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October/November 2020 Vol 26 Issue 10 LE 30

Fighting Hunger

With Innovation & Diversity Egyptian Food Bank Receives the MEI Visionary Award for its Exceptional Efforts during Covid-19 Pandemic

Editor’s Note

Mitigating the Impact of the Second Wave of Covid-19

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s Egypt braces to face the second wave of Covid-19, it’s not just the Ministry of Health that’s preparing for any necessary procedures. Every one of the nation’s other ministries and entities are working closely with the prime minister to formulate a strategy on how to mitigate the potential impact on the Egyptian economy.

Prior to Covid-19, the Egyptian economy was characterized by a largely stable macroeconomic environment, thanks to bold fiscal, monetary, and energy sector reforms. Egypt had started to build buffers in its fiscal and external accounts. The World Bank noted that “the primary budget balance switched into a surplus, and increased to reach 1.9 percent of GDP in FY2018/19, and the overall budget deficit and government debt-to-GDP ratios declined to 8.1 percent and 90.2 percent in FY2018/19 respectively, compared to 10.9 percent and 108.0 percent respectively only two years earlier.”

According to the World Bank’s Egypt Economic Monitor, this improvement was due to the “fiscal consolidation measures that focused on the streamlining of energy subsidies, containment of the wage bill, and the shift from a sales tax to a modern Value-Added Tax. Foreign reserves also increased prior to the crisis, reaching a high of $45.5 billion by end-February 2020 (covering around eight months of merchandise imports); and the parallel market rate was successfully eliminated following the November 2016 exchange rate liberalization.

Further, key energy sector reforms opened up the market for private sector activity, and incentivized investments in renewables, which contributed to a surge in private investment in FY2018/19. The Central Bank of Egypt (CBE) started easing monetary policy, following a decline in inflation, thus contributing to a nascent upturn in private sector credit. Altogether, the changes had started to reflect positively on Egypt’s business environment and sovereign credit helped improve the economy’s preparedness to face the Covid-19 crisis.”

The Covid-19 pandemic hit came while the Egyptian economy was preparing to move from the reform phase to modernization, but to date there is no indication that it has hindered the government’s reform plan, especially the strategies related to economic institutions.

The coming three months are crucial for the government and international partners to maintain the reforms Egypt has accomplished since 2016.

Mohamed Abdelbaky mabdelbaky@egypttoday.com 4

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In This Issue Vol. 26 No. 10-11 | October/November 2020

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8 Editor’s Note In Brief 10 Egypt 16 Region 18 Globe News in Focus 20 The Red Dominates EGX The Egyptian Exchange lost around LE 13.3 billion of market capitalization in October.

By Hanan Mohamed 22 Egypt to Issue First Sovereign Islamic Sukuk The cabinet approved a new sovereign sukuk bill early November, aiming to widen Egypt’s investors base.

By Hanan Mohamed 24 Egypt-UK Economic Relations on an Upward Trend Chairman of the Egyptian-British Chamber of Commerce Ian Gray speaks about investment opportunities in Egypt, and the newly launched 'Trade Accelerator'.

By Hanan Mohamed 28 The East Mediterranean Gas Organization: A Partnership to Stand In light of the recent signing of the Charter of the East Mediterranean Gas Organization, we highlight some of the remarkable partnerships among member states in the oil and gas sector.

By Noha El Tawil Spotlight 32 On Africa and Covid-19: Recovering Stronger Commissioner for Infrastructure and Energy at the African Union Commission (AUC) Dr. Amani Abou-Zeid gives us an inside look into Covid-19’s grave impact on the continent and the latter’s “exemplary” actions throughout the crisis.

By Nourhan Magdi 36 The Threat of a Lost Decade The United Nations Conference on Trade and Development (UNCTAD) projects a worldwide recession or permanent loss of potential output as a result of the Coronavirus pandemic.

By Noha El Tawil

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What is it that drives someone to greatness?

To take on the unknown, venture into the unseen and dare all? This is the spirit that gave birth to TUDOR, a spirit carried forward by every woman and man who wears this watch. Without it, there is no story, no legend and no victory. This is the spirit that drives David Beckham every single day. This is the spirit embodied by every TUDOR Watch.

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In This Issue

40 Infographic Covid-19 and the Egyptian Economy Face Of Business 42 Behind the Scenes of Egyptian Food Bank Operations with CEO Mohsen Sarhan We speak to EFB’s CEO about the bank’s programs, future plans, and its substantial contributions to alleviate the Covid-19 crisis across Egypt.

In-Depth 48 When Hope is Born in the Womb of Suffering Celebrating Egypt’s pivotal role in alleviating humanitarian crises across the globe, this month we shed light on the spirit of solidarity and extensive efforts put forth by government entities and civil society organizations in recent regional crises.

By Yasmine Hassan 56 French Products Boycott: Unpacking the Controversy A look into the eonomic impact of the boycott campaign.

By Hanan Mohamed 60 Omar El Hamamsy: We Are Keen on Diversifying the Egyptian Economy CEO of Orascom Development Egypt discusses the challenges of organizing El Gouna Film Festival this year, and the company’s 2020 accomplishments and future plans.

By Angy Essam 66 Egypt's Message to the World Branded the “Festival of Challenge” by its founder Naguib Sawiris, the fourth edition of El Gouna Film Festival has showcased to the world Egypt’s readiness to safely host international events and welcome visitors from all over the globe.

By Angy Essam 74 bt Scene 82 Last Word

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© COPYRIGHT BUSINESS TODAY EGYPT 2020. All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher. Printed in Egypt at Ahram Printing House. Business Today Egypt, founded in 1995, is published monthly by International Business Associates Group, Cayman Islands. US Office: Business Today Egypt, P.O. Box 2191, Austin, TX 78768. Representative Office: 6 Wezaret el Zeraa, Mohandiseen.

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Finally.. Hyde Park Developments Heads West!

The Leading Real Estate Developer Announces “Tawny” A Practically Perfect Compound at the Heart of It All!

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es, the news has been confirmed! Hyde Park Developments are heading west, bringing their leading expertise in the creation of integrated livable community to the residents of 6th of October city as well as luxury and seclusion seekers.

After their breakthrough in the east, offering their “Hyde Park New Cairo” project, Hyde Park Developments is coming to the west side with a practically perfect modern Avant guard designs and livable community concept that cater to the needs of families “Tawny”. The coziness of the community and its young, fresh look makes it a safe haven for younger generation of families looking to start a new beginning, but still in a well-established area that has access to all lively areas in 6th of October, only minutes far from the most prominent destinations including Gezira sporting club, shopping & retail districts in addition to national & international schools such as Lycee Albert, Al Alson, The International School of Chouhaifat, The American International School (AIS) and The British International School In Cairo (BISC), and others.

With premium location among the landmark places of 6th October and Sheikh Zayed, “Tawny” arrives to redefine the residential community of the west, granting its owners extra luxury of the inclusive compound, surrounded by vibrant destination. “Tawny “ will be on total size of 31 acres, featuring lavish boutique collection of exclusive 216 villas of diverse types and sizes, ranging from 240 SQM to 288 SQM Modernity and novelty surround each and every corner of the project, which is manifested in the units. Hyde Park Developments also went an extra mile, offering the “Quad Villas”, that are considered an addition to the market. This leading product concept is all about bigger space for bigger families and those who want to be immersed in the friends and family

gathering. This comes as part of Hyde Park Developments’ thought as the creators and shapers of the ultimate familial lifestyle.

Conceptualizing the spaces revolves around mixing practicality and efficiency with convenience surrounded by an air of coziness, catering to the different needs, tastes and preferences of the owners. The total landscape of the project was designed so as to reflect this diversity, with less than 20% of the project dedicated to the residential purpose.

We are all excited about this new addition to the west side and we know you’re too, so decide on your preference from the 4 types of villas and join this desirable community at the heart of it all!

In Brief Egypt Egypt Will be the Only MENA Country Achieving Positive Economic Growth in 2020/2021, IMF The International Monetary Fund (IMF) has declared that Egypt is the only country in the Middle East and North Africa region that will achieve a positive economic growth in the FY2020/2021 by virtue of the economic reform program undertaken by the state since 2016.

The reforms are embodied in currency floating and gradually lifting energy subsidies, among others.

Egypt’s growth rate in FY2020/2021 is expected to drop to 2 percent due to the Covid-19 pandemic with speculations to rebound to 6.5 percent in FY2021/2022, the IMF said in a report.

Egypt is Committed to Shaping a Gender-Equitable Post-Covid-19 World, Al-Mashat Says Minister of International Cooperation Rania AlMashat has stated that Egypt is committed to shaping a gender-equitable post-Covid-19 world, as showcased by a recent report by UN Women and the UNDP ranking Egypt first among Middle Eastern and West Asian economies for taking 21 measures to support women during the time of the Coronavirus pandemic.

The statement came during Al-Mashat’s participation in the virtual event “Ensuring Sustainable Recovery: Public and Private Sector Solutions to Tackle Growing Gender Gaps,” held as part of the annual meetings organized by the World Bank in October.

The webinar discussed the role of the public and private sectors towards a sustainable economic recovery, calling for innovative approaches to close gender gaps in emergency response situations.

“Over the past few years, Egyptian women’s economic participation has increased, as the percentage of women holding bank accounts has risen from 9 percent in 2015 to 27 percent in 2017,” Al-Mashat noted.

The minister added that 51 percent of microfinance loans were granted to women and 69 percent benefited from small enterprise loans in 2018.

Among the participants in the webinar were Managing Director of Development Policy and Partnerships at the World Bank Mari Pangestu; IFC Vice President of Economics and Private Sector Development Hans Peter Lankes; Minister of Finance, Budget and National Planning in Nigeria Zainab Ahmed; Director General at GSM Association Mats Granryd; and Minister of Finance and the Economy in Albania Anila Denaj.

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In Brief Egypt

EIB Approves €750M Covid-19 Liquidity Support to Banque Misr Minister of International Cooperation Rania Al-Mashat announced in October that the The European Investment Bank approved a €750 million fund to Banque Misr, to mitigate the negative repercussions of the Covid-19 pandemic on small and medium enterprises and close the liquidity gap.

Al-Mashat emphasized in a statement the importance of the Ministry of International Cooperation’s partnership with the European Investment Bank in order to support development, having signed several agreements with the Bank in 2020, the most important of which is an agreement

worth €1.9 billion for the transport sector as well as small and medium enterprises.

Al-Mashat noted that the ministry is seeking to strengthen economic diplomacy in the framework of the ‘Global Partnerships for Effective Development’. This includes organizing regular multi-stakeholder platforms to ensure that all projects between development partners are streamlined; adopting a consistent Global Partnerships Narrative (People&Projects&Purpose (PPP)); and mapping ODA financing to SDGs for all projects with multilateral and bilateral development partners.

CBE Establishes EgyCash for Money Transfer The Central Bank of Egypt (CBE) announced in October the launch of EgyCash for technological cash solutions, providing services of money transfer, ATM feeding and cash circulation.

Company Chairman Hani Omar said in press statements that the establishment of EgyCash company comes within the framework of a comprehensive development of Egypt’s banking system carried out by the CBE, adding that it will follow the latest technologies and international standards of money transfer and will be equipped with the latest security technologies.

The CBE is contributing with 35 percent of the capital of the company, while other Egyptian banks will own the rest of the shares, including the National Bank of Egypt (NBE),

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Banque Misr and Banque du Caire.

“The company aims, in its first stage, to cover the Egyptian market, and later expand abroad, especially in Africa and the Arab world,” Omar noted.

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In Brief Egypt

Egypt Launches Middle East’s Largest Dredger Chairman of the Suez Canal Authority Osama Rabie witnessed the launch of the newest and largest dredger in the Middle East, under the name Hussein Tantawi, late October.

The launching ceremony, held at Krimpen shipyard of the Dutch shipbuilder Royal IHC, was attended by the company’s CEO Gerben Eggink and Egyptian Ambassador to the Netherlands Hatem Abdel Gawad.

The dredger is 147.4 meters long, with a 23-meter beam, a depth of 7.7 meters, and a draft of 5.5 meters,

Rabie said in a statement.

It can produce 3,600 cubic meters of sand per hour at a length of 4 kilometers, with a total capacity of 29,190 kilowatts, he added.

The launch of the new dredger comes as part of a contract concluded between the Suez Canal Authority and Royal IHC to establish two dredgers, Rabie said, adding that the first one was named Mohab Mamish.

The two dredgers are similar in design, style and technical specifications, he noted.

Dana Gas Sells Egyptian Assets for $236M Dana Gas PJSC entered into a binding agreement with IPR Wastani Petroleum Ltd, a member of the IPR Energy Group (“IPR”) to sell its onshore Egyptian producing oil and gas assets for up to $236 million, including contingent payments.

“This transaction is the result of a comprehensive formal sales process initiated pursuant to a strategic review of the Company’s Egyptian business, and follows engagement with a number of prospective industry buyers commencing in Q2 2019. This resulted in four offers being received,” Dana Gas said in a statement It added that negotiations with the successful bidder extended over a longer period primarily due to the restrictions that Covid-19 has placed on travel and communications and the impact of the pandemic on the world economy and the resulting sharp drop in global oil and gas prices.

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The Company, through its wholly-owned subsidiary Dana Gas Egypt, will retain its interests in its onshore and offshore exploration concessions, respectively El Matariya (Block 3) and North El Arish (Block 6), and will actively pursue maximizing the value of these assets, the statement read.

Under the terms of the sale, the consideration comprises a base cash consideration of $153 million, including the net working capital associated with the assets and before any closing adjustments, and contingent payments of up to $83 million subject to average Brent prices and production performance between 2020-2023 as well as the realization of potential third party business opportunities. Upon closing, the base consideration will be adjusted by the collections received and payments made by the Company during the intervening period between the effective date, and the closing date.

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In Brief Egypt

World Bank Approves $200M Project to Reduce Air and Climate Pollution in Egypt The World Bank's Board of Executive Directors approved a $200 million project to support Egypt's initiatives to reduce air and climate pollution from critical sectors and to increase resilience to air pollution in Greater Cairo. The project will focus on reducing vehicle emissions, improving the management of solid waste, and strengthening the air and climate decision-making system.

According to a press release issued by the World Bank, Greater Cairo's air quality has recently seen an improvement; however, ambient air pollution remains the city's most significant environmental health issue, weighing heavily on residents' quality of life and on the economy.

Recent studies have estimated the annual economic cost of air pollution on health in Greater Cairo alone at about 1.4 percent of Egypt's Gross Domestic Product (GDP).

The six-year Greater Cairo Air Pollution Management and Climate Change Project aims to support Egypt's efforts to reduce both air pollution and climate pollutant emissions in line with the country's Sustainable Development Strategy: Egypt Vision 2030. The project will con-

tribute towards Egypt's key environmental goal of halving Particulate Matter pollution and towards developing and implementing a strong, economically feasible climate impact mitigation program that would meet Egypt's 2030 targets for reduced emissions, the press release read.

Egypt Targets LE 9.76B Investment in Retail Sector in 2020/2021 Egypt aims to direct LE 9.76 billion in investments to the wholesale and retail trade sector in 2020/2021, representing 1.3 percent of total investments, according to the Minister of Planning and Economic Development Hala Al-Saeed.

Al-Saeed referred to the strategic objectives of the supply and domestic trade sector, which include providing

food security by creating a safe stock of strategic commodities sufficient for a period of three to six months, expanding the scope of internal trade to increase its contribution in economic growth, stimulating competition and preventing monopolistic practices, as well as limiting loss and waste of food commodities in the stages of production, transportation, storage and marketing.

EBRD Invests $50M in Egypt-Focused Private Equity Fund The European Bank for Reconstruction and Development (EBRD) has announced investing up to $50 million in Lorax Capital Partners (LCP) Fund II. EBRD clarified that this fund is aimed to boost the resilience of the financial sector in Egypt and support equity financing to small- and medium-sized businesses.

According to the EBRD, equity fundraising is facing extremely challenging times in the southern and eastern Mediterranean (SEMED) region due to the Covid-19 pandemic; and small companies are facing a decrease in their activity and liquidity shortages. The EBRD’s commitment to LCP Fund II helps to bring a SEMED fund to fruition during the crisis.

“We are thrilled to support a local and independent team such as Lorax. The EBRD’s investment in LCP Fund II helps to contribute to the development of private equity in Egypt and will help to provide long-term capital growth to small and medium-sized companies in the region,” EBRD Director and Head of the Equity Funds team Anne Fossemalle commented.

This marks EBRD’s second investment into an Egypt-focused private equity fund, the first being Ezdehar Egypt Mid-Cap Fund in 2016.

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Mohamed Shelbaya: The Agriculture Sector Has Played a Major Role in Egyptian History and Always Touched the Lives of Egyptians from the Days of Ancient Egypt up till our Modern Time It is the foundation of the global food system, the root of PepsiCo’s business and key to making progress towards our ambitious goals Every Chipsy pack entails a story, it was never an ordinary one, Chipsy is taking pride in empowering its surrounding communities with everything it takes to improve their livelihoods Over the next three years, USAID and Chipsy for Food Industries will expand the program activities to farmers in 3 governorates and plans to reach 2,500 farmers

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n your opinion, what are the challenges and opportunities of the agriculture sector in Egypt?

The agriculture sector has played a major role in the Egyptian history and always affected the lives of Egyptians from the days of ancient Egypt up till our modern time. It remains a major sector and a very vibrant component of the economy.

Despite its positive and significant contribution to achieving food security, employment generation, export earnings, ecological balance, the agriculture sector in Egypt faces many threats and challenges which, in turn, impact rural development initiatives. The prominent challenges include lack of awareness about the sustainable agriculture practices; degradation of natural resources; scarcity of good seeds, decrease in prices of agriculture crops in comparison to the costs of cultivating the land accordingly low income for farmers.

Our goal is to create a sustainable agriculture system to increase food production in a reliable manner, ensure food security, improve livelihoods in rural areas and complement the Egyptian government moves. In order to realize this goal, efforts should be made towards educational programs, efficient utilization of economic incentives and the development of appropriate and new technologies. In this regard, PepsiCo is taking pride in working with 5000 farmers and including them in Chipsy’s supply chain.

Here comes the role of the private sector in cooperation with civil society organizations and the government to initiate sustainable programs that benefit the sector and the farmers. Hence, supporting the Egyptian economy.

The agriculture sector is among the strategic sectors in the Egyptian market, Can you please tell us how PepsiCo Egypt is contributing to the development and growth of the sector as a whole?

The agricultural sector is one of the essential sectors in Egypt contributing to the national economy and generating approximately 14 percent of the GDP while absorbing about 28 percent of the workforce. First of all, I would like to seize this chance to praise the government’s work represented by the Prime Minister in preserving the sector by the latest codes which focus on keeping Egypt’s rich agriculture lands.

As for PepsiCo, agriculture is at the heart of our business. Across the years, PepsiCo Egypt managed to develop the second largest Agriculture Program among PepsiCo Global producing 400,000 tons of potatoes yearly which are 100 percent cultivated through cooperation with Egyptian farmers. Moreover, we worked on an advanced seeds program, now 65 percent of our seeds are produced locally, and we are planning to reach

80 percent of the seeds by 2024.

