EGYPT- U.S. TALKS ON COOPERATION IN ICT Source: MCIT Press Release, June 20; Egypt SIS, June 23 & 25, 2006; & AMEInfo, June 24, 2006
The second official visit of H.E. Dr. Tarek Kamel, Minister of Communications and Information Technology to the U.S. kicked off on Monday June 19, 2006 in Washington D.C. and moved to New York later in the week. The visit is intended to foster relationships between the Egyptian IT private sector and key US industry associations, government entities, and commercial entities that could potentially partner with Egyptian companies.
The Egyptian Minister intends to present business contracting opportunities and partnerships for American companies who are interested in doing business in Egypt. In addition, the visit is to promote investment opportunities to key U.S. investors that could potentially partner with Egyptian companies. Xceed (AmCham Member) (link here) and other Egyptian technology leaders were present in support as well as to highlight the Egyptian government's support of Egypt's ICT sector and its capabilities.
On Monday June 19th, the Northern Virginia Technology Council (NVTC) (link here) held a reception for Dr. Kamel, at the Hilton Mclean Hotel Tysons Corner. The Minister met with 200 members of the NVTC as well as Egyptian and foreign businessmen, presenting to them the latest political and economic reforms that have prevailed in Egypt as well as the development strategy being adopted by the state in different fields. The minister proudly gave an overview of the leap the communications sector has undertaken over the last few years and the strategic initiatives that the government has enforced to introduce CIT in schools and Egyptian universities in addition to spreading the use of high-speed Internet services. Dr. Kamel also touched upon the cooperation with international associations in the field of research and development and technology management.
During the visit, three cooperation agreements were signed between the World Bank, the National Postal Authority (NPA) (link here), the ITIDA, and Ministry of Communications and Information Technology (MCIT). NPA Chairman, Alaa Fahmy signed a cooperation agreement with the World Bank to develop postal services, restructure the NPA, and focus on the development of its human resources capacity. ITIDA Chairman, Engineer Mohamed Omran signed an agreement to spread the use of e-signatures, protect intellectual property rights, and increase Information Technology exports. MCIT Policy Adviser, Engineer Amr Hashim, signed an agreement to develop and liberalize communications services.
In New York, The American Chamber of Commerce in Egypt (link here) hosted a Special Luncheon on Thursday, June 22, at the St. Regis Hotel where Dr. Kamel presented his speech titled "Investment in Egypt: The IT & Telecom Sector as a Model"
USAID CHIEF ADDRESSES US-ARAB ECONOMIC FORUM Source: BI-ME: June 27, 2006
The Director of US Foreign Assistance and Administrator for the US Agency for International Development (USAID) (link here), Ambassador Randall Tobias addressed the US-Arab Economic Forum (link here) in Houston, US.
Tobias discussed the importance of partnerships, not only between the US and the Middle East, but between the public and private sectors. "The US government is committed not only to supporting partnership, but to creating the opportunities that lead to it," Ambassador Tobias said. "Since its inception, the Global Development Alliance has provided over US$1.4 billion to fund approximately 400 public-private alliances worldwide, leveraged over US$4.6 billion in committed partner contributions and engaged over 1000 alliance partners."
The Forum is being sponsored by corporations such as Exxon Mobil (link here) and Shell (link here), and Arab countries, including Saudi Arabia and Qatar. The US Department of Commerce (link here), the US State Department (link here) and the Arab League (link here), an umbrella group of Arab countries, are also partners.
"The results of one partnership between Citibank (link here), Exxon Mobil (link here), Junior Achievement (link here), and the U.S. government are nothing short of remarkable," Ambassador Tobias said, highlighting the direct benefits of partnerships in Arab nations.
Under this program, some 900 Jordanians currently teach over 40,000 university students; 4,000 students are mentored each year in Egypt and Lebanon; over 1,000 students were mentored in Bahrain since late 2004; 160,000 youth to be reached by 2008 and 1 million by 2015, he added.
BOOM IN U.S. TOURISM Source: PR Newswire, June 20, 2006
Americans continue to visit Egypt in numbers not seen since record-setting 2000, according to new statistics released by the Egyptian Tourist Authority (ETA). The trend continued in May 2006 when 18,935 Americans visited Egypt, a 16.3 percent increase over the same period in 2005.
