“The stock market is a device of transferring money from the impatient to the patient” / Themeobserver.com Warren Buffet The most successful investor in the world / Themeobserver.com L.E 2.85 1930-present ESTABLISHED 1945 Political conflicts fall in oil prices threat $835bn is the cost of Arab'Spring' of terrorism a triangle of danger in Kurdistan Economiesof Syria 3 Tunisia Yemen Experts: Libya It the government's duty 5 4 to attract new cash to EGX Riskrd Triangle need intensive care 63 Year No. 4 www.meobserver.org Wednesday, 27 January 2016

7 Anti-cctimsA more turbulent Egypt 2016: A promising year for investors period in store The 25th of January 2016 marks the 5th are in intensive progress; the Power to bypass fatigue, bureaucracy, and anniversary for the 2011 Egyptian Rev- sector has strongly grown, which is frustration generated over the past sev- olution when people called for bread, expected to yield major input to the eral years... along with decision mak- Prime Minister Haider Freedom & Social justice. Since then, country’s economy within 4 years. On ers who need to make stronger and firm Egypt’s resources were drained and the other hand, major infrastructure decisions needed to achieve targets set. in-security due to terrorism & criminal projects have been launched and are in Investment in Technology in Egypt al-Abadi says Iraq hopes activities caused panic and frustration. progress with variable short and long- is a great market that needs smart in- On the 30th of June 2014, the current term economic returns. The current ad- vestors, Egypt’s labor is characterized to secure IMF loans administration took over, and with a ministration is also focusing its invest- by its innovative mind that is the real determined political will to deliver ments on develop Small and Medium wealth, some smart investors are cur- what the people called for on the 25th Enterprises (SMEs) through diverse rently studying projects to incubate and of January 2011. programs, various other projects in sec- utilize this wealth. European Over 2015, Unemployment rates tors of Agriculture and Industry charac- Despite harsh economic attacks on started dropping, growth rate stands at terize 2015 as a leap towards the future. most of the successful Arab countries Central Bank’s 5 4.5 per cent to 5 per cent, compared The Suez Canal remains the high- during the so-called “Arab Spring”, to less than 2 per cent that we went light of achievements reflecting the Egypt was able to maintain stability Mario Draghi through over the past years. The gen- ability of raising $8.0bn in a week, 50 and regain its natural economic statue eral level of security has currently im- per cent of which was outside the Fi- within the global market. The new ad- hints at additional proved to a great extent compared to nancial Sector - the project’s delivery ministration under President Abdel Fat- daily criminal & terrorist attacks, trans- came right on schedule, both (collec- tah Al-Sisi’s sophisticated agenda has stimulus 6 parency levels of the government with tion and delivery) reflect that Egypt is helped Egypt secure its interests in both the international community are at a a market that has upbeat potential for the region and the globe. 2016 looks much higher level, major achievements growth, power to achieve, and hidden like a launching year for the Egyptian & projects have been developed spe- abilities that can directly lead us to a economy and a lucky year for investors 30 cially in the field of Energy, as well as brighter future. In 2016, we need to looking for opportunities. PA prosecutes 6 TV channels infrastructure and development. Vari- unleash our Capital, abilities, and po- 25 ous projects in the pipeline and others tential towards development, we need By Mahmoud Fouda 2 KHALED KHAMIS Lawyer For Legal advice, start-up companies, foreigners work permit, helping in visa extracting procedures, residence,

Al-Sisi and Putin international arbitrator and trademark registration. (+20) 01223764091 Egypt, Russia to sign MoU to establish [email protected] industrial zone in Suez Gulf area Ahram Online - A Russian The meeting marks the 10th ses- delegation headed by minis- sion of the Egypt-Russia intergov- ter of trade and industry is ernmental economic committee. scheduled to meet Egyptian The Russian Direct Invest- counterparts next week to ment Fund (RDIF) is also ex- sign number of Mous be- pected to agree with Egyptian tween both countries, includ- banks to finance future pro- ing a deal to build a Russian jects to be carried out by pri- industrial zone in Egypt’s vate sector in the two states. Suez Gulf area, Egyptian President Abdel Fattah El- ministry of trade and indus- Sisi has stressed that he try stated on Sunday. "looks forward to taking the The Russian delegation will first steps towards a Russian include representatives of 60 industrial zone in the Suez major companies. Canal area."

King Salman and President Xi open petroleum research & study center 4

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Al-kawmia Distribution in the world the in Distribution Al-kawmia

renewables push. renewables supermarkets network to 55 branches by by branches 55 to network supermarkets - reserva of lot a stirring is sector health the ally. Pharos Holding, an investment bank bank investment an Holding, Pharos ally. - na gulf six The orders. buying of worth

Al-Ahram Distribution in Egypt in Distribution Al-Ahram money EFG Hermes is trying to raise in its its in raise to trying is Hermes EFG money panding the Carrefour hypermarkets and and hypermarkets Carrefour the panding Rameda. Abraaj’s intensive investments in in investments intensive Abraaj’s Rameda. - region expand to and year this agement the market on Sunday with LE39.5 million million LE39.5 with Sunday on market the

Abdel Wahab declined to say how much much how say to declined Wahab Abdel - ex to addition in 5bn LE of investments cent and 17 per cent respective stakes in in stakes respective cent per 17 and cent - man under assets its double to planning Friday. Arab investors were net buyers in in buyers net were investors Arab Friday.

[email protected] pean plants to reduce income immediately. immediately. income reduce to plants pean velop Mall of Egypt at 6 of October with with October of 6 at Egypt of Mall velop Management decided to sell their 30 per per 30 their sell to decided Management is is since August to reach $32.18 per barrel on on barrel per $32.18 reach to August since Pharos Holding investment bank: investment Holding Pharos

- Euro operating already in invest to funds - de to plans it said company the (EEDC) ing Company and Sphinx Private Equity Equity Private Sphinx and Company ing under $30. under rallied after oil recorded its highest level level highest its recorded oil after rallied

region. The company wants to use its own own its use to wants company The region. nomic and Development Conference Conference Development and nomic - Hold Raya after Pharmaceutical Rameda the state budget if the price of oil remains remains oil of price the if budget state the Egyptian Bourse as most of the Gulf shares shares Gulf the of most as Bourse Egyptian Rest of The World US$ 420 US$ World The of Rest

ing its first investment outside the MENA MENA the outside investment first its ing - Eco Egypt’s during 2015, March In acquire the pharmaceutical manufacturer manufacturer pharmaceutical the acquire government might resort to further cuts in in cuts further to resort might government Sunday’s revival was not confined to the the to confined not was revival Sunday’s

Arab Countries US$ 375 US$ Countries Arab

- mark 2014, in France in wind from power vestment of LE4 billion. billion. LE4 of vestment pany is considering to make an offer to to offer an make to considering is pany erage oil price of about $40 per barrel. The The barrel. per $40 about of price oil erage the National Bank of Egypt. Egypt. of Bank National the

Egypt L.E 275 L.E Egypt EFG invested $208 million to generate generate to million $208 invested EFG - in overall an with week last Center City - com the sector. health Egyptian the in - av an on based was budget the economy, with the CBE and a $700 million loan with with loan million $700 a and CBE the with

hab told Bloomberg. told hab of a new shopping mall in Egypt, Almaza Almaza Egypt, in mall shopping new a of is preparing for a yet another investment investment another yet a for preparing is In Saudi Arabia, the region’s largest largest region’s the Arabia, Saudi In a one-billion-dollar financing agreement agreement financing one-billion-dollar a

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- Wa Abdel Bakr equity, private for rector ny’s CEO. The company has lain the brick brick the lain has company The CEO. ny’s the private equity group group equity private the of oil above the $30 per barrel threshold. threshold. barrel per $30 the above oil of cording to the Chinese president, including including president, Chinese the to cording Abraaj Capital: Abraaj

- di managing bank’s the years, three over - compa the to according years, five coming December of this year. this of December the coming period is maintaining the price price the maintaining is period coming the - ac 15billion, $ to up worth be could that

[email protected]

watts of wind and solar assets in Europe Europe in assets solar and wind of watts - up the through 23bn EGP reach to Egypt expected to be complete between July and and July between complete be to expected terminant of the markets’ directions during during directions markets’ the of terminant in Cairo. Egypt and China signed projects projects signed China and Egypt Cairo. in

- mega 1,000 about targeting is bank The company plans to double its investments in in investments its double to plans company also working on two IPOs in Egypt that are are that Egypt in IPOs two on working also - de main the that see observers Market signed during the Chinese president visit visit president Chinese the during signed

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the Middle East over the next five years. years. five next the over East Middle the based shopping mall, retail and leisure leisure and retail mall, shopping based tors with a total value of LE3-4 billion. It is is It billion. LE3-4 of value total a with tors financial markets financial the positive effect of news of agreements agreements of news of effect positive the

the renewable energy field in Europe and and Europe in field energy renewable the the Dubai Dubai the - sec services financial and pharmaceutical stimulus measures to counter turmoil in in turmoil counter to measures stimulus The selling spree was stronger than than stronger was spree selling The Majid Al Futtaim (MAF): Futtaim Al Majid 00.202.23939732 : Fax

pendent Arab investment bank plans to tap tap to plans bank investment Arab pendent tabar test labs. labs. test tabar acquisitions in retail, beverage, education, education, beverage, retail, in acquisitions on speculation central banks will expand expand will banks central speculation on pushing it to a 28-month low on Thursday. Thursday. on low 28-month a to it pushing

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- inde largest the - Mok Al and Borj Al both owns it addition, currently working on nine mergers and and mergers nine on working currently surge in world stocks since June 2012 2012 June since stocks world in surge the market of 2.5 per cent of its strength strength its of cent per 2.5 of market the EFG Hermes Holding: Hermes EFG

Alexandria and Cairo. Cairo. and Alexandria Center, Nile Badrawi and AL Shorouk. In In Shorouk. AL and Badrawi Nile Center, figure, its CEO told Reuters. Pharos is Pharos Reuters. told CEO its figure, erg news agency, also follows the biggest biggest the follows also agency, news erg first session after a hard week that stripped stripped that week hard a after session first

41Sherif St., Cairo, Egypt Cairo, St., 41Sherif

ages two city centers shopping malls in in malls shopping centers city two ages pitals including: Cleopatra, Cairo Medical Medical Cairo Cleopatra, including: pitals and is targeting this year to double that that double to year this targeting is and - Bloomb to according advance, equity the index traded up 3.7 percent. This was the the was This percent. 3.7 up traded index

Head office Head - man MAF supermarkets. owned state of - hos several in stakes majority has Abraaj tions, is now managing around LE800mn LE800mn around managing now is tions, In addition to the bout in oil markets, markets, oil in bout the to addition In pat on the back. EGX30, the market’s main main market’s the EGX30, back. the on pat

the ministry of supply to develop branches branches develop to supply of ministry the that it might monopolize the health sector. sector. health the monopolize might it that - opera bookkeeping and brokerage curities of the world’s proven reserves. proven world’s the of last week gave the market a much-needed much-needed a market the gave week last

Address end of 2019.The company also agreed with with agreed also company 2019.The of end tions that reached the parliament for fear fear for parliament the reached that tions - se management, asset equity, private with tions between them have about 30 percent percent 30 about have them between tions A recovery in oil prices at the end of of end the at prices oil in recovery A MEO - - MEO

Ahmed Saber Ahmed

From the trading floor trading the From

Layout

[email protected]

By Alaa Abdelwanis Alaa

Eiman Rashed Eiman

Yassin el Sahabi. They claim their their claim They Sahabi. el Yassin sumers with correct information information correct with sumers production date or expiry dates or or dates expiry or date production

Rania Imam Rania

and with the assistance of therapist, therapist, of assistance the with and - con the provide to advertiser the or method of manufacture or the the or manufacture of method or ing consumers. ing

Khaled Al Amin Al Khaled Abul-Yazid El Idrissi el Maghrebi, Maghrebi, el Idrissi El Abul-Yazid which committed the supplier and and supplier the committed which of quality, or source, weight, size, size, weight, source, or quality, of - reach before confiscated are that

spiritual treatment with therapist, therapist, with treatment spiritual Protection Act No. 67 of 2006 2006 of 67 No. Act Protection related to awards or certifications certifications or awards to related in addition to counterfeit products products counterfeit to addition in

Editors

roccan international centre of of centre international roccan violated Article 6 of the Consumer Consumer the of 6 Article violated key elements or characteristics, or or characteristics, or elements key verifying information in this regard regard this in information verifying

Yasmine Fouda Yasmine - Mo the being as 01156310079, nels referred to the prosecution had had prosecution the to referred nels pression of any of its components, components, its of any of pression some of the harmful products after after products harmful the of some

01096574103 - 01096579562- 01096579562- - 01096574103 - chan the that revealed Yaacoub - im wrong the create could which ucate and warn consumers against against consumers warn and ucate Consultant of ME Affairs ME of Consultant

ephone numbers to the customers customers the to numbers ephone and the audience. the and about the nature of the product product the of nature the about - ed to measures proactive pursuing

H.A.Raouf

- tel presents ad The Action. Time and misleading to the consumers consumers the to misleading and not be left with wrong information information wrong with left be not vention better than cure’, through through cure’, than better vention

