Monthly Economic and Commercial Bulletin EGYPT Provided by ... · Monthly Economic and Commercial...

Compiled by; Yasser Shawky, Embassy of Finland

Monthly Economic and Commercial Bulletin

EGYPT

Provided by:

Embassy of Finland, Cairo

Commercial Section

April 2016

Commercial Office, Y.Sh - Monthly Economic and Commercial Bulletin–April 2016 Page 2

TABLE OF CONTENTS

Economy ................................................................................................................................................................... 3 EGYPT RAISES FOOD SUBSIDIES BY 20PCT PER CITIZEN IN BID TO COUNTER WEAKENING POUND ............ 3 UAE deposit bolsters Egypt’s cash foreign reserve, central bank ................................................................. 3 CBE URGES BANKS TO COMPLY WITH NEW RESTRICTIONS ON FX DEPOSITS .............................................. 3

Banks, Stocks & Finance............................................................................................................................................ 4 No plans to impose tax on bank deposits, official ......................................................................................... 4 Central bank to receive USD 4bn from China ................................................................................................ 4 Tanmeyah to provide micro financial leasing services .................................................................................. 5 Government to borrow USD 400mn from WB for railroad project .............................................................. 5 Nine banks to cover a letter of guarantee worth EGP 3 bn .......................................................................... 5 Social housing fund to inject EGP 30bn to finance investment budget ........................................................ 6 AAIB to open three branches in Q3 of 2016. ................................................................................................ 6 CBE to secure a 9-digit loan from China ........................................................................................................ 7 Afreximbank plans to raise intra-African trade to $ 250 billion, banker ....................................................... 7 NBE provided EGP 410 in mortgage financings, banker ................................................................................ 8

Investment & Mega Projects..................................................................................................................................... 8 YELLOW CAB TO OPEN STORES IN EGYPT, JORDAN ...................................................................................... 8 AlDahra to inject EGP 2.45bn in Toshka scheme........................................................................................... 9 FEDERATION OF EGYPTIAN INDUSTRIES CALLS ON GOVERNMENT TO INCREASE EXPORT REBATE ALLOCATION TO EGP10 BILLION ................................................................................................................... 9 ERA considers Ain Sukhna projects implementation, senior official ............................................................. 9 GAID to allocate zero-cost land for investors in Upper Egypt ..................................................................... 10 VINCI-LED JOINT VENTURE AWARDED CAIRO METRO LINE 3 CONTRACT .................................................. 10 ISSUANCE OF 500,000 LOW-INCOME HOUSING UNITS TO TRIGGER 30-50% ADDITIONAL MORTGAGE FINANCING DEMANDx ................................................................................................................................ 10

Foreign Trade & International Relations ................................................................................................................. 11 Egypt to receive USD 1bn first tranche of Saudi deposit in May................................................................. 11 Egypt, Bahrain sign 12 MoUs....................................................................................................................... 11 BAHRAIN KING STARTS VISIT TO EGYPT ...................................................................................................... 12 UAE ALLOCATES USD4 BILLION TO EGYPT FOR DEVELOPMENT AND CBE .................................................. 12 Egyptian imports decline by 27% in January and February, Egypt's recorded US$1.891bn in non-oil exports, an increase of 4% .......................................................................................................................... 12 GAFI meets 16 Chinese companies to identify cooperation opportunities ................................................ 13 FRANCE SIGNED DEALS WORTH 2 BILLION EUROS WITH EGYPT ................................................................ 14

Local Trade – Mergers & acquisition ....................................................................................................................... 14 Nissan leads local assembled auto market, AMIC ....................................................................................... 14 Auto sales shrink for the first time in years, AMIC ...................................................................................... 14 Beltone earns EGP 5.3 mn in profit ............................................................................................................. 15 EGYPT'S CIB APPROVES TWO-WEEK EXTENSION FOR BELTONE FINANCIAL'S OFFER FOR CI CAPITAL ....... 15 Mega Investment to merge with Acumen Securities .................................................................................. 15 Acquiring Enjoy by Emirate’s NFPC is nearing completion .......................................................................... 16

ICT .......................................................................................................................................................................... 16 Fewer obstacles in internet sector compared to communications: NTRA .................................................. 16 Internet distributors welcome regional licences on certain conditions ...................................................... 17 4.1% growth in ADSL subscriptions in the last quarter of 2015 .................................................................. 18


Egypt ranks 15th in internet speed among Arab countries ......................................................................... 19 Egyptian telecommunications sectors posts EGP 1bn growth in Q3 of 2015 ............................................. 20 Egyptian ICT market will achieve growth rate estimated at $8.95bn in 2016, $10.32bn in 2019: IDC Group vice president ................................................................................................................................... 21 Nokia focuses on LTE, development of government services to increase market share: Nokia Market Head for Middle East and Africa ................................................................................................................. 23

Politics .................................................................................................................................................................... 27 PARLIAMENT GRANTS GOVERNMENT ITS VOTE OF CONFIDENCE .............................................................. 27

Energy – Oil & Gas .................................................................................................................................................. 27 Total Egypt invests EGP 20mn in 12 gas stations, senior official ................................................................. 27

Trade Fairs and Events in Egypt 2016 ...................................................................................................................... 27

ECONOMY

EGYPT RAISES FOOD SUBSIDIES BY 20PCT PER CITIZEN IN BID TO COUNTER WEAKENING

POUND

Source: Ahramonline, April 26, 2016

Egypt's economic ministries decided to raise food subsidies by EGP2.4 billion, boosting each citizen's subsidy by 20

percent, the cabinet said in a statement. The new subsidy will take effect starting June, when the holy month of

Ramadan is expected to start, raising consumption of food and, by extension, prices.

Earlier this week, Egypt’s President Abdel-Fattah El-Sisi commissioned the government to increase the supply of

subsidized basic commodities into local markets to compensate low-income earners for food price hikes caused by

the fluctuating US dollar price in recent months.

UAE DEPOSIT BOLSTERS EGYPT’S CASH FOREIGN RESERVE, CENTRAL BANK

Source: AlMal, 23 April 2016

The new $ 2 billion deposit announced by the UAE will significantly support Egypt’s foreign reserve at the central

bank.

Central Bank Deputy Governor Tarek Fayed said yesterday that the bank has not yet received the new deposit and

hopes to get it this week, stressing that deposit receipt details will be announced as soon as arriving from the UAE.

Fayed praised the UAE's role in supporting Egyptian economy, pointing out that the new deposit will also contribute

to strengthening the central bank’s efforts in fighting dollar speculations in the parallel market.

The UAE has announced a $ 4 billion sum to support the Egyptian economy, including a $ 2 billion deposit at the

central bank and another $ 2 billion in investments.

CBE URGES BANKS TO COMPLY WITH NEW RESTRICTIONS ON FX DEPOSITS

Source: Daily News Egypt, April 17, 2016


The Central Bank (CBE) stressed that banks need to fully comply with all instructions given by the CBE on March 6

and March 8 to regulate foreign exchange deposits. CBE said in a statement that it had monitored some individuals

who made large cash FX deposits, and used them to import non-essential goods and products through companies,

which is not in line with the recently-issued CBE’s restrictions. In March 2016, CBE had cancelled limits on FX

deposit and FX withdrawals for individuals and companies related to the import of basic goods and products. The

bank kept this limit as applicable to companies that import non-essential goods.

BANKS, STOCKS & FINANCE

NO PLANS TO IMPOSE TAX ON BANK DEPOSITS, OFFICIAL

Source: 30 April 2016

Egypt’s tax authority does not consider imposing tax on bank deposits, because it believes the move could hurt

saving rate, given the fact that people deposit their funds in the banks to receive return as a source of income,

according to an official at the tax authority.

Bankers ruled out categorically imposing such a tax on natural persons at the current time because the economic

situation is untenable. Also it would run counter to the banking sector strategy aiming at financial inclusion, and

attracting more clientele.

They said the move is incompatible with what the banks are trying to promote, in terms of exempting saving

vehicles and deposits from taxes to attract a large number of depositors.

