Business Today - Dec 2022 - Jan 2023 issue

December 2022 - January 2023

Vol 28 Issue 1 LE 30

Exclusive

interview with

Abdullah

Saud

AlRomaih

Chief Executive

officer of

Jazeera Paints

2023

The Year of

Many

Challenges

to the World

Economy

533-304-105

BIG BANG

SANG BLEU II

Magic Gold case, a scratch-resistant

18K gold alloy invented and patented by

Hublot. In-house UNICO chronograph

movement. Limited to 100 pieces.

Editor’s Note

Welcome 2023

It’s the first issue of 2023. A year of many challenges

is set to face global economies due to a number of

different factors including the war in Ukraine and

the post-pandemic recovery. For most economies, the

probability of a systematic financial crisis giving rise to

inflation and hiked interest rates looms ahead. It’s a year

that will test the resilience of the world economy and will

determine the future.

Egypt’s economy showed resilience to the COVID-19

crisis with slight recovery in 2021; however, the war in

Ukraine upended the recovery by triggering capital outflows,

reducing the Central Bank’s foreign reserves and

banks’ net foreign assets, and widening the exchange

rate misalignment.

Following the appointment of a new acting governor

to the Central Bank, the Egyptian government made a

commitment to shift to a flexible exchange rate. The

country, with the help of the International Monetary

Fund, announced a program that aims to reduce imbalances,

maintain macroeconomic stability, restore buffers

and improve resilience against shocks, and pave the way

for private-sector-led growth. According to the IMF, a

permanent shift to a flexible exchange rate regime will

help mitigate external shocks, prevent imbalances from

re-emerging and allow monetary policy to focus on maintaining

price stability. Fiscal consolidation will ensure

medium-term debt sustainability, while expansion of social

spending will help alleviate poverty and protect the

vulnerable.

The first two quarters of the year will be crucial in restoring

stability to the rate of the Egyptian Pound as the

demand is at the highest level on US Dollar from importers.

In this issue, we take an in-depth look at what happened

in 2022 and share our forecast for 2023.

The Business Today Egypt team wishes you all a happy

year full of happiness and success.

Mohamed Abdel Baky

mabdelbaky@egypttoday.com

Founder William Harrison

(1940–1995)

Executive Editor-in-Chief

Mohamed Abdel Baky

Managing Editor

Noha Mohammed

Staff Writers

Hanan Mohamed

Christine Salzmann

Nourhan Magdi

Noha El Tawil

Art Director

Heba Mekky

Graphic Designer

Yara Tarek Tabl

Business Development and

Communications Director

Imane Hassan

Business Development Director

Sherif Anis

Senior Sales Manager

Sayed Abo El Magd

For advertising inquiries

please contact

01010611084

businesstodayegypt

btegyptmag

Business Today Egypt, founded in 1995, is

published monthly by International

Business Associates Group,

Cayman Islands.

US Office: Business Today, P.O. Box 2191,

Austin, TX 78768. Tel: + 1 (512) 743-6279.

Camera-ready advertising copy

deadlines are the 10th of the month

preceding publication; reservations,

cancellations and changes must be

made by the 20th of every month.

Editorial, Sales & Subscription Offices

6 Wezaret El-Zeraa, Mohandiseen,

Arab Republic of Egypt.

Tel: (02) 2773331 / 27704596 / 25772545

editor@businesstodayegypt.com

sales@businesstodayegypt.com

subscriptions@businesstodayegypt.com

CTP & printing: Al Ahram Commercial Press

4

bt

January 2023

www.BusinessTodayEgypt.com

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. This is the spirit

embodied by every TUDOR

Watch. Some are born to

follow. Others are born

to dare.

39 millimetre case

in 18 ct yellow gold

Snowflake hands

A hallmark of TUDOR

divers’ watches

since 1969

Manufacture calibre

MT5400 with 70-hour

“weekend-proof”

power-reserve, silicon

hair-spring and

COSC-certification

Five-year transferable

guarantee with no

registration or periodic

maintenance checks required

533-304-105

BLACK BAY FIFTY-EIGHT 18K

CITYSTARS MALL HELIOPOLIS - T. 24802299, 01282708899

JW MARRIOTT, MIRAGE CITY - T. 24111444, 01271119272

WWW.FELOPATEERPALACE.COM - FELOPATEER@FELOPATEERPALACE.COM

In This Issue

Vol. 28 No. 1 | December 2022 - January 2023


Cover design by Heba Mekky

8 In Brief

4 Editor’s Note

Opinion

19 Ever Wonder Why These Particular Videos

or Content Show Up in Your “TikTok For

You Feeds?” Here Are The Answers

TikTok unveils a ground-breaking feature/

tool to give content suggested in “For You

feeds” more context.

20 It’s Time to Alleviate the Anxiety Around

EVs to Accelerate the Auto Industry’s Move

to Electrification

News in Focus

22 Lifting Restrictions on Imports

Egypt’s Central Bank cancels working with

Letter of Credit system.

By Hanan Mohamed

Face of Business

30 Revolutionizing the Paint Industry

Jazeera Paints to bring a new splash of color

to the local market.

36 Creating Meaningful and Impactful Brand

Stories

Defining storytelling, pitching, and taking

the misses to build hits with Coca-Cola’s

Islam ElDessouky.

By Christine Salzmann

In-Depth

42 Pathways to Maintain Egypt’s

Attractiveness to Foreign Direct Investment

With global crises disrupting progress in

attracting foreign direct investment, Egypt

needs to seek out dynamic new solutions to

achieve sustainable inflows.

By Noha El Tawil

46 Adopting Startup Mentality and Tactics

when Business-Building

Today’s business landscape is no stranger

to disruption and transformation as

startups continue to challenge wellestablished

and deep-rooted companies

long after the likes of Amazon and Uber

reinvented and digitized their respective

industries.


50 Coping with Water Scarcity: Egypt

Takes Alternatives Seriously

6 January 2023


In This Issue

Over the past years, Egypt has put

in place strategies to address water

scarcity, investing in non-traditional

alternatives including drainage water

treatment plants, the most prominent

of which is the Bahr El-Baqar station

mega project.

By Nourhan Magdy

54 Understanding Barriers to Realizing

Full Potential of Egyptian Exports

Egypt aims to attain $100-billion

exports.

By Noha El Tawil

Spotlight

58 Taking Nuclear Medicine to

Different Levels

Egypt has achieved progress in

the peaceful use of atomic energy,

and is currently moving towards

incorporating nuclear medicine in

treating different diseases.

By Nourhan Magdy

62 Delivering Global Events to Egypt’s

Shores

As tourism continues to recover at a

steady pace, Egypt’s event industry

and itinerary expands with local

and global entries in our annual

calendars. From regional superstars to

international comedians and concerts,

Egypt’s attractiveness as a regional

entertainment hub has accelerated as

lockdowns and travel restrictions wane.


64 World Economy to Undergo Tough

Phase in 2023

The right monetary and fiscal policies

are the only way to a healthy economy.

By Noha El Tawil

© COPYRIGHT BUSINESS TODAY EGYPT 2023.

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.

Tel: +2 (02) 2755-5000. Manuscripts, reports and

other material submitted must be accompanied

by a stamped, self-addressed envelope. However,

Business Today Egypt cannot be responsible for

unsolicited material. Advertising camera-ready copy

deadlines are the 10th of the month preceding

publication; reservations, cancellations and changes

must be made by the 20th of every month. SUB-

SCRIPTIONS: Rates for a full- year subscription are

LE 180 in Egypt and $100 outside Egypt. Far East,

Latin America, South America, Australia and New

Zealand are $120 for one year. Allow four weeks

for delivery of first issue on new subscriptions. Send

address changes to: Business Today Egypt, 6 Wezaret

El-Zeraa, Mohandiseen, Cairo, Egypt. E-mail:

subscriptions@businesstodayegypt.com. Subscribers

in the US: Please send address changes to: Subscriptions

Dept., Business Today Egypt, P.O. Box 2191,

Austin, TX 78768. Tel: 512-743-6279. Please allow

for four weeks for address change to take effect. US

email inquiries to iba.media@sbcglobal.net. Back

copies are also available from the same department

and from the Cairo address.

70 Clean Transportation Era Begins

in Egypt

bt highlights major sustainable

transportation projects Egypt has

embarked on, some of which have

already gone into operation.

By Nourhan Magdy

74 bt Scene

82 Last Word

www.BusinessTodayEgypt.com January 2023

7

In Brief Egypt

Egypt among top 10 world’s fastest growing economies in 2022: IDSC

The Cabinet Information and Decision Support Center

(IDSC) has announced Egypt is among the top 10 fastest

growing economies in the world in 2022. The center added

that many developments took place in 2022 in spite of the

international crises that had a negative impact on global

economies.

The IDSC noted that Egypt drew the world’s attention to its

ability to confront and invest in a time of crisis, highlighting

that in 2022, Egypt ranked the first country in the Middle East

to issue Samurai bonds and the first country to produce the

first 100% locally manufactured ventilators in the Middle East.

Egypt is also among the top eight nations on the 2022 Africa

SDG Index, which provides an assessment of where African

countries stand with respect to the SDGs and their progress

toward the goals, the center said.

Egypt is the first in hotel projects in Africa 2022, and fifth

globally in the Energy Use Index according to the Climate

Change Performance Index 2023. Egypt also jumped 42 places

in the World Bank’s 2022 GovTech Maturity Index (GTMI) to

rank among the top 10 fastest growing economies in the world

in 2022 as per the International Monetary Fund.

NBE, Banque Misr issue 25% saving certificates

for a year

Banque Misr and the National Bank of Egypt (NBE) issued saving

certificates with an annual return of 25% for a period of one year, in

light of the high inflation rates. The return of the certificate is paid

at 25% interest at the end of the term, or at a monthly rate of 22.5%.

The issuance of savings certificates aims to encourage citizens to

save their money in banks, in order to control high inflation rates.

The core inflation rate in Egypt recorded its highest level since 2017

in November, at 21.5%, compared to 19% in October, thus completing

the upward trend that began almost a year ago, according to Central

Bank of Egypt data.

EGX’s trading values

exceeds EGP 1 Trillion

for 1st time ever

The Egyptian Exchange’s (EGX)

trading values exceeded EGP 1 trillion

for the first time ever during 2022,

according to the head of the EGX,

Ramy El-Dokani.

El-Dokani said during a press conference

that the total trading amount

of EGP 1.094 billion in 2022, adding

that the year witnessed the recording

of the largest number of transactions

within one day in the history of

the Egyptian Stock Exchange, with

109,000 transactions.

Market capitalization witnessed

a significant increase during 2022,

reaching its highest level in its history

at the end of each year, reaching EGP

961 billion, representing 12.3% of the

gross domestic product (GDP), after

it recorded an increase of EGP 195.7

billion during 2021.

The total number of transactions

implemented during 2022 reached 11

million, compared to 11.4 million in

2021.

8 January 2023


January 2023

In Brief Egypt

Egypt’s potato exports to Russia grow by 25% in 2022

Head of the Agricultural Quarantine at the Ministry

of Agriculture and Land Reclamation Ahmed al-Attar

told local media that Egypt’s exports of potatoes to

Russia grew by 25% in 2022, recording 350,000 tons.

The official noted that the total size of potato

exports throughout the year was 875,000 tons. He

further noted that, for the first time, Egypt achieved

agricultural exports of 6.3 million tons.

In a similar context, Minister of Industry Ahmed

Samir highlighted that Egypt’s non-petroleum exports

achieved $11,575 billion in the first 11 months of

2022, recording a rise of 11%. Total exports reached

$32.575 billion in comparison to $29.405 billion

during the same period in 2021, he added.

Egypt secures $13.7B to support national development objectives

About $13.7 billion was secured in 2022 to

support Egypt’s national development objectives,

Minister of International Cooperation Rania Al-

Mashat announced. This included $11.1 billion

directed to sovereign projects across various

economic activities and $2.6 billion for the private

sector.

Al-Mashat explained that the $11 billion included

$2.4 billion for budget support to be disbursed

by June 2023 and directed to expanding social

spending including food security, universal health

insurance, and social protection programs.

The Minister also underscores that the

$2.6 billion financing to the private sector

was secured through cooperation with many

development partners, including International

Finance Corporation (IFC), Agence Française de

Développement (AFD), and the European Union

(EU), among many others.

10 January 2023


January 2023

In Brief Egypt

Egypt’s agricultural exports recorded 6M tons in 2022

Egypt’s agricultural exports recorded six million tons in

2022 with an increase of 200,000 tons. The top crops have

been citrus (1.7 million tons), potatoes (621,900 tons), and

onions (510,552).

Egypt’s exports of frozen strawberry also surged by 30%

in the first 10 months of 2022, registering $290 million,

against $240 million in the same period last year, Vice

Chairman of the Food Export Council (FEC) Ashraf El-

Sayed said early in December.

Further, Egypt’s exports of food industries grew by about

0.5%, hitting $3.490 billion in the first 10 months of 2022,

up from $3.473 billion during the same period in 2021.

Egypt aims to double the value of its exports to become

$100 billion per annum by rationalizing imports coupled

with encouraging labor-intensive and strategic industries.

As a start, the country targets $60 billion in exports by

2025. Egypt is on track to achieve this target as their value

hit $43.6 billion in 2021, and is projected to record $50

billion in 2022.

OPPO has no intention to

exit Egyptian market

The Chinese company OPPO denied rumors

of its intention to exit the Egyptian market,

stressing that all its activities and businesses in

Egypt are proceeding normally.

The company said in a statement that it

considers the Egyptian market one of the most

promising markets in the region, and has great

confidence in its great potential.

OPPO plans to continue its strategy in Egypt

during the coming period, and to continue

searching for more business opportunities with

local partners.

Many users of social media platforms

circulated posts indicating that OPPO had

stopped its activities in Egypt and closed its

offices.

CAPMAS: Extractive, transformative industries index decreases by 3.04%

in Oct. 2022

Egypt’s production index for transformative and

extractive industries, excluding crude oil and petroleum

products, recorded 111.79 in October 2022 against 115.29

a month earlier with a decrease of 3.04%, said the Central

Agency for Public Mobilization and Statistics (CAPMAS).

The production index of ready-to-wear clothes recorded

114.25 in October 2022 compared with 107.94 in September,

recording an increase of 6.04%, according to the CAPMAS.

The total index for the manufacture of electrical

equipment reached 166.85 in October down by 7.11% from

125.79 in September 2022, CAPMAS reported.

The index of pharmaceutical and chemical products hit

122.36 in October, up 3.88% from 117.39 for September,

it added.

January 2023

12 www.BusinessTodayEgypt.com

In Brief Egypt

Non-petroleum exports increase to $11.575B

in 11 months: Industry Ministry

Minister of Trade Ahmed Samir

announced that Egypt’s nonpetroleum

exports managed, in the

first 11 months of 2022, to achieve

positive indexes and rose to $11.575

billion at an 11% increase.

The exports reached $32.575 billion

in comparison to $29.405 billion

during the same period in 2021, he

noted, adding that total Egyptian

exports will reach $35 billion by the

end of 2022.

These positive indexes reflect the

ability of the Egyptian export sectors

to handle current international economic

challenges resulting from the

repercussions of the Russia-Ukraine

crisis and coronavirus pandemic,

Samir said.

At present the ministry is working

on improving the rates of Egyptian

exports to different regional and

international markets, Samir stated.

Egypt’s general budget

achieves primary

surplus of EGP 10.2B

at 0.1% of GDP

The monthly report of the

Egyptian Ministry of Finance

revealed that the state’s general

budget achieved a primary

surplus of EGP 10.2 billion

during the period from July

to September of the fiscal year

2022/2023, at a rate of 0.1% of

GDP, compared to a deficit of

0.09% during the same period

of the previous fiscal year.

The growth reflects an

increase in budget revenues of

15.6% during the first quarter of

the current fiscal year, to reach

258.9 billion pounds, despite

the increase in banks by about

19.2% compared to the same

period in the last fiscal year.

Suez Canal Authority fund not backdoor for selling the canal: SCA

The Suez Canal Authority (SCA) denied the

government’s intention to establish the Suez Canal

Authority Fund as a back door for selling the canal.

The SCA stressed that the canal and its management

will remain wholly owned by the Egyptian state and

subject to its sovereignty, and the entire staff of the

Canal Authority, including employees, technicians

and administrators, will remain Egyptian citizens.