Having said that, our focus was and will remain the Egyptian farmer.

We developed various programs that empower Egyptian farmers. For instance, “She Feeds the World” program helps women gain access to land rights, access markets to sell their crops, improve access to quality equipment and participate in sustainable agriculture and financial trainings. In addition to strategically connecting multi-sector partners involved in all parts of the global agricultural supply chain, who together, have the ability to create change at scale.

At PepsiCo we feel that it is our role to make a positive impact on Egyptians’ lives and transform their biggest challenges into opportunities.

“She Feeds the World” will improve the nutritional wellbeing of female small holder farmers in Beheira, Giza, Minya and Beni Suef through promoting improved nutritional behavior, water replenishment, private and public sector engagement, and improving access to productive resources.

We are planning to reach 390,000 beneficiary in three years, with total investments of LE 60 million.

Can you please tell us about the latest cooperation with the USAID and how will this cooperation empower the Egyptian farmers?

Every Chipsy pack entails a lot of stories, it was never an ordinary one. It is all about the good deeds we share and the positive actions we nurture and Chipsy is taking pride in empowering its surrounding communities with all its abilities. The whole story started when PepsiCo Egypt and USAID joined hands in 2019 to help deliver sustainable growth of potato farming in Egypt. The partnership aims to empower Egyptian smallholder farmers to establish reliable market linkages, increase crop quality and yields, and progress toward internationally-recognized standards for sustainable agriculture. Ultimately, Chipsy for Food Industries plans to use this model throughout its entire smallho lder supply chain in Egypt.

The farmer’s hard work payed off and during the first year of the partnership, they received trainings and technical recommendations on good agricultural practices. As a result, in the 2019/2020 growing season, hundreds of farmers in Beni Suef significantly increased quality and yield, cut costs, and tripled profits. Among the successful stories is Haja Fayza who increased her productivity through attending all the program trainings.

Not only this, but she managed to transfer knowledge to her neighborhood and act as an ambassador for the program within her village, and they named her “The Potatoes’ expert”.

“I am happy that we sell our potatoes to Chipsy -not just mine- but also the other farmers’ potatoes. I am pleased that Egyptians eat potato chips from our farm. I thank God my income has increased. Now I can do what I want for my children and grandchildren, said Fayza Owes Suleiman.”

After the success that was achieved in 2019, we renewed our partnership with the USAID for the second year in a row and it was announced in a press conference in the attendance of the U.S. Ambassador Jonathan Cohen, USAID Mission Director Leslie Reed, and PepsiCo Regional Manager for Sustainable Agriculture Reuben Blackie. Over the next three years, USAID and Chipsy for Food Industries will expand the program’s activities to farmers in three governorates and plan to reach 2,500 farmers, and as previously mentioned Chipsy For Food Industries plans to use this model throughout its entire smallholder supply chain in Egypt by 2025.

PepsiCo is known among other corporates that their investments are value driven, Can you please give us a glimpse about the details?

PepsiCo’s DNA and the build up to its operations and strategy are based on creating shared values across all fields of operation and markets.

Our ambition is to win sustainably in the marketplace by embedding purpose into all business aspects. Towards that objective, we entrench our global strategy “Winning with Purpose” with Egypt’s 2030 vision and the Sustainable Development Goals of the United Nations. By coordinating these efforts, we can fight hunger, ensure good health and wellbeing, offer quality education, achieve gender equality, and guarantee a positive work environment.

From PepsiCo’s perspective, Egypt has been one of our global success stories. For instance, PepsiCo Egypt got awarded as the best business of the year across PepsiCo globally in 2019. Also, We ensure sustainable investments; with strong CSV programs such as PepsiCo Schools League that we have been organizing for more than 17 years, Tomooh, the nutrition education program that has been going on for 12 year, She Feeds The World program that was launched in 2019 to support women farmers.

Besides, USAID-PepsiCo’s’ project that is considered a true role model of what “Creating Shared Values” is where everyone becomes a winner; Chipsy by getting quality potatoes from well-trained farmers and farmers are receiving the knowledge and earning a steady income.

How does PepsiCo see the current private-public partnership activities in Egypt? In your opinion what is the best formula in attaining result-driven outcomes in Egypt reflecting PepsiCo’s sustainability programs in the market?

I believe public-private cooperation is really vital in every nation’s development, it is not easy, but it is essential to be able to achieve the Sustainable Development Goals agreed by the United Nations and to be in line with Egypt‘s 2030 Vision. It is important to create sustainable business models, by integrating all involved stakeholders, private, public, and civil society organizations. The private sector has a lot to offer starting with the know-how, the global experience, and the efficiency models it adopts across different business divisions. The cooperation with the public sector and civil society organizations will expand the private sector’s horizon in accessing resources and reach targeted societal segments, which will reflect positively on the economy and the lives of Egyptians in different spectrums.

For instance, PepsiCo in cooperation with Ministry of social solidarity and Care launched “She Feeds The World” program to empower women farmers in rural areas and improving their livelihoods, and we have been working with the ministry hand in hand towards achieving that goal.

Another model is PepsiCo Schools League, we have been cooperating with Ministry of Education to discover and empower Egyptian talents by reaching out to 5500 schools across Egypt’s governorates every year.

Furthermore, PepsiCo cooperated with Ministry of Social Solidarity, and RiseUp through launching Egypt 2030 Hackathon competition aiming to achieve UN SDG’s and Egypt 2030 vision; zero hunger and gender equality in the labor market. We are keen to cooperate closely with the golden triangle; private, public sector and NGOs to develop Egyptians socially and economically. We are formulating our programs objectives regularly based on the country’s needs and vision in order to achieve more effective results and we are currently preparing for the next Hackathon in line with UN SDGs and Egypt 2030 vision.

Moving to the Food Industries sector, since you are one of the FMCG sector leaders, how is the Coronavirus changing the FMCG landscape in the Middle East?

There’s a general speculation that the world will forever change after the coronavirus pandemic, and it is only logical to assume that the FMCG sector will witness major changes.

Most FMCG companies are presently trying to reformulate their strategies to avoid major losses due to the shift in purchase needs, yet it remains a fact that the food sector is vital to overcoming the coronavirus crisis globally.

FMCGs are by design used to fluctuations in demand, prone to higher elasticity than other sectors. However, this time the magnitude is super heavy, and it is happening everywhere and across all sectors. I think the majority of FMCGs will be having the ability to absorb and react to the fluctuations in demand. But being part of the ecosystem, we can’t predict exactly how the economy will rebound in each and every sector, so we would better be ready with all scenarios and plan our reactions to support our customers the right way at the right time.

We have all acknowledge the massive change in the consumers’ behaviors in line to the current happenings, where staying home was the norm, this led to increase in the demand of snacks. Our marketing strategy that we have adopted entails offering value packs and increasing our presence through ecommerce platforms.

I believe agility, resilience, and business readiness are the trending keywords and tools businesses should adopt and be prepared with at this critical phase.

In Brief Region Palestinian Negotiator Erekat Dies After Contracting Covid-19

Saeb Erekat, one of the most experienced and highprofile advocates for the Palestinian cause over decades of dispute with Israel, died on November 10 after contracting Covid - 19, at 65 years old.

Having sat down with Israeli and U.S. leaders in the 1990s and 2000s, in recent years Erekat was the principal face of a war of words with President Donald Trump’s administration over a Middle East plan that envisaged leaving Israel in control of Jewish settlements and large parts of the occupied West Bank.

After peace talks had collapsed in 2014, he remained a firm backer of the negotiated creation of a future Palestinian state co-existing alongside Israel even if, in his own words, it took 50 years.

Erekat, the secretary general of the Palestine Liberation Organization, announced on October 8 that he had contracted the Coronavirus. Three years earlier, he had undergone a lung transplant in the United States that left his immune system compromised.

He died following multiple organ failure after being hospitalised for three weeks in Jerusalem’s Hadassah Medical Center, a spokeswoman for the Israeli hospital said. He had required ventilation and specialised drug treatment, she added.

“Saeb has shown an extraordinary patience and resilience, with the same determination that has characterized his career to achieve freedom for Palestine and a just and lasting peace in our region,” his daughter Dalal posted on Twitter.

U.S. Imposes Iran-Related Sanctions on Individuals, Companies The United States imposed early November Iranrelated sanctions on six companies and four people, accusing the network of supplying sensitive goods to an Iranian military firm in the Trump administration’s latest move to increase pressure on Tehran.

The U.S. Treasury Department in a statement accused the companies and individuals of facilitating the procurement of sensitive goods, including U.S.origin electronic components, for Iran Communication Industries, an Iranian military firm blacklisted by Washington and the European Union.

The firm produces military communication systems, avionics and missile launchers, among other items, the Treasury said.

Tuesday’s action, taken under an authority that imposes sanctions on weapons of mass destruction proliferators and their supporters, freezes any U.S. assets of those blacklisted and generally bars Americans from dealing with them.

“The Iranian regime utilizes a global network

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of companies to advance its destabilizing military capabilities,” Treasury Secretary Steven Mnuchin said in the statement, adding, “The United States will continue to take action against those who help to support the regime’s militarization and proliferation efforts.”

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In Brief Region

U.S. Has Begun Process of Removing Sudan from State Terrorism list, Pompeo says The Trump administration has begun the process of removing Sudan from the U.S. list of state sponsors of terrorism, while also working to get Khartoum to recognize Israel, which it hopes will happen quickly, U.S. Secretary of State Mike Pompeo said.

Pompeo spoke just two days after President Donald Trump announced Sudan would be taken off the terrorism list after it had transferred $355 million to compensate U.S. victims and their families. However, Pompeo stopped short of saying Sudan’s removal would be linked to whether it normalizes relations with Israel.

Sudan’s de-listing could set in motion steps toward Sudan’s establishment of relations with Israel, U.S. officials told Reuters, following similar U.S.-brokered moves by the United Arab Emirates and Bahrain.

Sudan’s terrorism designation dates to its toppled ruler Omar al-Bashir and has made it difficult for its transitional government to access urgently needed debt relief and foreign financing.

UAE’s flydubai Starts Direct Flights to Israel in November The United Arab Emirates (UAE) airline flydubai announced early November that it would start direct fights to Israel the same month, with twice daily services between Dubai and Tel Aviv.

The announcement came after the two Middle East states had agreed in August to establish formal ties, including launching direct flights between the two countries.

Dubai state-owned flydubai will be operating 14 weekly services between the UAE’s and Israel’s financial capitals, it said on its website. Tickets for those flights are now on sale.

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Dubai’s Emirates, the UAE’s biggest airline, will sell tickets on the flydubai service through a codeshare agreement between the carriers, an Emirates spokeswoman said.

UAE and Israeli citizens are able to visit each others’ country without applying for a visa before travelling as part of agreements recently signed between the two states.

Israeli airlines Israir and Arkia have advertised packages to Dubai for flights starting on December 9, but say they are yet to receive final approval for the flights.

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In Brief Globe Uneven U.S. Job Market Recovery Points to Need for Focused Fiscal Aid The big decline in the U.S. unemployment rate in October suggests the economy needs less a broad pandemic relief package than targeted support for hardhit sectors, even as an unprecedented surge in Covid - 19 cases raises questions about the durability of the job market rebound.

Overall, more people returned to work in October and the share of people either employed or looking for work increased, data from the U.S. Labor Department showed.

But the report also showed new hiring is slowing, long-term unemployment is on the rise and employment in some struggling industries is still far below pre-pandemic levels.

The sharpening picture of an uneven recovery in the labor market opens a new chapter in what is already a pitched political battle over how much more stimulus is needed, and for what parts of the economy, now that the worst of the crisis appears to be over for the broad er economy.

U.S. Senate Majority Leader Mitch McConnell told reporters in his home state of Kentucky that the decline in the unemployment rate to 6.9 percent in October from 7.9 percent in September shows “that something smaller – rather than throwing another $3 trillion at this issue – is more appropriate.”

Biden Says Nothing Will Stop Transition as Trump Vows New Legal Action

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Mitch McConnell

President-elect Joe Biden said on November 9 that nothing would stop the transfer of power in the U.S. government, while President Donald Trump pursued lawsuits in several states in a long-shot bid to hold on to power.

Trump’s campaign said it would file a lawsuit to stop Michigan from officially certifying Biden as the winner there until the state could verify that votes were cast lawfully, the latest in a flurry of lawsuits in battleground states to try to back up Trump’s claims of widespread fraud.

Legal experts have said Trump’s litigation has little chance of changing the outcome, and state officials have said there were no significant irregularities in the November 3 election.

Meanwhile, Trump supporters faced a possible setback in Pennsylvania. A witness who had raised accusations of ballot tampering recanted his allegations, according to Democrats in Congress who were briefed on the investigation.

Trump’s accusations of fraud did not appear to be gaining traction with the public. Nearly 80 percent of Americans, including more than half of Republicans, recognize Biden as the winner, according to a Reuters/Ipsos poll.

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In Brief Globe

Hong Kong Disqualifies Four legislators for ‘Endangering Security’ Hong Kong disqualified four opposition members of its legislature early November for endangering security, raising the prospect of a walk-out by pro-democracy legislators who oppose what they see as Beijing’s ever tighter grip on the city.

The expulsions came shortly after China’s parliament had adopted a resolution allowing the city’s executive to expel legislators deemed to be supporting Hong Kong independence, colluding with foreign forces or threatening national security, without having to go through the courts.

While the city’s Legislative Council is controlled by a pro-Beijing camp, the resignations of its pro-democracy lawmakers would turn it into a rubber stamp.

The opposition members have tried to make a stand against what many people in the former British colony see as Beijing’s whittling away of freedoms and institutional checks and balances, despite a promise of a high degree of autonomy.

“My mission as a legislator to fight for democracy and

Pfizer, BioNTech Say Their Covid-19 Vaccine is More Than 90% effective

Pfizer Inc has announced that its experimental vaccine is more than 90 percent effective in preventing Covid - 19 based on initial data from a large study, a major victory in the fight against the pandemic.

Pfizer and German partner BioNTech SE BNTX.O are the first drugmakers to show successful data from a large-scale clinical trial of a Coronavirus vaccine.

Commenting on the news, Alexander Gintsburg, Director of Moscow’s Gamaleya Institute, which developed Russia’s main vaccine candidate SPUTNIK V, said, “We welcome the progress shown by our foreign colleagues in the

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freedom cannot continue but I would certainly go along if Hong Kong people continue to fight for the core values of Hong Kong,” one of the disqualified assembly members, Kwok Ka-Ki, told reporters.

China denies curbing rights and freedoms in the global financial hub, but authorities in Hong Kong and Beijing have moved swiftly to stifle dissent after anti-government protests flared in June last year and plunged the city into crisis.

development of a vaccine against the new coronavirus. The more vaccines are available in the world, the better people will be protected.” He further added, “People at high risk of infection - primarily medical workers - are already being actively vaccinated in our country. Production is being scaled up and new production sites are joining the process. In the near future we expect to publish interim results of the post-registration trial of the vaccine Sputnik V, the so-called Phase III trials. I am sure that its effectiveness level will also be high.”

Moreover, chief physician of infectiology and tropical medicine and head of the Special Unit for Highly Contagious Life-threatening infections at Munich Shwabing Clinic, Germany, Clemens Wendtner said, “This is remarkable, as many ongoing vaccination studies on Covid - 19 currently only assume a success rate of at least 50 percent. In addition, it should be emphasized that a sharp end point has been defined - infection yes or no. Alternatively, with less high expectations of a vaccine, already attenuated disease courses, so-called mitigated courses, could be considered a success. In addition, the mRNA vaccination appears to be effective after only four weeks, which means that one does not have to wait long for protection.”

And Walid Gellad, professor of medicine at University of Pittsburgh, U.S., noted, “This is a hint that these mRNA vaccines are likely to work, and there’s at least one other. And they’re likely to be safe, at least from this trial. So that’s highly encouraging. The other thing that’s highly encouraging is that science can now create a vaccine in a relatively short amount of time and test it, which gives a lot of hope for the future when these things happen again.”

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News in Focus

The Red Dominates EGX The Egyptian Exchange (EGX) lost around LE 13.3 billion of market capitalization in October.

By Hanan Mohamed

T

he Egyptian Exchange (EGX) concluded the month of October in the red zone, losing around LE 13.3 billion of market capitalization. The resignation of CIB’s Chairman Hisham Ezz El-Arab was one of the significant events of the month that

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affected the trading.

The benchmark EGX30 dipped 4.31, or 474.02 points, to close October at 10,515.25 points, compared to 10,989.27 points in September.

The small and mid-cap index EGX70 declined by 6.62 percent, or 132.67 points, to close at 1,870.70 points, compared to 2,003.37 points at the last session of September.

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News in Focus The broader index EGX100 dropped by 5.27 percent, or 152.68 point, to record 2,743.47 points, from 2,896.15 points by the end of the previous month.

Moreover, the equally weighted index EGX 50 lessened 3.37 percent, or 69.46 points, to end the month at 1,990.07 points, down from 2,059.53 points in the prior month.

According to financial markets expert Doaa Zidan, the benchmark witnessed an occasional movement between the levels of 10,800 to 11,400 during the month of October. She further explained to a local media outlet that the stock market was waiting for any positive incentives, adding that the index has weakened with the fluctuation of global markets due to the US elections and the high number of coronavirus cases, with the possibility of a complete or partial closure of the economy.

Zidan noted that the benchmark exceeded the level of 10,800, which is a rising trend line in the short term especially with the weakness in the share’s price movement, due to the weakness of the buyer and the strength of the seller in anticipation of increasing risks and seeking to provide liquidity in the event that the index is unable to stay at the top level of 10,800 again.

“The index’s coming target may be at 9,000 to 9,500 in November, amid the emergence of any incentives and stability in the markets,” she said.

Financial Market Expert Hanan Ramses also explained that the second wave of Coronavirus and fears of an economic lockdown around the world once again may affect the volumes and values ​​of foreign trade in emerging markets, including Egypt.

CIB chairman steps down The Commercial International Bank – Egypt (CIB) announced on October 23 the Board of Directors’ unanimous decision to appoint Sherif Samir Sami, the current Chairman of the Governance and Nominations Committee, as a nonexecutive Chairman of the Board of Directors of CIB - Egypt, after obtaining the approval of the Central Bank of Egypt (CBE), according to a CIB statement.

In addition, Paresh Sukthankar was appointed as a Non-Executive Board Member by Fairfax Financial Holdings Ltd, which owns a total of 6.55 percent of the bank, replacing Bijan Khosrowshahi who stepped down after concluding six years of service.

The decision of the Board of Directors came after the resignation of Ezz Al-Arab, who was also the managing director of the bank, from the chairmanship of the board as of October 22, following a decision to step him aside by the CBE, pursuant to Clause (i) of Article (144) of the Cen-

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tral Bank of Egypt Law and the Banking System and promulgated by Law No. 194 of 2020.

On the same day, EGX decided to suspend trading on the shares of CIB - Egypt, at the request of the Financial Supervisory Authority. Trading on the bank’s shares was then resumed on October 25.

