the government this summer by 300 mil- Bassem Ouda said last We are confident that a Saturday that the protocol investments reach $4 billion, lion cubic feet daily. genuine settlement requires adding that Egypt ranks sec- He added that the gas pro- provides for offering food an all out approach topped products of high quality ond among the would coun- duction will be increased by development that could tries which have maritime through a number of fields and proper prices adding be achieved through an in - which will access production that these commodities will cables, with a number of depth discussion of our cables hitting 18. The minis- for the first time or through Egyptian Stock Exchange be offered in the outlets the standing fields that are affiliated to the ministry of problems and a full realiza- ter will inaugurate a confer- being developed. investment. tion of our potentials, the ence on broadband in Egypt Production of the German BOURSE LOSES LE2.2B. AT BEGINNING OF WEEK He added that he agreed President said . between reality and future. company field in Desok will . Addressing the session The number of internet users with the ministers of local hit around 32,62 million in start early in July instead of TRADING development, agriculture held by the NEPAD steer- September with a production Egypt's bourse recorded a collective decline at the beginning of the week's trad- ing committee, President Egypt and the number of and investment to start the internet users through mobile capacity of 50 million cubic ing on Sunday, hit by lack of liquidity and driven by selling operations by unmoti- ten-day campaign , to be Morsi called for a compre- feet of gas daily, to be vated foreign investors. hensive review of partner- phone hit 11,06 million. increased afterwards to 100 followed by another one on The market capital lost L.E. 2.2 billion to reach L.E. 258.5 billion. The EGX 30 bench- June 26 and last for the ship in development in Mohamed Morsi 80% RAILWAY million cubic feet the official mark index went down 0.81 per cent to close at 5,300.16 points. said. Two new wells affiliat- month of Ramadan. Africa as this will give a CARRIAGE ed to the Pharaonic The broader EGX 70 index of the leading smaller and mid cap enterprises (SMEs) EGYPT TO chance to adopt new policies that serves the African inter- dropped by 0.84 per cent to 443.66 points. The all-embracing EGX 100 index also ests and supporting future development plan. President WORN-OUT Petroleum Company in RETURN TAXES Transport Minister Habi, are also expected to slipped by 0.8 per cent to close at 745.46 points. Morsi called for expanding cooperation among the states Hatem Abdul-Latif said increase the daily production EGYPTIAN AMBASSADOR TO COLLECTED of the south in order to benefit from the successful exper- Sunday that 80 per cent of by 80 million cubic feet. HUNGARY HIGHLIGHTS FROM QATAR iments of our friends in Asia and Latin America. the railway carriages are This in addition to four other The President renewed Egypt's keenness and commit- worn out, adding that meas- wells affiliated to Petrobel IMPROVEMENT IN RELATIONS WITH BUDAPEST BANK DEAL ment to exerting all possible efforts to achieve the com- ures will be taken to import Company in al Temsah plat- Egypt will refund taxes 760 carriages from China at form which will increase Egyptian ambassador to Hungary Asharf Mohsen said last Saturday that rela- mon goals of the African continent, enhancing African sol- tions between Egypt and Hungary witnessed positive improvement at all levels. collected from Qatar idarity and achieving regional integration. the cost of $450-500 million. production by 150 million National Bank 's acquisi- cubic feet daily and another Mohsen made the comments during the participation of the Egyptian embassy in a cer- President Morsi is due to address today the inaugural The minister signed a con- tion of National Societe tract for turning the mechani- well in Edku, Rashid that emony to mark the 50th anniversary of the establishment of the Organisation of African Generale Bank to share- session of the meetings of the 21 st session of the African will increase production by Unity that is now known as the African Union. Union which will be attended a large number of the cal signals of Cairo- holders last Sunday, an Alexandria railway line into 40 million cubic feet, he During the celebration, Egyptian diplomat met with Hungarian Minister of Foreign official from a clearing African Heads of State and Governments. added. , eclectic ones with the pres- Affairs Janos Martonyi who said he was glad to be welcomed at the event highlighting company told Reuters last The French and Iranian Presidents will attend the festi- ence of Prime Minister FRANCHISE development in Africa as stronger than before. Saturday. vals that will be held on the occasion of the Golden Jubilee Hisham Qandil and the SYSTEM IN After their short meeting, Mohsen pointed out Egypt's interest in increasing the num- The clearing company of the Organisation of African Unity. Representative of the ber of Hungarian tourists, voicing hope to raise the number to 59,000 tourists this year in will return 10.2 million On the sidelines of the African Summit, President Morsi Spanish-French company. EGYPT SECURED an attempt to reach the highest level achieved in 2010 when Cairo received around Egyptian pounds ($1.5 mil- met Ethiopian Prime Minister Hilemariam Desalign with Abdul-Latif noted that the 55,000 JOBS 72,000 tourists. lion) total in taxes it col- whom he reviewed means of developing bilateral relations ministry's budget of the pres- The franchise system has lected from NSGB share- in all fields. ent year hit LE15,7 billion boosted in the Middle East PLAN TO RATIONALISE holders, said Tariq Abdel Dr Mohamed Baha Eddin, the Minister of Water with a 20 per cent rise against and North Africa, especially ENERGY USE IN ALL AIRPORTS Bari, managing director of Resources said talks dealt with the effects of Renaissance the year, adding that length of in Egypt, Commercial Civil Aviation Minister Wael el-Maadawy asked Egyptian Holding Company for Misr for Central Clearing, Dam on Egypt, adding the Ethiopian Prime Minister the railway lines hit 5,000 kilometers. Counselor of the US Airports and Air Navigation Chairman Magdy Abdel Hady to develop a plan on Depository and Registry. stressed that Ethiopia was keen to achieve the common embassy in Cairo Ann reducing and rationalizing of energy use in all airports of Egypt, including Cairo The Islamist-led govern- interests of Egypt and the Sudan. SUEZ CANAL Bacher said. ment had shocked foreign Franchise companies in International Airport. Morsi Meets Bashir APRIL REVENUE The plan would achieve a reduction of operation rates by not less than 20 per cent. El- investors in March when it Egypt have generated about imposed a 10 per cent tax President Mohamed Morsi met Sudanese President DIPS 6.2% 55,000 jobs at a total annual Maadawy stated that the plan,is a contribution from the Ministry to the concerted efforts Mohamed Al Bashir. The meeting dealt with means of sales of L.E. 15 billion, on investment gains from YEAR-ON-YEAR in all Sectors of the country to rationalize energy use. the takeover by QNB of 'enhancing bilateral relations between Egypt and the Bacher said. Revenues of US He noted that the plan targets raising air conditioners' temperature from 17 to 20 Sudan in the economic, commercial and investments Revenue from Egypt's franchise companies in Egypt local lender National Suez Canal declined 6.2 per degrees Celsius as well as decreasing illumination in all airports' terminals during non- Societe Generale Bank fields. represent about 45 per cent of peak times without prejudicing the security of the airports. cent in April from a year franchise companies in (NSGB), Egypt's second- Presidential Spokesman Ihab Fahmy said the two lead- earlier to $406.1 million, Egypt, Bacher said at the end EGYPT TO ISSUE SMART CARDS TO FUEL STATIONS largest private sector bank ers agreed on the importance of convening the meetings of Egypt's State Information of a visit of a US commercial (Cont. from page 1) by market value. the Joint Higher Committee at the level of the two heads Portal said. team to Egypt. Scott Lehr, Car owners throughout the country will get the cards in July and August. Any fuel sold QNB, one of the most of state and building on the positive results, which In April 2012 it was $433.1 the VP Dev. and Membership acquisitive Gulf Arab stemmed from President Morsi's visit to the Sudan in order million, while in March 2013 4914t.side he,4mart card system will be sold at cost and not at the free market price, he said. of the International Franchise:: not - dy when the government w i wally start selling the cards. lenders, is 50 per cent to satisfy the ambitions of the two brotherly peoples. it was $407.4 million. The Association who led the dele-,, The government has repeatedly, postponed iinplementatioi eX the smart card system, owned by the Qatar Meantime, the two Heads of State agreed on the impor- waterway is one of the coun- gation, said the Egyptian mar wary of taking austerity measures before a parliamentary election expected for later this Investment Authority, a tance of expediting the inauguration of the eastern land try's main sources of foreign ket is promising and could sovereign wealth fund that road that will help facilitate the movement of commodities currency, alongside tourism, offer good opportunities for year. oil and gas exports and remit- Facing a budget and currency crisis, Egypt has been struggling to pay for food and fuel has led the bulk of gas-rich and individuals between the two countries. US companies Qatar's international acqui- tances from Egyptians living imports. Last month it received $5 billion in financial support from Qatar and Libya. President Al-Bashir in this context stressed the impor- abroad, Reuters said. ZAZOU: LSEEK sitions in recent years. tance of starting the experimental operation of the cross- The announcement of the On May 1, Egypt raised the TO NEW COMMENT ing after the Sudanese parliament endorses the related fees paid by ships passing refund came after Egypt measures. TOURISM cancelled a tax on stock through the Suez Canal in an EGYPT'S CREDIT RATING CUT POSES THREATS TO The two leaders stressed the importance of inaugurating effort to boost revenue as the MARKETS, TAP market dividends and share the land road west of the Nile,,the Presidential Spokesman gains in takeover bids. economy struggles to head off INTO IRANIAN FOREIGN BORROWING said. a currency crisis. (Cont. from page 1) MARKET Moreover, the downgrade came despite the recent announcement of increasing the coun- - Egyptian Tourism ir14 01.1411:05r1r mai ria ar nexpecessirs A.C4C ,COPCX.Irailur "1-4=11 *1-1113M try's foreign reserves and Egypt's capability of acquiring 'finance by unconventional 7 Minister Hisham Zazou ASA f41L111 4%.4C1[1.3/12.11.44G DEGREE DL3ft1 1.4 C1111/114 1131371011 2012 means like borrowing from countries, getting deposits from friendly states or designing 40441.. 31034 Pio. 4 - '1104flume s** 11-13 1900 (Coos. vise forodr44.4r4rIk, - said efforts are underway S.111313/04G-11 2.4401,2012 Nov.. 201 f...711saucamo Am* /4ao. 3013 3.4.14o., 7013 ,C111.0111111111 plans on issuing sukuk (Islamic bonds), he pointed out. , to open new tourism mar- I.. 11 4441 413rast of 1.191,4411* a 4439383 5484277 1132441041- 4.49132242 43543537 56! 195- On the other hand, a senior banker told "Al-Mal" business daily that downgrading C'soalls. 404 *434500 2023330 588770- 16542960 !6456448 80312 kets, noting that Egypt 1P4-*roadroass garoctocas 2940768 33724E27 431459- 27020278 28 375 1 33 3341057- Egypt's credit rating by Standard and Poor's is likely to have an impact on the IMF talks, owal 84125S 238220 3073- 0136453 0003341 84077- gets into the Iranian mar- 2_ /Maw "sotto. 37002 73 1 S S 15523- 1 100232 !469447 309235- 3.- IFts"*.s sosatorlot of 1.1,11*Sella a 1174575 870086 1034609 1 .3927 32.5 !4.8$9327 902202- ket from the professional saying that such a step is an attempt to exert pressure on the government to expedite the C) ratoars. firrolt* 97550 63093 331337 86476.4 1230200 305443- Pot ratans 430 940 SOS - 77 * OS* 14'9470 1 722543- economic reform program in return for securing the IMF loan. Egypt's rating cut came 43*-aosiger. frowls perspective . 30003 7 1273, 4.12 70-0 241 50 li 7 20032 a13 3a7302 - Croorastootas- 55852 409 43 s00. 2411 574, 243043 22037-. In statements to MENA few days after the cabinet reshuffle, the same banker stated, pointing to the government's ar...... a.... fr,...a. 241337 7184 17373 1214933 72791 410702 1-..eigosoral000m Neogg.. 46704 411403 1734- 3 001500 3234344 5078- Sunday on the sidelines of failure so far to curb the spiraling budget deficit, ease pressures on the foreign currency 1...eigossabos.,. dry' 5.4010 38803 132113 070611 3/9484 *50627 1-41*.c. Soo, 1 740 707 973 !°053 341a-sar-, 20352- the World Economic Forum W'rottst,, fresh 171 549 09077 7 11172 2795043 2444333 350710 and realize political reconciliation. Sisicos It 3 13- 2. 1,00 977 1 132 041 0 assmdba a 56'02 13702 1910 1 20437 11 1103203 5013113- on the Middle East and On his part, Ehab Al-Saeed, Managing Director of Osool ESB Securities Brokerage, Pao sato. Roots Mo.- North. Africa 2013 in IFtarefaaavairry ar 11.1aorssask7 40526 27212 1 33 14. 