Editor-in-chief Cinema, Time Ekhtarna Lak and and Lak Ekhtarna Time Cinema, sin el Sahabi which is deceptive deceptive is which Sahabi el sin tive way. The consumer should should consumer The way. tive - ‘pre of policy a adopting by safety

Cairo Drama, Time Taxi, Time Time Taxi, Time Drama, Cairo - Yas as Haroun, Attia Aatti Abdel - nega a or positive a in whether led may be harmful to the health and and health the to harmful be may

[email protected] channels, namely Time Comedy, Comedy, Time namely channels, photo of the complainant, Haroun Haroun complainant, the of photo - mis or up mixed be can who sumer practices particularly those that that those particularly practices

cast on the screens of six satellite satellite six of screens the on cast a suitor. The channels posted the the posted channels The suitor. a - con the on impression misleading sumer protection against harmful harmful against protection sumer

Mahmoud Fouda Mahmoud

- broad was advertisement leading and get the parental consent for for consent parental the get and could lead to creating a wrong or or wrong a creating to lead could - con to importance great gives cy

Publisher and Chairman and Publisher - mis a Agency, the with lodged ment, to bring back the beloved beloved the back bring to ment, its specifications, to avoid what what avoid to specifications, its - Agen the that stressed Yaacoub

He said that based on a complaint complaint a on based that said He - treat for witchcraft use to ability about the nature of the product and and product the of nature the about terms of use. of terms

East and Gulf Economic News Economic Gulf and East

within the framework of the Agency’s plan to protect consumers against against consumers protect to plan Agency’s the of framework the within taken against the violators. the against taken

Over 50 years covering Middle Middle covering years 50 Over Yaacob, the Chairman of the Consumer Protection Agency, said that that said Agency, Protection Consumer the of Chairman the Yaacob, hours through the Agency’s media observatory, and legal action was was action legal and observatory, media Agency’s the through hours

of misleading advertising, fraud on consumers. Major General Atef Atef General Major consumers. on fraud advertising, misleading of misleading and deceptive advertisements were monitored over 24 24 over monitored were advertisements deceptive and misleading

"An Egyptian Joint Stock Company" Stock Joint Egyptian "An Agency refers 6 TV channels to public prosecutor in 6 cases on charges charges on cases 6 in prosecutor public to channels TV 6 refers Agency g, such such g, advertisin misleading against fight the and markets the in fraud

Press of Council Supreme the

by Authorised

PA prosecutes 6 TV channels channels TV 6 prosecutes PA edition 4 - 2/2016 Issue year 63

th rd 1st edition 6165 issues issues 6165 edition 1st

̓ ̓ Fouda Ahmed by 1958 in Founded

money market. money - compa winning some of capital the increase to Ehab Saeed, the CEO of Osoul Company, Company, Osoul of CEO the Saeed, Ehab - of be to company or bank the of value fair the economic trends over the past years. past the over trends economic

it will offer in consultation with officials in the the in officials with consultation in offer will it these proposals depends on making the offering offering the making on depends proposals these ings without any control of them. of control any without ings accommodate any offerings, as investors fear that that fear investors as offerings, any accommodate confidence. He asserted that it is one of the best best the of one is it that asserted He confidence.

Bank of Egypt will announce the time of what what of time the announce will Egypt of Bank a platform for financing. However, the success of of success the However, financing. for platform a - hold its sells state the that is privatization while serted to the MEO that the market is currently not not currently is market the that MEO the to serted to deepen the market and restore the investors’ investors’ the restore and market the deepen to

suffers from poor liquidity. However, the Central Central the However, liquidity. poor from suffers could revive the role of the Egyptian Exchange as as Exchange Egyptian the of role the revive could ing companies and maintaining the ruling quotas, quotas, ruling the maintaining and companies ing - as expert, market money a Imam, Bakr Abu market, said that this approach helps significantly significantly helps approach this that said market,

place in the near future, especially that the market market the that especially future, near the in place and government companies on the money market market money the on companies government and - restructur at aims Exchange Egyptian the on ing he said. said. he markets recently and their impact on the local local the on impact their and recently markets

Observer, ruled out that the offering would take take would offering the that out ruled Observer, declaration of the presidency of offering shares shares offering of presidency the of declaration - Offer privatization. the and bourse the on fering it and giving directives on the need to support it, it, support to need the on directives giving and it affected the international and regional money money regional and international the affected

The sources in statements to the Middle East East Middle the to statements in sources The Wael Enaba, a money market expert, said the the said expert, market money a Enaba, Wael - of between difference a is there that said He bourse and his queries on the reasons that led to to led that reasons the on queries his and bourse ing to tackle the latest developments that have have that developments latest the tackle to ing

with the standards of governance. of standards the with gravely, the added. the gravely, the ruling quota of 51%. of quota ruling the the President himself in the sharp decline in the the in decline sharp the in himself President the - meet board Exchange Egyptian an During

the monetary policy and this also is not consistent consistent not is also this and policy monetary the ferings and the stock market has been suffering suffering been has market stock the and ferings but maintaining the state control on and owning owning and on control state the maintaining but because they felt for the first time the interest of of interest the time first the for felt they because step at this time. this at step

is not among its duties to own banks but to run run to but banks own to duties its among not is - of the stopped government the Since 2005. til Media Production City and the Telecom Egypt Egypt Telecom the and City Production Media owned companies during the coming phase, but but phase, coming the during companies owned through it. He stressed that it is an important important an is it that stressed He it. through

Bank of Egypt and is a burden on it. The CBE CBE The it. on burden a is and Egypt of Bank - un mid-nineties the in work to return its since of their shares were offered such as the Egyptian Egyptian the as such offered were shares their of eas o te noneet f feig state- offering of announcement the of because ey market and its role in obtaining funding funding obtaining in role its and market ey

especially that the bank is owned by the Central Central the by owned is bank the that especially have supported significantly its performance ever ever performance its significantly supported have or offering shares of some companies that some some that companies some of shares offering or strong state of relief and satisfaction, not only only not satisfaction, and relief of state strong - mon the of importance the understands it

offer a percentage of it in the Egyptian Exchange Exchange Egyptian the in it of percentage a offer the performance of the Egyptian Exchange. They They Exchange. Egyptian the of performance the ion Arab Company for Shipping and Unloading Unloading and Shipping for Company Arab ion The dealers received the statement with a a with statement the received dealers The strong message from the government that that government the from message strong

The United Bank may be the first candidate to to candidate first the be may Bank United The The government offerings are a key driver for for driver key a are offerings government The - Un the and Steel and Iron Egyptian the as such ing for eight years. eight for ing government on the Egyptian Exchange is a a is Exchange Egyptian the on government

sources revealed. sources and the offering of successful and profiting ones. profiting and successful of offering the and of financial restructuring to increase its capital, capital, its increase to restructuring financial of - miss been has which luster its restore to market ber of government companies and banks and and banks and companies government of ber

as the National Bank of Egypt and Banque Misr, Misr, Banque and Egypt of Bank National the as change, saying they are mainly the good timing timing good the mainly are they saying change, ing companies can be offered with the purpose purpose the with offered be can companies ing during the coming phase, will enhance the money money the enhance will phase, coming the during - num a offer to intention of announcement

which it has stakes except for large banks such such banks large for except stakes has it which - Ex Egyptian the in companies or banks ernment - falter some that MEO the to explained He government›s intention to offer some companies companies some offer to intention government›s Egyptian Exchange, said the government›s government›s the said Exchange, Egyptian

the privatization of shares of one or all banks in in banks all or one of shares of privatization the - gov of offering the of success of conditions the Egyptian Chemical Industries Company. Industries Chemical Egyptian on the bourse and the announcement of the the of announcement the and bourse the on Dr. Mohammed Omran, the head of the the of head the Omran, Mohammed Dr.

The government has begun studying studying begun has government The MEO - MEO For their part, money market experts defined defined experts market money part, their For nies or banks, such as the United Bank and the the and Bank United the as such banks, or nies said the statement issued by the presidency presidency the by issued statement the said fered will be overstated as being state-run. being as overstated be will fered

- Successful companies, suitable timing are conditions for success for conditions are timing suitable companies, Successful - - United Bank, 1st government bank to be listed in money market money in listed be to bank government 1st Bank, United -

Experts: Government offerings are Egyptian exchange main drivers main exchange Egyptian are offerings Government Experts:

By Mahmoud Hammad Mahmoud

- fac insulin first the MOU, this of virtue By cluding the Ministry, a Chinese glass fabrics fabrics glass Chinese a Ministry, the cluding countries that has developed its cotton and textile textile and cotton its developed has that countries projects in the fields of electricity, transport, transport, electricity, of fields the in projects

and investments in this field. field. this in investments and - in MOU; tripartite a signed Salman Egypt, to addition to exchanging expertise with several several with expertise exchanging to addition ship with the 2nd largest economy in the world. the in economy largest 2nd the with ship were signed to establish joint developmental developmental joint establish to signed were

establishing joint Chinese-Egyptian cooperation cooperation Chinese-Egyptian joint establishing On the sidelines of China President’s visit visit President’s China of sidelines the On and will compare them to the average levels; in in levels; average the to them compare will and - partner strategic a establish to efforts constant tions. During this visit, a number of MOUs MOUs of number a visit, this During tions.

raw biomaterials company for the purpose of of purpose the for company biomaterials raw advanced technologies in the world. world. the in technologies advanced amine the methods and capacity of production, production, of capacity and methods the amine glass fabric manufacturing fields are part of the the of part are fields manufacturing fabric glass - rela investing and economic the especially

harma and a Chinese insulin and pharmaceutical pharmaceutical and insulin Chinese a and harma to use in all manufacturing phases using the most most the using phases manufacturing all in use to - ex also will It assets. immovable and movable MOUs signed in the pharmaceutical, insulin, and and insulin, pharmaceutical, the in signed MOUs of boosting the Chinese-Egyptian relations; relations; Chinese-Egyptian the boosting of

- HoldiP between MOU an signed also Salman He stressed the need to develop this industry, and and industry, this develop to need the stressed He all of their machinery, equipment, facilities, and and facilities, equipment, machinery, their of all cooperation in other fields; pointing out that the the that out pointing fields; other in cooperation dent to Egypt, which is within the framework framework the within is which Egypt, to dent

opments in this industry. industry. this in opments intensive one, render it significant importance. importance. significant it render one, intensive studies; and a full assessment on its factories and and factories its on assessment full a and studies; of the Chinese investments in Egypt, and joint joint and Egypt, in investments Chinese the of - Presi China›s of visit the welcomed Salman

- devel international the with cope to products ing textile industry, in addition to its being a labour- a being its to addition in industry, textile out financial, technical, analytical, and marketing marketing and analytical, technical, financial, out Finally, Salman welcomed the enhancement enhancement the welcomed Salman Finally, investments. investments.

- develop and manufacturing, fabric glass of field tive potentials of Egypt concerning the cotton and and cotton the concerning Egypt of potentials tive machinery; pointing out that CTIHC is carrying carrying is CTIHC that out pointing machinery; relations between both countries. countries. both between relations maceutical projects with $100bn direct foreign foreign direct $100bn with projects maceutical

turer; in addition to transferring expertise in the the in expertise transferring to addition in turer; - competi great the that confirmed also Salman ries need a full restructuring due to their outdated outdated their to due restructuring full a need ries ties to invest in Egypt and boost the economic economic the boost and Egypt in invest to ties - phar strategic of number a of implementation

- manufac fabrics glass Chinese the of grammes transformational training programs. programs. training transformational - facto textile that speech a in declared Mustafa - opportuni available the know to get to market held with the Chinese insulin company on the the on company insulin Chinese the with held

- pro training and force, labour production, ing the technical skills of the labour force through through force labour the of skills technical the Dr Ahmed Mustafa. Mustafa. Ahmed Dr Chinese corporations interested in the Egyptian Egyptian the in interested corporations Chinese rials. Moreover, negotiations are being currently currently being are negotiations Moreover, rials.

