STATE INFORMATION SERVICE

Weekly Economic Bulletin

(12-17 August 2017)

Mohammad Saleh

Sisi highlights key role by Arab Organization of

Industrialization in development process

President Abdel Fattah El Sisi highlighted the key role played by

the Arab Organization for Industrialization - which is a national

economic institution - in the development process.

Addressing a meeting with the organization's chairman Abdel-Aziz

Seif, Sisi called for more efforts to upgrade the organization.

He also urged promoting cooperation between the organization and

foreign countries, including African ones, in the coming period to

increase Egypt's civil and military exports.

Seif reviewed during the meeting a report on his recent African

tour, which included Nigeria, Cameroon and Ivory Coast. He said

officials in the three countries showed great interest in purchasing

products of the organization, opening new cooperation vistas and

exchanging expertise in several fields.

The report reviewed the organization's civil and military products,

said the presidential spokesman Alaa Yousef.

Seif said the organization is participating in several civil projects,

including ones in infrastructure domain, added the spokesman.

Sisi reviews work progress of new administrative capital

President Abdel Fattah El Sisi held a meeting with Minister of

Housing and Urban Development Mostafa Madbouly to discuss the

work progress in the new administrative capital.

The meeting was attended by Chairman of the Board of Directors

of the new administrative capital Ahmed Abdeen, Presidency

Advisor for Urban Planning Amir Sayed Ahmed and Executive

Director of Dar Al-Handasah Consultants Company Mohamed

Yehia Zaki.

During the meeting, Madbouly said that according to the advanced

stage of the implementation, marketing plan for the housing area in

the new administrative capital will be launched soon with a view to

offer the first residential units ahead of Al Adha feast, said the

presidential spokesman Alaa Yousef.

Yousef added that the general design of the central area of the new

administrative capital and its development strategy were reviewed

during the meeting in addition to new capital's central business

district.

Work progress of new El Alamin city was also discussed.

Madbouly affirmed that construction works of the residential and

tourist buildings, road network systems and utilities are underway,

Yousef noted.

A national university comprising a number of applied science

faculties, an opera house,a library and a museum will be

established in new El Alamein city.

During the meeting, Sisi urges to continue implementation plan of

the business district in the new capital city and to stick to the set

timeline in addition to following up the stages of progress of the

rest of the new cities, Yousef further said.

Sisi stressed that such projects should provide high-quality services

for citizens that goes in line with international standards.

Sisi stresses resuming efforts for comprehensive update of

electricity sector

President Abdel Fattah El Sisi stressed the importance of resuming

efforts of comprehensive update of the electricity sector and

developing the transportation sector according to a certain

timetable so as to guarantee improving services offered to citizens

nationwide especially in the Upper Egyptian governorates and

remote areas.

He further affirmed the importance of fulfilling Egypt’s

developmental needs of the electricity energy.

The president stressed the need to finalize studies of plans

pertaining to electricity connection with neighboring countries

putting into consideration its importance in enhancing cooperation

with these countries and pushing forward developmental efforts.

These remarks came during the meeting held between Sisi and

Electricity and Renewable Energy Minister Mohamed Shaker.

During the meeting, the electricity minister reviewed efforts

exerted to improve the services offered to citizens either

household, commercial or industrial consumption, according to

presidential spokesman Alaa Youssef.

Shaker said that the most up-to-date technologies are adopted,

while the customer service system is developed.

The minister reviewed also the work progress in implementing a

number of great national projects carried out in the electricity

sector. He further underlined that experimental operations will be

implemented by Siemens company in Beni Suef, Berulus and the

new administrative capital during the first months of next year.

Concerning the project of the nuclear station for generating

electricity in el Dabaa, Shaker stressed that the Dabaa is being

prepared now for establishing the station.

The minister tackled, during the get-together, steps being taken to

start the ventures of electricity connection with the neighboring

countries so as to make Egypt a hub for energy.