4024570 700125 243440- views that downgrading Egypt's credit rating would not undermine the IMF talks, saying 1F1.osa.. Row soca aloorairotaloso 3950 6737 2707- 55402 105230 40034- Pvisca-lbilo 03394 028 870.342 8 114112110 61302 Jordan's Dead Sea region, S.101014.OS 62.44156 that such a step coincided with a similar move adopted by Moody's Investors Service two , I 4,3103 10449 6 2 - 1 203 15 I 70764 44449- Zazou said that figures 4. 3..earrs1, 111,a11....1*.s1 Cortarrao41141.0 of 1•41,11**c0 a 255677 3140097 3850213- 3.0627 101 3323.4309 246073.410- months ago. Yet, Standard and Poor's kept Egypt's outlook "stable," he added. C•attwa Worn* 1 18739 1017001 1 1738 1293719 173!1740 44702 a - showed that tourism in lestaieiratiaNdk 1C341's 27480 20861 45027 172335 *90271 26937- Egypt began to fully recov- Market analysts argued that Standard and Poor's has taken such a decision becuse it was ■Cortacao 3 15750 179033 04181- 1323022 1600308 277286- .01.1asoat W8.. Pots. 4341114 *3 1 590 /14349 47227 15595041 1723908 104404- waiting for the disclosure of a clear-cut medium term economic plan by the government 111.141.... Slams of tiortne. *aimed 00.4 I 37681 • 30840- 308054 083509 3755 I 5- er, underlining that the num- 'Wood tow otax - 385743. 406020 20077- amidst the growing concerns over the government's capability of carrying out the eco- Ws*. of 24.4issoriall ftitarteariado X I 1674 2341 1 a- a 22430: 1 14+4770 129 111324. 1 47030. ber of tourists who visited 5.41 two soda 241370 211727 1 149 20599 1 1834.72 20310 Enostalaca' of Partaxasurir 1F7awssast 314014 227040 86366 236703.1. 2 a 50393 2094.41 Egypt in 2012 increased by nomic reforms and the failure of realizing political consensus. 1F4rro-Saltiooes 73414 20244 12700- 151 383 2414553 92070- .T.1.14.11somon 21 413 1 04 21 307 11 2013/3 001128 08010 17 percent compared to the Others view that cutting Egypt's rating was adopted despite the fact that the country's 1rof.'s* 12-141:311.21.411 237000 a 4 3000 94.900 1833760 1420500 .4 1 3260 3. D. ir***4:44 "C"osaasood111111asis previous year. foreign reserves jumped by $1 billion in April to $14.3 billion, strikes fell back and eco- ' oast Orr WIR11,01* a 47000641 54120923 1 33974 1 6493 14 I 0 741139465 5000349- 11.3ariry Prodlocts , , 103000 102957- 10129 2193375 2842040 4/730 1 - Over the past four nomic indicators made some progress at the level of tourism, foreign investments and . ‘,:isteltaa.3,14a4„ 111 12 0zarira 8.3.44.7 .4.7.438 30coos• 053402 960315 1 I 2913 Or-V a 1664 0347 7297 186230 396385 a sa 140- months, the tourist flow to atioe. 11 I assalao4.1014441401100411 189465 - 1894+65 1943015 - !9.60[14 exports. Moreover-Egypt-IMF talks showed that securing the $4.8 billion loan is possi- :S.litscolleasorovor 1S411111410 Egypt upped by 12 percent li rotiosos 274.504 2 19997 54507 3 1 11/245 3 4 290 1 339 201 4130 ble, given that the US seeks to broker between the two sides to protect its ally from high El=aasseartat 0 Pllsormos*. 13.44114 1741704. 1 1 7074 39630 i 628026 1323453 3125 173 compared to the same peri- Forelliaroorm 555491 324324 23 1 1107 07 I 2crs3 7119 I 031 , t 1 703743- risks, the same experts argued. Egypt is still able to pay its foreign debt installments, hit- Pos-forme. 0 Moo *stir 1Phresio.. 50403 43032 *0373 33098 t 5004449 23468- od in 2012, Zazou said, sl°'sg. '''''ll 100301 X 15403 I 5 sass- 1203620 X 189773 13843 ting over $1.3 billion annually, while it enjoys a solid banking sector and foreign reserves 13.131, SilKwrier "'"5." .1114411. 70101 53662 364.39 705521 682533 020128 hoped these figures will reversatac *rim% is Itsoir Tubes 50395 52827 2432- 446143 472652 245709- enough to cover imports for three months. ri.'' a airsitory_ Eftaipire- 70776 09572 1204 0852137 804128 1 liaaav- increase by the end of 2013. Pa-lasitaral 14.1ols.., 1.44"ars'iaasipors 0011 1 4. 1 33 142- 134993 054123 4010370 C.7.4toes. faltarioss 44543141 29442 30372 3 I 1 070 3.41.8.60.0 *63466 ■Caaripotat 204843 195008 9745 211 33931 2210353 745622- Etoacair-soassao ollarasos 544.674 6121 12 07438- 690 a 7455 8471 X440 150030 1- 1:110war ..4srellrams of liraristlie 160alikreiaits X 54013 125 1 5 1 2/32392 1 575260 alp a 3377 1 4013 1 -7 - 1=axotwosor 410g ../Portaa -1-1.earsma1 .4832 0094. 330 51.483 103937 54472- inflow ar 3.4tolainirxr Witastoiros 231 71 1 136046 1 I 50415 2529770 1386936 1 1428344 Hods. 10.a-s.. .11.0.144,, Wiems or &MOM I 24030 1 12270 12334 , 1442 722 23080731 866351- 61141.. 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EVERY WEDNESDAY MORNING , 11.4a'rat,. It tiosg Of ova/war aft *fry maiwa as lira...itsa sr.h rose claire... as. allow 744vr a• ECONOMIC, PUBLISHED TO COVER 20* 2 "coons's* 1,041 to into. 4114744. .201 1 THE MIDDLE EAST, ARAB GULF

AND AFRICAN MARKETS .34 0 Head Office and Advertisements : 41, Sherif Street, Cairo, Egypt 2. ....W...., *amis.- ...- 2412 Tel.: 23939732 - 23926919 Fax : 23939732 - 27485844 213 C2 eV sal... • 2* • • E-mails Address: [email protected] - [email protected] [email protected] - [email protected] Web. www.meobserver.org CCR.: 113389. Printed at Societe Orientale de Publicite (S.O.P.) Cairo - Egypt 1 4,,c4saat.84a allIzatirilaitstiora or oxportai by roost eafawc to ist g dc.8rcc 413.11-1., rik iryf 1,1o.v.soiaser 2012 ,eckaysposarc41 to 3/art o try/ P4o Or r 2011 The Publisher : AHMED FODA Chief Editor : H.A. RAOUF 4 .1 ...:*-13_4 Economic Counsellors : YASMIN FODA 1.4 elev. 2.32 3 13 MAHMOUD FODA v=, 20111 N.M.M. RASHED EQ LOS-4 Dir. of Public Relations : KAMAL MOKHTAR Annual Subscriptions ; 0-31 0.7 a .0 -74 Egypt : LE275 - Aborad $420 - £295 MAY 29 2013 B PROJECTS itt:Mt sot 3 BP TO INVEST $ $15B. `KSA HELP' TO END PAK ENERGY ARAMCO AWARDS 2.85 B. IN IRAQ'S ( RISIS MIDYAN GAS LARGEST OIL Saudi Arabia is expected to extend a bailout package of PROJECT TO L&T about $ 15 billion to Pakistan, Arab News said. FIELD State-run Saudi Aramco It will help the country's highly indebted energy sector by has awarded Larsen & Oil major BP has allocat- supplying crude and furnace oil on deferred payment to ed $ 2.85 billion to develop Toubro (LART.NS) (L&T) enable it to resolve the chronic circular debt issue, reported a contract to build facilities Iraq's Rumaila oilfield in Pakistan's Dawn newspaper. 2013, up from $ 2.2 billion including a gas processing The Kingdom has been taking reasonable interest in help- plant for its Midyan gas last year, the head of the ing out the incoming Pakistan Muslim League-Nawaz gov- joint management commit- field, state news agency ernment, a senior government official told the paper. SPA reported. tee for the field said. As soon as the PML-N emerged as the majority party after Boosting output from The world's top oil the May 11 elections, the Saudi ambassador in Islamabad exporter is boosting its out- Rumaila, Iraq's most prolific sought a briefing on the country's oil requirements from the oilfield is vital for the coun- put of the natural gas needed Foreign Ministry before calling on prime minister-designate to meet rapidly rising domes- try to realise its ambition of Nawaz Sharif. raising oil exports to 6 mil- tic power demand and supply He was immediately provided a position paper, the official raw materials to its strategi- lion barrels per day (bpd) by said. 2017. cally important petrochemi- Pakistan expects about 100,000 barrels of crude oil and cal industry, Reuters said. Salah Mohammad said about 15,000 tons of furnace oil per day from Saudi Arabia production from the field L&T will build a plant on deferred payment for three years. The amount involved with a processing capacity of would rise to 1.450 million works out at about $ 12-15 billion. bpd by the end of 2013 from 75 million standard cubic around 1.4 million bpd now. WALLS TO BE BUILT AROUND RAIL feet per day (scfd) of non- "The approved budget for TRACKS AT HOLY SITES associated gas and 4,500 bar- Rumaila development plan Work is now under way to build a wall encircling the rels of condensate per day, in 2013 will be $ 2.850 bil- train tracks connecting the holy sites at Makkah, an offi- the agency quoted Fahad al- lion," he said, according to cial of the Ministry of Municipal and Rural Affairs has Helal, executive director of Reuters. said, according to Arab News. project management at In 2012, the approved Deputy Minister Habeeb Zayn Al-Abideen said the min- Aramco, as saying. The proj- budget for the development istry called for bids from companies for the maintenance and ect is due to be online mid- of Rumaila was $ 2.2 billion, operation of the train. 2016, SPA added. Jazan Gov. Prince Muhammad bin Nasser with Water and Electricity Minister Abdullah Al-Hussayen, right, during the launch- of which around $ 1.9 billion "The wall will be 20-km long and will cost SR 14.5 mil- "The project will include ing of new water and sewage projects in the region. (SPA) was expended, Mohammed lion," he told Al-Sharq Al-Awsat, a sister publication of Arab building two pipelines of 98 said. News. km length to deliver sales Under the 2013 develop- NEW DAM ABOVE BISHA RESERVOIR TO GENERATE QATAR DROPS "It is being built to stop violators from boarding the train. gas and hydrocarbon liquids ment plan for Rumaila. BP 15,000MW BID TO MOVE Last year, around 200,000 people used the train from to a power plant near (the plans to issue three tenders The Bisha dam in Jazan, the largest reservoir of water in the Kingdom, has the capac- CIVIL AVIATION Muzdalifah to Mina without having tickets. western city of) Duba," al- for the drilling of 150 new oil ity to supply 220,000 cubic meters of water daily, thereby saving SR 36 billion for pub- "Bid envelops will be opened last Saturday. The company Helal said in a statement car- wells in the second half of lic coffers, said the Minister of Water and Electricity Abdullah Al-Hussayen, Arab News BODY ICAO FROM that is awarded the contract will have to allocate 30 per cent ried by SPA last week. this year with each tender said. MONTREAL of its workforce to Saudis during its first year. This per cen- This would enable effi- covering 50 wells. "If we want to build a surface water reservoir this size now, we have to spend about SR 36 Qatar has dropped a bid tage must be gradually increased until it reaches 80 per cent cient generation of power "We t'have plans to drill billion," he said, while addressing a ceremony held for the launch of the new water and to move the headquarters in the fifth year," he said. and avoid the burning of new 300 oil wells in Rumaila sewage projects, valued at more than SR 5.9 billion. of the International Civil The Ministry has asked the Chinese company that is cur- high-value diesel, it added. over the next five years," "This dam, located about 300 meters above the sea level, was established three years ago Aviation Organisation rently operating the train to keep doing so during the next SPA did not give a value Mohammad said. at a cost of SR 200 million," the minister said. It can meet the water requirements of cities from Montreal to Doha, Haj season. for the contract but industry BP has also invited engi- and villages on Jazan's coastal areas, he added. Canadian and ICAO offi- "We will not raise ticket prices, which currently stands at sources estimated it to be neering companies to build a Al-Hussayen disclosed his ministry's plan to establish a new dam above the Bisha dam in cials said, according to SR 250 for the entire trip during Haj. We will expand the cur- worth less than $300 million. 300,000-bpd production order to generate 15,000MW of electricity. "Preliminary studies have proved the project is Reuters. rent station at Muzdalifah to accommodate as many passen- Midyan is one of the new facility and more than 20 feasible," he asserted. Qatar recently proposed gers as possible," he said. gas fields in northwest Saudi firms are competing for the Jazan Gov. Prince Muhammad bin Nasser earlier launched the projects in the presence of that the organization leave During last year's Haj season, the train transported more Arabia to produce gas for project. a large number of people and officials. He later toured the tourism and investment projects Montreal, where it has been than 90,000 pilgrims per hour using 20 modern cars. The power plants and potentially Rumaila, which BP oper- in the vicinity of the Jazan dam, which were implemented by the Department of Water in based since it was created as longest trip, which is between Mina and Arafat, takes about supply other industries in a ates with China's CNPC, has Jazan. a UN agency since 1947. 