Egypt has continued to experience double-digit growth, over 2005, from American tourists, the Egyptian Tourism Authority reported today. In 2006, 98,388 Americans have visited Egypt, an extraordinary increase of 20.9 percent over last year's 81,398 for the same period.
Egypt is in the midst of a tourism boom with developers busy planning major resorts along the stunning Mediterranean and Red Sea coastlines. The North coast is now firmly on the tourism radar following the opening of Al Alamein International Airport.
The first of five hotels at the Almaza Beach Resort (link here) - to be developed by the Travco Group (AmCham Member) (link here), an Egyptian travel leisure group, and Germany's TUI AG (link here)- was recently inaugurated. The three-million-square-meter project will ultimately contain 2,300 guest rooms and 1,000 residential and tourist villas on completion.
A tennis academy, shopping mall, golf course, spa, horseback riding tracks and movie theatre are also on the drawing board.
Ayden Nour, who is responsible for the North and South American markets of the Egyptian Tourist Authority, said, "We continue to see great growth from the United States as Americans rediscover the wonders of Egypt, from the Great Sphinx to the spectacular beaches in Sharm El-Sheikh."
GARMENT EXPORTS TO U.S. WORTH $183 MILLION Source: SIS, June 24, 2006
Egypt ranked 25th on the list of countries exporting ready-made clothes to US market in the first quarter of the current fiscal year. Egypt's ready-to-wear exports to US amounted to US$ 183 million.
The Ministry of Trade and Industry (link here) pointed out that the exports of the qualified industrial zones (QIZ) reached US$ 122.5 million, representing 67% of total ready-made clothes exports to US.
CBP, NNSA & EGYPT AGREE TO JOINT NUCLEAR SMUGGLING PREVENTION EFFORT Source: PR Newswire US, June 22, 2006
The United States signed a Declaration of Principles today with the government of Egypt to help thwart smuggling of nuclear and other radioactive material.
The declaration was cosigned by U.S. Customs and Border Protection (CBP) (link here) and the Department of Energy's National Nuclear Security Administration (NNSA) (link here). The document covers implementation of CBP's Container Security Initiative and NNSA's Megaports Initiative, as both programs continue working together to stop nuclear material from being smuggled to U.S. ports. Three other joint DOE-CBP declarations of principles have been signed with the Sultanate of Oman, and the governments of Honduras and Jamaica.
CSI is operational in 44 ports in North America, Europe, Asia, Africa, the Middle East, and North, South, and Central America. Approximately 75 percent of cargo containers headed to the U.S. now originate in or are transshipped from CSI ports.
STAMP DUTY SLASHED Source: Ahram Weekly, June 15-21
The Financial and Economic Committee of the Shoura Council (link here) last week approved a proposal to modify some articles of the stamp duty law issued in 1980.
The reform aims at simplifying procedures, as well as reducing by half the stamp duty tax rate which is imposed on some products and services.
A rate of 15% instead of 36% will be imposed on advertisements that are published on television, in cinemas and in the printed press. Advertisements that are broadcast on the radio will be charged 15% instead of 24%. A new 15% stamp duty tax will be imposed on billboard ads.
A one percent tax instead of 3% will also be imposed on life insurance premiums, while insurance policies on maritime, land and air transportation will be reduced to 10%, instead of the current 15%.
A 0.001 instead of 0.01 tax will be imposed on credit accounts and loans, as a means of encouraging the private sector.
It has also been agreed that disputes with the Tax Authority that do not exceed LE5,000 will be automatically dismissed so as to reduce collection costs.
A study is being conducted by the Ministry of Finance in order to underline the current as well as expected revenues which will be accrued from the stamp duty tax, as a result of the latest amendments to the law.
WORLD BANK APPROVES FIRST DEVELOPMENT POLICY LOAN TO SUPPORT FINANCIAL REFORMS Source: The World Bank, Washington, June 15, 2006
The World Bank (link here) Board of Executive Directors approved the First Development Policy Loan for Egypt in the amount of $500 million on June 15, 2006.