Repeatedly, there have been rumors of imposing tax on the returns of bank deposits over the last 5-years since

January 25 Uprising.

The tax authority denied any plan to impose tax on bank deposits return since encouraging saving in the banking

system through tax exemption is one of the principal objectives of the government’s financial policy.

CENTRAL BANK TO RECEIVE USD 4BN FROM CHINA


The Central Bank of Egypt will sign an agreement to obtain credit facilities worth USD 3bn up to USD 4bn with China

next month, according to sources.

The credit facility offered by China to Egypt is part of several agreements to be signed next month, the sources said,

adding China intends to acquire a large number of firms and running huge investing projects.

Al Mal newspaper reported last week that the central bank is involved in negotiations to obtain a new loan from

China Development Bank as part of negotiations conducted by Egypt to secure foreign currency after decline in

foreign reserve.

During the visit of Chinese president to Cairo in last January, Egypt signed 3 financing deals worth USD 1.8bn with

China’s central bank through CBE, the National Bank of Egypt (NBE) and Banque Misr.


The Governor of CBE Tareq Amer told Al Mal newspaper last February that the Chinese bank transferred USD

900mn to the central bank of Egypt.

The duration of the central bank loan is 11 years, including a grace period of 3 years.

The financial resources will be used to strengthen foreign reserve to meet mounting demand for the US dollar,

according to a banking official.

Egypt sealed a deal with China to obtain two loans totaling USD 800 mn in favor of NBE and Banque Misr, with the

former receiving USD 700

TANMEYAH TO PROVIDE MICRO FINANCIAL LEASING SERVICES


Tanmeyah Micro Enterprise Services TMES plans is to offer micro financial leasing product to diversify financing

services provided to customers.

Sources told Al Mal newspaper that under microfinance Act, various products may be offered to customers

including micro insurance and micro financial leasing, adding Tanmeyah was considering founding a financial leasing

firm focusing on agricultural mechanization, noting that the company will re-study the project again and update it,

in terms of participants and areas on which it will focus.

In previous statements, Tanmeyah’s chairman Amr Abu Aish said that the microfinance provider considers offering

financial lease services to micro, small and medium-sized projects through establishing a specialized company in

this field.

GOVERNMENT TO BORROW USD 400MN FROM WB FOR RAILROAD PROJECT


Egypt’s ministry of transport is involved in negotiations with the World Bank (WB) to borrow USD 400mn to finance

train control systems project.

The advisor to the minister of transport for railways sector Wagdy Radwan said that the ministry requested USD

600mn, but the WB approved only USD 400mn, adding there are ongoing negotiations on the loan terms.

WB has allocated financing portfolio amounting to USD 8bn for the coming three years including USD 2bn for

private sector projects and USD 3bn for developmental projects, and USD 3bn to support budget.

Radwan said that the electronic control project would increase safety and security.

It should be recalled that the ministry of transport obtained a loan worth USD 600mn to finance railways electricity

project, and it will obtain a facilitated loan worth USD 600mn from Russia to purchase new railcars.

The ministry is in need of EGP 7bn to upgrade its fleet, according to official statements.

NINE BANKS TO COVER A LETTER OF GUARANTEE WORTH EGP 3 BN



Nine lenders have agreed to participate in a letter of guarantee worth EGP 3 bn pounds for operations related to

digging three tunnels under the Suez Canal.

The Commercial International Bank (CIB) is in charge of issuing and promoting the letters in favor of Concord –

Petrojet alliance.

Sources told Al Mal newspaper that the banking institutions that agreed are namely: Banque Misr, Alexbank,

Emirates NBD, the Arab Bank, Egyptian Gulf Bank, Crédit Agricole Bank, Banque du Caire, Housing and Development

Bank, and National Bank of Abu Dhabi.

A letter of guarantee is a type of contract issued by a bank on behalf of a customer who has entered a contract to

purchase goods from a supplier and promises to meet any financial obligations to the supplier in the event of

default.

The letters of guarantee are issued in favor of the military agency, as an assignment body, while the value is owed

by the contractor tasked with implementation, the sources said.

The lenders are obtaining the approvals of their boards for the letters of guarantee, with CIB distributing coverage

shares latter, according to sources.

SOCIAL HOUSING FUND TO INJECT EGP 30BN TO FINANCE INVESTMENT BUDGET


Investment budget of the next fiscal year 2016/17 includes pumping EGP 30bn by social housing fund, to be

secured through self-financing, as part of target governmental investments worth EGP 107bn, according to minister

of planning Dr. Ashraf Al Araby.

In news statements yesterday, Al Araby said that treasury will pump EGP 64bn to finance the government

investments included in the coming fiscal year’s plan, with an increase of EGP 9bn, compared to the current year as

part of the government’s effort increase investment rate from 14.5% to 16% of GDP in the next year.

Al Mal newspaper uncovered the details of EGP 20bn loan provided by a banking alliance to social housing fund to

finance a scheme to build 400,000 apartment during the coming fiscal year 2016/17.

Al Araby added that the government hopes to achieve a growth rate of 4.5% during the current fiscal year,

compared to 4.2% achieved last year.

Commenting on International Monetary Fund’s (IMF) downgrading economic growth expectation to 3.3%, he said

that a governmental delegation reviewed economic developments during the meetings of the fund last week.

AAIB TO OPEN THREE BRANCHES IN Q3 OF 2016.



Arab African International Bank has opened three new branches during the first quarter of this year in Damietta

port, Ismailia and Greater Cairo-based neighborhood.

The bank said in a statement today, that it targets to open more than 15 other branches to expand in Upper Egypt,

Delta, Alexandria and Cairo, as well as making presence in Cairo neighborhoods and new business centers, along

with adding 35 ATMs by the end of this year.

AAIB’s Wealth Management Sector Supervisor Hala al-Fas said that the lender pumps investments in the

construction and establishment of a strong branches network, being the most important points of contact with

customers.

Having been keen on tightening controls and increasing the added value, AAIB is currently implementing a

centralized plan of operations and opening accounts in branches to improve and provide better services to

customers.

CBE TO SECURE A 9-DIGIT LOAN FROM CHINA


The Central Bank of Egypt (CBE) is involved in negotiations to obtain a new loan from China Development Bank as

part of negotiations conducted by Egypt to secure foreign currency after decline in foreign reserve.

During the visit of Chinese president to Cairo in last January, Egypt signed 3 financing deals worth USD 1.8bn with

China’s central bank through CBE, the National Bank of Egypt (NBE) and Banque Misr.

The Governor of CBE Tareq Amer told Al Mal newspaper last February that the Chinese bank transferred USD

900mn to the central bank of Egypt.

The duration of the central bank loan is 11 years, including a grace period of 3 years.

The financial resources will be used to strengthen foreign reserve to meet mounting demand for the US dollar,

according to a banking official.

Egypt sealed a deal with China to obtain two loans totaling USD 800 mn in favor of NBE and Banque Misr, with the

former receiving USD 700mn and the latter obtaining USD 100mn.

The purpose of the loan is to finance infrastructure projects in different sectors, including energy, agriculture and

telecom.

The sources did not uncover the value of the new loan, on which CBE conducts negotiations.

AFREXIMBANK PLANS TO RAISE INTRA-AFRICAN TRADE TO $ 250 BILLION, BANKER


The African Export-Import Bank (Afreximbank) plans to support the industrial sector throughout Africa and increase

bilateral trade to $ 250 billion in 2021 instead of $ 170 billion at present.


Afreximbank President Benedict Oramah said that intra-African trade development helps to reduce the continent's

dependence on commodities and raw materials, along with shifting to the expansion in the production of high

value-added products so as to enhance the efficiency of African economies to meet challenges.

Oramah added during the launch of Intra-African Trade Development Strategy Conference, that the strategy is

mainly designed to facilitate communication between exporters and importers in African markets through the

creation of effective mechanisms and the reduction of distribution cost, as well as backing the expansion of

productive sector and creating a stimulating environment that helps raise the flow of basic goods and services on

the continent.