14 minutes. During the first three days of Haj, the train trans- region rich in iron ore estimated reserves of around "We are now celebrating the launch of 243 projects worth SR 5.9 billion," the minister told "Pleased to confirm Qatar ported more than a million pilgrims. deposits. It was discovered 17 billion barrels and pro- the gathering. "Among these projects 117 have been implemented at a total cost of SR 1.9 has withdrawn its bid to The train began operations three years ago to help allevi- in the 1980s and has signifi- duces the bulk of Iraq's total billion," he said. move ICAO HQ from ate congestion at the holy sites. The use of trains has elimi- cant reserves. output of more than 3 million The length of the longest water network in the Jazan region reached more than 3.8 million Montreal," Canadian nated 70,000 buses, which were the only means of trans- ETISALAT MAKES bpd now. meters while water connections have been given to 71,000 homes in the region. "The gover- Foreign Minister John Baird portion in the past. The former bus area can now accommo- TOP BID FOR The country has the nor has launched today 126 new projects that would cost SR 4 billion," Al-Hussayen said, said on Twitter. date around 450,000 pilgrims. world's fourth-largest oil adding that it would meet 80 per cent of the region's water needs. Losing ICAO would have MAROC TEL reserves. Nine sewage water purification centers would be established in different parts of the region been a diplomatic embar- Gulf telecom operator at a total cost of SR 853 million. These centers will have a capacity of 158,000 cubic meters. rassment for Canada and Etisalat has offered a high- STRONG Speaking about his ministry's efforts to meet the water requirements of Jazan. Al- Baird had campaigned hard er price for Vivendi's Hussayen said the desalination plant in Shuqaiq supplies 78,000 cubic meters of water daily, against the idea. Maroc Telecom stake than DEMAND FOR while the Jazan plant supplies 50,000 cubic meters and Bisha dam 75,000 cubic meters. ICAO spokesman rival Qatari bidder The establishment of the new water purification centers on Jazan and Dhamad dams would Anthony Philbin said the Ooredoo, according to two ABU DHABI _ _ •• people familiar with the increase the daily supply to 460,000 cubic meters, the minister said. Qatari embassy in Ottawa matter, Reuters said. BANK BONDS DAMAC LAUNCHES WATERFRONT LUXURY PROJECT had sent a letter announcing The National Bank of it was withdrawing the bid. Etisalat's bid needs further Damac Properties, one of the largest luxury private developers in the region, is Dliabi '(NBAD) has He said the letter gave no work, however, and -has launching sales on Bay's Edge, a Dh400 million ($108 million) serviced living project in more legal conditions than issued$ 465 million senior- . — reasons. the Burj Area of Dubai, 'FradeArabia News Service said. Ooredoo's offer, so Vivendi unsecured convertible No one at the Qatari Bay's Edge is a 22-storey iconic tower, offering waterfront views across to the world's has not yet made a final bonds, convertible into embassy was immediately tallest tower. The 220 units are made up of studios, one, two and three bedroom apartments, available for comment. choice, the people said. ordinary shares of NBAD, al managed by the hospitality management company of Damac Properties. Arab News said. The French-language La "If Etisalat cleans up its The project is set for completion by the end of 2016, said a top official. offer, then it wins," said one The offering, due in 2018, Presse newspaper said Qatar "We have seen overwhelming interest in luxury serviced living in the Burj Area of Dubai of the sources, who is close was increased from an initial had argued that Montreal - to the process. "If not, it will - and that is— why we are bringing Bay's Edge to the market now," observed Ziad El Chaar, the in the eastern province of 50 million fat- many ino director, Damac Properties. go to Qatar, who also made lowing strong t e Quebec — was too far from The government is planning to build a 20-km long wall to Europe and Asia and suf- encircle rail tracks at the holy sites. (AN photo) an offer that Vivendi can investors during the book- setting of the Burj Area," he noted. fered cold winters. building process. Highlighting the desirability of the area, the RERA (Real Estate Regulatory Authority) La Presse, citing Qatari ARABTEC WLNS S108M SAUDI While the exact prices of The offering received Rental Index showed the two areas in Dubai which saw the highest transaction activity and briefing notes, said Qatar the offers were not clear, strong investor demand; it price increases last year were the Burj Area and Dubai Marina. also complained Canada HOSPITAL CONTRACT sources earlier said they had was more than three times Sales of units are available on a first-come-first served basis with prices starting from made it hard for delegates to A subsidiary of Dubai-based contractor Arabtec come in lower than the 5 bil- oversubscribed with a quali- Dh720,000, he stated. get visas and said Canadian Holding has won a SR404-million ($107.7 million) con- lion euros ($ 6.5 billion) ty order-book in excess of $ Damac Properties will have more than 4,400 luxury serviced hotel apartments completed taxes were too high. tract to build a hospital in Saudi Arabia, the company Vivendi had initially hoped 1.5 billon, showing investor or under development by the end of 2013, making it one of the largest operators of luxury The lease on ICAO's cur- said in a statement on Saturday, Reuters said. for and closer to the market demand for NBAD's equity serviced living in the Middle East. rent Montreal headquarters The Aldara Hospital and Medical Centre is scheduled for value of the stake. story. Top-end home prices in Dubai increased 18.3 per cent over the last 12 months, ranking the runs out at the end of 2016 completion in early 2015 and will house a 105-bed, six- Vivendi's 53 per cent It hag a strong distribution emirate fourth among the world's luxury property markets, according to a recent report by and the organization is in storey hospital and two medical centres in the Saudi capital, shareholding in Maroc across a wide investor base Knight Frank. talks with Canada to extend Riyadh. The client is Aldara Medical Corporation, the state- Telecom is now worth 4.34 across the UK, France, that to 2036. ment said. billion euros. Germany, Switzerland. and The contract was awarded to Arabtec Terna, which is 60 Vivendi has been in talks offshore accounts. DUBAI RETAILER MAF MULLS $1BN INVESTMENTS SUSTAINABILITY per cent owned by Arabtec, the company that built Dubai's UAE's Majid Al Futtaim Holding (MAF) - sole franchise of hypermarket chain in recent weeks with Etisalat The value may be Palm Island. The company said it wants to expand in the Carrefour in the Gulf - said it foresaw capital investments of up to $1 billion this year 'CORE FACTOR to remove some of the legal increased by a further Gulf region and do more specialised construction projects. as it steadily expanded its foothold in the region. FOR UAE REAL clauses, the people said. amount of up to $ 35 million Commenting on the win, CEO Hasan Abdullah Ismaik This did not include a $680 million purchase of a 25 per cent minority share from The UAE-backed group in the event of exercise in ESTATE' said, "Saudi is rapidly developing its social and physical Carrefour Groupe in the company announced last week that will give it full ownership of the has scheduled an extraordi- full of the over-allotment Sustainability is a core infrastructure, and we believe there is a strong opportunity Carrefour franchise in the region, Iyad Malas, the chief executive officer said in an interview nary shareholder meeting on option granted by NBAD to factor for the UAE real for Arabtec to participate in construction projects in the on Saturday, according to Reuters. estate and infrastructure May 28 to approve the the Joint Book-runners, exer- Kingdom such as hospitals, schools and transportation." "Our capital investments could be anywhere between $600 million and $1 billion this projects as the market gets financing package for its bid. cisable on or prior to June 3. Arabtec's current backlog is valued at nearly Dh21 billion. Ooredoo, meanwhile, year," said Malas on the sideline of the World Economic Forum (WEF) on the Middle East benefited from growth in Arabtec's operations in Saudi Arabia, where the company is DRAKE AND and Africa in Jordan. tourism, hospitality and crafted its offer with minimal trade, said industry experts building a 5,000-villa project, have been a key driver of rev- conditions to make it simple The developer and operator of shopping malls will go on a roadshow to raise the money enue growth. SCULL WINS SR from institutional investors for the purchase of its minority share, Malas said. at a Doha Bank summit in and less risky for Vivendi, Sales growth in the region had not been affected by the Arab spring because consumption Dubai, TradeArabia News BAHRAIN PLANS $41M WATER, POWER the group's strategy chief 1.73 BN TOWER rates continued to grow and even investments continued to grow. Service said. told Reuters earlier. "The UAE is undergoing UPGRADES "In 2010 we spent capex of over a billion dollars and since then it slowed down a little bit Bahrain's Electricity and Water Authority (EWA) has Vivendi has not asked DEAL stabilization and has resurged not because we want to but we are not seeing things moving as fast," Malas said. concluded two contracts worth more than BD15.7 million Ooredoo to improve its offer Dubai's Drake and Scull from the property bubble, sup- ($41 million) for the supply of materials to upgrade water so far, the first source said. said last week it had won a MAF, the franchisee for Carrefour hypermarkets in 19 countries in and operator of some ported by tighter controls and transmission networks, TradeArabia News Service said. Spokesmen for Vivendi, contract worth SR 1.73 bil- of the biggest malls across the Middle East and North Africa, was expected to maintain more cautious optimism in the EWA chief executive Shaikh Nawaf bin Ibrahim Al Khalifa Etisalat and Ooredoo lion ($ 461.3 million) to healthy growth in 2013, he said. Sales outlook for 2013 was "hopefully in line with a 10 rise" market, remarked Doha Bank sealed a BD6.7 million deal with Indian Electrosteel Castings declined to comment last build a twin-tower residen- in Q1, compared to 9 percent growth last year, Malas said. "Clearly Dubai is our big base but Group CEO Dr R Company (Mohammed Fakhro and Brothers) for the manufac- Friday. tial and commercial devel- our focus is on retail and shopping malls. These sectors have continued to do well every- Seetharaman while delivering ture and supply of 600mm to 1,000mm diameter ductile iron Maroc Telecom offers opment in the western where because the average Egyptian or Jordanian still wants to eat and we are low cost the inaugural address. pipes in addition to valves and related accessories for the second fixed-line, mobile and Saudi • Arabian city of provider. We are not offering high end offering we are offering something for the mass," The Qatari lender hosted a phase of the 2009-2012 water transmission networks develop- Internet services in the Jeddah Reuters said. Malas said. The emirate's population has been swelled by people seeking refuge from polit- series of GCC summits last r ment project, reported the Gulf Daily News, our sister publica- Kingdom and is one of The Lamar Towers con- ical strife in the Middle East and economic malaise in Europe, which is also supporting retail week on real estate, infrastruc- tion. Another contract worth BD9 million was signed with Africa's top telecom firms, sists of two towers. one 322 sales. MAF's major regional investment was a retail and entertainment complex in Egypt at ture and urban planning which Salman Trading Company for manufacture and supply of with units in Burkina Faso, meters high and the other an investment worth around $600 million. The firm was also looking at a presence in Libya brought together some of the 800mm to 1,200mm diameter ductile iron pipes and valves as Gabon, Mali and Mauritania. 