- increas for provides MOU tripartite The and finally to provide suggestions for increasing increasing for suggestions provide to finally and studies, in the presence of Chairman of CTIHC CTIHC of Chairman of presence the in studies, was accompanied by a huge delegation of major major of delegation huge a by accompanied was - mate raw imported top and expensive most the

by 2017, and total investments of $520m. of investments total and 2017, by methods to attract clients and open new markets, markets, new open and clients attract to methods consulting services and technical and analytical analytical and technical and services consulting tification, and space science. China's President President China's science. space and tification, duce, in addition to insulin, another 30 types of of types 30 another insulin, to addition in duce,

production capacity of 220,000 tonnes per year year per tonnes 220,000 of capacity production ies on their marketing activities, offer modern modern offer activities, marketing their on ies CTIHC and the US Warner International Co., for for Co., International Warner US the and CTIHC - anti-deser infrastructure, training, E-education, - pro will which Egypt in established be will tory

strands-threads) on three phases to reach a total total a reach to phases three on strands-threads) - stud conduct plans, development set companies, nessed the signing of this agreement between between agreement this of signing the nessed

for producing all kinds of glass fabrics (woven- fabrics glass of kinds all producing for cotton to assess the state of CTIHC subsidiary subsidiary CTIHC of state the assess to cotton - wit Salman, Ashraf Investment, of Minister President Al-Sisi and Chinese president Xi Jinping sign vital agreements vital sign Jinping Xi president Chinese and Al-Sisi President

fabrics manufacturer in Egypt operates a factory factory a operates Egypt in manufacturer fabrics tional consulting offices specialized in textile and and textile in specialized offices consulting tional riod of 43 weeks only. weeks 43 of riod

tion capacity of 80,000 tonnes. The Chinese glass glass Chinese The tonnes. 80,000 of capacity tion - interna and national for issued was tender public - pe a for 2016, February early begin to due is 32,

- produc annual an and investments $188m with In the meantime, Salman announced that a a that announced Salman meantime, the In Industries Holding Company (CTIHC), out of of out (CTIHC), Company Holding Industries

(CDB), on the new expansions of the company company the of expansions new the on (CDB), cific schedule. schedule. cific subsidiary companies of the Cotton and Textiles Textiles and Cotton the of companies subsidiary

manufacturer, and the China Development Bank Bank Development China the and manufacturer, - spe a to according and days 301 within sector, Under this agreement, the development of 25 25 of development the agreement, this Under

my; and out of its keenness to support and boost national industries, industries, national boost and support to keenness its of out and my; government companies for spinning and weaving. weaving. and spinning for companies government

- econo national the to contribution their enhance and companies, istry signed an agreement on restructuring and developing some some developing and restructuring on agreement an signed istry

- Min the assets; its optimize and policy, expansionism its implement Under the endeavors of the Ministry of investment to develop public public develop to investment of Ministry the of endeavors the Under

pharmaceutical investments investments pharmaceutical $100bn and Egypt, in factory insulin first the of Establishment

Tripartite MOU on the new expansions with $188m investments investments $188m with expansions new the on MOU Tripartite

to develop 25 CTIHC subsidiary companies subsidiary CTIHC 25 develop to

agreements Egyptian - Chinese

2

H M 27 January 2016 January 27 ome EO www.meobserver.org www.meobserver.org 27 January 2016 MEO Home 3 Ministry of Supply strikes a deal to purchase 235,000 tonnes Suez Governorate and Tianjin of wheat from Russia, France and Romania. Wheat Province sign a Cooperation Protocol reserves will cover needs till early May 2016 Ministry of Supply and Internal Trade struck $230m dollar investments to develop a deal to purchase 235,000 tonnes of Russian, French and Romanian wheat, during an inter- 6km Northwest Suez Gulf national bid that was held where national and international companies presented offers of an av- Chinese TEDA Investment Holding Co. Ltd (TEDA Holding) announced the beginning of erage $189.17 per tonne; provided that the provision work on the $230m investments to develop and expand the 6km area in the industrial of wheat starts on 20 February 2016 and for a period zone in Northwest Suez Gulf. The announcement was in the presence of Suez Gov- of 10 days. ernor, Major General Helmy Al-Hayatmy, Chairman of the General Authority of the Economic Zone of Suez Canal, Nasser Fouad, the Industrial Develop- MEO - Minister of Sup- year 2005, the Codex international ment Authority Vice Chairman, Magdy Ghazy, Chairman of the Main ply Dr Khaled Hanafy con- standard specifications no.199 for development Company, Adel Ayoub, and Mayor of Ataka firmed that this deal is to secure the year 1995, and ISO 7970 inter- District, Gharib Gouda. the strategic reserves of wheat, national standard for the year 2000. MEO - Major General, establish a 16,000 square which will cover needs till early May He added that the Ministry purchases Al-Hayatmy, confirmed meter, 8 store facility to 2016; to provide wheat for subsidized wheat from several countries and not that TEDA Holding is a provide full services for bread for citizens through 26,000 bak- a specific one; like Russia, Romania, significant indicator of the investors in the fields of resen- eries across the country, and to pro- Canada, France, Argentina, the US, Chinese economic coop- administration, maritime tative of vide imported wheat needed by grind- Ukraine, among others. He stated that eration; as it invests its transport, customs clear- the Chinese be car- ers and private sector factories at all imported wheat are of the highest international expertise to ance, and marketing and ried out on lower prices so that citizens could buy quality and lowest price, adding that commercial 2 establish a comprehensive advertising. The facility attaché, and a 6km , and will their products at affordable prices. all shipments entering Egypt are in- touristic and industrial also includes three inter- number of inves- be developed Hanafy said that the General spected at freight ports by internation- complex under the coop- national banks, a hotel, a tors. within 6 phases with Authority for Supply Commodities al corporations, and further inspection eration protocol signed number of restaurants, a Aimin announced the a total of $230m, which (GASC) imports wheat through in- of the wheat is carried out by joint by Suez Governorate and gym, and an entertainment completion of the first is the cost of construc- ternational stock markets according government technical committees upon Tianjin Province to devel- zone. phase of the project on tions that aim at attracting to the Egyptian standard specifica- arrival at the Egyptian ports. op the 1.3 km2 area. It has This was announced an area of 1.3km2, stat- joint investments of $2bn to tions no. 1601 of the also managed to attract during the conference held ing that the year 2016 cooper- generate profits of $8 to more than 31 companies at the Swiss Hotel in the is a historical year for ation on 10bn and creating 40,000 and projects from major Sino-Egyptian Joint Indus- the Egyptian-Chinese Egypt’s soil, job opportunities. international corporations; trial Zone in the North- relations, as it will wit- and a symbol of develop- Finally, Aimin’ an- establish 25 plants for west Suez Gulf Economic ness the visit of China’s ment and joint coopera- nounced allocating 1 per small and medium-sized Zone, and attended by President to Egypt during tion between both coun- cent of the fanfare and industries in several fields TEDA Holding Chairman which the first phase of tries. hotel revenues to the with a total of $900m of BOD, Liu Aimin, along the expansion of Sino- During a press confer- “Magdy Yacoub Heart investments; and create with a delegation from Egyptian Joint Industrial ence in the Sino-Egyptian Foundation” as a social distinct job opportunities the company, the CEO Zone in the Northwest Joint Industrial Zone, contribution to Egyptians; for youth in Suez. of Chinese TEDA Group, Suez will be inaugurated. Aimin confirmed that in addition to L.E.200,000 He added that work is Wei Jianqing, general This project represents the the second phase of the for the treatment of chil- currently carried out to managers of TEDA, a rep- largest Egyptian-Chinese expansion project will dren with heart diseases.

First report by ILO on social

Financial markets analysts say that it responsibility of small and is the responsibility of the government medium enterprises (SMEs) to attract new cash to the Egyptian stock market (EGX) through enacting laws and regulations that encour- age flow of investments; urging the government to direct its interest to the financial market, especially after the sharp declines that hit it as a result of the slumps in world markets. Experts: Analysts confirm that the Initial Public Offering (IPO) for Saudi Aramco would only have a It the government's duty slight effect on MEO - Under the title “Proper Work and Social Responsibility of Corporates: Interactions with EGX due to the and Reflections on Sustainable Development”, current regula- the Federation of the Egyptian Industries (FEI) and the International Labour organization (ILO) tions of the held their second annual conference. to attract new cash to EGX The conference was attended by a set of Central Bank of ministers, and more than 700 representatives of Egypt (CBE) on Egyptian and international corporates who have foreign cur- achieved success in sustainable development, Calls on government to give due and have assumed an active role in the works rency transfers. of social responsibility in several Egyptian gov- ernorates. It was also attended by a number of academics and social organizations. consideration to the financial market During the Conference, the first edition of a book on the social responsibility of corporates was released under the title: “The Pioneering Ehab Rashad, CEO of Mubashir ing this tax to avoid another mar- On his part, Ehab Saeed, Board should give due consideration to occur through promoting it by Experiences of the Social Responsibility by the Trade, said that it is on the gov- ket crash, if it becomes stable in Member at Osool ESB Securities, EGX; especially after the bench- highly informative promoters; for Industrial Corporates in Egypt”. It is considered ernment to attract cash to the the coming period. confirmed what Rashad said con- mark index EGX30 witnessed last the market is now full of those the first book to relate the success stories of in- market which can be achieved He pointed out that among the cerning attracting cash to the mar- week its worst performance ever. who call themselves analysts, yet dustrial corporates in adopting and implementing through enacting laws that will means to attract cash is to launch ket. He pointed out that the weak It underwent its largest fall since some of them are not even quali- activities of developmental social responsibility attract investments, and facilitate a public offering of government performance of EGX, whether January 201, as it lost 13.7 per fied to discuss stock matters. The in Egypt. money transfers abroad; avail- companies in the stock; and as regarding liquidity shortages or cent of its value, after it dropped government should also clarify to The Conference aimed at highlighting the ability of dollars; and tax laws. long as the company enjoys a price drops, is to be blamed es- from 6922 points to 5857 points. individuals the true concept of in- social responsibility that lies upon corporates to He pointed out that the role of the strong financial performance and sentially on the government and In addition, the market lost vesting, so that they would have a enhance competitiveness among the economic BOD of EGX is to regulate the cap, then the offering will be suc- CBE›s policies; adding that the fi- L.E.45bn of its value. good knowledge of investments. entities; and the positive reflections of carrying out initiatives in terms of achieving social peace trading process in stock, and not cessful. nancial policies of the government The losses of EGX were fur- In a statement to MEO, Elfiky and justice, and developing human resources in to be involved in companies or of- He mentioned that the IPO for do not show any form of support ther deepened by the plunge in said that during times of crisis it order to boost recruitment and growth rates. ferings in the market. Saudi Aramco would only have a to the private sector, although the oil price, reaching its lowest level is best to invest through invest- Peter Van Goy, Cairo ILO Office Director, In a statement to The Middle slight effect on EGX because the stock, and brokerage companies in 12 years; the sharp declines in ment funds; except that Egypt, said that the end of this month will witness the East Observer (MEO), Rashad foreign investors in the Egyptian are part of the investment sector in global markets due to the escalat- contrary to developed econo- release of the first report in the Middle East on said that the decision by the gov- market have their money chan- the state. Therefore, as long as the ed fears of a slowdown in Chinese mies wants that type of culture. the performance of 100 SMEs that operate in ernment to suspend Capital Gains neled from abroad; and no money investing atmosphere is uninvit- manufacturing; and the recent de- It is because most individuals Egypt in the field of social responsibility. Tax (CGT) for 2 years is, so far, will flow from Egypt abroad to ing, the crisis of stock will persist cisions by CBE concerning bank- think of the stock as a "gam- He added, in a statement to Al-Shorouq news- vague; what will happen after take part in Aramco›s offering, and not even establishing closed- ing loans. bling casino" for constant and paper, during the 2nd Annual Conference on Social Responsibility, that ILO provides techni- these 2 years, will it be imposed especially under the regulations end funds or any other procedure For his part, Dr Amr Elfiky, immediate profits. cal support to several corporates in the Egyptian again or not? Therefore, there placed by CBE on foreign cur- will help fix it. expert on financial markets, said market through the FEI with the aim of creating must be a final decision concern- rency transfers. Saeed pointed out that officials that attracting cash to EGX will By Mahmoud Hammad a better environment for workers. Moreover, Goy considered that holding a conference, where Egyptian corporates get to present their experience in social responsibility toward their staff and the whole society, is an National Bank of Kuwait Egypt fined EGP 7.5m for banking error opportunity to spread this trend among the rest of Egyptian corporates, for them to work on MEO - The Cairo Economic Court seven million, four hundred ninety- the bank 179 checks worth EGP developing skills and capabilities of their staff. of Appeals, headed by Judge Gamal five thousand, four hundred andsixty- 21,104,208 and $ 102,000 with collec- He pointed out that the ILO is currently co- Mohammad Abdel Hakim and mem- eight pounds, and a yield of 5% per tion fees to be added to the company’s operating with about 100 corporates in the field bership of Counselors Mohammed annum as of 03/01/2016 and until full accounts. However, the bank did not of food and textile industries, providing them with the needed technical support to develop Taymour Taha and Shirin Farouk Ali settlement and the expenses of attor- collect 32 checks worth 7,495,486 de- the skills of their staff; adding that such fields Weshahi and Secretary Abdul Rah- neys’ fees. spite the bank’s commitment in this are given special concern since they are labour- man Mohammed, ruled in the appeal The company has resorted to the respect. Thus, the bank has commit- intensive and export their products. number 134 for Cairo economic ju- court based on contract of credit fa- ted a banking error that led to grave Finally, Goy said that the ILO will release, dicial year 1, filed by Khairat Engi- cilities reached between the company losses represented in the value of within 2 months, a report on labour force in neering and Trade Company against and the defendant to open accounts in these checks and the interests as well Egypt that includes data and statistics on job the National Bank of Kuwait Egypt, Egyptian pounds and dollars guaran- as material damage which inflicted the opportunities in each sector and the size of its Mohandessin Branch, compelling the teed by checks issued by the company company due to the unprecedented labour. defendant to pay EGP 7,495,468, only or its clients. The company handed banking error. www.meobserver.org 4 MENA Region 27 January 2016 $835bn is the cost of Arab'Spring'

Five years now since the Arab spring, it has become crystal clear that economies like Tunisia, Libya, Yemen, and Syria are facing grinding economic crises due to the volatile situations in them, leading, in turn, to a major budget deficit, high of Syria pricing of all commodities and services. Economies Last December, economic reports were released showing that the Arab Spring revo- lutions had cost these countries $835bn gen- Tunisia erating from damages in construction, tourism, stock markets, and investments; in addition to offering shelter to refugees. This proves how these countries are suffering economically after their Gross Domestic Product (GDP) growth and employment Yemen rates were negatively influenced by the Arab Spring.