“The aim of establishing a fund owned by the

Canal Authority is to increase the authority’s ability to

contribute to the sustainable economic development

of the Canal Authority facility and develop it through

optimal utilization of its funds in accordance with the

best international standards and rules to maximize its

value,” the Cabinet stated earlier.

It emphasized that the fund would support the

authority to confront crises and emergencies that

occur as a result of any exceptional circumstances

or economic conditions, noting that all the fund’s

accounts are subject to the supervision of the Central

Auditing Organization.

The House of Representatives sparked the debate

in its session due to the discussion of a proposed

bill on amending some articles of Law 30 of 1975

on the Suez Canal Authority system which calls for

transforming the authority into an independent

fund.


January 2023

13

In Brief Egypt

Egypt’s Central Bank raises interest rates 3% during final meeting in 2022

The Monetary Policy Committee (MPC) decided to

raise the Central Bank of Egypt’s (CBE) interest rates

by 300 basis points, or 3%, during its final meeting of

2022.

The overnight deposit rate, overnight lending rate,

and the rate of the main operation were raised to

16.25%, 17.25%, and 16.75%, respectively. The discount

rate was also raised to 16.75%.

The MPC’s decision is an attempt to contain the

inflationary pressures and to steer annual headline

inflation rates towards upcoming targeted levels.

The annual headline urban inflation continued to

accelerate further during Q4 of 2022, reaching 18.7% in

November 2022, its highest rate since December 2017.

“Similarly, annual core inflation continued its upward

trend that started over a year ago, recording 21.5% in

November 2022, its highest rate since November 2017,”

the MPC added.

Egypt increases minimum

wage for workers in private

sector to EGP 2,700

The National Wages Council approved to

increase the minimum wage for workers in

the Egyptian private sector from EGP 2,400

to EGP 2,700, as of January 1, 2023.

The Council also signed off on the

periodic annual bonus for the private

sector, which should not be less than 3% of

the insurance subscription wage stipulated

in the Social Insurance and Pensions Law,

with a minimum of EGP 100. The bonus

will go into effect in 2023.

Minister of Planning Hala El-Said, who

headed the Council’s meeting, stressed

that the current crises in the framework of

geopolitical challenges affect the economy

in all countries of the world, including

Egypt, pointing to the important role

played by the federations of the various

chambers in cooperation with the National

Wages Council in reaching a consensus on

the minimum wage despite the exceptional

circumstances the country is going through.

El-Said referred to the state’s efforts

to strike a balance between preserving

Egyptian labor and economic entities, and

setting an appropriate minimum wage.

Trade exchange between Egypt and USA hits $7.3B in 9 months

Trade exchange between Egypt and the United

States increased 13.4% on an annual basis, during the

first 9 months of 2022, the Central Agency for Public

Mobilization and Statistics (CAPMAS) revealed. Trade

exchange between Egypt and the United States rose to

$7.3 billion during the period from January to the end

of September 2022, compared to $6.5 billion during the

same period in 2021.

Egypt’s exports to the United States amounted to $1.8

billion during the first 9 months of 2022, compared to

$1.9 billion during the same period in 2021, with a slight

decrease of 1.7%.

Egypt’s imports from the United States recorded $5.5

billion during the first 9 months of 2022, compared to

$4.6 billion during the same period in 2021, an increase

of 19.5%.

January 2023


In Brief Egypt

Egypt’s liquefied natural gas exports register 4.86M tons in Jan-

Sept 2022: IDSC

Egypt’s exports of liquefied natural gas registered 4.86

million tons in the first nine months of 2022, compared

to 4.35 million tons during the same period in the

previous year, the Cabinet’s Information and Decision

Support Center (IDSC) announced. In an infographic,

the IDSC highlighted that Egypt’s liquefied natural gas

exports rose 35.7% year-on-year in the second quarter

of 2022, recording 1.9 million tons.

Turkey topped the list of countries importing Egypt’s

liquefied natural gas as it bought 22% of the total

exports, followed by Spain (13%) and South Korea

(10%).

Egypt’s production of gas doubles in 8 years

A report submitted by Minister

of Petroleum and Mineral

Resources Tarek el-Molla to the

House of Representatives’ Energy

and Environment Committee

indicated that Egypt’s production

of natural gas doubled between

2014 and 2022. The report

highlighted that Egypt’s imports

of gas between April 2015 and

September 2018 recorded EGP127

billion. However, the country was

able to achieve self-sufficiency later

in 2018 when production rose

to 6.8 billion cubic feet per day.

Further, the exports of natural gas

and liquefied natural gas (LNA)

recorded $7.8 billion in the first 10

months of 2022.


January 2023

15

In Brief Egypt

Egypt’s sales of gold, silver in 8 years worth $5.3B

The Ministry of Petroleum and

Mineral Resources revealed that the

sales of gold and silver recorded $5.3

billion between 2014 and 2022.

Australian company Centamin, which

is operating the Sukari gold mine

in Egypt, announced an increase in

Sukari gold mine reserves of about 1.3

million ounces, which represents the

largest increase in reserves in 10 years.

The company added, in a statement

published on its website, that the

growth of the mine reserves represents

an increase of 13% in proven and

probable mine reserves, to reach 11.11

million ounces at the end of June 2022,

compared to 9.81 million ounces at the

end of June 2021.

Since the start of production in 2009,

the Sukari mine has produced more

than 5 million ounces of gold, and today

the expected life of the mine is 14 years.

Egypt’s production

of gas doubles

in 8 years

A report submitted by

Minister of Petroleum

and Mineral Resources

Tarek el-Molla to the

House of Representatives’

Energy and Environment

Committee indicated

that Egypt’s production

of natural gas doubled

between 2014 and 2022.

The report highlighted

that Egypt’s imports of gas

between April 2015 and

September 2018 recorded

EGP127 billion. However,

the country was able to

achieve self-sufficiency later

in 2018 when production

rose to 6.8 billion cubic

feet per day. Further, the

exports of natural gas and

liquefied natural gas (LNA)

recorded $7.8 billion in the

first 10 months of 2022.

IMF approves $3B extended credit facility for Egypt

The Executive Board of the International Monetary Fund (IMF) approved the

extended credit facility worth $3 billion for Egypt. The IMF noted that $347 million

will be disbursed immediately to Egypt, which will help meet the needs of the

balance of payments and support the budget.

Egypt had reached an agreement with the IMF at the expert level in October,

allowing the country to obtain an extended credit facility worth $3 billion, provided

that this agreement is presented to the Board of Directors of the fund during

December 2022 for approval.

The agreement program, which extends for four years, also allows Egypt to obtain

additional financing of $1 billion through the IMF’s newly established “Resilience

and Sustainability Fund,” and an additional external financing package amounting

to about $5 billion provided by several international and regional financing

institutions.

January 2023


In Brief Egypt


January 2023

17

In Brief Egypt

CBE extends 2 initiatives in support of tourism sector

The Central Bank of Egypt has extended until March

2023 two initiatives supporting companies working in

the tourism sector that were initially set to expire at the

end of this year.The CBE made the announcement in a

circular sent to all banks operating in the local market.

The first initiative allows tourism companies to

obtain loans and stipulates that the banks accept the

beneficiaries’ requests to delay dues repayment to the

banks.

Egypt’s Central Bank

sets new targets for

inflation rates

The Central Bank of Egypt

(CBE) maintained the targeted

inflation rates at an average level

of 7% (±2%) during the fourth

quarter of 2024.

The CBE set an average rate

of 5% (±2%) for the targeted

inflation rates during the fourth

quarter of 2026.

This came with the CBE’s

decision to raise its interest

rates by 300 basis points, or 3%,

during its last meeting in 2022.

The CBE also extended a second initiative meant to

provide retail loans to the sector’s workers.

During the three-month period, the banks will be

required to carry forward the dues on the initiative’s

beneficiaries, particularly for loans obtained by workers

for consumption and personal housing.

This action will benefit only those who were punctual

in repayments according to their financial standing by

the end of September 2022, according to the circular.

Egypt’s Central Bank issues new instructions to

protect confidentiality of customer statements

The Central Bank of Egypt (CBE) issued new instructions to

protect the rights of customers and to work on establishing the

appropriate mechanism for sending their account statements.

In a new periodic letter to the banking sector, the CBE

stated that this comes as a continuation of the Central Bank’s

efforts to protect the rights of bank customers and to set up an

appropriate mechanism for sending their account statements,

whether on paper or via electronic channels, to ensure the

protection of their data and maintain its confidentiality.

It also comes in light of the trend towards promoting the

principle of sustainability by working to avoid the negative

environmental impacts resulting from the bank’s internal

activities, including stimulating electronic communication

and replacing it with the use of paper.

“The bank must send account statements to customers

every 3 months at most,” it added.

The CBE indicated that the bank should be responsible in

all cases for the delay in delivering account statements, as well

as for violating the principles of protecting the confidentiality

of customer data.

Egypt’s Central Bank cancels letter

of credit requirement for imports

The Central Bank of Egypt (CBE) announced

canceling the letter of credit (LC) system as a

requirement for imports.

The CBE said in a statement that it decided to

restore the documentary collections system for

imported goods.

The decision to enforce the LCs system, effective

since March, had required Egyptian banks to

accept only LCs for imports in a bid to curb dollar

outflows from the country.

The LCs require transactions to take place

between two banks at a higher cost and longer

time with payments taking place in advance. The

documentary collections system, on the other

side, allows direct transactions between importers

and exporters with the bank only acting as an

intermediary.

January 2023


Ever Wonder Why These

Particular Videos or Content

Opinion

Show Up in Your “TikTok For You

Feeds?” Here Are The Answers

TikTok unveils a ground-breaking feature/tool to give content

suggested in “For You feeds” more context.

It has always been a frequently asked

question among users on all mediasharing

platforms, “Why does this specific

type of content

appear in my feed?” And

because TikTok has always

been a trendsetter by nature

and a user-driven platform,

the platform made the decision

to end 2022 by empowering

viewers with effective

tools to customize their experience

through releasing

a new tool called “Why this

Video” in an effort to help

its community understand

their For You feed and add

more transparency and understanding

to the content

recommended for them.

So whether you’re a parent

who needs to understand the

rationale behind the videos

that frequently pops-up on

your child’s feed! A curious

teenager who wants to keep

tabs on his favorite content

creators? a business owner

who needs to regularly be

updated on the latest trends

for future business opportunities,

or just a someone

who is interested in digging

deeply into “what is happening” in their area!

TikTok is empowering you with new effective

tool to be more in control of your experience.

Simply put, by just clicking on the newly

added feature by TikTok “Why This Video”’

the platform’s community now has the ability

to customize the content that

frequently appears to them

based on four easy guidelines:

their interactions’ such

as content they watch, like or

share, comments they post,

or their searches. The suggested

accounts for them or

the accounts they follow, and

their region’s most popular

content or recently posted

content.

This is done through three

simple steps as follows:

• In your For You feed, tap

on the share panel.

• Then, tap the question

mark icon called “Why this

video”

• From there, you can see

reasons why a particular video

was recommended to you.

The fact that TikTok is

now offering its users a key

to the platform’s “kitchen

door,” where users are given

a few simplea reasons that

make it easier for them to

understand the technical

models that control the recommendation

system of their video content,

suggests that this new feature could be a gamechanger.


January 2023

19

Opinion

It’s Time to Alleviate

the Anxiety Around

EVs to Accelerate the

Auto Industry’s Move

to Electrification

By Ankush Arora, CEO of Al Mansour

Automotive

Volatile prices of fuel and gas are hurting

consumers and businesses, and

while we can look at this difficult time

as simply that — difficult — we can

also look at it as a turning point for clean energy

and an opportunity for the accelerated

adoption of electric vehicles (EVs) and EV culture,

as well as to fast-track the electrification of

Egypt’s mobility sector as a whole.

At Mansour Automotive, we’re big advocates

of moving towards the electrification of the industry,

and we see real genuine consumer interest

in EVs in the local market. Yet, consumers’

reservations about purchasing EVs and going

electric are still prevalent.

As with any major advances or changes to a

nation’s lifestyle, the fear of the unknown – as

with only 380 EVs registered in February 2022 according

to a report by Egyptian Group for Compulsory

Vehicle Insurance, many Egyptians have

never driven nor even seen an EV – has led to a

lot of uncertainty and anxiety.

However, it is important to note that people’s

hesitancy around electric vehicles is multifaceted,

and in order to further strengthen

Egypt’s EV revolution and boost the utilization

of EVs for the average consumer, there

are vital elements and misconceptions that

must be dealt with.

Currently, the biggest concern among the

EV-curious is charging convenience, which has

somewhat skewed their decision-making due to

range anxiety — the idea that EV batteries will

not last long enough between the occasional

EV-charging station and are unable to take long

journeys. In truth, the latest advances in battery

technology have actually extended their range

to more than 300km, making the true challenge

the development and expansion of sufficient EVcharging

station infrastructure.

For consumers to switch to EVs, they must

have the confidence and knowledge that they

will run into a charging station as often as they

would with a traditional gas station.

Egypt’s preparations for the transition to e-

mobility have seen EV-charging stations grow

exponentially in just a few years, with EV charging

stations to reach 3,000 by the end of 2023,

and, as part of its electrification strategy, Egypt is

also aiming to produce the first electric vehicle

by next year.

From a financial perspective, consumers tend

to believe that there is a large trade-off between

saving the environment and saving money, particularly

within the current business climate as

even traditional auto sales have plummeted, but

EVs come with great savings in operation and

fuel costs.

This will become even more prevalent as the

20 January 2023


Opinion

government accelerates its strategy to increase

locally produced green energy — with the expectation

of lowering energy prices — with international

studies revealing that even with rising

electricity and energy prices, EVs remain the

most cost-effective choice over time.

On that note, we must continue to encourage

the government to develop more incentives and

financial schemes to support Egypt’s EV revolution

by, for example, subsidizing or standardizing

the sales of EVs — for both the average consumer

and to businesses.

Electrification will play an important role in

transforming the mobility industry and reducing

the burden of rising fuel prices on the average

citizen. To accelerate the widespread use

of e-mobility and EVs, launching new EVs into

the market is a vital step as well as alleviating the

anxiety around EVs.

In the next three years Mansour Automotive

plans to locally assemble/manufacture affordable

EV in Egypt. We also introduced high-end

EVs to Egypt during COP27, in which Mansour

was the exclusive mobility principal partner and

provided 150 EVs — including electric Cadillacs

which will be available in Egypt by the end

of next year — for the conference as part of its

agenda to reduce the event’s carbon emission.

There is no way around stating that the transportation

sector needs to build its capacities to

transition to electric modes of transport, particularly

as the global energy crisis and inflationary

pressures have led to skyrocketing prices of traditional

fuel. However, we feel that this transition

will enable Egyptians to save money, protect the

environment, and progress as a nation.

www.BusinessTodayEgypt.com December 2022

21

News in Focus

Lifting Restrictions

on Imports

Egypt’s Central Bank cancels working with Letter of Credit system.

By Hanan Mohamed

The Central Bank of Egypt (CBE)

decided, at the end of December

2022, to cancel working with Letter

of Credit (L/C) and return to work

with “collection documents.”

L/Cs, also known as Documentary Credit

(D/C) is a method of payment where the buyer’s

bank guarantees payment to the seller on

the condition that the seller has to fulfill the

terms specified in the L/C.

In documentary credits, the transaction is

between the importers’ and exporters’ banks,

which are key players in the process, while the

dealing in collection documents is between

the importer and exporter directly, where the

role of the bank is only as an intermediary, and

documentary credits require larger amounts,

and the process takes longer compared to collection

documents.

In addition, it requires more complex procedures

than the collection documents in import

operations, foremost of which is the bank’s

commitment to procure the currency with the

importer depositing an amount corresponding

to the full value of the imported shipment.

The decision to enforce the L/C system, effective

since March, had required Egyptian

banks to accept only L/Cs for imports in a bid

22 January 2023


News in Focus

to curb dollar outflows from the country.

The CBE’s spring decision to oblige banks to

deal with L/Cs was blamed for causing Egyptian

ports to be full of stranded goods worth

billions of dollars.