293 metres, to be built in and had just expanded in Lebanon, with a large project that was opened recently. region's leading consultants and advisory firms to discuss well as related accessories.The mega project includes building Jeddah's Corniche area. The DAEWOO WINS opportunities and trends in the of nine water pumping and distribution stations, expansion and project, which had originally property industry. The key rehabilitation of 12 existing stations, increasing storage capaci- $796M ZADCO been unveiled in 2007 but presenters were officials from ty by 70 per cent to 215m gallons and replacing old water trans- was put on hold in 2009 and mission lines in Muharraq and Central Governorates. DEAL IN UAE Damac Properties, Morgan Daewoo Shipbuilding & recently restructured with Stanley, The Boston EMAAR LAUNCHES DUBAI TOWER new investors coming in, Marine Engineering said on Consulting Group, KEO, Monday it had won an 897 will be completed in the PKF-TCH Group and the SALE fourth quarter of 2015, the Global property developer Emaar Properties has billion won ($796 million) Qatar Green Building launched the sale of the second tower of its Burj Vista proj- statement added. Council. Dr Seetharaman order to build oil production ect in Downtown Dubai, the 500-acre flagship mega develop- Drake and Scull has highlighted the trends impact- facilities in the Upper Zakum ment.Comprising two identically-designed towers, the sec- oil fields for the Zakum recently been the subject of ing projects and infrastructure ond tower of Burj Vista will feature 20-storeys that will development in the UAE. Development Company rumors surrounding a stake house 120 luxury apartments, making it the newest and most "A clear indication of the (Zadco), a subsidiary of Abu sale to Dubai's largest con- stunning addition to Dubai's dynamic skyline, said a compa- success of the UAE's strategy Dhabi National Oil struction firm, Arabtec ny statement, TradeArabia News Service said. can be seen in the Dubai Land Company, Reuters said. Holding. Its shares have ral- Customers can register online for 1, 2, and 3-bedroom apart- Department's impressive sta- The South Korean ship- lied 24.7 per cent since April ments in Burj Vista II from 10am on May 29. The sales event tistics for the first quarter of 24. will commence at 9am on June 1, on a first-registered, first- builder said in a statement 2013 that show a 63 per cent While Drake Chief served basis at the Emaar Sales Centre in Emaar Square, that it had won the order in a growth in the total value of consortium with Petrofac Executive Khaldoun Tabari transactions made reaching Downtown Dubai, it stated. dismissed talk of him selling Commenting on the sale, managing director Ahmad Al Emirates, with production Dh44 billion, with the number facilities to be installed on part of his stake in the com- of transactions carried out Matrooshi said: "Dubai's market is witnessing unprecedented pany, he said on May 14 it interest from both residents and visitors looking to purchase first artificial islands in the totalling 14,260 — at a rate of region.The contract is would be partnering more 223 per day and 32 per hour, and second homes in the emirate. Building on the robust per- expected to be completed by with Arabtec on a number of which is phenomenal," he formance that our properties have recorded this year, we are fur- projects. added. ther strengthening our portfolio of world-class residences." May 2017. MAY 29 , 2013 BUSINESS OPPORTUNITIES 'Me not @hotrit 4 Business Opportunities A.R.E. Texts, Laws and Regulations (Tenders Prepared by Our Staff) Al-Wakaye Al-Mesreya / Government Bulletin - Issue No. 22 Tender for Cairo - Hot line 16323. Client : Gen. Authority for (Supplement) Dated 28 January 2013 Manufacturing *** Alex. Port - Alex. Ministry Of Water Resources And Irrigation Assembling and supply- - Int'l invitation for oper- *** . Ministerial Decree No. 92 Of The Year 2013 ing 650500 Water-Meters ation & maintenance of - Tender for supply 24 for potable Water 1/2 - new Cairo Raw Water BICDOOP/e Cabin Cars Dated 28 January 2013 Amending The Executive Regulations 3/4, intake, Booster pumping 4x4 Of Law No. 48 Of The Year 1982 Regarding The Protection Of The Due date : 24.6.2013 Stations, Transmsission Due date : 16.6.2013 River Nile And Waterways Against Pollution Booklet : LE 15 000 lines and Water Booklet : LE 200 Bid Bond : LE 70 000 Issued As Per Ministerial Decree No. 402 Of The Year 2009 Bid Bond : LE 500 000 Treatment Plant, . (Cont. from last week) Client : The Holding Co. Due date : 11.6.2013 - Supply of 4 Microbus Article : 39 ABU DHABI FUND TURNING TO for Potable Water - Cairo. Client : New Urban (15 Passengers) The License application for running the movable hotel tourist houseboats shall be submitted *** Community Authority Due date ; 16.6.2013 by their owners to the concerned general department at the Ministry of Water Resources and EMERGING MARKETS booklet : LE 200 Irrigation on a prepaid stamp fee application, attached with the following documents: - Supply two Hundreds Represented by the Abu Dhabi Investment Authority is reducing target expo- Bid Bond : LE 18 000 1) Houseboat ownership document. sures to developed market stocks and looking for growth in Bus (Solar Euro 11), Construction Authority 2) A certificate from the General Authority for River transportation indicating the houseboat fit- - Supply of 20 Drillers not emerging markets, the sovereign wealth fund that is one of Due date : 10.6.2013 fore Potable Water and ness and its conformity with the conditions laid down by such authority. the world's biggest investors said on Monday, TradeArabia less than 5.5 tones 3) A certificate from the Ministry of Potable and Sanitary Drainage Water Facilities indicating News Service said. Booklet : LE 10 000 Wastewater - Cairo. *** Due date : 17.6.2013 the provision of a unit for treating the wastes resulting from the use of the houseboat in accordance In an annual review which provides rare insights into the Bid Bond : LE 3 million Booklet : LE 200 with the models provided by the sanitary drainage facility, and confirming its serviceability accord- strategy of ADIA's executives, it also gave an ominous signal ing to the provisions of article (5) of the law. Client : gen. Transport - 4 Electric Lifts for pas- Bid Bond : LE 140 000 to asset management firms hoping for its business - it is han- Authority, sengers for Tahta City - 4) A document proving the existence of a tank inside the houseboat at, a capacity suitable for the dling more of its investment in-house and relying less on index Client : Ministry of collection of the wastes resulting from the houseboat during its trip. funds. www.cairo.gov.eg Sohag Governorate 1000 5) Approval of the Environmental Affairs Agency on the study of the valuating the environmen- *** Agriculture (Modernsing With undisclosed assets that analysts estimate at between kg. each, of irrigation project FINP) tal impact of the houseboat. $400-$600 billion - equivalent to about 1 per cent of the value - Tender for operating, Due date : 18.6.2013 6) Approval of the Governorate and the Environmental Affairs Agency of the berth that the of the world's major stock exchanges - ADIA revealed the first Cairo - Egypt). houseboat shall deal with to deliver all kinds of wastes and the methods of discharging the sludge, change in the broad ranges it maintains for different assets Maintence the light Net Booklet : LE 2200 *** consumed oils and trash. since it began publishing an annual review three years ago. of the first zone of Bid Bond : 20 000 - Tender for a system for 7) Approval of the Ministry of Health of the soundness of the treatment units. It lowered its target exposure to developed market stocks in Damietta , Client : Misr Upper Egypt management & Planning 8) The undertaking of the owner of the houseboat not to allow the leakage of fuel used in its 2012 to a range of 32-42 per cent from 35-45 per cent in 2011 Booklet : LE 200 Rice Mills - Sohag operation into the waterways. - meaning a reduction at the middle of that range of 7.5 per *** of Rolling stock, 9) Name of the waterway used for the houseboat sailing or anchorage. cent. Bid Bond : LE 20 000 Due date : 6.6.2013 10) Paying an inspection fee amounting to L.E. 20 (twenty Egyptian Pounds). ADIA also cut its minimum exposure to Europe across its - tender for Gen. - National Authority for Booklet : LE 2000 11) Paying a license fee amounting to L.E. 50 (Fifty Egyptian Pounds). asset portfolio to 20 per cent in 2012 from 25 per cent in 2011, Insurance works for 34 Tunnels (NAT) is inviting Article : 40 while keeping its maximum allocation unchanged at 35 per Bid Bond : US$ 8000 The license for running the movable hotel tourist houseboats shall be issued by the Director cent. Cars, the French companies, Client : Transport General of the concerned general department at the Ministry of Water Resources and Irrigation, OIL PRICES SET FOR BIGGEST Booklet : LE 250 through an International Information Technology within one month from the date of submitting the application fulfilling all the required documents Bid Bond : 2000 Adjudication, to submit in accordance with the previous article No. (39). The license data shall be recorded in the WEEKLY LOSS Co. Department records. The granted license shall include the following: (Cont. from page 1) Client Development their offers for the www.trainsit.com.eg 1) Name of the houseboat. "There is a lot of supply. Inventories are high in the US Organ. • for the New detailed design and exe- *** Name of the houseboat owner. and I don't expect a big increase in demand from China," 2) Demietta City, cution of the works of the The activity practiced by the houseboat and the materials authorized to be transported, if any. said Ken Hasegawa, a commodity sales manager at 3) ARAB TENDERS Name of the waterway in which the houseboat is licensed to be used. Newedge Japan. www.newcities.gov.eg extension between El- 4) DUBAI Location and name of the berth, that the houseboat shall deal with to deliver all kinds of Brent hit a three-week low on Thursday after a survey *** Marg and New El-Marg 5) wastes together.with the method of discharging sludge, consumed oil and trash. showed that China's factory activity shrank for the first time - Supply of Medical - Supply of pumps and its of Greater Cairo Metro Obligation of the houseboat owner not to allow the leakage of the fuel used in its operation in seven months in May, stoking worries over the demand equipments for Raas El- 6) outlook for commodities. spare parts for the water Line 1. into the waterways. Khaima Zone (Sham Validity period of the license granted to the movable hotel tourist houseboat which shall not Investors are looking for a rebound in China's economic station, Due date : 24.6.2013 7) growth in the second half of the year that could lift the out- Hospital); exceed two years. Booklet : LE 200 Booklet : 4000 Euros Article : 41 look for fuel demand. Bid Bond : 3500 Bid Bond : 290,000 Euros Due date : 18.6.2013 "We expect China's quarter-on-quarter GDP growth to The application for renewing the license of the movable hotel tourist houseboat shall be submit- Client : Nuclear plus 1,100,000 Egyptian Booklet : Derh. 700 ted after fulfilling the procedures prescribed in Article (39) of these regulations, to its issuing enti- accelerate in the rest of this year, although year-on-year Bid Bond : Derh. 25 0000 growth could come in flat or even fall," Bank of America Researches Centrer - Abu Pounds is Monday, ty at the Ministry of Water Resources and Irrigation, two months at least prior to the expiry of its Merrill Lynch economists said in a note. Client : ministry of Health. validity period. The license shall be cancelled in case of the expiry of its period without renewal. Zaabal - Cairo. 26.8.2013 at 12:00 noon, Article : 42 The oil market is now eyeing the US driving season *** www.moh.gov.ae which starts this weekend for indications on demand. Client : Arab Republic of *** In case of the license loss or damage, the competent General Department at the Ministry of Water Traders have cautioned that there is more than enough - Supply of 4 Mobile Egypt Ministry of Resources and Irrigation from which the license is issued shall be notified at once, to obtain (a sub- gasoline to meet seasonal demand. US gasoline stockpiles pumping Units Hydraflo, Transport National - Contraction and execu- stitute for the lost or damaged one) after paying a fee in the amount of L.E. 150 (one hundred and tion of infrastructure of fifty Egyptian pounds). last week were close to the highest level for this time of the Due date : 21.7.2013 Authority for Tunnels year since 1999, government data showed. Roads for 146 Areas in Article : 43 Booklet : LE 500 (NAT) Ramses Complex - The general department of the environment and water body police (and its geographic branch- DUBAI ICD PLANNING TO BOOST $2B. Geimera es) at the Ministry of Interior shall carry out periodic and unannounced inspection on the house- Bid Bond : US$ 15 000 for Ramses Square. LOAN foreigner, * *Se Due date : 16.6.2013 boats and river units in the waterways or their surroundings or upon the anchorage of such house- (Cont. from page 1) Booklet : Derh. 5000 boats and river units in the berths to detect the violations of the houseboats and the river units ICD is Dubai's flagship investment vehicle, holding Bid Bond : LE 10 000 for - Supply of computers, which dump their wastes in the watewaterways and those from which the fuel leaks to draw up the stakes in many of its top companies, including Emirates air- Local supplyers, -- printers, Client : NAKHEEL Co. necessary reports in this respect and to assist the competent bodies in detecting and reporting the line, lender Emirates NBD and developer Emaar Properties. Client : Egyptian General; Due date : 12.6.2013 ww.nakheel.com violations as well as removing the causes of pollution and taking the necessary action in this *** respect in application of the provisions of article (13) of Law No. 48 of the year 1982. Dubai's economy has shown signs of recovery in recent Org. for Drainage Projects Booklet : LE 1000 months. Property prices have started to pick up which has KHARTOUM The competent general departments at the Ministry of Water Resources and Irrigation shall noti- stimulated new projects and the Dubai stock market - up - Cairo. Bid Bond : LE 90 000 fy the general department of the environment and water body police of the detected violations com- 42.1 per cent year-to-date - is one of the best-performing **, Client : The Holding Co. - Tender for supply 8 Seed mitted by the houseboats and river units to draw up the necessary reports. Cane Trucks and 6 Cane benchmarks globally. - Supply and Erection of for Egypt Air Co. - Cairo. Part-5 ICD did not immediately respond to a request for com- Harvesters Taking Samples and Carrying Out Analysis 200 free stand Air- *** ment. The deal refinances an existing $2 billion loan that is Due date : 10.7.2013 Article : 44 due to mature in August. Condition Apparatus - 5000 Tones of Wood The competent representatives of the agencies of the Ministn of Water Resource and Irrigation, : SDG 500 That loan was part of a $6 billion facility that ICD raised C.42 000, pulpelong_fiber, Booklet e an• Sanitary rainage Water