Development policy lending will be at the center of the World Bank assistance to the Egypt Financial Sector Reform Program (2005- 2008) with its focus on key policy and institutional reforms. The main development objective of the government’s program, and of the proposed World Bank operation, is to build a more resilient and competitive financial sector with a sound banking system and insurance industry that could contribute better, in the medium-term, to the provision of modern and effective financial services.
The Development Policy Loan (DPL) is the first in a package of assistance that is designed to help the government translate its objectives into a sequenced and prioritized program of actions. The Word Bank loan seeks to integrate government and donor activities under three broad themes to improve Egypt’s macroeconomic stability: (a) reforming the banking system (b) reforming the contractual savings system (c) strengthening capital markets and mortgage finance.
Egypt's “Financial Sector Reform Program” that is supported by the World Bank loan represents the most far-reaching, substantive and comprehensive drive towards financial sector strengthening to have been launched so far in the country – and elsewhere across the MENA region.
The World Bank DPL will be used to implement, and help fund the costs of the first phase of the reform. Egypt will receive additional assistance to the financial reforms program from the USA, EU, the African Development Bank; all of which will be coordinated by the World Bank.
The Bank's Country Assistance Strategy (2006-09) for Egypt aims at supporting the government in achieving higher growth rates and contributing to poverty reduction. The country's economic reform and development agenda offers an opportunity for the World Bank and other development partners to make focused and targeted interventions to support Egypt's efforts through an integrated package of financial and technical assistance, drawing on global experience.
INDUSTRY & BANKS ALLY FOR ESTABLISHING 1000 FACTORIES Source: Al Ahram, June 21, 2006
In an important step in which efforts of the state and private sector will be combined together for implementing President Mubarak's electoral platform for building 1000 new factories, the sectors of industry and banks agreed on a five-year joint plan in which the latter will be committed to providing LE75 billion for building the new factories and financing potential expansions of the existing factories.
Shafik Baghdadi, Deputy Chairman of the Federation of Egyptian Industries told "Al Ahram" that the agreement takes the form of an alliance between the Federation of Egyptian industries (link here) and the Industrial Modernization Centre (link here), adding that the details of the agreement will be announced next Tuesday June 27 at a seminar sponsored by heads of federations of industries, banks, chambers of industry and senior producers. A cooperation protocol will be signed during the seminar for facilitating the financing needed for establishing these factories.
In the Meantime, Prime Minister Dr. Ahmed Nazif received ministerial reports on the projects which have already been carried of the presidential electoral platform and the projects which will be carried out in the new FY 2006/2007.
Cabinet spokesman Dr. Magdy Radi said industrial policy aims to upgrading Egypt's competitiveness in world markets, providing the climate necessary for encouraging industry in Upper Egypt and Sinai, adding new potentials to SMEs and encouraging investors to inject investments in new projects.
Radi added that government has decided to provide 10 million square meter annually supplied with infrastructures for building industrial projects with export capacity.
The government, he said, will also upgrade 79 industrial zones existing in different parts of Egypt and construct 1700 small factories in a period of 18 months at aggregate costs ranging from LE 50,000 to LE1 million. Radi said the government has decided to provide LE 1.5 billion for upgrading utilities in the new urban communities.
BIRD FLU HITS CPI Source: EIU Country Briefing, June 26, 2006
Egypt’s annual rate of inflation jumped in May, according to the statistics office, CAPMAS. Inflation increased by 5.4% year on year compared with a 4.4% gain in April.
Communication costs rose the most, by 19.9% year on year for the second consecutive month in May. However, the cost of food and non-alcoholic beverages, which has a larger weighting in the consumer price index, was the main driver of inflation, rising by 7.7% compared with a 5.7% increase in April.
Food prices have risen since March because a severe case of avian influenza (bird flu) has led to an increase in prices of non-poultry protein. Beyond that, buoyant economic growth is starting to have an effect on prices in Egypt. We have been concerned about strong underlying inflationary pressures for some time now, and these are finally coming through into the headline inflation figures. Liquidity continues to expand rapidly, rising by 22% year on year in April. The central bank’s decision to cut rates for the second time this year on April 6th may have also contributed to the large upswing in consumer price inflation in May.
