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Compiled by; Yasser Shawky, Embassy of Finland
Monthly Economic and Commercial Bulletin
EGYPT
Provided by:
Embassy of Finland, Cairo
Commercial Section
February 2016
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 2
TABLE OF CONTENTS
Economy ................................................................................................................................................................... 3 NBE, BANQUE DU CAIRE, BANQUE MISR TO ACCEPT SUBSCRIPTIONS OF EGYPTIANS EXPATS TO ‘BILADY’ DOLLAR CERTIFICATE ..................................................................................................................................... 3 VALUE-ADDED TAX TO BE SET AT 10% .......................................................................................................... 4 EGYPT LAUNCHES FINAL SUSTAINABLE DEVELOPMENT STRATEGY FOR 2030 ............................................. 4 EGP SLIDES IN PARALLEL MARKET TRADING ................................................................................................. 4 CBE ALLOCATES USD 647MN TO SUPPORT BANKS' LENDING TO SMES ....................................................... 4 NBE CUTS FOREIGN CURRENCY SALE LIMITS TO TRAVELERS ........................................................................ 5 Egypt hopes to achieve growth rate of 4.5% by June ................................................................................... 5 High demand for imports poses main challenge, central bank chief ............................................................ 5 Maintaining current prices of government services is unsustainable, minister ........................................... 6 Egypt is moving rapidly toward pound floating, Beltone .............................................................................. 6 CBE RAISES DEPOSIT CAP TO USD1 MILLION FOR EXPORTERS ..................................................................... 7 UNEMPLOYMENT RATE EASES TO 12.7% IN 4Q2015/16 .............................................................................. 7 Saudi Arabia offered Egypt $ 1bn aids .......................................................................................................... 7 Egypt’s core inflation jumps to 7.73% in January, CBE ................................................................................. 8 Gulf deposits conceal the real foreign reserve downturn ............................................................................. 8
Banks, Stocks & Finance............................................................................................................................................ 8 Central bank lowers interest rate of mortgage finance ................................................................................ 8 CBE TO DEFER TOURISM SECTOR DEBTS TO BANKS FOR THREE YEARS........................................................ 9 CBE’s launch of United Bank IPO contingent on approval of 2015 budget: Official ..................................... 9 CBE announces EGP 5bn loan programme for industry, manufacturing .................................................... 10 EGYPT CANCELS 5-YEAR T-BOND ISSUE, 10-YEAR BOND YIELD JUMPS ...................................................... 11 CBE TO ACCELERATE ISSUANCE OF LC’S FOR EDIBLE OIL PRODUCERS ....................................................... 11 CBE to consider floating pound when foreign reserves hit $30bn .............................................................. 11 Central bank seals USD 500 mn financing deal with Afreximbank .............................................................. 12 ADB to offer $ 1.5bn to Egypt administrative capital .................................................................................. 13 Banking system slips into deficit of USD 2.2bn in foreign currency ............................................................ 13 CBE bans foreign currency transactions at local points of sale ................................................................... 13 I-Score collaborates with banks to activate common definition of SMEs ................................................... 14 Banque Misr becomes the first state-owned lender to comply with GRI ................................................... 14 Egypt to receive financial assistance from Japan ........................................................................................ 15 CBE raises cap on dollar deposit to $1m per month ................................................................................... 15 CBE Deputy Governor clarifies regulators on dollar cap increse................................................................. 16 Faisal Islamic posts EGP 754mn profits in 2015 .......................................................................................... 17 China transferred $1.425bn to CBE and NBE .............................................................................................. 17 CBE’s decision to raise cap on dollar deposit will not mitigate liquidity pressures: Moody’s .................... 17
Investment & Mega Projects................................................................................................................................... 19 GB Auto to acquire a plot for setting up two factories ............................................................................... 19 Meivo to implement expansion plan .......................................................................................................... 19 TEDA receives 10 investing offers in Northwest Suez Gulf ......................................................................... 20 MINISTRY OF HEALTH TO ESTABLISH AND RENOVATE 135 HOSPITALS BY 2017 ........................................ 20 Volume of Egyptian investments in Africa attained USD 8bn, President .................................................... 20 A French integrated industrial zone to be set up in Alexandria soon ......................................................... 21
Foreign Trade & International Relations ................................................................................................................. 21 Customs Authority, European automotive companies at loggerheads over tariff exemptions .................. 21
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 3
Trade between Egypt and China is anticipated to grow to USD 14 bn ....................................................... 23 MPs call for banning dollar trading outside banks, increasing customs on imports ................................... 23 Egypt cancels protection fees on sugar imports days after raising customs .............................................. 24 CBE excludes computers and applications from import restrictions .......................................................... 25
Local Trade – Mergers & acquisition ....................................................................................................................... 25 Pharos completes Danone takeover of Halayib deal .................................................................................. 25 Pachin Paints' profit surges to 94% (about 36 million pounds) in 6 months .............................................. 26 Ghabbour Egypt targets to sell 400 Volvo trucks ........................................................................................ 26
Energy – Oil & Gas .................................................................................................................................................. 27 EETC builds 4 solar power plants with capacities of 136KW ....................................................................... 27 Solarize implements 35 solar power projects ............................................................................................. 27 Taqa Arabia to borrow USD 55mn to undertake solar power venture ....................................................... 27
Tourism .................................................................................................................................................................. 28 RTVC to invest EGP 4bn in its Stella Di Mare II project Sales of the projects are estimated to amount to EGP 5bn ....................................................................................................................................................... 28 Tourism Ministry to sign quartet protocol to support trips to three new markets .................................... 29 Aswan’s Valentine Hotel completes EGP 220m renovation, adding 203 rooms ......................................... 29
Politics .................................................................................................................................................................... 30 Sisi announces legislative power transfer to Parliament ............................................................................ 30
Trade Fairs and Events in Egypt 2016 ...................................................................................................................... 30
ECONOMY
NBE, BANQUE DU CAIRE, BANQUE MISR TO ACCEPT SUBSCRIPTIONS OF EGYPTIANS EXPATS
TO ‘BILADY’ DOLLAR CERTIFICATE
Source: Daily News Egypt, February 29, 2016
The “Bilady” bond certificate programme, a measure taken to prevent the further erosion of Egypt’s foreign
currency reserves by offering bonds to be purchased in US dollars, will be introduced. Representatives of the
National Bank of Egypt (NBE), Banque du Caire, and Banque Misr announced the issuance date of the bond. The
issuance of the “Bilady” bond certificate will only be available to Egyptians living abroad in an attempt to direct
foreign currency back into state coffers. Minister of Immigration and Egyptian Expatriate Affairs Nabila Makram said
that the bond certificate is a response to calls from Egyptians living abroad to have a high yield bond certificate that
can also bolster Egypt’s economy. Makram said the new certificates have been launched with maturation periods of
one, three, and five years and that their return will be granted in dollars: 3.5% for the one-year certificate, 4.5% for
the three-year certificate, and 5.5% for the five-year certificate. The return will be calculated from the day after the
purchase and may be withdrawn every six months.
The bond certificates will be sold for $100. Customers will not have the right to withdraw the value of the one-year
certificate before its maturation period, while the accumulated value of the three-year certificate can be withdrawn
after six months. As for the value of the five year certificate, it can be withdrawn after one year.
The Central Bank of Egypt (CBE) guarantees the right to transfer the returns and values of the certificate to
customers’ accounts outside Egypt in US dollars without a maximum transfer limit. The participating banks, in
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 4
cooperation with the ministry, will prepare internal and external promotional campaigns. International branches of
the participating banks will work with customers interested in the bond certificates.
VALUE-ADDED TAX TO BE SET AT 10%
Source: Ahramonline, February 25, 2016
The long-delayed value added tax (VAT) has been set by the government at a flat rate of 10%, according to the
country's sustainable development strategy for 2030 website that was launched. The bill is currently under review
by Parliament and is one of the challenges to be presented by the government to the House of Representatives.
Egypt's government hopes to raise tax revenues by around EGP30 billion upon the implementation of the new tax.
EGYPT LAUNCHES FINAL SUSTAINABLE DEVELOPMENT STRATEGY FOR 2030
Source: Ahramonline, February 25, 2016
Egypt launched the final draft of the country's sustainable development strategy for the next 15 years, with the aim
of raising GDP growth to 12% in 2030, up from the 4.2% attained last fiscal year, while reducing the budget deficit
to 2.28% of GDP from 11.5%. The strategy announced in March last year during the Economic Development
Conference in Sharm El-Sheikh has been finalised after societal discussions and is the product of two years of
preparation, said Minister of Planning, Ashraf El-Araby at a launching event attended by President Abdel-Fattah El-
Sisi. According to Prime Minister Sherif Ismail, the 2030 plan is to expand investors’ base, individuals and
companies, raising the contribution of the private sector to 75% of GDP up from 60%. Egypt will continue to make
the best use of aid from Arab Gulf countries, as well as issue new securities to finance projects including Islamic
Sukuk and international bonds, said Ismail. For his part, the governor of Egypt's central bank Tarek Amer said the
bank's main objective in the upcoming years will be boosting the growth of small and medium enterprises (SMEs).
The unemployment rate is targeted at 5% in 2030, down from 12.8% in 2015. Population poverty rate should fall to
15%, down from 26.3%, according to the government vision.
EGP SLIDES IN PARALLEL MARKET TRADING
Source: Bloomberg, February 24, 2016
Egypt’s pound weakened to a record in unregulated trading as demand for USD rose in the face of a Central Bank
assurance that it would not devalue the currency. The EGP fell to EGP9.12 per dollar in the parallel market, from
EGP9.09 last week, according to the average of quotes from four dealers in Cairo and Alexandria. This is the lowest
level since the weekly surveys started in April 2013 and represents a 14% mark-up to the official exchange rate the
Central Bank has maintained since November. Currency dealers surveyed asked not to be identified because trading
outside official price limits violates Central Bank rules.