The Middle East Observer has identi- which resulted in long suffering, fied the economic state in Syria, Libya, high unemployment rates, dys- Yemen, and Tunisia; following 5 years functional small and medium-sized Libya of the eruption of the Tunisia›s Jasmine investment entities…etc. All this led Revolution which was the spark of the to the deterioration of the economy rest of Arab spring revolutions. and the living standards of citizens. The macroeconomic indicators of Syria Syria have undergone an extraordinary CNBC, specialized in delivering eco- transformation as a result of this crisis nomic news, released a report on the whose dark shadows hung over the Syrian economic conditions now com- public budget and the macroeconomics of GDP during the first 11 since March 2015 as a result of paring it to the conditions before the in general; multiplying in turn the pres- months of 2015. the Yemeni war. anti-Bashar Al-Assad regime civil upris- sures on social security, and government ings erupted in June 2011. The report subsidy. The total losses incurred by the Yemen Libya showed that Syria, which was ranked in war. Syrian economy in the last 4 years due The war in Yemen has inflicted For over 5 years now, since the revolu- 2011 among the safest countries of the This to this crisis reached $200bn by the end have constantly retreated in the last pe- severe damages upon its econ- tion that overthrew President Muammar world, was progressing toward achiev- has, conse- of 2015; and the amount of poverty has riod to threatening levels; with a growth omy that is under the threat of Gaddafi, the volatile Libya has been ing a comprehensive development in all quently, resulted risen up to more than 80 per cent, ac- rate close to zero, and high levels of total collapse now; especially after facing a harsh economic crisis which its sectors; especially the economic one. cording to a report by the U.N. inflation, budget deficit, and unemploy- the production of oil and natural needinto intensive deteriorated living pushed care the prices very high. Yet, now after all that has happened; ment. According to Tunisia’s National gas has come to a halt; the destruc- standards; and an unprec- The Central Bank of Libya has the Syrian economy has collapsed, that Tunisia Institution of Statistics, unemployment tion of dozens of factories; depletion edented rise in the prices of oil, fuel, warned against a major financial crisis, it needs to be in the intensive care unit. Although the Tunisian revolution was rates have increased in the past 5 years of resources; and looting of funds, and and food and supply commodities. The if the halt of oil production contin- The Syrian economy has undergone successful, most economists in Tunisia from 13 per cent in 2011, to 15 per cent local and foreign reserves from the gov- current crisis has also drained the sav- ues. It also announced that the budget a stable real growth in the period from were pessimistic about what has become in Q3 2015. ernment ministries and institutions. All ings of Yemenis; increased poverty and deficit in 2014/2015 has reached 40bn 2006 to 2010 with a 5 per cent average of the economy, since the 2011 revolu- As for government debt, it was nearly this, has turned the country into a black unemployment rates; and pushed the dinars, and that the country needs to growth rate. But, it has faced, so far, tion that toppled its president, Zayn Al- 30.4 per cent to GDP in 2013; and then market, caused great damage to infra- economy to the brink of collapse due to export 1.4m barrels per day in order to harsh economic sanctions and blockade; Abidin, till the year 2015; amid macro in 2015 it rose up to 52.7 per cent, ac- structure, and cut off basic government restrictions on exports, investments, and be able to cover domestic consumption in addition to the rise in dollar price and micro economic regression. The cording to statistics conducted by Tuni- services; like electricity and fuel. trade, and the ban on foreign exchange. and wages estimated at 16bn dinars against the devaluation of the Syr- economy has retreated during the past 5 sia’s Ministry of Finance. Following the revolution that toppled The United Nations Development per year. Yet, Libya now exports only ian pound; and the increase in prices of years, as growth rates were lower than The Central Bank of Tunisia has Ali Abdallah Saleh’s regime; the Program (UNDP) has conducted an 300,000 barrels; after militants have commodities and material, due to their 1 per cent; and sometimes it has even also released numbers that show that Houthis took over the country expelling taken control now of most oil fields. shortage and even rareness sometimes. faced a deflationary crisis. economic assessment on 6 provinces in the trade deficit has amounted to 7.3 thousands of employees, and tens of On top of those commodities is fuel, The Tunisian economic indicators Yemen that showed that around 26 per per cent in 2011, and to 7.9 per cent thousands were displaced because of the cent of the corporates have shut down By Mahmoud Ali

Tunisia job protests echo spark King Salman and President Xi open petroleum research & study center for Arab uprising Saudi Gazette - Custodian of the “YASREF converts Arabian heavy crude of the board of directors of Saudi Aramco, Two Holy Mosques King Salman and oil into high-value products for interna- presented a memento to the visiting Chinese FT - The unrest in Kasserine, Chinese President Xi Jinping remotely tional markets. The facility, which embeds president. Amin H. Nasser, president and where a curfew was imposed inaugurated the Yanbu Aramco Sin- world-class technical standards, increases CEO of Saudi Aramco, said: “Energy is the on Tuesday, underlines how the opec Refining Company (YASREF) Saudi Aramco refining capacity and is an main pillar of Saudi Arabia’s economy and economic roots of the popu- located in Yanbu on Wednesday. The important step in our strategy to become the cornerstone of development and pros- the world’s leading integrated energy enter- perity of economies around the world. With lar discontent that sparked the King also inaugurated in Riyadh the prise. the increased complexity of global energy, Arab uprising have not been ad- King Abdullah Petroleum Studies and “Today’s inauguration and cooperation it is important to continuously expand the dressed. Research Center (KAPSARC), a non- agreement signing reflect shared confidence boundaries of knowledge through collabo- Reda Yahyaoui, a young Kas- profit economics and policy research in our long-term partnership with Sinopec ration and research. serine resident, was electrocuted institute dedicated to finding solutions and in the potential opportunities we can “Saudi Aramco is honored to have helped on Saturday after climbing a util- for the most effective and productive create together through deeper, long-term establish KAPSARC which is a state of ity pole and threatening suicide use of energy to enable economic and collaboration.” the art research center that brings together in protest at his exclusion from a social progress across the globe. The Dr. Wang Yupu, Sinopec chairman, said: the brightest people from Saudi Arabia and list of applicants for government King also inaugurated in Riyadh the “The inauguration of YASREF is a great around the world to tackle energy challenges. jobs — reminiscent of the events King Abdullah Petroleum Studies and achievement for Sinopec and Saudi Aramco. The Centre is characterized by its innovative in 2011 that set off the revolu- Research Center (KAPSARC), a non- As a result of our newly signed agreement, design that integrates the highest standards of Sinopec will further strengthen its relation- environmental conservation and Saudi Ara- tion. profit economics and policy research ship with Saudi Aramco through exploring mco will continue to support KAPSARC to Then, Mohamed Bouazizi, a institute dedicated to finding solutions new opportunities in the oil and gas sector. achieve its mission and goals.” young fruit seller, set himself on for the most effective and productive “Sinopec will leverage its strengths in re- Samer Al-Ashgar, president of KAP- fire after being humiliated by a use of energy to enable economic and finery and chemical technology to support SARC, said: “KAPSARC is all about im- policewoman, leading to furious social progress across the globe. Saudi royalty inspects new research center Saudi Arabia’s strategic decision to trans- proving the welfare of societies through a protests that quickly spread and form the oil industry from upstream focused better understanding of the value that energy developed into the revolution The Chinese president joined the King in Though formally inaugurated on “Framework Agreement for Strategic Co- to providing value across the entire supply provides. We aim to develop frameworks that overthrew Zein al-Abidine the inauguration ceremony of KAPSARC. Wednesday, YASREF which was estab- operation” to enhance the competitiveness chain.” Mohammad S. Alshammari, YAS- for sustainable, value-added energy produc- Ben Ali as Tunisia’s dictator and King Salman was seen briefing President Xi lished on Jan. 14, 2012, came on stream in of the crude oil supplied by Saudi Aramco REF president & CEO, said: “The official tion and consumption in Saudi Arabia and set off a chain reaction of Arab on KAPSARC and its vision. 2014 and shipped its first consignment of to Sinopec and to actively explore coopera- inauguration of YASREF marks a proud ac- around the world. Our mission proudly re- uprisings. complishment for YASREF, Saudi Aramco flects the late King Abdullah’s vision, as we The inauguration ceremony of YASREF, 300,000 barrels of clean diesel in January tion opportunities in key areas including oil The demonstrators in Kasser- which has a refining capacity of 400,000 2015. and gas services, refinery, chemicals, crude and Sinopec. YASREF is a global refinery seek to make Saudi Arabia a leading source barrels per day, took place in Riyadh in con- YASREF is a joint venture between Saudi oil supply, sales, petroleum services, petro- leader that is helping global customers to of energy insight in global discussions.” ine, who rallied through the night junction with President Xi Jinping’s official Aramco, which holds a 62.5 percent share, chemical services, technology development meet their energy demands.” In 2015, KAPSARC moved to its Riyadh despite the curfew, were reported visit to the Kingdom. and China Petroleum & Chemical Corpora- and promotion, and new energy. Sinopec is now Saudi Aramco’s larg- headquarters, constructed by Saudi Ara- to have burnt the local office of In a unique expression of solidarity and tion (“Sinopec”), which holds a 37.5 percent Amin H. Nasser, president and CEO of est crude oil trading partner and onshore mco and designed by renowned architect the ruling Nidaa Tunis party. mutual cooperation, a Chinese engineer at share. YASREF represents both companies’ Saudi Aramco, said: “YASREF is a win- drilling service provider. The newly signed Zaha Hadid. The Center now comprises a During Wednesday’s protest they YASREF welcomed King Salman in Arabic focus on driving downstream growth across win partnership with Sinopec and a key ele- agreement will enable the two companies to diverse team of over 15 nationalities. The chanted the slogan “work, free- while a Saudi engineer welcomed Presi- the entire hydrocarbon chain. ment of Saudi Aramco’s strategy of driving further enhance their relationship and joint- Center has established a global footprint of dom, dignity” to highlight their dent Xi in Chinese. Later the King and the On the sidelines of the inauguration cer- value across the hydrocarbons value-chain ly provide advanced, high quality products collaborative partnerships, including institu- demands. Chinese president jointly pressed a button emony, the YASREF joint venture partners to maintain our position as the world’s most and services along the hydrocarbon indus- tions from China, India, Japan, East Africa, marking the formal opening of the refinery. — Saudi Aramco and Sinopec — signed a reliable energy supplier. try chain. Later Khalid Al-Falih, chairman Europe and the Americas. AKP’s policies risk Turkey missing vital trade agreements Although the Turkish Parliament last week approved the 2014 Protocol amending the Marrakesh agreement NewsUnited - The agreement, which based on ideological motivations- from this agreement. Yet the manifestly share from the job creation of some 20 other similar measures on traffic in tran- established the World Trade Or- risks losing out on the opportuni- ill-advised policies that are being pur- million in the overall figure. The deal is sit” was suggested by Turkey and accept- ganization (WTO), paving the ties presented by this landmark deal. sued by the ruling Justice and Develop- designed especially for benefiting devel- ed. This provision strengthens Turkey›s way for more trade opportunities In December 2013 WTO members in Bali ment Party (AKP) government risk losing oping economies such as Turkey, consid- argument for abolishing quotas on certifi- for Turkey, the current practices of agreed on a deal that allowed for the ex- some of the opportunities presented by the ering the potential of the TFA to increase cates of transits for Turkish truckers that the Islamist-rooted pediting of the movement, speeding up agreement. economic growth by almost one percent are transporting goods in other countries. government the release and clearance of goods while The political tensions Turkey has with annually and exports by 3.5 percent be- Turkey has also contributed to draft- -that appar- facilitating better cooperation among cus- most of its 13 neighboring countries un- tween 2015 and 2030. ing Article 2 of the agreement, which ently opts toms and other relevant authorities to pro- dercut Turkey's initiatives, hurt its firms Turkey has worked hard on making the states, “traffic in transit shall not be con- for mote trade and cut costs. and create a blowback impact on eco- TFA deal and it would be a shame if all ditioned upon collections of any fees or poli- That deal, the Trade Facilitation Agree- nomic and trade relations. And especially that work was in vain because of the AKP charges imposed in respect of transit, cies ment (TFA), was turned into a legal text the current troubles with Russia and Iraq, government's mistakes. Ankara submitted except the charges for transportation or on Nov. 27, 2014 by WTO members. the two major trading partners of Turkey, 18 proposals and opinions leading up to those commensurate with administra- If implemented, the deal may help in- have really taken a toll on Turkey›s trade. the Bali conference of 2013. It especially tive expenses entailed by transit or with crease global merchandise exports by up Against this background, Turkey finds it- focused in on transit rules, trying to make the cost of services rendered.” This is to $1 trillion annually and reduce trade self in a difficult position to make the best it more free as Turkish truckers who trans- important because on many occasions costs by an average of 14.3 percent. It out of the new WTO deal. port goods are often challenged by quo- Turkish truckers have to pay high fees becomes effective once two-thirds of According to the projections of the tas, fees and inspections in other countries to purchase additional certificates of the 161 members in the WTO ratify the Turkish government, the WTO agreement while in transit. It held back Turkish ex- transit when they reach their limited agreement. The number of countries that may create an additional $20 billion from ports for years. For example, Article 3 in quota in Europe and other countries. have ratified the agreement so far is 66. export revenue and $40 billion from a rise the Freedom of Transit section of the deal Moreover, the TFA also allowed the Turkey, with its trade-dependent econ- in the Gross Domestic Product (GDP) in that states “members shall not seek, take WTO to, for the first time, regulate fines omy, can potentially benefit a great deal the Turkish economy, not to mention its or maintain any voluntary restraints or any and penalties for transiting truckers. www.meobserver.org 27 January 2016 MENA Region 5 Political conflicts, fall in oil prices, threat of terrorism a triangle of danger in Kurdistan