Market capitalization and trading volumes Concerning market capitalization, EGX recorded LE 605.4 billion by the end of October, compared to LE 618.7 billion at the end of September, which marks a decrease of 2.15 percent or LE 13.3 billion.

The total value traded in October recorded LE 47.9 billion, while the total volume traded reached 7,005 million securities executed over 793 thousand transactions, compared to a total value traded of LE 66.2 billion and a total volume traded of 9,670 million securities in September, over 953 thousand transactions.

Stocks trading accounted for 55.82 percent of the total value traded of the main market, while the remaining 44.18 percent were captured by bonds over the month.

Listed Stocks recorded a trading volume of 6.65 billion during the month, through 778,622 transactions, with a turnover of LE 24.61 billion, compared to a trading volume of 9.19 billion shares, traded through 937,268 transactions, with a turnover of LE 27.66 billion in September.

Egyptians represented 82.6 percent of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 10.5 percent, while Arabs captured 6.9 percent. Foreigners were net sellers, with a net of LE 1,006.1 million, and Arabs were net buyers, with a net of LE 371.4 million, after excluding deals in listed stocks.

Since the beginning of the year, Egyptians have represented 75.3 percent of the value traded in listed stocks after excluding deals. Foreigners have accounted for 18.1 percent, while Arabs have captured 6.6 percent. Foreigners were net sellers by LE 13,595.3 million, and Arabs were net sellers by LE 1,107.6 million, after excluding deals in listed stocks since the beginning of 2020.

Capital increase EGX witnessed a capital increase of five companies, with a total of LE 177 million.

The five companies are the Egyptian Company for Construction Development- Lift Slab, whose capital increase amounted to about LE 84 million, and Ibn Sina Pharma with a value of LE 34 million, in addition to Al-Mohandes Insurance with a value of LE 37 million, Nasr for Civil Works with a value of LE 18 million, and El Shams Pyramids Co. for Hotels & Tourism Constructions with a value of LE 2 million.

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News in Focus

Egypt

to Issue First Sovereign

Islamic Sukuk

The cabinet approved a new sovereign sukuk bill early November, aiming to widen Egypt’s investors base.

By Hanan Mohamed

S

eeking to attract a new segment of investments, Egypt is preparing to issue a sovereign sukuk bill, which was approved by the Cabinet in November, and will be officially issued once approved by the House of Representatives and ratified by President Abdel Fattah El Sisi.

“The move will usher Egypt into the Islamic finance world,” Minister of Finance Mohamed Maait said in an official statement, noting that the volume of sukuk issued globally until the end of June 2020 amounted to $2.7 trillion.

The minister further explained that Egypt’s issuance of sovereign sukuk would contribute to attracting a new segment of investors in accordance with the principles of Islamic Shari’a law,

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thus providing additional financing and liquidity to government financial markets, reducing the cost of financing the state’s budget deficit, and prolonging the average life of the debt portfolio.

Generally known by their Arabic name, sukuk are financial products compliant with Shari’a law. According to Maait, the issuance of sovereign sukuk is based on the usufruct of the assets owned by the state in private ownership, by selling the right to usufruct these assets without the right of the title, by leasing them, or by any other method consistent with the issuance contract without guaranteeing the owner of the sukuk in the assets in accordance with the principles of Islamic Shari’a law.

The minister confirmed that the final form of the bill was approved after referring to all ministries and agencies concerned with financial con-

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News in Focus trol, some Islamic banks with experience in the field of issuing sovereign sukuk, and Al-Azhar, in order to reach the best formula for the articles of the law.

Hailing the decision and its prospects for the Egyptian economy, economic expert Shimaa Emara tells Business Today Egypt that the “movement towards issuing sovereign or Islamic sukuk is a step to attract a segment of investors that choose to distance themselves from banking financial transactions which depend on obtaining a specific interest regardless of the gain or loss.”

Pointing out that the number of dealers with the banking sector in Egypt does not exceed 30 million people, Emara notes that this number can be multiplied according to the demographic distribution of the population in Egypt for those belonging to the age group above 15 years and even older than 65 years.

“Also, Islamic bonds could be an element of attraction to increase the number of those dealing with the stock market; and thus, it could be an influential factor in the recovery of the Egyptian Stock Exchange due to the possibility of attracting [new] segments of dealers, whether Egyptians or foreigners,” Emara says.

Moreover, economic expert Khaled El Shafei explains that the Egyptian government is seeking to diversify its sources of financing, and to find wider tools for financing methods, provided that they are less expensive. He notes that resorting to introducing sukuk is one of the new mechanisms for financing the state’s general budget.

El Shafei indicates that since the beginning of the Coronavirus pandemic, Egypt has been seeking to find funds in new and varied ways, in order to meet the needs of the budget. Recently, green bonds were offered, as well as other funds with the aim of containing the economic and financial impact of the pandemic, which has affected major global economies.

Egypt issued sovereign governmental green bonds, the first of their kind in the Middle East and North Africa, at a value of $750 million, domestically and in the London exchange stock market, in September and October.

“Financing packages, whether sukuk or bonds, support the state’s efforts to confront the repercussions of the Coronavirus and to help the Egyptian economy to preserve the success gains of the economic reform program,” El Shafei says.

More about sukuk The principle of sharing in profit and loss is what distinguishes the sukuk Islamic bonds from other investment tools. The sukuk holder is given ownership of a share in the assets of a specific project or investment activity, which is

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negotiable according to the terms of the Islamic financing formulas. Companies of all kinds can issue sukuk as means of obtaining financing; and shareholders share profit and loss with the company, as they get a percentage of the profits, which is determined upon contracting; and they bear losses according to that specified percentage.

Sukuk are nominal securities of equal value, issued for a specified period, each of which represents a common share in the ownership of assets, benefits, rights, a specific project, its rights or cash flows, according to what is specified in the IPO or information memorandum as the case may be.

Sukuk and shares are similar in that both represent a common share in the ownership of assets that generates return, or participation in the capital of a profitable project.

The types of sukuk issuance are divided into general issuance, whereby the sukuk are offered to natural or legal persons who are not predetermined; and private issuance that includes offering the sukuk to natural persons or legal persons of financial solvency or predetermined financial institutions.

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News in Focus

Egypt-UK Economic Relations on an Upward Trend Chairman of the EgyptianBritish Chamber of Commerce Ian Gray speaks about investment opportunities in Egypt, and the prospects of bilateral economic relations in the near future.

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News in Focus

By Hanan Mohamed

T

he economic relations between Egypt and the United Kingdom have been witnessing significant developments in light of Covid-19, Brexit and Egypt’s economic reform program.

There are currently over 900 UK-invested companies operating in Egypt. Moreover, the total trade volume between the two countries has steadily increased over the last few years.

And as it hit £1.2 billion during the first eight months of 2020, the Egyptian-British Chamber of Commerce launched a unique online B2B platform entitled “Trade Accelerator,” bringing the professional communities of both countries together in one digital space.

Launched in October, ‘Trade Accelerator’ is a professional social media platform that allows direct interactions between all members via private messaging, wall posts, viewing of other members’ profiles and sharing of relevant publications. Members can also share posts across platforms, including embedding Tweets and uploading YouTube videos.

To learn more about this new digital platform, as well as UK investments and businesses in Egypt, we sat down with the Chairman of the Egyptian-British Chamber of Commerce Ian Gray who gave us some precious insights.

Tell us more about ‘Trade Accelerator’ and its primary aims?

‘Trade Accelerator’ is focused on the UK and Egypt, so that companies and people looking for contacts or hearing about opportunities in the two countries can find those opportunities and find each other much more easily.

The web now offers such a wide access to people and companies; it is sometimes difficult to find potential partners or customers who have the same priorities. The ‘Trade Accelerator’ is focused on the bilateral opportunities and will make it easier to find partners.

What is the volume of trade exchange between Egypt and the UK? The total trade volume has steadily increased over the last few years and crossed the £2 billion mark in 2019 (£2.1 billion in 2019, +9 percent from 2018). The total trade volume in 2020 until the end of August is £1.2 billion.

Which sectors do British investments focus on in Egypt?

British investment focus is not very different from any other country.

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It is about matching the potential of the market with the skills and capability of the investing country. However, the investment is all going to come from the UK-based companies not the Government.

Fortunately, one of the greatest strengths in the U.K. is the financial sector which can provide funds for investing in almost any sector where the opportunity to grow is good. This is why the Egyptian-British Chamber of Commerce has just launched, in cooperation with Egyptian trade bodies, the online ‘Trade Accelerator’ to provide a ‘shop window’ for companies in both countries to display their interests and opportunities.

What is the total volume of British investments in Egypt?

Egypt’s economic reform program has supported increased inflows of FDI from the UK, which stood at $6.3 billion in 2018/2019. While the majority of inflows are in the upstream exploration sector, we are witnessing a gradual diversification of investment in sectors ranging from construction, to agriculture, health, manufacturing, renewables and transport.

What is the total number of British companies operating in the Egyptian market?

There are already over 900 UK-invested companies operating in Egypt, according to GAFI, the Egyptian General Authority for Investment & Free Zones. Well-known names include BP, Shell, Vodafone, HSBC, GSK, AstraZeneca and Unilever, among many others.

In particular, there are now many UK retail brands trading successfully in Egypt; Matalan opened its doors in Egypt earlier this year.

What investment opportunities do you see in Egypt?

The real opportunities of the natural resources of wind and sunshine in Egypt are ideal, with the world heading towards green sustainable economies. Adding to this, the geographic location and trade agreements make Egypt a potential business gateway to both Africa and the rest of the Middle East.

The other great asset in Egypt is the potential workforce of many well-educated staff. The best opportunities will come not just from trying to serve within Egypt as a market but using the resources available in Egypt to trade in other countries.

How do you assess the bilateral economic relation between the two countries?

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News in Focus

veloping economy, all of which are attractive to UK companies. The Chamber is working hard to help make that come to life.

How has Covid-19 impacted the economic relation between Egypt and the UK? Covid-19 is a serious challenge to governments and countries all over the world. It has adversely impacted some businesses significantly, such as aviation and tourism; and it has accelerated working in a virtual manner.

I have seen some good cooperation between Egypt and the UK; dealing with PPE equipment and the increase [of remote work] have enhanced the opportunities for Egyptian businesses to offer remote services to companies in the UK and elsewhere.

The business environment has changed, with different priorities; but it has not affected relations between the countries.

I hope that we shall hear very soon that the UK and Egypt have reached a final agreement on a trade deal to take effect as the UK moves out of the transitional phase of leaving the EU. In the aftermath of Brexit, what opportunities have been created between Egypt and the UK? The UK is looking to develop bilateral agreements with other countries including Egypt, which reflect the best interests of both countries without having to compromise or being restricted by some other EU country’s local political priority. Egypt offers opportunities of a talent pool, partnerships with the rest of Africa and the Middle East and a rapidly de-

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How have businesses between the two countries dealt with Covid-19?

I think businesses between both countries have dealt with Covid-19 as best as possible under the circumstances. The trend for Egyptian exports to the UK showed a steep decline in value terms during Q2 2020 (-37 percent YoY), which is understandable as this was the period [when] the UK had a lockdown.

The entire UK economy faced the largest slowdown in recent history. Initial figures for Q3 2020 show a more encouraging trend (-15 percent YoY until the end of August).

UK exports were also affected in the first quarter of 2020 (-9 percent YoY), but recovered in the second quarter (+3 percent YoY). From our conversations over the past few months with UK exporters and various Chambers of Commerce in the UK regions, we anticipate a further recovery in Q3, as exporters view Egypt as a market that has coped well with the Covid pandemic compared to other export destinations.

How did the UK-Africa Investment Summit help in enhancing trade and economic relations?

The UK Government Africa Investment Summit was a great opportunity to reinforce the message that the EBCC pushes in the UK about Egypt being a business gateway to Africa and the rest of the Middle East.

To what extent did the economic reforms applied by the Egyptian government help in attracting British investments?

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News in Focus

Over the last few years, the economic reforms have clarified and simplified the business environment in Egypt. This is helpful for companies thinking of investing in the Egyptian market. However, there are still big cultural differences in how people work together. As an example, UK companies want to plan meetings a long way upfront; and in Egypt, they can be organized very quickly. You cannot expect Governments to simplify the cultures. That is up to companies and the people in them, if they want to be successful. UK companies really appreciate that almost everyone they meet in Egypt speaks English. Â What are the future plans of the British-Egyptian Chamber?

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The Chamber is working with the British Egyptian Business Association (BEBA) in Cairo, as well as other business groups (EBA, EJB, etc.) to ensure that any companies wanting partners to do business across the two countries can find each other. Large companies always find each other but mid-sized companies find this difficult. We help companies of all sizes talk to each other and we work with both Governments to understand the priorities and help companies take advantage of this.

Both the UK and Egypt have made Green Economy a big priority in the next few years; and with all the sunshine and wind available in Egypt, the Chamber is really excited for what can happen and what our two countries can do together.

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News in Focus

The East Mediterranean Gas Organization:

A Partnership to Stand

In light of the recent signing of the Charter of the East Mediterranean Gas Organization, we highlight some of the remarkable partnerships among member states in the oil and gas sector.

By Noha El Tawil

H

aving signed the charter of the East Mediterranean Gas Organization last September, the seven member states of the — formerly — East Mediterranean Gas Forum have officially turned the alliance into a regional organization headquartered in Cairo.

The charter was signed by Egypt’s Minister of Petroleum, Mining, and Mineral Resources Tarek al-Molla, and the energy ministers of Cyprus, Greece, Israel, Italy, Jordan, and Palestine, at the headquarters of Egypt’s Petrojet company.

Launched in January 2019, the forum has aimed to reinforce cooperation among member states.

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And the newly established organization will pursue the same path. According to a press release, the organization will contribute to the development of natural gas fields and maximize the utilization of natural resources in the Mediterranean region.

Moreover, al-Molla explained during the signing ceremony that the organization seeks to contribute to the optimal economic exploitation of the countries’ gas reserves, by utilizing the existing infrastructure, as well as building new infrastructure when needed for the benefit of the common welfare of the people.

Thereupon, we highlight some of the remarkable partnerships among the organization’s member states in the oil and gas sector.

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News in Focus

Egypt and Cyprus Egypt and Cyprus plan to build a gas pipeline extending from the Cypriot gas field Aphrodite, to Cairo, according to an agreement that both countries signed in 2018. The gas from the Cypriot field will be liquefied at Idku and Damietta facilities, and then exported to European countries. The field is set to start production in 2026, with an initial phase consisting of five wells whose output will be 800 million cubic feet per day.

Egypt is the region’s only country with gas liquefaction plants. The majority of liquefaction processes are currently taking place in Edco Liquefaction Factory run by Egyptian LNG, a joint venture between the state-owned Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Co. (EGAS), Royal Dutch Shell, Petronas, and Engie. The factory has an annual capacity of 7.2 million tons.

The second plant, located in Damietta, is coowned by the Spanish Union Fenosa. It has an annual capacity of up to five million tons and can store 130,000 tons of liquefied natural gas. The plant has been out of service since February 2013, when the government suspended gas export to meet local needs.

Egypt and Jordan The Arab Gas Pipeline was launched in 2001 to deliver natural gas from Egypt to Jordan, Syria, and Lebanon. The pipeline extends over 1,200 kilometers, and was built at a cost of $1.2 billion.

In 2019, Egypt’s Edco Liquefaction Factory exported 3.64 billion cubic meters to Jordan through the Arab Gas Pipeline.

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News in Focus

Cyprus, Greece and Israel In early 2020, the three countries signed a deal to build a pipeline stretching over 1,900 kilometers to carry 10 billion cubic meters of gas per year from “Israeli and Cypriot waters to the Greek island of Crete, on to the Greek mainland and into Europe’s gas network via Italy,” according to Reuters. The project, dubbed EastMed, is worth $6-7 billion and will be completed by 2025, if the three states reach a final investment decision (FID) by 2022. Nevertheless, given the recession ensued from the Covid-19 pandemic, all FIDs around the globe are likely to be postponed, according to a Reuters energy report issued in August.

Egypt and Israel In 2018, Egypt’s Dolphinus Holdings, Noble Energy, and Israel’s Delek Drilling signed an agreement for Egypt to import from Israel 85.3 billion cubic meters of gas, worth $19.5 billion over 15 years, so it would be liquefied and exported to Europe.

The gas is extracted from the Israeli Leviathan (60 billion cubic meters) and Tamar (25 billion cubic meters) fields. It is transported through a gas pipeline connecting the port of Ashkelon to Al-Arish.

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News in Focus

Israel and Jordan

In January, Israel began exporting gas to Jordan, in accordance with a $10 billion deal signed in 2016. Jordan is set to receive 45 billion cubic meters over 15 years. The amount per annum will be 3-3.5 billion cubic meters.

Egypt and Italy Eni, an Italian multinational oil and gas company headquartered in Rome, has been operating in Egypt since 1954. In 2019, it produced 27 million barrels of oil and 551 billion of standard cubic feet of gas. The company’s production activities are taking place in the Shorouk block (Eni 50 percent), Abu Rudeis fields (Eni 100 percent), the Western Desert in the Meleiha (Eni 76 percent), South West Meleiha (Eni 100 percent), Ras Qattara (Eni 75 percent), West Abu Gharadig concessions (Eni 45 percent), the Ashrafi (Eni 50

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percent), Baltim (Eni 50 percent), Nile Delta (Eni 75 percent), North Port Said (Eni 100 percent), North Razzak (Eni 100 percent), Temsah concessions (Eni 50 percent), Ras el Barr (Eni 50 percent), and South Ghara concessions (Eni 25 percent).

As for exploration activities, Eni drilled an exploration well this year in a prospect called Bashrush, located in the Egyptian waters of the Nile Delta. It also made a new gas discovery in Great Nooros Area and drilled an exploratory well dubbed Nidoco NW-1.

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Spotlight

On Africa and Covid-19:

Recovering Stronger

As the whole world is fighting the unprecedented repercussions of the global pandemic, Commissioner for Infrastructure and Energy at the African Union Commission (AUC) Dr. Amani Abou-Zeid gives us an inside look into Covid-19’s grave impact on the continent, the latter’s “exemplary” actions throughout the crisis, and how Coronavirus presents a chance for Africa to grow better and stronger.

By Nourhan Magdi

T

he Coronavirus crisis has hit Africa quite hard, with the economic damage and health costs leaving the continent in need of an estimated $1.2 trillion over the next three years, the International Monetary Fund (IMF) projects.

Accordingly, an urgent and comprehensive strategy has become a necessity to not only mitigate and contain the crisis, but also for Africa to recover better and stronger.

This month, Business Today Egypt speaks to the Commissioner for Infrastructure and Energy at the African Union Commission (AUC) Dr. Amani Abou-Zeid about Covid-19’s impact on Africa’s economy, and how the pandemic

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can be seen as an opportunity for the continent to recover stronger.

What did Covid-19 do to Africa?

“The damage in the African continent went beyond the [pandemic],” Abou-Zeid states, clarifying that the losses caused by the virus could reach $1.2 trillion.

