The September 11 attacks:

British Conservatives & US Republicans ask:

6

The truth about the Iranian lobby

An AmericanIsraeliIranian making

What a mess we got ourselves into ?

4

ESTABLISHED 1945

Economics is everywhere, and understanding economics can help you make better decisions and lead a happier life. Tyler Cowen

An American economist, academic & writer 1962 - Present

63rd Year No. 19

$31.4bn is the cost of Iraqi bombings over 12 years Iraqi ministry of planning has announced lately that the damages caused by terrorist attacks to the state’s institutions, between the years 2004 and 2016, hiked to IQD 37tr- or $32bn. The defense ministry is the most harmed entity of all, with damages reaching IQD 15.35tr, Minister of Planning Salman AlGameeli reported. Bombings incurred all ministries a total of IQD 35tr (nearly $30bn) and other non-ministerial bodies the sum of IQD 1.6tr ($1.4bn), on top of which came the central bank with IQD 708bn losses. As for the governorates, Anbar came first in terms of destruction costs which are estimated at IQD 107bn, while damages caused to the governorates’ infrastructure (local administrations only) are worth IQD 154.99bn.

By Eiman Rashed

Geography has made us neighbors. History has made us friends. Economics has made us partners, and necessity has made us allies. Those whom God has so joined together, let no man put asunder. John F. Kennedy

/ Themeobserver.com

L.E 2.85

/ Themeobserver.com

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Cairo & Moscow discuss signing 4 agreements on El Dabaa Nuclear Plant Egypt is to partake in the economic conference in St. Petersburg on June 16

Cairo held preliminary talks with Moscow over signing 4 executive agreements on Dabaa Nuclear Plant, and had other discussions with The Export-Import Bank of Korea’s delegation on granting $3bn funds to implement several projects in Egypt. Minister of International Cooperation Sahar Nasr discussed with the Russian Ambassador to Cairo Sergei V. Kirpichenkov, at the presence of Minister of Trade and industry Tarek Qabil, enhancing joint economic cooperation. They have also considered the latest updates of the 2 agreements on

setting up the nuclear station with Russian financing, which were signed in November 2015. By virtue of these two, 4 principle deals, which are considered the green light to starting the project, were sealed. The meeting also saw conversing about boosting joint relations in different fields, including trade and industry. Kirpichenkov invited Nasr and Qabil to attend the economic forum that will be held in St. Petersburg from 16 to 18 June, under the auspices of the Russian president, and in which nearly 400 persons participate every year.

Dabaa

Wednesday, 11 May 2016

in

News

Numbers

$308m

tions in the field, including airport systems, infrastructures and security applications. Wessam Gamol, Smart World’s CEO, said: “The Airport Show Dubai is considered a pioneering platform for the airport industry’s stakeholders from around the world, and with the airports paying more and more attention to adopting new smart technologies, the demand on them is now accelerating their growth in the region”.

“We regard this exhibition as the perfect podium for displaying Smart World’s new collection of the services through which we can greatly contribute to enhancing qualities to provide more developed services at better costs”, he added. A recent study shows that the growing demand on smart technology will render the international market of smart airport a $13bn growth by the year 2019.

EGP105m

Egypt’s Orascom Construction has won two contracts worth €270m ($307.75m) for work on the third phase of Cairo’s third metro rail line, it said on Monday.

Egypt’s Palm Hills Development Company’s first-quarter net profit dropped by more than 40 per cent year-onyear to EGP105m, the real estate company said in a bourse statement on Monday.

Bahrain has awarded 12 tenders worth $55.3m) in the first quarter of 2016, and invited bids for 17 others worth BD101m ($266m) for projects related to roads, sanitary work and infrastructure upgradation.

China will invest $11.9bn this year in building aviation infrastructure, the official Xinhua news agency reported late on Wednesday, citing the country’s civil aviation regulator.

Japan’s monetary base stood at ¥386.19 trillion at the end of April, up 2.8 per cent from a month earlier, the Bank of Japan said last week.

Air Arabia on Monday declared that its first quarter net profit jumped by 34 per cent to Dh114m compared to Dh85m in the same period last year.

$55.3m

Smart airports to post $13bn growth by 2019 Smart World Company, a joint venture between Etisalat and Dubai South, participated in 15th Airport Show Dubai, the world’s largest platform for companies to present airport and aviation-related products and services. The event, held on May 9-11, represents a perfect opportunity for Smart World, the Arab Gulf’s technology services provider, to showcase its advanced information technologies and e-communica-

35th President of the USA 1917 - 1963

2.8%

$11.9bn 34%

Mohamed bin Salman's intelligence and Salman Al-Saud's wisdom

An image that reflects Saudi Arabia's new vision 2030

A wide controversy among the Saudi youth has sparked recently on social media over a picture that shows Deputy Crown Prince Mohammad bin Salman meeting the Scholar Mohamad Al'Arefe- follower of Islamic Awakening Movement- and Cleric Hamad Al Atiq- a fundamentalist following Al-Gammi Movement. This scene is regarded by millions of Saudis as unusual, for al'Arefe and Al Atiq are clear examples of the ideological conflict that has been going for so long in Saudi Arabia, among such movements. This image was taken at the meeting held by the deputy crown prince,

Deputy Crown Prince Mohammad bin Salman meeting the Scholar Mohamad Al'Arefe Hamad Al Atiq to which a number of bia will be built and Saudi figures and me- developed by the dia representatives of hands of them all". all movements and Besides, the journalbeliefs were invited to ists that attended the witness launching Vi- meeting, during which sion 2030, under the the prince answered auspices of King Sal- all their questions, man bin Abdulaziz. there were present It seems to send many characters of an indirect, yet pow- completely different, erful, message to all even opposing, viewstreams, which is: points and directions. "The new Saudi AraSome observers

Correction

believe that the prince aimed through this meeting to tell Saudis that achieving progress in their country and rendering Vision 2030 successful requires solidarity and cooperation, while at the same time leaving room for different opinions and exchanging viewpoints in a reasonable realistic way. Thus, many hope that the conflicting ideologies would get the message, and most importantly see beyond the end of their noses and comprehend that the new Saudi Arabia embraces everyone without exclusions, accusations or distrust.

By Rania Imam

Arab Republic of Egypt Ministry of Electricity and Renewable Energy Egyptian Electricity Transmission Company Gamasa 220/66/11 kV GIS S/S (Package B) Adjudication No. (62/2015/2016) Invitation for Bid 1. The Egyptian Electricity Transmission Company (EETC), has applied for a loan from the “European Development Partners” (EIB, European Commission, AFD and KfW) hereafter referred to as EDP’s to finance the power transformer Contract for Gamasa 220/66/11 kV GIS S/S. ‫توزيع جريدة‬

‫لل�صحافة‬

‫طبع مبطابع دار‬

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“Made in Egypt”

The first biggest campaign to support national industries and cut imports

11 May 2016

Ministers of telecommunications & finance discuss launching 4G technology Minister of Telecommunications and Information Yasser ElKady convened with Minister of Finance Amr EL-Garhy to talk over licensing the 4G technology. This comes under the telecommunication development plan that aims at improving provided Yasser ElKady services and maximizing investments in the sector and the state revenues. ElKady said that releasing this new technology is a step forward in the field, since it will have a positive impact on the internet and communication services, in terms of the speed, money, and quality. The four Egyptian telecommunication companies will be granted license to provide this technology, whose cost will be determined according to the needs of each of them.