As a result, the Egyptian government was unable

to provide the dollars needed for import

operations during the past few months, which

led to the goods remaining in the ports, as importers

could not get them through the port

customs gates except after transferring the

value of imports to the exporter in addition to

paying the freight cost in foreign currencies.

Furthermore, the importers had to pay the

rent for the spaces their goods occupy in the

port, but these are paid in Egyptian pounds.

A Crisis Breakthrough

A periodic book issued by the CBE said that

it was decided to cancel the work of the periodic

book issued on February 13, 2022 and allow

the acceptance of collection documents to

carry out all import operations.

It explained that, with reference to the circular

issued on February 13 2022, it would stop

dealing with collection documents, and to only

work with L/Cs when carrying out import operations

and exceptions from the subsequent

decision, as well as the circular dated October

27, 2022, to increase the value of shipments


23

News in Focus

excluded from the decision referred to above

from $5,000 or the equivalent in other currencies

to $500,000 or the equivalent in other currencies.

Cancellation of the L/C

In February, the Central Bank had decided

to stop dealing with collection documents in

the implementation of all import operations

and to only work with documentary credits, as

of this date, with the exception of branches of

foreign companies and their subsidiaries, and

to allow banks to accept collection documents

received for goods that were already shipped

before the issuance of this decision. This is to

govern the import process and activate the preregistration

system for shipments.

In October, the Monetary Policy Committee

(MPC) of the Central Bank said that the bank

would gradually cancel the instructions issued

on February 13, 2022 regarding the use of the

L/Cs in import financing operations until the

completion of their full cancellation in December.

The MPC stated that this is an incentive to

support economic activity in the medium term,

and the CBE will also work to build and develop

the financial derivatives market with the

aim of deepening the foreign exchange market

and raising liquidity levels in foreign currency.

Egypt’s Prime Minister Mostafa Madbouli

confirmed at the beginning of December that

the government, with all its agencies, is working

in harmony to solve the crises facing Egyptian

industries, stressing that in cooperation with

the Central Bank, they will finish the problems

of documentary credits within two months.

He pointed out that the Central Bank raised

the allowed number of shipments excluded

from documentary credits from $5,000 to

$500,000, which has created a breakthrough,

but there is still a list of commodities that they

are working on gradually, and all problems of

documentary credits will be completed within

two months.

A Welcome Decision

Director of the Cairo Center for Economic

Studies Abdel Moneim El-Sayed praised the

CBE’s decision regarding the cancellation of

L/Cs, and the return of work with collection

documents to implement import operations.

In a TV interview, El-Sayed explained that

the cancellation of the documentary credits

was a requirement of all investors, especially

the owners of factories and companies in the

previous period.

24 January 2023



25

News in Focus

He added that there is a positive reaction

from all investors regarding the return of work

with collection documents to carry out import

operations, especially since the decision leads

to no pressure on the foreign currency, and

the Central Bank’s decision will not put pressure

on importers, especially in terms of saving

dollars.

“The Central Bank’s decision will relax the

market and provide goods without pressure

on the ports crowded with goods,” he stated,

praising the timing of the decision, especially

before the start of the month of Ramadan.

Deputy of the Industry Committee in the

House of Representatives Mohamed el-Sallab

said that the Central Bank’s decision to cancel

L/Cs will open the door to the return of

production again and increase factories’ ability

to provide production requirements and

intermediate goods in an easier manner and at

less cost. Thus, prices will gradually return to

stability.

He added that it will address what sectors,

especially the industry, have been exposed to,

from reducing their ability to import in light

of the banks’ delay in opening letters of credit,

and the exposure of factories and importers

to financial problems that threatened production.

Al-Sallab stressed the importance of facilitating

import procedures, especially since production

requirements and intermediate goods

represent about 65% of imports, indicating

that placing any obstacles to the import movement

will directly affect the industry and its

ability to provide goods for the local market or

export, and thus negatively affect dollar flows

achieved through exports.

Member of Parliament Mahmoud Essam described

the Central Bank’s decision to cancel

the documentary credits system and return to

collection documents again, as “saving the industry.”

He said that the industrial sector was facing

difficulties even after approving exceptions for

the industry from the previous decision. There

were major obstacles in implementation, which

caused factories to be unable to provide production

requirements and reduce production

rates for factories that continued to operate

with a lower production capacity, especially

small ones that found importing their own

supplies difficult and which were forced to resort

to buying from importers at a time when

the documentary credits system for importers

stopped.

He stressed that the decision to cancel the

documentary credits is expected to result in

the stability of commodity prices, in light of

raising the factories’ ability to provide their

requirements, increasing the supply of goods,

and increasing the ability to export.

Goods’ Release from Ports

Egyptian ports have witnessed an accumulation

of goods worth about $14 billion since the

start of the crisis, and the volume of goods remaining

in Egyptian ports as of December 25 is

worth about $9.5 billion.

According to official statements, there is a

plan to release goods worth $4.5 billion before

the start of the month of Ramadan, in order to

provide the producers’ needs for production

requirements, in addition to providing goods

before the month, which annually witnesses

an increase in the consumption rates of many

products.

In January Madbouli said that goods worth

$6.25 were released from the Egyptian ports

during December 2022, including $1.236 billion

during the last week of the month.

During a press conference held in the port of

Alexandria, the Prime Minister added that the

government has drawn up a plan with the Central

Bank to pay off arrears of customs releases,

pointing out that its implementation has already

begun. “We are committed to announcing

weekly the volume of goods that come out,

with priority going to the exit of food and food

processing goods,” he stated.

He also announced the government has a

plan to provide foreign exchange resources

26 January 2023


News in Focus

until the end of June 2023.

Madbouli explained that the goal during

the next few weeks is to get out of “this crisis,”

adding: “We reassure manufacturers and suppliers

of all sectors of the country in order to

complete the large movement of goods exit

and ensure that the industry returns to its full

capacity.”

Madbouli had said earlier that the priority

in releasing goods from the ports would be for

food commodities, food manufacturing components,

medicines, production requirements

and factories.

Goods’ Release Paves the Way for a New Depreciation

of the Exchange Rate

Head of the International Monetary Fund’s

mission to Egypt Vladkova Hollar told Reuters

that the Central Bank had not intervened in

the exchange rate by injecting reserves into the

foreign exchange market since Egypt and that

the IMF had reached an expert-level agreement

in October. “But the late imports are not

released.”

“After the release of the goods, we expect to

see a daily change in the exchange rate similar

to the changes we see in exchange systems that

witness real currency price liberalization,” Hollar

stated.

She added that the demand for the dollar

may decrease due to the decline of the pound.

After announcing that an agreement had

been reached at the expert level regarding

the extended fund facility in October, Egypt

allowed a significant decline in the Egyptian

pound’s exchange rate from EGP 19.7/$ to

EGP 24.7/$.

Egypt had reached an agreement with the

IMF at the expert level in October, allowing

the country to obtain an extended credit facility

worth $3 billion, which was approved in December

by the Board of Directors of the fund.

The agreement program, which extends for

four years, also allows Egypt to obtain additional

financing of $1 billion through the IMF’s

newly established “Resilience and Sustainability

Fund” and an additional external financing

package amounting to about $5 billion from

several international and regional financing

institutions.


27

‘Garden Lakes’ Doors are Officially

Open in West Cairo By Hyde Park

Hyde Park Developments, the leading Real estate giant,

hosted a major event in the heart of 6 October

City to introduce and set forth their latest project

‘Garden Lakes’ in Hyde Park West, where they gave

their guests a sneak peek at ‘Garden Lakes’ and what to expect

from this new project, set to be the new talk of the town, and the

place to call your own.

The successful inauguration of “Garden Lakes” comprised a

top-class ceremony featuring performances by DJ Rodge, Kult

Bierut Shows Direction, and DJ ZAWZAW – George Soussou.

The event was attended by many celebrities, public figures, and

VIPs such as Anas Bukhash, Tara Emad, Huda El Moufti and

included multiple activities.

The event also displayed the wide and open spaces of a

‘Green Spine and Scenic Lakes through a collected guest journey

inspired by the Garden Lakes elements. Leveraging on the

unprecedented tranquility and stillness offered by the project,

Garden Lakes is eminent as the best place to relax and unwind

in its idyllic greenery atmosphere away from the noise of the

city.

Garden Lakes is a matchless project located in west Cairo; it

encompasses a variety of housing units starting from 104 sqm.

The project will also include many activities and happenings

for all its residents to enjoy, including clubhouses, swimming

pools, kids’ zone, social activities area, cycling and jogging

tracks, outdoor activities capacities, reading and recreational

areas, and co-working spaces, spacious gardens, a service area,

as well as an underground car park.

The project will be launched in West Cairo, opposite to

Tawny project, and spans over an area of 69 feddans, making

it close to all services in that area. One of the largest scheme

and design companies designed Garden Lakes, Eklego Design,

which added a modern and unique architectural touch to the

units and gave the project a more contemporary look.

Face of Business

Revolutionizing

the Paint

Industry

Jazeera Paints to bring a new splash of

color to the local market.

Determined to shake up the Egyptian

paint market, pioneering Saudi Arabian

paint manufacturer Jazeera Paints is

seeking to position itself as Egypt’s new

leading paints, colors, and construction solution as

it expands its local portfolio.

Business Today Egypt sat down with Abdullah Al-

Romaih, CEO of Jazeera Paints, to discuss their expanding

portfolio in Egypt, latest investments and

innovations, and expectations for the coming year.

30 January 2023

Face of Business

January 2023

31

Face of Business

What led to the decision to expand into the Egyptian

market? And why enter a new market during

such a globally difficult economic period?

In order to provide a more comprehensive answer

to this question, different aspects and pillars

must be taken into consideration and tackled

to cover different standpoints.

For instance, Egypt is famous for the impenetrable

economic shield it offers to its foreign

investors, as evidenced by the country’s economic

reform policies, which have experienced

tremendous growth in the previous fiscal years.

However, according to Egypt’s General Authority

for Investment and Free Zones, the rate

of GDP growth during the fiscal year 2021/2022

was about 6.6%, despite the significant difficulties

that all business entities worldwide faced because

of the negative effects of the Coronavirus

and the war in Russia.

In addition, a very appealing economic factor

that sets Egypt apart from other global markets

and encourages foreign investors to invest there

is its expanding population, which, according to

Egypt’s CAPMAS, has grown to more than 1.4

million people.

This enormous population represents a diverse

pool of target consumers for investors with

a wide range of interests and preferences as well

as significant purchasing power, providing us

with a tremendous opportunity to develop and

grow our businesses.

It is about time for a pioneering paint manufacturer

with more than 40 years of experience

to take advantage of the golden opportunity that

the Egyptian market presents, and spread our

wings with EGP 1.2 billion worth of investments

to operate in 400 stores across Egypt, with the capacity

of a 400-strong task force during the new

year.

What can we expect from your entry into the local

market in the short and medium term?

Both our short-term and long-term goals are

all about making a remarkable footprint in the

Egyptian market and since it is known that the

right start gets you ahead of the game, we decided

to dive into the Egyptian market with full

power!

We’re starting by dedicating a fully equipped

vehicle with all of the cutting-edge techniques

to tour Egypt and train employees, enhancing

their professional abilities by exposing them to

the company’s latest technologies and products,

in order to invest in their employees and keep

32 January 2023

Face of Business

them up to date with the latest trends and innovations

in the world of paint.

The Jazeera Paints Factory in Egypt was established

in 2020 at the 10th of Ramadan City, acting

as a major industrial platform supplied with

the highest and most advanced equipment and

techniques. The factory is essentially split into

five production units; the first production unit

is mainly for structural paints focusing on primers,

pastes, and all types of interiors, exterior and

spray paints. The second production unit focuses

on industrial paints and insulating paint. The

other three production units will join the force

in the upcoming year.

The company also has a team in place for logistics,

which is in charge of making sure that all

products are stored securely in warehouses using

well-planned storage techniques and cuttingedge

transportation techniques to move products

from warehouses to distribution trucks, ship

the products, and sell them in 400 stores and

showrooms throughout Egypt.

In a nutshell, with more than 2,000 highly

skilled workers putting in tireless work in every

department, our short-term goal is to establish

Jazeera Paints as a brand that consumers can

rely on for delivery, innovation, and exceptional

quality.

In terms of long-term goals, Jazeera Paints

hopes to begin branching out into new markets

by exporting products to more African countries

by 2024.

Why should Egyptian consumers choose Jazeera

Paints?

Quality, safety, and creativity are what sets us

apart! Our goal goes beyond offering a highquality

product with a wide range of colors;

instead, we aspire to be the final touch that

breathes life into any inanimate object.

Jazeera Paints dedicates all of its resources to

keeping innovation as an integral product value,

as evident in the company’s latest product Mini

Paint, which is a creative mini-product that helps

consumers test and choose colors within the

comfort of their homes.

In addition to providing products that meet

the highest international quality standards and

environmental sustainability policies, the company

also provides a one-of-a-kind shopping

experience through a website and app that uses

Artificial Intelligence (AI) and Augmented Reality

(AR) tools to expose users to a wide variety of

color options and construction solutions that are

unattainable in showrooms. All of this will create

a distinctive selling point for consumers and a

significant footprint in the Egyptian market.

January 2023

33

Face of Business

Today’s consumers expect a digital and easy-touse

experience when shopping. How would that

translate into the industries of paint and construction

solutions?

Proudly, Jazeera Paints has carved an unparalleled

digital footprint in the industries of paint

and construction solutions by designing and developing

the first website and app in the Middle

East dedicated to displaying and selling paints

and construction solutions.

We are fully aware that consumers are now

seeking a seamless, effortless, timeless, and onestop

shopping experience; accordingly, we introduced

a game-changing app and website that

has transformed online shoppers’ experiences by

exposing them to a wide variety of color options

and construction solutions that are unattainable

in showrooms.

Since the technologies embedded in the

Jazeera Paints app are unmatched by any other

paint industry app, we introduced a game-changing

experience with this innovation that affected

not only the paints industry but all other industries

that are consumer-customization driven.

It uses AI and AR to provide Arab consumers

with a unique shopping experience. The company

at large dedicates all of its resources to keeping

innovation as an integral product value. In addi-

34 January 2023

Face of Business

tion to our latest product Mini Paint that we previously

explained, the company also showcases our

innovation through Novel and Notes Clear.

Consumers have also grown to value sustainable

products or those made with sustainability in

mind. Could you tell us a bit about the company’s

sustainability efforts, if any?

Every now and then, the world witnesses paradigm

shifts that every business entity, regardless of

the industry or sector it operates in, must comply

with and adapt to.

A few years ago, we saw the beginning of the

digital transformation era sweeping the globe,

and as a result, all business organizations began

incorporating digital transformation methods,

tools, and practices into their business operations.

Today, the current new shift is all about sustainability

and how it is affecting the lives of every

single living creature on the planet. As a result,

most business entities are constantly striving to

determine the best strategy to apply sustainability

to their business operations.

For Jazeera Paints, the narrative is different

because we have always taken sustainability practices

into our own hands. In fact, our company

is regarded as the first company in the Arabicspeaking

world to incorporate environmental

sustainability measures into their operations and

production to ensure that our products are designed

and manufactured in accordance with

safety and health regulations

Now, more than 35 eco-friendly product groups

— that have been approved by international organizations

specializing in green building systems

— are currently being pumped into the company’s

manufacturing lines. Additionally, the factory

has a treatment station for the water used in the

manufacturing process to ensure that no industrial

pollutants end up in the sewage.

What are the company’s long-term aspirations for

the country and the region?

By providing distinctive premium products, we

hope to revolutionize the Egyptian paint market.

This will open up new opportunities for us to

grow and expand our company locally as well as

export goods to African countries, which is a new

market that Jazeera Paints intends to enter.

Jazeera Paints has always spoken in numbers!

In the past 42 years, we established two factories

and eight production units across the region with

a production capacity of 400,000 tons annually

of diverse products with 650 showrooms across

Saudi Arabia and beyond.

For Egypt, by 2023, we aim to have over 300

products in the market within 400 stores to reach

more clients.

January 2023

35

Face of Business

Creating

Meaningful and

Impactful Brand

Stories

Defining storytelling, pitching, and taking the misses to

build hits with Coca-Cola’s Islam ElDessouky.


Storytelling is a fundamental human

experience that unites people — creating

strong and influential connections,

driving deeper engagement and associations

with the brand — by simply applying

the basic elements of storytelling to advertising

copy or campaigns.