“The African continent has seen a hiatus in different aspects of life, including tourism and aviation, which are among the largest sources of income for the continent, with the tourism sector making up 10 percent of its income,” Abou-Zeid says, clarifying that the lockdown that followed the spread of the Coronavirus has also deeply affected the African continent in various other sectors like

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Spotlight

transport and electricity.

The Commissioner also highlights the halt of the supply chains, as imports and exports were paused, which has had a great impact on many African countries, especially those whose incomes rely on exporting raw materials.

Further noting the scale of negative impacts on the different segments of the African society, Abou-Zeid cites that around 60 percent of Africa’s economy “depends on [the] informal sector;” and thus, many population segments have been largely affected. She adds that an important part of Africa’s revenues comes from remittances of African nationals living abroad, which have also been hit hard. Even financial transfers from cities to countryside were affected, Abou-Zeid says.

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Containment and recovery strategies Presenting the continent’s containment and recovery plans, the Commissioner notes that Africa’s actions during the first weeks of the pandemic were “exemplary,” adding, however, that the excellent steps taken by the continent were underreported by the media.

“There were concerted efforts and solidarity among African countries to deal with the virus, like establishing a fund to help mitigate the negative impact, as well as sending food supplies, medical aids, PPEs and humanitarian teams to countries with shortage within the continent,” Abou-Zeid says, noting that Egypt sent aid to 30 African countries, whereas Morocco sent aid to 15 countries; and Chinese business magnate, investor Jack Na of China

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also sent aid to different African states. Moreover, the African Center for Disease Control (ACDC) has been playing an “incredible role” in terms of supporting countries to control the virus, as well as developing a platform to pool medical orders, and establishing and purchasing medical supplies with unified prices for all countries.

Sectorial ministerial meetings have also been held to discuss the negative impact of the virus and improve the continent’s resilience in controlling it, like in electricity and energy sectors, where many countries “need to shift to a de-centralization approach and to rely more on renewable energy, to feed remote areas within [their] territories,” Abou-Zeid says.

“We are working to help electricity utility companies to restructure themselves, adopt new technologies and resume strongly.”

Stressing that digitalization is the most im-

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portant part of the continental recovery plan, with e-learning, e-health, e-commerce, finetech, and a shift to digital transformation in every sector becoming inevitable, the Commissioner notes that the ministerial meetings have guided the continent’s urgent relief plans, as well as the recovery plans advocating free access to online educational platforms for all students amid the lockdown. Besides, telecommunication operators have stepped in, and expanded access hours for their platforms, while others reduced charge to support populations.

Abou-Zeid also notes that Africa has created a continental task force to help resume African air transport, “so that our priorities go along the lines with the precautionary measures and standards set by the World Health Organization and the International Civil Aviation Organization (ICAO) to be applied by airlines and at airports.”

Moreover, as most countries have resumed flight movement, the Commissioner announces that the African Union is working on mobilizing technical and financial support to the African air transport industry, including the small airlines that have witnessed setbacks. In that light, she highly commends the measures

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taken by Egypt in support of the air transport and tourism sectors, among a set of phased measures to gradually open the economy, noting that Egypt has been recognized as one of the best examples in dealing with the global pandemic crisis.

The other face of the crisis Despite all the negative impacts that have inflicted billions of dollars in losses on the continent, Abou-Zeid still sees that the pandemic has given a great opportunity for Africa to rerethink and re-engineer all sectors, work and life, noting that lifestyles have changed after the pandemic, with people caring more about healthy habits such as sports, getting more sunlight, strengthening immunity, and washing food thoroughly, etc.

“The opportunity is the other face for a crisis,” Abou-Zeid says, adding that the pandemic has forced many countries and companies to adopt new business models, and to expedite digital transformation. African countries that started to incorporate technology into different sectors, like Egypt, have higher economic resilience, the Commissioner says, adding that “[this] has enabled Egypt to manage the crisis very professionally despite the huge economic pressures it encountered.”

Moreover, she affirms that there are some lessons that Africa and the whole world have learned well during this pandemic and its shared experience, noting that some sectors have been dramatically affected, and will need rethinking by governments to cope with the global developments. For instance, the employment market will never be the same again, and so are the skills needed for work.

The crisis has also highlighted the urgent necessity of the Internet, which is no longer a “luxury,” Abou-Zeid stresses. “Only 39 percent of the continent [population] have internet access, and 60 percent do not have the necessary skills to use it or benefit from its applications,” she says, noting that “e-commerce has increased by 500 percent, and marketing has totally changed, which means that education and even vocational training cannot be similar to that of six months ago.”

Supply chains disruption due to the lockdown has also made clearer to the continent the importance of promoting African industries and intra-African trade, the Commissioner notes, adding that The African Continental Free Trade Area (AfCFA) which is expected to be operational in January 2021 provides an excellent opportunity to boost intra- African trade.

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Who is Commissioner Amani Abou-Zeid?

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bou-Zeid is the Commissioner for Infrastructure and Energy at the African Union Commission (AUC).

She is in charge of sectors covering Energy, Transport, Tourism and ICT. Prior to joining the AUC, Abou-Zeid served for more than 30 years in leadership roles at top-tier international organizations, such as the African Development Bank (AfDB), UNDP and USAID, with a focus on infrastructure and energy programmes.

She has a Ph.D. in Social and Economic Development from the University of Manchester, UK, a Masters of Public Administration from Harvard University, an MBA from Senghor university, a degree in Arts from Université Sorbonne-Paris IV and a BSc in Electrical Engineering from Cairo University.

Abou-Zeid has received numerous international awards for her leadership and excellence, including the Medal of Wissam Alaouite de l’Ordre Officier from His Majesty King Mohamed VI of Morocco; and she was also recognized as a World Young Leader by the European Union.

Abou-Zeid was selected among the 50 Most Influential Women in Africa in 2012 by the Langaa Research and Publishing Common Initiative Group. Moreover, she was chosen as one of the 100 Most Influential African Women (100MIAW) in 2019 by the leading PR and Rating firm Advance Media. She is the only Egyptian and one of two North African women selected in the inaugural list, which features distinguished women whose work is considered an inspiration to the next generation of women in Africa.

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The Threat of a

“Lost Decade�

The United Nations Conference on Trade and Development (UNCTAD) projects a worldwide recession or permanent loss of potential output as a result of the Coronavirus pandemic, unless a policy reversal is adopted.

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Spotlight

By Noha El Tawil

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itled “From Global Pandemic to Prosperity for All: Avoiding Another Lost Decade,” the United Nations Conference on Trade and Development (UNCTAD)’s report released in September suggests that the world may experience either a prolonged recession, a double-tip recession, or permanent loss of potential output amid Covid-19.

The next stage of the global crisis may be the collapse of the tourism industry, the report states, projecting that the world can possibly experience a “lost decade,” if countries pursue the wrong policy steps and ignore previous experiences.

Global economy challenges According to the UNCTAD report, the pandemic’s “effects on industry were less intense than in services, but lockdowns still hit output hard in many sectors, especially consumer durables,” further adding that there were sharp increases in inventories “as consumers and investors cut their demand for non-essential products in response to the crisis”. In contrast, “essential activities or sectors operated almost at full capacity during the Covid-19 shock.”

The world’s supply is reported to have been sent to negative territory because of four reasons. The first is the fall in demand on nonessential goods and services; the second is the subsequent drop in private investments, in addition to financial markets’ losses, and the increase in financial constraints, “as banks raised lending standards and interest-rate spreads in anticipation of higher delinquency rates and higher risk premiums in capital markets, even after a reduction in the base interest rate by central banks.”

Furthermore, the report states that “in May 2020, low- and lower-middle-income countries held only 5.5 percent of the SDR 204 billion currently in circulation. This figure rises to 24 percent, if upper-middle-income countries are included.” It explains that “newly-issued SDRs are allocated to countries in accordance with each country’s quota share at the IMF and lowand lower-middle-income developing countries are the primary users of SDRs,” noting that

by May 2020, low-income and lower-middleincome countries had used 58 percent and 52 percent of their current allocation of SDRs, respectively, compared to 18 percent for uppermiddle-income countries and 4 percent for high-income countries.

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Tracking the global economy According to the UNCTAD report, in the first few months of 2020, the global debt-to-GDP ratio jumped by no less than 10 percentage points to 331 percent of GDP. Over the same period, the personal wealth of billionaire stockholders who own the majority of corporate stocks rose by over $500 billion in the United States alone.

Moreover, the world’s primary commodity prices sharply dropped in the first half of 2020, compared to the same period in 2019. Prices

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of all commodities fell by 21.5 percent. Prices of non-fuel commodities declined by 2.3 percent, food prices dipped by 4.9 percent, and agricultural raw materials by 6.8 percent. Prices of minerals, ores and metals fell by 8.2 percent.

Meanwhile, the prices of fuel commodities were sent to dive to record -36.9 percent.

The ‘lost decade’ scenario Based on current conditions and similar past events, the report presents a ‘lost decade’ scenario, projecting what lies ahead.

In case of resorting to fiscal austerity, the scenario projects that annual figures until 2030 will be as following: Global GDP growth will decline by 1 percent; unemployment will rise by 2 percent; and labor income shares will drop by 3 percent, so as a portion of income worth $40 trillion will be transferred from workers to profit earners by 2030.

In shorter-term, the UNCTAD report sees a “pattern of a deep global recession followed by a technical bounce”. It indicates a 4.3 percent reduction in world output in 2020 and a 4.1 percent expansion in 2021. “The Covid-19 recession will likely amount by end of 2021 to a

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$12 trillion loss in global income,” according to the report. Moreover, a full recovery to the preCovid-19 trend by 2021 is considered unlikely.

The economies of some high-income states will hit a double-digit decline in 2021, the report projects, noting that G20 countries adopted temporary relief packages that are estimated at a staggering $13 trillion.

Developed countries’ economies are forcast to contract by 5.8 percent by the end of 2020; and are expected to grow by 3.1 percent in 2021.

As for developing countries, between 90 and 120 million individuals will be pushed below the poverty line, according to the UNCTAD report.

Between October 2020 and March 2022, developing states are likely to experience a $2 trillion to $3 trillion gap in their financing needs because of declining tax revenues, collapse in export earnings, pending debt payments, and increased health spending.

Moreover, in 2020-2021 the report states that developing countries will be facing substantial redemption schedules for their public external debt, amounting to between $2 trillion and $2.3 trillion for high-middle-income countries

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and to between $600 billion and $1 trillion for lower-middle and low-income countries.

By the end of 2020, the economies of developing countries are projected to contract by 2.1 percent; and in 2021, they are expected to grow by 5.7 percent.

As for regional projections, the economy of Africa is expected to grow by 3 percent in 2020 and 3.5 percent in 2021. The economy of Latin America and the Caribbean will grow by 7.6 percent in 2020 and 3 percent the following year. And the economy of Asia is expected to grow by 0.9 percent in 2020 and 6.3 percent in 2021.

A growth revival scenario To avert a “lost decade”, the report outlines a “policy reversal that could help recovering robustly from the crisis and achieve the SDGs,” emphasising avoiding the mistakes of the last financial crisis. It includes a strong fiscal expansion and a “green growth strategy”.

Moreover, the report stresses that it is crucial not to consider employment solely in terms of the number of jobs created, but also with respect to wage growth for already low-wage jobs, recommending that advanced economies shall commit to full employment, and developing economies shall reduce informal employment.

The enlargement of the tax base will subsequently boost tax revenues, it adds.

Moreover, central banks are recommended to push the real interest rate in the negative digits in order to stimulate borrowing and spend-

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ing among firms and individuals. And subsidies granted to fossil fuels and industrial farming shall be revisited.

Additionally, a large allocation of SDRs – somewhere between $1-3 trillion— is considerd the “most feasible and least burdensome option” in order to alleviate balance of payment pressures in the short run, the report states.

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Infographic

Covid-19 and the Egyptian Economy ratio (despite its significant reduction over the previous two years), weak revenue-mobilization, an unfavorable structure of the government budget characterized by limited allocations to key sectors, such as health and education, sluggish job-creation in the formal sector, and underperformance of exports and non-oil FDI. The multi-dimensional health and economic crisis caused by the pandemic underscores the importance of advancing the human capital agenda and strengthening social protection. A pending second wave of reforms to unleash private sector activity and address the aforementioned challenges is crucial to create better employment opportunities and improve livelihoods.

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ovid-19 is dampening growth, undermining external income sources, disrupting fiscal consolidation, and exacerbating long-standing challenges.

Social hardship is aggravated by the ensuing job losses. Maintaining the recently-achieved macroeconomic gains is crucial for the economy’s resilience against such a severe shock.

This multi-faceted health and economic crisis underscores the urgency of advancing the human capital agenda and strengthening social protection, as well as adopting structural reforms to enhance private sector activity and job-creation.

Key conditions and challenges Covid-19 and its disruptive repercussions intensified from March 2020 and have since interrupted an episode of a largely stabilized macroeconomic environment, characterized by relatively high growth, improved fiscal accounts, and a comfortable level of foreign reserves. At the same time, Covid-19 hit when long-standing challenges persisted, notably the elevated government debt-to-GDP

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Recent developments Economic activity slowed down, notably since the implementation of social distancing measures and the temporary suspension of air traffic. The Purchasing Managers’ Index declined to 38.3 during April—June 2020 (Q4-FY2020), its lowest level on record, indicating a large contraction in non-oil private sector activity.

Around 2.7 million jobs were lost during Q4FY2020, pushing unemployment to 9.6 percent (from 7.7 percent in the previous quarter), with employment losses mainly reported in the retail and whole-sale trade, manufacturing, tourism, transport and construction sectors, especially among informal workers.

An emergency response package worth LE 100 billion (1.7 percent of GDP) augmented health expenditures and social protection programs, including a one-off cash grant to irregular workers and extending the existing cash transfer programs. Forbearance measures were introduced in the form of delayed tax filing and loan repayments, in addition to subsidized credit to targeted sectors. Further, the Central Bank of Egypt slashed policy rates by 300 basis-points to ease liquidity conditions. Inflation was already moderating since early-FY2020, and has continued to decline, registering an average of 5.7 percent in FY2020 (from average 19.6 percent in the previous three years), reflecting sub-dued demand and the general decline in global commodity prices,

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Infographic including oil.

Foreign reserves depleted rapidly, due to largescale capital outflows at the outset of the crisis, in addition to the sharp drop in tourism, Suez Canal revenues, and merchandise exports. Meanwhile, Egypt has mobilized external financing, including a $2.8 billion stopgap loan under the IMF’s Rapid Financing Instrument, a $5.2 billion Stand-by Arrangement (of which the first $2 billion tranche was disbursed), as well as a $5 billion sovereign Eurobond and a $2 billion loan from a UAE-led commercial bank consortium. Reserves hence remained ample at $38.2 billion in endFY2020 (7 months of merchandise imports), albeit still below its pre-crisis peak of $45.5 billion in end-February 2020.

The exchange rate depreciated marginally from LE 15.7/$ in February 2020 to around LE 16/$ as of August 2020, with the authorities tolerating a reserve drain in the intervening months to absorb some of the pressure experienced by many emerging markets.

The budget deficit widened to an estimated LE 476.8 billion (8.2 percent of FY2020 GDP) close to the FY2019 level, but not reduced as previously expected. This was mainly due to the decline in the tax-to-GDP ratio (even prior to the crisis), which was exacerbated by the economic contraction and the postponed tax payments during Q4-FY2020.

Outlook Under the scenario that the pandemic will persist through early-2021, Covid-19 impact will be spread across two fiscal years, with the adverse effect expected to be more severe in FY2021. Thus, growth is expected to have remained positive, but declined from 5.6 percent in FY2019 to 3.5 percent in FY2020, and then further to 2.3 percent in FY2021, before rebounding in FY2022.

Private consumption in the near-term is expected to remain constrained as households’ incomes are affected by increased joblessness and salary cuts. Subsequently, poverty is forecast to increase, particularly in urban areas. Since high-skilled formal sector jobs were relatively shielded during the crisis, inequality is also expected to rise. Private investments will remain subdued given disrupted production and international trade.

Exports are projected to decrease with the global recession and restricted tourism, but Covid-19 has also seen compression of imports. While remittances may initially react countercyclically (as expats may increase one-off transfers), they are expected to eventually decline with the downturn in Gulf countries.

Thus, the current account deficit may deteriorate as the decline in remittances supersedes the expected narrowing of net exports. On the other

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hand, the capital and financial account is projected to remain buoyed by foreign borrowing, although FDI may decline, exacerbating a long-standing weakness in FDI into traded goods sectors.

Government debt is projected to increase from 90.2 percent of GDP in end-FY2019 to 93.8 percent of GDP in end-FY2020. However, the one-off cancellation of the debt owed by the government to the Social Insurance Funds (SIF) worth LE 371 billion (6.4 percent of GDP) is estimated to bring down government debt to 87.4 percent of GDP in end-FY2020.

Measures were introduced to mobilize domestic resources (including increased fees on some government services, a one -year deduction of 1 percent from salaries of public and private sector employees and 0.5 percent from pension payouts, in addition to amending the income tax law to enhance its progressivity), although these may not be sufficient to raise the revenues-to-GDP ratio. Thus, the deficit is projected to continue widening, before fiscal consolidation is resumed in FY2022.

Risks are dominated by pandemic scenarios.

Under a dismal scenario where this health crisis becomes protracted and lock-downs are re-imposed, the recovery may be delayed, and recentlyachieved gains from the macroeconomic reforms may be undermined and long-standing challenges may be aggravated.

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Face of Business

Behind the Scenes of Egyptian Food Bank Operations with CEO

Mohsen Sarhan

We speak to EFB’s CEO about the bank’s programs, future plans, and its substantial contributions to alleviate the Covid-19 crisis across Egypt.

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Face of business

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Face of business Photography by Maged Helal

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total of 690 million people worldwide suffer from food insecurity, making it one of the most prevailing global struggles. At least 90 percent of people suffering from hunger and poverty are mainly residents of developing countries, including Egypt. In that light, the Egyptian Food Bank, founded in 2006, has carried on an urgent mission to fight hunger through innovative solutions, providing over 150 thousand families each month with nutritional supplies.

We sat down with Mohsen Sarhan, CEO of the Egyptian Food Bank (EFB), to know all about EFB’s programs and its efforts to serve the society and help those in need especially during the Covid-19 pandemic.

Sarhan holds a BA in Economics from the Faculty of Economics and Political Science at Cairo University, a diploma in International Markets from the Arab Academy, in addition to a Master’s degree in Management of Nonprofit and International Development Organizations from the American University in Cairo, and another Master’s degree in Public Administration from Harvard University.

Apart from being the CEO of the Egyptian Food Bank, Sarhan represents the International Association of Fundraising Professionals as the President of the Middle East and North Africa region.

First off, can you simplify to our readers the aim and function of the Egyptian Food Bank in general?

Historically, and throughout the last 15 years, EFB has been trying to provide food security to Egyptian citizens under the poverty line, mostly people who cannot sustain themselves and are unable to work. At the Egyptian Food Bank, we offer them help to avoid hunger.

With food being among the highly essential basic needs for all human beings, the less economically able classes even pay more attention to it and consider it their top basic need that needs urgent support and care. Therefore, just as we aim to provide them with food security, we are trying to help them lead a dignified life.

