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The Weekly Week ending Sunday 27 April 2014
Issue : 17/2014
Higher Natural Gas Prices
• The Cabinet issued a decree doubling the prices of natural gas used in
households and commercial activities similar to households starting May,
with exempting the subsidized bread bakeries.
• The prices will be determined according to the following segments of
consumption : below 25 cubic metres of gas per month will be charged at
EGP 0. 4 per cubic metre, between 25 and 50 cubic metres per month will
pay EGP1 per cubic metre, while consump(on above 50 cubic metres per
month will be charged at EGP1.5 per cubic metre star(ng May.
• The amended prices is expected to increase the state’s revenues by
EGP800 million to EGP1 billion per annum.
• The government intends to start restructuring energy subsidies as of July,
coinciding with the coming fiscal year 2014/15 with no effect on the price
of butane gas cylinders or electricity consumption charges for medium and
low segments. In another scenario, government may postpone the rise in
petroleum product prices until the smart card system will be completed by
the end of the year 2014.
* ($1=EGP7.01025, €1=EGP9.695255)
“ The new decree raises gas prices to
20% of the interna�onal price for
natural gas, as compared to 7 percent
now”
Faisal Aboul-Ezz
Egypt Gas Chairman
Ahram Online 23 April 2014
“The revenues will be used in delivering
the natural gas to the deprived areas as
a part of a plan to expand the networks
to more housing units to decrease the
burdens on the citizens and reducing
their needs to the butane gas cylinders”
Ibrahim Mehleb Prime Minister
Moheet.com 23 April 2014
"The new rise on petrol prices will be
the first in eight years, the actual cost of
fuel hasn't been moved up since 2006,
but in 2008 the petroleum products'
prices were raised due to the imposition
of a sales tax"
Osama Kamal
Former oil minister
Ahram Online 27 April 2014
1
The Weekly Week ending Sunday 27 April 2014
2
Controversial Law
• The Interim President, Adly Mansour issued a decree for regulating
appeals on state contracts where the law prohibits any third party from
issuing appeals against any contracts signed between the government and
the investors, except for those with in rem and in persona rights.
• Once issued, the law was faced with many criticisms stating that it is a
clear contradic(on to ar(cle 34 of the cons(tu(on and it curbs the public
supervision on the government’s decisions, where the first appeal against
the law was presented few days after the law was issued.
“The government aimed by this decree to
enhancing investment climate and
stimulating economic activity along with
providing procedural system that guarantees
the stability of the government’s contracts
and protecting the contractor within the
context of Legality and rule of law”
Presidency Statement
Ahram Newspaper 22 April 2014
“The law protects the corruption during
Mubarak’s Era and the regimes followed
with some businessmen”
Salwa Soliman
Professor Of Economics At The Faculty Of
Economics And Political Science
Al Shorouk News 25 April 2014
Demonstrations Continue
• Last Saturday, Non-Islamist opposition groups and movements marched to
Ittihadiya presidential palace demanding scrapping the controversial
protest law and the release of detainees. The demonstrations followed a
sit-in by group of women activists outside the Ittihadiya last week.
• On Friday, at least two persons were killed during clashes between
security forces and supporters of ousted President Mohamed Morsi in Al
Fayoum governorate as protest continued in several parts of Egypt against
interim authorities.
"We are here at the presidential palace
against the protest law which detains all our
fellow activists and revolutionaries at a time
when all the thieves and corrupt figures are
being released”
Khaled Ali
The Former Presiden.al Hopeful at 2012
Elections
Ahram Online 26 April 2014
Other Headlines
• The Presidential Election Committee (PEC) announced that the final
presidential candidates are the ex-army chief, Abdel Fattah El-Sisi and the
leftist, Hamdeen Sabahi, after examining the documents of both
candidates and found them satisfying the eligibility requirements set by
the commi:ee. The elec(ons will be held on the 26th and 27th of May
2014, while Egyp(ans living abroad will vote on the 15th (ll the 18th of
May.
“The PEC is considering allowing the
eliminated domestic organisations to
participate in the monitoring process
through granting them a "guest status", the
same status granted to the National Council
for Human Rights (NCHR) and the National
Council for Women”
Abdel Aziz Salman
Spokesman of the PEC
Ahram Online 27 April 2014
• Prime Minister Ibrahim Mehleb took his first tour in Africa visiting Chad
and Tanzania in an attempt to gain support for lifting of Egypt’s
suspension from the African Union. Also, discussions involved increasing
bilateral relations and signing agreements in the fields of agriculture and
petroleum.