AtRisk the same time, reports and analysis TriangleThe Iraqi Kurdistan province 0recently witnesses a difficult depends upon a great deal as it is considered as one of the was unable to pay the province’s share of the confirm that the current crisis is a summer political situation that reflects negatively on the economy, most important economic resources. The province exports general budget. cloud and that the Kurdistan province is Therefore, some Kurdistan officials economically able to address them, espe- which was at its best from 2003 to 2014. However, last year oil to Turkey after the agreements Ankara signed with Iraq›s called for the Government of the Territory cially that it has numerous previous positive theree wer political and social crises that had a negative Kurdistan without the approval of the central government in to sell oil without the supervision of the cen- indicators that confirm this, such as its trade tral government. Deputy Prime Minister of relations with Arab and European countries, impact along with the drop in oil prices which the province Baghdad. Kurdistan Qubad Talabani said that Kurdis- as well as the increased production of oil tan is facing an economic tsunami economic on a regular basis. Amidst the negative and that may engulf because of the financial cri- government departments. borne by the citizens and the government positive indicators we will present the real- Kurdistan province representative in to $ 4.5 billion. But, Turkey remains the sis, stressing the sinking of Kurdistan in case of the province, mainly that the province’s ity of the province’s economy from all sides. Cairo Mullah Yassin Raouf said in exclu- most distinguished in terms of trade with The representative of Kurdistan province no first step was taken to tackle the crisis. Positive Aspects in Foreign Trade, In- sive statements that the province enjoys the province. It has announced the opening asserted that there is a profound difference economy depends only on oil. Kurdish ex- He explained that resuming pumping oil un- creasing Oil Production close trade relations with the EU and a of five new commercial crossings along the between the two parties who insist on their perts say that the province’s economy has der the supervision of the current Baghdad The province depends on oil and trade as group of Arab countries, especially Egypt. Iraqi-Turkish border, according to the agree- different positions in the province. The four become fragile, because it was not run on government will not lead to any change in according to economic estimates, it contains He stressed that reports were released by the ment announced by the President of the blocks that comprise the Islamic Union, the sound and strong bases. There was a large the situation.Also, the lack of development more than 45 billion barrels of oil and the Egyptian Commercial Representation body Kurdistan Government Nechirvan Barzani Patriotic Union of Kurdistan, the Movement waste of the budget through paying the sala- of the industrial sector has a negative impact rate of oil export from the province and the about the growth of trade relations between with Turkish Foreign Minister Ahmet Da- of Change and the Islamic Group insist that ries of employees. The government expen- on the economy. After the province has tak- city of Kirkuk reached its highest levels in Egypt and the province, he said, stressing vutoglu mid-March 2014 worth more than $ the election of the president be parliamen- ditures have become approximately equal to en its first steps in industry a few years ago, the past few months with a rate of 650,000 that in August an exhibition was held in the 6 billion, as more than 200 Turkish compa- tary president like the parliamentary states 75% of the budget. the Prime Minister made the statement that barrels of oil per day. The figure is likely to province to sell Egyptian exports. nies are operating in the province. and Iraq which they are part of. On the other In fact, the province’s economy is af- the Baghdad government is bankrupt and rise over the coming months. Trade is the Egyptian investments in the province fo- The increasing partisan conflicts in the hand, the Democratic Party of Kurdistan and fected positively and negatively by the Iraqi does not have a budget to pay Kurdistan’s second pillar as regards sources of income cus on three projects with a total investment region and the renewed crises between Er- its leader Massoud Barzani insist on electing economy where the region obtains a finan- share which leads to catastrophic effects on in the province which has close relations value of $ 847 million, while government bil and the central government in Baghdad the president by the people even though he cial share of the budget because the adop- the Kurdish economy. More than 200 com- with the Turkish side, with the volume of officials in the province confirmed on the have overshadowed the economic and ser- left office in August. He stressed that this tion of Iraq’s overall economy is limited to panies have closed down and left the prov- trade amounting to $ 6 billion. More than sidelines of the 2nd Iraq-UAE Forum and vice status in Kurdistan, which led the rul- conflict is detrimental to the economy. oil production. The rapid decline in oil prices ince. Tourism stopped completely after the 200 Turkish companies are operating in the Exhibition of trade and investment, which ing Patriotic Union of Kurdistan Party to In addition to the political crises that have reached 60% in six months and the terrorist expansion of terrorist organizations on the province as well as the agriculture and tour- was held in Erbil last year that the size of financial bankruptcy for failing to secure the largely affected the economic situation in operations by Daesh to and its control over border with the province, which threatens ism sectors. UAE investments in the province amounts monthly salaries of staff in institutions and the region, there were other reasons that are many areas in Iraq hit the Iraqi economy and tourists who were mostly Arabs. Prime Minister Haider al-Abadi says Iraq hopes to secure IMF loans Kuwait to cut Falling oil prices have left government desperate for outside help subsidies on fuel Iraq hopes to secure $6 billion to $7 billion in loans adi, who spoke Friday on the sidelines of the World from the International Monetary Fund, Prime Min- Economic Forum in Davos, Switzerland, said Iraqi water and electricity ister Haider al-Abadi said, as plummeting oil prices crude oil was selling for $22 a barrel Thursday, less have left the government desperate for outside help than half the rate of $45 a barrel on which Iraq’s 2016 to finance its costly war against Islamic State. Mr. Ab- budget is based.

WSJ - Iraq spends at least half of the cost of Mr. Abadi acknowledged that the worst drag each barrel on oil production, Mr. Abadi said. on Iraq’s budget remains its bloated bureau- “It’s impossible to run the country, to be hon- cracy. The prime minister said the government est with you, to sustain the military, to sustain needed less than a third of these workers, jobs, to sustain the economy,” Mr. Abadi said many of whom are known as “ghost workers” of the drop in oil revenue. “It hit us. In actual because they do little more than collect pay- fact we were expecting a bit of this. But it has checks, but firing them would hit us all of a sudden. The drop was drastic.” “increase instability” tanta- Christian Josz, IMF’s mission chief for Iraq, mount to starting “another told The Wall Street Journal the fund is “not war.” aware of a request for a financial arrangement.” Nevertheless, Mr. “We have not started negotiating a financial Abadi hopes to shrink arrangement. Once that request is made, we the bureaucracy by TradeArabia - Kuwait’s Emir, Sheikh will certainly consider it,” he said. Iraq is, some measure as Sabah Al-Ahmad Al-Sabah, confirmed however, already in a so-called Staff-Monitored Iraqi prime minister part of a wide-ranging that harsh economic conditions require Program that allows the fund to help Baghdad package of reforms he adopting new measures; and setting pro- craft a credible budget and economic policy back to $50 a barrel,” said the premier. “If it announced last year in re- grammes that contribute to rationaliza- framework with the aim of paving the way for continues as is, we’re in trouble. Could it go sponse to public protests over tion, and reduction of budget articles to IMF financing. That program, Mr. Josz said, down below $20? It couldn’t. Can it?” Mr. worsening government services. deal with shortages in the state financial will help “Iraq to build a track record to move Abadi laid out the government’s plan for meet- Mr. Abadi said he had already revenues. He announced that there is con- to a financial arrangement.” ing the deficit of more than $20 billion that is fired 123 high-level government of- sideration of cutting heavy subsidies on While the fall in oil prices has hurt resource- baked into the 2016 budget passed by Iraq’s ficials whom he accused of corruption fuel, water, and electricity. dependent economies around the world, Iraq parliament. The government hopes to receive and was prosecuting a former minister. In a statement to chief editors of na- faces the added threat of a protracted war the proceeds from a $7 billion IMF bond, draw But fighting corruption tional newspapers, Al-Sabah said that against Islamic State, the extremist group that down about $7 billion from the Iraqi central would take a long no country in the world offers fuel at bank’s currency reserves, and borrow another took over about a third of the country in 2014. time, he said. “In the price of 2 Kuwaiti fils, and that the $7 billion from Iraqi banks, he said. Even as he wages war against the group with- the past, corrup- Kuwaiti citizen should contribute to and The Iraqi government’s hopes for IMF assis- out the help of American ground troops, Mr. tion was from the shoulder some of the responsibility of tance could take some time. The international Abadi faces parallel assaults from internal crit- top to the bottom. the government budget; adding that he ics and a scourge of corruption that the prime lender has only committed to an informal Now it is unfor- program of monitoring the country’s finances ordered “a review of the budget of the minister said has come to afflict the entire tunate, corruption Amiri Diwan and its departments with a country. to find a way to get its budget in order. That is everywhere. It’s view to rationalizing and cutting spend- Baghdad backed away from a plan to float effort, set to continue through December, is a like it’s moving ing”, to encourage all other ministries to $2 billion in bonds last year after deciding precursor to any negotiations over an IMF loan. horizontally,” take the same step, with the necessity of that the returns demanded by investors were The program is designed to “establish a track he said. “I too high.In an interview, Mr. Abadi said he record of policy credibility to pave the way think for imposing censorship. He added that he is doubted that oil prices could drop as low as to a possible fund financing arrangement,” the many years against wasting money on overseas medi- $10 a barrel, which is below Iraq’s cost of IMF announced last week. no one has cal tourism; pointing out that the state production. Instead, the prime minister seemed But Mr. Abadi warned that strategy will be done anything was looking into plans to bring doctors to hold out hope that prices might rebound to workable only if oil prices settled back at $45 about it. Many have to Kuwait, and build the most significant near $50 later in the year. barrel. “That’s our original plan. That should accepted this as some- international hospitals, which is expected “From my discussions here, people who are be sufficient for us to sustain,” he said. “With thing normal. It’s be- to be carried out soon. in this business tend to think that it might be the current drop in price, we need more.” come a culture.”

The Iranian-Saudi crisis is a threat to the GCC-Iranian $30bn investments MEO - The Iranian Econ- and other GCC countries Bahrain cut its diplomatic overcome the subsequent ricultural products have the omy is currently stuck broke off their diplomatic relations with Tehran fol- problems it would face, largest share in the Iranian between two scenarios that ties with it, which in turn lowed by Kuwait, Sudan, such as, development slow- exports to GCC countries- have completely contra- poses a threat to the $30bn Djibouti, Somalia and then down, and devaluations of excluding oil. There are dicting results. While, the dollar Iranian-GCC invest- UAE who undermined its currency, especially that great potentials in this whole world is looking ments; including $2bn relations. the sanctions are still not region for investment and forward to the lifting of Saudi and $17bn Emirati Economists in Gulf fi- lifted. trade with Iran, since they the sanctions against Iran investments. nancial markets confirmed As the time of lifting are geographically close under the Nuclear deal that The reactions of Arab that such decision by Arab sanctions drew closer, the and the Arab Gulf links the was signed last year with countries supporting Saudi countries to break off ties Iranian-GCC investments region to the whole world, major countries; the Iranian Arabia escalated follow- with Iran, inflicts upon the were revived; except that so Iran seems to be the economy ran into another ing the attack on the Saudi Iranian economy major food commodities, textile, biggest loser in this diplo- Kerry speaks to GCC leaders of Iran nuclear deal obstacle when Saudi Arabia Embassy in Iran. First, damages, since it cannot handmade carpets and ag- matic crisis. www.meobserver.org 6 Europe & Americas 27 January 2016 Central Bank’s Mario Draghi hints at additional stimulus

Mario Draghi EuropeanMario Draghi, Chief of the European Central Bank (ECB), on Thurs- extent of recent market turmoil, as well as, by plummeting oil prices, day, signaled that the Governing Council may provide more stimulus which are a factor in the eurozone’s dangerously low inflation. at its next meeting in March, noting that the outlook for inflation had He said eurozone rates would “stay at present or lower levels for an weakened considerably. extended period” and there would be “no limits” to action to reflate The ECB left its key interest rates unchanged, even as low energy pric- the eurozone. es and concerns about China’s impact on the global economy threaten His comments followed the ECB’s regular meeting, where it kept the to derail the Central Bank’s efforts to bring inflation back to its target. Bank’s benchmark rate unchanged at 0.05 per cent. Draghi indicated that the Governing Council had been surprised by the The overnight deposit rate was also left unchanged at -0.3 per cent.