CBE ALLOCATES USD 647MN TO SUPPORT BANKS' LENDING TO SMES
Source: Daily News Egypt, February 24, 2016
The Central Bank of Egypt (CBE) decided to allocate EGP 5bn (USD 646.9mn) to support banks loan programs
designed to encourage SMEs in industry and agriculture, the bank said in a statement. The funds will be allocated
over tranches. The new loans extended to SME projects will carry an interest rate of 7% over 10 years. The aim is to
finance new machinery, equipment, and production lines.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 5
The CBE unveiled in January a programme to support youth-established SMEs by financing 350,000 companies and
creating up to 4mn jobs over the next four years. The programme is in line with recently announced government
plans to support the SMEs; thus, creating jobs and encouraging sustainable development. The low interest rate will
apply to projects expected to gain EGP 1-20mn as annual income. In return, the participating banks in the scheme
will be permitted to reduce their level of required reserves held at the CBE by an amount equivalent to what they
lend. The programme aims to push the share of loans awarded to such type of projects to at least 20% of the total
loans.
NBE CUTS FOREIGN CURRENCY SALE LIMITS TO TRAVELERS
Source: Bloomberg, February 21, 2016
National Bank of Egypt (NBE) reduced the USD-denominated limit travelers can buy to USD2000 from USD3000. The
bank also decreased the maximum amount travelers can spend abroad on locally-issued credit cards to the
equivalent of EGP1,600 per day from EGP8,000. HSBC Egypt also cut its USD-sale limit to travelers to USD750 from
USD3,000 for regular account holders; the limit for premium account holders was cut to USD1,250 from USD5,000.
EGYPT HOPES TO ACHIEVE GROWTH RATE OF 4.5% BY JUNE
Source: AlMal 21 February 2016
Growth rate of Egyptian economy was less than 4% during the first half of the current fiscal year 2015/16, said
minister of planning Ashraf Al-Araby, and hoped that it would reach 4.5% by next June, which is 0.5% less than the
target growth rate set by the government.
The statements made on the sidelines of Al-Araby participation in Africa Forum 2016, inaugurated by Egypt’s
President Abdel Fattah al-Sisi yesterday in Sharm el-Sheikh resort, in the presence of African heads of state.
In previous statements to Al Mal newspaper, Al-Araby said that the government’s economic reform program that
will be presented to the parliament aims to achieve a growth rate of 5% by the coming fiscal year 2016/2017 to be
increased to 6% during FY 2017/2018.
During the current FY 2015/16, the government aimed to achieve a growth rate of 5%, but conditions indicate it
could drop to 4.5%.
The minister said that external factors and slower economic growth greatly impact the government’s projections.
The minister of planning told Al Mal newspaper that the program aims to cut State budget deficit to less than 10%
through implementing reforms including re-pricing all services offered by the government such as metro tickets,
road duties and applying value-added tax with food sector and basic needs being exempted.
HIGH DEMAND FOR IMPORTS POSES MAIN CHALLENGE, CENTRAL BANK CHIEF
Source: AlMal 21 February 2016
The current economic situation is not a cause for concern, said the governor of Egypt’s central bank Tareq Amer,
adding external debt is well-secured and not of such magnitude that Egypt could be vulnerable to crises.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 6
Egypt’s stock of external debt declined by 4%, amounting to USD 2bn, to USD 46.1bn at the end of last September,
compared to USD 48.1bn in June 2015, according to the central bank.
Speaking to Al Mal newspaper, on the sideline of Africa Forum 2016, Amer said that the major challenge, which the
central bank attempts to meet currently is mounting demand for imports.
The central bank chief called on the Egyptian people to revise consumption patterns, referring to spending on
imported goods.
During his meeting with importers, Amer told them it is unacceptable that the volume of imported luxury items is
USD 20bn.
The central bank has tightened rules to finance the imports of goods deemed non-essential, and importers have
been asked to register their foreign suppliers with the government.
The decisions of regulators have been criticized by merchants and importers.
The measures recently taken including rising deposit limit to USD 1mn a month for exporting firms and USD
250,000 for other companies, have had positive impact on attracting US dollars from the parallel market, Amer said
in press statements.
MAINTAINING CURRENT PRICES OF GOVERNMENT SERVICES IS UNSUSTAINABLE, MINISTER
Source: AlMal 18 February 2016
The government’s economic reform program that will be presented to the parliament to gain confidence aims to
achieve a growth rate of 5% by the coming fiscal year 2016/2017 to be increased to 6% during FY 2017/2018,
compared to 4.2% during FY 2014/2015, according to minister of planning Ashraf Al-Araby.
During the current FY 2015/16, the government aimed to achieve a growth rate of 5%, but conditions indicate it
could drop to 4.5%, according to statements by officials.
Al-Araby said that external factors and slower economic growth greatly impact the government’s projections.
The minister of planning told Al Mal newspaper that the program aims to cut State budget deficit to less than 10%
through implementing reforms including re-pricing all services offered by the government such as metro tickets,
road duties and applying value-added tax with food sector and basic needs being exempted.
Increasing the price of services aims at enabling the government to maintain utilities bearing in mind progressivity
as per raising electricity price, he said.
Al-Araby, who plays a major role in developing economic programs, pointed out that the government will affirm
that the current situation is an untenable, adding “reform measures need to be implemented”.
EGYPT IS MOVING RAPIDLY TOWARD POUND FLOATING, BELTONE
Source: AlMal 17 February 2016
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 7
Beltone Financial Holding said that Egypt is moving quickly towards pound floatation, citing the Central Bank’s
decision to lift cap on foreign currency deposits for exporting companies to $1mn a month rather than 250
thousand dollars now, according to a recently released paper titled "It happens .. Egypt Quickly Heads towards
Pound floating. "
CBE decided last Monday to raise foreign currency deposit cap to $1mn or its equivalent in foreign currencies per
month and without daily deposit limit for exporting firms, in a bid to provide their import needs.
The greenback rate was traded at 9.10 pounds on Tuesday in parallel market, versus 7.83 pounds in the local banks.
Central Bank, Beltone stated, is surprisingly managing the inflationary shock efficiently, through taking control of
the foreign currency average cost, but the more the dependence on the black market to obtain financing, the
higher the cost will be.
CBE RAISES DEPOSIT CAP TO USD1 MILLION FOR EXPORTERS
Source: Reuters, February 16, 2016
The Central Bank of Egypt (CBE) raised on the cap on foreign currency deposits at banks to USD1 million a month
for exporting companies, easing restrictions that have led to manufacturing components pile up at ports. The new
rules require firms to earn within three months foreign revenues through their exports equivalent to the sum they
deposit to finance imports of components. The statement was sent to Reuters by a market source and confirmed by
a Central Bank official. Meanwhile, the USD-EGP hit a new all-time low in parallel market trading as traders
reported a rush of clients – both retail and corporates – to buy the greenback.
UNEMPLOYMENT RATE EASES TO 12.7% IN 4Q2015/16
Source: Ahramonline, February 16, 2016
Egypt’s unemployment rate eased 0.10 percentage points to 12.7% in 4Q2015 from the previous quarter, state
statistics body CAPMAS said in a statement. The jobless rate amongst the age group of 15 to 64 year-olds registered
at 12.8%, CAPMAS said. The total labour force increased 2.4% Y-o-Y to 28.3 million people. Unemployment rate for
women reached 25.8%, while for males the unemployment rate reached 8.9%, showing limited changes from
3Q2015 levels. The total number of unemployed increased by 22,000 Q-o-Q during the quarter, representing the
second consecutive quarter of an increase in the number of unemployed (a total of 102,000 in 2H2015). The
shifting trends in employment reflect slowing economic growth witnessed across 2015, as foreign exchange
shortages dent broader economic activity. There are risks for rising unemployment in the near term, given the
slowdown in the tourism sector on the back of the travel bans from a number of European countries, as well as
persistence of foreign exchange shortages.
SAUDI ARABIA OFFERED EGYPT $ 1BN AIDS
Source: AlMal 14 February 2016
Kingdom of Saudi Arabia provided one billion dollars aid to Egypt during the past few days, but sources did not
specify the nature of the aids.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 8
A document published by the World Bank on its website, includes economic program details that Egypt submitted
to get a 3 year $ 3 bn loan to support budget deficit, showed that Saudi Arabia will provide aids worth $ 2.8 billion
during the current fiscal year 2016 -2015.
Regarding the postponement of the fifth coordination meeting headed by Prime Minister Sherif Ismail from the
Egyptian side and Prince Mohammed bin Salman, Saudi Deputy Crown Prince, which was scheduled to be held on
February 10, sources attributed the reason to Salman and Sharif’s external commitments.
Custodian of the Two Holy Mosques Ambassador Ahmed Qattan has announced that King Salman bin Abdul-Aziz
will pay an official visit to Egypt on April 4 next year.
EGYPT’S CORE INFLATION JUMPS TO 7.73% IN JANUARY, CBE
Source: AlMal 11 February 2016
The annual core inflation rate jumped to 7.73% in January, compared to 7.23% in last December, the Central Bank
announced.
The bank said in a report released a short while ago that core inflation recorded 0.98% on a monthly basis in
January, compared to 0.10% in December.
On the other hand, Consumer Prices Index witnessed a 0.11% monthly increase in January, compared to a 0.09%
decline in December 2015, according to the Central Agency for Public Mobilization and Statistics.
Meanwhile, general inflation annual rate decreased from 11.06% to 10.10% during that period.
GULF DEPOSITS CONCEAL THE REAL FOREIGN RESERVE DOWNTURN
Source: AlMal 1 February 2016
External debts Gulf deposits obtained by the central bank over the past years concealed a real contraction in
foreign reserves balances, accounting for about% 78.9 of $ 16.4 billion reserves by the end of January.
Foreign reserves, excluding those debts and deposits, plunged to only $ 3.5 billion, representing the value of gold,
special drawing rights “SDR” and International Monetary Fund loan.
Currency and foreign deposits constitute 78.8% of reserves, the equivalent of $ 12.9 billion by the end of January,
while gold share amounted to 13.9%, special drawing rights ( 7%), and 0.32% for IMF loans.
Central Bank was trying to maintain foreign reserves level at about $ 16.4 billion over the past five months, despite
the state basic resources deterioration, ranging from tourism, foreign investment and exports, and even
remittances from Egyptians abroad as well as Suez Canal revenues.