"We will protect our rights to the Nile water
with the support of the world and African
countries, and with our efforts"
Ibrahim Mehleb
Prime Minister
Ahram Online 26 April 2014
The Weekly Week ending Sunday 27 April 2014
3
• US started to ease restrictions on military aid to Egypt imposed after the
ous(ng of President Mohamed Morsi last year by commi>ng to send 10
Apache helicopters to support counterterrorism operations in Sinai in
addi(on to releasing $650 million in military assistance upon Congressional
approval.
* ($1=EGP7.01025, €1=$1.3833)
“We believe these new helicopters will help
the Egyptian government counter extremists
who threaten US, Egyptian, and Israeli
security”
Rear Admiral John Kirby
Pentagon Spokesman
Daily News Egypt 23 April 2014
• The security forces arrested 6 terrorists considered to belong to the
Moslem Brotherhood Group as they were accused of forming a terrorism
cell that carried violence acts against policemen and police facilities.
“The cell members were attracting youth and
universities’ students who belong to the
Brotherhood group and assigning them to
monitor police officers and personnels and
some police installations in an attempt to
spread chaos and terrorism”
Statement of Alexandria Security Directorate
Al Mesryoon Newspaper 21 April 2104
• Suez Canal revenues increased by 8.5 per cent in March 2014 reaching
$441.9 million compared to $407.4 million in March 2013.
* ($1=EGP7.01025, €1=$1.3833)
• Tourism revenues shrunk by 43 percent during the first quarter of 2014 to
register only $1.3 billion compared to same quarter last year, as a result of
terrorism attacks in major tourists destinations.
* ($1=EGP7.01025, €1=$1.3833)
“The decline is seen as a consequence of the
Taba attack in February that killed three
South Korean tourists”
Adella Ragab
Economic Advisor Of The Minister Of Tourism
Ahram Online 16 April 2014
• During a press conference,National Bank of Kuwait (NBK) announced
rebranding its subsidiary in Egypt, Al-Watany Bank of Egypt (AWB), under
the new name NBK -Egypt.
"Working under the name of National Bank
of Kuwait Bank will enhance the bank's
position in Egypt thanks to the prestigious
position enjoyed by the National Bank of
Kuwait on the regional arena"
Essam Al-Sager
Egypt Chairman
El qabas 27 April 2014
The Weekly Week ending Sunday 27 April 2014
4
EGP Exchange Rates*
Egyptian Stock Market Indices
Macroeconomic Indicators FY 2011/2012*** FY 2012/2013*** 2013 (July-December)
Real GDP Growth Rates 2.2% 2.1% 1.2%
Budget Deficit (EGP Billion) 166.7 239.9 89.4
Budget Deficit as % of GDP 10.8% 13.8% 4.4%
Balance of Payments (USD Billion) -0.1 0.24 1.99
Gross Domestic Debt (EGP Billion) 1,155.3 1,446.6 1,651. 8
Gross Domestic Debt as % of GDP 74.9% 83.4% 80.6%
Average Headline Inflation 8.7% 6.9% 10.9%
Average Unemployment Rate 12.4% 13% 13.4%
*Average exchange rates on the last working day of the week in Egypt.
**Morgan Stanley Capital International Emerging Markets Index.
***Fiscal year ending 30 June.
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6,94 7,00 7,03 7,02 7,00 6,91 6,90 6,90 6,95 6,98 6,98 6,98 7,01
9,179,27 9,33 9,33 9,37 9,41 9,51 9,47 9,51 9,51 9,54 9,61 9,69
10,75 10,81 10,93 10,82 10,95 11,19 11,18 11,39 11,38 11,52 11,61 11,59 11,79
5,00 5,50 6,00 6,50 7,00 7,50 8,00 8,50 9,00 9,50
10,00 10,50 11,00 11,50 12,00
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
EGP per USD EGP per Euro EGP per Pound Sterling
35
40
45
50
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
MS
CI
EM
EG
X
EGX 30 EGX 70(Rel.) EGX 100(Rel.) MSCI EM**