In December, the Central Bank said that average 1 per cent this year, rising fur- expected. The ECB will review policy it would extend its purchases of euro- ther in 2017. But Draghi said oil prices at its next meeting in March. There is a zone government bonds and other assets are now 40 per cent lower than when strong chance of more action, probably through March 2017. The asset purchas- those forecasts were made, and it is now extra quantitative easing, to stimulate es, at a rate of €60bn a month or about possible that broader consumer prices inflation a bit more (yes really).” $65.3bn, are a way of pumping money will start to fall again over the coming Draghi’s latest comments were seen into the financial system and trying to months. “We will review, and ,therefore as helping to calm stock markets, with stimulate inflation. possibly reconsider our monetary policy shares in Europe rising as his news con- Eurozone inflation is currently run- stance at our next meeting in March,” ference was under way. His comments ning at 0.2 per cent, way below the Draghi said. also weakened the euro, which briefly ECB’s target of near 2 per cent. Andrew walker, economics corre- fell below $1.08 against the dollar be- “We have the power, willingness and spondent of BBC News in Frankfurt said fore regaining ground. determination to act. There are no lim- that Draghi seemed relaxed and sure “ECB president Draghi once again saw its how far we are willing to deploy our of the policy they are willing to apply. the equity markets confirm his ‘super’ sta- policy instruments,” Draghi said. Furthermore his analyses “It’s not the tus as they jumped almost as soon as he Howard Archer, Chief UK and Euro- ECB’s job to stabilise stock markets. started his speech,” said Alastair McCaig, pean economist at IHS Global Insight The Bank’s job is to keep inflation in market analyst at IG, to BBC News. said, “the stimulus trigger looks cocked check, but it is currently too low: 0.2 per “The emphasis shifted from ‘what- and ready to pull as soon as the March cent compared with the ECB’s target of ever it takes’ to ‘no limits’ where action ECB meeting is held.” below, but close to, 2 per cent.” is concerned, with the small caveat that Speaking in a news conference, He continues,“The financial mar- nothing will happen until they have had Draghi said that the stimulus measures area’s resilience to recent, global eco- nual rate of inflation in 2016 is likely to The ECB’s economists had expected ket turbulence, especially the fall in their March meeting." undertaken by the Central Bank since nomic shocks”. But he added that fresh be drastically below forecasts released the inflation rate to pick up from the oil prices is one reason why inflation June 2014 had “strengthened the euro declines in oil prices suggest that the an-� last month. 0.2 per cent recorded in December and dynamics continue to be weaker than by Menna Abbas UK inflation rises unexpectedly MEO - There was a surprise rise in the UK’s with low oil prices and a fiercely competitive continues to fade and food inflation begins cent the previous month, prompting analysts inflation rate to 0.2 per cent in December environment for supermarkets keeping prices to strengthen, now that supermarkets have to suggest the upward trend could offer some 2015, the first month since January 2015 in down for consumers. passed on all of the fall in wholesale prices,» support to those hoping that the Bank of Eng- which the rate exceeded 0.1 per cent accord- The renewed slide this year in the oil price Samuel Tombs, chief UK economist at Pan- land would raise interest rates. ing to the Office for National Statistics (ONS). is shaking central bankers’ confidence that theon Macroeconomics said to IBM Times. “The Bank of England’s most recent min- Britain’s consumer price index (CPI) grew inflation will begin to edge higher once the “And while CPI inflation probably will take utes reiterate its expectation for inflation to by 0.1 per cent month-on-month in December, effects of failing crude wash out of official until May to reach 1%, this will not necessar- increase modestly in the coming months, while analysts had expected growth to remain statistics. However, for 2015 as a whole, con- ily preclude an interest rate rise in the second though they also note that continued weak- stagnant, as it had been in the previous month. sumer price inflation averaged 0 per cent, its quarter of this year.” ness in the oil price makes it likely this will Source: ONS lowest level since comparable records began Meanwhile, the core CPI, which strips out be more gradual than previously forecast,” Monthly inflation has been between -0.1 per in 1950«CPI inflation will continue to rise in volatile components such as food and energy, Ben Brettell, senior economist at Hargreaves cent and 0.1 per cent for the past 11 months, early 2016, as the drag from lower oil prices rose to 1.4 per cent in December from 1.2 per Lansdown said to IBM Times.

Latest News Stories on Europe and the Americas France declares State of Emergency MEO - France President, François Hollande, declares that start to a year in recent memory. Its own industrial production France is in a state of economic emergency amid fears that growth has slipped to zero per cent and customer confidence MEO - It has been a positive week for The information was revealed as Oracle the worsening financial situation in Germany could topple the has plunged in a catalogue of disasters for Chancellor Angela the global markets which rebounded was filing a lawsuit against Google. entire Eurozone. Merkel the most in more than three years after Indeed being the default search bar is "Due to the threat of terrorism in the past, we had to intro- According to Associated Press (AP), in his annual duce a state of emergency. But amid global chaos and an un- speech to business, Hollande announced plans for training the worst start to a year amid specula- a lot worthy yet, Google cannot stand certain economic environment, it’s appropriate to talk about a half a million jobless workers, greater use of apprentice- tions of stimulus measures. Oil was no losing millions of users every second. state of economic and social emergency. Employment is ships, and €2,000 aid for small businesses that hire young exception as it witnessed its best two However, Apple is already avoiding us- the most important question after the security of French workers. days in six years. However, some com- ing Google search: Siri uses Microsoft’s citizens," TASS quotes Hollande as saying. “New economic powers are rising, the digital economy panies have been struggling with other Bing as its default bar, and that cannot After several years of sluggish growth, the French is rapidly developing, we have to rethink our economic and pressing issues. Here are some of these be changed by users. economy took another blow with the jihadist attacks in social model," said Hollande. breaking news stories from Europe and Since it began, Google’s Android op- November that killed 130 people, which slowed activity An increasingly desperate Hollande has now said that he the Americas. erating system has yielded revenue of in the fourth quarter. will pay French employers to hire people in a bid to boost Investor sentiment plunged, as the socialist leader jobs as he sought to restore confidence and said that it was about $31bn and profit of $22b, com- Ukraine fines Gazprom $3.5bn announced unemployment in France has surged to time to address the country's "broken" economic model. Ukraine Competition Authority an- pared to Apple which yielded $32.2bn an 18 year high of 10.6 per cent or 3.57 million He announced a €2bn plan that will subsidise job creation nounced that it is going to fine Gazprom revenue from the iPhone in the fourth people in the eurozone's second-largest economy, in hope of temporarily moving 500,000 unemployed peo- $3.5bn since it abused its monopoly quarter of 2015 alone. and that this was the “only issue which ranks above ple from welfare rolls, “These two billion euros will not position in the country. Anti-monopoly Both Google and Apple were not security for the French people”. be financed through extra taxes of any kind. They will be This comes as Germany faces the most difficult financed by savings.” Committee Chair, Yury Terentyev, said pleased by disclosure of the figures as that the fine has to do with “the abuse this may affect similar negotiations. of the monopoly on the transit market Google has filed to have the court re- by Gazprom as a monopoly buyer”. The cords sealed. According to the com- fine comes after other disputes over gas pany, the revealed information should supply costs. have been highly confidential. The com- pany told the court that Oracle’s lawyer Russia seeks internal reforms to help its economy It is worth noting that Gazprom previ-� ously demanded that Ukraine pay a gas revealed “extremely sensitive informa- MEO - The Russian business com- lion’s share went to the US while, To illustrate the feeling preva- sition year from bad to good. bill of $2.6bn for import deals it refused tion”. “That non-public financial data is munity wants reforms from the foreign direct investment in Rus- lent among local businesses, Osetinskaya echoed the need to to implement. Gazprom claimed that highly sensitive, and public disclosure government, which the government sia fell by 92 per cent. This, cre- she quoted a businessman: improve the work of the courts, Ukraine is liable to pay for a minimum could have significant negative effects agrees upon. Russia has found itself ated huge opportunities to make “The dialogue between the govern- and stressed on the need for fewer in a declining economy and depreciat- changes in Russia, in how it at- ment and business reminds us of inspections of businesses. volume of gas, pursuant to the ‘take or on Google’s business.” ing rouble since the fall in the price tracts business and investment. the dialogue between the butcher Trutnev explained the reason for pay’ clause in its supply deal for Q3 de- Petrobras is to sell its of crude oil and the international Elizaveta Osetinskaya, editorial and the cow. He looks into the Russia’s focus on the Far East was spite the growing political tensions be- stake in Braskem SA sanctions imposed upon the country. director at RBC Media Holding, cow’s eyes, holding a knife and because over a third of its territory tween Ukraine and Russia. The recent Brazil’s Petroleo Brasileiro SA Petrobas Russian Deputy Prime Minister, Russia, who was present at the asks, ‘What are we having for is in the region. He said that Japan, bill follows the $29.2bn in disputed gas (PETR4.SA) is about to sell its stake in Yury Trutnev, listed a need for World Economic Forum in Davos, breakfast today — milk or beef?’” South Korea and China are the pri- contracts that is currently under interna- Braskem SA (BRKM5.SA), a Brazilian reforms, as the first opportunity presented a more dismal view, she Adding, nonetheless, that busi- mary investors in the region, with tional arbitration in Stockholm. Accord- petrochemical company, a Petrobras of- arising from the current bleak eco- said about the Russian business nesses felt that if the government India soon to join the list. ing to Gazprom, Ukraine has to pay its ficial said. The source confirmed that nomic scenario in his country, community: “No one really ex- did certain basic things correctly Many German companies had liabilities until 29 January. giant international chemical companies during a panel discussion at the pects anything good and in 2016, such as abolition of sanc- invested in Russia, and, therefore, Naftogaz, a Ukrainian gas transit are interested in Petrobras’ 36 per cent World Economic Forum in Davos, positive from tions through political settlement, would like to see a rapprochement company, has lately embarked on a radi- stake in Braskem’s total capital. Petro- Switzerland. 2016.” and decreasing taxes and duties, it between the EU and Russia. “We cal raise in the cost of transporting Rus- bras possesses 47 per cent of Braskem’s According to Trutnev, Russia could turn out want a stable, prosperous Russia” that had already made some progress to be a tran- could be a stable partner, he said. He sian gas through the Ukrainian pipes. common shares and 21.8 per cent of on the reforms front, which al- also expressed hope of finding a way Google paid $1bn to keep its Search its non-voting preferred stock. Those lowed the country to move, in to reestablish Russian membership in bar on iPhones shares were valued at $892m. 2015, to the 51st spot on the the G8, calling Russia’s removal from Court proceedings revealed that Google Petrobras officials said previously that list of countries ranked by ease the group bad diplomacy. paid its rival tech giant $1bn in 2014 to they are going to speed up a programme of doing business, up from the At the end of the discussion, after keep its search engine on iPhones and to sell $15.1bn of assets by the end of 92ndplace a year ago. While ad- answering a question posed by an iPads and that its revenue from Android the year in order to finance expansion mitting that depreciation of the audience member, Trutnev reiter- is $31bn. Moreover, Apple and Google projects and settle Petrobras’ $130bn currency was not good for the ated the need for reforms. “It is the shared the revenue Google received debt, the highest of all oil companies. population, he said it was good responsibility of the government from showing adverts to iOS users. Ora- The source also said that the recent for attracting investments. to conduct the reforms quickly” to cle said that “at one point in time” the agreement with Braskem has fueled the According to global investment “diversify the Russian economy and share was 34 per cent, but there are no company’s stock recover from recent figures of the $1 trillion in invest- to replace the diminishing income further details about who got that share. declines. ments worldwide last year, the from oil prices,” he said. www.meobserver.org 27 January 2016 Asia & Africa 7

Since its establishment, BRICS proved to be a strong economic group that A brief on the latest news from Asia Pacific took the world by storm. It assured being a stellar competitor A more turbulent - Optimism on China’s Economy at Davos of huge countries - Bank of Japan denies any limitation to monetary stimulus such as, G7. - South Korea is announced the most innovated economy period in store MEO - From Hong Kong and Beijing to Tokyo and Sydney, Asian stock mar- kets rallied the most in four months; amid mounting speculations that central banks will interfere with stimulus measures after a rebound in US shares and oil. “There’s a little bit of light at the end of the tunnel. We’ve probably seen the worst and by the end of the year things will be a lot brighter than they are now,” said Shane Oliver, head of investment strategy in Sydney. On top of this, it seems that Asia has been overwhelmed by a “we can do it” attitude. Let us have a look at some of the latest news from Asia Pacific.