BANKS, STOCKS & FINANCE
CENTRAL BANK LOWERS INTEREST RATE OF MORTGAGE FINANCE
Source: AlMal, 27 February 2016
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 9
The Central Bank of Egypt has decided to amend mortgage finance initiative issued in February 2014 to finance
purchasing apartments for earners with low and average incomes.
The bank said on Thursday it decided to amend certain terms in the initiative given the challenges the initiative has
faced since its launch, especially as some low-income earners could not take advantage of it, either due to their low
income, or being unable to prove their eligibility.
What is important in these amendments is giving an opportunity for those with income less than EGP 1,400 a
month to benefit from the initiative at a reduced annual interest rate of 5% instead of 7%, according to statement
by the bank.
The low interest rate would ease the burden for low-income earners, the bank announced.
Required deposit for buying a flat was lowered by EGP 12,000, under the amendments.
The central bank said that it will encourage lenders to fund groups who find it difficult to prove their income, by
covering credit risk through group insurance policies.
CBE TO DEFER TOURISM SECTOR DEBTS TO BANKS FOR THREE YEARS
Source: The Daily News Egypt, February 24, 2016
The Central Bank of Egypt (CBE) launched a new initiative to support tourism sector, deferring the debts owed by
the tourism sector to banks for three years. This initiative includes the establishment of a special unit at CBE in
charge of the restructuring of the tourism sector’s debts. The unit is expected to start operating in mid-March.
According to CBE’s statement of February 23, numerous meetings have been held with tourism officials to discuss
their needs over the upcoming period. CBE stated that the initiative would be valid for a year from the launch date,
during which any requests for the deferral of bank dues would be accepted for a period of three years at the most.
CBE launched a similar initiative to support workers in the tourism sector on December 3, 2015, through which
banks were allowed to defer consumer debts.
CBE’S LAUNCH OF UNITED BANK IPO CONTINGENT ON APPROVAL OF 2015 BUDGET:
OFFICIAL
Source: Daily News Egypt 23 February
A senior official at the United Bank said the Central Bank of Egypt (CBE) will not launch the United Bank’s initial
public offering (IPO) on the Egyptian Exchange (EGX) until it approves the bank’s 2015 budget.
The source said in special remarks to Daily News Egypt the bank has already finalised the 2015 budget and it is
currently being reviewed by the CBE, the Accountability State Authority (ASA), and Hazem Hassan Consulting Office.
CBE Governor Tarek Amer revealed Sunday evening that the CBE intends to launch the United Bank’s IPO on the
stock exchange. According to the source, the bank is yet to receive any formal instructions from the CBE regarding
the IPO process.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 10
The United Bank was established in 2006 and three banks merged with it, including the United Bank of Egypt, the
Islamic International Bank for Investment and Development, and Nile Bank.
The United Bank’s capital is EGP 1bn and the CBE owns 99.9% of its shares. Upon its launch, the United Bank
received a deposit of EGP 5bn from the CBE, aiming to resolve the problems of the three merged banks. The United
Bank is expected to pay off this deposit in 2020.
Earlier in 2015, former head of the United Bank Mohamed Ashmawy told Daily News Egypt the bank is ready to
enter the stock exchange after it repaid its loans and recorded profits since 2012.
According to Acting Chairman of the United Bank Farag Abdel Hamid, the bank overcame losses and hit profitability
during 2013 and 2014, at approximately EGP 356m. The United Bank is expected to achieve a profit increase of at
least 15% for 2015 compared to 2014.
Abdel Hamid said the total size of deposits in the bank by the end of 2015 exceeded EGP 20bn, while its assets
exceeded EGP 28bn. The United Bank ranks second among Islamic banks in the Egyptian market, after Faisal Islamic
Bank of Egypt.
Islamic banking activities represent about 60% of the bank’s business, and the bank’s board is seeking to shift fully
to Islamic banking if the size of its Islamic transactions registers 80% of the total activities of the bank.
CBE ANNOUNCES EGP 5BN LOAN PROGRAMME FOR INDUSTRY, MANUFACTURING
Source: Daily News Egypt 23 February
The loans will be allocated for the purchase of machines and equipment to expand production capacity, and will
have a decreasing interest rate initially set at 7%
The Central Bank of Egypt launched an initiative Monday designed to provide loans to medium-sized companies
operating in industrial and agricultural sectors.
The loans will be allocated for the purchase of machines and equipment to expand production capacity, and will
have a decreasing interest rate initially set at 7%.
According to the CBE’s statement, the initiative aims to grant medium and long-term soft loans to finance
machinery, equipment and production lines. The expected sales volume of these purchases ranges from EGP 20m
to EGP 100m.
The CBE’s loan program provides for a 10-year repayment period. Applicants can apply for one loan package and
may receive a maximum of EGP 20m from one bank.
The CBE has allocated EGP 5bn for its new loan program, a figure it will make available to banks in March 2016.
The initiative comes alongside a series of others taken by the CBE—in coordination with the Egyptian state’s
general policy framework to support small and medium sized enterprises— to support the manufacturing and
agriculture.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 11
EGYPT CANCELS 5-YEAR T-BOND ISSUE, 10-YEAR BOND YIELD JUMPS
Source: Reuters, February 23, 2016
Egypt's government hopes to return to the international bond market with a debt issue by end of June, Finance
Minister Hany Kadry Dimian said .Dimian also added that the size of the issue, the timing and the tenor (maturity)
would depend on market conditions. "We are keeping an eye out, hoping to get into the market before the end of
this fiscal year. The bottom line and final decision will be for the market to dictate - whether we are out of the
consequences of turbulence that happened in China and its negative impact on emerging markets or not. "Time
comes first, then size, then tenor," Dimian said, adding that Egypt would face a "financing gap" over the next three
years of between USD25 billion and USD30 billion, but did not elaborate on the nature of the gap or how it would
be filled. He also said the dynamics of Egypt's relationship with the wealthy Gulf Cooperation Council countries was
changing, from the Gulf providing loans in a grand policy framework to direct investment.
CBE TO ACCELERATE ISSUANCE OF LC’S FOR EDIBLE OIL PRODUCERS
Source: Reuters, February 23, 2016
The Ministry of Supply and Internal Trade and the Central Bank of Egypt agreed to accelerate the process of issuing
letters of credit for private and public edible oil companies, while currently, the Ministry of Supply is sourcing raw
materials from external markets, according to Minster Khaled Hanafy. Edible oil, sugar and rice factories are
currently operating at near full utilisation to supply wholesalers with 3k tonnes of edible oil, 2.5-3k tonnes of rice
and 4k tonnes of sugar, along with hundreds of other products manufactured by both the Food Industries Holding
Company (FIHC) and private companies, Hanafy added. The Ministry is planning to offer the products from its
warehouses to non-cooperative stores at discount, to be made available for consumers at reasonable prices. The
decision comes in response to the ongoing food supply shortage as a result of FX pressures, with edible oil amongst
the most heavily-influenced food items – several oil tenders were reportedly cancelled in the past three months,
according to Reuters.
CBE TO CONSIDER FLOATING POUND WHEN FOREIGN RESERVES HIT $30BN
Source: Daily News Egypt 22 February
Actual value of imports amounts to approximately $90bn, in addition to smuggled goods worth approximately
$9.6bn, says Amer
The Central Bank of Egypt (CBE) will consider floating the local currency when foreign reserves hit between $25bn
and $30bn, CBE Governor Tarek Amer said in a televised interview on Sunday.
Speaking to TV host Ibrahim Eissa, Amer stressed the unlikelihood of floating the Egyptian pound against the dollar
currently, in light of the decline of foreign exchange reserves to $16.5bn by the end of January.
The CBE adopted a number of bold decisions recently, aiming to adjust the foreign exchange market and organise
import operations, which have consumed the bulk of foreign exchange over the past three months.
According to Amer, Egypt suffers from unregulated import operations, which required immediate confrontation.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 12
He explained that Egyptian imports amounted to approximately $50bn by January 2011, and have ballooned to
$76bn currently.
Approximately 20% of importers submit falsified import bills at lower than their actual prices, raising the actual
value of imports to approximately EGP 90bn, in addition to smuggled goods valued at approximately $9.6bn.
In the same context, Amer urged the private sector to be patient and support CBE’s decisions to overcome the
current crisis.
The CBE governor vowed to resolve the dollar crisis and the transfer of investors’ profits abroad in 2017.
“I met with more than 300 foreign and Egyptian companies, and listened to their complaints. They expressed
satisfaction regarding the decisions we have made,” said Amer.
The largest 100 companies in the private sector recorded revenues of approximately EGP 240bn and profits of
nearly 14%; such performance cannot be replicated in any other country, he claims.
Amer further affirmed that the CBE coordinates with the government in all its decisions, irrespective of disputes
that may occur between the CBE and some members of the government.
The Ministry of Finance has not agreed to raise the value of the dollar to EGP 8.25 in the state budget for fiscal year
2016/2017. CBE is the only authority entitled to set the exchange price.
Amer stressed that Egypt will not go bankrupt, noting that foreign debt is still within the safe limits, at
approximately $45bn, constituting less than 15% of GDP.
CENTRAL BANK SEALS USD 500 MN FINANCING DEAL WITH AFREXIMBANK
Source: AlMal 20 February 2016
The African Export-Import Bank (Afreximbank) has signed a financing deal worth USD 500 mn with the Central Bank
of Egypt to finance strategic commodities and production inputs.
Under the terms of the agreement, according to the African funder, Egypt shall be provided with foreign currency
within facing vicissitudes of markets program approved by its board last December that aims to finance importers
of productive and industrial sectors with the facilities being given upon the approval of the central bank.
On the sidelines of the signing ceremony, Afreximbank’s CEO Dr. Benedict Oramah said that the board of his bank
will work to speed up providing the US dollar financing necessary to ensure the achievement of expected returns in
the coming period
He said his bank supports the efforts of the Egyptian authorities to meet lack of foreign currency challenge.