Looking ahead, the strengthening of domestic demand, which has been stimulated by large cuts in income tax rates, is likely to drive an increase in average consumer price inflation in 2006 to 5.1%. However, inflation should be generally constrained by the stability of the Egyptian pound against the US dollar (and other major currencies), although this may be partially offset by a 20.9% rise in average world non-oil commodity prices. In addition, the overhaul of the monetary framework should permit more effective control of liquidity. These factors should allow the authorities to bring down the average rate of inflation to 4.3% in 2007.
NEW MEDITERRANEAN PROJECTS AND RESORTS Source: Egypt SIS, Sunday, June 18, 2006
UAE property developing giant Emaar (link here) has one eye firmly fixed on northern Egypt's tourism potential. Group subsidiary Emaar Misr for Development S.A.E and Artoc Group for Investment and Development (AmCham Member) (link here) have signed a MoU with Egypt's Bibliotheca Alexandrina (link here) for a major waterfront redevelopment project.
The redevelopment will provide a spectrum of facilities on Kouta Land on the west of the library and provide another dimension to the already-popular historic old east harbor area.
The project is envisaged to be part of a broader vision that will contain four and five-star hotels and include conference, exhibition and retail facilities, office spaces, residential buildings, an aquarium, museums and cultural buildings.
Alexandria's tourism profile will also be bolstered by the planned development of the San Stefano complex, which is earmarked to have a Four Seasons hotel.
Further west, Porto Marina, the first international class marina on Egypt's Mediterranean coast, will be able to accommodate jet skis, 100-metre yachts and boast a 1,000-berth marina on completion.
The marina will provide not only all the expected facilities for yachts, but will also offer a first class yacht club and a wide range of shore facilities all within walking distance. These include a shopping mall, 10 restaurants, a cinema complex, five- star hotel, golf course, horse riding, swimming pools and desert excursions.
HOTEL NEAR CAIRO AIRPORT TO BE CONSTRUCTED Source: ANSAmed, JUNE 26, 2006
The Egyptian Ministry of Civil Aviation will build an international hotel near the Cairo airport for a cost of some $40 million. In a few weeks' time, work will be under way. The hotel will help with tourism and transit movements, said Ibrahim Manaà, head of the Holding Company for Airports and Air Navigation. He added that an international company would be in charge of operating the hotel, which is designed to include some 350 rooms.
A bridge will be built between the hotel and the passenger terminal 3, Manaà noted. Designs of two new airport buildings in Hurghada and Borg el-Arab will be finalised in November, reports Egyptian media. The Hurghada terminal costs some USD 213 million, USD 116 million of which comes from the Kuwaiti development fund. The capacity of the airport will increase to 7.5 million passengers. The sum of USD 121 million will go into the new building in Borg el-Arab airport, in Alexandria, including a USD 53 million loan from the Japan Bank for International Cooperation (JBIC) (link here). The new terminal will cater for an extra 1.2 million passengers annually.
KHARAFI ANNOUNCES MAJOR EXPANSION OF MARSA ALAM INTERNATIONAL AIRPORT Source: Daily Star Egypt, June 21, 2006
The M.A. Kharafi Group of Kuwait (AmCham Member), the developer, financier and concessionaire of the Marsa Alam International Airport (MAI), the international gateway airport to Egypt’s South Red Sea Marsa Alam Coast, has announced that they are undertaking a major expansion of the airport that will double the terminal size, increase the runway length to handle larger aircraft and increase the taxiway and ramp areas to significantly increase aircraft parking space.
James Pringle, chief executive director for the Group’s Marsa Alam Area Developments, announced the airport expansion program yesterday, noting that “this expansion was originally envisioned in our business plan to be undertaken in 2011. Owing to the rapid growth of resort development at Port Ghalib (link here) and the wider Marsa Alam area, airport traffic from Europe has grown far faster than envisioned for this green-field site airport, necessitating a major expansion program well ahead of plan.”
Pringle further explained that “all of this development means that traffic demand on Marsa Alam International Airport has been on a steep upward rise since the airport opened in late 2001. By the end of 2002 our passenger traffic was at the 145,000 mark; all European. By the end of 2005 this had grown to 435,000 passengers handled and in 2006 we are on track to achieving 480,000. The challenge we face as an airport is that much of this traffic is centered on the weekends when European holidays commence and end.