Facilities shall have just as Lehman Brothers collapsed in September 2008. The Client : Whit Nil Sugar Co. the right to enter the licensed and unlicensed real estates, shops, trading, industrial and tourist first $4 billion was repaid in 2011. and 220 wall Air-condi- Due date : 10.6.2013 establishments, sanitary drainage stations, and the other entities which discharge their wastes into Bid Bond : US$ 60 000 E.mail [email protected] Abu Dhabi Commercial Bank, Citigroup, Commercial tion C. 36000 *** the waterways, for taking the samples, and the periodic inspection of the liquid waste discharging Bank of Dubai, Emirates NBD and HSBC are leading the and 80 wall Air-condition - 120 Tones of -Methanol, method, and the treatment units, to verify the operation efficiency, or to find out the violations. The conventional bank tranche and Abu Dhabi Islamic Bank, 80 Apparatuses C.24000 Due date : 8.6.2013 ABU DHABI owner of the establishment must provide the required assistance and facilities to such representa- Dubai Islamic Bank and Standard Chartered are leading an tives to complete their mission in a perfect way. Islamic portion. Due date : 23.6.2013 - Packing paper (Kraft - Supply of medical Article : 45 IMF CHIEF AVOIDS CHARGES Booklet : LE 4400 and Carton 491 tones, equipments, The volume of the sample shall not be less than two liters for the chemical analysis and one liter (Cont. from page 1) Client : Egyptian Duedate : 9.6.2013 Due date : 11.6.2013 for the bacteriological analysis. The samples shall be taken into bottles having a tightly closed "My explanations came as a response to the doubts that cover of frosted glass. Also, the container and the cover should be well cleaned from the inside Coummications Co. - Booklet : LE 100 Booklet : Derh. 500 before their use. In case of taking samples of liquid wastes treated with chlorine, sterilized contain- had been brought up regarding the decisions I had taken at Client : Qena for Paper the time," she added. While Lagarde avoided being placed Cairo. Client ; Abu Dhabi Police em shall be used in case of bacteriological analysis along with following the standard methods *** under formal investigation - the closest equivalent in Manufacturing - cairo. Dept. Abu Dhabi. approved and stated in the book titled "Standard Methods for Examination of Water and Waste French law to being charged - her "assisted witness" sta- - Supply of diferent kinds *** *** Water". Article : 46 tus means she could still face further questions - and pos- of Electric Generators, - Supply of new cement sibly charges - at a later stage. - Tender for Insurance on The analysis shall be carried out by the laboratories of the Ministry of Health, promptly upon Lagarde said she would now return to Washington and Due date : 8.6.2013 Grinding plant on full Helicopter plans, taking the sample. If that proved to be impossible and the prescribed tests are delayed for a period report to the board of the International Monetary Fund, Booklet : LE 500 Turn Key Basis, Due date : 19.6.2013 more than three hours, the sample shall be kept inside a cooler box, and to surround the container which again expressed confidence in its first woman leader with a layer of ice, so that the sample reaches the laboratory with the remaining ice along with con- Bid Bond : LE 128 450 Due date : 13.6.2013 Booklet : Derh. 200 sidering the precautions stated in the book titled "Standard Methods for Examination of Water and after learning of the court's decision. Client : Ministry of Interior - Supply of new complete Criminal charges against Lagarde would have been an Client : Ministry of Interior Waste Water". embarrassment for the IMF, after her predecessor - Cairo. coal Grinding plant on Abu Dhabi, Article : 47 Dominique Strauss-Kahn, also from France, resigned in dis- *** full Turn Key Basis, The sample should be representing the nature of the liquid wastes as much as possible, and from Tel. : 02/4022629 an appropriate place at the end of the treatment process; or at the final contact point of the wastes grace in 2011 over an alleged assault on a New York hotel - Construction of 496 Due date : 5.6.2013 *** maid. of the establishment, or the treatment process, and at the place into which they shall be discharged Housing Unit in Ras- Client : National Cement - into the waterways. If there are more than one outlet for the wastes of one establishment, a sepa- MEDITERRANEAN REFINERS BATTLE Construction of 20 Ghareb Housing Project, Co. - Cairo. Housing Compound in rate sample shall be taken from each outlet. Also; the container shall be. filled completely in case CRUDE SHORTAGE Due date : 9.6.2013 • *** of the chemical analysis, and the stopper shall be closed tightly after taking the sample. It shall not (Cont. from page 1) Kebda Area - Rass El- be allowed to keep any air bubbles, or any part not filled between the water surface inside the con- Already facing flagging demand in Europe, the, last thing Booklet : LE 6000 - Spare parts for outlet Kheima - UAE tainer, and the stopper. In case of the bacteriological analysis, it shall be observed to leave a space refiners want is to pay up for crude as it would further Bid Bond : LE 650 000 Manifold and primary Booklet : Derh. 2000 in the upper third of the sample bottle and place the container mouth against the water current reduce their refining margins and hence profits. Client : Red Sea reformer H-102 www.mygov.ae direction. The sample shall neither be taken from the surface nor the bottom; in case of taking it However, that looks almost inevitable. from a final aggregation cistern and after the completion of filling the container, the mouth shall *** And refiners set up for heavy crudes have been caught out Rehabilitation Organ - Due date : 10.6.2013 be wrapped with gauze and sealed with red wax, or any similar material, and stamped with the seal dramatically by the US shale oil revolution as North Hurghada. Booklet : US$ 1000 OMAN by the person who is charged with taking the sample. America slashed imports of light Nigerian, Libyan and *** Bid Bond : US$ 30 000 Article: 48 -Supply Erection of print- Algerian oil, making them available for Europe. That - Tender for Supply, erc- *** The person in charge of taking the sample must fill in accurately in a clear handwriting the form depressed light rival grades from countries such as ing Machines and its designated therefor (Sample Possession Record), and to have the signature of the concerned party, Azerbaijan or Kazakhstan. tion and Operating a - Tender for Managing, or his/ her representative on the form (Sample Possession Record).He/ she shall send it immedi- By contrast, heavy grades have become a scarce corn- Central Air-Condining operating and Marketing equipments, ately with the sample, to the General Department of the Central Laboratories at the Ministry of modity after Europe slapped sanctions on Iran's mostly Net for the Building No. of the commercial center Due date : 20.6.2013 Health in Cairo, or its regional laboratories at the governorates. heavy oil as part of its stand-off with Tehran over its nuclear (To be cont.) programme. 55-57, Saad Zagloul St., in the Touristic passen- Booklet : OR. 150 "Iraqi supplies have also been so awfully unreliable that Due date : 9.7.2013 gers station - Alex. Port Client : Oman many people have written them off as a serious alternative," Booklet : LE 2000 (8725 M2) Establishments FOREIGN EXCHANGE RATES a senior trader from a major said. Bid Bond : LE 100 000 Due date : 10.9.2013 Information City - Al- The Iraqi-Turkish Kirkuk pipeline has been disrupted reg- Banque Du Cake ularly this year and volumes have been scarce as semi- Client : Misr Properties Booklet : LE 5000 Kann - Oman. IN EGP POUNDS autonomous Kurdistan has yet to resume supplies of other development, Zamalek, Bid Bond : LE 300 000 *** Treasury Department DATED MAY 27 , 2013 grades amid tensions with Baghdad. As a result, supplies of sour grades such as Urals, Kirkuk and Iranian oil to the Mediterranean have almost halved over the past 5 years to 1 mn barrels per day. CURRENCY BUY SELL That resulted in Urals now regularly trading at a premium US Dollar 6.981900 7.012000 to benchmark Dated Brent, says David Wech from JBC Euro 8.955000 9.290000 Energy: "Urals is benefiting from a plethora of supporting serf Pound Sterling 10.495000 10.830000 factors". Canadian Dollar 6.621100 6.960500 Urals never traded at a premium to dated Brent between or' Danish Krone 1.156200 1.255400 2002 and 2009. Since the end of 2011, when talk of tighter Norwegian Krone 1.149800 1.238900 Swedish Krone 1.013200 1.086100 EU sanctions against Iran first emerged, Urals shot above Swiss Franc 7.095600 7.486600 Brent at least four times, including this week. .1/040. Japanese Yen 6.736200 7.128900 Contributing to the strength of the Russian grade has been Australian Dollar 6.894400 Iranian 6.590400 a large position that trading houses obtained for the remain- ' • Kuwaiti Dinar 23.709000 24.615000 ing Urals cargoes in the Mediterranean at tenders of state oil wean_ Saudi Arabian Rial 1.851900 1.879900 major Rosneft. UAE Dirham 1.897200 1.919600 Meanwhile, Russia kept increasing exports to Asia and Bahraini Dinar 18.293000 18.787000 built a large new port in the Baltic, Ust-Luga, further divert- Omani Rial 17.839000 18.371000 Qatar Rial 1.897300 1.934400 ing supplies away from the Mediterranean. Jordanian Dinar 9.495300 10.017200 "The pressure in the Mediterranean could ease a bit when Kazakhstan ramps up output later this decade. But that will From Arab News Above rates are applicable for amounts up to USD. 25.000 or be light, sweet oil too," a trader with a major said. equivalent for larger amounts, please refer to Treasury Department. MAY 29 , 2013 ARAB GULF MARKETS SOLAR INDUSTRY EBRAHIM KIM-BAHRAIN WINS TOP AWARD OVERCAPACITY KANO0 BUYS FOR MERGER ROLE KEY PLOTS AT Kuwait Finance House - Bahrain received the Best UNLIKELY TO MANA RA Investment Advisory Service 2013 Award from CPI DISAPPEAR SOON Financial for its role as the lead and transaction advis- Overcapacity in the glob- PROJECT er for the three-way bank merger in Bahrain that was al solar industry is unlikely Bahrain-based Ebrahim completed last December. to disappear soon, suggest Khalil Kanoo, the exclu- KFH-Bahrain, since late 2011, worked as lead and trans- data and strategies out- sive distributor of Toyotaota action adviser for the merger between three Bahrain-based lined in the recent financial & Lexus vehicles in the Islamic banks, Elaf Bank, Capital Management House and reports of top manufactur- Kingdom, has purchased a Capivest, creating a strengthened financial institution with ers. set of plots at the new total equity exceeding $300 million and total assets in That surplus has con- "Investment Gateway - excess of $400 million spanning Mena, Europe and Asia, tributed to sharp falls in the Bahrain" project of said a report in the Gulf Daily News. average selling prices of Manara Developments "Winning this prestigious award proves the market's solar panels, or modules, in Company the understanding of the need to create stronger entities, as this with knock-on impacts for Muharraq Governorate, is the first ever merger of its kind that has resulted in cre- manufacturing profit mar- TradeArabia News ating a robust merged entity that is positioned to better gins. Strategies to maintain Service said. compete in the dynamic and growing global Islamic bank- margins, as prices continue These plots will be used ing and investment industry," said KFH-Bahrain chief to fall, include mothballing to build new maintenance executive Abdulhakeem Alkhayyat. or closing existing factories, and support service centers "The successful completion of this transaction is a great Reuters quoted. for Kanoo's operations, achievement for us and we will continue our vision and But there is a delicate bal- said a statement from the strategies in contributing towards the economic growth ancing act where no compa- developer. and sustainability of Bahrain. We consider this accolade as ny wants to give up its share "We are proud that one of another milestone. the leading and most influ- of a global market which This annual event is organised by CPI Financial based in grew at a compound annual ential family businesses in Dubai. CPI is the leading publisher of financial magazines the Kingdom of Bahrain rate of 52 per cent from 2002 in the Middle East, Banker Middle East, Islamic Business have chosen to invest in the to 2012. & Finance and Private & Hedge Funds Middle East. "Investment Gateway - Companies are choosing The Islamic Business and Finance Awards have been Bahrain project" shortly between market share and designed to encourage, inspire and reward excellence after its launch, remarked *bid Socomid* Paws as . OW Sid sed No* albs profit. Dr Hasan Al Bastaki, the Oord Ora WI libit within the global Islamic business and finance community Evidence from the larger managing director of and they have become the yardstick by which Islamic listed manufacturers sug- Manara Developments. Middle East and North Africa at the King Hussein Convention Centre at the Dead Sea on Saturday. (Reuters) finance institutions and practitioners across the globe gests that leading companies "This also emphasizes our measure themselves. at present are split on strate- confidence in this project JORDAN HEADING FOR 