The Governor of the Central Bank of Egypt Tareq Amer commended the African funder’s support and promised to
achieve a satisfactory performance through giving the new facilities
The central bank is striving to control and improve the performance of the Egyptian market through adopting
coherent policies, which have begun to have the desired effect, said Amer.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 13
ADB TO OFFER $ 1.5BN TO EGYPT ADMINISTRATIVE CAPITAL
Source: AlMal 20 February 2016
African Development Bank planned to provide of $ 1.5 billion funding for the new administrative capital project
which has been launched by Egypt at a total cost estimated at $ 44 billion.
The announcement came during a speech by ADB Chairman Akinwumi Adesina at the opening session of Africa
Forum 2016, in which President Abdel Fattah al-Sisi participated.
Adesina said that the new funding raises the bank's portfolio with Egypt to $ 2 billion.
Okinomy added that Egypt has achieved more successes during the last period, including the Suez Canal project
fully funded by the Egyptians within just 8 days, which is deemed a great achievement for the country.
BANKING SYSTEM SLIPS INTO DEFICIT OF USD 2.2BN IN FOREIGN CURRENCY
Source: AlMal 18 February 2016
Net foreign assets of Egypt’s banking sector have been negative for the second month in a row, which is a clear
demonstration of foreign currency crisis in the country. A deficit was registered at EGP 17.2bn (about USD 2.2bn) by
the end of last December, against surplus of 84.4bn in December 2014, according to the reports of Central Bank of
Egypt.
The deficit in net foreign assets of the central bank grew to EGP 13.6bn (about USD 1.7bn) from EGP 4bn for the
fourth month in a row, compared to a surplus of EGP 32bn in December 2014.
The central bank liabilities increased to EGP 137.4bn with assets totaling EGP 123.8bn in the last year.
The central bank reports show that 96% of liabilities in foreign currency are medium- and long-term, which implies
that there are no dues owed by the banks in the short-run.
Foreign assets of local banks declined for the second month in a row, recording a deficit of EGP 3.6bn (about USD
460mn) by the end of last December, against surplus of EGP 52bn at the end of 2014.
CBE BANS FOREIGN CURRENCY TRANSACTIONS AT LOCAL POINTS OF SALE
Source: Daily News Egypt 16 February
According to the CBE, this decision came in light of the discount made on transactions conducted at local POS in
foreign currency at some commercial centers, through credit cards issued in local currency from local banks
The Central Bank of Egypt (CBE) decided Tuesday to ban foreign currency transactions at local points of sale (POS).
The CBE demanded banks urgently modify software used in POS machines to reject operations in foreign currencies
whether through credit, debit, or prepaid cards. The CBE permitted the use of foreign currency in transaction
conducted by payment cards issued by banks abroad. It also provided a two-month concessionary period for banks
to modify the software applicable to their POS and converter devices.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 14
According to the CBE, this decision came in light of the discount made on transactions conducted at local POS in
foreign currency at some commercial centers, through credit cards issued in local currency from local banks.
This decision violates item No. 111 in the CBE and banking sector law No. 88 of 2003. It stipulates that the sale and
purchase of goods and services in Egypt must be conducted in Egyptian pounds according to the procedures set by
the executive regulations of the law, unless there are contradicting international agreements or another
contradicting law.
I-SCORE COLLABORATES WITH BANKS TO ACTIVATE COMMON DEFINITION OF SMES
Source: AlMal 15 February 2016
The Egyptian Credit Bureau (I-Score) is currently capturing the required actions to give effect to the common
definition of small and medium-sized enterprises (SMEs) provided by the central bank recent through organizing a
seminar with banking institutions and corporate donors.
The central bank has recently provided common definitions of micro, small and medium-sized businesses based on
certain criteria including sales volume, annual revenues, capital and workers number in a move to reconcile
differences over the definitions of SMEs.
The Chairman of I-Score Mohammed Kafafi said that the new definition will contribute positively to providing
finance to small and medium-sized businesses, given the unification of standards, on the basis of which banks give
loans to this sector.
For his part, the managing director of the firm Mohamed al-Houshi said that his company is studying the
procedures to be followed with banks to provide I-Score with information about small and medium projects.
The banking institutions expressed willingness to start adopting procedures to harmonize the company’s data with
the central bank’s instructions on the set date.
I-Score maintains a database of credit information for SMEs and consumers. Authorized users (I-Score members)
will be entitled to access I-Score's database to carry out creditworthiness checks on consumers. I-Score now holds
more than 92% of credit data of individuals and SMEs from commercial banks in Egypt (both banks and non-banks)
as of June 2010, thus providing a clear indicator to the lending community and therefore honoring its promise of
"Delivering Trust" to the financial community.
BANQUE MISR BECOMES THE FIRST STATE-OWNED LENDER TO COMPLY WITH GRI
Source: AlMal 15 February 2016
Banque Misr has obtained the approval of the Global Reporting Initiative (GRI) as the first Egyptian state-owned
bank preparing business reports in full conformity with the principles of human rights, fight against corruption, and
the impact of climatic change.
The Global Reporting Initiative (GRI) is a leading organization in the sustainability field. GRI promotes the use of
sustainability reporting as a way for member organizations to become more sustainable and contribute to
sustainable development.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 15
Sustainability reporting guidelines are the cornerstone of the framework of GRI. These consist of Principles for
defining report content and ensuring the quality of reported information. They also include Standard Disclosures
made up of performance indicators and other disclosure items, as well as guidance on specific technical topics in
reporting
Banque Misr has recently announced it has complied with the United Nations Global Compact Principals (CSR
Principals), a global framework for sustainable businesses.
The announcement reflects Banque Misr's ongoing endeavor to lead the industry as a responsible financial
institution in the local market by focusing on CSR and sustainability initiatives in line with the 10 principals of the
UN Global Compact covering areas of human rights, labor, the environment and anti-corruption.
The lender is working extensively to support the communities in which it operates by implementing a number of
social initiatives and activities for a better community, with a special focus on health, environment protection and
human rights.
EGYPT TO RECEIVE FINANCIAL ASSISTANCE FROM JAPAN
Source: AlMal 15 February 2016
Japan intends to provide aids and loans to Egypt on the sideline of President al-Sisi’s scheduled visit to Tokyo next
month, according to Japanese Ambassador to Cairo Takehiro Kagawa, who added that the assistance will be
delivered directly to the Egyptian government, rather than through banking institutions.
In statements to Al Mal newspaper, Kagawa said that the visit will not witness announcing new agreements with
the Central Bank of Egypt as done during the Chinese President’s visit to Cairo last month.
Past week, China Development Bank transferred financing tranches worth USD 1.425 to the National Bank of Egypt
and the central bank as part of implementing three financing agreements worth USD 1.8bn made by the Chinese
funder during the Chinese President’s visit to Egypt.
The top diplomat added that President Abdel Fattah al-Sisi’s visit will focus on three issues namely education,
economic support and politics and security, noting that al-Sisi will meet with the Japanese emperor and premier.
Kagawa said that the Great Egyptian Museum project is among the schemes, on which negotiations are conducted
to increase their finance, giving no further details about the value of financings and agreements scheduled to be
signed during the Egyptian president’s visit to his country.
CBE RAISES CAP ON DOLLAR DEPOSIT TO $1M PER MONTH
Source: Daily News Egypt 15 February
The new cap compares to the previous daily limit of $10,000 on dollar deposits, with a $50,000 monthly cap
The Central Bank of Egypt (CBE) decided to raise the cap on dollar deposits at banks to $1m per month, or its
equivalent in other foreign currencies, with no limit on the daily deposits.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 16
According to a CBE report, this applies only to corporations operating in the field of exports, and which have import
requirements.
The new cap compares to the previous daily limit of $10,000 on dollar deposits, with a $50,000 monthly cap.
Nonetheless, the decision to raise the cap is contingent on a number of factors, including the compatibility between
import requests and the size of deposits.
Another condition governing the applicability of the decision is that the importer benefiting from the decision must
export products for at least the same amount of foreign currency, within a period not exceeding three months. The
beneficiary must also provide adequate proof of such export operations.
If the latter condition is not met, the relevant bank must notify CBE of the client’s name and the affiliated
institutions, placing the client on a list banning any future cash deposits by the client or their group.
CBE DEPUTY GOVERNOR CLARIFIES REGULATORS ON DOLLAR CAP INCRESE
Source: Daily News Egypt 14 February
Officers from banking operations expressed uncertainty regarding several features of the new CBE directive
governing dollar deposits for import operations
Deputy Governor of the Central Bank of Egypt (CBE) Gamal Negm met with officers from banking operations and
compliance departments last Thursday to clarify several of the CBE’s decision to raise the cap on foreign currency
deposits to $250,000 per month.
Officers from banking operations expressed uncertainty regarding several features of the new CBE directive
governing dollar deposits for import operations. In the first instance, officers were unsure whether the new deposit
caps apply to natural and legal or singularly legal persons.
During the meeting, Negm stressed that only importers of commodities that the government has claimed are
essential can benefit from the recent CBE decision. The CBE directive applies neither to individuals—natural
persons—nor companies that import goods on the government’s non-essential list.
Negm noted that all parties can deposit $50,000 per month whether for importing operations or not. The increased
deposit cap however applies only to legal persons. As long as the parties in question have trade records, they are
considered as legal persons who can operate under the CBE’s new regulations.
Bank authorities were similarly unsure about the possibility of rollover in the case that companies did not use the
entire allowed dollar deposits for import operations in a single month. However, Negm emphasized that it is not
permissible to use a previous months deposit in the following month and that the banks will deduct the remaining
money from the amount of cash deposit the following month.
Negm also clarified that cashing cheques in foreign currencies is treated like cash and that in the case that the value
of the cheque exceeded the maximum limit, the surplus will be refunded to the customer.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 17
According to one of the bank representatives who attended the meeting, there was a dispute among the banks
regarding the CBE’s classifications for goods. Negm attempted to clarify these classificatory uncertainties.
Negm also clarified that the deposit date will be the date on which the regulatory determinations are made rather
than the posting date.