MAI’s present planned operating capacity is to handle about 600 passengers per hour although over 1,000 per hour has safely, securely and consistently been achieved during peak hours on the airport’s busiest days. With the expansion the airport will be able to handle nearly 2,000 passengers per hour plus it will have expanded food, beverage and shopping facilities that will keep Marsa Alam up to solid international standards for passenger comfort, service and entertainment.
“Our expansion program will also add runway length, allowing us to handle the larger aircraft that we see coming and increase the number of aircraft parking stands from 5 to 10 in order to meet a growing demand from airlines and private aircraft owners for longer term parking facilities” added Pringle.
The Marsa Alam International Airport expansion program is being managed by EMAK Marsa Alam for Management and Operation of Airports, a wholly owned subsidiary of the M.A. Kharafi Group. The expansion is expected to be completed by 4th quarter 2007.
BATELCO SIGNS GPRS ROAMING AGREEMENT WITH MOBINIL EGYPT Source: Middle East Company News Wire, June 22, 2006
Bahrain Telecommunications Company (Batelco) (link here) has announced a new bi-lateral commercial GPRS roaming service with the Egyptian Company for Mobile Services (MobiNil) (AmCham Member) (link here) in Egypt, which is great news for the huge number of Bahrain's residents who visit this important business and tourist destination annually.
The new service which was launched earlier this month gives Batelco Mobile users better than ever coverage whilst roaming in Egypt. The bi-lateral agreement enables Batelco's post-paid mobile customers who have GPRS / MMS enabled handsets to exchange pictures and video clips with colleagues, family and friends and also access the internet directly from their mobiles while roaming in Egypt. 'This convenient new service will allow tourists to share the excitement of their vacation with their family and friends at home and give business travelers greater access to their offices,' said Batelco Corporate Affairs General Manager Ahmed Al Janahi. 'Batelco continually looks at ways to add extra benefits for their customers and this new bi-lateral agreement fits perfectly with this policy.'
CA LAUNCHES DIRECT PRESENCE IN EGYPT Source: Middle East Company News Wire, June 20, 2006
CA (link here), one of the world's largest IT management software companies today announced the launch of its direct presence in Egypt with a partner showcase for its protection software solutions at the Cairo Marriott Hotel (link here).
The event focused on the latest CA Protection Suites r2.0 for SMB customers, providing channel partners with interactive demonstrations on the suite's functionality and key benefits.
CA also unveiled its corporate Integrated Threat Management r8 (ITMr8) security solution, which provides comprehensive and scalable protection against viruses, malware, spyware, rootkits, blended threats, and other forms of malicious code.
The Protection Suites r2.0 is a fully backup, antivirus, antispyware, and desktop migrator integrated solution with a 'single install' and a 'single console' for the server as well as the desktop. This removes the complications resulting from the installation of multiple software applications. CA's ITMr8 security solution works by unifying new versions of CA eTrust PestPatrol Anti-Spyware Corporate Edition and CA eTrust Antivirus through a centralized web-based console allowing administrators to resolve threats from anywhere on the network. Moreover it also allows a single administrator to manage an entire network supporting thousands of users thereby reducing operational costs and fully safeguarding critical systems.
XCEED CONTACT CENTER WINS THE OUTSOURCING SERVICE PROVIDER (OSP) OF THE YEAR AWARD Source: Arab Emirates, June 20, 2006
The Middle East Contact Centre World 2006 Forum Award's Gala Dinner was held on June 11th at the Fairmont Hotel in Dubai, announcing the winner of the Call Centre Outsourcing Service Provider (OSP) of the Year.
This award went to Xceed Contact Center (AmCham Member) (link here), located in Cairo Egypt. The award was presented at a special gala dinner that forms part of this year's Middle East Contact Centre World 2006 Forum from June 10 - 13.
EVOLVING SYSTEMS DELIVERS IMS SUPPORT AT VODAFONE EGYPT Source: BI-ME, June20, 2006
Evolving Systems (link here), a leading provider of software solutions and services to the wireless, wireline and IP carrier markets, this week announced that Vodafone Egypt (AmCham Member) (link here) has deployed the company's Tertio Content Connector solution.