And although the leading creatives of the

world’s biggest brands continue to highlight

storytelling’s benefits; creativity and storytelling

still do not have a consistent definition across

agencies, businesses, and sectors.

“[T]he misconception about storytelling is

that storytelling is the strategy… it is not a strategy;

it is a vehicle to deliver the strategy,” says

Islam ElDessouky, The Coca-Cola Company’s

Global Creative Strategy Director for Hydration,

Sports, Tea, and Coffee.

“We need to stop this very exhaustive loop

of trying to come up with the cleverest ads because

it is labeled creative versus telling a story

that is meaningful,” he adds. We sit down with

ElDessouky to discuss storytelling, creativity,

the pitching system, and navigating collaborations

and dealing with mistakes with one of the

world’s largest brands.

Your talk at this year’s Creative Industry Summit

(CIS), Creating Meaningful Brand Stories,

had a definite impact on the audience. Could

you share with us a few of the important points

that you spoke about?

36 January 2023


Face of Business

When we say “creating meaningful brands

through stories,” it’s all about the value; and

this value can be financial and non-financial.

The brand is pretty much a promise [to the

consumer], and the main reason why a value of

a brand could go so high is because it is driving

value for a lot of key stakeholders and shareholders.

When we ask “what really builds the brand

in a meaningful way,” one very big pillar is

storytelling… because storytelling is all about

people, so [that] people can create associations

with those brands.

They see the brand as another human disguised

within a brand that connects with them,

and so, here, there are a lot of learnings that we

wanted to share; such as that storytelling, first

of all, is a commitment. It’s not a campaign, it is

not a formula. It is a commitment.

Lastly, stories are about people. They’re not

about products, so we cannot simply go and say,

“listen, here is the bottle and bubbles and all.

Yeah, that’s an ad. And it’s fine to do that as

well, because you need to promote the product

and what it does and the benefits it gives to people.

However, for you to create higher associations,

you need stories.

I’ve shared some key principles of how you

can drive successful storytelling, [but another]

is to take risks, because you can’t please everybody.

[The best examples] are artists.

If you [listen] musicians such as Duke Ellington

who had a phenomenal quote about

it or Dave Chappelle, who is a very polarizing


37

Face of Business

I believe

that risk is

very much

a mindset

in the

marketing

industry

today.

People

want to do

whatever

has

worked in

the past,

but that is

counterintuitive

to

progress.

comedian, they will tell you that the reason why

they have such a large amount of advocacy is

because they are taking risks and the reason

why they take risks is because they connect with

some people more than others.

When you try to please everybody, it goes to

the common denominator. You don’t say much

when you try to do that.

Coca-Cola is well-known for its storytelling,

could you give me an example of something Coca-Cola

did recently that felt very risky on the

creative stage that increased its brand value?

For instance, last year the brand went into

gaming and collaborations, and these are two

territories that we were not necessarily doing a

lot on but I think, now, we’re doing much more

on [these fronts].

Recently, we launched a new flavor with DJ

Marshmello. DJs have a certain genre of music,

so you could be a Coca-Cola fan but that’s not

the music you like, or the flavor is not [to your

taste]. For a brand like Coca-Cola, innovation,

believe it or not, is risky because it is such a big

brand with such a massive and loyal fan base.

Contrary to that, the brand has taken the

other approach, [more like] “[we] are going to

drop a lot of innovations, and at the end of the

day, if it doesn’t work out for whatever reason,

we are going to learn from it and get better.”

I believe that risk is very much a mindset in

the marketing industry today. People want to

do whatever has worked in the past, but that is

counterintuitive to progress.

You cannot progress and make leaps if you

don’t take risks; whether by putting your name

with someone like DJ Marshmello or creating a

flavor that [not all] people will like.

There are always risks when you want to collaborate

and co-create with someone, but we

are taking [a lot] of steps [in filtering the person].

The person needs to fit with the brand,

not to maximize risk but to maximize the association.

What’s your top tip on navigating how to select

collaborators for the brand to ensure that

you’re protecting Coca-Cola and, at the same

time, maximizing the partnership?

The tip I would give is for every marketer to

understand that we are no longer in control of

creativity like we used to be. I know that people

often see creativity [as only] manifesting in advertising,

but creativity is manifested in a lot of

things

It used to be a one-way dialogue; I have a TV

channel, then I’m going to put my ad on it.

Nobody comments, likes, shares, or dislikes. It

used to be very controlled, and the planet was

not included in this conversation. Now it has

gotten democratized with the democratization

of creativity; the planet and the people own it

now, it’s not the brands, the entertainment industry,

or publications, it is now owned by everybody.

Look at all the social media platforms, see

what people are creating as content and how

they amass a lot of followership versus brands

and whatnot. The minute you recognize that

you’re not in control [of creativity], and somebody’s

doing it better than you, you’re going to

be looking forward to collaborating.

[Telling influencers and creators to] talk exactly

as “I direct you to,” that doesn’t work anymore…

The majority of them will not because

their key attribute is their content creation and

authenticity. So, the minute you [let go of] control

is the moment you liberate yourself and really

collaborate. So that would be the only tip I

would share.

Creative strategists and ad-people have been

very vocal about the significance of storytelling

in the past few years; what would you say are

currently the biggest misconceptions still going

around today in this regard?

I believe that the misconception about storytelling

is that storytelling is the strategy. Storytelling

is just one pillar to build your brand.

The brand needs to have a creative strategy,

which will decide how the brand is going to

sound like, where the brand is going to tap into

audiences and consumers, etc.

Storytelling is simply one key pillar in your

marketing mix that really amplifies how you

build the brand. A, it is not a strategy; it is a

vehicle to deliver the strategy. B, a lot of people

treat storytelling as extremely clever advertising,

it shouldn’t be. It could be a story that is

not necessarily unique or innovative, but it’s

extremely relevant because it has people at the

center of it.

We need to stop this very exhaustive loop of

trying to come up with the cleverest ads because

it is labeled creative versus telling a meaningful

story.

It’s well-known that creative strategy heavily affects

business strategy and goals, but with the

increasing number of channels and marketing

tools in the market today, how can businesses

apply creative strategy in driving success across

diverse channels?

Contrary to a lot of people, I think having

38 January 2023


Face of Business

Coca-Cola Marketing Campaign

For Gamers “Real

Magic - One Coke Away

From Each Other”

an abundance of channels is a blessing, it’s not

the opposite. I know this can intimidate and

overwhelm people because [of questions like]

“where do I get resources?” “Where do I get resources

to place my brand in all of these channels?”

In my humble view, everything revolves

around people. Your target audience — you

can call it that, or your tribe or cohort — they

have certain passions and overindulge in certain

channels versus others. For example, I am

what is commonly known globally as a sneakerhead,

which means I love sneakers — I have

probably have a lot more than I should — and

there are certain [channels] I overindulge in,

such as hip-hop and basketball, more than anybody

that is not a sneakerhead.

Sneaker brands, whether Nike, Adidas, Puma

or Reebok, they want to use a channel to talk to

me from an ROI perspective. So, they may think

“we know that sneakerheads are into hip-hop,”

so [they might say] let’s sponsor a program that

shows hip-hop artists, or let’s be in a clip with a

hip-hop star, or let’s get a hip-hop star in our

ad, etc.

[With that] I’ll see the product on a channel

that I’m used to, so the brand is basically catching

the fish where the fish is already going to

instead of trying to invite it to go to the desert.

The question always is, with people, where are

they? Then you can craft your strategy based on

where they are spending more time and where

they are more passionate.

Everybody is in the business of attention now,

including entertainment. Netflix competes

with YouTube over attention, it competes with

brands, competes with books. Everything competes

for attention. People have 24 hours; we

don’t have more. We haven’t been able to crack

the code where we increase the number of


39

Face of Business

Coca-Cola’s campaign celebrating

KSA’s decision to lift its prohibition

on female drivers in 2017

hours per day, so that’s fixed, and everybody’s

trying to get a piece of it.

How can businesses foster and apply creativity

in the workplace?

That’s a big question, and I’ll probably come

short, and I think most people will come short

too because it has a lot of elements into it. But

in my humble view, creativity, first and foremost,

means a solution to a business problem

or a business opportunity.

And secondly, the [company] culture has to

be willing to learn, because nobody can foster

creativity without the acknowledgment that

we’re going to fail more than we’re going to

succeed.

When people asked Michael Jordan, greatest

basketball player of all time, why he was so

great, he said because, “I missed a lot of shots.”

He made a lot of [baskets] but he also missed.

He recognized that “oh, I shot 40,000 times,

out of which I scored 20,000.” People [tend] to

look at the hits and they forget the misses. Businesses

are the same; you’re going to win some

and lose some, so it has to be a mindset first and

foremost.

Third is to have the desire, not just the ability,

the desire to learn from the misses, because we

usually shy away from that.

Let me ask you then while we’re on this, do you

have a mistake or something that did not go

as planned that you learned a lot from when it

comes to your time working at Coca-Cola?

I can start with one that is very dear to my

heart, which is about Sprite. Sprite is a great

brand, and the target is usually teens and

young adults. And during a part of my career

when [targeting] the Gulf countries — [these

countries] didn’t have a lot of the [usual] target

audience living in that demographic — we kept

pushing on global passion points like basketball,

music and whatnot… but these were not

the people drinking Sprite [there].

We kept doing this and pushing for it, but

it didn’t work out. Then we became a global

anomaly, people were saying “oh, Sprite in that

part of the world is not working.” We needed

to understand, so [we asked] who is the biggest

group here that consumes Sprite?

[Turned out, Sprite drinkers] living in these

countries primarily come from India and Pakistan,

and it wasn’t about basketball, it was cricket.

So, we changed everything to target cricket,

and [it grew] like wildfire, doubling business

like no tomorrow, and that is why I say embrace

the misses.

We have that as a company; so, we kept going

for two years and it wasn’t working, but we

learned, and when we learned, we understood

and changed the solution. What we don’t have

[as a company] is the idea of shying away, [we]

accept the misses to guide future success.

I struggled with it personally a lot because I

40 January 2023


Face of Business

love the brand and I love the passion points. I

was like “okay, it’s music and basketball, what’s

not to love?” But, it’s [just that] the people were

different, so that is why you pivot. Once we did,

success came forward.

What is your take on the “traditional” pitch system

and what can both agency and corporate

sides do better to facilitate the process?

This is a difficult question because I think

that the problem is not pitching, but how we go

about pitching and how we can achieve some

sort of informal understanding of how it should

work because every person, every company, and

every agency has their own take.

A pitch is a rallying cry from a company looking

to try outside of its ecosystem to find a better

solution to some of the recurrent problems

that they’re unable to solve, whether it’s a creative

or strategic failure to solve it or a financial

issue.

The ones [typically] struggling are agencies,

more than the companies as they are in a more

advantageous kind of situation; a company

opens a request for pitching and then a lot of

agencies jump on board. It’s the agencies that

struggle with how the process or the lack of a

process affects them.

Some principles that I believe should be

agreed upon is how is a pitch financially [compensated]?

Any company that is invited will

spend numerous hours on developing the

pitch, because that is how the industry functions,

win or lose.

There needs to be some sort of movement

[or protection for] agencies, such as a regulator,

and so if it is not applied, agencies do not

participate in the pitch and so cannot complain

and break the system.

Secondly, what is a pitch and how is it defined?

By the amount of work required, the

amount of effort that goes into the pitch? Is it

owned by the agency in the [event] that they

lose the pitch, or is it owned by the client that

gave the brief that inspired the work? All of

these, in my opinion, are reasons why [pitching]

is broken.

I haven’t been in Egypt for a long time, but I

assume that these are very common symptoms

in a lot of places. I would [say] that what needs

to happen is that agencies will create some sort

of regulator between them that is comprised of

all agencies, and is independent and very transparent.

I [believe] that we will still need pitches because

it gives a great opportunity for companies

and agencies to tap into problems and opportunities

that they can actually create an impact on.

We have that as a company; so, we

kept going for two years and it wasn’t

working, but we learned, and when we

learned, we understood and changed

the solution. What we don’t have [as

a company] is the idea of shying away,

[we] accept the misses to guide future

success.

Coca-Cola’s Limited

Edition flavor with DJ

Marshmello


41

In-Depth

Pathways to Maintain

Egypt’s Attractiveness to

Foreign Direct Investment

With global crises disrupting progress in attracting foreign direct

investment, Egypt needs to seek out dynamic new solutions to

achieve sustainable inflows.

42 January 2023


In-Depth

By Noha El Tawil

Egypt has been working towards the localization of

many industries and turning into a manufacturing

hub that would supply to Africa and the region, leveraging

its unique location. Attracting foreign direct

investment (FDI), is paramount, to bring in not only money but

also new technology. That is in addition to its most important

functions, which are creating employment opportunities and

contributing to the economic growth of the country. However,

global crises are disrupting the progress achieved so far, so solutions

have to be devised.


43

In-Depth

Milestones

According to the World Investment Report by

the United Nations Conference on Trade and

Development (UNCTAD) published in June

2022, Egypt was the second largest recipient of

FDI in Africa in 2021 with $5.1 billion, in spite

of the 12-percent decline.

Former Chairman of the General Authority of

Free Zones and Investment (GAFI) Mohamed

Abdel Wahab stated in December that Egypt

had garnered FDI worth $11.6 billion in nonpetroleum

sectors during FY2021/2022, achieving

a growth of 81.3 percent compared to the

previous fiscal year, and that is the highest in

10 years.

The largest share of FDI (42 percent) is reinvested

earnings, which grew by 11 percent

($525.7 million) to hit $4.9 billion. The second

largest is composed of inflows aimed at founding

new companies in Egypt ($282.2 million)

and expanding existing ones. Those rose by

$2.1 billion to become $3.4 billion, representing

29 percent of total FDI. Sales of companies

and productive assets came third (20 percent)

as they recorded $2.3 billion with a spike of $2.2

billion. As for the fourth and last place (nine

percent), it went to the purchase of real estate

units at $970.3 million with a rise of $353.9 million.

Given that one-fifth of FDI achieved in the

last fiscal year is the outcome of asset sales,

more has to be done to achieve sustainable inflows.

As indicated on GAFI’s official website,

the sectors targeted for FDI are those of real

estate, ICT, mining, education, healthcare, financial

services and insurance, agriculture and

land reclamation, tourism, pharmaceuticals,

food industries, oil and gas, textiles, transport

and logistics, electricity and renewable energy,

retail, and automotive.

The government had already created the

three-month “Golden License,” which is a single

approval to buy/rent land, operate, and manage

projects. The license is offered to investors

implementing projects of priority to the government,

and can be extended for an additional

three months in case of tangible progress.

Most Attractive Sectors for FDI

Economic and Financial Researcher Fathi al-

Gazzar tells Business Today Egypt that the most

attractive sector now in Egypt for FDI is that of

energy due to three main reasons. One is the

ongoing international race to secure energy.

The other is the appeal of the sector to developed

countries. And, the third is the low supply

ensued from the Russia-Ukraine War.

He clarifies that investors would be interested

in both traditional sources of energy and

renewable energy. The interest in renewable

energy in particular stems from the fact that

Europe is undergoing an energy crisis, he says.

In addition, developed states want to expand

developing countries’ reliance on renewable

energy, and hence, save up more natural gas for

themselves, Gazzar adds.

“There is a thirst in the energy sector now,”

the researcher reiterates. On the other hand,

“other sectors are currently much less attractive

because of the currency crisis, while foreign

investors want to repatriate their profits. Also,

direct investment is a long-term one . . . The

problem here in Egypt is that the local market

is not stable on the side of consumers,” Gazzar

points out.

Assistant Professor of Economics at the University

of Beni Suef Mohamed Rashed agrees

that the most attractive sectors are those pertaining

to energy, such as oil and gas exploration,

and renewable energy, like solar power,

wind energy, green hydrogen. Yet, he also sees

potential in the sectors of petrochemicals, food,

and real estate development.

How to Become More Interesting

To attract foreign investments, “we need attractive

investment legislations, economic stability,

and profitability … The Golden License

is useful for a very short period of time, but later

investors will have to deal with a lot of bureaucracy.

Also, the administrative measures a business

will be handling on the long-run must not

be changing at a high frequency. They have to

remain unchanged for a long period of time,”

Gazzar stipulates.