3.5% GROWTH MASHREQ TO ENOC UNIT TO COMMISSION $100M gy, with some continuing to being the first of its kind in Jordan's economy is expected to grow around 3.5 per cent this year driven by remit- OIL TERMINAL ramp up loss-making capaci- the light industry and com- tances, higher domestic consumption and some pickup in construction activity, ENHANCE MOBILE ty, while others have shelved Horizon Terminals Limited (HTL), the terminals expansion plans, but only a mercial estate market, while Jordan's Central Bank governor said on Saturday. BANKING APP business and wholly-owned subsidiary of Emirates providing competitive Ziad Fariz told Reuters on the sidelines of a World Economic Forum (WEF) conference UAE-based Mashreq, a small minority have moth- National Oil Company (Enoc), said its new oil termi- balled or closed factories. prices in exchange for a on the Middle East that the latest estimate, compared to 2.7 per cent growth posted last year leading financial institution, nal, built at a cost of over $100 million in Fujairah, will to launch an That may not bode well for number of value added fea- depended on several factors, including the extent of the impact of a large Syrian refugee plans be commissioned at the end of this month, enhanced version of its the wider, global industry, tures available to the own- influx on the aid dependent economy that would only become clearer by year-end. TradeArabia News Service said. mobile banking app, which where leaner capacity will be ers in this project," he said. Jordan's economy, which imports almost all its energy and commodity needs, has suf- The eleventh terminal of HTL, the new Fujairah facility Dr Al-Bastaki also point- fered from Arab Spring uprisings in the region. Tourism receipts, remittances from will be made available to the main route to a return to has a storage capacity of over 240,000 cubic metres, and profitability, and suggests ed out that Manara had Jordanian workers abroad and investment inflows have been hit. customers on Blackberry10 will significantly contribute to further establishing the more value destruction to undertaken and developed The International Monetary Fund (IMF) said earlier this year it expects the economy to and Windows8 and tablet emirate as a regional hub for the oil & gas trade. come as companies continue this project after a detailed expand above 3 per cent in 2013, reflecting an increase in government capital spending, a based platforms, The new terminal is linked directly to the Port of to take provisions on inven- study undertaken by the recovery in exports and higher domestic consumption. TradeArabia News Service Fujairah oil tanker berths, and has 10 bays of tanker truck tory, close factories or file company that is focused on Fariz said inflation was also expected to ease slightly to around 5 per cent this year from said. loading racks, associated facilities, an advanced mainte- for bankruptcy. offering uniqueness and an higher 6 per cent estimate with lower food prices. It stood at 4.5 per cent last year. The current version of the app is available on Apple and nance workshop, and marine receipt and loading pump The stratospheric growth excellence in the various Other signs of recovery include foreign reserves which have been boosted by at least $ Android phones. Registration house. of the solar industry is illus- aspects of light industries, 1.5 billion of Gulf money and greater confidence in the local economy by investors, offi- Equipped to meet the growing demand for storing bulk commercial showrooms, and usage of the upgraded trated by the recent expan- cials say. liquid oil products such as fuel oil, naphtha, gasoline, gas and three story commercial version called Snapp is sim- sion of seven of the top 10 oil, jet fuel and LPG, among others, the new terminal in buildings. ple and free of cost, Mashreq producers by shipments said in a statement. Fujairah is the second such facility of HTL in the emirate. which publish relevant data. BAHRAIN SET TO TOUGH TIME AHEAD FOR ARAB SPRING NATIONS It is also the sixth terminal of ENOC in the UAE, with Arab spring countries face rising social tensions that could thwart an early economic Customers may also access Those companies were: REVAMP FISH Mashreq Snapp using their another new terminal being developed in Jebel Ali with a First Solar, Hanwha Solar, recovery from over two years of political turmoil that has worsened fiscal pressures and storage capacity of over 141,000 cu m. threatens macroeconomic stability, a senior IMF official said. Mashreq0nline username and JA Solar, Jinko Solar, Trina, MARKET Enoc CEO Saeed Khoory said the new oil terminal in A fish market in Masood Ahmed, International Monetary Fund (IMF) Director for the Middle East and North password, it added. Yingli and Canadian Solar. Africa, said oil importers Morocco, Tunisia, Egypt and Jordan faced the double shocks of high This advanced mobile Fujairah is of strategic importance to the energy sector of The manufacturing capaci- Malkiya are of Bahrain the region, and in further establishing the emirate as a key that has remained unused energy and food import bills and the impact of a global economic downturn along with growing banking application will pro- ty of those seven module regional hub in the oil & gas trade. for five years despite a popular disaffection since the wave of Arab revolts over two years ago. vide customers a simple and makers alone at the end of "Our investment in this new facility marks our com- BD73,000 ($192,531) reno- "The big challenge this year is to manage the expectation of an increasingly impatient pop- user-friendly access to their last year corresponded to 44 mitment to support the Fujairah Government's strategic vation could be given ulation to undertake the measures that will stabilise the economy and would begin to lay the bank accounts from their per cent of actual global growth vision, and also add value to our stakeholders," he another revamp foundations of an economic transformation that would generate more job creating and inclusive smartphone. demand for solar panels in . stated. It was snubbed due to a growth," Ahmed said. Snapp App is built on 2012. lack of facilities such as air "Those political transitions are turning to be more prolonged and in some cases more con- Vipera Platform, a flexible That suggests the scale of unemployment is higher and social-unrest is rising,"Ahmed told Reuters in an inter- software technology from conditioning, say council- tentious and industry overcapacity, given view on the sidelines of a World Economic Forum (WEF) conference on the Middle East and Europe that allows full lors. there are 100 or more small- North Africa. mobile access to any financial But plans are in the er module manufacturers Ahmed said the plight of these countries hit by protests was worsened by extra spending on services data or transactional pipeline to improve the mar- worldwide. food and energy subsidies that forced governments to draw on foreign reserves and expand activity/transaction. ket with the help of The seven had combined domestic borrowing at high interest rates that raised public debt. One of the most unique fea- investors after the module production capacity Political turmoil was hurting much needed private investments in the meantime, the IMF tures of Snapp is the GPS Municipalities and Urban of 13,650 megawatts (MW) official said. locator for Mashreq Flavors Planning Affairs Ministry as of December, their finan- Two years of higher spending on wages and food and fuel subsidies will push budget deficits Dining Programme, which backed a Northern even higher to an average eight per cent in 2013. In Egypt, for example the budget deficit was hosts details of discounts up cial reports show, compared Municipal Council propos- expected to rise to between 10 and 12 per cent of GDP this year, the IMF official said. to 25 per cent and locations of with actual global demand al. "The cost of that is that budget deficits have begun to rise and in some cases have risen to more than 650 partner restau- (as recorded in installed The Gulf Daily News, had levels that are progressively unsustainable," Ahmed said. rants. capacity) last year of 31,095 reported last month that Egypt's foreign exchange reserves have slumped since the revolution that toppled president Aref Al Ramli, head of MW, according to the councillors had called for Hosni Mubarak in 2011 due to falling revenues from tourism and foreign investment. Jordan's Electronic Business & European Photovoltaic local investors to help foreign reserves had also fallen sharply but have since recovered this year with an infusion of ✓ Innovation at Mashreq said, Industry Association () PIA). revive the market. Gulf capital. Growth levels that are forecast to average around three per cent this year for oil "Smartphones constitute 43.7 Regarding their manufac- In a letter addressed to the importing countries were insufficient to absorb more job entrants in a region with traditionally per cent of total cellular hand- turing strategy, two of the council, Municipalities and high unemployment that has increased since the wave of unrest that swept the region since 2011. sets in the UAE and this is seven cut capacity in 2012, Urban Planning Affairs "Already young people are suffering unemployment levels of close to 30 per cent and in last expected to witness an one left capacity unchanged, Minister Dr Juma Al Ka'abi two years there have been further increase in some countries," the IMF official added. I increase. Mobile banking has EMP EXPANDS IRAQ CARD and the remaining four instructed the council to co- Governments had to grapple sooner than later with the politically sensitive subsidies that expanded. Their total manu- topped $240 billion in 2011 for the Middle East North Africa (Mena) region and accounted for great potential in the region, OPERATIONS ordinate with the Tender especially in the UAE which Emerging Markets Payments (EMP), a leading elec- facturing capacity in aggre- Board on the project. about one half of global energy subsidies. gate grew by 12 per cent or This was equivalent to about 8.5 per cent of regional GDP, IMF figures show. has a 90 per cent penetration tronic payments processing company in the Middle Council chairman Ali Al by 1,470 MW. Universal energy subsidies were benefiting the top 30 per cent income bracket among con- rate. East and Africa region, has signed an agreement with Jabal stressed that fast track- "At Mashreq, we focus on Horizon Scope to promote its third party card process- Three companies provided ing of procedures was need- sumers and although Morocco, Jordan and Tunisia had begun to move towards targeted subsi- dies, more was needed to help reduce hefty subsidies that diverted much needed funds to spur making banking convenient ing services to banks in Iraq, TradeArabia News forecasts for manufacturing ed to ensure investors were Service said. growth. for our customers by provid- capacity expectations in found as soon as possible. ing them with access when Horizon Scope is a subsidiary of ARCHS Group and 2013, two expecting this to "We want this project to GULFTAINER PLANNING $500M INVESTMENTS and where they need it. We specializes in providing cutting edge solutions in the remain unchanged (Jinko benefit fishermen and peo- G ulftainer plans to invest $500 million over two years as it expands in Russia and use the combination of people fields of telecommunications and information technology. and JA Solar) and one possi- ple in the area, which was Saudi Arabia, the world's two biggest oil producers, Bloomberg said. and technology to deliver the As per the deal, Horizon Scope will be handling mar- bly to expand slightly (by 4.2 the whole point of establish- The company, which operates the Russian port of Ust-Luga south of St Petersburg, aims service and convenience that keting activities on behalf of EMP in Iraq. Horizon Scope per cent, Trina Solar). currently operates 8,000 terminals across Iraq to enable ing it," he said. to announce further expansion in the country before the end of the third quarter, vice-chair- is right for our customers." The leading companies are "The help of an investor man Badr Jafar said in an interview at the World Economic Forum in Jordan last Saturday. airtime purchases. not a representative sample: Customers can take advan- The agreement was signed by Paul Edwards, EMP can allow the market to be "We're hugely excited about the potential Russia holds," said Jafar, who is also chief they are the firms with the tage of this customer Group chairman, and Yazau Al _Sabbagh, Horizon Scope revived and perhaps allow executive officer of Gulftainer parent Crescent' Enterprises. Interaction model by down- most resources' and clout to better services to be provid- "We're in talks with a number of parties in Russia, with the government, with private executive director. loading the application from "As we continue to expand across the Middle East, we ride out the solar shakeout, ed to vendors." companies. Expansion is not necessarily new ports, but related logistics including in-land the Apple or Android stores. and so may be expected to Al Jabal said the council container depots, potentially rail." will aim to strengthen our position by partnering with Non-Mashreq customers will industry leaders, such as Horizon