Transactions of the Egyptian community in Kuwait decline by $1bn since the beginning of the dollar crisis

Recenlty, a number of local campaigns were launched lately under the name of “Made in Egypt” to support Egyptian industries. This follows launching similar campaigns abroad, starting from Netherlands, which come as an initiative by businessmen and economists to boost Egyptian exports. The economist Khaled El-Shaf’y said that every Egyptian must contribute to protect and promote national industry, which would require the products to have certain specifications and qualities to be appealing to all consumers, especially abroad. He added that the “Made in Egypt” campaign includes setting a comprehensive plan by supporting all workers in the na-

tional industry and settle any problems they face to develop it. Providing highquality Egyptian products will help open up new markets, cut imports and reduce the wide gap between them and exports. Moreover, under this campaign, officials in ministries, chambers of commerce, industry federation and major companies will be reached out to engage in the process through which Egyptian products will be able to compete internationally. All those interested in the sector will be sought for moral support. They will be asked as well to do some related research. Later, an international conference will be held in which government and specialized authorities and a number of

Founded in 1958 by Ahmed Fouda

1st edition 6165 issues rd

Consumer Protection Agency (CPA) called on all consumers to review the value of purchase bills and remain cautious when dealing with auto companies. This warning follows several complaints that when buying cars they received invoices for less than what they actually paid. Within the framework of cooperation between all government institutions and efforts to control market and protect both citizens

th

Authorised by the Supreme Council of Press "An Egyptian Joint Stock Company" Over 50 years covering Middle East and Gulf Economic News Publisher and Chairman Mahmoud Fouda

[email protected] Editor-in-chief H.A.Raouf Consultant of ME Affairs Yasmine Fouda

[email protected] Layout Ahmed Saber Translator officer Aghareed Mahmoud

Address Head office 41Sherif St., Cairo, Egypt Tel: 00.202.23926919 Fax: 00.202.23939732 Mob: 01222174062

ent sectors, like tourism, agriculture, real-estate and construction among others, are allowed to participate to promote their products abroad. This initiative is adopted by 2 young businessmen, Tamir Salim and Mohamed Shaarawi who assured that the main target of this campaign is to showcase the Egyptian products in a different unique way.

and state’s rights, necessary legal measures were adopted against the companies involved in such acts, according to CPA’s Chairman Atef Yacoub. Moreover, the complaints were referred to the Egyptian Tax Authority. A number of companies, working inside Egypt, were busted on the above mentioned accusations, which are: Auto Samir Rayan (Nasr City), Elmasria for Cars Company (Maadi Corniche), B Auto (Sheraton),

National Motors (Nasr City), and Egyptian for Engineering Studies (6th of October). These companies mislead consumers and evaded taxes by giving them invoices with values less than what they paid, which harms their rights and interests, especially if a flaw showed in the bought car. In this case, customers will only get back the sum written on the invoice. Moreover, through these illegal acts companies pay

tax dues less than what they are supposed to, which harms the state’s revenues. By committing such actions, companies have violated Article 5 of Law No. 67 of the year 2006, and Article 15 of its executive regulation. Yacoub called on citizens to cooperate with the agency and help it better control the market by reporting any violations or complaints.

By Alaa Abdelwanis

EGX 30 re-faces resistance level at 7700 points

Raafat Abdel Moez, Technical analyst at Osool ESB Securities Brokerage, said that Egyptian Exchange (EGX) benchmark index EGX30 re-focuses this week on resistance level at 7700-7750 points, which is expected to hinder it from keeping moving upwards. In a statement to MEO,

the analyst said that investors are confused, because EGX’s management still maintains its decision to uphold daily trading on Beltone stock. Moreover, it started to cancel dealings with certain prices, based on Article 21 of Money Market Law. This article is considered loose, since it gives the stock man-

agement the right to end any trading with unreasonable prices. The difference between reasonable and unreasonable prices is subject to individual judgments, and it is not on the stock management to do that, but it is the job of research departments at money market companies. That’s why, the

problem basically emerges from Article 21 and not what the stock does, since they only apply the law. As for the index of small and medium stock EGX70, Abdel Moez said it focuses on resistance level near 375 points, which is forecast to stop it from moving upwards.

AFC’s CEO & Managing Director Saad Abou El-Maaty:

[email protected]

The countdown to the 31st annual conference on water treatment technology starts

Annual subscription rates Egypt L.E 275 Arab Countries US$ 375 Rest of The World US$ 420 [email protected] Al-Ahram Distribution in Egypt Al-kawmia Distribution in the world

seeks boosting the value of Egypt’s manufactures to stand out and compete in international markets. By the same token, a set of businessmen and youth launched a similar campaign in a number of foreign countries under the name “Made in Egypt” to encourage exports. It included organizing a series of fairs that visit as many countries as possible, starting from Netherlands. Companies from differ-

t p y g E in

Consumer Protection Agency refers 5 Auto companies to Egyptian Tax Authority on evasion

63 year Issue 5/2016 - 19 edition

Editors Amira Elhamy Rania Imam Eiman Rashed

experts on economy and industry will partake. El-Shaf’y assured that any Egyptian interested in engaging in the campaign is welcome. Meetings with government officials are currently held to agree on specific bases according to which the campaign will be launched. This will be carried out through setting-up connection channels with major companies to adopt and support the idea. The campaign mainly targets promoting Egyptian products, after their development to conform to world specifications, nationally and internationally. In addition, the campaign

e d Ma

Central Bank of Egypt’s Governor Tarek Amer’s visit to Kuwait came to discuss the drop in Egyptian expatriates' transfers by nearly $1bn, since the crisis of the Egyptian pound broke out, reported some Kuwaiti resources. Amer was cited saying: “The Tarek Amer unofficial transactions represent a huge stumbling block and affect one of the most important foreign currency sources in Egypt, namely transactions of Egyptian expatriates”. He added that the difference between the official and parallel dollar exchange values ranges from 15 to 20 per cent. During the visit, Amer tried to fix this decline by encouraging investing in “Belady” dollar certificate, which was issued February 26, 2016 for Egyptians working abroad.

Saad Abou El-Maaty

The countdown to the 31st conference on water treatment technology, which Abu Qir Fertilizers and Chemicals Company (AFC) holds every year, has started. This year the event will take place from 17 to 19 May in Four Seasons Hotel- San Stefano- Alexandria, and will see the contribution of 15 Arab and foreign states

and more than 700 people from around the world. On the sidelines of the conference, an industrial exhibition will be held in which the participating companies will showcase the latest equipment and techniques in the field. AFC’s CEO & Managing Director Saad Abou El-Maaty, who will

chair the conference, announced that the key axes that will be discussed this year will be: · Water scarcity and providing alternative resources · Latest water treatment technologies adopted worldwide · The environmental impacts of industrial projects, among other topics.

Ahmed Ezz’s trail over iron licenses adjourned to November

Cairo Criminal Court decided to adjourn trail of businessman Ahmed Ezz and Amr Assal, Former Chairman of Industrial Development Authority, in the case known in media as “Iron licenses” to early November. The decision came because the court, presided by Judge MoAhmed Ezz hamed Al-Kiatty Al-Kishery, the membership of counselors Adel Mahdoor and Mohamed Kamil and Secretariats Ahmed Fahmy and Ayman Abdel Latif, did not receive the case’s technical report.

By Hossam Abdel Haq

Egypt-South Korea Business Forum starts in Cairo

The Egyptian-South Korean Business Forum starts Thursday the 12th of May in Cairo. The forum discusses ways for boosting bilateral economic cooperation and exploring investment opportunities in the infrastructure and energy projects in addition to the Suez Canal. Organized by the Egyptian Businessmen Association and the Korea International Trade Association (KITA), the forum is held under the auspices of Egyptian Trade and Industry Minister Tarek Qabil and South Korean Trade Minister Joo Hyung-hwan. A high-profile South Korean delegation comprising representatives of Hana Bank, the South Korean Federation of Small and Medium-Sized Enterprises and the Seoul International Women's Association is participating in the forum, as well as, a number of well-known companies, notably Hyundai Cars, Samsung and SGS Construction are attending the forum. Egyptian President Abdel Fattah El Sisi and his South Korean counterpart Park Geun-hye had attended on March 3 the signing ceremony of nine agreements on joint cooperation in several fields including higher education, justice, industry, trade, railways and upgrading ports.