“As for profitability, it is intertwined with the

market dynamics. The decline in the Egyptian

pound’s value is only attractive, if the investor is

sure that the rate is fair, and that it would not

sharply go down anytime soon, as that affects

projections pertaining to costs and revenues,”

Gazzar highlights.

Similarly, Rashed suggests that in order to

ensure the sustainability of FDI flow, a stable

legislative and institutional environment must

be ensured, in addition to sustainability of high

economic growth, decline in inflation, stability

of the foreign exchange market, speed of the

issuance of licenses, and simplification of measures

by abandoning bureaucracy.

FDI and Export

Gazzar says that if an investor builds a plant

in Egypt with the aim of exporting, their main

44 January 2023


In-Depth

market will have to be Africa, because Europe

and the United States are mainly interested in

raw materials. “That is not viable to our economy,

as we want to boost the added value. By contrast,

targeting Africa with semi-finished goods

can be lucrative,” Gazzar explains.

Rashed shares the same point, highlighting

that the trade deals Egypt has, especially

those of the Common Market for Eastern and

Southern Africa (COMESA) and African Continental

Free Trade Area (AfCFTA), are an important

factor in attracting FDI. “That is especially

true of multinationals, which now want to

make up for the weakening of existing supply

chains and that have been proved flawed since

the outbreak of COVID-19. Egypt is one of the

countries that are eyed as a doorway to African

markets, given its location between Europe and

Asia,” Rashed clarifies.

2023

Gazzar anticipates that the “Flight to Quality”

behavior, fear of investing in developing countries,

and recession that began in 2022 will persist

in 2023, and even in 2024, if the intensity of

the war does not ease.

Rashed explains that the high inflation

that occurred in the aftermath of the Russia-

Ukraine War prompted central banks to raise

interest rates, including the Federal Reserve,

which raised the rate to 4.5 percent. “That has

incurred the withdrawal of many direct investments

from developing states, whose currencies

deteriorated because of high inflation,” Rashed

adds. However, he is more optimistic, estimating

that a gradual increase in the flow of FDI

into Egypt may happen in the second half of

2023, showcasing the very high rank the country

enjoys on the continent in terms of attractiveness

to FDI.

With regard to foreign direct investments already

in the market, the economics professor

suggests that they can be encouraged to expand

through the elimination of the malfunction in

the foreign exchange market and the currency

black market. That is in addition to offering tax

discounts, and introducing more free zones,

which grant investors tax and tariff discounts as

long as they export at least 50 percent of production.


45

In-Depth

Adopting Startup

Mentality and Tactics

when Business-Building

Today’s business landscape is no stranger to disruption and

transformation as startups continue to challenge well-established

and deep-rooted companies long after the likes of Amazon and

Uber reinvented and digitized their respective industries.


Upstarts like Amazon and Uber, and others such as Airbnb,

quickly gained a large market share in the retail, taxi cab,

and hospitality industries by providing niche and highly

personalized solutions, encouraging other businesses to

scramble to create and scale similar solutions. And yet, many still trail

behind their younger tech rivals.

46 January 2023


In-Depth

However, innovation is not confined to the

tech realm. Companies and corporations are

capable of, and should be, reinventing themselves

and cultivating innovation to capitalize

on the opportunities and learnings afforded

by these disruptions and launch new offerings

in pace with innovative startups.

New business is good for business

Recently, McKinsey & Company surveyed

more than 1,000 senior executives from every

region and a wide range of sectors, with its results,

unsurprisingly, suggesting that companies

that prioritize new business-building are

above others in terms of revenue growth.

According to the report, eight out of ten

stated that new business-building was a top-five

strategic priority; 46% said it was in their top

three. By 2027, the respondents said they expect

29% of revenue will come from new business,

which was defined as the creation of new

revenues through new products, services, or

businesses based on new capabilities.

The businesses that placed new businessbuilding

as their top-three priority showed accelerated

growth and higher resilience, even

during economic shocks; those surveyed estimated

that new business created in the past

five years accounted for 12% of their revenues

and 21% of their enterprise value.

The management firm revealed that, on average,

respondents have begun to invest 5% of

revenues into new business-building and are

establishing 1.5 new businesses annually.

A separate McKinsey & Company report

published in fall 2022, which conducted an

in-depth study of the growth patterns and performance

of the world’s 5,000 largest public

companies over the past 15 years, reaffirmed

revenue growth’s critical role in driving corporate

performance. An additional five percentage

points of annual revenue correlates with

an extra three to four percentage points of total

shareholder returns (TSR)—the equivalent

of increasing market capitalization by 33-45%

over a decade.


47

In-Depth

With technology lowering the complexity

and cost of logistics, and the internet enabling

faster accessibility to businesses, it’s never been

easier to start and scale a company; companies

can make smaller investments than ever before

to create, measure, and respond to global demand

through new business ventures.

Some companies have turned to startups to

gain insights and understand how they’ve developed

products and services so they too can

create organizations with the ability to drive

new ideas to swift implementation, and to pivot

frequently.

Reinvention and evolution

The art of surviving as a business is adapting

to new circumstances within the company

or the market. Prime examples are Netflix,

which went from DVD rentals to streaming giant

and content creator, and Lego, which has

become a multiplatform franchise with movies

and video games attracting audiences of all

ages after being close to declaring bankruptcy

in the early 2000s. By reinventing themselves,

they have managed to expand their business

ventures, and break into new markets or create

new ones.

The most prevalent factor in many of the

stories is technology; data and technology are

driving business change. Successful businessbuilders

look to integrate new technology, or

create their own systems and software, while

accelerating decision-making by making it autonomous

and accessing external financing

and capital like startups.

In its latest report mentioned above, McKinsey

& Company revealed that the largest portion

of the respondents’ current and future

investments is being directed toward sustainability

and digital technologies such as artificial

intelligence, the Internet of Things, and

augmented reality, displaying the growing

trend of digitizing operations for efficiency

and creating digitally-native solutions.

As a tactic, serial entrepreneurs use the uncertainty

that usually scares off larger public

companies by “hacking” problems through

multiple small and low-risk experiments, de-

48 January 2023


In-Depth

veloping within a fast validation cycle and using

small groups of early beta test users which

would act as early adopters of a larger market

segment.

For established companies, it’s better to consider

these, when using startup tactics and lessons,

as more of an evolutionary step rather

than a revolution. Most are already operating

according to a successful business model and

provide effective products/services to customers;

it is about creating fresh opportunities for

revenue and growth through new market entry,

and unlike startups, companies with a solid

position within their industry face less risk.

Startups born in economic downturns show

the importance of value-added products

Both the local and global economies are

dealing with heightened inflation - creating

the biggest macroeconomic challenge in the

modern era of central banking — with Egypt’s

inflation reaching a five-year high of 18.7% in

November 2022, according to the latest data

by the Central Agency for Public Mobilization

and Statistics.

On top of that, there is a 98% chance of

a global recession as we move into 2023, according

to research firm Ned Davis (NDR) —

NDR’s recession probability reading has only

been this high twice before, in 2008 and 2020

— while the Organization for Economic Cooperation

and Development (OECD) expects

the global economy to avoid a recession next

year.

With this amount of uncertainty, companies

may decide to slow down on new businessbuilding,

however, startups tend to shine during

this time, looking at it as an opportunity to

break into markets with fresh offerings.

Many of today’s biggest disruptors were born

out of recessions and succeeded by providing

clear value to customers, and new twists to classic

industry models.

The Great Recession (2007-2009) witnessed

the creation of Airbnb and Uber, both of which

began as ideas to earn money during a difficult

economic downturn. The biggest takeaway

from their climb to success? Delivering services

and products that create value, whether it is

monetary (Airbnb’s hosts and Uber’s captains)

or convenience for end customers.

Another lesson gleaned is developing a

product/service with a strong focus and differentiation

rather than investing in launching

the new digital marketplace or solution

that combines the best of several competitors’

features and offerings, making it too broad

and difficult to differentiate from others in

the market. Focus on developing a great initial

product with innovative technology at first,

with a list of possible follow-on products that

can be commercialized down the line to stay

ahead of the competition.

Generally, a sustainable competitive advantage

requires value-creating products, processes,

and services that are unmatched by today’s

competitors, and simplifies the customer’s

journey; it is also important to plan content

and new services/products to maintain your

position as you scale.

Startups tend to lean towards a “focusing

on the foundations first, and then optimizing

later” mentality, a mindset that companies

should consider to keep up with the rapidly

changing business landscape and the continued

influx of disruptive startups.

While successful startups’ rapid growth,

scalability, and high adoption rates are great

to look at, keep in mind that these innovative

companies/grown-up startups also run the risk

of being disrupted by a new generation of agile

upstarts that will use the same techniques

and business models to their advantage, emphasizing

that the importance of understanding

the journey to reinvention and innovation

will always be continuous.

Successful business-builders

look to integrate new

technology…while accelerating

decision-making by

making it autonomous

Many of

today’s biggest

disruptors

were

born out of

recessions

and succeeded

by

providing

clear

value to customers,

and

new twists

to classic

industry

models.


49

In-Depth

Coping with Water

Scarcity: Egypt

Takes Alternatives

Seriously

Over the past years, Egypt has put in place strategies to address

water scarcity, investing in non-traditional alternatives including

drainage water treatment plants, the most prominent of which is

the Bahr El-Baqar station mega project.

50 January 2023


In-Depth

By Nourhan Magdi

Egypt is diversifying its efforts to meet

the challenges facing the water sector

to secure water to sustain the rapidly

growing population, especially amid

negative impacts of climate change.

The country has embarked on many major

projects that serve the opened and covered networks

of the republic’s agricultural drainage systems.

Egypt suffers greatly from water scarcity, which

is why the state is making great efforts, grounded

in scientific findings, to face water challenges

resulting from limited water resources. Over

the past years the nation has implemented several

major projects reusing agricultural drainage

with the aim of implementing projects contributing

to agricultural expansion, achieving food

security and mitigating desertification. Among

these projects are the Bahr El-Baqar, al-Hamam

and al-Mahsama wastewater treatment plants.

The Egyptian Ministry of Water Resources

and Irrigation recently completed the construction

of the main Al-Salam wastewater station,

which consists of seven units with a capacity of

11 cubic meters per second. The state-of-the art

facility uses energy-saving equipment and features

an automatic control system in operation,

using high-tech programmed control devices to

ensure the safety of operation of the station’s

equipment

The Al-Salam station is part of the major

Bahr El-Baqar drainage water treatment system,

and raises 5.60 million cubic meters per day to

the treatment plant. The facility was registered

in the Guinness Book of Records as the largest

water treatment plant in the world, producing

2,044,000,000 m³ per year.

Bahr El-Baqar Wastewater Treatment Plant

With a capacity of 64.8 m³ (2,288 ft³) per second,

Bahr El-Baqar treatment plant introduces

a sustainable solution for environmental pollution

recovery and irrigation water source (via

recycling the water of Bahr El-Baqar drain), protecting

the environment and generating enough

water to support the cultivation of 400,000 feddans

in Sinai.

Started in 2019 and inaugurated in September

2021, the EGP 18 billion Bahr El-Baqar wastewater

treatment plant is the largest facility of its

kind in the world, treating around 5 million cubic

meters of water from the Bahr El-Baqar basin

every day. The 155-feddan facility has four treatment

lines, each with the capacity to process 1.25

million cubic meters of water each day.

The plant is located 10 km south of Port Sai’d


51

In-Depth

tunnels in Sinai, 17 km east of Al-Qantara city. It

is considered one of the most important projects

that aim to develop the Sinai Peninsula to leverage

its natural resources. The project will contribute

to the reclamation of 456,000 feddans (or

4,500 m2) by recycling and using agricultural,

industrial and sewage wastewater, which will be

diverted from the western to the eastern banks

under the Suez Canal. Upon treatment, all water

will be dispensed into the Sheikh Jaber’s Canal.

The plant operates through four units of water

treatment, where each unit amounts to a capacity

of 1.4 million cubic meters per day.

The amount of treated water per year reaches

2 billion cubic meters, and the amount of hydrated

sludge per year amounts to 460,000 tons.

The construction of the treatment plant was

carried out by Egypt’s Arab Contractors (Arabco)

and Orascom Construction, after they were

selected by the National Authority for Drinking

Water and Sanitary Drainage through a competitive

bidding process.

52 January 2023


In-Depth

In Numbers: The Bahr El-Baqar Wastewater Treatment Plant

• Two canals: intake canal with a total length of 587 meters within the

borders of the plant, final wastewater treated channel and outlet canal

with a total length of 895 square meters.

• Four main courses of wastewater treatment, which include water

intake pumping building, rapid/slow mixing basins, sedimentation basins,

filters with discs, ozone basins and chloride tanks.

• Two sludge treatment units, where each unit consists of sludge

pumping building, sedimentation basins, mechanical drying buildings,

solar units for sludge drying.

• Sedimentation and services support buildings, consisting of chemical

injection buildings, chloride injection buildings, ozone generation buildings,

supporting generators building, electric boards and transfer buildings,

workshop building, chemical substances storage building, workers/

employees building, mosque and the main administration building.

Inside the Bahr El-Baqar Wastewater Treatment

Plant

The treatment plant’s units are divided into three phases as follows:

Phase 1- Pre-Treatment Phase

• Intake building, that consists of the refineries and intake pumps,

where the coarse and fine refineries operate on removing all small and

large planktons before the water flows down to the following phase of

treatment.

• The intake pumps’ capacity amounts to 1.4 million cubic meters per

day, where every building contains 5 pumps (4 operating and 1 substitute)

with each pump’s capacity reaching 4 cubic meters per second.

Phase 2- Water Treatment Phase

• Water treatment for initial sedimentation is done by adding materials

to adjust pH levels and help in the formation of flocculants and sedimentation

at the bottom of sedimentation basins. For example, sulfuric acid,

sodium hydroxide, ferrous chloride and polymer on sedimentation work

and the formation of large particles from the suspended solids inside the

mixing and settling tanks. These are then moved into the lamella sedimentation

tanks that cover 11, 600 square meters, used in the sedimentation

tanks and pipes technology for a more efficient process.

• Triple disc filters, where 120 filters are used in the project, with a

designed capacity of 1,992 cubic meters per hour per filter. The filtering

surface amounts to 32,800 square meters of fine polyester membrane

and a filter size of 10 microns in order to achieve the highest quality and

standards of purified irrigation water.

Phase 3- Post Treatment Phase

• Includes the water sterilization process by injecting ozone or chlorine.

The sterilization and disinfection of water before entering contact

tanks for purification, in order to control the water’s smell. Ozone,

hence, is injected to eradicate all parasites, bacteria and all harmful

organic substances from the water. In order to reduce chemical oxygen

consumed to reach the desired ratio of outflowing water, sterilization occurs,

followed by the final product being exited to Sheikh Jaber Canal.


53

In-Depth

Understanding Barriers

to Realizing Full Potential

of Egyptian Exports

Egypt aims to attain $100-billion exports.

54 January 2023


In-Depth

Egypt aims to attain $100-billion exports, so as

a first step, it eyes $60 billion by 2025. The value

of exports recorded $45.2 billion in 2021, and is

projected to reach $50 billion in 2022. The top

importer of Egyptian goods in 2021 was the European

Union, as the country’s exports to the bloc

almost doubled to $14.5 billion by 2021, up from

$7.7 billion in 2017. The other major groups are

the G7 ($9.9 billion), ESCWA ($8.9 billion), African

Union (AU) member states ($5.5 billion),

and BRICS ($4.6 billion).

On the bright side, non-petroleum exports

represented 71.5 percent ($32.34 billion), while

petroleum ones were just 28.5 percent ($12.9 billion),

as stated by Prime Minister Mostafa Madbouli

in February. The top non-petroleum exports

are chemicals, construction material, food,

engineering products, agricultural crops, and

ready-made garments.

By Noha El Tawil

Being an export-oriented economy is

essential to ensure the quality of local

products is on par with international

standards, bring in foreign currency,

and create jobs highly needed in an overpopulated

country like Egypt. Boosting exports is

bound to multiple factors that involve the nature

of components, manufacturing processes,

pricing, and import markets.

Size of Egyptian Exports

Markets

Head of the Industrial Development Department

at the Egyptian Industries Federation Basel

Shoirah tells Business Today Egypt that Egyptian

producers should target all markets, and not just

specific ones, as they all have good potential. Another

reason is that Egypt enjoys a distinguished

location, and free trade agreements with many

countries and blocs.