Tertio Content Connector, a solution introduced by Evolving Systems in July 2005, increases an operator's ability to provision content services. The product is a modular extension to Evolving Systems' Tertio Service Activation solution that reduces a carrier's time-to-market for launching new content services and allows the configuration of new system interfaces with no software coding.
Tertio Content Connector will support Vodafone Egypt's continuing rollout of new data and content services. The initial phase supports push-to-talk services.
RAYA ACADEMY BECOMES FIRST ACCREDITED INTEL TRAINING CENTER IN MIDDLE EAST Source: BI-ME, June 20, 2006
In light of its outstanding record in offering advanced IT training programs, the Raya Academy (link here) in Cairo was selected by Intel (AmCham Member) (link here), the world’s largest chipmaker and a leading manufacturer of computer, networking and communications products, as the first Intel accredited partner in offering software training programs in the Middle East.
Following this agreement, Raya Academy will provide five advanced training packages that aim at developing the IT skills of Intel programmers and help them to derive maximum benefit from Intel’s software programs. These courses adopt tested methods to help enhance trainees’ efficiency and their ability to solve technical problems. The technical training provided create an environment where trainees can test all advanced features of Intel systems.
GOOGLE LAUNCHES ARABIC VERSION OF WEB SERVICES AND SETS A REGIONAL OFFICE IN EGYPT Source: Financial Times, June 23, 2006
Google (link here) is looking to expand in the Middle East and North Africa to capitalize on the region's fast-growing online population.
The search company is hiring staff, setting up offices and releasing Arabic versions of its products to encourage the spread of the internet in the Arab world.
The launch of an Arabic- language version of Google News was heralded as giving Arab media their first unified platform on the internet. In the last four weeks Google has also launched an Arabic e-mail service and English/Arabic translation tool.
Although governments could block access to pornographic websites, for example, the Google search results in the Middle East and Africa would be unadulterated, whereas in China these are filtered.
Sherif Iskander, Google's Cairo representative, said there were 23m internet users in the Arab world, a number that was growing fast. Of Dollars 5bn were spent on advertising last year in the region
MSN (link here), the Microsoft portal that is one of Google's main competitors, said it was also intending to launch an Arabic e-mail product this year.
BHARTI TELESOFT POWERS ANY-AMOUNT e-RECHARGE FOR MOBINIL EGYPT Source: AME Info, June 26, 2006
Bharti Telesoft (link here), the leading global supplier of core Value Added Services (VAS) platforms for wireless and wireline carriers, has successfully deployed PreTUPS, an open, standards-based prepaid service delivery platform, at Mobinil (AmCham Member) (link here), the leading GSM operator in Egypt with over 8 million customers.
The product was successfully implemented against a stringent time-line, budget and functionality objectives, following which Mobinil is able to extend the convenience of anytime, any amount top-up to its prepaid customer base. Branded eRecharge, the service allows prepaid users to electronically purchase and receive airtime credit from a top-up agent or other mobile users, for instance, friends, and family. The transferring agent merely types the amount, security PIN and a destination number and sends it to the electronic recharge system. Both the user and the subscriber receive a confirmatory SMS on successful completion of the transaction.
FENOSA INVESTS $1.5 BILLION IN EGYPT LNG Source: Egyptian Investment Portal, June 20, 2006 and Marketwatch, June 20, 2006
Eni SpA (link here) and Union Fenosa SA (link here), partners in a liquefied natural gas plant on Egypt's Mediterranean coast, will spend $1.5 billion to add a second production line and increase sales of the fuel to the U.S. and Europe.
Segas, a joint venture between Union Fenosa, Italy's Eni SpA, state company International Egyptian Oil Company (IEOC), and Egyptian state gas company Egyptian Natural Gas Holding Company (EGAS), will have a 58.75% share in the second train.
Fenosa's gas-provisioning business is key to Fenosa's operations. The company fixed its contracts for both trains in Damietta indexed to $25 a barrel of oil.
“Eni's strategy in LNG is to grow significantly in the next four years, reaching 13 billion cubic meters,'' Scaroni said in an interview in Cairo. “The new venture in Damietta is a major step in that direction and allows us to reach the goals we've announced to the market.'' Eni also agreed on a new gas exploration concession with the Egyptian government.