This support provides daily living for more than 150 thousand families monthly. We support school nutritional programs as we have around 23 kitchens that serve 44 public schools with a number of students ranging from 35 thousand to 50 thousand on a daily basis. Furthermore, we support dozens of orphanages, nursing homes, and so on.

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Take us through the Egyptian Food Bank’s efforts during the time of Covid-19 pandemic.

What I mentioned above are our initial commitments, but when the Coronavirus spread and the lockdown was imposed last March, we were in front of around 5 million Egyptians from the labor class whose incomes stopped due to the crisis.

These people live from day to day, they have no savings, so when the crisis hit, they were instantly affected.

Consequently, since the crisis and the lockdown had happened around one month before the holy month of Ramadan, we repurposed all our production capacity that we were preparing for Ramadan to commit to an initial quantity of half a million families. On March 19, we drew how the production strategy is going to be executed, the content of the food packs, the distribution plan, etc. Two days later, we started a fundraising campaign that was followed by the first batch of distribution on March 22. It was a phenomenal and historical fundraising campaign that had never occurred before anywhere in the world.

‘The CEO Challenge’ initiative was launched, where most of the CEOs of the private sector from various fields stepped up and started calling each other to donate money for this stellar cause. It is worth mentioning that most of them are competitors; for instance, the four-telecom companies made an alliance led by the Minister of Communication and helped collect 250 thousand food packs. Corporate competition was put aside for the greater good; it was evident that there is a heart inside the machines.

The next step was the Individuals Fundraising, where hundreds of thousands of Egyptians donated; and only a week before Ramadan, we delivered half a million packs. Then, we made another commitment for another half a million packs during Ramadan. Our factory was topped up to its capacity, producing 40 thousand packs a day, we worked 24/7, and we were able to fulfill the extra half million. Therefore, in those two months, we delivered 1.5 million packs; this number is higher than what we had achieved in all of 2019.

In addition, we worked with our network of almost 5000 non-profit organizations across the 27 governorates, through which we delivered around 9 million hot meals in Ramadan. Besides our collaboration with the Ministry of Social Solidarity to provide the villages that were on lockdown with food; the day we received the request from the ministry, 10 trucks headed from our factory to these villages, and the next day they were all covered. This occurred more than once, and each time in less than 24 hours, we were able to deliver the packs.

We have also taken over [food supply] for

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Face of business university hospitals that have been turned into quarantine hospitals for Egyptians coming from abroad. It was a very harsh period, but we are glad we managed to be of value for people during it.

How did you manage to locate and reach all of these people?

We had to go a little experimental about that.

Even though our database included only around 800 thousand Egyptian families, we set a goal to reach 1.5 million. Therefore, we launched a portal called ‘EFB Relief Programs’, which was a robust salesforce; so that if a large number of people applied, it would not crash. After only three days from launching it, we received about 150 thousand requests, so we closed it to deliver the requests and then reopened it again to receive the following batch of 150 thousand requests and so on. We were determined to reach as many people in need as possible.

Tell us more about the Middle East Institute Award and its value to you and to EFB. It is truly an award that we didn’t call or ask for. I received an email from Paul Smith, the President of MEI, that we were nominated for that award; somehow our impact has been visible to them.

We received the Visionary Award, whose re-

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cord of accomplishment signals how prestigious it is; therefore, we consider their recognition as a great honor.

EFB has also been contacted and praised by many global entities, such as Google, Ford UAE, Beiersdorf Global AG, and many more, and now the MEI. We got great press coverage from around the world in the past period, such as Britain, Japan, France, China, Norway and Saudi Arabia...

What is EFB’s edge in reaching people living on the edge?

If you perceive EFB from a corporate perspective, it has two major edges; the first edge is that we are very professional, we hire people who know what they have to do and have the mean to get it done, and the majority of my staff are people we transition from the private sector... We are a very professional organization, we do not reinvent the wheel, we take practices and we apply them with the highest operation standards possible.

The second edge is that we have a wide reach, we don’t work with only our headcount, we work with about 80,000 employees in 5000 associations who are our partners nationwide. We have a solid network with these associations and those employees; therefore, when we instruct them to execute a task, we are able to reach all

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Face of business of Egypt at the same time.

At the Egyptian Food Bank, we always aim to reach every Egyptian in need wherever he is, our convoys cover towns and areas that local NGOs in governorates do not reach due to their existence on the borders or the lack of operational capacity to reach everyone.

What are EFB’s plans for 2021?

Broad lines… We will turn from generic to very specialized. We have been greatly investing in providing general feeding, but now we will switch to a very specialized mode of nutritional

support. The next step will be to have a specialized plan to feed for example the impoverished pregnant woman. That way, each pack will be designed for a specific purpose, targeting a more specific audience. We are also working on advanced tools to gauge the impact of these meticulously designed nutritional packs. Overall, we will focus on optimizing the service rather than scaling.

EFB is a social mediator; and therefore, we will have a bigger role in directing donations to places where they will make a difference to the quality of life.

EFB is a social mediator; and therefore, we will have a bigger role in directing donations to places where they will make a difference to the quality of life.”

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In-Depth

When Hope is Born in the Womb of Suffering Celebrating Egypt’s pivotal role in alleviating humanitarian crises across the globe, this month we shed light on the spirit of solidarity and extensive efforts put forth by government entities and civil society organizations in recent regional crises.

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In-Depth

By Yasmine Hassan

“I

f ‘hope is born in the womb of suffering,’ we may find in the current crisis what drives us to breathe new life into our relentless efforts to reinforce international multilateral action . . .” With these powerful words, Egyptian President Abdel Fattah El Sisi concluded his historical speech at the 75th UN General Assembly in late September. In the immediate context, the president of the Arab Republic was shedding light on a slightly optimistic aspect of the disastrous Covid-19 pandemic; yet, the spirit of the speech embodied much more than that. Referring to Egypt’s pivotal role in Libya, Palestine, Yemen, and other regional and international challenges, the speech has conveyed the land of the pharaohs’ immortal belief in cross-national solidarity, well beyond the newborn Coronavirus crisis.

Egypt’s entrenched position as an all-time rescuer and a concerned mediator in times of foreign crises has been a historical constant, especially in the African, Arab, and/or Middle East region. It has materialized through rigorous efforts to ensure international peace and security; endless attempts to unite regional fronts as well as a pioneering role in alleviating almost every humanitarian crisis hitting brotherly nations.

Over the past few months, such a role has been evident in response to three simultaneous major crises; Egypt’s instant and correct contributions in each case has been the result of rigorous preparedness, extended collaborations, and a strong sense of brotherhood and commitment shared by state agencies, civil society organizations, as well as individual citizens.

First responders In most crisis events, rapid intervention is key to saving lives and preventing more devastating long-term repercussions. In that light, Egyptian military aircrafts are always among the first responders to foreign humanitarian crises, especially in neighboring countries.

From the onset of the sweeping Sudanese floods that have destroyed over 100,000 houses and displaced thousands of people since August, our aircrafts have been flying continuously to Sudan and South Sudan. Three urgent assistance

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shipments were delivered to Khartoum airport between August 14 and 20, according to official statements by the Egyptian Armed Forces. Moreover, as the crisis intensified, a relief airlift was established on September 7, delivering since then continuous humanitarian aid to Khartoum and Juba.

At press time, at least 14 shipments had been delivered from Egypt to Sudan, containing tons of food, medication, baby milk, and rain-resistant tents, according to official statements. Moreover, five shipments of supplies for new bread production lines, as well as the technicians capable of installing and operating these lines, flew to Khartoum to further alleviate the long-term repercussions of the natural disaster.

Egypt’s support to Sudan has extended well beyond this one crisis, including the ‘100 Million Health’ presidential initiative which has so far cured 250,000 Sudanese nationals of virus C, according to the ministry of health, as well as intensive support aid since the civil war erupted.

A second major crisis where Egyptian aid has been strikingly evident and valuable is the Beirut explosion on August 4, which caused at least 200 deaths, and $15 billion in property damage Less than 48 hours after the massive explosion, an Egyptian aircraft loaded with 12 tons of medical and relief supplies arrived to the Lebanese capital.The next day, the Egyptian Ambassador in Lebanon Yasser Elwi noted in a press conference that this shipment was only the start of a continuous relief airlift established under the directives of President Sisi, who had ordered complete solidarity with Lebanon.

If ‘hope is born in the womb of suffering,’ we may find in the current crisis what drives us to breathe new life into our relentless efforts to reinforce international multilateral action.”

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Elwi further explained in the conference that the airlift would include medical supplies; tons of flour to make up for the losses in wheat silos; groups of medical teams; and glass and aluminum supplies to contribute to the reconstruction of the Lebanese capital.

According to official statements, a total of 16 Egyptian aircrafts landed in Beirut airport between August 6 and 26, carrying the first three components, in collaboration with civil society organizations, Al Azhar, and the Orthodox Church. On August 28, the first ship of reconstruction materials, carrying 125 tons of glass, arrived in Lebanon, offered by the Federation of Egyptian Industries, in coordination with the Egyptian Ministry of Trade and Industry.

Egypt’s relentless humanitarian efforts have also persisted throughout the Covid-19 crisis, and despite the nation’s own local battle. Although a

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total account of the aid sent from Egypt around the world is not available, the Egyptian Cabinet has recently announced a plan to deliver $4 million worth of aid to 30 African countries, with an estimate of 1.5 tons for each. Moreover, Egyptian military aircrafts have been carrying medical supplies to Iraq, Yemen, Iraq, Libya, Kenya, and once again Sudan and Lebanon, for months, affirming historical bonds with neighboring nations. Medical supply shipments have also extended all the way across the globe; to Italy, the U.S., China, and the UK, offering an example of solidarity and resilience to the world. For instance, Egypt sent 1 million medical masks to Italy at the beginning of the crisis, followed by two other military jets carrying medical equipment, protective suits, detergents and sanitizers. Minister of Health Hala Zayed arrived personally to Italy to deliver the shipment.

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National spirit of solidarity Although foreign humanitarian aid is always delivered through the Egyptian Armed Forces, it is the product of national efforts shared by all government entities, non-governmental institutions, as well as passionate individuals. “All of Egypt is in solidarity with all of Lebanon,” Elwi said, referring to the contributions of the government and civil society organizations to the airlift supplying humanitarian aid to Beirut.

Looking further into the individual entities that have played a major role in the aforementioned crises, the Ministry of Health and Population has had a remarkable contribution. In addition to a central role in preparing the medical supplies for Sudan, Lebanon and Coronavirus-affected areas, the ministry has also sent a number of medical missions, often headed by the minister herself.

One of the biggest missions was to Sudan and extended for over two weeks, including physicians from different disciplines, paramedics, and agricultural engineers from the Ministry’s preventive medicine sector, the official spokesperson to the ministry Khaled Megahed states. The Ministry has also been one of the early responders to the Lebanese crisis, providing medical supplies, operating machines, and surgical tools, Megahed notes.

The Ministry of Social Solidarity has also had a pivotal role in recent crises, both directly and through its function in centralizing the efforts of civil society organizations. Minister of Social Solidarity and Deputy CEO of the Egyptian Red

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Crescent Nevine El-Kabbaj announced in press statements early September that the ministry had sent over 197 tons of food and medical supplies to Sudan and South Sudan, and 160 tons of humanitarian aid to Lebanon.

Speaking to Business Today Egypt, Engineer Ahmed Ali Ismail, programs head at Misr El-Khair foundation, says that “the events of Lebanon and Sudan were fully taken care of and coordinated through the Ministry of Social Solidarity,” adding that, as a non-governmental foundation, they communicated with the representatives of other organizations and the ministry itself through

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During any global relief activities, there is a complete coordination with state agencies and partnering civil society organizations.”

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Whatsapp groups and emails, allowing them to cover a variety of the needed relief items. “During any global relief activities, there is a complete coordination with state agencies and partnering civil society organizations,” Ismail stresses.

Mostafa Refaat, supervisor of the Egyptian Red Crescent’s Emergency Operation Center, further explains that “all the [international] aid that comes out of Egypt from civil society or charity organizations is managed through the Egyptian Red Crescent,” which plays the role of the mediator, in coordination with the Ministry of Social Solidarity and the Egyptian Armed Forces. On almost every military aircraft to either Sudan or Lebanon, there was a shipment from the Egyptian Red Crescent or its partners, Refaat tells Business Today Egypt.

According to data provided by the Egyptian Red Crescent, the organization itself sent 100 tents, 1,000 blankets, 16 tons of flour, 7 tons of rice, and 1,047 tons of food supplies —including pasta and legumes—to Sudan during the recent floods crisis; in addition to 100 blankets and flour supplies to South Sudan. A delegation also arrived in Sudan on the second flight of the Armed forces to evaluate the situation. As for Lebanon, the Egyptian Red Crescent provided 306 mattresses, 100 liters of sanitizers, 1,000 medical gowns, 1,000 personal hygiene bags, 21 tons of flour and 5,000 tons of clothes to counter the double-fold crisis of the explosion and the pandemic. Refaat notes that the primary and urgent aid came from the organization’s resources; after which they gathered donations from partners

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and supporters.

Meanwhile, Ismail states that Misr El Kheir Foundation was able to provide almost 50 tons of food supplies to affected families in Lebanon; and 30 tons to Sudan. “This has already been handed to state agencies and delivered to the hot spots,” he says, affirming, “We can never [abandon] our brothers in brotherly countries.”

Although over three months have passed, the Egyptian Red Crescent continues to prepare aid for Sudan and Lebanon based on their separate needs. “The situation is not the same as at the beginning of the crisis. At the beginning, we were sending continuous aid; now the situation is almost stable so there is a better organization of the needs,” Refaat says, explaining that later responses include reconstruction and relief items based on evaluations of each situation.

Other civil society organizations that have also made remarkable contributions in the crises of interest are the Egyptian Food Bank, Mersal, Al Orman, Resala and Mostafa Mahmoud.

Balancing local crises and international relief efforts Although Egypt’s international relief efforts have been highly praised, some have criticized dedicating aid to foreign crises while the nation itself may be in need. In that light, it is important to highlight how both the government and civil society have maintained the balance between local and international needs.

On the government level, while relief and medical aid shipments are being sent across the

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world, as well as humanitarian support to wartorn Libya and Yemen, and much more, the Egyptian government is also currently gearing up to contain its very own local crises, including the flood season and the continuous Covid-19 battle.

Egypt had been on high alert following Sudan’s floods. Prime Minister Mostafa Madbouly stressed in official statements on essential preparations in light of rain excess in the Nile Basin countries, which coincides with the floods season.

He instructed authorities to prepare an emergency plan to secure all service facilities, in addition to a contingency plan for immediate evacuation in case of increase in water levels. Moreover, the Irrigation Department at the Egyptian Ministry of Water Resources has three sectors that are regaularly working on avoiding the consequences of heavy rains and the annual Nile flood which occurs in August, September and October. These sectors are tasked to clean water drains, as well as building dam-like structures between mountains to protect people from floods and secure water needs throughout the year, head of the department Abdel-Latif Khaled told local media. This year, the government also dedicated special efforts to remove illegal constructions along waterways to avoid similar disasters as in neighboring

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countries down the Nile.

And on the civil society level, The Egyptian Red Crescent has been preparing for the local floods for months. While we were visiting their headquarters late September, the emergency operation room was working intensively on finalizing their local and strategic stocks. “We are trying to work on different plans and predictions of rain, in collaboration with the Meteorological Authority and different websites that allow us to have an extended perspective. . . . We are stocking all our strategic warehouses and the local warehouses in each governorate so that they are ready,” Refaat says. He further stresses that human resources are very important. “The person who responds to a crisis is not any volunteer; he is a volunteer who has training and intense background in emergency response including first aid, safe entry and exit, how to build temporary accommodation camps, and the international standards of running a camp,” he explains.

The Egyptian Red Crescent —whose international relief efforts go back as far as the Tunisian famine in 1947—has for long managed to balance between local needs and its international role. According to Refaat, based on the strategic stock of the Egyptian Red Crescent, they make

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sure to provide any required urgent aid without exhausting their capacities. “For instance, when the Sudan crisis happened, we used our storage of tents, but at the same time we made sure that if anything happened in Egypt or abroad and we needed to intervene, we would have the same capacity to provide the needed aid, until we refill our strategic stock,” he says. As a member of the International Federation of Red Cross and Red Crescent Societies (IFRC), the Egyptian Red Crescent responds to any appeals from national branches that need to boost their capacities in response to humanitarian crises. “In the latest two crises, whether the Lebanon blast or the floods in Sudan, the Red Crescent in both countries was in strong need for all kinds of aid,” Refaat states.

In contrast, Misr El Kheir is still primarily a local organization whose year-long development activities target Egyptian citizens; however, it aspires to expand on an international level, explains Ismail. For the time being, the foundation

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extends its support to brotherly nations as much as possible in time of major crises. “On the global level, we usually contribute with food supplies, because they are ready all year-long to respond to any problems,” he clarifies.

Misr El Kheir has also been planning ahead for the floods, by updating its relief plan, training its employees, and coordinating everyone’s role, according to Ismail. “We have relief and emergency plans [for crisis situations]. . . . We have a constant stock of the products needed,” Ismail says, explaining that in case of floods, the foundation provides mats for homeless families, mobile bakeries, canned food supplies, mineral water, candles and dry batteries to substitute for electricity.

Government and civil society organizations have also been working to contain and face the repercussions of the global pandemic across the country. By the end of August, the Egyptian Red Crescent’s Covid-19 efforts on a national level included 3,117 sanitization campaigns, 3,103 awareness campaigns, 866 relief interventions in affected areas, and 5,466 psychological interventions via phone calls, according to data provided by the organization. Additionally, the “100 Days of the Fight Against Covid-19” report, which summarized Egypt’s efforts in infection prevention and control and its economic social security measures until June, documented remarkable government success in minimizing the intensity of the shock caused by the pandemic and its negative repercussions. The report also sheds light on a number of governmental initiatives, such as “Ahalina” (Our People), that support non-standard workers impacted by the negative repercussions of the virus on the economy, by providing them with social protection.

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“Hyde Park Developments” Showcases its Latest Projects in East and West Cairo in Cityscape 2020

H

yde Park developments announced its participation in Cityscape 2020, the region’s biggest and most anticipated real estate show across the industry, that returns after the lockdown to mark the comeback of the real estate markets and the sector’s most prominent developers.

“Hyde Park Development was eager to take part this year’s edition of Cityscape with its renowned real estate projects,” highlighted Amin Serag, CEO of Hyde Park Developments, stressing that Cityscape is a great opportunity for the developers to reconnect with their clients and the investors after the lockdown period.

In addition to “Hyde Park New Cairo”, Hyde Park Developments is showcasing its latest project in west Cairo “Tawny”, offering equal installments over 10 years and 10 percent down payment on both projects.

With a prime location in the heart of the residential bustling area of 6 October City, “Tawny” spans over 31 acres, with investments worth LE 2 billion.

The project is in close proximity with the vital roads network that includes 26 July Axis, Cairo-Alex Desert Road, Oasis Road. It is also situated across Gezira Sports Club and a walking distance from the shopping malls and schools including the Lycee, Al-Alsun, The American International School, The British International School and El Chouwifat.