Volkswagen fined EGP 50K and Skoda - Artoc Auto fined EGP 20K

Cairo Economic Court ruled in case no. 1291 of the year 2015 fining Artoc Auto’s Chairman Yussef Ibrahim the sum of EGP 20K. It also obliged the company to pay legal fees and another EGP 1001 to the plaintiff. Whereas, in case no. 1396 of the year 2015, the court fined Karim Basil, Volkswagen’s Legal Representative and Chairman, the sum of EGP 50k. The 2 cases started when the Consumer Protection Agency received complaints that cars sold by these companies had flaws, but they refrained from fixing them. Thus, the agency took necessary measures and referred them to prosecution and the court then issued the abovementioned verdict.

www.meobserver.org

11 May 2016

The market ended all last week’s the sessions in red except for Thursday’s session when it recorded a 1.2 per cent hike. The change in trend came on the back of the ministry of finance’s confirmation that the application of capital gains tax on listed companies will be postponed till the end of May 2017. Prior to this surge the market was losing ground under a selling spree by both Arabs and foreigners during both Tuesday and Wednesday. Sunday and Monday were off in the market to celebrate labor day and Easter. Overall the market lost almost three per cent in the first week of trading in May on transactions that valued at LE3 bn compared to LE3.9 bn in the previous week.

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Banks & Companies r o o

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Zahraa Maadi Investment & Development (ZMID)

Zahraa Maadi Investment & Development’s business results, for 2016 first quarter, show a 36.38 per cent growth in profits, compared to last year. ZMID’s unaudited financial statements record EGP 43.13m profits, against EGP 31.62m during the same period of last year. The company had posted in 2015 net profits of EGP 161.85m, compared to EGP 112.5m in 2014, with a 43.6 per cent increase. Zahraa Maadi City’s general planning project includes establishing one-stop residential area, parks, light industry zone, and public, administrative and commercial buildings. The city stretches for 1110 feddans owned by ZMID, and the project was approved by Cairo governorate’s decision no. 186 of the year 1979.

Emaar Misr

The first quarter results of the real estate developer showed a 47.4 per cent urge in its net profits compared to the previous year to reach LE254.5m. Meanwhile, the company’s sales declined by 20 per cent to come at LE597.4m Emaar Misr, a unit of Dubai’s Emaar Properties, floated13 percent of its shares and in an initial public offering in June. It was the largest offering on the Egyptian ex-

change since 2007. The company’s activities include designing, constructing and management of power stations as well as real estate development, hotel management in addition to financial leasing. ­­­The company’s projects portfolio valued at LE53bn include Marassi resort in the Norther Coast, Up town Cairo in Mokattam area and Mivida project in the fifth settlement east Cairo.

The Eurasian Union & Egyptian Stock

Following the approval of the Eurasian Economic Union, Egyptian Stock Market (EGX) will host the union’s 22nd annual meeting, which will be held next November, with nearly 30 chairmen of European and Asian stocks

The private equity firm is looking for a financial house to evaluate the hospitals group it plans to list on the Egyptian stock exchange. The company is also preparing the prospectus of the offering which would be in the form of a capital increase

participating. EGX decided to hold the event in Sharm El-Sheikh. Dr Mohamed Omran, Chairman of EGX, said that choosing the Egyptian stock to host these annual meetings proves how much international organizations

Abraaj Group and would include both a private placement and an IPO. Cleopatra Hospital, the to-be -listed group, includes four private hospitals: Cleopatra, Cairo Medical Center, Al Shorouq and Nile Badrawi. The Egyptian regulator has approved the listing and EFG-Hermes is

Cleopatra Hospital

Cleopatra Hospital plans to attract new capital investments, as it started to adopt necessary procedures for launching public and private offerings for 40m of its stocks at maximum, namely 25 per cent of the company’s total capital stocks listed in EGX. The private offering addresses individual investors, entities working in securities and money institutions, while the public one targets the audience in the Egyptian market. The principle shareholder will sell stocks for the same prices to both public and private sects. Following this “combined offering” and starting trading in EGX, the company will issue stocks to increase its capital, 40 stocks at maximum, provided that the number of these is equal to that of the offering, after excluding any shares that might be re-bought by the principle shareholder to sustain and re-balance the price of stocks. The right to underwrite the increasing capital stocks is entitled to the shareholder selling

through the offering. Moreover, the underwriting will be for the final price of the offering which will be announced according to EGX’s approved offering publication. Cleopatra Hospital intends to allocate this increase in capital to support and finance its expansions plans that come under its development strategy. For, the company has received the approval of necessary monitory entities to be listed in EGX in April 2016. It is currently following the necessary legal procedures for approving the prospects from EGX and Egyptian Financial Supervisory Authority (EFSA). Cleopatra Hospital’s CEO and Managing Director Ahmed Ezzeldin said: “The company, which traces its roots back to 1976, consists of four hospitals: Cleopatra Hospital, Cairo Specialised Hospital, Nile Badrawi Hospital, and AlShorouk Hospital. It is the largest private hospital group in Egypt, regarding the number of beds and

appreciate the steps taken by it, concerning emerging markets. It also stresses on the importance of latest EGX’s efforts to strengthen regional and international relations, for the deep impact this has on the market.

managing the sale. Abraaj plans to retain a stake in the business following the IPO. Abraaj, which manages about $9.5bn in assets, has made 28 investments in the health-care industry globally, deploying more than $1bn.

subsidiaries. The company is also planning to establish clinics in the new urban communities». «The company intends to use the proceeds of the capital increase subsequent to the combined offering to support growth plans and finance the capital expenditures of the planned expansions at AlShorouk and Cleopatra hospitals, as well as purchase a plot of land in New Cairo to establish a new hospital,» he added. It is worth mentioning that the operational unaudited results of the group in 2015 showed that the company’s profits amounted to EGP 741m. The gross profit registered EGP 234m, while the operational profit, before taxes, interest, depreciation, and amortization, recorded EGP 183m. The total net profit reached EGP 52m. Besides its subsidiary hospitals and clinics, the company plans to set-up independent medical centers in each of its hospitals, and each with a specialty, like transplantation and radiology...etc.

$3bn

The African Export-Import Bank (Afreximbank) will seek to raise around US$3bn this year via Eurobonds, syndications and bi-lateral and institutional lending in order to finance its activities.

500,000

Four Egyptian banks will be arranging the biggest financing in the history of the country's housing sector worth EGP20bn ($2.25bn) to build 500,000 low-income homes.

$500bn Saudi Arabia’s projects market in 2016 boasts $500bn worth of schemes in the pre-execution phase spanning the power and water, transport, hydrocarbons and construction sectors.

$1.44bn

Abu Dhabi General Services Company (Musanada) said work was progressing well on the $1.44bn Mafraq-Ghuwaifat International Highway project, linking western region cities and facilitating commercial transport on the international road.

70.7%

Khaleeji Commercial Bank (KHCB), a Bahraini Islamic retail bank, has reported a growth of 70.7 per cent in net profit for the first quarter at $7.43m when compared with BD1.67m for the same period last year, reported the  Gulf Daily News, our sister publication.

Al Arafa for Investment And Consultancies (AIVC) The garments group posted consolidated net profits of $12.452m in 2014/2015 , almost the same level of its profits a year earlier . The low growth rate in the profits came on the back of its exports to Europe being negatively affected by the strengthening pound in exchange of the euro and pound Sterling. The company also said in a statement it sent to the stock exchange that its profits were affected by the fact that it had to transfer it in its financial statements to dollar which gained momentum in exchange of the euro and sterling.   Al Arafa Investments and Consultancies holds approximately 14 per cent market share of the UK formal men’s wear market through its subsidiary “Baird Group” that manages 235 stores in UK. It owns the Concrete brand which is considered the largest retailer for luxurious men’s & kids’ wear in the Country.