European energy companies are seeking to diversify their sources for gas to help guarantee supply and prices as demand rises. That may help placate concern that Europe is too dependent on Russia, the world's largest supplier of the fuel.
The gas for the Damietta LNG facility will come from offshore fields in the Mediterranean run by Eni and BP Plc, Scaroni said. The fuel is destined for sale in Europe through regasification plants in Spain, he said. It will also be sold in the U.S.
The Damietta terminal is the biggest single LNG unit in the world, with annual output capacity of 5 million tons, Eni said. The planned second train will double the plant's capacity. Eni and Fenosa own 80 percent of the plant, with the remainder held by Egypt. Union Fenosa Gas controls 80 percent of Segas, the company which holds a 58.75 percent stake in the project for the extension of the plant in Damietta. BP (AmCham Member) (link here) controls 29 percent, and state-owned Egyptian company EGAS (link here) 12.25 percent of the project.
The three parties will contribute funds for building the new train. Output from the new train is expected to start in 2009.
Increased output may help Eni ship and sell more gas in Europe, which may face a gas shortage and needs to invest in LNG to secure supplies, Scaroni said.
SPANISH FIRM WINS OIL PROSPECTING BID IN ALAMEIN AREA Source: ANSAmed, JUNE 26, 2006
Spanish Oil company Sipsa has won the tender by the Egyptian General Petroleum Corporation (EGPC) (link here) for prospecting for oil and natural gas on a 3.200 square kilometers area in South Al Alamein. Minister of Petroleum Sameh Fahmi said oil sector strategy aims to diversify and increase foreign investments highlighting the importance of the Spanish role in this field, especially considering Egypt's natural gas exports to Spain amounted to $1.3 billion.
PRIVATIZATION OF EGYPT'S BANK OF ALEXANDRIA ATTRACTS 12 SUITORS Source: AFX News Limited, June 26, 2006
The battle to acquire up to 80% of Bank of Alexandria (BoA)(AmCham Member) (link here), the only one of four major Egyptian state banks up for sale, is heating up with a final list of 12 European and Arab suitor banks.
According to banking experts, estimates of the final price for Bank of Alexandria range from $880 million to $1.25 billion.
Candidates have two more weeks to present their bids, among them Egyptian frontrunner Commercial International Bank (CIB) (AmCham Member) (link here), France's BNP Paribas (AmCham Member) (link here), Jordan's Arab Bank (link here) and Britain's Barclays (AmCham Member) (link here), which owned the bank before it was nationalized in 1957.
Banking sources in Cairo said others in the running included the Dutch ABN Amro (link here), Standard Chartered (link here), Commercial Bank of Kuwait (link here), Mashreq Bank (link here) (UAE) as well as Greek lenders National Bank of Greece (link here), EFG Eurobank Ergasias (link here) and Piraeus Bank (AmCham Member) (link here).
The central bank plans to float 15-20% of BoA on the Cairo-Alexandria Stock Exchange (CASE) (link here) and reserve a 5% stake for employees.
Two to six banks are expected to make it to the final round, at which stage they will have to make a more detailed and definitive offer. US-based Citigroup (link here) is advisor on the privatization process.
ABRAAJ CAPITAL APPOINTS MUSTAFA ABDUL-WADOOD AS MD Source: www.strategiy.com, June 25, 2006
Abraaj Capital (link here), the leading private equity firm in the Middle East and North Africa, announced the appointment of Mustafa Abdul-Wadood as a Managing Director and member of the Board of Directors with immediate effect.
Mr. Abdul-Wadood joins Abraaj with broad management, investment banking and corporate finance experience from EFG Hermes (AmCham Member) (link here), where he served as CEO for the UAE and previously as the Managing Director of Investment Banking, EFG Hermes Egypt. During his time at EFG Hermes he has been associated with many successful transactions including public listing of Vodafone Egypt, rights issue of Olympic Group and acquisition of Sidi Krier power plant by CDC Globeleq. Mr. Abdul-Wadood also served for eight years with Orascom Group (link here) as Director of Business Development and Investment.
PRIVATE EQUITY GROUP AGREES TO BUY AMOUN PHARMACEUTICALS Source: Daily Star Egypt, June 22, 2006 & Al Alam Al Youm, June 21
stake in Amoun Pharmaceuticals (AmCham Member) (link here) for at least LE2.6 billion ($451 million), the chairman said on Wednesday.