Shoirah maintains that to achieve such an end,

producers have to enhance the quality and price.

Yet, the businessman explained that the issue with

offering competitive prices is the high costs of energy,

and inputs, which are often imported.

Head of the Egyptian Forum for Economic

Studies Rashad Abdo agreed on the same point

of striking a balance between price and quality.

He tells Business Today Egypt that to enter new

markets and increase Egypt’s sales, the products

have to be characterized by good quality, and offered

at reasonable prices. “Price and quality are

the main determinants of importers’ decision to

buy from us,” Abdo said.

Products

Head of the Industrial Development Department

at the Egyptian Industries Federation Basel

Shoirah says that Egyptian producers are doing

well in various sectors, and can export. Nevertheless,

he points out that the size of Egypt’s exports

of products involving technology is still limited.

As for importers’ comments on Egyptian goods,

Shoirah says that the negative ones are on the

quality of certain processed merchandise, while


55

In-Depth

the positive ones are on speed given the location.

“For instance, the flow of agricultural products to

Europe is good, as they arrive very fresh,” the businessman

clarifies.

On that front, Abdo suggests attracting investors

who can produce goods of high value, and

who can bring in advanced technology. “We

also should leverage our location by luring investments

into SCzone, and particularly, sectors

known for high demand worldwide. That would

give us an advantage,” especially in times of crises

that disrupt global supply chains, Abdo adds.

Obstructions

The head of the Egyptian Forum for Economic

Studies explains that the factors that reduce exports

are bureaucracy, transport costs, ban on

exports of certain goods, and high costs of inputs.

With regard to transport costs, these can

be mitigated by selecting locations that are near

ports when building plants. As for inputs, expanding

reliance on local components should reduce

costs; however, those components have to be of

decent quality, as that should be the main factor

when making the choice, Abdo stresses.

On whether Egyptian producers are exportoriented

or not, the economics professor says it

depends on profitability, as investors would go

with whichever achieves more profits.

Shoirah explains that Egyptian producers are

interested in export, but the Egyptian market is

huge and plants are not large enough to supply

locally and abroad. That is why they have to set export

as a target that they must focus on and work

towards, the businessman maintains.

“We should target multinationals that can use

Egypt as a regional center to build plants that

56 January 2023


In-Depth

would supply to other countries as well … I myself

talked to investors, and the thing they like most

about Egypt is the huge market,” Shoirah says.

What To Do

Member of the Home Appliance Department

at the Engineering Industries Chamber Bahgat Al

Dahesh tells Business Today Egypt that increasing

exports is a goal that both the government and

producers must work towards. Speaking of the

role of the government, Al Dahesh says there are

three areas where the government is doing well,

while there are three others where efforts need to

be maximized.

Starting with areas that are already working

well, Al Dahesh lists the first as the free trade deals

Egypt has, as the absence of tariffs can counterbalance

the higher price, if the quality is good

enough. The second is that the government covers

70-80 percent of the costs of fairs held abroad

to promote Egyptian goods. “It would be great to

increase such fairs,” Al Dahesh suggests. The third

is export subsidies whose value ranges between 15

and 18 percent depending on the percentage of

local components. “For instance, if the local component

is at least 70 percent, the exporter is paid

the maximum percentage, which is 18 percent of

the value of the deal,” Al Dahesh explains.

As for the aspects that could be done better,

one is improving the role of commercial attaches,

as they have to carry out market research of needs

and demands that Egyptian exporters can fulfill.

“I receive calls from foreign embassies offering intermediate

products, and arranging business-tobusiness

meetings,” Al Dahesh says, pointing out

that local companies, regardless of size, cannot do

high-cost market research abroad.

Another area is encouraging feeding industries.

Al Dahesh clarifies that the lack of those industries

in Egypt ensues from the fact that tariffs on

raw materials are higher than those on finished

intermediate products. The range of the former is

5-10 percent, while that of the latter is 0-2 percent.

That makes local components more expensive.

Hence, the raw materials have to be exempted

from tariffs, Al Dahesh stresses.

Finally, there has to be a database of Egyptian

producers and what they produce, so that potential

importers can search by product. Al Dahesh

underlines that digitalization must also be on the

side of Egyptian manufacturers who have to better

promote themselves online.

R&D

Al Dahesh says that manufacturers have to work

on three aspects to be able to export, and that

those would not materialize without R&D. One

is that they have to make products that suit the

requests of importers. “Most manufacturers assemble

so they are not able to adjust the products,

and tailor them to the preference of importers,”

the expert explains.

Another aspect is that the exporter has to meet

quality standards in terms of good finishing, reliability,

and certification pertaining to safety, energy

efficiency, and environment-friendliness.

And, last, R&D can help increase the local component,

cut the cost of materials needed to produce

the components, maintain the quality, and

reduce the price of the final product by altering

the design and cancelling unnecessary features

that are not prioritized in the target market.


57

Spotlight

Taking Nuclear

Medicine to

Different Levels

Egypt has achieved progress in the peaceful use of atomic

energy, and is currently moving towards incorporating nuclear

medicine in treating different diseases.

58 January 2023


Spotlight

By Nourhan Magdi

With progress made in the diversification

of the energy mix, and

achieving the maximum utilization

of the peaceful uses of the

atomic energy for the welfare of the Egyptian

people, the country has moved to expand the

use of what has come to be known as “nuclear

medicine” in treatment of different diseases,

which has proven more efficient than traditional

methods.

Nuclear medicine involves the use of radioactive

material inside the body to see how organs

or tissue are functioning, for diagnosis, or to target

and destroy damaged or diseased organs or

tissue for treatment.

Over the past few years, the Atomic Energy

Authority, headed by Dr. Amr Al-Hajj, has succeeded

in achieving great successes in the field

of nuclear medicine by resorting to the peaceful

applications of atomic energy, whether in

medical or other fields, which confirms Egypt’s

keenness to adhere to standards of the International

Atomic Energy Agency and benefit from

this technology to serve the community, achieve

public safety and preserve the environment.

The Atomic Energy Authority, represented by

the National Center for Radiation Research and

Technology, was able to develop a laboratory,

at the highest levels of safety and quality that is

compatible with international standards, for the

production of amniotic tissue extracted from

placenta at the Atomic Energy Authority, where

an experimental production of amniotic tissue

and many scientific experiments were conducted

to prove its therapeutic efficacy and clinical

compatibility for patients with bedsores, diabetic

foot and radiation burns.

Dr. Nashwa Kamal Radwan, a researcher at

the National Center for Radiation Research and

Technology and head of the radioactive amniotic

tissue project, stated that the end product has

proved an excellent effectiveness compared to

traditional methods of treatment and compared

to internationally competing products.

These successes were proven in scientific

journals and international conferences, and the

researches were recorded on the official website

of the authority. In order to record the innovative

successes clinically, Dr. Radwan added that

amniotic fluid was also tried as a treatment to remove

facial wrinkles and acne scars, saying that

“the results were impressive.”

According to Radwan, the product costs $700

in America for one batch, while it can be provid-


59

Spotlight

The gamma irradiation units

participate in achieving the state’s

strategies through the following roles:

1

Achieving food

security

2

Preventing storage operations

in strategic crops such

as onion, garlic and potato

crops, which are strategic

crops, in order to reduce

waste.

3

Eliminating microbes that

cause spoilage of meat,

poultry and fish, which

works to preserve protein

quality.

4

Achieving food safety by

eliminating pathogenic

bacteria in food, fungi

that secrete mycotoxins,

and parasites harmful to

human health.

5

Promoting exporting by getting rid of

pests and insects that afflict many foods

(fresh fruits and vegetables, dates,

grains, etc), which works to facilitate

and overcome the agricultural quarantine

requirements when exported.

ed in Egypt at a price of only EGP 250 ($10.15).

Egypt has considered the use of atomic energy

in other fields including food preservation.

The decision was taken based on the country’s

agenda in maintaining safe and environmentally

friendly practices.

That’s why the gamma irradiation units at the

two locations of the National Center for Radiation

Research and Technology in Cairo (Nasr

City) and Alexandria participate in achieving

the state’s strategies by achieving food safety and

security, preventing storage operations, eliminating

microbes that cause poultry spoilage and

promoting export abroad by getting rid of pests

and insects, thereby avoiding the agricultural

quarantine requirements when exported.

Other roles include sterilizing medical supplies

at the National Center for Radiation Research

and Technology, such as syringes, dialysis

filters, blood transfusion tubes and equipment,

medical threads, gloves, medical cotton and

gauze, doctors’ scrubs and masks, artificial heart

valves, screws used in orthopedic surgery, raw

materials used in the pharmaceutical industry,

cosmetics, empty containers used to fill drops

and medicines, and others.

60 January 2023


Spotlight

Dabaa Nuclear

Power Plant

The National Center for Radiation Research

and Technology in Egypt has been producing

blood irradiation indicators, eliminating

the need to import the RadAver reagents from

abroad using hard currency.

Blood irradiation reagents are used in irradiation

of blood and some of its components for

tumor patients. They are chemical reagents that

depend on the occurrence of a certain chemical

reaction, which shows a clear color change from

yellow to red at low doses of up to 25 Gray (gy).

These reagents are used by sticking them on

bags of blood, plasma, or some of its other components

during the irradiation process using

gamma rays or x-rays, in order to visually verify

the irradiation process. The only acceptable way

to prevent the spread of blood transfusion diseases

is to irradiate blood and its components

before the blood transfusion process.

Dr. Atef Abdel Hamid, former head of the

Atomic Energy Authority, Dr. Yasser Shaaban

and Dr. Ahmed Mohamed Bayoumi conducted

numerous researches and were able to synthesize

new materials that were highly sensitive to

ionizing radiation crucial for the manufacturing

of blood irradiation reagents.

In November, Egypt celebrated the beginning

of the construction of the second nuclear reactor

at the Dabaa Nuclear Power Plant (DNPP)

west of Alexandria.

The Dabaa project is Egypt’s first-ever nuclear

power plant, and is designed to generate nuclear

energy for peaceful purposes in collaboration

with Rosatom, the Russian state-owned nuclear

engineering company in charge of building the

plant.

The planned four reactors for the plant are expected

to operate at a full capacity of 4,800 MW,

with each reactor generating 1,200 MW, by 2030.

The Egyptian Nuclear and Radiological Regulatory

Authority (ENRRA) is responsible for the

regulation and control of safety, security, nuclear

safeguards and emergency of all the nuclear

and radiological facilities and activities.


61

Spotlight

Delivering Global Events

to Egypt’s Shores

As tourism continues to recover at a steady pace, Egypt’s event

industry and itinerary expands with local and global entries in our

annual calendars. From regional superstars to international comedians

and concerts, Egypt’s attractiveness as a regional entertainment hub

has accelerated as lockdowns and travel restrictions wane.


When looking for an example of how

Egypt is growing as an event destination,

Somabay is a clear example

of integrating the hospitality and

major events industries to create an end-to-end

solution.

For the past few years, the location has become

the backdrop to Egypt’s biggest multi-sport event

the Tri-Factory Endurance Festival, as well as one

of the largest global open-water swimming competition

Oceanman.

On the heels of hosting one of famed Croatian

cellist duo 2Cellos’ farewell concerts, we sat down

with Ibrahim El Missiri, CEO of Abu Soma Development

Company (ASDC) — the master developers

of Somabay — to discuss their upcoming events,

Somabay’s growing portfolio and expansions.

“Somabay was honored to collaborate with such

leading companies like RMC & MBC that are always

keen to present exceptional insights aiming

to impress different audience categories, El Missiri

told us, adding that the “historic concert is proof

of Somabay’s strategy to host various activities that

promote tourism revitalization and attract tourists

all over the world to enjoy the beauty and charm of

our beloved Egypt.”

“We pride ourselves on immersing our guests in

amazing moments that get rid of their daily stress

and lift their spirits. That weekend came to build

on our previous laudable endeavors to bring mega

international events all the way to Egypt, which

aligns with Egypt’s 2030 Vision to promote our

country as one of the best touristic destinations all

over the world,” he explained.

In early December, Egyptian Minister of Tourism

and Antiquities Ahmed Issa revealed that

62 January 2023


Spotlight

Egypt plans to stimulate inbound tourism and increase

foreign tourist arrivals by 25-30% annually,

with the aim to hit a revenue mark of $30 billion

by 2025.

Egypt’s Central Agency for Public Mobilization

and Statistics (CAPMAS) announced in September

that international tourists who visited Egypt

during the first half of 2022 reached 4.9 million,

compared with the H1 of 2021’s recorded 2.6 million

tourists.

When asked about what decision-making factors

come into play when prospecting and selecting

events, El Missiri told us that as part of the

approach to establish Somabay as an “all-time favorite

destination for each and every member in

our community,” the activities provided reflected

“a growing trend among our generation here in

Egypt.”

“In the past [year], Somabay was keen on bringing

international events like Oceanman, and Miss

Elite to [Egypt to] cater to different target audiences.

That’s why it was essential for us to be part

of 2Cellos’ final world tour as part of our strategy to

become an all-round player among real estate developers

within the luxury and lifestyle [segment],”

he said.

As the year closes, we asked the CEO about Sombay’s

upcoming events; he stated that “Somabay is

very keen on creating a series of diversified events

and celebrations to make its residents and visitors

experience one of a kind across all the holidays every

year, that’s why once again, we are ending 2022

with our mega New Years’ Eve party partnering

with the renowned byGanz to give us a top-notch

event.”

Somabay was the first development project in

the Red Sea Governorate and the first among the

only six integrated development projects in Egypt,

El Missiri explained, adding that the Egyptian government

has put significant effort into developing

the infrastructure of this area and facilitating the

development of roads and airports to make it easier

to reach the Red Sea Governorate.

“[By] cooperating with the Red Sea Governorate,

the destination becomes a potential economic

and touristic opportunity. I’m proud to say that

Somabay shows that there could be an established

community where people can come and settle,” he

told us when asked about his previous comments

on transforming Somabay from a holiday getaway

to a first-home destination.

Somabay’s strategy is to create a fully integrated

community for residents offering diversified facilities

that cater to everyone’s needs and more, he

clarified.

“It’s worth mentioning that after COVID-19 remote

working and connectivity have been more

common and applied in many businesses and corporates,”

E Missiri said. “[In that regard] I believe

that living in Somabay is the optimum choice and

opportunity for any type of business that is based

on connectivity creating a structured productive

working atmosphere.”

Moving into 2023, El Missiri discussed the

ASDC’s success in 2022, stating that “Somabay is

currently moving faster than we thought we’d ever

be. We’ve launched three projects in a year, which

is mind-blowing. Blanca, a prime beachside residence

project, The Coves, an amazing place with

insane topography and landscape, and finally, Bay

Central, an expansion to the Marina, the most

luxurious side of Somabay. Last year we launched

Mesca Cabanas, which was a great success, people

just loved it!”

According to the ASDC CEO, visitors will no longer

need a “fancy big home” to enjoy all that Somabay

has to offer, highlighting that the area also

provides smaller places to stay while still allowing

access to the beach.

“We also launched our new brands Somabay

holidays and StayR. StayR is a luxury vacation rental

and top-class concierge services apartments in

Somabay, expertly combining personalized hospitality

with a refined local touch to transform your

vacation into an exceptional experience of a lifetime,”

El Missiri explained.

El Missiri with 2Cello’s

Luka Šulic ` and Stjepan

Hauser.


63

Spotlight

World Economy

to Undergo Tough

Phase in 2023

The right monetary and fiscal policies are the only way to a

healthy economy.

64 January 2023


Spotlight


65

Spotlight

By Noha El Tawil

In the first months of the COVID-19 pandemic,

it was hard to forecast when the

world economy could rebound to prepandemic

levels. Yet, a promising performance

had begun to show in 2021, before

the Ukraine War drove up the prices of energy

and food, incurring inflation and financial crises

in many countries around the world. Economic

projections for 2023 are rather grim.

Although positive growth will persist almost

worldwide, the pace will be quite slow. And, to

prevent further deterioration, the right monetary

and fiscal policies must be put in place in

tandem with a focus on green transition, as it

will ensure sustainability and efficiency on the

long term.