3

CBE: Five banks acquire 59.6% of banking sector total assets

Five banks acquired 59.6% of the total assets’ size of the Egyptian banking sector, in which 40 banks operate, according to the Central Bank of Egypt (CBE). In its quarterly report, the CBE stated that banks operating in the local market held EGP 2.485tn in total assets as of the end of December, of which approximately EGP 1.481tn assets were held by the largest five banks operating in the market. The report added that the largest 10 banks operating in Egypt hold approximately 72.358% of the total assets in the banking sector, an asset volume of about EGP 1.798tn. While the CBE did not disclose the names of the top five or ten banks, Daily News Egypt has learned that the list of the top five banks in terms of assets’ size includes the National Bank of Egypt, Banque Misr, the Commercial International Bank, Qatar National Bank Al-Ahli, and the Banque Du Caire. The five banks that make up the remainder of the top ten include, the Arab African International Bank, HSBC Egypt, AlexBank, Faisal Islamic Bank of Egypt, and Crédit Agricole Egypt. Banking customers had deposited EGP 1.383tn in the 10 largest banks in Egypt at the end of December, which represents 72.47% of the total customer deposit volume. Customer’s total volume of deposits reached EGP 1.908tn. The five largest banks held EGP 1.13tn, a 59.218% share of the total deposit volume.The CBE also reported that the 10 largest banks in the marketed had collected approximately 67.68% of the balances of loans and discounts offered to the customers by the end of December. The report showed that the size of these balances reached about EGP 791.499bn by the end of 2015. The share of the largest 10 banks reached about EGP 353.716bn, while the five largest banks acquired 54.264% of the total of these balances, a share which amounted

to about EGP 429.5bn. The CBE’s report showed also that the top ten banks acquired about 79.05% of the total banking sector’s investments in securities and government treasury bills. The portfolio of these investments at banks together amount to about EGP 1.105tn. The share of the top 10 banks amounted to EGP 874.053bn, while the share of the largest five banks amounted to EGP 750.103bn, an estimated 67.84%. As for the size of the bonds and longterm loans at banks, the CBE said their balance reached EGP 43.556bn by the end of December. The share of the top 10 banks reached EGP 27.657bn, an estimated 63.497%, while the share of the largest five banks reached EGP 26.736bn, an estimated 61.383%. The capital of the 10 largest banks in Egypt amounted to about EGP 56.149bn as of the end of December 2015, which represents 58.204% of the capital of the 40 banks operating in the Egyptian market, amounting to EGP 96.468bn.The capital of the five largest banks amounted to EGP 48.696bn, an estimated 50.478%, according to the CBE. The CBE added that the 10 largest banks operating in the local market compiled provisions amounting to EGP 38.751bn in order to face bad debt, an estimated 58.206% of the total provisions in the banking sector as a whole, which amounts to EGP 66.575bn. The five largest banks immunised themselves against bad debt by composing provisions amounting to EGP 30.181bn, an estimated 45.333% of total bank provisions. In order to counter any surprises in the future, banks working in the local market compiled reserves worth EGP 44.751bn at the end of December, of which EGP 36.234bn are reserved in the top 10 banks, which marks an estimated 80.968% of their value, and about EGP 24.897bn in the largest 5 banks, an estimated 55.634%. - DailyNewsEgypt

Abu Dhabi Islamic Bank- Egypt (ADIB) Abu Dhabi Islamic Bank- Egypt’s profitsfor 2016 first quarter- increased compared to the same period of last year. The bank’s standalone financial statements, for the period ending March 31, show net profits less tax of EGP 83.7m, against EGP 62.4m, during 2015 first quarter. Commenting on its standalone financial statements and profits, the bank said its total revenues reached EGP 455m, with a 43 per cent or EGP 136m increase than the same period of last year. Net financing revenues reached EGP 307m with an EGP 90m, compared to the same

period of 2015. Net banking fees and commissions are estimated at EGP 84m, with an EGP 20m increase, while net trading revenues increased by EGP 26m reaching EGP 64m. Total deposits, of 2016 first quarter, grew by 7 per cent reaching EGP 22bn, and total funds are valued at EGP 12bn, posting a 6 per cent growth rate, the bank reported. ADIB’s total assets grew by 13 per cent, namely EGP 3bn, to reach EGP 27bn, while tax dues decreased by EGP 30m, 23 per cent, to EGP 100m, compared to the same period of last year.

20%

Orascom Telecom Media and Technology (OTMT) The regulatory violations hindering Beltone’s acquisition of CI Capital will be resolved as early as next week. The Egyptian Financial Supervisory Authority might grant

OTMT’s majority shareholder an exemption from having to issue a mandatory tender offer to buy out minority shareholders in OTMT, noted Enterprise. The mandatory

tender offer, according to the regulator should have been triggered back in 2012 when OTMT’s ownership structure changed during the company’s demerger.

Orascom Construction(OC) The construction and fertilizers company appointed Jérôme Guiraud as non-executive Chairman of the Board, replacing Nassef Sawiris, until the dissolution of the AGM on 25 May. Guiraud will represent NNS Capital

and the Sawiris Family together holding 51 per cent of the company’s equity on the Board. Guiraud has been CEO and director at NNS Capital since 2008, and currently sits on the board of OCI NV.

Oil prices fell last week as investors cashed in on a 20-percent rise over the past month, outweighing the impact of crude production cuts in Canada where a huge wildfire has disrupted oil sands operations.

400 kV

Bahrain is set to launch a major 400 kV electricity transmission line aimed at reducing short circuits and ensuring transfer of electricity from the production plants to load centres across the kingdom.

14 banks among Egypt’s top taxpayers for this season: head of Large Taxpayer Center

For the current tax season 2015/2016, 14 banks came among Egypt’s top taxpayers, according to Osama Tawakol, head of the Large Taxpayer Center at the Egyptian Tax Authority. Tawakol said the 22 names on the list include 14 banks, two telecommunications companies, and five petroleum and petrochemicals companies. He added that the Commercial International Bank (CIB) topped the list of outstanding taxpaying institutions, followed by Qatar National Bank Al-Ahly (QNB), HSBC, Banque Du Caire, the Arab African International Bank (AAIB), and Alexandria Bank.

The list also included Etisalat Misr, Citibank, Telecom Egypt, Faisal Islamic Bank, Credit Agricole, Sidi Krier Petrochemicals Company, Emirates NBD, and the Arab Petroleum Pipelines Company. Also on the list were the Housing and Development Bank, National Bank of Kuwait-Egypt, Exxon Mobil Corp, SAIB, Arab Company for Projects and Urban Development, ENPPI, Bank Audi, and United Gas Derivatives Company. ETA aims to collect tax proceeds of EGP 342bn for this fiscal year, from EGP 372bn, having excluded EGP 30bn since the Value Added Tax (VAT) was not imposed. - DailyNewsEgypt

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M ENA R egion

www.meobserver.org

11 May 2016

The September 11 attacks:

An AmericanIsraeliIranian making

The Author Louis Cammarosano wrote that Saudi Arabia played a great role in maintaining the dollar as the world's key reserves currency

Tablet Magazine unveiled in a report the truth about the Iranian lobby in the USA and the secret role it plays to influence the American society and decision-makers. Its efforts resulted into concluding the Nuclear Deal between Iran and the P5+1.