NBE PROVIDED EGP 410 IN MORTGAGE FINANCINGS, BANKER


The National Bank of Egypt (NBE) has successfully granted loans worth EGP410 mn to customers as part of

mortgage finance initiative launched by the central bank, according to the head of retail bank sector at NBE Hazem

Hegazy.

Hegazy said that his bank provides financing to 3,000 clients monthly, and plans to finance 5,000 customers per

month over the coming period.

He added that the lender is progressing will in the mortgage finance initiative, noting that there have been

increasing demand from low-income brackets, after the amendments made to the initiative.

NBE is currently studying requests of low and middle income customers to provide them with financing, according

tom the banker.

He pointed out that the recent central bank’s meeting with the representatives of mortgage finance at banking

institutions discussed the problems facing lenders as part of the initiative, and the latest developments in the

sector, adding the convention is a monthly meeting attended by all representatives of banks participating in the

initiative, totaling 14.

Currently, the central bank initiative does not need to be amended, and there is an emerging opportunity for all

banks to increase services offered to real estate sector, Hegazy said.

INVESTMENT & MEGA PROJECTS

YELLOW CAB TO OPEN STORES IN EGYPT, JORDAN

Source: ABS-CBN, April 27, 2016

Max's Group Inc. said it would open 10 Yellow Cab stores in Egypt and five others in Jordan in the next five years as

it pursues an aggressive overseas expansion. Operations in the Jordanian capital of Amman will start this year,

followed by Egypt in 2017, the company said. Aside from Max's fried chicken restaurant, the group also operates

casual dining chains Dencio's and Pancake House. It also holds the local franchise for Krispy Kreme donuts.


ALDAHRA TO INJECT EGP 2.45BN IN TOSHKA SCHEME


Emirates’ AlDahra Co. plans to pump investment worth EGP 2.45bn in Toshka project with the purpose of

reclaiming 70,000 feddans out of a total of 100,000 feddans allocated for the firm.

According to an official, the cost of reclaiming one feddan rose to EGP 35,000 from EGP 30,000 due to increase in

US dollar exchange rate, adding the company’s investments include infrastructure and rehabilitation.

Since being launched under former President Hosny Mubarak, some 65,000 feddans have been reclaimed until

February 2016, according to Egypt’s ministry of irrigation with the government spending EGP 6.5bn on

infrastructure.

The Emirati company focuses on strategic crops including wheat, corn and vegetables, as well as some citrus, the

official said.

AlDahra has started reclaiming 30,000 feddans as part of a total area of 100,000 feddans allocated for it, which

reflects seriousness in completing reclamation of all allocated area, he argued.

Sources told Al Mal newspaper earlier that the Emirati firms wish to boost investments in the domestic market,

especially in energy and agriculture domains.

FEDERATION OF EGYPTIAN INDUSTRIES CALLS ON GOVERNMENT TO INCREASE EXPORT

REBATE ALLOCATION TO EGP10 BILLION

Source: Al Mal, April 24, 2016

The Federation of Egyptian Industries (FEI) has made a request to the government requesting an increase in

provisions allocated to export rebates to EGP10 billion/annum. FEI maintains that an increased rebate would help

support exports; thus, offering support in alleviating the FX crunch that has hit the Egyptian market, the statement

added. The statement also called for setting measures to facilitate the process for exporters including smoothing

out the issuance of Letters of Guarantees and facilitating working capital or production needs.

ERA CONSIDERS AIN SUKHNA PROJECTS IMPLEMENTATION, SENIOR OFFICIAL


ERA for Urban Development plans to implement coastal projects in Ain Sokhna, which is close to Cairo and the new

administrative capital project, especially with the state’s high interest in the execution of giant ways projects aimed

at serving the city, according to the company’s Board of Directors Vice Chairman Farida Ardash.

Ardash pointed to Al Galala City that brings together Universities, hospitals, schools and various institutions, which

contribute to the city’s high added value.

She added that the coming period would see Ain Sokhna’s shift to “First Home” as a result of these factors,

pointing out that such factors also contribute to the increase of prospects of rental units as permanent residence, in

addition to many other areas which are active only during summer months.


She stated that the North Coast has been experiencing a boom during the next stage, with the implementation of

major roads and services projects, in addition to the execution of new Al Alamein city and its related investments.

GAID TO ALLOCATE ZERO-COST LAND FOR INVESTORS IN UPPER EGYPT


Head of General Authority for Industrial Development (GAID) Ismail Gaber.

The new land that will be allocated to investors in the industrial zones in Minya, Assiut, Sohag, Qena Aswan, and

New Valley, will be connected with utilities, and will be granted free of charge to the serious investor owning a

project with a high economic feasibility, according to Head of General Authority for Industrial Development (GAID)

Ismail Gaber.

President Abdel Fattah al-Sisi issued a decree that determines certain industrial zones, in which land may be

allocated for investors for free.

For his part, the head of Upper Egypt Investment committee at the Investors' Union Ali Hamza hoped the lands

would be connected with infrastructure utilities in order to achieve high growth rate in industrial development in

Upper Egyptian provinces.

Land allocation for free is an important step; however, most important is addressing the problems faced by

industrial investors in terms of the absence of future vision of industry owing to not having an industrial map, with

which the investor can be guided, said the vice chairman of investors’ union Mahmoud Al Shandawaily.

VINCI-LED JOINT VENTURE AWARDED CAIRO METRO LINE 3 CONTRACT

Source: Rail News, April 22, 2016

VINCI Construction Grands Projects , Bouygues Travaux Publics and Egypt’s Orascom Construction and Arab

Contractors have been awarded a €1.1 billion contract to deliver the third phase of Cairo Metro’s Line 3. Phase 3

of the line includes 17.7 kilometres of new railway, 15 stations – a combination of underground, at-grade and

elevated stations – and the construction of a new rail tunnel beneath the Nile. The project will create 5,000 jobs

and will involve more than 600 French suppliers and subcontractors. The contract was signed on April 17 in the

presence of Egypt’s President Abdel Fattah el-Sisi, and French President François Hollande.

ISSUANCE OF 500,000 LOW-INCOME HOUSING UNITS TO TRIGGER 30-50% ADDITIONAL

MORTGAGE FINANCING DEMANDX

Source: Al Borsa, April 18, 2016

The Housing Ministry announced that it will issue 500,000 low-income housing units at end of current month.

Bankers expect that this new issuance would trigger 30-50% additional demand for mortgage financing in the

upcoming period and the next few years. Some bankers said that while this issuance is expected to have a positive

impact for banks, the large number of units issued and underlying financing needs require assistance and support

from the Central Bank of Egypt (CBE) to manage necessary liquidity. A CBE official stated that the CBE is ready to

expand its financing for phases one and two of the mortgage initiative by EGP10 billion for each phase once the


initial planned financing of EGP20 billion is fully utilized. Mortgage loans granted by specialized financing companies

picked up 70% Y-o-Y in 2015 to EGP981 million, up from EGP576 million in 2014.

FOREIGN TRADE & INTERNATIONAL RELATIONS

EGYPT TO RECEIVE USD 1BN FIRST TRANCHE OF SAUDI DEPOSIT IN MAY


Saudi Arabia will transfer USD 1bn as part of its USD 3bn deposit allocated for Egypt in May and the remainder will

be transferred in June and July, according to sources.

The sources told Al Mal newspaper that the deposit would support Egypt’s foreign reserve amounting to USD

16.5bn as part of aids agreed upon during King Salman’s last visit to Egypt.

Another official said that Saudi Arabia has pledged to offer significant assistances to Egypt including the deposit of

support foreign reserve, adding it was agreed that aids will be provided until January 2017.

The government announced earlier that the total amount of the agreements signed during King Salman’s visit is

worth USD 25 bn including USD 1.7bn offered by the Saudi Fund for Development (SFD) for Sinai development

scheme.

The Saudi deposit would push down the US dollar price in the Egyptian market that fell to EGP 10.50 from EGP

11.65 as an Emirati deposit worth USD 2bn was announced.

Egypt will receive the Emirati deposit soon, according to an official.