Scope. We are commit- contract less. will now seek to work with Gulftainer operates ports in countries including Brazil, Kuwait, Iraq and Turkey. The have the opportunity to view There have been plenty of the Tender Board and the company seeks to enter Saudi Arabia, the world's biggest Arab economy, to capitalise on ted to growing our presence in Iraq and the region, and in product offers, such as zero doing so providing world-class, reliable processing serv- bankruptcies among weaker I Northern Municipality as it opportunities created by increased public spending, Jafar said. per cent Easy Payment Plan ices to our clients," said Edwards. "Over the years, we players and no doubt capaci- !oversees implementation "Saudi Arabia plans on spending hundreds of billions of dollars on infrastructure," he and Travel Programme, have built a well-founded reputation across the markets of ty destruction is proceeding. and execution of tenders to said. "A lot of it will be to try and make sure there's maximum connectivity between the locate nearby restaurants, the MEA as the leading smart card processing company. Two opposing strategies ensure the best proposed different regions and that ultimately need transportation and need logistics." Mashreq branches and ATMs We handle the processing requirements of 135 banks, 30 now for surviving the shake- development is chosen. without having to log in. 000 retailers, as well as governments and consumer out and becoming a leader in P I finance institutions, in 45 countries and support all card a subsequent, consolidated UAE'S ICT SECTOR TO GROW 22.3% associations and all electronic distribution channels," he industry might be: first, to IN 2013 stated. According to him, EMP is expanding its business build a leaner, more sustain- The ICT sector continues to be one of the highest in the Levant and Iraq. In Jordan it operates the national able business, or, second, to growing sectors in the UAE with projected growth to ATM switch, Jonet, and has an 85 per cent market share continue ramp up in the hope hit 22.3 per cent in 2013, according to a report. for merchant acquiring. As part of its focus on expanding of a revival in prices soon Most organizations from different industries across into Iraq, it concluded an agreement with The Bank of after more companies have the region use ICT to carry out essential functions and to Baghdad in 2012 to provide card hosting and transaction gone to the wall. sharpen competitive advantage through the deployment management services, as well as card personalization, and An example of the latter, of the latest networking, applications and communication ATM and POS driving. Commenting on the deal, Al- "keep expanding" approach Sabbagh said, "We have been successfully operating in technologies, stated Genesis Consulting ME, a leading might be Yingli, as suggested the Iraqi market for a long time, and have demonstrated strategic planning, PR and integrated marketing commu- by the trajectory of its con- nications company in the region, TradeArabia News our commitment to always offer innovative financial solu- tions to our clients." tinued rapid growth in facto- Service said. ry capacity and supported by According to Genesis, public relations and marketing $2M US AID FOR BAHRAIN statements in its 2012 annual communications are playing a vital role in strengthening report. "The size of manu- and leveraging the continued growth of the ICT sector.in OPPOSITION the UAE and the region. Radical Shia groups, claiming to be human rights facturing capacity has a sig- IDC, a leading global market analysis firm, reported defenders in Bahrain and other GCC countries, have nificant bearing on the prof- that global spending on information technology (IT) received more than $2 million in financial support itability and competitive surged by 8 per cent to $1.5 trillion last year, with the from a US institute, a report said. position of PV product man- UAE recording 15 per cent year-on-year increase. The support was received from the US National ufacturers. Achieving Another report based on the feedback of experts taking Democratic Institute (NDI) in less than a year under dif- economies of scale from part in the 8th Financial Technology Summit shows that ferent programmes, according to a document obtained by expanded manufacturing the UAE's ICT industry is growing by 25-30 per cent per Arabic website Bahrain News, said the report in the Gulf capacity is critical to main- year across all sectors including hardware, software, Daily News. The document stressed that the NDI provid- taining our competitive posi- mobile and internet services. ed these radical groups with large amounts to implement tion," it said. Danish wind political programmes concerning change in the Gulf. Moreover, the rapid growth of the IT market in the turbine maker Vestas might It revealed that a year-long Change in Bahrain pro- UAE will present significant commercial and employ- be an exponent of the more ment opportunities as the demand for and the deployment gramme received $370,000, while Iran's Base Activity programme, which ran from February 2011 to January last cautious, "focus on profit" of new technologies continues to spread over the next rom Arab News approach in its latest annual few years. year, received $320,000. I. a report. MAY 29 , 2013 -pfRfiA ASIA NEWS 6 ASIAN MARKETS JET SHAREHOLDERS BACK ETIHAD PAKISTAN 'CAN MIXED IN DEAL CONSIDER IMF VOLATILE TRADE hareholders of India's Jet Airways last Friday DEAL AFTER approved a deal in which Abu Dhabi-based air- sian markets were REFORMS IN PLACE' mixed on Friday in S line Etihad will take a 24 per cent stake in the akistan's new leadership rollercoaster trade private carrier, media reports said. A expects first results of its after routs sparked in part by Jet shareholders approved the proposed issue of shares fears of tighter US monetary on a preferential basis to Etihad, at an extraordinary gen- p planned steps to shore policy, with Tokyo ending high- eral meeting held in the city, the Press Trust of India up its finances and ease a er a day after suffering its agency said. power crisis in two or three worst drop since the March Shares will be allotted only after completion of all reg- months and only then should 2011 quake-tsunami disaster, ulatory approvals. decide whether and on what AFP said. "The commercial agreement with Etihad will help us terms to seek an IMF bailout, a Regional markets swung wild- to expand network, reduce costs and increase profitabil- senior policy adviser said, ly after falling Thursday on weak ity," Jet's chairman Naresh Goyal reportedly told share- according to Reuters. Chinese data and indications holders. Most economists, lenders and from US Federal Reserve chief Jet officials were not immediately available to com- rating agencies say that the Ben Bemanke that the Fed could ment. nation's finances have reached start reducing its $85 billion-a- such a critical stage that a deal month bond-buying programme The Jet-Etihad deal, announced in April, is the first overseas investment in an existing Indian carrier since with the International Monetary at one of the next few meetings. Fund will be necessary and the Tokyo, which plunged 7.3 per New Delhi eased restrictions in September to allow for- eign firms a 49 per cent stake in the country's airlines. sooner it comes the better. cent in the previous session dur- But Sartaj Aziz, 84, who has ing frenzied selling, ended up Jet is India's second largest airline, with a 22.6 per cent 0.89 per cent, or 128.47 points, at market share, according to the country's civil aviation been advising incoming Prime 14,612.45. regulator. Minister Nawaz Sharif, and is The Nikkei had bounced back For the three months to December 2012, Jet reported a expected to take over as his chief in the morning but plummeted by net profit of 850 million rupees ($ 16.03 million), from a economic and foreign policy as much as 3.37 per cent after net loss of 1.01 billion rupees a year earlier, aided by ris- adviser when the new govern- lunch before regaining ground. ing fares and lowering costs. ment is sworn in in coming days, Seoul closed up 0.22 per cent, India is one of the biggest aviation markets in the said a deal with the IMF now or 4.26 points at 1,973.45. world as its large and growing middle-class scrambles would be self-defeating. Sydney dropped 1.56 per cent, or for air travel, spurred by rising incomes. "Right now, you can't reach an 78.9 points, to end the day at But the sector, once vaunted as a symbol of India's agreement with the IMF because 4,983.5, after its worst week of economic vibrancy, has seen its fortunes fade in the face the kind of conditions they trading for a year. of aggressive fare rivalry, a slowing economy, rundown would impose on you would not Hong Kong stocks closed infrastructure, high airport charges and expensive fuel. allow you to grow," said Aziz, down 0.23 per cent, or 51.01 who served as finance and for- points, at 22,618.67, but eign minister in Sharif's two pre- Shanghai finished up 0.57 per vious cabinets in the 1990s. cent, or 12.86 points, at 2,288.53. "But if our economic revival The volatility in Asia came package starts working in two after US stocks ended slightly lower Thursday, with the Dow Sudanese President Omar al-Bashir upon his arrival in Addis Ababa months, three months' time, and Jones Industrial Average falling it is clear that exports are picking 0.08 per cent, or 12.67 points, to up, our revenues are going up, 15,294.50, with Wall Street SRI LANKAN CARRIER TO BUY 10 AIRBUS AIRCRAFT FOR $ 1.3 B. then you need much less adjust- boosted by better-than-expected ri Lankan Airlines has signed a provisional deal with Airbus worth $ 1.3 billion to buy six A330-300 and four ment than indicated by the pres- US housing and jobless data. A350-900 aircraft between 2014 and 2023 to replace aging aircraft, the firm's CEO said, according to Reuters. ent situation." European markets took a S The Asian Development Bank, heavier hit, with most indices, The airline, seeking to modernize its fleet to cut fuel costs, will opt for Rolls-Royce Plc engines and use a lease-back one of Pakistan's major lenders, including London, Frankfurt and arrangement to conserve cash, CEO Kapila Chandrasena said. estimates it will need $ 6 billion Paris, dropping more than two "The total cost altogether is going to be around $1.3 billion. But deliveries are progressively from 2014 to 2023 on a stag- to $ 9 billion to meet its obliga- per cent, following the Asian gered basis," he said. tions, including about $ 5 billion lead. The carrier signed a memorandum of understanding on the purchase with Airbus last Friday, he said. in outstanding debt on an earlier But European markets Sri Lankan Airlines now operates with a 22-aircraft fleet including seven A320-200s, seven A330-300s, six A340-300s A Jet Airways passenger plane takes off from Sardar $ 11 billion IMF package sus- rebounded modestly at the start and two Twin Otters. • Vallabhbhai Patel International Airport in the western pended in 2011. of trading last week. Chandrasena said the national carrier needs to replace all six A340-300s with A330-300 aircraft and all seven A330-300s Indian city of Ahmedabad. (Reuters) But Aziz said those needs may Toshikazu Horiuchi, a broker with A350-900s. prove smaller if the economy with IwaiCosmo Securities in Sri Lankan, which had been managed by Dubai's Emirates Airline for a decade until 2008, aims to achieve a modern and INDIA'S HPCL TO BUY 40,000 BPD OF responded to new policies. Japan, said "extremely nervous" "We may have to go to the trading saw some investors lock fuel efficient twin-engine fleet by 2023. BASRA but if we go with the in profits with others searching The A340 has lost favor with airlines due to the cost of running four engines in an era of high fuel prices. Airlines are industan Petroleum Corp will buy up to IMF, out bargains after Thursday's switching to lightweight new-technology airplanes such as the carbon-fiber A350 and Boeing Co's Dreamliner, but sales of 40,000 barrels per day (bpd) of Basra light oil revived economy then probably plunge. the older A330 have held up better than expected due to its availability and competitive pricing, aerospace analysts say. from France's Total at a discount to the offi- all we will need is a loan to cover Chandrasena said the airlines considered offers by both Airbus and Boeing. H the repayments," he said. "Players rushed to profit-tak- cial selling price, said a source at the Indian firm, ing after monitoring a moderate "We looked at who is giving more value for us. In that discussion, it was apparent that the Airbus offer of A330-300s in Reuters said. Aziz said talks with the IMF gain in the morning as they want- the interim and long-term A350-900 is much more favorable than the Boeing," he said. "Boeing did not have interim air- HPCL will lift 15,000 bpd of the Iraqi oil with an were going on and did not rule ed to secure profit ahead of the craft. They were only interested in the long-term offer, which was the 787." option to buy another 25,000 bpd, said the source, who out a decision sooner if a thor- weekend," he said. Sri Lankan Airlines estimates that it incurred a loss of $ 134.8 million in the 2012/13 financial year to March 31, similar declined to be named as he is not authorised