Early March 2016, a US federal court ordered Iran, in case no. 3229, to pay the sum of $10.5bn in damages to the families of those killed in the September 11, 2001 attacks. This comes following accusations by the US administration that Iran struck a secret deal with

Here are few questions that need to be answered: USA plays for which team, what are the 28 papers, and what is the role of the Iranian and Israeli lobbies in these attacks? Bob Graham, former senator and chairman of the Senate Intelligence Committee, is one of the The magazine mentioned most informed figures about documents related in its report names of to the September 11 attacks, and he wrote about many US high-profile figa shadowy Saudi role in the attacks in his novel ures that the Iranian lobby "Keys to the Kingdom". He emphasized that the and managed to commuconfidential information reported in a 28-page file nicate with and even influtrace the attacks to a network of people who are ence. Moreover, it succeeded believed to have started sponsoring terrorism folin being present in and affecting lowing their arrival in the US. "I do not believe that The National Iranian American Coun19 persons- most of who do not speak English, cil (NIAC), which was clear in the growing rapprochement between the US and Iran. have never been to the US, and some of who The report focused on the major role played by have not received a high school education, Trita Parsi, the Iranian immigrant who moved to the US can execute such a complicated mission in 2001 from Sweden where his parents fled before the Irawithout a substantial back up from inside nian Revolution. Parsi is "the one for whom all glasses are the US", he added in an interview with raised in Washington these days, seeing he is the idol of "60 minutes" show, assuring that rapprochement between his original country Iran and "the support structure that made residence America", said the report. 9/11 possible" did not come from Parsi is the founder and representaa specific source. tive of NIAC, which is located in the In the same context, Chief USA, and he is considered a winNational Security Correner in the ongoing battle since spondent for CNN Jim 1997 between the US and Iran Robert Pape Sciutto said that the conover the latter's nuclear cacealed files from the 9/11 pacity, which paves the way investigation committee's for more reconciliation bereport might include evitween the 2 countries. The dence on links between report identifies some of a Saudi official to the the lobby's key members: Reza Aslan Sahar Nowrouzzadeh, attackers. "Case centthe White House’s Iran ers on 28 pages of that desk officer, is a former 9/11 commission report. NIAC employee. NIAC’s Those are 28 pages there advisory board includes are so classified and they Philip J.crowley two former U.S. diplomats, are set to focus on the role Thomas Pickering, a former of overseas governments in ambassador to Israel, and John the 9/11 plot. Saudi Arabia Limbert, who was held hostage by has long denied any involvethe revolutionary regime in 1979. Past ment and never been impliSahar Nowrouzzadeh speakers at NIAC leadership conferences cated. Of course, the majority of include Joe Biden’s National Security Adviser the suicide bombers in 9/11 were Colin Kahl, and the White House’s Middle East DirecSaudi but we're talking government tor Rob Malley. Other past speakers from the political realm here," Sciutto said. He added " Now include: Robert Hunter, former U.S. ambassador to NATO; PJ that the key thing about these 28 pages Crowley, State Department spokesperson under Hillary Clinin the 9/11 report and CNN, we did our ton; Hans Blix, former director general of the IAEA. Other own reporting on this going into last year is reputable names include figures like Aaron David Miller Aaron David from the Wilson Center, Robert Pape from the Uniit centers on one particular Saudi government versity of Chicago, and Suzanne Maloney official and did he have knowledge of the 9/11 from the Brookings Institution. Indeed, attacks in advance. Did he provide support? the impressive roster of speakers There's evidence that he met with some of the at NIAC events is evidence of hijackers." Parsi’s assiduous cultivation of friendly contacts, both here and in Iran. The biggest NIAC booster in academia is the author of The Israel Lobby himself, Harvard University’s Stephen Walt. The in-house portion of Parsi’s network also includes public intellectuals, like Iranian-American authors Hooman Majd and Reza Aslan, as well as figures from Iranian business concerns, like Atieh Bahar, who are reportedly close to the Iranian regime, especially former President Akbar Hashemi Rafsanjani.

The truth about the Iranian lobby

a group affiliate to Al-Qaeda and financed them to recruit more members and execute the attacks. Meanwhile, Western media and a number of Congressmen launched a furious assault against KSA to distract attentions away from this rule.

President Hosny Mubarak was not fooled by the scenario of the attacks and he doubted the possibility of any Arab or Muslims being involved

Fingers pointing to an Israeli- American involvement: Evidence came out unveiling that the US and Israel co-conspired in the attacks, for over 700 Jews who were employees at the World Trade Center did not show up at work on September 11, which proves their knowledge of the time of the attacks. This was to create a new enemy for the whole world to fight, namely Islam and Muslims, under the pretext of countering terrorism and extremism. We have seen how Iraq and Afghanistan paid a high price for these attacks, because of the American plot executed meticulously. This scenario was revealed by Thierry Meyssan, a French journalist and political activist, who questioned in one of his books the Arab involvement in the attacks, and refuted the American stories, consequently sparking a wide international controversy. He said that the fourth plane they claimed it crashed into the Pentagon is a lie, for no plane hit the building, adding that what happened was entirely an American scheme. For, the Boeing 757-200 is a huge plane with the capacity to carry 239 persons and can travel 900km/hour, and if it had truly struck the Pentagon, it would have caused way more damage than could be imagined. Moreover, he wonders why its ruins were not found. President Hosny Mubarak: The attackers flying the plane were not amateurs but rather professionals Mubarak questioned the attack on the World Trade Center and that any Arabs or Muslims might be involved. On September 15, he said to CNN that whoever carried the attack must have flew more than once over the area to know what hindrances they might face when flying on a low level. When he was asked by the interviewer if he suggests that the attack is in fact an American internal operation, he responded quickly that he does not want to jump to hasty conclusions. He also said that, out of his experience as a former pilot, he assures that the attackers were not amateurs but rather professionals who must have practiced several times on the mission. For his part, Director-General of ISESCO Dr Abdulaziz Othman Altwaijri, said that proposing and discussing a bill to trail and accuse KSA of 9/11

attacks proves the US administration's cunning and manipulation. "I have always believed, and still does, that 9/11 attacks are an Iranian-Israeli making. Several clues have emerged, but the Zionist media is trying to cover," he added. He pointed out that powerful professional media outlets are the way to face this American blackmailing against KSA is Risks of the Saudi threats to Washington. A number of experts believe that the Saudi threats to the US manifest its choice to blowing it all away for everyone. While Washington, on the other hand, sought to press the Congress against passing the bill that would allow them to sue KSA over 9/11 attacks. Last month, senior officials at US Secretaries of State and Defense warned members of the House of Representatives' armed forces committee that passing this bill jeopardizes the American economy. The Author Louis Cammarosano had previously tried to analyze the repercussions of any USSaudi political crisis on the economy, concluding: "Saudi Arabia has a great role in maintaining the dollar as the world's key reserves currency". Cammarosano pointed out that it is not important how much oil KSA sells to the US, especially since it does the same to many other countries across the world. But, what really matters is what it does to keep oil priced in US dollars at OPEC, which means that it holds its position as the main reserve currency to its member states. This mutual agreement has been going on since the 1970s, which created the phenomenon known as "Petrodollar" which in turn resulted into a non-stopping international demand on dollars, both in the form of cash and securities. Because of its heavy debts, Washington sustains its budget through dollar bonds mostly sold to foreigners, which means that it must always ensure that there is a high demand on its currency. As for the current US presidential candidates' stance on the bill, the Republican Donald Trump said that the main reason his country supported Saudi Arabia is because it needed oil, but now it does not, adding that in case the American leadership is changed, they won't need any of the Saudi oil. "I think if Saudi Arabia was without the cloak of American protection of our country’s… I don’t think it would be around. It would be, whether it was internal or external, it wouldn’t be around for very long. And they’re a money machine, they’re a monetary machine, and yet they don’t reimburse us the way we should be reimbursed,'' he added. The Democrat candidate Hillary Clinton reportedly supports the bill, as well. This means that the US, under its new president, will probably sue the Saudi regime.