FAISAL ISLAMIC POSTS EGP 754MN PROFITS IN 2015
Source: AlMal 8 February 2016
Faisal Islamic Bank of Egypt recorded a profit increase to 753.8 million pounds during the fiscal year ending on
December 31, compared to 623.2 million pounds during the comparative fiscal year 2014, up 21%.
The bank achieved $ 4.5 billion pounds revenues by the end of 2015, compared to 3.8 billion pounds by the end of
2014, date showed.
The lender also recorded during the nine months ended on September 30, 2015, a 7.08% rise in consolidated
profits, with a 663.45 million pounds net profit, compared to 619.53 million pounds for the same period a year ago.
The bank targets a 10% dividend to shareholders after Zakat deduction, according to the planning budget for the
fiscal year 2016.
CHINA TRANSFERRED $1.425BN TO CBE AND NBE
Source: AlMal 8 February 2016
China Development Bank “CDB “has transferred funding payments worth 1.425 billion dollars to the Central Bank
and National Bank of Egypt.
This comes within the framework of the implementation of $ 1.8 billion 3 financing agreements signed between
CDB and CBE, NBE and Banque Misr during the visit made by the Chinese President to Cairo late last month.
Central Bank Governor Tarek Amer said in a statement to Al-Mal newspaper that the Chinese lender transferred a $
900 million sum to the CBE yesterday.
The Central Bank’s finance agreement value totaled about one billion dollars over 11 years, including a three-year
grace period.
Bank official said that money obtained by the Central Bank will be used to strengthen Egypt’s dwindling foreign
reserves to meet dollar demand gap.
CBE’S DECISION TO RA ISE CAP ON DOLLAR DEPOSIT WILL NOT MITIGATE LIQUIDITY
PRESSURES: MOODY’S
Source: Daily News Egypt 1 February
The CBE decision included high-priority products, such as pharmaceuticals, production inputs, raw materials, food,
and industrial machinery, excluding other luxury goods.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 18
Attempts made by the Central Bank of Egypt (CBE) in the past year have resulted in high degrees of variance in the
US dollar’s value against the Egyptian pound. However, these measures have been ineffective in ensuring foreign
currency liquidity, according to an analyst at Moody’s and to workers at foreign exchange counters.
The CBE’s recent decision to raise the cap on dollar deposits from $50,000 to $250,000 per month for local
companies will not mitigate pressures on foreign currency liquidity that banks are facing, international bond credit
rating agency Moody’s said in a report issued Monday.
“Although the central bank’s action aims to increase the availability of dollars to the local banks, it will not be
sufficient to ease the increasing liquidity pressures in foreign currencies that Egyptian banks face, since new dollar
deposits will still be below the demanded amounts necessary to finance imports,” the agency’s report read.
The CBE decision included high-priority products, such as pharmaceuticals, production inputs, raw materials, food,
and industrial machinery, excluding other luxury goods.
Ahmed Sheha, head of the importers division at the Cairo Chamber of Commerce, argued that the decision provides
preferential treatment for certain imports, while raising the financial threshold for a significant number of others.
In February 2015, the CBE decided to set a $10,000 daily deposit cap on the condition that monthly deposits do not
exceed $50,000. The bank stated that its decision aimed to decrease the value of the dollar against the Egyptian
pound in the informal currency exchange market wherein commercial foreign exchange counters and those without
private affiliations circumvent the official exchange values set by the CBE.
The bank believed that importers that were unable to exchange pounds for dollars from banks resorted to the
informal market to complete currency exchange transactions. The bank contended that the imposition of this cap
would mitigate informal currency exchange dealings, thus forcing participants in the informal currency exchange
market out of business.
However, the bank’s strategy proved ineffective, as the value of the dollar continued to increase against the pound.
“The demand for dollars remains significantly above the amounts available from banks. As a result, a number of
Egyptian companies are not able to import, creating bottlenecks in the economy and restricting the country from
achieving the 5% GDP growth it targets for 2016”, Moody’s said.
Despite the CBE’s measures to address the lack of liquidity, banks’ foreign currency liquidity rates dropped to 49%
in September 2015, while their loan-to-deposit ratios in foreign currencies rose to 69% in September 2015, from
56% in 2012.
A day after the CBE announced its decision to raise the cap on dollar deposits on 26 January, the average value of
the dollar increased to EGP 8.6 on the informal market, before it surged to between EGP 8.7 and EGP 8.8 in the
following week, according to a source in the informal currency exchange market who spoke to Daily News Egypt.
On Monday, the average value of the dollar declined to EGP 8.6 on the informal market. A worker at a foreign
exchange counter stated that Governor of CBE Tarek Amer sent a representative to meet with members of the
foreign exchange division at the Chambers of Commerce. The CBE official met with chamber in an attempt to curtail
violations among members of the commercial foreign exchange market.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 19
Wael Badawy, an executive director at a major exchange company, said that the demand for the dollar decreased
after the presidential decree to increase tariffs on 500 commodities was announced.
The Egyptian pound fell by 9% in value against the US dollar in 2015, dropping its exchange value of $1/EGP 7.18 at
the beginning of the year to $1/EGP 7.83 at year’s end.
INVESTMENT & MEGA PROJECTS
GB AUTO TO ACQUIRE A PLOT FOR SETTING UP TWO FACTORIES
Source: AlMal, 28 February 2016
GB Auto is currently involved in negotiations with the government to acquire a land plot in order to build 2 plants
for three-wheeler and car tire, according to the head of investment sector at GB Auto Menatallh Sadeq.
It should be recalled that the company announced its plan to launch three-wheeler factory costing USD 50mn and
tires plant at a cost of EGP 1.8bn.
In statements to Al Mal newspaper, Sadeq said that her firm has started manufacturing the components of the
three-wheeler and motor cycles at its plants in Badr City as part of a plan to secure production supplies.
She added that GB Auto has made an agreement with an Indian firm to gain access to technology needed for
manufacturing the three-wheeler and motor cycle in the local market.
The company is conducting negotiations with an Asian firm owning the brand of tires to be produced locally.
Construction work of the new factories will expectedly be begun by the end of the first quarter after concluding the
negotiations of obtaining lands.
Results of GB Auto showed that the company generated net profit of EGP 209,666 during the first nine months of
2015, compared to EGP 207,062mn for the same period in the previous year.
MEIVO TO IMPLEMENT EXPANSION PLAN
Source: AlMal, 25 February 2016
Meivo International for Pharmaceutical Industries plans to inject new investments worth EGP 800mn to in the
coming period to added production lines and build a new plant.
The new investments will be financed through pumping EGP 500mn by SPIMACO, one the major shareholders with
the remainder being secured through retained profits, according to Meivo’s GM Abdel Fattah Hassan.
Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) managed to acquire a 50.5% stake in
Egypt’s Meivo for SAR 74.88 mn in last May.
The new investments will be employed in creating production lines for syrups and ampoules and setting up a small
factory, he explained.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 20
Based in Egypt's coastal city of Alexandria, Meivo International Pharmaceutical Industries was founded in 2012 with
a capital of USD7.73 mn.
TEDA RECEIVES 10 INVESTING OFFERS IN NORTHWEST SUEZ GULF
Source: Al Mal, Tuesday 23 February 2016
China’s TEDA has received offers from 10 firms over the past period to invest in the expansions of the Chinese
industrial zone in Northwest Suez Gulf. The names of the companies and the details of contracts will be announced
in 3 month.
On the sideline of Suez Canal conference began yesterday, an official at TEDA told Al Mal newspaper that the
bidders are from different nationalities including Egyptian, Gulf and Chinese, adding the firms operate in plastic,
auto and fiberglass sectors.
Al Mal Newspaper reported earlier that the Chinese company started developing 6 sq. km in the second phase of
Suez gulf zone with total investments of USD 223mb after it had already developed an area of 1.3 sq. km.
The applying firms for investing in the zone will sign contracts according to unified tax rate amounting to 22.5%, he
said, adding TEDA’s negotiations with the government to lower the 22.5% tax have not made any progress.
Al Mal Newspaper reported earlier that the government has reached an agreement with China’s TEDA Holding to
develop 6 sq. km in the second phase of Suez gulf zone, totaling 20.4 sq. km, and a contract would be signed.
TEDA introduced the project 6 years ago; however, it has not been launched due to not reaching a final agreement
with the government.
MINISTRY OF HEALTH TO ESTABLISH AND RENOVATE 135 HOSPITALS BY 2017
Source: Al Borsa, February 22, 2016
Egypt’s Ministry of Health and Population has earmarked EGP7 billion to be invested in establishing and renovating
a total of 135 hospitals in 2016 and 2017, according to Minster Ahmed Emad Al Din on the sidelines of the African
Investment Forum. The Ministry is currently finalizing the establishment and renovation of 25 hospitals in a number
of governorates, to be delivered before May 2016; five to be opened within a few days, 20 to be delivered within
three months and the remaining (of the 135) to be delivered within the next 22 months. The Ministry will finance
the establishment and renovation plans from the EGP4.7 billion portion of the Ministry’s budget set for
investments. The Minster is also seeking to intensify its presence in the African healthcare market, with plans to
establish two drug production facilities in Ethiopia and Gabon, where the financing will be provided by the local
private sector.
VOLUME OF EGYPTIAN INVESTMENTS IN AFRICA ATTAINED USD 8BN, PRESIDENT
Source: AlMal 21 February 2016
What has been achieved by Egypt at the African level is a matter of pride as Egyptian firms have been quick in
investing in Africa, said President Abdel Fattah al-Sisi, adding Egyptian investments in Africa totaled USD 8bn, which
created tens of thousands of job opportunities, mainly in construction, agriculture, infrastructure and ICT.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 21
During inauguration of Africa Forum 2016, he added that the volume of trade between Egypt and the African
countries reached USD 5bn planned to be increased, given the fact that it accounts for 12% of Africa’s trade volume
with the world, noting this ratio is not commensurate with the availability of resources.
Egypt is hoping for completing Cairo-Cape Town highway route passing through a number of African capitals, and
developing a waterway from Victoria Lake to the Mediterranean Sea as well as developing infrastructure of
transport and communications companies, according to al-Sisi.
Regarding the forum’s objectives, he said that the event aims to boost trade and investing between the African
countries, which would strengthen their role in the world economy.