Shaker underscored that measures are now taken for electricity

connection with Saudi Arabia to exchange 3000 megawatts,

besides establishing the green energy corridor with African

countries, Youssef reiterated.

Investment, antiquities ministers probe with Luxor governor

means of luring investors

Minister of Investment and International Cooperation Sahar Nasr

discussed with Antiquities Minister Khaled el Anani and Luxor

Governor Mohamed Badr the investment opportunities in the

Upper Egyptian governorate.

The meeting also touched on establishing two investment regions

in Luxor: a comprehensive one and another one for small and

medium enterprises.

They probed means of benefiting from Luxor’s rich archaeological

areas in luring investments that would in turn help attract more

tourists to the governorate.

Meanwhile, the meeting took up preparations for Nasr’s visit to

Luxor in order to lay down the foundation stone of a branch of the

investment services center in the tourist city, due to cover Upper

Egypt.

Nasr, Chinese company discuss establishing recycling factory

Investment and International Cooperation Minister Sahar Nasr

discussed with the chairman of a Chinese company for waste

recycling establishing a recycling factory in Egypt.

The chairman expressed his company's willingness to invest in

Egypt, in light of the improvement of the country's business

climate.

Operating in 20 countries, our company is one of the world's

leading recycling companies, the chairman said.

The company has conducted a study on offering assistance to

Menoufiya governorate in getting rid of waste, the chairman said,

adding that an MoU has been signed in this regard.

Nasr, Mamish discuss UAE's DP World plan to beef up

investments in SCZone

Investment and International Cooperation Minister Sahar Nasr had

a meeting on Monday with Chairman of the Suez Canal Authority

and the Suez Canal Economic Zone (SCZone) Mohab Mamish to

discuss a plan drawn by UAE's DP World to beef up its

investments in the SCZone.

The Investment Ministry in a statement on Monday said that the

two sides discussed arrangements for a foreign tour that will take

them to Vietnam and Singapore in August to inject new

investments in the country.

For her part, Nasr called for benefiting from the new investment

law that gave incentives and investment protection guarantees for

investors who seek to establish business projects in the Suez Canal

economic zone.

Mamish stressed the importance of channeling all state institutions'

efforts into achieving a comprehensive development in the country

and changing the future of the region, a matter that will in turn help

boost Egypt's economy and create jobs.

He also underlined the importance of Sinai development as the

only way to achieve peace and stability in this important part of

homeland.

On August 9, President Abdel Fattah El Sisi approved the

establishment of a joint development company between the Suez

Canal Economic Zone and the Dubai World Ports group known as

DP World.

According to the deal, DP World will carry out the project in the

Suez Canal area while the Egyptian government will offer all

facilitation necessary for the project's establishment.

Dr. Nasr Meets with EBRD’s Vice-Presidents during her Visit

to London

On 15 August 2017, during her visit to the British capital

“London”, the Minister of Investment and International

Cooperation Dr. Sahar Nasr met with the First Vice-President of

the European Bank for Reconstruction and Development (EBRD)

Mr. Philip Bennett and EBRD’s Vice-President Mr. Alain Pilloux.

The officials discussed current cooperation portfolio with EBRD

and future projects, given that the overall cooperation portfolio

with the Bank reaches approximately EUR 2.6 billion, including

injecting investments in the fields of infrastructure, energy and

transportation as well as supporting the private sector, particularly

SMEs and entrepreneurship.

EBRD’s potential financing of Kitchener drainage project in Kafr

El-Sheikh to increase standards of living and eliminate the

environmental loss arising from the sewage plant was tackled

during the meeting, where the Minister emphasized that the

government would take prompt actions to secure funds for solving

the problem of Kitchener drainage as soon as possible.