Sarwat Bassily, who founded Amoun in 1998, told Reuters he was offering the company for sale because at the age of 66 he wants to retire and none of his children are interested in the pharmaceutical business.
He said the majority shareholders had signed a non-binding agreement with an international consortium which includes Capital International Private Equity Fund, Citigroup Venture Capital International (CVCI) (link here) and Concord International of New York.
The preliminary agreement states a price range of LE 47 to LE 52.5 a share, but other companies or consortiums could still make higher bids, he said.
Shares in Amoun Pharmaceuticals fell on Wednesday to LE 55.63, down the maximum 5 percent allowed in a session.
The minority shareholders, who own the freely floating 7 percent of the company, would have an option to sell at the same price as that available to the family, Bassily said.
A final sale is also subject to internal and regulatory approvals, which could take some 50 days, he said.
Amoun made a net profit of LE 155 million in 2005, a 190 percent increase on the previous year.
Amoun produces international products under license and exports to countries in sub-Saharan Africa, central Asia, and throughout the Middle East.
CHANGES IN THE COMPOSITION OF DOW JONES CASE EGYPT TITANS 20 INDEX Source: Arab Finance, June 19, 2006
Dow Jones Indexes, the leading global index provider announced, on the 14th of June 2006, the results of the regular annual review of the Dow Jones CASE Egypt Titans 20 Index. Effective as of the open of trading on June 19, 2006, Suez Cement (AmCham Member) and Telecom Egypt (link here) will be added to Dow Jones CASE Egypt Titans 20 Index.
Companies exiting the index are: Delta Sugar and Misr Cement Qena. The total free-float market capitalization of the reconstituted Dow Jones CASE Egypt Titans 20 Index increased to $15.880 billion from $14.776 billion as of May 31, 2006.
YIELD-TO-CALL BOND SYSTEM LAUNCHED Source: Egypt SIS, June 19, 2006
At a press conference yesterday June 18, Chairman of the Capital Market Authority (link here) Dr. Hany Sarrieddin announced the launch on July 2 of the yield-to-call bond system.
On rumors that same-day stock selling and purchasing is the reason why CASE indicators have recently declined, Dr. Sarrieddin said that the system has benefited the majority of investors. The drop was actually triggered by stock brokers.
According to Sarrieddin, the yield-to-call bond system requires brokers to be legally licensed and clients to deposit one and a half times the value of bonds, to protect both the market and the creditors.
Meanwhile, President of Misr Clearing, Settlement and Central Depository Mohammad A. Salam described the yield-to-call bond system as instrumental to achieving profits for traders especially when prices are at their lowest.
TAAMIR MORTGAGE TO SIGN PROTOCOL WITH AHLI UNITED Source: ANSAmed, JUNE 23, 20069
Egyptian Taamir mortgage company is poised to sign a protocol by the end of this month with Bahrain-based Ahli United Bank (link here) to act as the Egyptian company's agent in a number of gulf countries especially Bahrain Kuwait and Qatar.
Signature of the protocol was motivated by the company's desire to expand its financial services to Egyptian workers in the Gulf countries who would be interested in buying homes in Egypt. Under the protocol, Ahli United Bank will accept loan applications from Egyptian workers in Gulf countries and redirect them to the company's headquarters in Cairo. The Bahraini bank is also expected to develop a database on Egyptian workers in the Gulf who may seek mortgage loans to buy homes in Egypt.
Cairo International Airport Company has snapped up a 12% stake of Egypt Air (link here) Tourism and Duty Free Shops Company for $5 million. The deal raises to 24% the stake of Cairo International Airport Company in Egypt Air's subsidiary company. EgyptAir Tourism and Duty Free Shops Company president Tawfiq Assy said that the deal was part of his company's restructuring plan, which included efforts to increase profitability. The company's annual profits at the end of 2005 hit $5 million. Assy expects Cairo International Airport to inject fresh investments into the company to improve its performance in branches located in the Cairo Airport and open up new branches.
Compiled by: Business Studies & Analysis Center E-mail: Studies@amcham.org.eg If you want to receive this bulletin on a regular basis, fill out this form
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