Not only does the forum aim to present investing opportunities in the continent, but to open direct channels of
communications between the representatives of the forum and their global counterparts, he said.
A FRENCH INTEGRATED INDUSTRIAL ZONE TO BE SET UP IN ALEXANDRIA SOON
Source: AlMal 8 February 2016
A French integrated industrial zone project will be established through partnership with the Federation of Egyptian
Industries, French Chamber of Commerce and Industry in Alexandria announced.
The Chamber of Commerce and Industry in Alexandria Chairman Ayman Badawi said, during the meeting which was
organized by the Chamber in the presence of Egyptian as well as French businessmen, that the project will be
completed within the next two months, adding that they would announce details during the French President's visit
to Egypt in the next few days.
Badawi also stressed that doubling companies’ capital in the last three years have contributed to Egypt’s economic
environment recovery.
FOREIGN TRADE & INTERNATIONAL RELATIONS
CUSTOMS AUTHORITY, EUROPEAN AUTOMOTIVE COMPANIES AT LOGGERHEADS OVER
TARIFF EXEMPTIONS
Source: Daily News Egypt 23 February
A source with a German automotive manufacturer claims the company has remained subject to tariffs that were set
to be reduced at the start of 2016
Several European automotive companies that operate in Egypt have claimed that the Egyptian Customs Authority
has yet to implement the exemption for imported service parts.
The customs exemptions were set to go into effect at the start of 2016 under the framework of the EU-Egypt
Association Agreement. The association agreement provides for a complete customs exemption for six classes of
service parts, while an additional two other classes will see a deescalating tariff rate that will approach a full
exemption.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 22
An official source at a German automotive company operating in Egypt told Daily News Egypt that the Custom
Authority announced that it would provide customs exemptions for six classes of service parts; however, the
German company has still been subject to custom tariffs.
The manager of the agreements department in the Customs Authority, Ali Galal, confirmed to Daily News Egypt
that the exemption had been in effect since 1 January. He explained the continued enforcement of the tariff by
indicating that only those companies that possess valid certificates of origin will be granted the exemption.
According to the customs authority, the exemption will be applied to service parts, such as safety and security glass
composed of tempered glass. The current tariff on these items is 10% of the stated value.
For the additional two classes of service parts that have not received a full exemption, the tariff rate has been
reduced by 85%, and a full exemption will be applied by the beginning of 2017.
In 2013, the customs authority exempted 14 classes of service parts in accordance with the EU-Egypt Association
Agreement. The most prominent among those items exempted were rubber tires, as well as clutches, brakes, and
airbags.
The Customs Authority granted an exemption to European cars with an engine displacement of 1300cc or less at
the beginning of 2016, a source in the Ministry of Finance told Daily News Egypt. The decision falls under item 4 of
the EU-Egypt Association Agreement, the implementation of which began in 2008.
The source also explained that item 5 in the agreement includes provisions for a reduced tariff rate for European
cars with an engine displacement that exceeds 1300cc. However, this reduction will not come into effect until 2019.
The source in the finance ministry explained why the government focuses on certificates of origin. Although there
are several Asian and US automobile companies operating in Egypt, much of the production occurs in European
countries. Thus, they are subject to the EU-Egypt Association Agreement.
The source in the finance ministry claimed that the discrepancy between government institutions and automotive
manufacturers – both European and Egyptian – is rooted in misinformation regarding the period of implementation
and the attendant procedures and regulations governing enforcement. Egyptian automobile companies expected
that the agreement would remain effective, with the possibility for a revision that would lessen the privilege
provided to European companies.
Other parties were unaware that the Customs Authority’s 2008 decision would be divided into several phases, with
the most prominent one stipulating a 10% reduction in the tariff rate for imported cars to be implemented in two
classes. The first category includes cars with an engine displacement between 1300cc and 1600cc, while the second
category applies to cars with an engine displacement between 1600cc and 2000cc. Those cars with an engine
displacement below 1300cc will receive an annual reduction of 15%.
At the time of the enforcement, the Customs Authority did not expect to see the introduction of 1200cc turbo
engines onto the market. According to Galal, the government did not expect to provide a reduced tariff to
European cars in this class.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 23
The Customs Authority will provide full exemptions for cars of European origin by 2019, reducing the government’s
ability to collect tariff revenue and insulate the Egyptian automotive market.
TRADE BETWEEN EGYPT AND CHINA IS ANTICIPATED TO GROW TO USD 14 BN
Source: AlMal 20 February 2016
The Chairman of Egyptian-Chinese Chamber of Commerce Moataz al-Saeed expected that the trade volume
between the two countries will reach USD 14 bn in 2016, compared with USD 12 bn in 2015, adding the balance of
trade in favor of Beijing.
During the 1st China-Egypt international trade forum on Saturday, he said that the Chinese economy is capitalist,
rather than socialist, as commonly believed, adding that China still preserves the morality of socialism, noting that it
does not sell land plots, but all lands there are obtained on usufruct basis.
The head of Egyptian-Chinese Chamber of Commerce said that foreign investors do not face any problems or
encounter administrative obstacles in China, which is the most important advantage of investment climate.
Al-Saeed emphasized the need for taking advantage of China in terms of attracting investment to the national
projects, and creating joint industries as well as food security.
He said that the number of Chinese tourists visiting Egypt ranges from 100 thousand to 135 thousand a year, adding
the number can be increased.
MPS CALL FOR BANNING DOLLAR TRADING OUTSIDE BANKS, INCREASING CUSTOMS ON
IMPORTS
Source: Daily News Egypt 15 February
The price of the dollar on the parallel market has neared the EGP 9 mark, while it remains at EGP 7.83 in banks
Members of the Egyptian parliament said the sharp rise in the price of the dollar against the Egyptian pound
requires exceptional measures to prevent the aggravation of the crisis.
“The dollar crisis and the pound exchange rate will be one of the most important issues raised in the parliament,
following the completion of the formation of the permanent specialized committee in February,” they said.
MP Amr El-Gohary said the parliament’s economics committee has many issues to tackle, on top of which is the
dollar crisis, which exacerbates day after day under multiple conditions. These conditions include the decline in
tourism and international trade, and the impact of the latter on the Suez Canal revenues, as well as the flagging
remittances from Egyptians abroad.
The parliament awaits five draft laws from the government addressing pensions, social security, old rental housing,
civil service, as well as the value-added tax (VAT) law. He said the parliament will not discuss any laws at this time
until it adopts the parliamentary bylaws at the end of February, which will be followed by the formation of the
permanent specialised committees.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 24
The dollar exchange rate in the parallel market has neared the EGP 9 mark, while the official price at banks remains
EGP 7.83.
Meanwhile, the Suez Canal’s revenues declined to $5.17bn in 2015, compared to $5.46bn in 2014. Moreover,
tourism revenues declined to $6.1bn in 2015 compared to $7.3bn in 2014.
According to El-Gohary, custom tariffs imposed on imports should be increased in view of the economic
circumstances Egypt is currently undergoing. Moreover, a suitable environment must be ensured for the national
industry, in parallel with supporting faltering factories to restore operations.
He believes the president’s decision regarding increasing customs on some merchandise in February aims ease
pressure on the pound, rather than decreasing imports.
Head of the temporary committee for industry and energy at the parliament, Mohamed El-Zeiny, said the dollar
crisis requires an environment that encourages foreign direct investments, which in turn creates job opportunities.
All the obstacles investors are facing, whether foreign or local, must be removed to allow the implementation of
their projects. The parliament will work on amending the Unified Investment Law that was approved, El-Zeiny said.
The trading of dollars outside the banking system must be criminalized, and exchange firms or individuals working
in this business must be penalized, El-Zeiny said. He further called on exporters to give their dollars to the Central
Bank of Egypt (CBE).
EGYPT CANCELS PROTECTION FEES ON SUGAR IMPORTS DAYS AFTER RAISING CUSTOMS
Source: Daily News Egypt 10 February
Decision prevents local factories from controlling prices after raising customs, says state official
Minister of Trade and Industry Tarek Qabil published a decision in the Egyptian Official Gazette Tuesday ordering
the cancellation of the protection fees imposed by the ministry on white sugar imports in April 2015.
The Ministry of Trade had imposed temporary protection fees of 20% on white sugar imports, with a minimum of
EGP 700 per tonne, until it completed its studies on the leap in imports in 2014 and the first quarter of 2015.
Qabil said the investigations found that it was not necessary to impose protection fees on white sugar imports and
decided to refund all temporary fees paid by the importers during the period of investigations.
The decision came a few days after the government decided to raise the customs tariff on raw sugar imports from
2% to 20%, and from 10% to 20% on refined sugar imports, according to a presidential decree issued at the
beginning of January.
According to a source in the Ministry of Trade, some companies import cheap raw sugar in big quantities and then
refine it in Egypt to sell it at lower prices than the local sugar products. This prompted the ministry to raise the
customs on raw sugar imports to avoid the negative consequences on the local sugar industry.
“Cancelling protection fees on white sugar guarantees competition in the market and prevents local factories from
manipulating prices after the rise of customs,” he said.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 25
The domestic production of sugar is estimated at about 2.4m tonnes and the consumption is estimated at about
3.1m tonnes per year, with a supply gap of about 700,000 tonnes per year. Last year, the imports amounted to
1.5m tonnes.
According to a statement from the Federation of Egyptian Industries on Monday, the rise of customs on raw sugar
imports to 20% “achieved social justice for all the parties of the production process and creates an appropriate
atmosphere for the Egyptian industry and agriculture. It also guarantees that the farmer can sell his crop at a fair
price”.
CBE EXCLUDES COMPUTERS AND APPLICATIONS FROM IMPORT RESTRICTIONS
Source: Daily News Egypt 10 February
Decision will contribute to increasing supply of computers and their accessories: Khalil
Egyptian Governor Central Bank of Egypt (CBE) Tarek Amer decided to exclude import operations of the
programmes, applications, computers, and computer accessories from the 100% cash coverage. CBE had placed a
number of restrictions on imported goods, including the requirement to pay 100% of the value of the imported
consignment. This was viewed by IT companies as an obstacle that negative impact on its activities.