Further, the Meeting touched on the arrangements of forming an

advisory council “The Foreign Investment Council in Egypt” to

serve as a dialogue platform between the Egyptian government and

major investment companies in order to settle any disputes and

overcome any obstacles facing foreign direct investments (FDI) in

Egypt, which is considered a fundamental factor in providing job

opportunities. A steering unit for the advisory council will be

established in collaboration with EBRD, added Dr. Nasr.

The Minister asserted Egypt’s keenness on hosting the investment

forum scheduled to be held with EBRD in November 2017, noting

that the forum would give an overview of Egypt’s investment

opportunities and the new Investment Law and its executive

regulations. It would serve as a platform for gathering several

global companies which already invest, or intend to invest, in

Egypt.

Finally, the Minister invited EBRD and its President to take part in

“Africa Forum 2017” scheduled to be held in Sharm El-Sheikh

next December under the auspices of President Abdel Fattah El-

Sisi. Africa Forum, explained the Minister, would call on

increasing investments in Africa and Egypt, besides presenting

investment opportunities in Egypt and developing youth in Africa.

Nasr reviews preparations for upcoming visits by WB

delegations

Investment Minister Sahar Nasr met with Asad Alem, World Bank

Country Director for Egypt, to discuss preparations for WB visits

to the country in August and September.

The first visit is expected to take place between August 20 and 24

and will focus on the inking of the third batch of a three-billion-

dollar fund to support the Egyptian economic and social program,

according to a statement by the Investment Ministry.

Other WB delegations will visit Egypt in September to discuss

projects to develop Upper Egypt, support good governance,

upgrade education and improve the investment climate.

The WB has allocated 500 million dollars for the development of

Upper Egypt, Nasr said.

US pharmaceutical companies look to increase investments in

Egypt

Representatives of US pharmaceutical companies expressed their

interest in a possible increase of investments in Egypt, and praised

the measures taken by the government to improve the investment

climate.

During a meeting with Minister of Investment and International

Cooperation, Sahar Nasr, the representatives of the companies said

that Egypt is the ideal market central investment in medicine, due

to geographical location and large population.

Executive director of Middle East affairs at the US Chamber of

Commerce, Steve Lutes, said that the chamber supports the

expansion of American companies to invest in Egypt and looks

forward to working with the minister to increase the number of

American companies in the country, as well as expand their

investments and businesses.

MENA area director of Glaxo Smith Kline, Fabio Landazabal, said

that the volume of their investments in Egypt reached $800

million, and there is a desire to expand the pharmaceutical sector.

The company has two factories in Cairo and Giza, representing

about 8 percent of the Egyptian market.

The minister said that Egypt welcomes American investors, and its

doors are open to receive their money. He explained that the

government has made a packet of legislation to improve the

business and investment environment, including the finance lease

law and amending the Companies Law.

Landazabal added that Egypt has all the qualifications to attract

investments, such as excellence and competition, as well as the

new investment law that takes into account the social dimensions

and promotes transparency, disclosure and standards of

governance.

New industrial facilities law to attract more regional,

international industrial investments to Egypt

Trade and Industry Minister Tarek Qabil asserted that the

executive regulations of the law aiming at facilitating measures to

issue permits for establishing industrial facilities will make a

revolution concerning industrial investment rates in Egypt in the

coming period.

This came on the sidelines of a press conference that was held to

announce the new regulations.

The minister added that the new regulations will contribute to

attracting more regional and international industrial investments to

Egypt as well as enhancing Egypt’s rating in reports issued by

international institutions.

He also said that the new law aims at facilitating the measures,

avoiding bureaucracy and shortening the time required to issue

permits.

The conference was also attended by Chairman of the Federation

of Egyptian Industries Mohammed Al-Suwaidi, Chairman of the

Federation of Egyptian Chambers of Commerce Ahmed El Wakil,

Egyptian Union for Investors' Associations Head Mohamed Farid

Khamis, Head of Parliament's Industry Committee Ahmed Samir

and other senior officials.