EGYPT, BAHRAIN SIGN 12 MOUS


Egypt’s minister of trade and industry Tareq Qabeel and his Bahraini counterpart Zayed bin Rashid signed yesterday

12 memorandum of understandings between the two sides on medications, energy, construction and finance.

Qabeel said that the Bahraini investments are estimated at USD 2.7bn, and Bahrain holds fourteenth place in the

list of countries investing in Egypt.

This came in the joint Bahraini-Egyptian Business Forum held in Cairo, as part of the current official visit of HM King

Hamad bin Isa Al-Khalifa to Egypt, in the presence of the representatives of 40 Bahraini firms and several Egyptian

companies.

The Egyptian minister of trade and industry called on Bahraini business community to pump more investments in

the Egyptian market and take advantage of preferential trade agreement signed with different economic blocs,

which qualify products for being exported.

For his part, the head of Egyptian- Bahraini Business Council Mohamed El Sewedy said that the two sides agreed on

creating an air link between the two countries to increase incoming Bahraini tourism to Egypt, adding the first

phase of the air corridor will be between Sharm el-Sheikh and Bahrain.


BAHRAIN KING STARTS VISIT TO EGYPT

Source: Gulf News, April 27, 2016

Bahraini King Shaikh Hamad Bin Isa Al Khalifa arrived to Egypt on April the 26th evening on a two-day visit aimed at

enhancing ties between the two allied Arab countries. President Abdul Fattah Al Sissi welcomed the Bahraini

monarch at Cairo airport as major roads in the city were adorned with flags of both countries. Talks between the

two leaders are expected to focus on promoting relations between Egypt and the Gulf country, state media said. Al

Sissi and Shaikh Hamad will also review regional hotspots, mainly Syria and Yemen. During the Bahraini leader’s

visit, a number of cooperation pacts will be signed covering agriculture, health care, media, culture and investment.

Bahrain’s investment in Egypt is estimated at around $1.7 billion (Dh6.24 billion), according to official figures. The

visit is King Hamad’s third to Egypt since Al Sissi took office in mid-2014. In March 2015, the Bahraini monarch

attended a major Egyptian economic forum in the Red Sea city of Sharm Al Shaikh. In August last year, he attended

a ceremony in Egypt marking the inauguration of an extension to the Suez Canal.

UAE ALLOCATES USD4 BILLION TO EGYPT FOR DEVELOPMENT AND CBE

Source: Reuters, April 24, 2016

The United Arab Emirates has allocated USD4 billion to Egypt, half of which is in investment and the other half as a

deposit at the Central Bank of Egypt (CBE) to support cash reserves. Details of the UAE aid allocation came at the

end of a visit of Abu Dhabi's crown prince, Sheikh Mohammed bin Zayed al-Nahayan, to Egypt. He said the aid,

authorised by UAE President Sheikh Khalifa bin Zayed al-Nahayan, showed the UAE was firm in its support for

Egypt. The money was aimed at promoting development in Egypt, which has a "pivotal role" in the region. Tarek

Fayed CBE Deputy Governor said that the deposit would support the bank's reserves significantly and help it fight

speculation on the dollar black market. Fayed said the deposit was expected to arrive this week.

EGYPTIAN IMPORTS DECLINE BY 27% IN JANUARY AND FEBRUARY, EGYPT'S RECORDED

US$1.891BN IN NON-OIL EXPORTS, AN INCREASE OF 4%

Source: The Daily News. April 21 2016

Minister of Industry and Foreign Trade Tarek Qabil announced Egypt’s non-oil exports rose to US$1.891bn in

March, up from $1.818bn in a year over year comparison to register a 4% increase.

During the same time period, Egyptian imports decline by 27%, as the country imported US$7.568bn in January and

February 2016 compared to US$10.397bn in a year over year comparison.

Qabil stated the economic metrics align with the ministry’s efforts to meet its target external trade ratios,

rationalize imports and reduce the demand on hard currency. The Ministry of Industry and Foreign Trade

restructure its previous plan to attempt to repay a large portion of the debt it owes to the Export Development

Fund.

Egyptian agriculture exports garnered US $280m in March compared to US $256m in a year over year comparison,

an increase of 9%.


Chemical and fertilizer exports garnered US$289m in March compared to US$259m in March 2015, an increase of

12%.

Print media exports increased from US$2m to US$3m while construction material exports increased by nearly

US$100m to US$406m in March 2016.

“Agriculture imports fell to $324m compared to US$529m during the same two months of 2015, a decline of 9%.

Textile imports declined from US$94m to US$64m, a decrease rate of 32%, and pharmaceutical and medical

imports fell to US$159m compared to US$222m during the same period of 2015, a decline of 28%,” the minister

noted. “Chemical and fertilizers imports dropped to US$489m compared to US$653m during the same period last

year 2015, a decrease rate of 25%.

Industry and textile imports each fell by 24%, while upholstery and textile imports each fell by 32%. Construction

material imports fell by 27% while the value of print material imports decreased by 18%.

Engineering industry imports increased by 8%, while the furniture sector settled at the same value as the past year.

Egyptian exports to European Union amounted US$1.3bn compared to US$1.2bn during March 2015. Exports to

Arab countries amounted to US$2.108bn compared to US$2.76bn during March 2015. Egyptian exports to the

United States decreased to US$272m compared to US$316m during March 2015.

As for African countries-non Arab-countries, Egyptian exports witnessed a slight decrease to US$274m compared to

US$276m during March 2015.

Meanwhile, imports decreased from Arab countries to US$446m in January and February 2016 compared to

US$1bn in January and February of last year, a decline rate of 55%.

Imports from the US fell to US$462m compared to US$932m during the same period in 2015, a decline of 50.4%.

Imports from African countries decreased from US$98m to US$86m, a decrease rate of 12% over the same period

last year. Imports from the European Union slightly increased to $3.564bn compared to US$3.426bn, an increase of

4%.

GAFI MEETS 16 CHINESE COMPANIES TO IDENTIFY COOPERATION OPPORTUNITIES

Source: The Daily News Egypt, April 21, 2016

The delegation expressed interest in cooperating in fields such as transportation, the construction materials

industry and the electric elevator sector.

Chief executive of the General Authority for Investment and Free Zones (GAFI) Alaa Omar met a Chinese delegation

comprising 16 Chinese companies, working in the fields of aerospace, construction, and automotive and bus

transportation manufacturing, according to a press statement on Thursday.

The meeting is part of the Chinese delegation’s visit to Egypt to gauge the viability of investment in Egypt, as well as

discuss opportunities for cooperation in areas of common interest.


Omar expressed Egyptian interest in increasing Chinese investments in the Egyptian market, as part of

strengthening economic ties with China and forming a comprehensive strategic partnership between the two

countries.

The Chinese delegation also expressed interest in cooperating with Egypt in the fields of transportation through

mass transit buses, the construction materials industry, as well as the possibility of cooperation in the sector of

electric elevators.

The delegation showed great interest in identifying investment opportunities in the new administrative capital

project, according to the statement.

During the meeting, the two sides agreed on arranging meetings between Chinese companies and the relevant

Egyptian authorities during an upcoming visit to Egypt.

There are 1,230 Chinese companies operating in Egypt, with a total capital of US$550m.

FRANCE SIGNED DEALS WORTH 2 BILLION EUROS WITH EGYPT


France signed several deals worth about 2 billion euros with Egypt during a visit by French President Francois

Hollande to Cairo, the French president's office said. The deals included a satellite communications contract agreed

upon following discussions between the two presidents and their defence ministries, the Elysee said. The military

telecommunications satellite is expected to be built by France's Airbus Space Systems et Thales Alenia Space .

French energy Engie firm said earlier that it also signed LNG and renewable energy contracts during the visit.

LOCAL TRADE – MERGERS & ACQUISITION

NISSAN LEADS LOCAL ASSEMBLED AUTO MARKET, AMIC

Saturday 30 April 2016 02:30 PM

Nissan, Japanese auto manufacturer, topped locally assembled private cars bestseller list in Egypt during the first

quarter of this year, with a 36.5% market share versus 21.1% during the same period of 2015, according to a recent

report issued by The Automotive Marketing Information Council (AMIC).