Chairman of the General Division of Computers and Software at the Federation of Egyptian Chambers of Commerce
(FEDCOC) Khalil Hassan Khalil said that exclusion of computers and applications from the previous decision will lead
to managing the supply system and rather than the demand system. This contributes to the availability of
computers, computer accessories, necessary software and applications at affordable prices.
It would also help Egyptian companies recover from the recession they suffered and maintain the large investments
made by the state over the past years in this important sector. The state depends on these investments to
stimulate economic and community development as the sector’s contribution to the gross national product (GNP)
increased from about EGP 48bn in 2010 to about EGP 66bn in 2014, a contribution rate of 4.1%.
Khalil said this decision will help increase Egypt’s competitiveness indicators, of which IT has become a major by-
component. Major contributing facts affecting their competitiveness are: laws related to IT, availability of modern
technologies, acquisition of personal computers, application of technology within institutions, and the importance
of technology to the government.
LOCAL TRADE – MERGERS & ACQUISITION
PHAROS COMPLETES DANONE TAKEOVER OF HALAYIB DEAL
Source: AlMal, 24 February 2016
Pharos Holding Investment Bank Sector has finalized the acquisition of the French company "Danone" of all shares
of "Halayib”, a dairy products and juices company, with a 120 million pounds total value.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 26
Pharos Holding Board of Directors Chairman and Founder Mohammed Timor said that the completion of the deal
reflects the dairy sector attractiveness in Egypt, boosted by the large population number.
On his part, the company’s investment bank sector Head Sharif Abdel Aal assured that Danone acquisition of 100%
of Halayib shares is deemed the third largest in dairy sector in less than a year, following the completion of Arab
Dairy sale in March 2015, and "Masreyeen" deal in December 2015.
Pharos Holding investment banks sector executive director Haider Ahmed stated that the deal also reflects foreign
investors interest, multinational companies in particular, in investment opportunities in Egypt, adding that this
cooperation is likely to continue in the current year.
PACHIN PAINTS' PROFIT SURGES TO 94% (ABOUT 36 MILLION POUNDS) IN 6 MONTHS
Source: Al Borsa News, 22 February
A big increase in the accumulated profits for the paints and chemical industries company Pachin with a percentage
of 94% during the second half of 2015 versus 18.6 million EGP during the second half of 2014.
Paints and Chemical Industries (Pachin) was founded in 1958 is currently operating under law no. 159 for the year
1981.
Certifications:
* ISO 9001: (Quality Management Systems)
* ISO 14001 : (Controlling and Improving the Organization's Environmental Performance)
* OHSAS 18001 (Occupational Health and Safety Management Systems)
* ISO/ IEC 17025 (Competence of Testing Laboratories)
They have a strategic alliance with the prominent AkzoNobel-the world's leader in the paints industry, in which
PACHIN is licensed to manufacture and sell various products on behalf of AkzoNobel under the trademark Dulux,
while other AkzoNobel products are being manufactured and sold under the trademark PACHIN and another
strategic alliance with NovaColor _ A first class Italian manufacturer of decorative products .
GHABBOUR EGYPT TARGETS TO SELL 400 VOLVO TRUCKS
Source: AlMal 17 February 2016
Ghabbour Egypt, an affiliate of GB Ghabbour Auto Group, the exclusive agent for Swedish brand trucks Volvo is
targeting 400 units sales by the end of this year.
The company’s Heavy Transport Sales Executive Deputy Head Ahmed Fathy said in statements to Al-Mal newspaper
that the company was able during last year to sell 260 units despite hard currency shortage suffered by the sector.
Fathy pointed out that the company is targeting to increase its sales by about 54% by the end of 2016, compared to
2015 sales in light of the increasing demand for heavy trucks in conjunction with the national projects targeted by
the government, and which have already been announced earlier, most importantly Suez Canal axis project
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 27
ENERGY – OIL & GAS
EETC BUILDS 4 SOLAR POWER PLANTS WITH CAPACITIES OF 136KW
Source: AlMal 22 February 2016
The Egyptian Electricity Transmission Company (EETC) has completed building 4 solar power plants on the top of its
headquarters and affiliated buildings in Cairo, Alexandria, west Delta and Suez Canal area to light these buildings
using solar energy instead of traditional power.
Creating the solar power stations is part of a plan to build 10 solar energy plants on the top of buildings affiliated to
the company, with total capacities of 360 KW, according to the chairman of EETC, Gamal Abdel Raheem, adding
that the systems will be installed on the top of the buildings for lighting.
In statements to Al Mal newspaper, Abdel Raheem said that the total capacities of the 4 projects is 136KW, adding
that his company has already implemented these projects, and the remaining projects will be offered to local firms
to be carried in order to expand solar energy projects.
He said that the total cost of the 4 stations is estimated at EGP 1.5mn to be covered through self-financing by EETC
as part of ministry of electricity’s plan to light the buildings of distribution and production and transmission
companies using solar energy.
SOLARIZE IMPLEMENTS 35 SOLAR POWER PROJECTS
Source: AlMal 22 February 2016
Solarize Egypt carried out more than 35 solar power project on the top of houses in last January, according to the
CEO of Solarize Yaseen Abdel Ghaffar.
He told Al Mal newspaper that the capacities of the projects totaled 500 KW at a cost of EGP 5mn.
The projects implemented by Solarize will be part of unified tariff energy projects, through which consumer shall
link his station with the national grid and supply generated power to it, then the ministry of electricity will buy
power for EGP 0.84 per KW, the senior executive said.
Solarize Egypt was founded in 2013 and implemented several projects that qualify it to compete for solar power
projects in the future, Abdel Ghaffar said, adding that his firm has qualified within American- Chinese- Egyptian
alliance to build a solar power plant with investments of EGP 75mn.
On the other hand, according to sources, the tripartite alliance has completed issuance of letter of credit worth EGP
10mn in favor of the ministry of electricity in return for the participation of Solarize in unified tariff energy projects
and linking the firm with the national grid.
TAQA ARABIA TO BORROW USD 55MN TO UNDERTAKE SOLAR POWER VENTURE
Source: AlMal 22 February 2016
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 28
Taqa Arabia is involved in negotiations with 4 global and local funders to provide financing worth USD 55mn,
representing 75% of the cost of building a solar power plant project, according to an official at Taqa.
In statements to Al Mal newspaper, the official said that his firm is currently conducting negotiations with the
International Finance Corporation (IFC) of the World Bank, the European Bank for Reconstruction and Development
(EBRD), the OPEC Fund for International Development (OFID) and the National Bank of Egypt (NBE).
Taqa Arabia is scheduled to carry out the project and sell the generated power to the national grid for 25 years.
The firm has received power purchase agreement sent by the renewable energy agency, one of the requirements of
obtaining financing to ensure purchasing electricity by the government, he added, giving no further details about
the conditions of receiving loans, given the fact that the firm is still opening negotiations.
In statements to Al Mal newspaper, the managing director of Taqa Arabia Pakinam Kafafy said that her company
received a land plot of 1 sq. km and entered into negotiations with international financial institutions to secure
financing worth USD 75mn for the project.
TOURISM
RTVC TO INVEST EGP 4BN IN ITS STELLA DI MARE II PROJECT SALES OF THE PROJECTS ARE
ESTIMATED TO AMOUNT TO EGP 5BN
Source: Daily News Egypt February 15, 2016
Remco Touristic Villages Construction Company (RTVC) will begin implementing its new project, Stell Di Mare II,
over 2m sqm with total investments worth EGP 4bn.
The real estate company has several touristic and residential projects in Cairo, the North Coast and Sharm El-
Sheikh.
The company anticipated sales of EGP 5bn from the projects. The project is located in Ain Sokhna, on the 45th km
of Al-Zafarana Road/ Suez Road, close to Stella Di Mare I. The timeframe for finalising the project is three years.
RTVS registered a 109.7% increase in losses during the first three quarters of the current fiscal year (FY) in its
consolidated financial statements compared to the same period last year. The construction company’s losses
totaled EGP 47m during this period compared to EGP 22.4m in the first three quarters of fiscal year (FY) 2014/2015.
The construction of new projects for medium- and high-income clients has taken the lion’s share of both public and
private companies and investments over the past two years.
Palm Hills Development (PHD) and Madinet Nasr Housing and Development (MNHD) signed an agreement to
develop a residential community in East Cairo. PHD also agreed to cooperate with Reacap Financial Investments
(REACAP), a subsidiary of Smart Village Real Estate Investment Company (SVREICO), to develop a residential and
commercial area in 6 October City’s Smart Village.
In September, Sixth of October for Development and Investment Company (SODIC) won a bid of 31 acres of land in
6 October City. The company plans to establish a residential project on the area.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 29
TOURISM MINISTRY TO SIGN QUARTET PROTOCOL TO SUPPORT TRIPS TO THREE NEW
MARKETS
Source: Daily News Egypt February 14, 2016
The Ministry of Tourism will sign a quartet protocol with the Ministry of Civil Aviation, the Private Aviation
Association, and the tourism private sector in the next few days to support the direction of trips to three new
markets.
Senior tourist sources said the Ministry of Tourism plans to support trips organized by private aviation companies to
the new markets that Egypt Air does not support. This is in the framework of a joint action strategy with the
Ministry of Aviation and the Association of Private Aviation as well as private sector tourist companies.
The ministry requested private tourism companies implement market studies on three markets and then, as per the
experience evaluation, there will be an expansion to two more markets later on. The initial three suggested markets
are North Africa, Central Asia, and Eastern Europe.
The sources expected that flights and trips will commence before June. “The plan aims to keep Egypt on the world
tourism map in light of the recent warnings by some countries, as well as supporting Egyptian national companies,
and market diversification,” the source said.
The UK and Russia both suspended trips to Egypt on 1 November due to the Russian plane crash on 31 October
2015. The ban led the Ministry of Tourism to develop an action for greater presence in new markets as well as
traditional markets, whether in Europe, Asia, or Africa.
Tourism income to Egypt declined to $6.1bn in 2015 from $7.3bn in 2014.