SCZone announced new decreases for container ships

Chairman of Suez Canal Development Zone (SCZone) Mohab

Mamish announced that tariffs on ships will be reduced up to 50

percent to increase the number of containers and transit ships and

encourage investors to hold activities in the Egyptian ports.

Speaking at a press conference to announce the application of the

ports’ unified bill, Mamish said that container ships carrying less

than 200 containers will not be granted a discount, while those

carrying from 200 to 500 containers will have a 10 percent

reduction. Moreover, container ships carrying less than 1,000 and

2,000 containers will get 15 and 20 percent cuts, respectively.

A 25 percent reduction will be granted to container ships carrying

less than 3,000, SCZone Chairman said, adding that 45 percent

will be reduced from ships carrying less than 3,333 containers and

50 percent for more than 3,333 containers.

Mamish added that tariffs cut will be applied on the ports of the

Suez Canal Development Zone as a first phase to develop the Suez

Canal in east and west Port Said, Ain Sokhna and El-Tor.

Decreasing the tariffs does not indicate a decline in the service

level, Mamish highlighted.

In April, Mamish announced reductions on the fees for a number

of shipping lines, as a 40 percent fee discount for bulk cargo ships

moving from South Africa ports to Mediterranean ports was set,

including those along the Black Sea to Ceuta Port.

Egypt tourism revenue bounces back after crippling dollar

shortage: Bloomberg

Egypt’s tourism revenues rose to $1.5 billion in the fourth quarter

of 2017, up from $510 million in the same period a year ago,

Bloomberg reported on Tuesday citing central bank data.

Full-year receipts rose 16 percent to $4.4 billion. Remittances grew

9 percent to $4.8 billion in the fourth quarter, and rose two percent

to $17.4 billion for the year, Bloomberg said, marking “another

step in the country’s economic recovery from a crippling dollar

shortage.”

“Egypt’s main foreign-currency earners are finally bouncing back,

closing in on levels similar to those prevalent before the 2015-2016

crisis,” Reham El Desoki, senior economist at regional investment

bank Arqaam Capital told Bloomberg.

The data is an indication of a slow but sure improvement in

Egypt’s external finances since November, following the floatation

of the Egyptian pound, and a sharp cut in subsidies, as the

Egyptian government seeks to secure a $12 billion IMF loan.

Unemployment rate below 12 percent for first time since 2011

Egypt's unemployment rate dipped below 12 percent in the second

quarter, the first time it has been that low since the political

uprising of 2011.

Nearly 80 percent of those unemployed were young, however.

The Central Agency for Public Mobilization and Statistics

(CAPMAS) said the rate dipped to 11.98 percent from 12 percent

the previous quarter.

Prime Minister follows up progress of energy projects

Prime Minister Sherif Ismail chaired the Supreme Council of

Energy meeting to review and follow up the progress of energy

projects in Egypt, in addition to the oil and gas exploration

operations.

Minister of Petroleum and Mineral Resources Tareq el Molla,

Minister of Electricity and Renewable Energy Mohamed Shaker

and Minister of Transport Hesham Arafat attended the meeting.

PM issues decree to establish golden triangle economic zone

Prime Minister Sherif Ismail issued a decree no. 1788/2017 on

establishing the Golden Triangle Economic Zone as an

independent public authority.

As per the decision, the Safaga-based zone will be under the

supervision of the premier.

The cabinet has earlier pointed out that the zone will include

setting up a variety of economic and developmental activities in

industrial, mining, agricultural development and tourism sectors.

As well, projects aiming at upgrading facilities, infrastructure and

road development will be also established in the Golden Triangle

Economic Zone.

United States Dollar to Egypt Pound

By the end of this week, the average buy price for the US dollar

reached 17.7129 pounds, while the average sell price reached

17.8129 pounds.

Gold Price

The following table shows gold price per gram:

Carat Gold price per gram in

Egyptian Pound (EGP)

24K Gram 728 EGP

21K Gram 637 EGP

18K Gram 546 EGP