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The Weekly

Week ending Sunday 22 June 2014

Issue : 25/2014

John Kerry’s Visit

• The US Secretary of State John Kerry arrived to Egypt in his first official

visit since the election of President Abd El Fattah El Sisi. Kerry met with

the President, Minister of Foreign affairs among others, to discuss

bilateral relations as well as congratulate the new President on his post.

• John Kerry pledged US’s full military and financial support for Egypt and

committed to confronting shared threats of terrorism and extremists.

• Ten days before his visit, $572 million of military aid was released- a

tranche of $1.3 billion military aid allocated to Egypt. 10 Apache a-ack

helicopters have yet to be delivered.

• Last week, the American Senate Appropriations Committee proposed a

28% cut in aid provided to Egypt to decrease the total military aid from

$1.3 billion to $1 billion and would be subject to democratic and human

rights conditions.

*($1=EGP7.16505, €1=$1.3600)

"I emphasised our strong support for

upholding the universal rights and

freedoms of all Egyptians including

freedom of expression, peaceful assembly

and association"

John Kerry

US Secretary of State

Ahram Online 22 June 2014

“I'm confident we'll be able to get the full

amount of aid. I'm confident we will get on

track there”

John Kerry

US Secretary of State

Press TV 23 June 2014

“I want to assure the people of Egypt that I,

as a member of Congress, will stand strong

in support of continuing military support

for [Egypt]”

Michelle Bachmann

Republican Senator in the American

Congress

Daily News Egypt 18 June 2014

Mass Death Sentences

• On Saturday, Minya Criminal Court ruled death sentences against the

Brotherhood Supreme Guide Mohamed Badie and 182 Moslem

Brotherhood supporters, and acqui-ed 496 out of 683 defendants, on the

backdrop of attacking Adawa Police Station in Minya governorate,

committing violence, rioting, destroying public &private property, inciting

violence and killing a police officer on 14 August 2013.

"The state is still insisting that the judiciary

is independent. I don't know how we can

believe that when we see rulings like that.

It is against logic and common sense"

Gamal Eid

Prominent Egyptian human rights activist

Zawya 21 June 2014

1

The Weekly Week ending Sunday 22 June 2014

2

• Despite the verdict is not final as it can still be appealed in front of the

Court of Cassation, Amnesty strongly criticised the decision by the court,

accusing the judiciary of losing "any semblance of impartiality".

• In a related note, on Thursday, Giza Criminal Court handed preliminary

death penalties to Mohamed Badie and 12 other defendants including top

leaders Safwat Hegazi, Mohamed El-Beltagi, Essam El-Erian, and Bassem

Ouda, in the “Istiqama Mosque” case in Giza governorate on charges of

inciting murder. Additionally, on Wednesday, an Egyptian Criminal Court

sentenced 12 defendants to death on charges of attacking a police station

in Kerdasa and killing a senior police officer.

"In recent months Egyptian courts appear

to have handed out death sentences at the

drop of a hat”

"The Egyptian authorities must quash these

sentences and order a fair retrial,"

"The death penalty is being ruthlessly

deployed as a tool to eliminate political

opponents”

Hassiba Hadj Sahraoui

Deputy Director for the MENA at Amnesty

International

Ahram Online 21 June 2014

Other Headlines

• The first cabinet under President Abd El Fattah El Sisi was sworn in last

Tuesday, headed by Prime Minister Ibrahim Mahlab,where13 new

Ministers have been selected in the new government, a new Ministry for

rural development has been introduced and the Ministry of Information

has been cancelled and replaced with a national media council in

compliance with a recently adopted constitution.

“Finishing the third milestone of the [post

3 July] road map, establishing security and

continuing the economic reform tops our

priorities”

Ibrahim Mahlab

Prime Minister

Daily News Egypt 17 June 2014

• On Friday, Saudi Arabia's King Abdullah visited Cairo and met with

Egypt's President Abdel Fattah Al-Sisi and his Prime Minister Ibrahim

Mahlab. The King’s visit which is the first since the 2011 ouster of Hosni

Mubarak, is a strong message reflecting the Saudi support to Egypt . The

two leaders discussed the "Friends of Egypt" conference, called for by the

Saudi king in an effort to enhance Egypt's economy in the upcoming

period.