The project comprises 216 villas ranging in size between 240 and 280 sqm, in addition to the townhouses, twin houses, and the brand-new Quad Villas developed with the supervision of international city planners. Tawny only has 20 percent of its land size dedicated to the residential purposes to preserve the natural element as an integral part of the living experience.

Hyde Park New Cairo’s pioneer project in East Cairo, that has 400 families residing, is witnessing a number of updates in terms of development and construction. The mosque was established inside the project on an area of more than 1,400 sqm and was implemented according to the latest architectural style. The project also witnessed the opening of the clubhouse designed

by Mona Hussein, to include a gym and a private swimming pool, in addition to world-class restaurants. With cutting-edge ICT infrastructure, the project offers Internet lines through the biggest telecom services providers Vodafone

and Etisalat. The project’s first phase investments in the ICT infrastructure amounts to a total of LE 30 million.

Hyde Park has also contracted a specialized company to manage the sports club in the Hyde Park New Cairo, established on an area of 200,000 sqm. The club’s design work is currently underway for the first phase, which accounts for 5 percent of the total area.

Serag announced that Hyde Park Developments is targeting the delivery of 900 units of its project in New Cairo before the end of the year. Finishing work is underway for 500 units, bringing the total units delivered so far to 3,800 units.

Hyde Park Developments announced finalizing the first phase of Hyde Out, the entertainment area within Hyde Park New Cairo that extends over 33,000 sqm. The project includes the world’s most sophisticated cuisines, and the biggest brands such as Greek Club, Santa Lucia, Smokery, Bellucci

by Maitai, East Wind, Fagnoon, and M by Chef Khaldy, which is led by the famous paris-based chef Khaldy.

Hyde Park is also offering “Peaksville” villas in the 5th settlement. The cluster is characterized by its beautiful and diverse landscapes, designed to meet the needs of customers. It also features smart spaces with stunning and modern views on the largest park in Egypt, while also offering flexible payment plans with only 10 percent down payment and 9 years installment plan.

Customers will also be offered unique payment plans for the Business District in Hyde Park New Cairo, offering 7 percent down payment on the administrative units and a payment plan of 7 years through equal installments, in addition to 7 percent payment upon delivery. Business District is developed with extensive investments reaching LE 6 billion on a total area of 117,000 sqm.

Units sizes range from 50 to 11,000 sqm, which encourages young business owners and entrepreneurs to expand their businesses with flexible and smart spaces. The company also offers its clients with the option to own an entire floor (1,300 sqm) or the entire building, equipped with an underground car parking that can accommodate 4,000 cars, and a restaurant area to meet all the needs of the business community. All units will be delivered starting 2022.

In-depth

French

Products

Boycott

Unpacking the Controversy What is the economic impact of the boycott campaign?

By Hanan Mohamed

A

t a time when national economies worldwide are anticipating a global recession because of the Covid-19 pandemic, France is facing additional pressure amid calls to boycott its products in Arab and Muslim countries.

The boycott calls came in response to statements

by French President Emmanuel Macron on October 21, which were considered offensive to Islam and to the Prophet Mohamed. At a tribute to a 47-year-old French teacher who was murdered by an 18-year-old Russian-born refugee of Chechen descent in October for showing one of the ‘Charlie Hebdo cartoons’ about Prophet Muhammad to his pupils, the French president affirmed that France would not “renounce the caricatures”. Moreover, following the official memorial, the cartoons were

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projected onto town halls in France, reigniting a wave of anger among Muslims against the ‘offensive’ cartoons, which were first published in 2015.

In response, the hashtags #except_the_messenger_of_Allah and #Boycott_French_Products started trending on social media by the end of October, calling to boycott French commodities and brands, including food products such as ‘President’ and ‘La Vache Qui Rit’ cheese, ‘Danone’, ‘Activia’ and ‘Evian’; French cars such as ‘Peugeot’ and ‘Citroen’; ‘Tefal’ and ‘Moulinex’, as well as famous fashion brands L’Oréal, Garnier, Chloe, Chanel, Nina Ricci, Cartier, Lancôme, LACOSTE, Louis Vuitton, and Givenchy. Carrefour supermarket has also been subject to an intense social media campaign, being a popular French brand that is managed by a UAE company. In response, the retail company issued a press release clarifying that it is fully owned by UAE-based Majid Al-Futtaim in

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16 countries across the Middle East.

The campaign was not limited to the virtual world. Videos from Qatari and Kuwaiti stores taking French products off their shelves have also gone viral. Similarly, in Egypt, one supermarket chain, and a number of shopping malls have disposed of all French products.

What is going on today is quite similar to another campaign against Danish products back in 2005, when the Danish daily Jyllands-Posten published offensive cartoons of the Prophet. It has been reported that the boycott was one of the most effective pressure tools exercised by Muslims against Denmark, causing the latter to lose half of its exports to the Middle East and nearly 20 percent of its global exports.

The scope and impact of the recent French boycott campaign is, however, still not clear, at a time when France is already burdened by the repercussions of the Coronavirus health crisis.

Unpacking the economic impact Businesses that are expected to be affected by the boycott include large stores and grain export companies, as well as the energy, defense, fashion and luxury goods sectors.

France is a major exporter of grains in the world; and some of its largest markets are located in Muslim-majority countries. According to data from the Ministry of Agriculture in Paris, Algeria is the tenth largest export market for French agricultural products, amounting to about €1.4 billion in

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2019. Meanwhile, Morocco ranks 17, with exports amounting to €700 million the same year.

In a press statement addressing the boycott calls, economic expert Mahmoud Ibrahim, explained that the French food industry has been the most affected so far, adding that the campaign has also extended to affect touristic trips headed to France. Referring to a report by the French news site RFI, which revealed the decision of 430 international travel agencies to suspend the purchase of airline tickets to France, Ibrahim explained that the tourism sector is one of the most important sectors in the French economy, as it represents about 8 percent of the GDP, generates €56.2 billion in revenues and provides 2 million direct and indirect jobs.

In contrast, Ibrahim stated that the fashion and beauty sectors are the least affected so far, noting that the markets of the Middle East and the Islamic world represent only 3 percent of French fashion and beauty products exports. He further added that that major companies represent the power centers in capital countries such as France, which in turn will put pressure on the French government. He pointed out that the boycott news has acquired the lion’s share of press and media coverage by French institutions, as it poses a serious threat to the French economy, which is already bleeding due to the repercussions of the Coronavirus outbreak.

Indeed, amid the campaign, the French Foreign Ministry called on the countries of the Is-

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lamic world not to boycott their products, stressing that Muslims are part of the national fabric in France. Moreover, French President Macron announced that he understood the anger of Muslims because of the publication of the cartoons, noting however that this does not justify violence.

“I understand the feelings that this arouses, I respect them. But I want you to understand the role that I have. My role is to calm things down, as I am doing here, but at the same time it is to protect the rights [of freedom of expression],” Macron stated. “I will always defend in my country

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the freedom to speak, to write, to think, to draw…

That doesn’t mean that I personally support everything we say, think, draw, but ... I consider that it is our vocation to protect [these freedoms and human rights] and also to protect the sovereignty of the French people.”

Despite the sheer spread of the campaign and the attention it has received, some people have rejected it, arguing that boycotting French products that are manufactured within local borders might harm the national economies more than the French one.

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How can the boycott affect the Egyptian economy?

One of the countries where calls to boycott French products have been circulated is Egypt, whose economic and trade relations with France encompass agricultural food products, banking, finance, telecommunications, automotive manufacturing, medicine, construction, environment, new renewable energy, and tourism.

Current French investments in Egypt stand at €5 billion, and trade exchange has reached €3 billion, according to Managing Director of the French Chamber of Commerce and Industry in Egypt Hassan Behnam. Moreover, he cites that there is a total of 165 French companies in Egypt, employing 38,000 people.

Opinions regarding the impact of the boycott on the Egyptian economy have differed.

Senior Economist at the League of Arab States Mahmoud Fath-Allah does not believe that the boycott of French goods will lead to tangible harm to either side. “The French goods imported by Egypt are not strategic commodities and most of them are medicines, cars, cereals with plenty of alternatives available in the local market,” he tells Business Today Egypt, adding that trade relations between Egypt and France represent only 2 to 2.5 percent of Egypt’s imports or exports and about half percent of France’s global trade.

Fath-Allah further notes that the real problem of the boycott lies in the difficulty of differentiating between what is French originated and what is not, in the era of globalization and the distribution of supply chain and production dispatching around the world. “We may find many goods with French brands, but they are in fact manufactured in Egypt; and therefore, they are Egyptian goods … and many of the boycott promoters may not know that most of these products are under the franchise system where the French company as the trademark owner (Franchisor) charges the Egyptian investor

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(Franchisee) loyalty fees for the rights to exploit the trademark, plus a percentage of the value of total sales,” he explains, noting that the negative impact of the boycott would fall mostly on the owner of the local investment and not the brand owner.

Moreover, Fath-Allah points out that the boycott will impact Egyptian workers in French enterprises in Egypt.

Moreover, economic expert Khaled El-Shafei said in a press statement, “When dealing with economic issues, we do not prefer the idea and method of boycotting, especially in light of the existence of international trade agreements that must be respected, but the best thing is to strengthen the local product and the national industry; and this is what is currently happening through a plan announced by the state and a special interest from the President to support the local industry.”

In contrast, former head of the Importers Division at the Cairo Chamber of Commerce Ahmed Shiha told a local media outlet that the losses that traders or importers are exposed to as a result of boycotting France and its products are of no value in the face of abuse of the faith. “We support this campaign to respond to the French excess.” He further stressed that there are alternatives that are finer, more economical, and better than French products.

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Omar El Hamamsy:

We are Keen on Diversifying the Egyptian Economy CEO of Orascom Development Egypt sits down with Business Today Egypt to discuss the challenges of organizing El Gouna Film Festival this year, and the company’s 2020 accomplishments and future plans.

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In-depth

By Angy Essam

A

worldwide leading developer of fully integrated destinations for 30 years, Orascom Development Holding (ODH) offers a wide portfolio of projects in Egypt, the United Arab Emirates (UAE), Oman, Morocco, Montenegro, Switzerland and the United Kingdom.

Thirty years ago, ODH Chairman Samih Sawiris set his eyes on a beautiful spot on the west coast of the Red Sea. And in no time, the now famous El Gouna blossomed into a splendid holiday destination, a cultural hub and the home of the annual El Gouna International Film Festival (GFF), with ODH as its parent company.

On the sidelines of the fourth edition of GFF, we sat down with Omar El Hamamsy, CEO of Orascom Development Egypt, who spoke about the festival, as well as the company’s 2020 accomplishments and future plans in El Gouna and beyond.

Tell us about the agreement signed between Orascom Development Egypt and the UNHCR on the sidelines of the fourth edition of El Gouna Film Festival.

It is a framework agreement for the next five years, where we will provide the UNHCR with a platform to effectively highlight and talk about all the issues concerning refugees. So for exam-

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ple, they will have access to a lot of the events at the opening and the closing ceremonies of El Gouna Film Festival; they will also have access to CineGouna, which is a platform that hosts a lot of discussions and different types of panels.

El Gouna Film Festival is not merely an artistic event; it has various other goals and values. What can you tell us about the economic and touristic sides of the international festival?

El Gouna Film Festival has a number of dimensions. Dimension number one is to highlight and showcase what I think is incredibly beautiful; the incredibly integrated life that Orascom Development has managed to create in El Gouna. And that is an amazing way for us to showcase what this life looks like, what this place looks like, and what the magic of the place is all about. [This] places Egypt on the map, it puts the Red Sea on the map in a different way. I think it places it on a different quality level and a different experience level and that is helpful for Egyptian tourism as a whole. I think it is a very positive message for the Egyptian economy to be represented by the likes of El Gouna as a place.

I think the second dimension obviously also highlights the quality of life that Egyptian or foreign nationals can have while living at El Gouna on a full time basis, especially during the time of Covid-19 when people actually came to realize that we do not have to stay in large cities like

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In-depth Cairo, Alexandria or Assiut, but really go live in El Gouna and work from El Gouna. I think this is one of the areas that we are very keen on, excited about and want to highlight; that you can come and live your entire life in a place like El Gouna.

That is important for the economy of El Gouna but it is also frankly an important source of diversification for the Egyptian economy because the more we try to move our centers of economic production from the large cities, the better we can serve the Egyptian population at large.

I want to talk about the new hierarchy of El Gouna Film Festival; Orascom had a more hands on experience at the festival this year, compared to previous editions. Tell us more about that.

Orascom Development has always been the host of the festival in El Gouna. Orascom Development was also one of the co-founders of the festival from the very beginning four years ago.

This year, we decided to actually up the notch and to go ahead and also organize and manage the actual festival.

We did this for two reasons. The first reason is

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that we want to ensure that in the long term, El Gouna Film Festival is going to be sustainable, successful and always going to be there, and that is very important to us because it is a pillar of what makes our Gouna very especial, which is a cultural dimension.

The second reason is that every few years it is fantastic to inject a little bit of new talent, a little bit of a fresh perspective on any business that you are running; and we thought it was a good time after three rounds to inject a bit of extra talent.

And frankly, another last reason is that with Covid-19 situation going on, we thought it was also important to perhaps get a bit more hands on, given the complexities we are dealing with this year; and having all this under El Gouna umbrella makes us more nimble and able to react much more quickly to take the needed precautionary measures.

This edition of GFF probably deserves the tile of ‘the challenge’ edition. How did you manage to overcome all the challenges topped by the Co-

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vid-19 pandemic?

There has been a lot of planning, a lot of on the fly course correction and also a lot of learning that we picked up from two sources and we applied very systematically.

We learned from previous teams [who had worked on the festival] over the last three years; we are still very much working with the same teams of people, to make sure we do not lose any skills that they picked up during the three rounds of the festival. [Moreover], we went to Venice Film Festival and San Sebastián Film Festival, where we picked up a lot, such as how much virtual presence they have used in their festivals. And we tried to apply the same thing here in El Gouna Film Festival, including the measures they took to ensure social distancing …. and I think all of this helped us a lot.

How would you evaluate the fourth edition of El Gouna Film Festival?

My family and all the people I always work with know that I definitely do things that meet, if not exceed my expectations in certain areas. But to be very honest, in normal times, it is an incredibly complex machine to put together. And in the time of Covid-19, it is exponentially complicated to make it work.

Therefore, it is very hard to say that everything was flawless, of course like any organization you can do better in certain cases. But having said

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that, honestly, both as an outsider experiencing El Gouna Film Festival as well as an insider …, I can say that the team did a phenomenal job. I feel very comfortable and proud …

What has ODH been most proud of in 2020?

I think we should be optimistic and proud of few things. First, we should be proud of the fact that we have maintained the health and wellbeing, both mentally and physically, of all our employees in Orascom Development Holding.

This is an important thing for us. This year was a difficult one on many dimensions, including the catastrophe Orascom Development Holding faced after the death of its CEO from one side, and the Covid-19 situation from the other side.

I think we can also be proud of the fact that as an organization we have showcased our business’s resilience; and that is something that the company has been working on for a number of years. What I mean by this is that we are always talking about the fact that we are a well diversified business, we are in seven countries; some of them are developed countries like the UK and Switzerland, others are developing countries like Egypt and Morocco. We are also involved in a number of different businesses; we have the hotels business, the real-estate business… I think that combination of geographic diversity and business lines has proven to be a resilient model that we can all be very proud of and continue to

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In-depth tic scenario with the smoother improvement on the Coronavirus issue. In this case, we will start to accelerate our growth in the various destinations we have, both on the real-estate side and the tourism side or the hotels sector.

Second, we will focus on making sure that we have the best practice sharing and a lot of operations improvements, on the sales and marketing dimension, on the operations side and on the financial management side. We, as an organization, will make sure that we develop systematically because our organization is very entrepreneurial. Hopefully, in the next three years we will continue to maintain our entrepreneurial spirit…

These are things that take few years to pay back but I do think they are important because … [they] will ultimately be very positive for the company and the shareholders.

What are your expectations for the tourism sector in Egypt in 2021?

If you look at the historical evolution of tourism in Egypt after a crisis, the interesting thing is that domestic and foreign tourism tend to rebound typically a little bit faster than in other places. So, I am reasonably optimistic that we can manage, solve or contain either the Covid-19 situation or at least the travel conditions around Covid-19. I think we will have a reasonably fast rebound, once all this will be under control.

The only question now is the trigger; is it going to be a vaccine or is it going to be some other trigger that will enable us to get on that positive trajectory? build on and accelerate. It is the proof that the concept we came up with 30 years ago is actually resilient and reliable now.

What I am optimistic about going forward is the fact that we have maintained the coherence of the team; we have created a virtual system to work from home and we will continue with closer integration of different destinations, closer integration of managing teams in different destinations; and [we will] make sure we have a lot of collaborations globally.

What are Orascom’s plans in 2021? What will be your main focus in the upcoming year?

[The year] 2021 will either be a heavy Coronavirus year or will witness a smoother improvement on the Covid-19 side. If it is a heavy Coronavirus year, we have to carefully manage our bottom line, our cash; and we will focus on our growth in a reasonably moderate manner.

I am more excited to talk about the optimis-

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Let’s finally talk about ‘O West’. Will it be the Cairo version of El Gouna?

When we looked at our portfolio of destinations, we realized that we actually have our crown jewel which is El Gouna … Then we considered taking this magical formula and applying it all over the world. We first took it to Oman then to Switzerland, Montenegro, UAE and so on; then we said why not do it in Cairo ?

Life in Cairo could be reasonably stressful, so why not build this integrated city that has education, health, entertainment, sports and some sort of s magical culture as well? That is actually our vision for O West, what we are executing in O West and what we have done so far.

We are now pushing construction in ‘O West’ at a decent pace. Also, we have signed five education contracts with five schools, with different educational systems such as American, German and British. We are now building a very important club in O West which is likely to be the largest club anywhere west of Cairo.

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After the huge success of the innovative iVilla,

“Mountain View” Launches “The Millennial” Offering Innovative Units that Correspond to our Newly Acquired Living Norms

“

Mountain View” has managed to carve a special place among the leading real estate developers as providers of distinguished projects based on contemporary innovative solutions. Through this untraditional approach to real estate development, Mountain View managed to offer its owners and fuature customers a wide array of products that feature timeless designs and an ever-renewing lifestyle.

Contributing to a paradigm shift in the real estate market by launching the original iVilla concept in 2010, Mountain View has brought a smart and unique product like no other, reflecting the developer’s solid capabilities to continuously innovate new concepts and contribute to the progress of the market.

Now, Mountain View launched “The Millennial” that offers diverse units ranging in size from 120 sqm to 165 sqm, to smartly offer spacious areas, accommodating more activities and purposes.

This follows the radical changes the market has recently witnessed in concepts of living and designs that correspond to this change, especially after the lockdown period that evolved our lifestyle and daily habits that have grown more into home-based ones. Cooking, family gatherings, home workouts, are growing into our new norms, adapting to the new situation the lockdown has imposed on us. Swiftly adapting to the changing needs and preferences of the clients, Mountain View is investing more tools and concepts to cater for spaces that mix between staying at home as part of our new norm and the need to stay connected with the outside world.