“The goal of the protocol is to coordinate the four parties to serve Egyptian tourism and increase the flow to new
markets,” Head of Business Aviation Association Yousry Abdel Wahab told Daily News Egypt exclusively. “The
protocol includes all private airlines that are effectively operating and have between 30 and 35 aircraft as well as
governmental aviation companies will fly to these markets based on the marketing studies.”
He said Egyptian private airlines will implement the program when prices amount to €400 per seat. Private aviation
is waiting to obtain permission from the Civil Aviation Authority to allow these companies to organize trips to the
new markets.
ASWAN’S VALENTINE HOTEL COMPLETES EGP 220M RENOVATION, ADDING 203 ROOMS
Source: Daily News Egypt February 14, 2016
Minister of Investment Ashraf Salman presided over the reopening of the Valentine Island Hotel in Aswan on Friday
after the completion of a renovation project that cost EGP 220m and was carried out by Egyptian General Company
for Tourism, and Hotels (EGOTH), according to head of Holding Company for Tourism, Hotels, and Cinema (HOTAC)
Mervat Hataba.
Salman said the new hotel, managed by international Mövenpick Hotels and Resorts, will support tourism in Aswan
and raise the profits of EGOTH significantly.
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 30
Hataba said the renovation works started in 1994 but were subsequently suspended; HOTAC and EGOTH
recommenced the project at a later date. A total of 203 new rooms and suites were built on four floors, bringing
the total number of HOTAC’s hotel rooms to 5,245 in all Egyptian governorates.
Governor of Aswan Magdy Hegazy said the governorate has 32 hotels and tourism villages and the new hotel is
located in a special area and will support tourism in the governorate.
Salman said the portfolio of public sector companies achieved gross profits of EGP 600m in the fiscal year (FY)
2013/2014 compared to EGP 1.9bn in FY 2014/2015. The first half of FY 2015/2016 shows that public sector
companies achieved gross profits of EGP 2bn out of a total of EGP 4bn target by the end of the current fiscal year.
The ministry will continue developing public sector companies’ hotels across the country.
“Holding companies affiliated to the ministry would be able to achieve high growth rates if their capabilities were
exploited well,” Salman said. The ministry will provide successful experiences in partnership between the public and
private sectors to overcome bureaucracy obstacles.
POLITICS
SISI ANNOUNCES LEGISLATIVE POWER TRANSFER TO PARLIAMENT
Source: AlMal 13 February 2016
President Abdel Fattah Sisi declared, at the beginning of his speech at the House of Representatives on Saturday,
that legislative power shifts to parliament.
Sisi called on MPs, at the beginning, for a minute of silence in appreciation to the police and army martyrs.
He said that the Egyptian state is facing a surge wave of terrorism, to spread chaos and ruin.
He stressed that military as well as police men are paying their blood and spirit in order to preserve the nation’s
sanctities.
He continued: "With the national will and the people’s steadfastness, we were able to break terrorist organizations
thorn in the valley, Sinai, and on the western border. We are continuing the battle relentlessly, facing the black
terrorism, and we aim to build a modern democratic state."
He added:” Dab’a nuclear plant establishment was signed and will take effect within weeks, as well as the Suez
Canal projects.”
He stated that the reclamation of a million and a half acres, implementation of projects that support sustainable
development, and creation of one million jobs, weighed on five million citizens, pointing out that these projects
need more time to bear fruit.
TRADE FAIRS AND EVENTS IN EGYPT 2016
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 31
Event Description Schedule Venue
Plastex
Trade fair for plastics
technology
14-17 January Cairo International
Convention Centre
(CICC)
Lifetech Expo
International Trade fair for
Elevators & Escalators,
technologies and
Accessories
21-24 January Cairo International
Convention Centre
(CICC)
Egypt Transport Infrastructure
Summit
2nd Annual Summit in Cairo
- Meet the transport
stakeholders responsible for
overseeing Egypt’s most
ambitious infrastructure
projects
26.01.2016 IQPC - International
Quality & Productivity
Centre| Cairo |
Digi Sign Africa
Advertising technology 28-31 January Cairo International
Convention Centre
(CICC)
Underground Infrastructure and
Deep Foundations
Laying the foundations for
Egypt’s future
02.02.2016 IQPC - International
Quality & Productivity
Centre| Cairo |
Egypt Downstream Summit and
Exhibition
The summit is bringing
together key Egyptian
stakeholders with
international downstream
technology and service
providers
15.02.2016 Fairmont Heliopolis &
Towers, Cairo
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 32
Event Description Schedule Venue
Egypt Energy Investment Summit
Explore the opportunity in
Egypt’s energy and power
sectors, with a focus on
private sector development
and investment realization
16.02.2016 Intercontinental Hotel
Windoorex + Glass & Aluminium
Middle East 2016
The 7th International
Exhibition for Glass,
Aluminum, Windows, Doors,
Skylights and Curtain Wall
Technology, Components
and Prefabricated Units
18.02.2016 Cairo International
Convention Centre
(CICC)
Cement and Concrete Middle East
Second International
Exhibition for Cement,
Concrete & their supported
industries in Egypt.
18.02.2016 Cairo International
Convention Centre
(CICC)
Fabex Metal and Steel Middle
East
Steel structures and metal
forming
18-20 February Cairo International
Convention Centre
(CICC)
Grain Tech Middle East
Fodders Equipment and Rice
Beaters
23-25 February International Fair
Ground - Hall 19 -
Cairo – Egypt
German-Egyptian Business Forum
With site visits in Egypt.
Cairo | Ismailiya |
Alexandria.
29.02.2016 German-Arab
Chamber of Industry
and Commerce (GACIC
- AHK)
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 33
Event Description Schedule Venue
57th Cairo Fashion & Tex
The International Fashion,
Apparel & Textile Exhibition
03.03.2016 Cairo International
Convention Centre
(CICC)
Forth International Conference in
Nanotechnology, Biotechnology
and Spectroscopy ICNBS Egypt
2016
The conference will take
place over 3 days, and will
be divided into sections
that allow focusing on the
conference topics
04.03.2016 | 6th of October |
Naqaa Foundation for
Scientific Research,
Technology and
Development
Microfinance Egypt 2016
Strengthening Egypt’s
Economy through the
provision of microfinance
to the countries
entrepreneurs and MSMEs
21.03.2016 The Nile Ritz-Carlton
Cairo
2nd
Future Rail and Metro
Creating a platform to
increase multimodality and
examine projects and
technologies to maximise
capacity safely and
efficiently
29.03.2016 IQPC - International
Quality & Productivity
Centre
Cairo, Egypt
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 34
Event Description Schedule Venue
SDEC(Sustainable Developments
Exhibition & Conference) 2016 –
Cairo
SDEC the Region's Leading
Sustainable Developments
Event >> www.sdec-
mea.com
04.04.2016 Fairmont Towers
Heliopolis
Pharmaconex 2016
Industrial Pharmaceutical
event in North Africa and
Middle East.
05.04.2016 Cairo International
Convention Centre
(CICC)
International Conference on
Agricultural Biotechnology
Applications
to address new challenges
and emerging researches in
the multidisciplinary arena
of Biotechnology and Life
Sciences.
05.04.2016 Sharm El Sheikh
Faculty of agriculture,
Cairo university
CityScape Egypt
Real Estate, investment and
development
07-10 April Cairo International
Convention Centre
(CICC)
Cafex
Specialized Fair for Café &
Restaurant Equipment,
Supplies, Furnishing and
services
13-16 April Cairo International
Convention Centre
(CICC)
Mediconex
Mediconex Cairo Health is
the number one medical
event that links science,
technology, and business all
in one place at one time.
19-21 April Cairo International
Convention Centre
(CICC)
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 35
Event Description Schedule Venue
MOC 2016
Mediterranean Offshore
Conference & Exhibition has
become through the years
the most important
international meeting
focusing on oil, gas and
energy.
19-21.04.2016 Bibliotheca Alexandina
Conference Center
| IES International
Exhibition Services
EgyMedica
Medical 05-07 May Cairo International
Convention Centre
(CICC)
Food Africa
The International Trade
Exhibition for Food and
Beverages Serving Egypt &
the African Markets
04-07 May 2016 Cairo International
Conference Center
CICC
Afro Packaging & Food 2016
5th International Exhibition
for Packaging & Food
Processing technology
26-29 May Cairo International
Conference Center
CICC
eLearning Africa
International conference on
ICT for development,
education and training.
24-26 May Cairo International
Convention Centre
(CICC)
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 36
Event Description Schedule Venue
Sahara
Agro-food industry 24-27 September Cairo International
Convention Centre
(CICC)
Cairo Energy 2016
International Exhibition &
Conference for Oil, Gas &
Energy
02.10.2016 Cairo International
Convention Centre
(CICC)
Pharos 2016
The International Exhibtion
& Conference for Logistics,
Ports & Shipping
02.10.2016 Cairo International
Convention Centre
(CICC)
Paper Middle East
Paper, board and converting
industry
22-24 October 2016 Cairo International
Convention Centre
(CICC)
MS Africa & Middle East
Building machinery and
stone design
10-13 October 2016
Cairo International
Convention Centre
(CICC)
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 37
Event Description Schedule Venue
Handling Expo
Material Handling and
storage equipment
17-20 November
2016
Cairo International
Convention Centre
(CICC)
MACTECH
Machinery tools, industrial
tools, welding and cutting
equipment
17-20 November
2016
Cairo International
Convention Centre
(CICC)
Transpo-Tech
Commercial Vehicles and
spare parts
17-20 November
2016
Cairo International
Convention Centre
(CICC)
Airtech
Compressed Air Technology
and Accessories
17-20 November
2016
Cairo International
Convention Centre
(CICC)
Mefsec
Safety Equipment 10-13 December
2016
Cairo International
Convention Centre
(CICC)
Electrix
Energy and Electrical
Engineering
4-6 December 2016
Cairo International
Convention Centre
(CICC)
Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–February 2016 Page 38
Event Description Schedule Venue
Cairo ICT
ICT 27-30 November
2016
Cairo International
Convention Centre
(CICC)