to speak to ough review of state finances by Earlier, Kenji Shiomura, to the previous year, and is finding it difficult to finance new aircraft purchases. "We don't have cash," Chandrasena said. media. the incoming government strategist at Daiwa Securities, "So what we are doing is a sale and lease." He said that the deal was signed in the first week of showed that the situation was described Thursday's drop as a He said the airline would wcork with either a financial institution or a leasing firm that would buy the aircraft and lease more serious than thought. temporary correction to recent May, but declined to give details on pricing. them back to the carrier. HPCL is also looking to buy 60,000 bpd from Iraq's Sharif, toppled by the military advances. He said the national carrier would be looking at a tease period of 10 to 15 years, with a shorter period for the A330-300s 14 years ago, swept back to "There has not been any grave State Oil Marketing Organisation (SOMO) compared to and a longer period for the A350-900s. 40,000 bpd last year, as it plans to cut purchases from power in a landmark May 11 event that could change corpo- he said. "We are talking to various (leasing companies) right now about the sale and lease-back on the six 330-300s," Saudi Arabia and has halted imports from Iran due to election that marked the first rate earnings outlooks and what transfer of power between civil- happened yesterday should be a insurance problems triggered by western sanctions. correction to the recent excessive TANZANIA: HOUSE TEAM TO PROBE GAS PIPELINE MISCONCEPTION Sanctions imposed by the United States and Europe to ian governments in Pakistan's rises," he said. he Speaker of the National Assembly, Ms Anne Makinda announced formation of a thirteen member select force a halt to a controversial nuclear programme that 66-year history, about half of Prime Minister Shinzo Abe's committee to probe dispute surrounding construction of a natural gas pipeline from Mtwara to Dar es Tehran says is for peaceful purposes saw Iran's oil which has been spent under mili- pro-spending, pro-growth poli- Salaam. Tanzania Daily News (Dar es Salaam) said. exports more than halve last year, costing it $5 billion a tary rule. cies have weakened the yen more ."After the government had issued its statement in the house, the Parliamentary Steering Committee met and decided that month in lost revenue. That, combined with a strong than 20 per cent against the dol- a select committee be formed to listen to residents of Mtwara over their skepticism in the government's plan to construct the The sanctions have driven refiners in India, Iran's sec- voter turnout and a clear majori- lar over the past six months help- gas pipeline," she said. Ms Makinda noted that in a calm environment the committee will tour Mtwara and meet various ond-largest oil buyer, to reduce imports because local ty captured by Sharif's Pakistan ing to boost share prices nearly groups. She urged residents to remain calm and give utmost cooperation and speak freely on their grievances. national insurers have said that cover and losses on pro- Muslim League-Nawaz (PML- 60 per cent. But some analysts "I call upon residents of Mtwara to co-operate, be open and free to speak their mind without fear. The committee will have cessing the crude would not be payable by European rein- N), raised hopes for economic had warned a correction was sufficient time to meet residents, groups, organisations and leaders," she said. surers. revival and greater stability. overdue. The "slump is not nec- The Speaker announced the decision shortly after the house approved the Ministry of Energy and Minerals 2013/14 budg- HPCL operates a 166,000 bpd Vizag refinery in south- But he takes over a country essarily the end of the bull mar- et estimates. She said the committee will be guided by four-clause terms of reference which includes probing the source of em India and a 130,000 bpd plant in western Maharashtra that is almost broke, plagued by a ket in Japanese equities, but the chaos, make a follow up on various steps taken by the government, meeting stakeholders and get their views on gas proj- state. Taleban insurgency and sectarian next few months will be much ects and look at any other issues related to the mayhem. violence, crippling power cuts harder going", London-based CHINA PREMIER CRITICISES EU and a growing army of unem- Capital Economics said in a note The team will be under the chairmanship of Mr Charles Mwijage (CCM). Other members are Said Arfi (CHADEMA), Dalaly Kafumu (CCM), Said Nkumba (CCM), Cynthia Ngoye (CCM), Hamad Rashid Mohamed (CUF), Ramo Makani FOR TELECOM PROBE, SOLAR ployed. before afternoon trading. The nuclear-armed country of (CCM) and Muhammad Amour Chomboh (CCM). PANEL TAX Selling pressure last week was 180 million, the world's sixth Cecilia Paresso (CHADEMA), Rukia Kassim Ahmed (CUF), Mariam Kisangi (CCM), Agripina Buyogela (NCCR- hina's Premier Li Keqiang has slammed the accelerated when British bank- most populous, has long been an ing giant HSBC said its prelimi- Mageuzi) and Selemani Jafo (CCM) are also in the team. Earlier, the Minister for Energy and Minerals, Prof. Sospeter European Union for plans to probe the coun- economic underachiever, habitu- nary purchasing managers' index Muhongo noted that the country's economy would not move to great heights without reliable energy and that natural gas try's telecom products and impose taxes on its C ally relying on aid from interna- (PMT) for China fell to a seven- was the only solution at hand. solar panels, Chinese state media reported. tional partners concerned about month low of 49.6 in May, put- Since we inked the natural gas pipeline contract in September 2011 we have spent 596.49million US dollars in purchas- Cited by the Xinhua news agency, Li said the planned ting it below the 50 mark indicat- ing electricity and by the time we complete construction in December next year, we will have spent 1.44 tm US dollars, this measures would "not only cause serious damage to related its strategic importance. ing contraction. is too much," he said. industries, enterprises and employment in China, but will Aziz, who led work on the also hurt the personal interests of users and consumers in PLM-N's policy manifesto, said GAMBIA: IMF APPROVES NIGERIA: CENTRAL BANK SELLS N277.9B. WORTH OF TREASURY Europe." the new cabinet would tackle in BILLS Li said he hoped the EU would uphold the principles of its first 100 days the most press- U.S.$2.3 MILLION FOR GAMBIA ing challenges of power short- he Executive Board of the International he Central Bank of Nigeria, CBN, sold treasury bills worth N227.91 billion this week, free trade while keeping China-EU economic and trade ages and financial hemorrhage Monetary Fund (IMF) has approved Primum Times said. The Financial Market Dealers Association, FMDA, disclosed this on relations in mind, AFP said. The critique, delivered in a 1.555 million Special Drawing Rights its website last Friday. speech to business and financial leaders during a visit to with a series of steps to cut waste T and improve efficiency. (SDR) [approximately US$2.3million] for The FMDA said that five categories of treasury bills were sold at the last biweekly auctions. It said the Switzerland on Friday, echoes previous warnings by China, Gambia. The amount was approved Thursday, auctions included the Open Market Operation, OMO, which comprised the 139-day and 128-day tenor which has threatened the EU it will take "assertive meas- Aziz said tackling inefficien- after the board completed the first review of bills. It said that N59.53 billion worth of 139-day bills were sold, while N110.8 billion worth of 128- ures" to defend its interests. The two sides are embroiled in cies, clamping down on those Gambia's economic performance under a pro- day treasury bills were sold. The 139-day and 128-day tenor bills had yield rates of 13.32 per cent and tit-for-tat trade disputes on items ranging from agricultural who don't pay bills, should help gramme supported by the Extended Credit 13.03 per cent, respectively. It also said that the 91-day, 182-day and 364-day tenor bills were auctioned products to steel tubes, highlighting growing trade tensions squeeze 10-12 per cent more Facility (ECF) arrangement. at the Primary Market Auction, PMA. "The three bills - the 91-day, 182-day and 364-day tenor bills - amid financial uncertainties around the world. The energy from the existing system, This brings the total disbursements under the worth N25.65 billion, N31.25 billion and N50.68 billion, respectively - traded at yield rates of 9.20 per European Commission said this month it would open an and the Pakistani people, some arrangement to SDR 10.885 million, approximate- cent, 12.45 per cent and 14.30 per cent, respectively," the association said. anti-dumping and anti-subsidy investigation into mobile of whom have no electricity for ly US$16.2 million. In completing the review, the telecommunications network equipment and components 20 hours a day, should feel the board approved the authorities' request for a waiv- from China if bilateral negotiations fail. The European difference in coming weeks. er for nonobservance of the continuous perform- Commission recently approved imposing a custom duty of On the budget side, the gov- ance criterion on external arrears and a re-phasing 47 per cent on China-made solar panel products to protect ernment will overhaul loss-mak- of the reviews. In May last year, the Executive European manufacturers. ing state firms by installing man- Board approved a three-year ECF arrangement Li warned that if the EU goes ahead with the moves, it agers with private sector creden- with an amount equivalent to 18.66 million SDR, risks promoting protectionism and may harm Chinese com- tials, tighten tax collection by which was then about US$28.3 million for The panies and employment. "In the current economic circum- building computerized databases Gambia to support the government's economic stances all countries should strive to maintain a stable and and freeze hiring by government program me, The Daily Observer (Banjul) said. open international trade environment and be cautious in agencies, Aziz said. Naoyuki Shinohara, deputy managing director using trade remedy measures." of the IMF and the acting chairman, in issuing his statement said: "The Gambia economy is still CAMEROON: FUEL TRANSPORTATION - US INVESTORS recovering from the severe drought of 2011. The INTERESTED authorities' policies and the support of the interna- consortium of American investors have manifested interest in constructing a tional donor community played an important role pipeline to transport petroleum products from the oil refinery in Limbe through in enabling the recovery in agriculture to take A Douala to the capital city, Yaounde counting for the first phase.The investors led hold." He however stated that downside risks by the Vice Executive President of Govind Development, PLC, Andy Bennet disclosed related to the domestic debt burden, weaknesses in their intentions during an audience with the Prime Minister, Head of Government, the balance of payments, and inflationary pres- Philemon Yang at the Star Building, May 23, 2013. They indicated that they want to use sures, has weighed on the outlook. He further their stay in the country to hold talks with more government officials and heads of differ- remarked that a steadfast commitment to the ent companies to discuss details of the project and other possible areas of investment, objectives of the Fund-supported programme and Cameroon Tribune said. structural reforms will be necessary to address the One of the investors, John Richter of the Richter International Trade Finance Consulting, dis- challenges ahead, boost growth, and reduce pover- closed to reporters after the talks with Prime Minister Yang that the consortium has the "tech- ty. "High public indebtedness continues to pose nical expertise and can bring direct foreign investment necessary to build the project to the ben- risks to macroeconomic stability and significant efit of Cameroon." He justified that they have contacts with investment groups in the United costs to the budget. To address this problem, the States of America that show interest in some projects in Cameroon. authorities plan to sustain the fiscal adjustment The construction of the pipeline to transport petroleum products from Limbe to Yaounde, and reduce domestic borrowing," he revealed, and John Richter said,will cost over one billion US Dollars (about FCFA 500 billion) and the added: "Eventually, as interest costs come down, pipeline will last for 30 years. For the project to be executed, the investors will want govern- the fiscal savings could help finance priority social ment to provide licenses to put the pipeline in place and help to get the right of way. As to when programmes under the Programme for Accelerated the project can start, he said some agreements will have to reached and in a near future the Growth and Employment (PAGE). Improving debt investors will sign a Memorandum of Understanding with government. The investors are inter- management is also important". ested to form joint ventures with Cameroonian companies to develop infrastructure projects.

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