Locally assembled car sales in the first quarter hit 12.9 thousand units, compared to 19.3 thousands in the same

period of 2015, down 32.9%.

The South Korean brand "Hyundai" came in the second place with a 29.3% market share, compared to 32.7%,

followed by Geely Ghabbour by 9.5% vs. 5.2%, and Chevrolet by 8.1%, compared to 25%.

In fifth place came Chery Ghabbour by 7.3%, followed by Jeep by 3.6%, compared to 2.9%, then Toyota by 3.5%

versus 2% and finally BMW by 2.2%, compared to 2.9%.

AUTO SALES SHRINK FOR THE FIRST TIME IN YEARS, AMIC



Car market sales shrank for the first time in years, by 31.2% in the first quarter of this year, achieving the lowest

performance since 2013.

Sales of various car kinds recorded 49.5 thousand units, compared to 72.2 thousand units during the same period of

2015, 62.8 thousands in 2014, 49.6 thousands in 2013, and 43.25 thousands in 2012.

The Automotive Marketing Information Council (AMIC) report found a 32% decrease in passenger car sector sales,

to 33.4 thousand units, compared to 48.9 thousand units, while truck sales fell by 34%, to 9.7 thousand units,

compared to 14.8 thousand units.

Bus sales decreased by 23%, to 6.5 thousand units only, compared to 8.5 thousands during the first quarter of

2015, according to the report.

Despite the decline, March sales have been the highest since the beginning of 2016, reaching 17.7 thousand units,

compared to 16.5 thousand in February, and 15.4 thousand units in January.

BELTONE EARNS EGP 5.3 MN IN PROFIT


Consolidated financial statements of Beltone Financial approved by the board of directors showed that the

company’s net profit fell to EGP 5.3 mn during the fiscal year ending on December 31, compared with EGP15.2 mn

at the end of 2014.

The company’s unconsolidated financial statements showed that Beltone brought in a net profit of EGP 4.5 mn

during the above-mentioned year, compared to a net loss of EGP 1.1 mn by the end of 2014.

The Listing Committee of the Egyptian Stock Exchange has recently approved raising Beltone’s issued and paid-up

capital to EGP 338.031 mn from EGP 325.483 bn, with an increase of EGP12.55 mn, spread over 6.27 million shares.

EGYPT'S CIB APPROVES TWO-WEEK EXTENSION FOR BELTONE FINANCIAL'S OFFER FOR CI

CAPITAL


Egypt's Commercial International Bank (CIB) approved a two-week extension for an offer by Beltone Financial to

acquire its subsidiary CI Capital , CI Capital's Chief Executive Officer Mahmoud Atalla said. In February, CIB signed a

deal to sell investment bank CI Capital to Beltone for 924 million Egyptian pounds ($104 mln) but the deal has

stalled pending approvals from Egyptian regulators.

MEGA INVESTMENT TO MERGE WITH ACUMEN SECURITIES


Mega Investment Securities is involved in negotiations to merge with Acumen Securities, according to sources.

The merge will expectedly be completed in two weeks, the sources said, adding the deal is related to Acumen

Securities only and sister company Acumen asset management is not involved.


Al Mal newspaper attempted to get details from the representatives of the two firms but they preferred not to

comment.

Al Mal reported earlier that the officials of Mega Investment Holding said that there are ongoing negotiations with

a brokerage company for merging and creating a larger business entity.

Acumen Securities ranked 20th in the Q1 2015 out of total 139 brokerage firms operating in the Egyptian market.

Acumen Securities Brokerage, of which 99% is owned by Acumen Holding, was established in 2010, as the

brokerage arm of Acumen Holding. Its services include prime brokerage, online trading, research, technical analysis,

margin trading and intraday trading, in addition securities lending.

Mega Investment is the securities arm of Mega Investments Holding, which is capitalized at EGP 100mn.

It is anticipated that Acumen – Mega’s new entity would seize a market share of 1.1%.

ACQUIRING ENJOY BY EMIRATE’S NFPC IS NEARING COMPLETION


National Food Products Company (NFPC), one of the largest food and dairy manufacturers and distributors in the

United Arab Emirates, is about to complete acquiring Nile Co. For Food Industries – Enjoy owned by Qalaa Holding,

according to sources.

The sources told Al Mal newspaper that the Emirati firm has successfully finalized due diligence assessment, adding

the two parties have agreed upon the details of the deal that will expectedly be executed by the end of the current

month, giving no further details about the deal’s value.

Qalaa Holding had appointed Pharos Holding for Financial Investments as the financial advisor to its exit deal from

Enjoy.

The Enjoy’s selling deal is part of an exit plan by Qalaa Holding from non-core investments.

Founded in 1971, NFPC is a multimillion dollar FMCG organization. Its products are consumed by more than half of

the total population of the UAE every single day. These products are exported to almost every country in the

region. NFPC business units include LACNOR, OASIS, Milco, Plastic and joint-venture with ARLA Foods.

ICT

FEWER OBSTACLES IN INTERNET SECTOR COMPARED TO COMMUNICATIONS: NTRA

Source: The Daily News Egypt, 26 April 2016

If organizational difficulties were eliminated, we would be able to spread nationwide, says Orange Managing

Director Waseem Arsany


It is difficult to plan for regional internet licenses to have the same destiny as the unified license due to the

differences between the communications sector and the internet sector, said head of the Industry Committee at

the National Telecommunications Regulatory Authority (NTRA), Abdel Rahman El-Sawy.

“There are fewer obstacles in the internet sector compared to the mobile communications sector,” he added.

El-Sawy explained that the internet licenses provision will have a positive impact on the quality of services because

it will limit the number of illegal internet cables. Internet companies currently sell internet subscriptions without

knowing their number subscribers; however, the regional licenses system will limit the demand on illegal cables,

allowing the delivery of high-quality services to subscribers.

El-Sawy believes internet subscriptions must be provided within the scope of the new licenses, and for lower prices,

in order to stimulate demand and encourage subscribers to forgo the use of illegal cables.

Lowering prices after issuing regional licenses is necessary because the majority of citizens in villages and provinces

have low incomes, according to El-Sawy, who requested that the price difference be covered in cash by the

Universal Service Fund (USF) in the NTRA if needed.

Waseem Arsany, managing director of Orange, said that until now the organizational framework of regional

internet licenses remains unknown. The public sector, however, has many organizational difficulties, according to

Arsany, who added that if these difficulties were solved by the NTRA, first-category licensed internet companies like

Orange would be available in all villages.

Arsany said one of the difficulties in spreading internet is the absence of proper infrastructure. Many agents resort

to illegal cables due to the absence of an infrastructure to install landlines. Illegal cables should be immediately

penalized once the organizational infrastructure is resolved, he added. He also demanded the re-pricing of internet

services.

Minister of Communications and Information Technology Yasser Al-Qadi announced that regional licenses would be

delayed, although previously expected to be launched during the second quarter of this year, in order to introduce

an organizational framework to ensure that there will be a demand by distributors.

The regional internet license framework stipulates that a maximum of two licenses can be launched in each

governorate as part of the government’s plan to eliminate illegal internet cables and improve internet services.

INTERNET DISTRIBUTORS WELCOME REGIONAL LICENCES ON CERTAIN CONDITIONS


Licence must stipulate that we offer a similar service to internet companies, says SICIT chairman

Issuing licences for ADSL high-speed internet will have several advantages for informal internet service distributors,

according to a number of officials working in the field.

Hany El-Abd, the chairman of the General Syndicate of Internet, Communications and Information Technology

Workers (SICIT), said issuing such licences will mark an official acknowledgment by the Ministry of Communications


and the National Telecommunications Regulatory Authority (NTRA) of the role of internet service distributors in the

sector.

Internet distributors operate informally, linking internet connections from internet service providers such as TE

Data and Orange to several homes at a lower fee than prevalent internet subscription rates.

El-Abd said the state treats internet distributors as if they are traders. Obtaining regional internet licences will

mean that internet distributors are officially recognised, along with companies like TE Data and Orange.