“King Abdullah’s visit is a message aiming

at supporting Egypt on both the political

and economic levels”

Ashraf Alaraby

Minister of planning

Veto Gate 21 June 2014

• President Abdel Fattah Al-Sisi issued a decree to establish a supreme

committee for legislative reform. The committee will be assigned for

drafting, amending and revising draft legislations to avoid overlapping. It

will be headed by the Prime Minister and comprises the Ministers of

Parliament Affairs, Transitional Justice and Justice, the state’s Grand

Mufti, Head of the State Council, Al-Azhar’s deputy Head, three law

university professors, two judges and others.

“The decision reflects a wise and insightful

vision for the upcoming phase, it is an

unprecedented matter when the President

resorts to a committee of specialists to

revise the draft laws before issuing them”

Mahmoud Kebish

Dean of Cairo University's Faculty of Law

Dostor.org 17 June 2014

• The African Union's Peace and Security Council unanimously agreed to

reinstate Egypt's membership in the African Union (AU). The decision

came after the suspension of Egypt’s membership since the overthrow of

President Mohamed Morsi last year.

"The decision reflected [the AU's] respect

for the will of the Egyptian people

embodied in 30 June and finalising the first

two milestones of the new roadmap: the

constitutional referendum and the

presidential election"

Ministry of Foreign Affairs’ Statement

Ahram Online 17 June 2014

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• President Abdel Fattah Al Sisi issued a decree to increase pensions by

10% star7ng next July 2014, where the increase will be based on total

pension deserved plus any increases due before 30 June 2014.

“According to the presidential decree, the

state’s budget will bear the financial

burdens of such increase, and the Minister

of Social Solidarity will issue the rules for

its implementation”

Ihab Badwy

Cabinet Spokesman

El Mal Newspaper 17 June 2014

• The Egyptian Financial Supervisory Authority (EFSA) approved the offer

submitted by Dutch-based New Egypt Investment fund, owned by Naguib

Sawiris and Beltone Financial to acquire 20% of EFG-Hermes.

"Following a falling trend, stocks managed

to rebound on the back of EFSA's

announcement"

Ashraf Abdel-Aziz

Head of Institutional Sales at the Cairo-

based Arabia Online Securities

Ahram Online 18 June 2014

• According to a presidential decision, the Ministry of Environment will

have an executive authority rather than advisory role over all the other

ministries regarding environmental issues.

The Weekly Week ending Sunday 22 June 2014

4

EGP Exchange Rates*

Egyptian Stock Market Indices

Macroeconomic Indicators FY 2011/2012*** FY 2012/2013*** 2013/2014 (July-March)

Real GDP Growth Rates 2.2% 2.1% 1.1%****

Budget Deficit (EGP Billion) 166.7 239.9 145

Budget Deficit as % of GDP 10.8% 13.8% 7.1%

Balance of Payments (USD Billion) -0.1 0.24 2.2

Gross Domestic Debt (EGP Billion) 1,155.3 1,446.6 1,708.1

Gross Domestic Debt as % of GDP 74.9% 83.4% 83.3%

Average Headline Inflation 8.7% 6.9% 10.7%

Average Unemployment Rate 12.4% 13% 13.4%

*Average exchange rates on the last working day of the week in Egypt.

**Morgan Stanley Capital International Emerging Markets Index.

***Fiscal year ending 30 June.

**** July/December 2013

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7.03 7.02 7.00 6.91 6.90 6.90 6.95 6.98 6.98 6.98 7.02 7.17 7.17

9.33 9.33 9.37 9.41 9.51 9.47 9.51 9.51 9.54 9.61 9.70 9.75 9.75

10.93 10.82 10.95 11.19 11.18 11.39 11.38 11.52 11.61 11.59 11.81 11.98 12.19

5.005.506.006.507.007.508.008.509.009.50

10.0010.5011.0011.5012.0012.5013.00

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

EGP per USD EGP per Euro EGP per Pound Sterling

35

40

45

50

35004000

4500

50005500

6000

6500

70007500

8000

85009000

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

MS

CI

EM

EG

X

EGX 30 EGX 70(Rel.) EGX 100(Rel.) MSCI EM**