EGYPT'S ECONOMY: JULY 13 PRESS ROUND-UP

UNCLAS CAIRO 001342

SIPDIS

STATE FOR NEA/ELA

E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: JULY 13 PRESS ROUND-UP


1. (U) The following are notable economic news stories that appeared
over the past week in the Egyptian press:

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Annual Suez Canal Revenues Fall in FY2008/09
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2. (U) The Suez Canal Authority (SCA) announced that it earned
LE26.5 billion (US$4.74 billion) during FY 2008/09, abouQ4% of
Egypt's GDP, which is down from LE28.5 billion (US$5.11 billion) in
FY2007/08. However, SCA's revenue in June 2009 was LE1.9 billion
(US$348 million),which is 1.6% higher than the same month last
year. The National Bank of Egypt has estimated that SCA's revenue in
FY2009/10 will reach LE26.8 billion (US$4.8 billion). (Al Shorouk,
7/9/2009)

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Government Announces New Value-Added Tax Law
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3. (U) The Egyptian Finance Minister, Youssef Boutros Ghali,
announced that the Ministry of Finance has finalized the new
value-added tax (VAT) law. The VAT will replace the existing sales
tax, a policy overhaul the GOE postponed repeatedly over the past
several years due to high inflation and the global economic crisis.
However, businesses earning less than LE300,000 (US$53,700) annually
will be exempt from the VAT. Boutros Ghali will send the new law to
Parliament when it convenes again in November. (Al Mal, 7/8/2009)

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Scientists Begin Surveying Sites for Nuclear Plant
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4. (U) A team of international nuclear experts began geological and
environmental surveys last week at several proposed sites for a
nuclear energy plant, according to a spokesman for the Australian
Worley Parsons engineering company, which last month signed a
contract with the Government of Egypt (GOE) to build the plant. The
team will survey at least five sites, including one near the
Mediterranean coastal town of Dabaa, where Egypt planned to build a
nuclear plant in the 1980s, and two sites along the Red Sea in the
southeast corner of Egypt. The Vice Chairman of Egypt's Nuclear
Power Plan Authority said that the team will complete its surveys
within six to seven months. (Al Masry Al Youm, 7/8/2009, Al Shorouk,
7/13/2009)

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GOE Qlocates LE4.3 Billion for 1000 Poorest Villages
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5. (U) Prime Minister Ahmed Nazif announced that the GOE has
allocated LE4.3 billion (US$768 million) for the development of the
1000 poorest villages in Egypt. Speaking during the opening session
of a conference on social policies, Nazif stated that the money will
be used to expand and enhance public services, including
electricity, sanitation, water, medical units, social services
centers, youth centers, roads and housing. (Al Ahram, 7/5/2009)

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National Bank of Egypt Looks to Expand Regionally
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6. (U) The National Bank of Egypt has announced plans to expand
regionally, eyeing potential acquisition opportunities in Sudan and
Libya. The bank's Vice President, Hisham Okashah, said that it will
decide which countries and cities to open branches in based mainly
on local demand for the Egyptian pound. (Al Alam Al YoQ, 7/5/2009)


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