E.R

Saudi Arabia: Will maintain its stable petroleum policies Robert Malley Joe Biden

Thomas Pickering

Colin Kahl

Saudi Arabia's new energy minister said on Sunday the world's largest crude exporter was committed to meeting demand for hydrocarbons from its customers and would maintain its petroleum policies. "Saudi Arabia will maintain its stable petroleum policies. We remain committed to maintaining our role in international energy markets and strengthening our position as the world's most reliable supplier of energy," Khalid al-Falih said in an e-mailed statement. "We are committed to meeting existing and additional hydrocarbons demand from our expanding global customer base, backed by our current maximum sustain-

able capacity." Since 2014, Saudi Arabia has led OPEC through a new survival-of-the-fittest strategy aimed at defending market share rather than reducing production to support oil prices. Falih's comments on Sunday support analysts' views that no shift in Saudi oil policy is likely as a result of his appointment. Falih's appointment was part of a bigger Saudi shake-up announced on Saturday as King Salman restructured some big ministries in a major reshuffle intended to support a wide-ranging economic reform program. As part of the restructuring, the Pe-

troleum Ministry has been renamed the Ministry of Energy, Industry and Mineral Resources. "The creation of a new Ministry in Saudi Arabia that brings together the Kingdom's abundant and unrivalled energy and mineral resources and industrial capabilities is in line with the ambitious objectives of Saudi Vision 2030," Falih said. "Saudi Arabia will maintain its stable petroleum policies. We remain committed to maintaining our role in international energy markets and strengthening our position as the world's most reliable supplier of energy," Khalid al-Falih said in an e-mailed statement.

Khalid Al-Falih

11 May 2016

Interviews

www.meobserver.org

5

Hossam Heiba, Investment Manager at Al Ahly for Development & Investment:

Bedaya fund is negotiating with 3 banks to secure financing for Bedaya’s EGP 15m light system factory Middle East Observer interviewed Hossam Heiba, Investment Manager at Al Ahly for Development & Investment, to discuss Bedaya Fund’s negotiations with banks to secure dollar loans to import machinery and equipment for its factory. The company, is affiliate to The General Authority for Investment. Heiba talked about small and medium sized enterprises' means to encourage and finance them as well as his thoughts on the economy. Tell us about the latest updates of Bedaya Fund. We are currently negotiating with 3 banks to get financing in dollars, so we can import machinery to operate Bedaya’s EGP 15m factory for light systems. The land parcel and the building are already secured, and we have contracted on the equipment with Chinese suppliers. But, the money is not transferred yet since it is hard to provide foreign currency. That’s why we are trying to find the perfect way to fund the project for it to be economically fruitful. How did the banks respond during negotiations? They definitely were not hindering our efforts and were rather very helpful. Yet, they face a problem with dwindling dollars. We are expecting to hear from them within 2 weeks. What about the project’s feasibility studies? The feasibility studies were conducted at a certain dollar exchange value, but it increased later by 15 per cent. That’s why, we are working on them again, trying to figure out the best way to achieve the project. We refuse to turn to black markets to secure our need for dollars.

Tax and insurance measures should be facilitated to encourage small projects

Banks now focus on small enterprises that need from EGP 500K to 1m funds. The banking sector cannot handle all these enterprises, for there are too many of them. Thus, they should turn to companies that finance micro-enterprises What kind of problems did you face when operating the factory? These would be the usual problems that are recurrent in Egypt, namely securing foreign currency to import equipment and loans from banks which took way more time than the regular and such enterprises cannot afford that. What do you think the best way is to develop small and medium-sized enterprises? The state has to ease procedures, trade and industry licenses, and dealings with tax and insurance authorities for these companies, for they face a lot of obstacles, especially with the latest two. Moreover, the term small and medium-sized enterprises must be re-defined to comply with world standards, i.e., to specify their capital and the size of sales and labor.

How do you see the Central Bank’s recent definition of small enterprises? I think it needs few adjustments, because some of the enterprises it included had more than EGP 100m sales, 220 employees and EGP 50m capital. Such are upper medium-sized and just medium or small. Moreover, banks now focus on small enterprises that need from EGP 500K to 1m funds. The banking sector cannot handle all these enterprises, for there are too many of them. Thus, they should turn to companies that finance micro-enterprises. Are there any other incentives to encourage small and medium-sized enterprises? Yes, indeed there are. This could be carried out through different national enterprises or provisions to ministries in which

Hossam Heiba and MEO reporter state and formal investors.

Hossam Heiba small enterprises have no more than 5 per cent stake. This should be boosted, because it is not enough. Moreover, there should be more drives and encouragement through granting more privileges to major companies that deal with small and medium-sized enterprises. In addition, quality standards should be laid down, and the more these companies comply with them, the more they will be awarded through tax facilitations and others. All this will

encourage small and medium enterprises. What about the informal sector and turning it into a formal one? This sector must be encouraged to drive it to join the formal economic system which would result into a great balance in tax and different facility levies. Most informal economy workers don’t operate through official paths which represents a burden to the

Does Nile Bourse have a role to play in financing small–sized enterprises? I think the need for that will emerge later and not today. Small-sized enterprises should be revitalized first to attract investments, which would present later the need to increase capital or disengage from projects through Nile Bourse. However, this sector is not appealing to investors right now, so they do not turn to that bourse but to other companies with less problems. It could be said that tax facilitation and not exemption is the major factor to revitalize this kind of enterprises. We do have some related experiences in

domestic market, for as of 2006 and 2007 when taxes were reduced, the state’s levies increased. That’s why, a directorate could be set-up especially for small portfolios with a manager experienced in this field. Do you think the government will achieve the targeted 5 per cent growth rate? Well, the status-quo proves the opposite. The economic growth requires higher GDP, more foreign investments, and better industry and trade indicators. There are all hard to achieve amid the dollar crisis. Finally, I call on state officials to explain to us how they plan to achieve these rates.

By Mahmoud Hammad

Tourism Travelstart Egypt Wins Best Online Travel Agency for Third Consecutive Year

s e v e e R s a l o c i N y b s e i r e v o c Important dis

e reveals that th formation which for , ed er gn ch si ar de se re ly al itish tomb was actu th density and The famous Br who assumed 18 s, Queens of the Nicolas Reeve Tutankamon; he the beautiful ng of ki e b m on r to fo e t no of that th e th nd northern wall ti is behi added that the ded by the red Queen Nerferti ly nt ce re , vi on di nkam the tomb was tomb of Tuta en covit has also be w study. d ne a an r ed lo itt co bm su itto sepr Br de e or th in by ne y ered by limesto The recent stud as Reeves tomb e th room of Nicol arate the main ish researcher om. b ro m y to ar on nd co am se tank from the other ern revealed that Tu a Queen and rth no at the for Nicolas, said th nt from the was designed ed at st s re ve ffe Ree wall is very di and research not for a king; on walls d this conclusi e he th ac of re st he re at ally th at was been actu s of pictures th indicate that it all w through a serie which illustrate e th colors of , modified; the d ye he took in 2014 ion that are la sp di n io rmat the informat d an re important info e sh th iti ; the Br the walls of were modified of b registered over m to e th at d th searcher adde ed tomb. was not design a recent secreat on th am d nk de ta ad Tu e en H dd ed su er is ov H sc . King been di solely for the tive door has k and mb; oc to sh e a th of as ls al death came behind the w time actuother small room wasn’t enough e er th b there is also an ar designed tom discovered by ly to build a al as w that has been e iv at rn te e al the tomb. for the King; th lution and this chitects inside the room has k so at ic th qu id a sa s ng di ve fin lRee a tomb at the Va a very primitive was choosing been closed in ; its walls conr. xo Lu in s, ne ley of the King way by limesto bers and vital in tain written num

Travelstart Egypt wins Amadeus Award of ‘Excellence for Outstanding Performance’ and ‘Leading Online Travel Agent For 2015’; Follows Travelstart’s successful launch of Arabic language portal In recognition of its leadership in the travel industry, Travelstart Egypt was honoured as Egypt’s best online travel agency for the third consecutive year at Amadeus’ annual gala awards in Egypt, where it picked up the “Leading Online Travel Agent For 2015” award. The company also received an Excellence for Outstanding Performance award due the progress made throughout the last two years and the increased business volume that has positioned Travelstart among the top 10 travel agencies in Egypt by airline ticket sales. “We’re delighted to have received the online travel awards from Amadeus. 2015 proved to be another momentous year for Travel Start Egypt, with the

launch of our Arabic travel portal and our next platform for travel consultants,” said Ahmed Saad, Country Manager of Travelstart Egypt. “The past year hasn’t been easy for Egypt’s travel and tourism industry, but Travelstart Egypt was able to drive strong gains, supported by continuously improving our technology. Furthermore, we’re pleased that our strategy to focus on techsavvy, adventurous customers is paying off,” Registered users of Travelstart Egypt soared to 3m during 2015, supported by the introduction of the fully-functional Arabic language portal. Online travel booking is a high growth market with Egypt’s online ticket purchases are expected to grow from US$1.9bn in 2014 to US$2.8bn by 2020, according to payment service provider PayFort.