This is especially important, as currently the NTRA refuses to intervene in most of the conflicts between distributors

and internet companies in order to resolve them, claiming that these problems should be resolved between

companies and their distributors.

The chairman believes the regulatory framework for issuing these regional licences has not yet been determined.

He rejected the idea of providing services through the licences in the form of buying speeds at “wholesale prices”

from internet companies and then reselling them to the public.

He also requested that these licences be similar to those provided to first-category companies like TE Data and

Orange, with the exception of regional licences being provided for specific areas and governorates.

Providing regional internet licences in a manner that satisfies distribution companies will eliminate the

phenomenon of illegal cables and increase the state’s, as well as the companies’, profitability, El-Abd said. It will

also help the distribution of ADSL high-speed internet.

Internet distributors provide offers and pricing plans that are competitive with illegal internet cables, and this will

eventually help to distribute internet across all areas and villages, according to El-Abd. He noted that reports of

some private institutions showed that the distribution rate of internet in Egyptian households does not exceed 17%,

whereas according to the global standards it should not be less than 40%.

Owner of one of the distributor companies of TE Data’s internet services Mohamed Kotb said that regional internet

licences will have a positive impact on distributors in terms of finances, as it would transform them from

distributors for existing internet service providers to competing companies on a regional level.

Kotb also rejected the idea of launching regional licences by buying speeds at wholesale prices from internet

companies and then reselling them to the public, as he believes this method will not provide an added value.

4.1% GROWTH IN ADSL SUBSCRIPTIONS IN THE LAST QUARTER OF 2015


39.2% of Egyptian households have internet access at home

The number of ADSL subscriptions grew by 4.1% in the last quarter of 2015, increasing from 3.6m subscriptions in

the third quarter to 3.8m in the last quarter, according to a report by the Ministry of Communications.

The number of Egyptian households who use the internet reached 43.5% during the last quarter of 2015, while the

number of households who have internet access at home reached 39.2%.


The report indicated that 98.4% of these households connect to the internet through ADSL in speeds equivalent to

or higher than 256 kb/sec, while 33.2% of households are connected to the internet through mobile broadband.

The report estimated that 0.2% are connected to the internet through narrowband, with speeds less than 256

kb/sec.

According to the report, 22.3% of Egyptian households use the internet to connect with others via social networks,

such as Facebook and Twitter, while 24.2% of households send messages via e-mail.

The report estimated that 12.1% of Egyptian households use the internet to make voice calls, and 11.3% use it to

obtain information about health and health services, 5.2% use it to obtain information about government

authorities, and 6% use it to obtain information about goods and services.

The report also showed that 20% of Egyptian households use the internet at least once a day, while 9.5% use it

once a week and not on a daily basis, and 2.6% use the internet less than once a week.

According to the report, the greater Cairo area has the lion’s share of total ADSL subscriptions, making up 45% of

total subscriptions.

The Delta provinces represent 28% of subscriptions, while Alexandria and Matrouh represent 11%, Upper Egypt

10%, and Sinai and Red Sea cities 6%.

In January 2015, there was a clear decline in the number of internet users, as they declined from 33.8 million users

in December 2015 to 26.2 million users in January 2016.

This decline is the result of the number of USB users dropping to 26.9%, where it declined from 3.8 million users in

December 2015 to 2.7 million users by January 2016.

The number of mobile internet users declined by 24.8% in January 2016, where mobile internet users fell from 26.3

million users in December 2015 to 19.7 million users in January 2016.

EGYPT RANKS 15TH IN INTERNET SPEED AMONG ARAB COUNTRIES


Average broadband speed is 0.95 mb/sec, Jordan and Djibouti rank ahead of Egypt

Egypt ranked low compared to other countries in the Arab world in terms of internet speed, according to a report

by Interactive Middle East Company.

According to the report, Egypt ranked 15th among 22 countries included in the report.

The average broadband speed in Egypt was estimated at 0.95 mb/sec. Morocco, Jordan, Djibouti, Tunisia, Iraq, and

Palestine all ranked above Egypt.

The report showed that Saudi Arabia ranked first in terms of internet speed in the Arab region, where the speed of

broadband internet is estimated at 3.5 mb/sec. The United Arab Emirates ranked second with a speed of 2.7

mb/sec.


Qatar ranked third, where it is estimated that internet speed is 2.6 mb/sec, followed by Kuwait whose speed is

estimated at 2.3 mb/sec.

The report showed that Morocco ranked fifth, where the average internet speed is estimated at 2.03 mb/sec,

followed by Bahrain which ranked sixth with a speed of 1.8 mb/sec.

Jordan ranked seventh with an internet speed of 1.7 mb/sec, followed by Oman in eighth with 1.35 mb/sec.

Algeria ranked ninth with a speed of 1.3 mb/sec, then Djibouti in 10th place with a 1.31 mb/sec speed.

Syria, Tunisia, Iraq, and Palestine occupied positions between 11th and 14th, respectively. Following Egypt came

Sudan, Libya, Mauritania, Lebanon, Yemen, Comoros, and Somalia in the positions between 16th and 22nd,

respectively.

EGYPTIAN TELECOMMUNICATIONS SECTORS POSTS EGP 1BN GROWTH IN Q3 OF 2015


The cost of ADSL internet and mobile services fell between October and December 2015

The Ministry of Communications and Information Technology published a report on the fourth quarter of 2015,

indicating a decline in how much consumers paid for mobile internet telecommunication services, compared to the

corresponding period of 2014.

According to the report, the cost of mobile services declined from $2.9 during the fourth quarter of 2014 to $2.6 in

the fourth quarter of 2015. Asymmetric digital subscriber line (ADSL) internet prices fell from $10.4 during the last

three months of 2014 to $6.3 during the corresponding period of 2015.

According to the report, the cost of using a mobile phone is calculated according to the price paid in advance for

every 30 calls per month, distributed over the same mobile network and over competing mobile networks; during

peak and non-peak times and on weekends, in addition to 100 text messages.

ADSL internet prices are calculated according to the lowest price of a monthly subscription for an internet company

with the highest market share of subscribers.

The report also revealed that the telecommunications sector’s contribution to Gross Domestic Product (GDP) rose

by 7.3% during the fourth quarter of 2015 compared to the corresponding period of 2014. The sector’s total

contribution to GDP reached approximately EGP 14.2bn during the period from October to December 2015,

compared to EGP 13.2bn during the corresponding period of 2014, an increase of almost EGP 1bn.

The contribution of the telecommunications and IT sectors to the state’s GDP was about 3.1% during the fourth

quarter of 2015, compared to 2.9% during the corresponding period of 2014.

The number of mobile users grew slightly in January 2016 compared to December 2015, according to a report by

the Ministry of Communications and Information Technology.

The report indicated that the number of mobile users increased from 94 million users in December 2015 to 94.16

million users in January 2016, a growth of 0.15%.


According to statistics cited in the report, the number of mobile users in January 2016 declined by 1.1% from

January 2015, as the number of mobile phone users fell from 95.2 million users in January 2015 to 94.1 million

users in January 2016.

The report also revealed a significant decline in the number of internet users during January 2016, as the number of

internet users fell from 33.8 million users in December 2015 to 26.2 million users in January 2016.

EGYPTIAN ICT MARKET WILL ACHIEVE GROWTH RATE ESTIMATED AT $8.95BN IN 2016,

$10.32BN IN 2019: IDC GROUP VICE PRESIDENT


We think Egypt is a market with strong potential and full of talent that we cannot ignore

Jyoti Lalchandani, IDC Group Vice President & Managing Director for Middle East, Africa and Turkey

IDC chose Egypt for their regional research centre because the Egyptian market features strong potential for growth

and is a large pool of talent, said Jyoti Lalchandani, IDC Group Vice President & Managing Director for Middle East,

Africa and Turkey.

In an interview with Daily News Egypt, Lalchandani said IDC plans to increase cooperation with the Information

Technology Industry Development Agency (ITIDA) on more events and in strategic projects.

Can you provide an overview of the CIO summit?

