EGYPT'S ECONOMY: JULY 27 PRESS ROUND-UP

UNCLAS CAIRO 001440

SIPDIS

STATE FOR NEA/ELA

E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: JULY 27 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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Tax Revenues Increased 21% in FY2008/09
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2. (U) Egypt's tax revenues increased 21% to LE140.5 billion
(US$25.27 billion) in FY2008/09, with LE89 billion (US$16 billion)
from income taxes and LE51 billion (US$9.16 billion) from sales
taxes, compared to LE76 billion (US$13.67 billion) and LE42 billion
(US$7.55 billion) in income and sales taxes in FY2007/08,
respectively, according to the chairman of the Egyptian Tax
Authority, Ashraf Al Araby. He added that the global financial
crisis did not impact tax revenues in FY2008/09, although he expects
it to negatively affect tax revenues in the current fiscal year due
to the drop in real growth and decreased private sector earnings.
(All newspapers, 7/20/09)

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Egypt Sets Targets for Food Self-Sufficiency
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3. (U) Amin Abaza, Minister of Agriculture and Land Reclamation,
announced that Egypt aims to reclaim and cultivate around 4.2
million acres of land by 2030 in order to achieve self-sufficiency
in strategic crops, including wheat, maize, and sugar, at a total
investment cost of LE34 billion (US$6.12 billion). Moreover, he
added that Egypt is planning to increase the total area of wheat
cultivation 33%, from 3 million acres to 4 million acres. (Al Masry
Al Youm, 7/20/09)

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Egypt and Russia Discuss Nuclear Cooperation
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4. (U) The Egyptian Minister of Electricity and Energy, Hassan
Younis, met with the head of the Russian Atomic Energy Agency,
Sergei Kiriyenko, to discuss ways forward for bilateral cooperation
on nuclear power plants and technical training. Egypt and Russia
agreed last year to significant Russian support for Egypt's nascent
nuclear energy industry. (Al Ahram, 7/19/09)

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Government Postpones Fixed-Line Phone Tender Again
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5. (U) The Egyptian Ministry of Communications and Information
Technology (MCIT) again postponed the sale of a second fixed phone
line operator license, citing continued financial turbulence and
slow recovery in capital markets. The sale of the tender would end
Telecom Egypt's current monopoly over the market. The Ministry had
previously delayed the tender for a year in September 2008. However,
according to MCIT statements, the Ministry is expected to revisit
the issue over the next several months. (Al Mal, 7/19/09)

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