6

International

www.meobserver.org

?

11 May 2016

British Conservatives & US Republicans ask:

What a mess we got ourselves into

In the United Kingdom, the Labour party member Mr. Sadiq Khan, a British citizen ; son of a bus driver, became the mayor of London, his Conservative party rival Mr. Zac Goldsmith, born with a gold spoon suffered a humiliating defeat.  Mr. Khan astounding triumph over his rival, has been quite sound; considering his being a Muslim.  Mr. Khan pointed out “ Fear does not make us safer, it only makes us weaker and the politics of fear is simply not welcome in our city” well said words that developed optimism, strength and a vision towards a brighter future of Unity.

Donald Trump

Paul Ryan

The two parties that used to lead the United States & United Kingdom are losing ground and solidarity; which will have an impact on voters In Scotland, The Scottish National Party won its third straight victory in the Scottish Parliament, a triumph that its leader, Nicola Sturgeon, called historic, even though the party narrowly lost its majority with 63 seats down from 69 Seats, falling short of the 65 seats required for a majority in the 129-Seat Parliament. The Labour Party fell to the third place with 24 Seats, behind the Conservatives with 31 Seats.  Scots rejected independence , a 2014 referendum, but there is speculation that a new referendum could be called, particularly if Britain leaves the European Union. Mr. Corbyn, head of the labour party bluntly stated that the Labour party had defied its critics and “hung on” in England, and that there was “a lot of building to do in Scotland.” On the the other hand, Mr. Cameron’s success in Scotland and losing the capital is an illusion of victory, as the Conservatives will remain divided

up till June 23rd when people vote whether Britain is to remain or depart from the European Union. Mr. Cameron as leader of the Conservatives, (along with a number of economists and bankers) is campaigning for Britain to remain, while Mr. Boris Johnson a Conservative who has held the London mayor post since 2008 and is currently a leading figure in the campaign is all for Britain’s departure - who knows, perhaps he will be the new Conservative party leader if Britain decides to leave the European Union. With such a division over the coming month British Conservatives are in a state of mess.. In the United States, Mrs. Clinton is practically the runner up for being the Democrats candidate for Presidency, her campaign is repositioning itself to reaching out for the Republican voters including officials, specially that Cruz has officially departed the Presidency scene, leaving Mr. Trump as the Republicans

runner up for being their Presidency Candidate. “I invite a lot of Republicans and independents who I’ve been seeing on the campaign trail, who’ve been reaching out to me, I invite them to join with Democrats,” Mrs. Clinton told CNN. “Let’s get off the red or the blue team. Let’s get on the American team.” Focusing on the democrats full support, minority voters, independent and Republican-leaning voters turned off by Mr. Trump will be the playing cards for Democrats to win the Presidency over the Republicans for the second time in a row. On the other hand, the Republican House speaker, Paul D. Ryan said he was “just not ready” to back Mr. Trump, announcing the division within the Republicans camp. Mr. Trump being reffered to as a loose cannon reflected a turmoil since his appearance on the stage for Presidency. Trump has taken the World by a Storm when he called for  “total and

complete shutdown of Muslim immigrants to the United States in light of the San Bernardino, California, shooting that was declared a terrorist attack. Despite Trump’s proposal, a fair amount of the billionaire’s assets come from business ventures in the Middle East; which puts his statement in doubt as he may neither deny his Gulf partners visit to the US, nor Muslims of any nationality from visiting the land of the free. The problem with the Trump case is that US policy makers need to re-think their strategy for a foreign policy tutoring to candidates prior to their access to the Presidency race. Along with other actions and comments made by Mr. Trump, Republicans realised that he may not be speaking their language and as it is appealing to some, The Republicans house is divided and the US Republicans are in a mess too.

By Mahmoud Fouda

Hillary Clinton

Sadiq Khan Boris Johnson

Greece protests ahead of vote on pension and tax change Protesters have gathered outside parliament in Greece ahead of a vote on further austerity measures in return for more international bailout money. The rally coincides with a three-day general strike against the introduction of tax and pension changes. Greece has been unable to unlock the next loan instalment of €5bn (£4bn) after clashing with its creditors over the need for more reforms. The protests come amid fears of another crisis in the Eurozone. An extraordinary meeting of the Eurogroup was held on Monday. Greece agreed to a third rescue package worth €86bn (£60bn; $94bn) last year. There are worries it may de-

fault on €3.5bn in debt payments due in July if an agreement is not reached soon. The International Monetary Fund and other European partners are demanding that Greece implement further austerity measures to generate nearly €4bn in additional savings - contingency money in case Greece misses future budget targets.

Eurogroup ministers from countries which use the euro will assess “a comprehensive package of policy reforms as well as the sustainability of Greece’s public debt”, a statement says. “Both elements need to be in place in order to finalise the programme’s first review and unlock further financial assistance to Greece.”

David Cameron

China's exports and imports slow more than expected New fears about the health of China’s economy have been sparked by figures showing that both exports and imports fell more than expected last month. Exports fell 1.8% compared with April last year, according to official figures, reversing a recovery in March. Imports sank by 10.9% compared with the same month in 2015. That marked the 18th consecutive monthly decline, suggesting that domestic demand remains weak despite a rise in infrastructure spending. Economists had expected exports in April to fall by just 0.1%, after a surprise 11.5% rise in March. They had also expected a smaller slide in imports, 5%, after a 7.6% decline in March. Zhou Hao, of Commerzbank in Singapore, said: “Both exports and imports came in weaker than expected, in line with the soft trade

performance across Asia, pointing to another challenging year for emerging markets ... some sort of market correction might be inevitable.” China’s exports to the United States - the country’s top trade partner - slid by 9.3% in April, but those to the European Union increased by 3.2%. Economic growth in the world’s second-largest economy slowed to 6.7% in the first three months of this year. That was the weakest figure since the financial crisis, but activity picked up

in March as government measures to kickstart growth, including six interest rate cuts since late 2014, seemed to help. However, the April figures suggest that the rebound may not be sustained. Both official figures and a privatesector survey for April revealed a mixed picture for China's manufacturing sector. The official purchasing managers' index (PMI) showed a marginal expansion last month, but Caixin's survey found the 14th consecutive month of contraction in the sector. Beijing has said it will take steps to boost exports, including encouraging banks to increase lending and raise tax rebates for some companies. China increased its share of world exports from 12.3% to 13.8% last year, meaning that its export sector remained competitive despite higher costs.