This is the second edition of the CIO summit that IDC is organising in Egypt in partnership with ITIDA. The CIO

summit is IDC’s flagship or the main conference that we organise in a very few, select countries across the world.

We hold no more than 10 CIO conferences across the world. Egypt was chosen last year and we hosted the first

summit, and this year we are hosting our second summit.

The CIO summit is really a platform to bring together some of the leading CIOs, along with industry representation

and government, to discuss the key trends that are shaping the landscape in Egypt. Today, we have brought

together over 200 CIOs from various industries; banks, financial services organisations, public services, government

administration, retail, distribution, manufacturing, health care, and a wide range of industries.

Leading CIOs will share with us their perspectives on digital transformation, and on their key challenges and

priorities. We also brought in representation from the industry; our partners who will present their top leadership

in areas around the platform, like Cloud, Analytics, Mobile, and Social, and also talk about IDC’s research on

animation accelerators and digital transformation.

So the CIO summit is really IDC’s flagship. It is a very exclusive event, and it is invitation only. So, we decide which

CIO should be part of the conference and we decide the best practice sessions. It is a conference that is designed by

CIOs for CIOs, so a lot of the content and topics are actually chosen by CIOs as part of IDC’s research process.

How do you see growth in the IT market in Egypt?


Our projection for growth in the IT market this year is that it is going to be moderate, so you are not going to see

exceptional growth for multiple reasons. One of the reasons is that there is generally an economic slowdown in

many countries, including the Gulf, Africa and, of course, Egypt. We are seeing a more cautious approach, more

cautious spending. The second reason is of course the currency fluctuation, which means that in US dollar terms,

we expect the market to be impacted because of fluctuation in the currency and shortage in US dollars in the

country. We are already seeing some impact of that in the overall ICT landscape. However, we think that the export

of IT and ICT services from Egypt to other countries will remain fairly strong in the next few years.

In terms of investment, we are seeing a lot of investment still very much centred on infrastructure. Almost 70% of

the overall spending in Egypt is still focused on hardware infrastructure. Spending on areas like software packages

and IT services is still quite small, but as the market matures and grows we’ll see the shift from IT hardware to

software packages and IT services.

According to IDC’s latest projections, the Egyptian ICT market will achieve a growth rate estimated at $8.95bn in

2016 and a growth of $10.32bn, or 9%, in 2019, which will come mostly as a result of spending on IT and software

packages. We also expect the Egyptian economy to achieve strong growth rates as a result of foreign investment

under the new government.

Have you the chosen a space for the IDC office?

Yes, we have chosen a rental in Smart Village. Our initial plan was to have 10 people at the start of this year, and we

already reached that limit. So we are already now looking for a bigger place as we hope to be between 15 to 20

people by the end of 2016.

Why have you decided to open your centre in Egypt?

For us, Egypt is a very open market for a variety of reasons. First of all, Egypt has some of the best talents in the

region, so we could have access to great talent, especially in IT and telecom. Also ITIDA has invested a lot over the

past few years, so we have seen a great pool of talented people coming through.

Secondly, we think it is a market we cannot ignore. We are seeing some stability in the country now, and we hope

that this will continue. We think it is a market that has strong potential for growth; it has close to 100 million

people, it has a great pool of talent, and the penetration of ICT is still quite small, which means there is significant

potential for growth in the industry.

Another important reason is that we feel we can leverage Egypt, given its location; we can support a number of

business units in the Gulf, Africa, and possibly in Europe. We think we have the right structure and the right backing

from the government and ITIDA is supporting us, so we have the right formula for us to expand our operations in

Cairo.

Will your office in Egypt be regional?

Yes, it will be a regional centre focused on the Middle East and Africa regions. There will be staff here that will be

based in Cairo, but will have a regional role and regional responsibilities.

What is the size of your investments in Egypt after opening the centre?


Our investments here are basically our infrastructure. Basically, that includes the people we have, the office we

have, the underlying infrastructure in terms of IT equipment. We do not have machinery, we are in the service

business; so we provide research and we provide advice to customers. So, our investments in the country are in

terms of human capital. Developing human capital and having human capital on the ground that would support the

country and the local economy.

What benefits would Egypt get from IDC?

A lot of benefits. First of all, IDC is a trusted source of information for hundreds and thousands of companies in the

IT and telecom industry, so IDC opening a centre here will lead to all the large multinational companies viewing

Egypt as a stable market for investment.

Secondly, by being here, IDC will also expand its research coverage. We will provide a lot more coverage of research

areas to domestic ICT investors. This means that the domestic ICT industry could expect to get a lot more

information on the local market than they used to.

We are also working very closely with the MCIT and ITIDA, and being here on the ground, we believe we can do a

lot more together. We can organize more events and more programmes, we can work in many other strategic

programmes along with ITIDA. We think that it is a good sign for everybody.

What is your programme with ITIDA for promoting SMEs?

SMEs are definitely one of the most important segments of the population. They represent a significant majority of

companies. For SME to expand, flourish and progress, ICT and telecom will play a major role. We are currently

collaborating with ITIDA to design a programme that we think will be interesting, but we have not formalised

anything yet, so we will wait until we develop it more and then we will make a formal announcement once it is

finalized.

NOKIA FOCUSES ON LTE, DEVELOPMENT OF GOVERNMENT SERVICES TO INCREASE MARKET

SHARE: NOKIA MARKET HEAD FOR MIDDLE EAST AND AFRICA


According to El-Leithy, Nokia robust R&D spend, with pro-forma Eur 4.2 billion spent in 2014, greatly supports all

our research at Bell Labs and FutureWorks

Nokia Market Head for Middle East and Africa Amr K. El-Leithy

Nokia Market Head for Middle East and Africa Amr K. El-Leithy said the region’s markets have many investment

opportunities in the communications sector, such as LTE wireless communication services and government services

which depend on cloud computing technology.

El-Leithy told Daily News Egypt that Egypt is among the six most important markets in the region for the company,

revealing that Nokia cooperates with Telecom Egypt (TE) in the project to modernize the telecommunications

infrastructure by adding 100 GB fiber-optic cables.


According to El-Leithy, Nokia robust R&D spend, with pro-forma Eur 4.2 billion spent in 2014, greatly supports all

our research at Bell Labs and FutureWorks.

What is your opinion of the communications market in the Middle East?

Most Middle East telecom markets are promising, such as Egypt, UAE, Saudi Arabia, Iraq and Iran. Therefore, we

work with the majority of mobile service operators in those markets.

For example, we deal with the three major companies in Saudi telecoms market—STC, Mobily, and Zain. We also

cooperate with the Saudi government in other projects, such as the implementation of the communications

infrastructure for the Riyadh Metro project.

In the United Arab Emirates market, we cooperate with Etisalat and du, in addition to some government agencies.

We have finished implementing the 4G projects—LTE, and the installation of 100 GB fibre-cables—in a number of

these markets, which reflects Nokia’s interest in the Middle East’s promising markets.

What is the volume of the Middle East share in Nokia’s global business?

The Middle East is one of the most important areas for Nokia, as it commands a high volume of the parent

company’s global business.

What are the challenges facing the company in Middle East markets?

The decline of oil prices affected the growth of some of the Middle East and the Gulf markets because it has

affected the states’ budgets, as well as the budgets of some companies. In addition to the political instability in

some countries are some of the most important challenges.

The devaluation of the local currency against the dollar affected the growth of the telecommunications market in a

number of countries in the region and such as Turkey, South Africa, Nigeria and Egypt.

What investment opportunities are there in the region’s markets?

There are many opportunities, especially in African markets, such as the use of cloud computing in providing

government services. We also provide this service in cooperation with the governments of Burkina Faso and Ghana,

as well as cooperating with many telecom companies in Africa to modernise their services.

We also provide IT solutions to reduce costs and improve the quality of services in countries that are suffering from

the devaluation of the local currency. In addition, we support mobile operators which are preparing to provide 4G

services, such as in Algeria, Egypt and Nigeria.

One of the most important investment opportunities in the African market is the use of fibre-optic cables instead of

copper cables. Meanwhile, we are focusing on cooperation with the information security companies that offer good

investment opportunities, as well as providing telecommunications services in the transportation sector.