Comfort and privacy are the two main features of the units of The Millennial, as they were designed to give their residents more practical spaces for their optimal use. The Millennial units

include Mountain View’s latest concept for the innovative open space Smart Deck / terrace with the size that reaches up to 20 sqm to accommodate outdoor activities such as gatherings of friends, family, sports and work. The units also consist of three bedrooms, at prices starting from LE 1.8M. Being part of MV Park projects in New Cairo and 6 October City, The Millennial units enjoy and have access to the central park, the corniche area, the walking track and the healthy food area/court of the project. The project also encourages a healthy lifestyle reflected in the areas dedicated for outdoor sports such as the trending Yoga. Addressing the millennials as well as a practical segment, the park incorporates creative co-working and brainstorming areas that are connected to the internet always, supporting the new modes of distant working via Zoom and other virtual meeting applications, in addition to accommodating networking spaces. Additionally, the project features lakes that penetrates the buildings, contributing to the aesthetic side of the project.

Security and technology go hand in hand in this project in a unique living experience in the futuristic home, inspiring a feel of travelling across time to the future. By adopting the concept of the keyless gates, the unit owner opens the door by entering a security code. The units also feature an accurate face identification feature that smartly identifies the faces of the owners and interacts with them for a more secure and private experience.

Following the highest standards adopted in global cities’ models the project also environmentally friendly features and designs even in waste disposal.

Mountain View started the pre-ordering phase with expectations of timely run out of the units.

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Egypt’s Message to the World Branded the “Festival of Challenge” by its founder Naguib Sawiris, the fourth edition of El Gouna Film Festival has showcased to the world Egypt’s readiness to safely host international events and welcome visitors from all over the globe.

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In-depth

El Gouna Star for the Best Arab Short Film (Trophy, certificate, and $5,000) went to I Am Afraid to Forget Your Face

by Sameh Alaa.

By Angy Esam Photography by Kareem Abd El-Aziz

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he fourth edition of El Gouna Film Festival (GFF), which took place between October 23 and 31, was in full swing, with Egypt’s stars flocking to the Red Sea resort town to celebrate another successful edition pulled off by GFF founders Naguib and Samih Sawiris; Intishal Al Timimi, Festival Director; Bushra Rozza, Co-founder and COO of GFF; and Artistic Director Amir Ramses.

“My personal point of view was that this is not a time for joy, and it will be difficult to invite international stars to come to Egypt. Yet we didn’t want to stop the wheel, and wanted to challenge the pandemic,” said Naguib Sawiris at a press conference. “Egypt needs to open its doors for tourists from all around the world; the greatest source of income for this country. So we decided to take the necessary precautions and organize the festival this year. I think we can call GFF the festival of challenge because the whole world is afraid. Disease spreads depression, but people yearn for joy.”

The concept of this edition’s poster is inspired by the design of the Gouna Conference and Culture Center (GCCC), which incorporates an elegant series of barrel vaults enclosing the auditorium with a shaded perimeter where the inside and outside merge, creating an atmosphere of transcendent inspiration.

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In-depth The Khaled Bichara Award for Independent Filmmakers in Egypt went to Hamlet from The Slums by Ahmed Fawzi-Saleh.

“The existing challenges forced us to rethink all aspects of the festival. For instance, the pandemic has pushed us to reduce the use of paper and focus more on technology in general, which would have happened eventually. So the challenges actually accelerated the improvement of the festival,”

General Coordinator Amal El Masry

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Samih Sawiris was just as determined to go ahead with the event. “The difficulty was in creating a balance between organizing the festival and maintaining the precautionary measures. I was a firm believer that as long as the Venice and San Sebastian film festivals didn’t cancel their editions this year, we could do the same thing,” he said.

The festival is “Egypt’s message to the whole world,” celebrated actress and GFF advisory board member Youssra stated, stressing that the international festival managed to go ahead despite the global pandemic which has put much of Europe into a second lockdown.

While Egyptian celebrities arrived on the red carpet in person, “representatives for international film festivals from all continents were invited to attend virtual panel discussions, to emphasize the importance of supporting the cinema industry and film festivals,” said El-Tamimy.

“GFF is one of the few film festivals held this year.

And just as the Venice Film Festival was an international initiative, El Gouna Film Festival is the

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The festival’s top priority was the health and safety of guests, employees and workers attending at the open-space Gouna Conference and Culture Center. In addition to masks and social distancing, 90-minute intervals between each event and screening were taken to sterilize and disinfect the area.

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first Arab initiative supporting the idea that life must go on.”

French actor Gérard Depardieu managed to fly out to Gouna to receive a Career Achievement Award, as did French-Moroccan actor Saïd Taghmaoui, who received the Omar Sharif Award. From Egypt, actor Khaled El Sawy and production designer Onsi Abou Seif were the recipients of the Career Achievement Award, for their distinctive and influential participation in the film industry.

The film program this year was very rich, with 16 films participating in the Feature Narrative Competition, 10 films in the Feature Documentary Competition, 18 films in the Short Film Competition, 17 films in the Official Selection out of Competition section, as well as two films in GFF’s Special Presentations program. “This year, we were able to choose the best films that were screened at international film festivals, such as the Berlin Film Festival, Cannes Film Festival, Venice Film Festival, and the San Sebastian Film Festival. Our lineup included The Furnace, starring Egyptian actor Ahmed Malek; Lion of The Future Award winner Listen; Hilal Baydarov’s In Between Dying; and Viggo Mortensen’s Falling,” noted Ramses.

This year’s CineGouna Platform panel discussions were also well attended, particularly the Women’s Empowerment in the Film Industry discussion which brought together leading female filmmakers and actresses such as Palestinian filmmaker Najwa Najjar and Indian star

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GFF aims to showcase a wide variety of films for a passionate and knowledgeable audience, while fostering better communication between cultures through the art of filmmaking. Its goal is to connect filmmakers from the region with their international counterparts in the spirit of cooperation and cultural exchange.

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Commenting on GA-TikTok agreement signed on the sideliness of GFF, Chairman and CEO of Gemini Africa Adly Thoma said, “The signing of this partnership, especially here at GFF, signals a futuristic leap towards achieving one of our main aspirations, supporting innovative entrepreneurs and disrupting the film industry by introducing technological advancements.”

Richa Chadda. Renowned acting coach Gerald James also held an acting workshop as part of the CineGouna Bridge forum for effective professional development activities. Activities included a series of roundtable discussions, workshops, presentations, and master classes with key industry professionals and experts.

Other panel discussions included “Digital Media in the Wake of a Global Pandemic,” while two virtual panel discussions tackled “The Role of Film Festivals in the Time of Covid-19” and “Filmmaker’s Journey from Film Lab to VOD Platform, Presented by IEFTA.” This was in addition to the “Netflix’s Master Class by Christopher Mack” virtual event.

On the sidelines of the GFF, Executive Chairman and CEO of Gemini Africa (GA), part of

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In-depth El Gouna Silver Star for Documentary Film (Trophy, certificate, and $15,000) went to Softie

by Sam Soko.

“I bring to Egypt that I love all the love and respect from Lebanon,”

Hilda Khalife

“Covid-19 made us delay this edition for one month only, but [it couldn’t make us] cancel it,”

Intishal El-Tamimi

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Orascom group, Adly Thoma and Cherine Magora, head of Strategic Partnerships at TikTok Middle East and Africa, signed an agreement to merge technological advancement with creative entrepreneurship and add a new dimension to the filmmaking industry. Upon this agreement, Gemini Africa will become the entrepreneurial arm for TikTok, while TikTok will provide Gemini community with great exposure and the highest engagements.

CineGouna SpringBoard received 99 submissions this year (65 projects in development and 34 films in post-production) from all parts of the Arab world. A panel of experts reviewed the submissions and selected 18 projects (12 in development and six in post-production) to participate in this year’s edition. They were carefully chosen on the basis of their content, artistic vision, and overall financial feasibility. The selection committee was very impressed by the high quality of the submitted projects.

An exhibition of the works of accomplished production designer Onsi Abou Seif was on

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display, and included some of his designs and sketches, video clips from his films, movie posters, and the awards he received over the course of his career.

This year, the festival continued to build on its previous collaborations with the 10th Malmo Arab Film Festival and the Final Cut in Venice workshop with cash prizes and support for exposure. GFF also signed a landmark agreement with the reputable global platform UNCHR Egypt, laying the foundations for a longstanding

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collaboration between civil organizations, cinema and development actors for the betterment of marginalized refugees.

GFF’s fourth edition is sponsored by Orascom Development and El Gouna in association with O West and Minly. Exclusive partners included Principal Media Partner ON Network, telecom partner Orange, media partner Euro News, in partnership with Fanadir Marina and TikTok, and official transport partner Sixt - Abou Ghaly Motors.

“This year, we were able to choose the best films screened at international film festivals such as the Berlin, Cannes, Venice Film and San Sebastian Film Festivals. Our lineup included The Furnace, starring Egyptian actor Ahmed Malek; Lion of The Future Award winner Listen; Hilal Baydarov’s In Between Dying; and Viggo Mortensen’s Falling.”

Amir Ramsis.

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In-depth

Charlie Chaplin’s feature-length masterpiece The Kid, newly restored by the Charlie Chaplin Foundation, was screened, accompanied by an orchestra led by Maestro Ahmed El Saidi.

GFF’s partners include official beverage Pepsi, official carrier EgyptAir, supported by AlexBank, Makadi Heights and Nestle Mega Ice-cream.

Activation partners include beauty sponsors Mohamed Al Sagheer and Lancôme, in collaboration with Nespresso and Fine.

The festival is organized under the auspices of the Ministry of Tourism & Antiquities, the Ministry of Health & Population, the Ministry of Culture and the Egyptian Film Center.

“The festival has become an important station for all Arab filmmakers.

GFF has become a pioneer in the film industry.

We still have the support of our sponsors despite all challenges,”

Co-founder and Executive Advisor Amr Mansi

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BT Scene AAIB, SODIC Sign LE 2.57B Medium-Term Facility Package to Finance Villette Project The Arab African International Bank (AAIB) has signed a mediumterm facility package worth LE 2.57 billion, with SOREAL, an affiliate of SODIC, which represents an increase of around LE 1.1 billion added to a previous facility of LE 1.4 billion, with the aim of financing further developments within Villette, a real estate project located in New Cairo.

AAIB has undertaken the role of Senior Initial Mandated Lead Arranger “SIMLA”, Facility Underwriter, Facility Agent, Account bank, and Security Agent in this transaction.

The facility package is geared towards financing the development of SODIC’s signature project “Villette”, including the construction and finishing of Villette’s sports club. Moreover, the facility has tenor of up to seven years.

Sherif Elwy, managing director and vice chairman of the Arab African International Bank stated that AAIB is a forerunner in financing top notch real-estate developers in the Egyptian market and has notable experience in providing integrated solutions that facilitate the necessary liquidity to accelerate the implementation of mega projects, magnify investments, and complement the needs of investors and real-estate developers to reach their full potential. “SODIC is considered one of the leading companies in this sector and we are looking forward to more cooperation together,” he noted.

Moreover, Magued Sherif, SODIC’s managing director, said, “Our strategic long-term relationship with AAIB was a key contributor to the conclusion of a project finance facility of this size. In an exceptionally challenging year, the facility comes as a true testament to SODIC’s credibility as a developer, as well as its consistently strong

financial position and the confidence of Egypt’s leading banks in SODIC’s ability to deliver on its commitments.”

The signing event, held on Sunday September 20, was attended by representatives of the two parties in the presence of Elwy, Sherif, as well as Matouk Bassiouny & Henawy and White & Case, as the legal advisors of the two entities.

Nile Ritz-Carlton, Cairo Celebrates 5th Anniversary: ‘Five Years Together, Forever to Go’ Over the past five years, The Nile Ritz-Carlton, Cairo has delivered the legendary Ritz-Carlton experience to guests in Egypt and continued to redefine the standard of luxury.

Known for its refined quality and impeccable service, The Nile Ritz-Carlton has created wonderful memories through distinctive and personalized service. The luxury hotel is a preferred destination for tailored wedding experiences, exceptional conferences as well as curated events delivered by the Ladies and Gentlemen of The Ritz-Carlton.

Though just five years old, the hotel has a legacy that dates back to the late 50s, when it was a prime location for the world’s elite. The hotel’s restaurants and bars are amongst the best in the city, including the Italian Vivo restaurant. Fusing high-end gastronomic technique, with creative application and local produce, Vivo has emerged as one of the most popular restaurants of its kind in Cairo.

The Nile Ritz-Carlton, Cairo has achieved a number of accomplishments that add to its roster of unparalleled experiences for guests, representing the true essence of Egyptian culture and hospitality. It has consistently created unforgettable experiences for guests to fulfill their expectations and crowned its presence by a number of international awards such as the Travel + Leisure Award for being one of the top

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hotels in the Middle East and the Certificate of Excellence on Trip Advisor 2020.

In celebration of its fifth anniversary, the hotel offered guests an exclusive five days staycation package including breakfast, at the same value as a three-night stay. The guest received 15 percent savings on all food and beverage and 35 percent savings on all spa treatments, plus complimentary parking.

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Ramses Hilton and Hilton Luxor Resort & Spa Celebrate Global Week of Engagement As part of the Global Week of Engagement Activities, Ramses Hilton jointly with Hilton Luxor Resort & Spa organized a special cocktail reception to host the exclusive Ready to Rise hybrid with a live broadcast, and to introduce Hilton Clean Stay and Event Ready Global programs.

The event took place at Ramses Hilton swimming pool, where both hotels’ top accounts and clients were invited and enjoyed creative food and drinks, while enjoying the breathtaking view of the Nile River and watching the GWOE hybrid event.

Samsung Egypt Announces Half-Year Brand Shops Channel Performance for 2020, with 8% Increase in Growth Rates Samsung has announced that the company’s brand shops channel performance during H1 of 2020 was relatively sturdy, and underwent a notable evolution on the growth rate level, due to efficient, optimized expansion plans, miscellaneous installment banking and non-banking partnerships that provided 0 percent interest rates, aggressive promotions, in addition to the different initiatives that were customized during the pandemic. For the half-year growth rate, Samsung’s brand shops channel has been able to achieve up to 8 percent growth in 2020, compared to the same period last year.

In addition to offering its products to the local market, Samsung Egypt covers 90 percent of Egypt’s governorates, with the biggest capacity in Cairo reaching 35 percent coverage and Upper Egypt with 28 percent coverage.

In 2020, Samsung has also achieved a new record of its expansion plan, as it now has 62 brand shops, all featuring a rich portfolio of Samsung’s products, and showcasing how the connected device ecosystem works. Moreover, the company opened two new shops this year in Cairo, and is set to open four more in Cairo, Alexandria and Upper Egypt, before the end of 2020.

“Samsung delivered a steady and positive performance in the first half of 2020, by adopting strategies to navigate market conditions and challenges.

The Egyptian market is one of the main markets for us that enjoys unmatched capabilities to cope with all what is new in the world of technology.

With the increasing needs of this market, we try harder to deliver the latest technologies, tailored with care to reflect the diverse needs of different segments of customers,” stated Ahmad Gaafar, head of Corporate Marketing & Retail for Samsung Electronics Egypt.

“Samsung is always keen on supporting and helping their customers nationwide to save time, effort and money, while maintaining a positive customer experience especially during tough times. At times of crisis, we must explore the different ways technology can help sustain operations; in terms of delivering goods and services in a most hygienic way, and gearing up for a drastically changed future,” he added.

Within the framework of providing a safe and positive experience for its customers especially during the outbreak of the Coronavirus, Samsung has dedicated significant efforts to launch a number of initiatives to cope with the emerging market challenges, including tele-sales business unit, sales channels over social media platforms and product-delivery free service, official online market places, and WhatsApp chatbot support.

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Marriott Mena House, Cairo Giving Back to The Community!

As we move into the new school year, Marriott International hotels in Egypt have come together once again to support the community as part of the Marriott Junior Business Council activities to distribute 500+ stationary kits to underprivileged children who represent the future of tomorrow all around Egypt.

As part of the Marriott’s Serve 360: Doing Good in Every Direction Initiative, Marriott Mena House along with Marriott Egypt Junior Business Council organized a visit to Al Orman orphanage in October City where hotel members distributed 50 bags with school stationary bags to children aged from pre-school to high school.

Marriott Mena House, Cairo stationary donation to orphanage children is one of the several activities, dedicated towards giving a hand to the local community in Egypt.

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Ecomondo & Key Energy 2020: Live, Virtual and Accessible Ecomondo and Key Energy 2020, the Italian Exhibition Group expos dedicated to circular economy and renewable energy sources, were held at Rimini expo centre between November 3 and 6.

Italian Exhibition Group President Lorenzo Cagnoni stated, “We reacted with the utmost energy, as we know how; and here we are thanks to the trust of the exhibitors and the companies who wanted to confirm their participation.”

Moreover, IEG CEO Corrado Peraboni said, “We have introduced a large amount of innovation to organize these expos. We have worked on different safety protocols, from the setting up of the stands to the catering, to ensure the experience is safe even before entering the expo,” adding that IEG has borne all the costs of the organization efforts for the safety protocols, to ensure that the exhibitors only have to think about business and knowledge meetings.

Alessandra Astolfi, IEG’s Group Brand Manager, Green and Technology Division noted, “We analysed the requirements of exhibitors, trade and business associations and the scientific community, established three entrances, 26 rooms for Ecomondo and 10 for Key Energy and fitted out a television set for the transmission of events in streaming.”

For more info, visit https://en.ecomondo.com

Jumia Launches ‘Black Friday’ Sale for an Unprecedented Shopping Experience Jumia, the leading e-commerce platform in Egypt, has announced the launch of Black Friday season from 6 to 30 November, in pursuance of its efforts to alleviate the economic burden on Egyptians and encourage online shopping in cooperation with partner companies, with discounts up to 80 percent.

Jumia confirmed during a press conference that the discounts campaign would extend for three weeks and four Fridays, including 12 Flash Sale offers, starting every day from 12 a.m. till the next day at 10 p.m., in addition to Cashback offers upon using JumiaPay App to pay online.

Discounts include all categories, from fashion, to beauty products, electronic devices, grocery, consumer goods, household products, sports supplies, computers, etc. Moreover, Jumia is keen on innovating new services for all customers through major companies, such as Braun, Defacto, Maybelline, Procter & Gamble, Sensodyne, Huawei, Andora, Xiaomi, Samsung and DalyDress.

Jumia’s Black Friday discounts include thousands of products for many local and international brands focusing mainly on five categories; health and beauty products with discounts up to 70 percent; 40 percent on phones; 40 percent on appliances; 30 percent on TVs; and 80 percent on fashion, in addition to great offers on McDonald’s orders when customers use “Jumia Food” App. Jumia agreed with its business partners on daily additional offers on all products, including Samsung products and extra offers on Procter & Gamble including Ariel and Pampers.

In cooperation with its logistics partners, Jumia also provides special services to deliver products as fast as possible, while taking all the precautionary and social distancing measures necessary.