11 May 2016

www.meobserver.org

Youth & Technology

7

The road to succes

Heavy & light equipment

You want to earn 2200 pounds a day:

palm spathe is the answer Egypt is very rich in palm spathe, we can see it everywhere, especially in Sinai and Upper Egypt. Yet, it is not properly benefited from, although it’s one of the oldest plants in Egypt that could be traced back 10,000 years ago. It is only used in few simple crafts, like making wooden cages and furniture, and sometimes it is just burned to ashes to get rid of it. Dr Walid Abu Batta, researcher at Agriculture Research Center, said that Egypt is short on natural woods and consequently has to import its needs of wood. Since this represents a burden to the state’s budget, now is the time to start using this material to satisfy

part of local needs for wood. The massive annual production of spathe can be used to produce several types of compressed wood, like plywood, particle boards, and counters, at the lowest cost. In addition, experiments have proved that palm spathe products resemble other wood products, in terms of flexibility, resistance and hardness qualities, while they top them in outer appearance and being irresistible to fire. The Egyptian researcher pointed out that the center adopted a project that aims at using the 25 spathes produced a year. It is an intensive labor project that does not require high operating capacity, since

experience can be gained during the preliminary phases of work. Moreover, the product has better qualities than other similar raw materials, which would give it a head start in the market. Regarding the total cost and expected profits, he said that one board of spathe (1220*2440mm*16mm) requires nearly 20kg of ground wood and 7-8kg sticking material. The price of one meter is estimated at 1900 pounds, and the net sales would be 1100 pounds for a cubic meter. As for the prices of required equipment, they are believed to be as follows: 1. Hydraulic Press

Mind Games

(EGP 55,000) 2.Mechanic mixer (EGP 18,000) 3.Assisting tools (EGP 3000) 4.Spathe grinder (EGP 17500) 5.Spathe cutter machine (EGP 40,000) Total cost of equipment= EGP 133500 Some have said that the cutter machine could be replaced by the grinder, but this could lead to its depreciation in a short-time. It should be noted that the prices of these tools differs from one brand to another and local ones cost less than the imported.

ASSAY OFFICE BANK ROBBER BARN BLACKSMITH BOOTS BUCKBOARD BUNKHOUSE CALAMITY JANE CHAPS COAL OIL COWPOKE DAVY CROCKETT DOCTOR DRESSMAKER FENCE GENERAL STORE

GOLD NUGGET GUNSLINGER HATS HIRED HAND HORSES ICE HOUSE LASSO MARSHALL MINE SHAFT OUTLAWS PELTS PIGS PIONEERS POST OFFICE RANCH HAND REVOLVER

RUSTLER SADDLER SALOON GIRL SCHOOLHOUSE SCOUTS SHOOTOUT SHOTGUN SPURS STIRRUP TOWN HALL TRADING POST TUMBLEWEED WAGON WANTED POSTER WHISKEY WILD BILL HICKOK

Life is a series of steps , by which you choose to accomplish success or surrender to defeats and obstacles. Psychologists highlight the difference between two important terms; which are, tough-minded and tender-minded. According to William James , the famous philosopherpsychologist, the world is made up of two kinds of people “the tough-minded” and the “tenderminded”. Tender-minded are the ones who wilt under obstacles and difficulties; they are cut to the quick by criticism and lose heart; they constantly wine and usually fail. On the contrary, the tough minded individuals, are people from all walks of life, the manual workers, merchants, mothers, fathers, teachers, old and young people too. Their main characteristic is that they have an element of toughness built into them; they have the power to stand up and face difficulties and life obstacles. The father of positive thinking, Norman Vincent, wrote a story in his book, “The Amazing Results of Positive Thinking”, that reflect the toughness of a tough minded young man. “Jim Mackey, was a

real man and one of the truly tough minded people in this world”; wrote Norman Vincent. He was a natural born athlete and one of the very best; but early in his high school career he started to limp and soon it developed that he had cancer. He actually had an operation and his leg was amputated. Soon , he went to meet the coach of his football team and asked him to be one of the team managers; he did a great job and he was infusing the team with his power and enthusiasm ;within six weeks he had another examination but his parents did not tell him the examination results which indicated that he had a lung cancer. He decided to go back to the team and he was able to record the victory of one of the main football team in Camel town in New York. After his success he was hospitalized and after a few weeks he passed away. In fact Jim had known all along about his death- sentence; but he was the perfect example of a tough- minded person who was able to take it. Some people might say but he died anyways; positive thinking did not do him much. However, this is not true, he refused to put his head in the sand and he was able to face his death after achieving major success; he actually chose success ! He chose not to be defeated ; he took his life short as it was and used to create courage and faith. This is actually how a tough-minded person is. #Stay tuned to more success stories

By Amira Elhamy

Apple headed to China's highest court after losing exclusive rights to iPhone trademark Apple is not happy to lose its exclusive trademark rights for the iPhone brand name in China, after the Beijing Municipal High People's Court ruled in favor of Xintong Tiandi Technology (XTT) using the label «IPHONE» on its leather goods. The iPhone is Apple's flagship device and its most popular product in mainland China, which is an important factor because China is the biggest smartphone market in the world. «Apple is disappointed the Beijing High People's Court chose to allow Xintong to use the IPHONE mark for leather goods when we have prevailed

(Word seeks - Old West)

Are you a tough-minded or a tender-minded person?

in several other cases against Xintong,» said Josh Rosenstock, a spokesman for Apple, China Daily reported. “We intend to request a retrial with the Supreme People’s Court and will continue to vigorously protect our trademark rights.” XTT applauded the ruling and even announced the company’s “victory” on its website. The translated version of the page says that from now on iPhone is not only a mobile phone and not “exclusive to Apple’s home.” Tech Times reported that the Chinese trademark regulator  said  in a 2013 ruling that Apple failed to prove that

“IPHONE” was a renowned name in the mainland prior to Xintong Tiandi's registration of the trademark. Apple claimed it already trademarked the name for its electronics in 2002, while XTT filed a patent to register the name «IPHONE» in 2007. However, it was only in 2009 when the iPhone first hit stores in mainland China. The court also didn't take note of the small «i» in the name of Apple's handset. Apple now has 11.3 percent of the total market share in China, with more than 49 million iPhones sold. It follows the lead of local rivals Huawei and Xiaomi. XTT's leather goods range

from folder-sized bags to purses, card holders and even key keepers. All of them bear the trademark «IPHONE,» which is a bit different to Apple's iPhone in terms of the first letter on each trademark and how XTT used all capital letters. Perhaps the China-based leather goods maker plans to take its achievement to the next level, as it hinted at plans to join the Swedish fashion designer GALO in a grand exhibition business. When that happens, more products with either «iPhone» or «IPHONE» labels may just become a familiar sight among shopping enthusiasts. - Tech Times

Uber, Lyft spend big, lose big in Texas vote on driver fingerprinting The two companies spent more than $8 million to repeal a city ordinance requiring the fingerprint-based criminal checks and launched what turned into the most expensive race in the Texas capital’s history. Voters said by a margin of 56 to 44 percent they wanted the fingerprint checks to stay. The companies outspent their opponents by 80-to-1 and when the votes were tallied their campaign contributions broke down to being more than $200 for each vote in favor of their position. “Disappointment does not begin to describe how we feel about shutting down operations in Austin,” Uber’s Austin general manager Chris Nakutis said in a statement. The stakes were high for the privately held Uber [UBER.UL] and Lyft, which say their background checks are already rigorous and ensure safety. “Unfortunately, the rules passed by City Council don’t allow true ridesharing to op-

Campaign signs concerning a municipal vote over fingerprint requirements for ridehailing companies such as Uber and Lyft are seen along a roadway in Austin, Texas.

erate,” Lyft said, adding it will suspend operations in Austin as of Monday. The loss could prod other cities to require fingerprint criminal background checks, encouraged that they can survive a bruising electoral battle with the ride-hailing services, analysts said.

The costly municipal election in Austin came as other cities consider imposing fingerprintbased background checks on drivers. The Austin election marked the first time a major U.S. city put the regulations to a vote, which happened after a petition drive by Ridesharing Works for Austin, the political

action group underwritten by Uber and Lyft. Residents were asked to decide whether a transportation ordinance passed by the City Council in December should be repealed and replaced with one backed by the on-demand ride companies. The city ordinance calls for all ride-hailing service drivers to have fingerprint-based criminal background checks, while the ride-hailing companies backed one that does not. The group supporting mandated fingerprinting said the heavy spending was a signal that the Uber and Lyft campaign was motivated more by corporate profits than passenger safety. Other places battling over fingerprints include Atlanta and Houston, which along with New York is one of the two major U.S. cities where Uber operates even though its drivers are required to undergo the fingerprint background checks. - Reuters

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11 May 2016