The volume of business in the Middle East markets has shrunk significantly. How do you deal with that?


Indeed, some regional markets have shrunk, but we make up for this through the expansion of technological

solutions that contribute to cutting costs. Moreover, we are focusing on developing markets because they offer

many investment opportunities, such as 4G licences being granted in Algeria.

Egypt also is expected to grant 4G licences by the end of 2016 or during the first quarter of 2017. The Iraqi and

Iranian markets are also promising, especially after lifting the embargo on Iran.

When was the acquisition of Alcatel-Lucent completed?

Nokia decided to acquire Alcatel-Lucent in April 2015, which was officially announced in January 2016 after the

completion of legal proceedings.

How does the acquisition support Nokia’s plans?

Nokia was distinctive in the mobile networks services, while Alcatel-Lucent was known for fibre-optic cables and

some mobile applications. The combination of the two companies will help provide integrated technology solutions

and raise the market share and business volume of Nokia. The acquisition of Alcatel-Lucent will also increase

investment injected in the market.

Nokia is currently seen as the world leader in 4G services, and became the first in fibre-optic cables after the

acquisition of Alcatel-Lucent.

What is the size of the R&D budget annually?

We spend roughly €4bn annually on research and development works. There are 40,000 scientists and engineers

working in different sectors of the company to develop and apply the latest techniques of telecommunication

technology.

Some reports mention that large companies resorted to mergers and acquisitions to overcome the shrinkage of the

market size.

The market is indeed very competitive and acquisitions support the size of works inside the company that, in turn,

help the company increase its share in the market. Our sector is very R&D intensive, so getting the right scale is

critical.

What new technology does Nokia plan to present in the coming period?

We are focusing on the Internet of Things (IOT) technology which comes amid plans to prepare the environment for

applications that might be launched by telecommunication operators in the future, such as health applications and

mobile phone network management through safe platforms.

We are running preparations to present 5G technology, which is expected to be among our main regional targetsin

2017/2018. 5G helps to increase download capacity, which is useful for videos, particularly considering the trend

towards dominant video content on the internet. In addition, it will increase the capacity of fibre-optic cables from

100GB to 400GB.

On the domestic level, what investment opportunities have caught your attention?


We are cooperating with the Ministry of Telecommunication and Information Technology in updating the

infrastructure of the telecommunications sector, including the project of replacing copper cables with fibre ones of

a 100GB capacity. We are cooperating with Telecom Egypt in this project and we presented our ideas for the

upgrade from fixed internet services to high speed broadband.

We are also working with the National Telecom Regulator Authority (NTRA) as a consultant for the new

technological services, such as cloud computing and 4G.

Is the Egyptian market ready for 4G technology?

Egypt has the means to implement 4G services and the three mobile operators are ready as well. Egypt needs 4G,

especially owing to the increase in mobile-internet users. However, the Egyptian market requires better

organisation before launching the new service, in addition to providing all necessary means for launching 4G,

whether frequencies or developed infrastructure.

Did the company start preparing its network to receive 4G services?

We are currently putting forth the vision to supply 4G services. However, we have not taken any actual steps, as we

are awaiting licenses to be issued.

What transformations are required in the telecommunications sector, technically, in order to move from 3G to 4G?

There are two ways. One is updating the mobile network entirely. However, this is more expensive than the second

way. This second way is carried out through supplying the current networks with a specific technology that provides

4G technologies.

How did you overcome the crisis of providing the US dollar in the Egyptian market?

The devaluation of the local currency against the US dollar did not occur in Egypt alone, but also in many countries

in the region. We have the experience to deal with similar reform policies. We faced similar situations in many

countries and such crises did not affect our commitment towards our customers.

The situation that Egypt is facing now is in my view a temporary one. The serious steps taken by the government

and the Central Bank of Egypt (CBE) prove that the country’s economic status will soon be improved.

Are there any difficulties in providing an efficient and trained technical workforce in the telecommunication sector?

Nokia Egypt has over 700 employees, which shows how many efficient and trained employees are present in the

domestic market. Nokia Egypt is known for its efficient and well trained engineers who not only support our

operations in Egypt but across the Region and in Europe as well.

Who are your most prominent customers in the Egyptian market?

We provide our services to the three Mobile operators and Telecom Egypt, besides a number of governmental

sectors.

What size does Egyptian constitute out of Nokia’s total business in the Middle East?


Egypt is one of the six most important markets to Nokia in Africa and the Middle East. We have provided our

services in the Egyptian market since the 1970s. We have vast experience in the Egyptian market, especially after

the merger of the two companies.

Are there plans to expand your market share regionally?

We are going to focus on the new licences that will be granted to some Middle Eastern markets, in addition to

expanding our services in these markets as they have a great potential to grow. We also plan to expand our

technological services provided to the governmental sector.

POLITICS

PARLIAMENT GRANTS GOVERNMENT ITS VOTE OF CONFIDENCE

Source: Ahramonline, April 21, 2016

Egypt's government got its first vote of confidence in Parliament, with Prime Minister Sherif Ismail saying

afterwards that "Egypt is still in a state of danger and all state institutions and citizens should join forces to stand up

to the challenges." The vote of confidence was reached with 433 MPs voting in favour according to an electronic

tally. In a 10-minute speech ahead of the vote, Prime Minister Ismail addressed a wide array of domestic issues and

challenges. "We do not have the luxury of choosing between two options; success or failure, reform or corruption,

and winning the war of the future or being defeated before the forces of the past," said Ismail. He also said that his

government intends to reform the country’s subsidy policy to make sure that "subsidies go to those who deserve

them only."

ENERGY – OIL & GAS

TOTAL EGYPT INVESTS EGP 20MN IN 12 GAS STATIONS, SENIOR OFFICIAL


Total Egypt is planning to inject investments worth 20 million pounds in building between 10 and 12 fuel stations

during the current year, according to the company’s Media Relations Director Tariq Gohar.

Gohar said the company has opened, a month ago, a refueling station on the Autostrad Road, adding that works are

being done on many other stations in preparation for opening them.

He pointed out that the company is negotiating with several international auto companies agents to reach joint

agreements on equipping brands’ cars marketed by these agents in Egypt with oils, technical support and training.

Total Egypt has announce at the end of last week the winners in entrepreneurs competition launched by the

company late last year; and winning projects included areas of irrigation, health care and care for people with

special needs.

TRADE FAIRS AND EVENTS IN EGYPT 2016


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



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



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.


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)



57th Cairo Fashion & Tex

The International Fashion,

Apparel & Textile Exhibition


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



Centre

Cairo, Egypt



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.


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


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.


Convention Centre

(CICC)

http://www.sdec-mea.com/

http://www.sdec-mea.com/

http://www.egypt-business.com/Company/details/Faculty-of-agriculture-Cairo-university

http://www.egypt-business.com/Company/details/Faculty-of-agriculture-Cairo-university

http://www.cafex-me.com/

http://www.mediconex.net/



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)

http://www.moc-egypt.com/

http://www.egypt-business.com/Company/details/IES-International-Exhibition-Services

http://www.egypt-business.com/Company/details/IES-International-Exhibition-Services

http://www.egymedica.com/

http://www.foodafrica-expo.com/

https://www.facebook.com/Afropackagingexhibition/

http://www.elearning-africa.com/index.php



Sahara

Agro-food industry 24-27 September Cairo International

Convention Centre

(CICC)

Cairo Energy 2016

International Exhibition &

Conference for Oil, Gas &

Energy


Convention Centre

(CICC)

Pharos 2016

The International Exhibtion

& Conference for Logistics,

Ports & Shipping


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)

http://www.saharaexpo.com/



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)

http://www.handlingexpo.com/

https://forms.mactech.com/fillsurvey.php?sid=525&rid=MainLink

http://www.transpotech-eg.com/

http://www.airtech-eg.com/

http://www.mefsec.com/

http://www.electricxegypt.com/



Cairo ICT

ICT 27-30 November

2016

Cairo International

Convention Centre

(CICC)

http://www.cairoict.com/

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