Jumia further allows same day delivery for some products in Cairo and Giza to facilitate the delivery process. And it offers products for only LE 1 every week on Mondays, Tuesdays and Wednesdays.

During the offers and discounts season, Jumia grants all its customers seven Flash Sales offers per day, in addition to 12 Flash Sales every Friday. It also provides 100 percent Cashback on items purchased during the discounts offers, in case customers use Ju-

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miaPay platform to pay online.

Jumia Egypt is also working to develop online payment methods through JumiaPay that has won the admiration of customers, as it offers installment plans for any of Jumia products without any interest for one year for all National Bank of Egypt credit card holders, in addition to discounts up to 15 percent on JumiaPay purchases using credit and debit cards, Fawry, and e-wallet through VCN feature used by all banks and telecom companies.

Jumia offers coupons and great discounts on all products at the lowest prices and highest quality, including grocery products such as drinks, detergents, food and more, home appliances and the latest mobiles. It also offers a daily Flash Sale on different categories with the fastest delivery service in all governorates in a convenient and safe way.

Eng. Hisham Safwat, CEO of Jumia Egypt, stated that “the Egyptian citizens have linked discounts and offers to what Jumia provides, including high quality local and global products at unprecedented prices.” He also pointed out that the e-commerce platforms in general and Jumia in particular were considered a solution for many customers as Covid-19 has started spreading. “They relied on all the services provided by Jumia, especially since we have taken all the preventive and precautionary measures by the World Health Organization and the Ministry of Health in Egypt.”

“The company’s main aim is to increase the number of online beneficiaries’ shoppers through e-commerce platforms. Therefore, Jumia always strives through its different initiatives and campaigns over the year to support local industries and SMEs. In addition, Jumia is working so hard to expand the number of beneficiaries by providing great offers to all governorates where e-commerce has succeeded in enhancing the added value for all beneficiaries and delivering orders to them anytime, anywhere.”

Black Friday season originally started in the United States of America, and Jumia was the first to launch it in Egypt, as Jumia Egypt succeeded to change the concept of ‘only’ summer and winter sales.

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Le Meridien Cairo Airport Celebrates International Coffee day Inspired by its European heritage and commitment to stimulating guests’ curiosity and sense of discovery, Le Meridien Cairo Airport triggered a caffeine-infused experience, in celebration of International Coffee day. Coffee enthusiasts, media, bloggers and Bonvoy members were invited to share the art of coffee and celebrate an aromafilled afternoon with a caffeine infused menu ranging from snacks, to deserts, ice cream, coffee pancakes, along with destination inspired latte crafted by the hotel’s master barista.

German Auto Service (GAS) Opens New Showroom in Heliopolis German Auto Service (GAS), the strategic partner for Mercedes-Benz Egypt for almost 30 years, opened its first-hand showroom in Egypt, which comes in a distinct architectural and technological design known as “MAR2020”. This one of its kind showroom is deemed to display the latest technology in architecture and in presentation techniques, which simulates a real life experience through smart screens and speakers to exemplify the company’s experience with its customers.

The opening ceremony witnessed the participation of a number of senior officials from government and the auto industry, in addition to a group of prominent businessmen who work in the field of manufacturing and assembling cars. Moreover, the event was attended by famous and reputed public figures, as well as media representatives and professionals. It is worth noting that the showroom is located in the Sheraton-Heliopolis area in Cairo, and it is believed to offer unprecedented services, as well as a flagship retail experience escorted by advanced consultation methods that provide customers with assistance while selecting the car that suits them and meets their needs.

Emad Waheed, managing director of GAS, expressed how elated he was at the opening, which came as a culmination of the extended partnership with Mercedes-Benz International. “We appreciate Mercedes-Benz Egypt’s efforts in supporting its partners in the Egyptian market... Since GAS earned this new experience in the region along with a number of Mercedes-Benz partners, we have held a commitment towards our clients to exert our utmost efforts to preserve the value of this brand,” he stated, adding that they carry a shared responsibility for walking through the path of success together in the coming years, in the hope of improving the customer’s experience by offering the best services.

“Our partnership with Mercedes-Benz started in 1986 with the establishment of one of the largest after-sales service centers for Mercedes-Benz cars in Egypt. That is to say, at the beginning we had a clear vision and objective, which revolved around providing products and services for Mercedes-Benz cars in a market that relentlessly goes through rapid developments. Thus, our determination, to adhere to this target, contributed to acquiring the trust of all customers in Egypt, which gave us an impetus to provide sales and after-sales services,” Waheed said.

Thomas Zorn, CEO of Mercedes-Benz Egypt, congratulated the German Automotive Service (GAS) team on the opening of their first Mercedes-Benz MAR2020 showroom and affirmed, “GAS has always been a very strong and important authorized service partner, who has proven efficiency and ability to provide one of the best after-sales services throughout the years of our partnership.

As a result, our cooperation and the extended new offering of sales services come as no surprise and reflect the success achieved throughout more than 30 years of fruitful cooperation. Indeed, we believe in this partnership, which is expected to gain more success and progress further down the road.”

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Viu Expands International Offering to MENA Audiences with FOX+ Partnership Viu, a leading pan-regional OTT video service from PCCW Media Group, has partnered with FOX+ to expand tailored international content offered to its audiences across the MENA region since October.

The collaboration is another step on the brand’s growth journey; and it reinforces its vision of creating engaging and diverse content and bringing quality international content to its audiences.

More than 300 Western titles will be available on Viu, with close to 100 hours of new content being added to the platform each month. Audiences will have access to content from FOX+ including the latest TV series, lifestyle shows, Hollywood blockbusters, inspiring documentaries and kids’ programs.

The introduction of FOX+ content adds to Viu’s library of international titles, which includes Arabic, Korean, Pakistani, Indian, Pinoy, Spanish, Turkish and Russian series and films.

Abe Aboul Naga, general manager at Viu Middle East, said, “We have built a following of more than 36 million monthly active ‘Viu-ers’ worldwide, offering a diverse content portfolio and customized user experience. We know what our viewers want and we are delighted to be working alongside an international brand such as FOX+ to provide even more tailored entertainment. We believe this collaboration will not only attract new audiences but also enhance the viewing experience of our existing users.”

Viu’s tie-up with FOX+ follows its strategy of forming partnerships that offer great viewing variety, while capti-

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vating new audiences. Notably, the streaming service has gained a following throughout the Middle East by offering popular content from well-recognized Arab and Asian providers across different genres with local language dubbing and subtitles. This comes as interest in foreign films and TV continues to rise in Viu’s operating markets.

Available to Viu Premium members in the region, the FOX+ content will feature a range of movies, TV series and documentaries across five FOX+ categories: FOX Series, a library of US dramas and comedies; FOX Cinema, providing popular Hollywood movies and franchises from 20th Century Fox productions across different genres; FOX Life, providing popular lifestyle shows dedicated to food, home, fashion, leisure and travel and reality TV; National Geographic, providing leading documentaries; and Baby TV, the home of baby and toddler entertainment.

Subscribers to Viu’s free service will gain special access to the first episode of each available FOX+ series.

Viu-ers can also enjoy leading titles, such as the Rocky series; The Maze Runner , from November; Planet of the Apes, from November; Deadpool, from December; TV series Modern Family (Seasons 1 - 10); Homeland (Seasons 1 - 6); and American Horror Story (Season 1 - 8).

Also wholly-owned by the Group, PCCW Solutions is a leading IT and business process outsourcing provider in Hong Kong, mainland China and Southeast Asia. In addition, PCCW holds a stake in Pacific Century Premium Developments Limited and other overseas investments.

To learn more about PCCW, please visit www.pccw.com.

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Nestlé Egypt Launches Initiative to Collect and Recycle Plastic Packaging Waste

In line with Nestlé Global’s commitment to preserve the environment for future generations and enhance livelihoods of the informal sector, Nestlé Egypt launched “Nestlé Egypt’s initiative to collect and recycle plastic packaging waste”. Through this initiative, the leading nutrition company is working to enhance the recycling ecosystem in Egypt. It has been established through a collaboration between the Egyptian Ministry of Environment, CID Consulting and PayMob, and aims to incentivize waste collectors in the informal sector to boost their collection capacity ensuring larger quantities reach PET processors.

During the launch press conference, H.E. Minister of Environment stated, “The waste management ecosystem relies on three main pillars: The infrastructure which consists of factories and landfills, the operations of this infrastructure and last, the private corporate support and CSR support induced within this infrastructure.” She reiterated, “The private sector plays a crucial role in supporting the government to enhance this organization.”

From her side, Founder and Former Minister of Urban Renewal and Informal Settlements, Dr. Laila Iskandar stated, “Nestlé adopted an entire organization that goes in line with the new governmental law of utilizing plastic waste. Through the company’s dedication to the environment, more plastics used in packaging material will be recollected and recycled. The Reverse Credit System is a collaboration between the private and public sector to ensure the cleanliness of the city and commitment to the state policy in the field of residential collection of municipal waste.” She continued, “The success of this initiative encouraged several companies to reconsider their recycling, wrapping and packing activities.”

Moataz El Hout, CEO of Nestlé Egypt stated, “At Nestlé our purpose is to unlock the power of food to enhance quality of life for everyone, today and for generations to come.”

He added, “Nestlé identified a list of 20 countries that contribute to more than 50 percent of the world’s plastics consumption and Egypt

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is one of them. We are currently working in these countries to boost recycling and improve its ecosystem with Cairo being the first city. This initiative will incentivize traditional waste collectors given that they are the most essential pillar of the value chain.”

Special Envoy on Financing 2030 Agenda for Sustainable Development Dr. Mahmoud Mohieldin added, “The environmental aspect is one of the objectives of Sustainable Development and must not be overlooked. In fact, the Reverse Credit system is one of the objectives of Sustainable Development.” He continued, “Egypt’s Vision 2030 requires hard work and dedication, and the existing environmental challenges require collective efforts from both the governmental and the private sector.”

Through the partnership between Nestlé and CID, the Reverse Credit System has been established to facilitate the process of registering and documenting all quantities among waste collectors, intermediate sorters and PET processors in Manshyiet Nasser. This will enable each to collect their monetary incentive upon meeting their monthly targets.

The Reverse Credit System does not only have positive impact on the environment, rather, it has a positive economic impact on the informal sector through financial inclusion, women empowerment and digital transformation. The financial incentives received by participants enabled families to allocate larger amounts to nutrition, education and health.

With digital illiteracy imposing a constraint on the applicability of the system, Nestlé Egypt trained all participants on how receive their incentives through e-wallets then acquiring cash from different branches of telecom operators. Moreover, a team of youth from Manyshiet Nasser has been recruited to closely monitor daily transactions ensuring the sustainability of the system.

Nestlé Egypt partnered with PayMob to design and execute the digital platform for registration and documentation of all quantities through SMS from their mobile phones and acquiring the amounts in the e-wallets.

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Al Ahly Sabbour Signs MOU with LVNG for School Management to Develop 2 International Schools at The City of Odyssia in Mostakbal City Al Ahly Sabbour, the leading developer in the Egyptian real estate market, signed a memorandum of understanding with New Giza for School Management (LVNG Learning Environments), allowing the two entities to develop two international schools with a total investment of LE 650 million on an area covering 30,000 m2 at the City of Odyssia in Mostakbal City.

By merging their experiences in both real estate and educational development, the two entities will partner to offer a stimulating learning environment supported by international accreditation agencies, quality educators, and state-of-theart facilities. The new project is expected to start operating in 2023.

“Since day one, as Al Ahly Sabbour, we’ve sought out partnerships that not only add value to our endeavors, but also help us achieve our vision to offer unique, state-of-the-art real estate products,” said Eng. Ahmed Sabbour, CEO of Al Ahly Sabbour. He went on to describe the agreement with New Giza for School Management as “a tremendous leap towards creating a comprehensive cultural hub. Through their brand LVNG, New Giza for School Management is projected to add a new tier of quality living to the City of Odyssia. It is our most important project to date, one that is set to bring immense value to the vital area considered as a golden triangle between Mostakbal City, New Cairo, and the New Administrative Capital.”

On his behalf, Amr Elseginy, CEO of New Giza for School Management (LVNG), added, “We believe in the excellence and individuality of every learner; thus, we are keen to develop encouraging and stimulating educational environments that promote creative and self-discovery skills in academic, personal, sports, artistic, cultural and health domains, which we are thrilled to introduce to this new cultural and educational hub at Al Ahly Sabbour’s City of Odyssia.”

He further added, “At LVNG, we pursue accreditation and partnership with the top local and international accreditation

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bodies to ensure providing the highest quality researchbased educational services.” LVNG prides itself on the joint accumulative years of experience brought by the founders and the executive team in establishing, developing, and managing distinguished international educational projects.

Recently, since 2015, the company has established an exemplary international educational complex in west Cairo.

It includes Lycée Albert Camus, which offers a French international program accredited by the AEFE representing the French Ministry of Education; and Evolution International School, which provides an unprecedented educational model based on the Montessori system for early years, the British IGCSE system and the International Baccalaureate IB Diploma Progamme. The educational complex also includes New Giza Nursery for pre-school children. More on LVNG activities and projects is available on their website www.lvng.net In partnership with El Mostakbal For Urban Development, the master developer of Mostakbal City, The City of Odyssia is based in a prime location, 15 minutes from the American University in Cairo and adjacent to the New Administrative Capital. This project, which sees a total of LE 29 billion in investments, is planned to be delivered over seven phases; three of which, “The Ridge,” “Alaire,” and “Alaire Park” have already been launched and contain mixed-use and residential components. Moreover, the project features a unique architectural style designed by the world-renowned architecture firm Gensler, on an area of 528 acres. Its urban design was executed with careful attention to cater to all needs and tastes, as well as to provide the highest levels of privacy to its customers, bringing together luxurious apartments, villas, twin and townhouses.

With vast green and recreational areas, services, cultural and artistic hubs, The City of Odyssia provides a healthy and lively atmosphere to its people, set to start delivering towards the end of 2022.

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Immersive and Incomparable: The Factors behind the Success of Samsung’s QLED TVs TV’s are now a standout feature of any home; and audiences expect and deserve products that will meet and exceed their expectations for many years to come. The last thing consumers should encounter are issues related to safety or burn-in. Instead, they search for a TV that ticks every box in terms of preference and offers longevity, reliability, and peace of mind.

Samsung’s range of QLED TVs provides precisely that. Whether gaming, streaming movies, or watching your favorite TV series, interactions are sure never to be interrupted, so there is nothing in the way of doing what you love.

Safety for all the family

Every member of the family, adults and children alike, benefit from QLED capabilities, and Samsung take pride in upholding their responsibility to ensure that products align with the highest possible standards. Moreover, various certifications prove why Samsung’s QLED TVs are number one globally. This year, they became the first in the TV industry to receive verifications proving that various types of light emitted by QLED TVs do not pose any photobiological hazards. In line with the International Electrotechnical Commission’s (IEC) standards concerning photobiological and eye safety, Samsung obtained “No Photobiological LED Hazard” confirmation from Underwriters Laboratories (UL), a leading safety science company. Of course, financial protection is also a priority alongside physical well-being. In recent times, Samsung’s smart TVs also became the first to be industry-certified for enhanced security. Inclusive of Samsung Knox technology, they have received the Common Criteria (CC) certification consecutively for several years, providing further peace of mind for all who purchase Samsung QLED TVs. Burn-in and overheating prevention

Uninterrupted picture quality is fundamental to world-class viewing experiences, something that Samsung ensure in every instance by preventing burn-in. An issue that has regularly surfaced on countless TV’s in years gone by, burn-in is a permanent defect in areas of a TV display, with persistent images caused by static graphics remaining on the screen for extended periods. This ultimately results in an unpleasant imprint on the screen, disrupted viewing experiences, and leading dissatisfaction.

Not long ago, Samsung’s QLED TVs became the first to be certified burn-in free by video, an acclaimed German tech magazine, in conjunction with Testlab, a global testing lab. TV experts from video conducted a comprehensive evaluation to assess burn-in vulnerability and afterglow, which can impair vision quality – and the results confirmed that Samsung’s TVs were free of both issues.

Of course, the potential overheating issue affecting other markets has thrust the spotlight on overheating prevention measures in all other areas. And this year, Samsung’s most recent non-overheating verification came from TUV Rheinland, one of the world’s leading testing service providers that ensures safety and quality in all areas of business and life. TUV Rheinland’s highly qualified experts tested Samsung’s QLED TVs, with overheating one of the key assessment areas. The company certified that the TVs would not overheat at any stage, providing consumers with the comfort of knowing that they do not have

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to be concerned about such incidents and possible aftermaths.

Reliability, durability, longevity

Another aspect that is instrumental to the popularity of Samsung’s QLED TVs is their longevity. More than ever before, consumers purchase their TVs as a long-term investment that will accommodate their needs and preferences for many years, demanding reliability and durability. And with Samsung QLED TVs, it could be as long as a decade before visual quality begins to subside, irrespective of how often they may be used daily. Furthermore, Samsung have also taken extra steps to ensure their TVs are protected should any unfortunate incidents transpire. For instance, lifespan is safeguarded with a lifetime burn-in warranty, so you never have to worry about purchasing a new TV. And to provide further peace of mind, a series of comprehensive tests to measure image retention and verify longevity have also been conducted by numerous internal and external experts – with unanimous positive outcomes.

Constant visual quality, cutting-edge sound, and greater clarity

Samsung’s QLED TVs come equipped with ground-breaking Quantum dot technology that ensures all degrees of light immediately transform into breathtaking color. Every detail can be seen with absolute transparency, with picture quality that boasts extreme depth and bold contrast. This is possible because Quantum dots consist of an innovative semiconductor material that emits light according to nanoparticles’ size and can continuously be effective without compromising quality. Immersive visual experiences are not the same without equally impressive audio, and both these areas define the quality of Samsung QLED TVs. They boast Object Tracking Sound+ that utilizes AI-based software, matching audio sound movement with objects that appear through the screen. This is supported by 4.2.2 channel surround sound, with speakers on all sides of the display and sub-woofers for flawless sound quality synonymous with cinema experiences. At the same time, the Active Voice Amplifier (AVA) removes distracting sounds in the background for uninterrupted enjoyment.

The powerful Quantum Processor 8k is also influential behind Samsung’s success. This has most recently been demonstrated following the launch of the QLED 8K 2020, where every frame is witnessed through 33 million pixels, portraying unrivaled clarity and resolution four times higher than 4K. The Quantum Processor 8K ensures the highest possible standard of quality, tapping into an extensive knowledge database developed through millions of learned patterns to offer immersive and incomparable viewing experiences.

8K AI upscaling analyzes every scene of content, thoroughly processing lighting, color, contrast details, and data. 8K picture can be viewed from any source, and AI upscaling optimizes quality so users can view content with the very best resolution.

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Last Word

“The Egyptian economy has expanded at a broadly steady pace, in line with that of many middleincome peers, and has experienced several growth spurts over the past fifteen years.�

World Bank report - Egypt Economic Monitor

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‫أقوي األفالم واألعمال الدرامية واألحداث‬ ‫الرياضية بدون إعالنات‬

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