THE WEEKLY ISSUE 40 6 TH NOVEMBER 2017 EGYPT LAUNCHES THE INDUSTRIAL INVESTMENT MAP IN THIS ISSUE

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1 EGYPT LAUNCHES THE INDUSTRIAL INVESTMENT MAP Egypt launched its first comprehensive industrial investment map, including 4,136 investment opportunities in 8 sectors across various governorates, with the aim of creating 300,000 jobs. The engineering industries acquired the lion s share with 1,265 opportunities, followed by the chemical industries (861 opportunities), the food industries (649), the textile sector (605), the mining sector (395), the pharmaceuticals sector (183), the metal industries (122) and the leather industries (56). According to the Trade and Industry Minister, Tarek Kabil, small industries comprised 56% of the presented opportunities, followed by 23% for medium industries, 13% for micro/small industries and 8% for large industries. The new map will strengthen the industrial sectors and limit the markets gaps, rationalize the importations, as well as increasing the added value of the local products Tarek Kabil Trade And Industry Minister Xinhua News 31 st October 2017 IN THIS ISSUE Customs Exchange Rate Is Kept Unchanged Net International Reserves Increase Remittances Rise 17% Govt. Extends Tax Disputes Law EFSA Changes Its Name Egypt Hosts The World Youth Forum 1

2 The Finance Ministry stated that the customs exchange rate will be kept unchanged at EGP16 per US Dollar for November. Egypt has started setting a monthly fixed customs exchange rate since January 2017, following the flotation of the Egyptian Pound last November. The decision to keep the customs exchange rate unchanged is in line with the stable currency rate in the past period and the stability of the Egyptian economy Amr El-Garhy Finance Minister Ahram Online 31 st October 2017 Egypt s Net International Reserves (NIR) increased by USD168 million (M/M), reaching USD36.7 billion in October. According to the Central Bank Governor, Tarek Amer, Egypt repaid USD17 billion worth of foreign debts since floating its currency in November 2016 and would repay more USD8 billion in the coming period. The government also paid Libya a USD250 million installment for its USD1.5 billion loan, leaving USD500 million remaining and that would be paid in 2018 Rami Aboul Naga Central Bank Sub-Governor Enterprise 5 th November 2017 Egyptian expat remittances increased by more than 17% (Y/Y) since floating the Egyptian Pound in November 2016 till September 2017 registering USD17.4 billion compared with USD14.8 billion in the same period a year earlier. In September 2017, remittances increased by 24.4% compared to the same month last year reaching USD1.166 billion compared with USD937.3 million in September Egypt s government approved extending the Tax Disputes Law for another two years. The law was introduced in August 2016 and shifted responsibility for hearing such disputes from the courts to committees of independent experts. Since the law came into effect, disputes over EGP15 billion have been settled Amr El-Mounir Deputy Finance Minister for Tax Policies Reuters 1 st November

3 The board of the Egyptian Financial Supervisory Authority (EFSA) changed the authority s name to the Financial Regulatory Authority (FRA). On another note, the authority issued new regulations governing companies offering of shares on the Egyptian Exchange (EGX). The regulations obligate companies wishing to list new shares to register with EFSA, complete the requirements of conducting fair value and the issuance of an accredited disclosure for the offering. The decision is expected to encourage companies to offer their financial instruments within a short period of time, provided they abide by financial valuation standards in determining the shares fair value EFSA Statement EFSA Official Website 30 th October 2017 The Egyptian city, Sharm EL-Sheikh, hosted the World Youth Forum, under the auspices of President Abdel Fattah Al-Sisi, where dozens of youth from different countries all over the world gathered to exchange expertise in various fields. A wide range of topics are being discussed within the forum, including migration, refugees, democracy and globalization. The six-day forum aims to create a platform through which constructive dialogue between the government and future generations can take place. Egypt is working to play its historic role in formulating a new vision for peace and stability. We ask you to practice dialogue and coexistence based on objectivity President Abdel Fattah Al-Sisi Daily News Egypt 6 th November

4 EGYPT AT GLANCE EXCHANGE RATES USD EUR STERLING POUND 6 TH NOV TH OCT TH OCT TH NOV Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 EGP per USD EGP per Euro EGP per Pound Sterling STOCK MARKET ,072 EGX30 14,072 EGX70 6 TH NOV TH OCT 17 4 TH OCT 17 6 TH NOV , , , , EGX100 1,752 1,744 1, T-BILLS AUCTION AUCTION DATE 5 TH NOV TH OCT 17 5 TH NOV 17 INTEREST RATES GLOBAL COMMODITY PRICES 6 TH NOV 17 MATURITY (DAYS) TH OCT 17 6 TH OCT 17 AVERAGE YIELD (%) ND NOV OVERNIGHT DEPOSIT RATE OVERNIGHT LENDING RATE CORRIDOR RATE *AT JULY 2017 BRENT CRUDE* GOLD** WHEAT*** 1, *USD/BARELL **USD/OUNCE SOURCE: BLOOMBERG **AT MAY 2017 CURRENT* 18.75% 19.75% 19.25% , , **USD/BU PREVIOUS** 16.75% 17.75% 17.25% 7 TH NOV , , CONSUMER PRICE INDEX AND MAJOR COMPONENTS HEADLINE- ALL ITEMS FOOD AND BEVERAGES TOBACCO AND RELATED PRODUCTS CLOTHING AND FOOTWEAR HOUSING, WATER, ELECTRICITY AND GAS FURNISHINGS AND HOUSEHOLD EQUIPMENT MEDICAL CARE TRANSPORTATION COMMUNICATIONS RECREATION AND CULTURE EDUCATION HOTELS, CAFES AND RESTAURANTS MISCELLANEOUS GOODS AND SERVICES WEIGHT IN BASKET % 100% 39.92% 2.19% 5.41% 18.37% 3.77% 6.33% 5.68% 3.12% 2.43% 4.63% 4.43% 3.73% SEP 2016 SEP 2017 Y/Y (INDEX) (JANUARY 2010=100) % % 25.19% 25.02% 13.73% 35.32% 21.21% 37.61% 3.74% 42.40% 12.32% 28.10% 23.29% 4

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