Optimism on China’s Econ- There are speculations that the BOJ omy looms at Davos may expand stimulus very soon, as At the World Economic Forum in the effect of slumping oil prices will Since its establishment, BRICS an American world system country has a commodity, export facing BRICS is debt, the com- its problems,” said Dr Ahmed Davos, chief executives and inves- likely drive it to cut its inflation pro- proved to be a strong economic analyst. dependent economy, with oil modity crisis led to a borrowing Abdel Hafiz, head of Economics tors were pretty optimistic about the jection for the next fiscal year below group that took the world by ”They concentrated in the and gas exports shaping 68 per spree from other countries. Department at 6th of October Chinese economy stating that it was 1 per cent. When asked whether addi- storm. It assured being a stellar 2010’s on enjoying the fruits of a cent of its foreign trade. In Brazil for instance, the gov- University. heading for a soft rather than a hard tional monetary easing was necessary competitor of huge countries high level of commodity prices, Russia was hit hard by the ernment is not only unable to pay India- a bird warbling landing. The optimists referred to at this stage, Kuroda said: “We’re such as, G7. which allowed the governments plummeting oil prices, hovering for the debt, it cannot even repay outside the swarm: the climate deal, reached in Paris in looking at various data ... and analys- However, the BRICS is now of BRICS’ countries to augment at around $30 per barrel, and the interest rate itself. (Debt ac- The state is much different for December, which suggests that poli- ing them. I can’t say anything more, facing an acrimonious ordeal, significantly the income levels of expected to hit $20 per barrel counted for 70 per cent of Brazil’s the Indian economy, which is cymakers can work at a global level such as whether we would do any- with no forecasts of rebounding their upper and middle strata, and in 2016, as of Goldman Sachs’ GDP last year. expected to grow further by a when they decide to. thing (this week) or not.” within the short term. even to increase some benefits to forecast. For the giant China, it is rate of 7.8 per cent by 2018, A great deal of the bright views South Korea is announced the The term BRIC was coined the lower strata,” Wallerstin said The country loses about $2bn even worse, with the debt according to World Bank 2016 by former Goldman Sachs in a commentary on his website. in revenue for every dollar that amounting to 250 per cent of come from those who have lived or most innovative economy economic prospects report. worked in China. Melissa Ma, the According to Bloomberg, South Ko- economist Jim O’Neill in 2001, The commodity curse: the price of oil falls, according its GDP, which is such a high After the Indian govern- who said that BRIC’s assets to Catch News Indian website. amount that previously led to founder of Asia Alternatives, says, rea ranks first in its Global Innovation As of Wall Street Journal re- ment’s bid to follow up on a “In Davos, there is a gap between per- were growing extensively that port, China was growing at an The European sanctions on economic crises in countries revised way of calculating the Index, up from the second position ception and reality. If you’re on the they were going to surpass those average rate of more than 10 Russia add to the toll of burdens such as, Japan and Spain, ac- GDP (Gross Domestic Prod- last year. The top five in the ranking of the G7 countries. per cent a year, reaching over on the Russian Economy. cording to Catch News website. uct), it was able to overtake ground in China, you’re not worried.” are South Korea, Germany, Sweden, The grouping was originally 14 per cent in 2007. India av- There is not much change in This state does not change larger economies such as, Some of the optimists have advocated Japan and Switzerland. The ranking known as “BRIC”, before the eraged 8 per cent; Russia 5 per the Brazilian State, where the much for both Russia and South China, which was surprising to China’s potential for growth as West- relies on some factors including pro- inclusion of South Africa in cent; and Brazil and South Af- economy is expected to shrink Africa, which are already suffer- many experts, as of Wall Street ern participants expressed fears and ductivity, research and development 2010 that joined Brazil, Russia, rica around 4 per cent. On the from 2.5 to 3 per cent in 2016, ing too. Journal. doubts. Neil Shen, one of China’s spending, high-tech density, manu- India, China, forming BRICS, other hand, the G7 economies after the extremely low global Political instability and tur- However, the nominal GDP most successful entrepreneurs, dis- facturing capacity and patent activity. which are all industrialized demand on its commodities, es- moil shape another big provoca- expanded at a rate of less than of China is 5.06 times that cussed the breakthrough of China’s South Korea held top spots world- countries. pecially Soy and Ore. tion for the group. 1.4 per cent over the same of India, and in purchasing industry as Chinese companies were wide for manufacturing as well as for Despite being developing time frame. While in the sagging South In Brazil, a big corruption power-parity terms, India’s per already competing strongly in indus- countries, BRICS’ members are Africa, the rand pared loss scandal took place, leading to tertiary efficiency - a measure that China was the driving force capita income in 2014 was the tries like smartphone manufacturing. takes into account enrollment in high- distinguished by possessing over and the behemoth of the whole against dollar last year of 25 a vulnerable and shaky politi- lowest among the BRICS na- However, concerns about the Chi- er education and the concentration of 40 per cent of the world’s popu- group. It rolled its sleeves up per cent due to the vanishing cal state. tions at $5.85, the Indian econ- lation by 3 billionn people. They demand on its gold and silver The Chinese government has nese slowdown dominated high-level science and engineering graduates. to create an enormous global omy is a booming economy discussions, both during public de- also account for around 20 per demand for all inputs of vari- exports. Mining accounts for 50 also been trying for more than in the next decade, as of the Dominating the top position is natu- bates and private meetings. George cent of the globe’s GDP (Gross ous sorts. per cent of the country’s foreign 3 years to cut on corruption, World Bank report. rally expected for a country that dedi- Domestic Product), and an es- In August 2015, China’s exchange earnings. which net high profile victims. Soros, a financier, said that a “hard cates its financial resources towards timated $4 trillion in combined stock market bared loss of more Dr. Wael Nahas, an economic As for Russia, Validimir Putin Finally, in spite of the political landing is practically unavoidable,” developing new technologies and foreign reserves. than $5 trillion after the devalu- expert, told the Middle East Ob- has great problems on both the and economic turmoil facing adding that China is the root of the generates a fair number of the world’s Since its beginning in 2009, ation of the Yuan in a move to server (MEO) that BRICS are European and American side, most of the BRICS members, current financial crisis. engineers. the group decided to transform remain at par with market ex- considered an economic bubble, especially after Russia’s military and the fall of their contribution Bank of Japan denies any limita- Fresh ideas are valued in South their economic strength to which means that they have intervention in both Syria, and changes, especially amidst the to global growth from nearly 50 tion to monetary stimulus Korea and employees are willing to geo- political through several gradual rise of interest rates by unreal economies, based on Ukraine. per cent to only 36 per cent, the steps, starting by introducing a breaching world market’s laws. In South Africa, The African In a panel session at the World Eco- benefit their workplace unlike many the US Federal Reserve (raised group is deemed to strongly face nomic Forum in Davos, Haruhiko people in other countries. “If you’re new southern currency reserve “One of the world’s main prob- National Congress (ANC) is the high headwinds. by 0.25 per cent last month). Kuroda, Bank of Japan (BOJ) Gov- a scientist or engineer at Samsung replacing the dollar, as well as, The world’s second largest lems is the technological devel- finally receding, and it is threat- “I do not expect BRICS to Electronics, and you come up with creating a south-based develop- economy is currently ailing with opment, for instance, nowadays ened by an anti-White upsurge dismantle, however, it will be ernor said there was no limitation to ment bank to substitute both the an expected 6.3 per cent GDP there is an influx of television among younger voters. vulnerable to more economic the BOJ’s policy tools if it were to ex- some brilliant new idea, you don’t World Bank and the IMF (Inter- growth, according to the IMF production, despite the fading de- “BRICS group is expected fallbacks this year, it may get pand monetary stimulus. Kuroda said, quit and start pitching your ideas to national Monetary Fund). 2016 economic outlook. mand on this commodity, which to more political coalition and better in 2017,” Abdel Hafiz “I don’t think there is any technical venture capitalists and set up your However, this association Alongside, Russia is expected leads to the commodity crisis,” opening up of new markets such declared to MEO. limitation to further strengthen our own firm - you go to management did not manage to implement to grow by a meagre 1.5 to 2 Nahas added. as, in Egypt, in order to enrich quantitative and qualitative easing within Samsung,” said Marcus No- all of these proposals, accord- per cent amidst a strong de- Debt and other challenges: trade exchange. This is the main (program) if necessary to achieve our land, director of studies at Peterson ing to Immanuel Wallerstin, preciation of the rouble. The Another tremendous challenge route it will resort to overcome By Doaa Hussein 2 per cent target.” Institute for International Economics. How were African issues represented in Davos? Iran and China: The World Economic Forum offers a great opportunity for many nations and global leaders around the world to deliberate on challenges they face and discuss several daunting issues. Africa, in particular, has long attracted glob- A new chapter of ties after lifting sanctions al investors who regarded it as a promising land for business activities espe- cially with its high growth rates and rich resources. However, it appears that MEO - The Chinese leader Xi Jinping arrived ear- China is deemed to be Iran’s biggest partner. The interest for Africa has shifted this year in Davos. Mostly, African delegations lier on Saturday in Tehran, where a joint meeting world second largest economy continued on buying have been struggling to maintain global interest in African issues. Here are was held with his counterpart Hassan Rouhani. oil from Iran even after the tightened sanctions in is a brief look on some of the African issues and how they were represented The two leaders agreed on increasing the bilat- 2012, in spite of US pressure. in the icy Swiss Alps. eral trade to $600bn over the next decade. Trade exchange between the two countries re- Rouhani and Xi The Chinese president is deemed to be the first corded $2bn in 2014, which dropped later amidst came within his three nation tour, on which he ar- world leader to visit Iran in 14 years, after easing the the global slump in oil prices. rived also at Egypt, and Saudi Arabia. Security Issues Oscar Onyema, head of the Nige- western sanctions earlier this month, with the UN an- Later on Saturday, Iran’s supreme leader, Ayotal- The Chinese-Egyptian officials signed, last week, Africa is faced by many difficul- rian Stock Exchange, said that Africa nouncement of curbing Iran’s nuclear program. lah Ali Khameni met president Jinping in Tehran. ties including terrorist acts, political should not be considered as a conti- Iranian President Rouhani said he and Mr Xi had The most powerful figure in Iran said that his 21 accords that span various development and conflicts, civil wars and slow growth; nent of conflict again. “Most of the signed a “comprehensive 25-year document” on country wants to expand ties with “more independ- infrastructure investments, which include a $1bn coupled with falling oil and commod- challenges that we are facing are quite strategic relations, according to BBC. ent countries” like China, adding that the Unite loan for Egypt’s Central Bank (ECB), and another ity prices and slowdown of China. isolated.” Officials of the two countries signed 17 agree- States “was not honest” in the fight against terror- $700m given to the state-owned National Bank of Terrorist groups such as Boko Haram Low oil and Commodity Prices and ments to boost cooperation in energy, transporta- ism in the region. Egypt (NBE). have weighed on several African na- Currency Volatility tion, industry, railways, ports, new technology, Both leaders stressed on the salience of Iran’s Dr. Ahmed Abdel Hafez, head of the econom- tions making it harder for countries Among the topics discussed in the tourism, and environment. energy exports to China. “Iran is the most reli- ics department at 6th of October University, de- like Nigeria to attract investors. Simi- forum was the collapse of commod- “In cooperation with the Iranian side and by ben- able country in the region for energy since its en- clared to the Middle East Observer ‘MEO’ that lar security issues challenge the Cen- ity and oil prices as well as currency efiting from the current favourable conditions, China ergy policies will never be affected by foreigners,” the Chinese leader world tour came within China’s tral African Republic, South Sudan, volatility since they have heavily eaten is ready to upgrade the level of bilateral relations Khamenei was quoted by his official website as attempts to carve out new markets for its goods Mali and Kenya. Other countries in into Africa’s revenues and incomes and cooperation so that a new chapter will start in saying at a meeting with Xi, according to Reuters. amidst the current economic ordeal facing its mar- Western Africa are struggling to con- and impacted its investors as well. bilateral relations,” Xi said as of Iranian state TV. It is noteworthy that Chinese leader visit to Iran ket, which led to severe devaluation of Yuan. tain the outbreak of Ebola virus. For example, Africa’s wealthiest man, Though, Jacob Zuma, the South the Nigerian billionaire, Aliko Dan- African President, has tried hard to gote, was attending Davos 17 per cent convince the world that Africa is “poorer” as his net worth has dropped still a safe place for business and to $17bn. Another, most African cur- Oil crisis looms once again over South Sudan that Africa is “relatively stable”. rencies have depreciated, for instance, Zuma said, “We believe that over the rand has hit new record lows; with Once again, Sudan and South oil at loss.” oil producer in 2013. the years, we have reduced the areas the currency plunging as much as 35 Sudan find themselves at logger- On Friday, however, Su- The loss of the oil fields had of conflict in the continent. It’s un- per cent over the last year. heads over their shared oil pipe- dan’s official SUNA news grave consequences for Sudan, like what it was before.” line, the primary point of coopera- agency reported that President who looked forward to being Trade Barriers tion in their Comprehensive Peace Al-Bashir had agreed to the compensated $3bn in direct fi- “There are issues that have arisen Zuma said African nations need to Agreement signed after South Su- revision of interim economic nancial assistance in addition to, since the fall of Moammar Gadhafi dan’s breakaway in 2011. measures with South Sudan charging for the usage of its re- in particular, because that tended to focus on enhancing their infrastructure and attracting private investors. Re- Earlier this week, Juba de- after Benjamin’s visit. sources for oil production. undermine the security in the northern clared that it could be forced to Still, Khartoum’s government Meanwhile the fledgling nation part of Africa. Boko Haram is part of ducing trade barriers among African shut down its oil fields and pipe- is reportedly taking technical is landlocked and remains heav- what happened there,” Zuma added. nations is among the pressing chal- line, should Sudan continue to measures to prepare itself for a ily reliant on Sudan’s existing The South African President also lenges. “If we don’t have intra-African charge them highly for the cost of possible oil shutdown from Juba, oil pipelines and Red Sea port to Al-Bashir Salva Kiir confirmed that the African Union was trade, if we don’t soften our borders, transportation per barrel. and, with the lingering uncertainty make use of its valuable resource. doing its best to solve these problems. if we don’t increase the economy South Sudan’s Prime Minis- facing South Sudan’s oil produc- According to the World Bank, most of the continent’s crude oil among ourselves, we are not going to ter, Barnaba Benjamin, told the tion, Sudan may find itself seek- Consequences for Juba “South Sudan is the most oil- as Libyan and Sudanese exports Rwanda’s President, Paul Kagame, and Khartoum succeed,” Zuma said. Sudan Sun that he requested the ing alternate sources of revenue. dependent country in the world, continue to deteriorate. agreed: “We have to get together, col- reduction of oil transit fees in While the leaders of both nations with oil accounting for almost the According to CNN, six out of laborate, and make sure that we sort Lack of Skilled labour tandem with the fall in oil prices Mounting Expenses and continue to look for mutually totality of exports, and around 60 the top ten global gas discoveries Fragile Economies out most of these problems.” Kagame In addition, Sunil Bharti Mittal, chair- worldwide. satisfactory solutions, the fluctua- per cent of its GDP.” in 2013 were made in Africa. said, “The problems are there, but According to the Sudan Trib- South Sudan gained its independ- tion of oil markets and the deteri- Just this past year, Italian firm man of Bharti Enterprises, an Indian Oil-rich Africa and the Con- they should not derail Africa’s journey une, Benjamin told reporters: ence in 2011, laying claim to orating political situation in Juba Eni made a multi-billion dollar conglomerate that operates widely “the reality of the fact is that the most of the formerly unified na- poses a difficult challenge. strains of Mass Production discovery of a ‘supergiant’ gas re- to development and stability.” in African telecommunications and John Coumantaros, group managing production of the oil is down. We tion’s oil fields. Khartoum has already started Africa has been a rising competi- serve off the coast of Egypt. manufacturing, admitted that he felt In 2014, the US Energy Infor- searching for technical solutions tor for the production of crude oil director of Flour Mills of Nigeria, a are producing about 165,000 bar- But with competition on the very welcome as an investor. Yet, he rels a day and on top of that there mation Administration reported for the oil crisis, but will also and natural gas. international stage and fluctua- major investor in Nigerian agribusi- was hindered by the lack of skilled la- is drop in the oil prices.” that prior to the split, Sudan ranked need to find alternative energy In 2013, Price, Waterhouse, & tions in the production of coun- ness, admits that he had to halt some bour there. “Skills are not available in The Sudan Tribune also re- second only to Libya as Africa’s sources and ways to compensate Cooper reported that Africa holds tries like the United States, Saudi of his businesses in northern Nigeria Africa. And if they are available, they ported that South Sudan’s Min- largest oil producer outside of the for the pending aid from South eight per cent of the world’s oil - with Arabia, Russia and Iraq – oil due to security issues. “Life in the are so expensive. People in Africa istry of Petroleum and Mining Organization of Petroleum Export- Sudan. the largest share of those reserves prices are unlikely to recover ing Countries (OPEC). Juba, on the other hand, must located in Libya, a country that has north-east is under siege,” Coumanta- who have the necessary skills want sent a memo to its counterpart in shortly. Sudan that said: “We are left with The same report outlines that navigate a passage through its in- been rife with political struggles The price for Brent crude cur- ros said. “But we are not stopping our European or American salaries.” investments anywhere else in Nigeria. no option at the moment rather after the split, Sudan and South creasingly unstable situation as it since the 2011 Arab Spring. rently rests at approximately $32. We are moving full force forward.” By Amal Mohy than to shut it down because it’s Sudan’s production ranked as the continues to spiral out of control Countries like Angola, Alge- not feasible. We cannot sell the fourth largest non-OPEC African into civil war. ria, and Nigeria have produced By Nadine Awadallah www.meobserver.org 8 Tourism 27 January 2016 The Interrelationship between Psychology and Economy