Growth and Inflation

In its latest World Economic Outlook released

in October, the International Monetary

Fund (IMF) estimated that global growth would

plummet from six percent in 2021 to 3.2 percent

in 2022, and 2.7 percent in 2023. Those

figures are the lowest since 2001, except for the

periods of the global economic crisis and CO-

VID-19 lockdowns. The drop is intertwined with

economic contraction in the United States during

the first half of 2022, and in the eurozone

during the second half of the same year. That

is coupled with the harsh reemergence of the

pandemic in China, which also suffers from a

stagnant real estate sector.

Speaking of global inflation, it is expected to

almost double, recording 8.8 percent in 2022

up from 4.7 percent in 2021. Yet, it is expected

to fall to 6.5 percent in 2023, and 4.1 percent

in 2024. The most imminent risks that may

cause inflation to persist are hiking prices of

food and energy, shortage in Russian gas to

Europe incurring a reduction in output, and

a resurgence of COVID-19 or other health

crises. The average price of the oil barrel in

2023 is estimated at $85.52, down from the

projected $98.19 in 2022, which will impact oil

66 January 2023


Spotlight

exporters and oil importers differently.

Inflation is hitting low-income citizens in developing

countries hard, given that half of their

expenditure has been directed to food, which

means that their health and living standards are

at grave risk.

Simultaneously, the current strict conditions

of financing can give rise to a debt distress in

emerging markets. In addition, the property

crisis in China can take a toll on the domestic

banking sector, generating a cross-border spillover.

Sad News for Developing States

In Asia’s emerging and developing economies,

growth is projected to decline to 4.4 percent

in 2022 and 4.9 percent in 2023, down

from 7.2 percent in 2021. Similar economies in

Europe will experience no growth in 2022 and a

slight one in 2023 (0.6 percent). The decline is

also happening in Latin America and the Caribbean

as growth will slump from 3.5 percent in

2022 to 1.7 percent in 2023. A similar scenario

is projected for the Middle East and Central

Asia, as oil prices are expected to dip. Growth is

expected to be 3.6 percent in 2023, down from

five percent in 2022. The region that is enduring

a less dramatic contraction is sub-Saharan

Africa where growth is projected to drop from

4.7 percent in 2021 to 3.6 in 2022 and 3.7 percent

in 2023.

General Recommendations

The report recommends that the priority of

monetary policies must be inflation containment,

while that of fiscal policies must be the

protection of vulnerable groups. It also encourages

the intensification of “structural reforms”

in order to “improve productivity and economic

capacity,” as that in turn would “ease supply

constraints” and contribute to countering inflation.

The IMF further stipulates that green transition

would be beneficial on the long run, primarily

in terms of energy security and climate

change mitigation.

Blow to Global Trade

The World Trade Organization (WTO) estimates

that the volume of merchandise traded

globally would grow by just one percent in


67

Spotlight

2023, down from the projected 3.5 percent in

2022. That is because demand is expected to

drop in Europe due to the rising energy prices

caused by the Ukraine War, which puts pressure

on households, and raises the costs of manufacturing.

In the United States, raising the interest

rate is shrinking expenditure in the areas of

housing, motor vehicles and fixed investment.

As for China, the outbreaks of COVID-19 are

disrupting production. As for developing countries,

they are already grappling with rising fuel,

food, and fertilizer bills.

In 2022, the ranking of regions in terms of

growth in export volume is — from the highest

to the lowest — the Middle East (14.6 percent),

Africa (six percent), North America (3.4 percent),

Asia (2.9 percent), Europe (1.8 percent),

South America (1.6 percent), and the Commonwealth

by Independent States (-5.8 percent).

As for imports, the ranking is topped by

68 January 2023


Spotlight

“The World Trade Organization

estimates that the volume

of merchandise traded

globally would grow by just

one percent in 2023, That is

because demand is expected

to drop in Europe due to the

rising energy prices caused by

the Ukraine War, which puts

pressure on households, and

raises the costs of manufacturing.”

the Middle East (11.1 percent), followed North

America (8.5 percent), Africa (7.2 percent),

South America (5.9 percent), Europe (5.4 percent),

Asia (0.9 percent), and the Commonwealth

by Independent States (-24.7 percent).

The projections for 2023 in terms of rise in

imports are 0.8 percent in North America; one

percent in South America; -0.7 percent in Europe;

9.4 percent in the Commonwealth of Independent

States; 5.7 percent in Africa; 5.7 percent

in the Middle East; and 2.2 percent in Asia.

Exports are estimated to grow by 1.4 percent in

North America; 0.3 percent in South America;

0.8 percent in Europe; 3.3 percent in the Commonwealth

by Independent States; -1 percent

in Africa; -1.5 percent in the Middle East, and

1.1 percent in Asia.

Forecasts for Egypt

The IMF projects that Egypt will achieve the

second-highest real GDP growth in the Middle

East and Central Asia in 2023, which is 4.4

percent. The highest figure will be recorded

in Mauritania at 4.8 percent. The financial institution

also estimates that Egypt’s real GDP

growth in 2022 will be 6.6 percent, up from 3.3

in 2021. It speculates that in 2027, the country

will record a real GDP growth of 5.9 percent,

the highest in the region along with that of Somalia

(six percent).

As for consumer prices, they, unfortunately,

could spike by 12 percent in 2023 up from the

projected 8.5 percent in 2022, and 4.5 percent

in 2021. Nevertheless, the figure is expected

to fall to seven percent by 2027. On the other

hand, unemployment is estimated to remain

stable at 7.3 percent in 2022 and 2023, as that

was the figure recorded in 2021. Regarding the

current balance of payment, it will keep declining

from -4.4 percent in 2021 to -3.6 percent in

2022, -3.4 percent in 2023, and -1.6 percent in

2027.


69

Spotlight

Clean Transportation

Era Begins in Egypt

bt highlights major

sustainable transportation

projects Egypt has

embarked on, some of

which have already

gone into

operation.

By Nourhan Magdi

Egypt has embarked on a number of sustainable transportation

projects based on environment-friendly technologies

in passenger transport and green infrastructure.

Transportation is the second cause of environmental pollution

in the country, as a result of carbon emissions, with transportation

being responsible for 23-2% of carbon emissions in the atmosphere,

according to Egyptian Minister of Transport Kamel El-Wazir.

70 January 2023


Spotlight

This has pushed the authorities to lay the

foundation for different projects and expansions

including a monorail, electric train, the

light rail transit (LRT), high speed electric

train and the Bus Rapid Transit (BRT).

The aims, states the Ministry of Transport,

is to transform transportation into collective

means, thereby reducing the number of cars

and alleviating traffic congestion.

Demonstrating the country’s stance in maintaining

a safe and green environment, Egypt

operated 260 electric buses in Sharm El-Sheikh

to transport delegations attending the 27th UN

Climate Change Conference (COP27) hosted

in November. The ministry has begun its plan

to convert to electric transport in Sharm El-

Sheikh and the tourist cities of Hurghada,

Luxor and Aswan.

In addition, the monorail is set to operate by

2023.

Cairo Monorail

With its two lines extending for almost

100km, Cairo Monorail is considered the longest

monorail network in the world, where pon

completion, it is expected to be transporting

45,000 passengers per hour in each direction.

The monorail is among various methods of

green transportation that Egypt has been constructing

in order to improve mobility for its

population, reduce emissions, and ease traffic

congestion.

Linking Cairo, New Cairo’s Fifth Settlement,

the New Administrative Capital and Sixth of

October City, the monorail will be Egypt’s most

advanced means of mass transportation, as it

runs on electricity instead of diesel. It is esigned

to run at 90 km/hour and is fully-automated

and driverless.

In August 2019, Bombardier Transportation,

Orascom Construction and the Arab Contractors

signed an agreement with the National Authority

for Tunnels to design, build and operate

two new monorail lines in Egypt. A consortium

comprising Orascom, Alstom, and Arab Contractors

has been implementing the project.

The first monorail line will extend 54km from

East Cairo to the New Administrative Capital,

with 22 stations and a depot. The second line

will be around 42km in length connecting the

Giza Governorate to Sixth of October City with

12 stations.

The total cost is slated to be €2.5 billion, and

trains will have rubber tires to reduce noise, in

addition to being corrosion-resistant and recyclable.

Although the ticket price has not yet been

officially determined, the Transport Minister


71

Spotlight

has indicated that it could be around EGP 25

($1.02).

Egypt’s BRT system

The BRT is a high-quality bus-based transit

system that delivers fast, comfortable, and costeffective

urban mobility. BRT has the potential

to improve accessibility in Greater Cairo by extending

the reach of the metro, bus, and paratransit

systems.

The BRT, the first of its kind in the country,

will serve 25 million people living in Greater

Cairo (a quarter of Egypt’s population) through

47 stations located on the Ring Road.

The Ring Road will consist of six lanes for

motorists, and a separate lane designated for

BRT buses, bringing the total to seven lanes

in each direction. The upgrading of the Ring

Road, which is considered one of the most congested

highways in Greater Cairo, has been underway

to expand the lanes from four to seven

in each direction.

Operating on electricity and stopping at designated

stations, the BRT system will replace

microbuses, which will be completely banned

on the Ring Road.

The BRT system is designed to travel for a distance

of 106 kilometers, where buses will operate

18 hours a day with a speed of 50km/hour.

It accommodates three bus models: single, dou-

72 January 2023


Spotlight

ble, and triple buses that can transport between

95 and 300 passengers.

In January 2022, El-Wazir announced that the

first 10 stations of the BRT system will begin to

be established, with architectural and construction

diagrams already completed.

In May 2021, El-Wazir stressed that this project

would help Egypt cope with an ever-growing

demand for means of transportation, especially

when the government is relocated to the New

Capital.

In addition, the country inaugurated its first

light rail transit (LRT) in July, which can accommodate

1 million passengers per day. The lines

of the 105km LRT, some of which are still under

construction, link Greater Cairo with Egypt’s

new Administrative Capital, east of Cairo.

Egypt further decided to invest in electric

cars, providing several charging stations in Cairo

and Giza.

The nation’s Nabq Protected Area, located in

South Sinai Governorate, has also inaugurated

its new environmentally friendly transportation

service with electric cars and water bikes.


73

BT Scene

Allianz Egypt Supports “Save Hospital 57357” Donation Campaign

Allianz Egypt, the leading insurance company in Egypt affiliated

to Allianz Global Investors, announced the support

of “Save Hospital 57357” donation campaign.

Allianz Egypt will contribute to the cost of Stereotactic

radiosurgery (SRS) that provides excellent clinical results

in treating a broad spectrum of brain tumors non-invasively

with fewer side effects than those resulting from traditional

surgical approaches or radiotherapy. Such an initiative goes

in line with Allianz Egypt’s corporate social responsibility

strategy.

Allianz Egypt has been keen on funding cancer treatment

for children in Egypt, as supporting the health sector as well

as children and youth is a key factor of the group’s corporate

social responsibility. These areas aim to build a healthy community

and enable youth and children to view sustainability in

Egypt and create a promising future for the coming generations.

Allianz Egypt focuses its social responsibility on main pillars

that include supporting youth and creativity for development

and helping offer equal access to quality education.

Such goals are materialized in the partnerships Allianz Egypt

has entered into with prestigious entities.

Tatweer Misr is Finally Flowing West with Its Latest Project ‘Rivers’

Tatweer Misr, one of the leading real estate development companies

in Egypt, announced the launching of its latest project “Rivers” in the

heart of New Zayed — placing the real-estate developer in all strategic

destinations across Egypt. The announcement was made in the last

week of November during the opening of Tatweer Misr’s new sales office

in West Cairo at Arkan Sheikh Zayed.

The launching event was a 10-minute unique experience that took

the guests into three different rooms. The first room started with a

video of both Dr. Ahmed Shalaby, President and CEO of Tatweer Misr,

and Karim Radwan, Chief Commercial Officer, in which they welcomed

the guests, shared a glimpse about the company and its projects and a

brief on the inspiration behind the project’s masterplan.

The second room was a 3D, holistic experience that took the attendees

on a tour to “Rivers” to be fully immersed in the new project’s experience;

from the greenery surroundings and the sense of smell that

was triggered by the lemon grass to the fresh air of the place. The third

room was designed in a form of a dining room to give the guests the

sense of home while watching a sales pitch video explaining everything

about the project. Finally, guests were led to round table booths where

sales representatives were ready to answer any questions and attend

to further requests.

“Rivers ... our latest contribution to the real estate scene, is a

boutique living experience that depicts exclusivity flowing west and

pays tribute to natural serenity, and unrivalled privacy in the heart of

New Zayed. Through Rivers, Tatweer Misr has successfully placed its

footprint in all of the most strategic locations in the real estate market

in Egypt, meeting our aspirations of being widely spread across the

country,” said Dr. Ahmed Shalaby, President and CEO of Tatweer Misr.

He continued,” Rivers asserts our strategy of creating smart, sustainable,

and happy communities, leading Tatweer Misr to be a leading

company with a pioneer vision and business model, that is committed

to design excellence, innovation and sustainability.”

Master planned by world-renowned Italian architect Gianluca Peluffo

and Partners, the carefully designed project is set to place residents’

life at the intersection of tranquility and action, offering units with landscape

and river views. Situated on 100 acres of greenery and turquoise

waters, Rivers is located in a prime location in the heart of New Zayed,

three minutes away from Sphinx International Airport, 12 minutes from

Sheikh Zayed, and 35 minutes from Downtown. The project also allows

direct access to Dabaa-Rod Al Farag Axis, Cairo-Alexandria Desert

Road, Dahshur Road and El-Mehwar.

Rivers encompasses more than 700 units with sizes that vary between

180 and 350 square meters. The project offers a diverse array

of single-family homes that range from standalones, twin houses and

town houses, where every unit is guaranteed a waterfront and landscape

view with intertwining rivers and central parks. Moreover, Rivers

provides multiple facilities and amenities including a clubhouse, central

parks, an outdoor gym, and a commercial hub with cafes and retail

stores in addition to walk lanes and bike lanes.

Guided by a unique vision to offer exceptional quality and tangible

diversity in its five projects; IL Monte Galala at Ain Sokhna, Fouka Bay

& D-Bay at the North Coast, Bloomfields in Mostakbal City, New Cairo

and Rivers in New Zayed, West Cairo, Tatweer Misr has succeeded in

building multilayered partnerships over the past years that resulted

in developing an innovative active network solution where sustainable

and smart city services meet the Internet of Things. Today, the real

estate developer is setting the benchmark for integrated living through

innovative projects that create destinations and reflect the met needs

of their smart, sustainable and happy communities.

74 January 2023


bt scene

Launch of Menthum – a Pioneering Digital Saving Solution in Egypt

Team Menthum recently announced the launch of an innovative

digital saving solution in Egypt: a first-in-market mobile app

that makes saving simple, smart, and secure. Menthum brings

together a novel product concept, an innovative workflow, and

a money market fund to create a comprehensive customerexperience

(CX). Egypt’s first purpose-built digital money market

fund, a.k.a. “Menthum Money Market Fund,” invests in safe

Egypt government Treasury Bills (T-Bills).

The product is the brainchild of a team of veteran professionals

with extensive expertise in banking and finance: Himanshu

Shrimali, Co-Founder & CEO of Menthum Holding, was leading

the retail banking division at a large Egyptian bank, and Ismail

Sarhank, Co-Founder & COO, has held a leadership role in the

financial services industry.

Speaking at the product launch, Shrimali explained the motivation

for devising a novel saving solution. “We work hard to

make money. Our money should also work hard for us! While

desiring a better return on our money, we care for its safety

even more. Menthum was created to earn solid return on our

liquid savings yet ensure peace of mind. We strongly believe that

a product created to address a strongly felt personal need will

positively add value to fellow Egyptians’ lives.”

Offering an overview of the market offerings for liquid savings,

Ismail Sarhank said, “We all keep a part of our money in liquid

form, for our short to medium term needs and goals — be it

school fees, health expenses or a car, a house or a holiday. However,

a typical bank account in Egypt pays low interest on liquid

savings, in the range of 4 to 6% annually. This rate is generally

based on the account balance. Few banks offer daily interest accounts

and require high balance to earn good interest.”

Sarhank added, “A money market fund, which is as safe as

a bank account from a credit risk perspective, can earn returns

upwards of 10% annually or more in the current interest rate environment

and that’s how Menthum made this process simple,

smart and secure.”