With regards to the pioneer- petition against multinational ing Indian experience in terms firms in the same field, after of pharmaceutical industries; it became one of the top 30 I would like to shed light on pharmaceutical manufacturers some of the historical eco- and exporters in the world. nomic principles like Neo- Through its knowledge and de- liberalism, or the economic termination, India managed to classical liberalism. There is an establish manufacturing units in economic package that services the heart of the US and Europe interests, privileges, and power; which are considered the larg- Luxor temple hosts especially in the countries est entities in the field. of the third world. And with In 1995, after a meeting these imaginary privileges that by the General Assembly of have turned into a reality, we WHO; India decided that in a memorable Egyptian can clearly see how science is order for it to cover the health used to deceive people. Con- care needs of its citizens, it has querors have always sought to adopt a standard pharma- Chinese cultural festival after - with their eyes set on ceutical policy. Consequently, the biggest award; namely the it established “Hathi Commit- Middle east- dominating these tee”, and a list of 119 of the MEO - Chinese President Xi tually part of the comprehen- countries culturally, economi- most needed medications in the Jinping joined his counter- sive strategic partnership that Exhibition of latest antiquities returned cally…etc. Amid fears, terror, country, followed by an order part, Egyptian President Ab- the two countries are starting and worries; the positive psy- to produce them all. After a del-Fattah El Sisi, on January to build.” stated the cultural chology emerges to direct these while, it nationalized foreign 21th to attend the Egyptian representative of the Chinese to the country after having been illegally smuggled out suppressed energies towards corporations to undermine the Chinese festival held to cel- embassy in Egypt. work. India has counted in its foreign ownership of stocks; ebrate the Chinese Egyptian The red Chinese lanterns AP - An exhibition of the latest collection of antiq- It is to be noted that thousands of artifacts were biotechnology and pharmaceu- and monitored the prices of cultural year and the 60th lighted up the ancient walls uities that have been returned to the country was looted from Egyptian museums and heritage sites tical industries on public funds; medications. Of course, such anniversary of diplomatic of the temple, while the sound held in Cairo after they were illegally smuggled during two revolts in 2011 and 2013 that toppled bearing in mind that the profits efforts were always and still relations between the two na- of musical instruments ech- out. presidents Hosni Mubarak and Mohamed Morsi. of pharmaceuticals are tremen- faced with attempts from dif- tions. The festival was hosted oed and revived the whole The exhibition, held at Cairo’s famed Egyptian dous, while those of biotech- ferent companies in the world Museum, has on display 198 artifacts from a total at Luxor temple. city, making an exotic cultural nology are expected to jump. to terrorise and hinder India; of about 500 pieces repatriated to Egypt in 2014 Major preparations were ac- merge between the two old It has also counted on the same yet, they always end up to be a and 2015. The artifacts include 90 pieces from source in all its agricultural and total failure. complished to make the 3,500 civilizations. The festival pre- France, 55 from Germany and 35 from the United years old temple glow and sented Chinese and Egyptian service projects. This is a clear example of a States. Thus, if you want the suppressed energy turning into ready to host the festival held stage performance. More than Among the pieces that went on display on Thurs- economy to prosper, open up a success. by the world’s two most an- 200 elite performers and best day, are an ancient Egyptian tablet and a sarcopha- new markets with government cient civilizations. dancers contributed from the gus, Roman-era coins and part of an ornate Islamic support. That is what India has Now, the question is; are we “The Chinese Egyptian fes- two countries. It is worthy to pulpit dating back to the 15th century. done whose pharmaceutical missing the minds, skills, or tival is just a start for more note that it is the second time The first such exhibit was held in 2010, part of industry underwent a transfor- knowledge to enable us to take cultural exchange between disabled Chinese performers an increasingly active campaign by the Egyptians mation; helping the country in similar steps?! China and Egypt and it is ac- perform in Egypt. to secure the return of stolen antiquities. turn to emerge as a real com- by Eman Taher Underwater Museum: Rebuilding the glory of sunken Antiquities in Alexandria In an attempt to revive the andria is revealing details of for the museum is the Eastern glory of “The Cradle of Greek Alexandria both before the harbour, which was, during the Civilization in Egypt”, Alexan- arrival of Alexander and during ancient times, a reflection of dria, the Minister of Antiquities, the Ptolemaic dynasty. From the different combined historical recently announced the plan late 18th century, Alexandria mix of Greece, Rome, and the for building the long awaited became a major centre of the old culture of the Pharaos, leav- Underwater Museum of Egypt’s international shipping industry ing the “Bride of the Mediter- sunken antiquities over the and one of the most important ranean” (Alexandria), a glorified Mediterranean sea. trading centres in the world, centre of different civilizations. both because it profited from Many of the treasures of The Many Layers of the easy overland connection old civilization were buried Alexandrian Greek traces between the Mediterranean Sea under the Mediterranean Sea According to Wikipedia, the and the Red Sea, and the lucra- due to severe earthquakes. The free encyclopedia, Alexan- tive trade in Egyptian cotton. Museum will actually focus dria was founded around on displaying these treasures, Pompay Pillar a small Ancient Egyp- The Underwater as the Minister of Antiqui- tian town c. 331 BC by Alex- Museum: The sunken ties declared. According to the Alexandria was the Hellenic Finally, it is great to know ander the Great. It became an city is back to life! design of the French architect, Nilotic melting pot. Yet, much that Egypt will ever last in- important centre of Roman and Such a heritage cannot be the Museum will consist of of classic Alexandria is buried spire the world with its unique Byzantine Egypt for almost neglected, the Underwater three parts. The first part will under the modern city. Fortu- treasures and antiquities and 1000 years until the Muslim Museum will actually work on be onshore, which will include nately for us, unfortunately for significant history. Even if these conquest of Egypt in AD 641, reviving the many layers of treasures that were raised from the ancient citizens, the Sunken treasures are sunken, they still when a new capital was found- historical heritage of ancient the sea, and survived the vari- City in the Mediterranean Sea grab worldwide attention. ous ecological changes. The is one of the greatest marine ed at Fustat (later named Cairo). Alexandria which is actually by Amira El-hamy Alexandria was best known for buried under the clear crystal second part of the Museum will treasure-troves in the world. the Lighthouse of Alexandria, water of the enormous Mediter- be offshore, also including dif- Remember, this City claimed one of the Seven Wonders of ranean Sea. According to the ferent items from under the sea, one of the more notable won- the Ancient World; its Great Li- announcements of Ministry of however, they will be displayed ders of the Seven Wonders brary (the largest in the ancient antiquities, in 2008 the French in aquariums. A fiberglass tun- in the Ancient World, the world; now replaced by Biblio- architect, Jacques Rougerie, nel will allow visitors to cross Lighthouse. The Underwater theca Alexandria ); and the Ne- submitted the architectural de- to the third part of the Museum, Museum is a sure path to re- cropolis, which is also called sign of the Underwater Museum the Sunken City, which is lying energize the city and bring it the catacombs of Kom el Sho- and it actually got approved peacefully under the mysterious more fame and fortune. qafa. The catacombs is a series by the UNESCO and Minstry waters of the Mediterranean. «If Egypt manages to cre- of Alexandrian tombs, statues of antiquities. The Underwater ate the Underwater Museum in and archaeological objects that Museum will allow the display The Bride of the Mediterranean Alexandria! That would be on cleverly combine the Pharaonic of Egypt’s sunken treasures; it speaks for itself! the scale of the New Library funeral cult and early Imperial will allow tourists and visitors Egyptologist Ahmed Seddik or rather a new Suez Canal,» Roman influences; it is also one to see the remains of the sunk- stated, that building an Under- says Seddik. Speaking of the of the Seven Wonders of the en Lighthouse of Alexandria water Museum in Alexandria, origin of the name Alexandria, Middle Ages. Alexandria was and the royal court of Queen would have the effect of at- Seddik explains that Alexander the second most powerful city Cleopatra’s palace. 60 pieces tracting millions of tourists. comes from the Greek, Alexan- of the ancient world after Rome. survived from the royal court Alexandria occupies a position dros, which means the defender Ongoing maritime archaeol- of Cleopatra including a Sphinx of preeminence when it comes of men and it is clear, he was Treasures of Cleopatra's sunken palace ogy in the harbour of Alex- statue. The location chosen to the Ancient Greek World. quite aptly named. Alexander the great

WEATHER

Ankara -1 °C Tunis Algiers Tehran 20 °C Beirut Damascus 17 °C 12 °C 7 °C 5 °C Baghdad Rabat Gaza Tripoli 12 °C 9 °C 19 °C Amman 19 °C 16 °C Cairo Kuwait 15 °C 12 °C Manama 19 °C Riyadh Doha 22 °C Abu Dhabi 18 °C 24 °C Muscat 29 °C

Nouakchott 34 °C Khartoum 23 °C Sanaa 24 °C Djibouti 32 °C