“From our experience, we felt the need to create a hasslefree,

customer-centric saving solution that assures first and

foremost the safety of money, while ensuring convenience of

use. Thus, we created Menthum, ‘A Fresh Way to Money’. The

word ‘Menthum’ (inspired by Latin for ‘Mint’) denotes a ‘Fresh’

way to save, manage and add value to money,” Shrimali explained.

Customers can download the mobile app from the comfort

of their home/office and complete the sign-up process in under

a minute. The Menthum team then visits the customer to complete

the Know Your Customer (KYC) requirements and obtain

their signature. Their Menthum account is then activated and

customers can freely add money; with no restriction on the

minimum amount. Customers earn daily return as soon as their

money is credited in their Menthum account. There is no lockin

period. Hence, customers can withdraw money at any time.

“With the growing dynamism of the country and the increasing

demand for innovative products that add more value in our lives

in a secure manner, we sense that Egyptians are at a turning

point for embracing change and pioneering ideas,” Shrimali

noted. “We hope to play a significant role in enhancing financial

inclusion in Egypt by expanding the availability of innovative saving

solutions to a wider base of Egyptians.”

“We thank the team at Azimut led by Ahmed Abou El Saad,

who swiftly understood our vision and worked with us to realize

the country’s first digital fund.” Shrimali and Sarhank concluded,

“We would also like to express our sincere gratitude and appreciation

for Menthum’s regulator, the Financial Regulatory

Authority (FRA) of Egypt, for their pragmatic approach and proactive

support. They certainly walk the talk when they say Building

Bridges Not Walls!”

Menthum Holding for Financial Investments S.A.E. is licensed

and regulated by the Financial Regulatory Authority (FRA) of

Egypt. Menthum Money Market Fund is licensed & regulated by

the Financial Regulatory Authority (FRA) of Egypt.


75

bt scene

Cairo 3A signs an exclusive partnership to distribute Driscoll’s berries to the local market

Within a designated framework to expand its product portfolio of

crops and increase the company’s sales, Cairo 3A Agricultural Company

— an affiliate of Cairo 3A group — announced the signing of a partnership

contract with Driscoll’s International Company. Driscoll’s is the

world’s leading company in cultivating, producing and exporting blackberries,

blueberries, raspberries, berries and strawberries. Under the

agreement, Cairo 3A Agricultural will be the sole representative for the

marketing and sales of these goods in the Egyptian market.

Delivering a variety of new and distinguished products that suit the

different tastes of Egyptians is one of Cairo 3A Agricultural’s intents

through signing this partnership. This also comes in line with the country’s

directives to establish partnerships with major international companies

and encourage attracting foreign investments to Egypt.

Driscoll’s International Company granted the exclusive partnership

to Cairo 3A Agricultural on the grounds of its distinguished experience

in producing and distributing fruits and vegetables to the Egyptian and

global markets.

“We are pleased to sign a partnership contract with Driscoll’s International

Company, which is considered the largest producer of berries of all

kinds in the world, with a 70% market participation,” announced Mr. Ali

El-Gamil, CEO of Cairo 3A Agricultural Company. “Driscoll’s is cultivated

in 21 countries and marketed across more than 60 countries in North

America, Europe, and the Middle East. That’s why winning the exclusive

partnership will help us penetrate many new distribution channels in the

local market and increase the volume of products we distribute, especially

fruits of various kinds.”

El-Gamil unveiled that the agreement includes a plan to export strawberry

products by Cairo 3A Agricultural to different distribution areas

handled by Driscoll’s worldwide. This will contribute to placing Egypt on

the global map for the cultivation of some specialized types of fruits, and

will also grant transferring investors’ destinations to invest in the Egyptian

agricultural market.

He also stated that it was mutually agreed to reach a 300 million EGP

volume of cooperation during the first year, whether from distributing

Driscoll’s products in the Egyptian market or exporting Cairo 3A Agricultural’s

strawberry products through Driscoll’s distribution network

across the globe. With an optimistic plan to exceed the barrier of EGP1

billion by the fifth year, Cairo 3A aims to obtain a 50% market share of

berries sales in the local market in 2023, provided that it exceeds 90%

by 2028.

“We identified the major companies operating in the local market and

studied them thoroughly to choose the one that will contribute to supporting

our vision, Cairo 3A Agricultural was the most suitable company

to match our standards,” said Mr. Shadi Fayed, who manages sales and

key accounts of Driscoll’s in the Middle East and North Africa. “Driscoll’s

vision is to consolidate its position all over the world, serving a larger

number of customers, and creating many new delightful moments for

consumers, through consuming berries. Cairo 3A Agricultural Company

gained our trust due to its long experience in the Egyptian market, its

production of a wide range of high-quality fruits, and its great storage

and distribution capabilities to many different distribution channels in the

Egyptian market.”

Romain Contat, regional head of Driscoll’s, added that providing all

kinds of berry products at reasonable prices to all consumers and supplying

them to all relevant outlets is the company’s primary goal.

Cairo 3A Agricultural Company is a leading company operating in

producing and distributing fruits and vegetables in the Egyptian market.

It owns 2,500 acres in Wadi El-Natrun to grow several crops, a packing

station with a production capacity of 120 tons per day that includes 6

packing lines, and one of the largest cold storage facilities in the Middle

East and Africa with a capacity of 6.6 pallets to ensure that fresh fruits

and vegetables remain of high quality. The facility also includes 3 cold

rooms, 2 freezer rooms, 2 pre-cooling units, and 1 quick-freezing tunnel,

in addition to the Qutof concentrates factory, which operates with

an annual production capacity of 12,000 tons. The company is one of

the largest companies exporting fruits and concentrates in Egypt and

exports its products to over 40 countries worldwide.

Somabay becomes a benevolent contributor for the African Hope foundation

Abu Soma Touristic Development Company (ASDC) sponsored

a charity paddle tennis tournament organized by a

group of students of the British International School in Cairo

(BISC). In an attempt to brighten the spirits and holiday

mood, proceeds from the tournament will be contributed to

offering 350 Christmas support boxes to the orphans and

children at the African Hope Foundation.

Bringing 40 players to the Royal Paddle Arena in the Bull

Sports Complex, the charity event attracted between 60-200

customers of different age demographics, paddle competitors

of levels A, B & C as well as various international school

communities.

76 January 2023


bt scene

Stunning Cadillac Heralds Electrifying Era of Luxury and Refinement in Egypt

Cadillac will redefine luxury motoring in Egypt, starting with the

stunning design and artfully integrated technology of the LYRIQ

luxury SUV, General Motors (GM) and Al Mansour Automotive.

Globally, Cadillac will be all-electric by 2030, with the LYRIQ spearheading

the transformation of the brand synonymous with American

luxury and innovation.

Cadillac’s all-electric future in Egypt kicked off at the COP27

global sustainability conference in Sharm El-Sheikh, where the

LYRIQ is part of GM’s EV demonstration fleet being utilized by attendees.

Mohamed Mansour, Chairman of Al Mansour Group said, “In a

month when Mansour Automotive and GM are Principal Partners of

COP27, the world’s most important climate conference, the launch

of Cadillac represents an exciting glimpse of a cleaner and greener

future for Egypt. Our two great companies have partnered for well

over 40 years and this is another significant moment in our longterm

relationship.”

“There is no doubt that the future is electric; the only questions

that remain are when, and how?” said Shilpan Amin, Vice President

and President of General Motors International. “Innovation is in

Cadillac’s DNA, and in partnership with Mansour Automotive, we

have no doubt that Cadillac has the legacy and expertise to make

it a closer reality in Egypt. Not only that, but we are also making it

extraordinary by promising a completely new ownership and driving

experience, that will redefine what we want and need from our

luxury vehicles.”

Sharon Nishi, Managing Director of General Motors Egypt, stated,

“Cadillac has an illustrious history in Egypt, especially hailing from

the time of the golden age of the Egyptian Cinema when Cadillac was

the ultimate definition of luxury. We are thrilled to announce the return

of Cadillac to Egypt with its all-new all-electric lineup from 2023.

Egypt is one of the most important markets for General Motors Africa

and Middle East. Bringing our luxury brand, Cadillac, as an all-electric

brand in its 120th year is a milestone for us, and we cannot wait to

start our journey with Egyptian luxury customers.”

“We are committed to deliver on Cadillac’s first-class and sophisticated

customer experience to the Egyptian market. Al Mansour

Automotive Company has been a market leader since inception and

continues to bring innovative products, services, and technologies

for the discerning Egyptian consumers,” stated Ankush Arora, CEO

of Al Mansour Automotive.

Cadillac is defining the future of luxury transportation through a

series of exciting new electric vehicles, including the 2023 LYRIQ

which sold out in the United States within two hours of its launch to

customers earlier this year.

Cadillac is a true icon of luxury automotive with a 120-year heritage

— and its all-electric future will continue to position the brand

at the leading edge of technological advancement and luxury for

customers.

GM’s advanced and fully flexible Ultium battery platform underpins

the LYRIQ and Cadillac’s future electric portfolio, offering

performance and driving range exceeding many petrol-powered

vehicles.

Cadillac LYRIQ will be available with premier technologies and

stirring performance capabilities enabled by the vehicle’s dedicated

electric architecture. A 12-module, 102 kilowatt-hour battery pack

and an all-wheel-drive Ultium Platform deliver a Cadillac estimated

500 horsepower and 610 Nm of torque — and a range of approximately

500 km with a full charge. LYRIQ also offers high-speed DC

fast charging enabling customers to add an estimated 125 km of

range in about 10 minutes of charging time and 265 km of range in

about 30 minutes of charging time.

The interior is clean and simple with a focus on secondary and

tertiary design elements, including intricate laser etched patterns

through wood over metal décor, which has never been done before.

The large, curved LED screen is the centerpiece, alongside the distinctive

black crystal grille, and all the components are incorporated

artfully, blurring the lines of separation among technology, lighting

and décor.

The bold plans to announce the return of Cadillac to Egypt were

revealed at a press conference at The Nile-Ritz Carlton in Cairo on

November 10th, 2022.


77

bt scene

Global fashion brand DeFacto opens 25th store in Egypt

Continuing to invest in Egypt without losing momentum, DeFacto

opened the doors of its 25th store in the country. Attending the opening

of the new store in Maxim Mall, DeFacto General Manager of Merchandising

and Marketing Barış Sönmez said that they plan to continue their

investments in Egypt.

Operating continuously in 93 countries from Europe to Asia with a

team of 15,000 people in more than 500 stores, global fashion brand

DeFacto continues its investments in Egypt which it started by opening

its first store in 2013, without losing momentum. “We will continue to

increase our investments in Egypt in 2023, where we attracted great

interest,” Sönmez said.

Continuing to bring the latest trends to its customers in Egypt,

DeFacto’s newest addresses had been Cairo and Alexandria. The new

stores opened in recent weeks, in Maxim Mall and Green Plaza Mall,

offer a wide range of products for women, men, children, babies and

accessories.

“As DeFacto, we have succeeded in becoming a leading brand that

satisfies all our customers in Egypt thanks to our collections that are

appealing to people of all ages and styles, our wide store network and

our strong online channels. Our primary goal and the secret of our

business is to offer our customers the latest collections at the most

affordable prices by adapting to the ever-changing fashion. Seeing the

happiness of our customers proves us that we are following the right

strategy by investing in Egypt. In 2023, we plan to continue our invest-

ments at the same pace,” Sönmez said.

DeFacto attaches great importance to the employment of personnel

with disabilities in Egypt as well as in its operations in other countries.

The global fashion brand was awarded the Certificate of Appreciation for

Employing People with Disabilities in Compliance with the Law by the

Egyptian Ministry of Labor for employing people with disabilities in the

field and head office.

MIP Reveals its Roadmap for Sustainability during COP27 in Sharm El Sheikh

In line with COP27 theme ‘Together for Implementation’ Misr Italia

Properties (MIP) unveiled a series of unique practices across its diverse

developments. MIP prioritizes quality through partnerships that help present

comprehensive projects taking its values and sustainability measures

into account, towards a greener future.

“COP27 in Sharm El Sheikh focused on constructive implementation

and this has been the guiding principle of our strategy; the real estate

industry as estimated by the World GBC is responsible for about 40% of

global carbon emissions; as an industry, real estate development needs to

take proactive steps to reduce its impact on the planet and its resources,”

explained Mohamed Hany El Assal, CEO and Managing Director of Misr

Italia Properties.

During the first week of COP27, the company signed The United Nations

Global Compact Network Egypt (UNGCNE) “Egypt’s Sustainable Communities”

Initiative Declaration with the aim of building better lives and the

Climate Ambition Accelerator, promising to collaborate and share best

practices across the construction and real estate value chain and to ensure

the well-being of people and the planet. In that light El Assal added that

“we are thrilled to be part of this initiative which aims to coordinate members’

efforts to resolve barriers that stand in the way of industry growth

and bring forward best practices to achieve sustainability, and reshape the

industry in a way that sustains the environment.” Italian urban planner and

architect Stefano Boeri and his exclusive presence with Misr Italia Properties

demonstrated the latest technologies used within IL BOSCO’s Vertical

Forest project, elaborating on the partnership with MIP and its impact on

the environment; through combating pollution by absorbing about 7 tons

of carbon dioxide annually and producing 8 tons of oxygen.

In line with the company’s customer-centric “Inspired by You” approach

towards sustainability, MIP’s main priority is their client’s quality of life and

moving towards a greener climate by introducing innovative, time and

cost-efficient methods in urban planning. In that regard, Mohamed Khaled

El Assal, CEO and Managing Director of MIP, highlighted that “we believe

that in order to get closer to achieving the UN’s Sustainable Development

Goals and Egypt’s 2030 vision for sustainable living, we leverage our local

and international partners’ expertise to create the best for our clients and

to maintain best practices and to secure partnerships that reflect our commitment

towards creating sustainability within our projects, MIP signed an

MOU with Schneider Electric where the latter is planned to employ their

expertise and together develop smart-city concepts using EcoStruxure

systems, which enables comprehensive management of all infrastructure

including DCIM, security, command and control centers, energy, heating,

air conditioning, and water. El Assal further added that “another partnership

we are proud of securing is signing an agreement with Future Clean

Energy towards implementing solar panels on the roofs of 3 commercial

malls with a capacity of 400 kilowatts from solar power plants to produce

renewable energy and save user expenses by up to 20%.”

Misr Italia Properties stands among the industry’s most proactive leaders

that invest towards having a green development in 2022, and goes

in line with Egypt’s Climate Change Strategy 2050 by prioritizing smart

technology systems in all its residential, commercial and administrative

projects with the aim of adding value to people’s lives and the environment

they’re a part of.

78 January 2023


bt scene

COFE App signs agreement with Saudi Coffee Company to become their premium

online coffee marketplace

COFE App, the premier online coffee marketplace, recently announced

the signing of an agreement with the Saudi Coffee Company

(SCC). As per the agreement, COFE App will be the premium online

partner for SCC supporting them in amplifying their reach to coffee

lovers in the Kingdom and beyond. This strategic partnership between

COFE and SCC is aimed at propelling the Saudi coffee industry into the

digital era, consequently empowering local producers to connect with

end users with greater ease and convenience.

The partnership between COFE App and SCC is set to propel the

coffee e-commerce sector further, making Saudi-grown beans available

to coffee lovers through COFE’s mobile app. Both companies are

united in the purpose to transmit technology and knowledge to the

Kingdom in a number of areas, including coffee production, roasting,

marketing, and sales, as well as all other activities, in order to promote

the Kingdom as a frontrunner in the sector.

Commenting on the agreement, COFE App Founder & CEO Ali Al

Ebrahim expressed: “It is a proud moment for us at COFE to be working

with SCC. We hope that this partnership will help in giving Saudi

coffee the visibility and reach that it truly deserves. Through our work

in Saudi, we hope to take this integral part of our culture and tradition

to the world. I would also like to take this opportunity to thank

everyone involved in making this possible. It is truly the beginning of

something great.”

The platform has seen widespread acceptance from users in the

Kingdom and was listed as the Top 10 Most Downloaded Food Delivery

and Restaurant Apps (2021) in the kingdom in a survey conducted by

Communication & Information Technology Commission (CITC) of Saudi

Arabia.

SCC is a Public Investment Fund (PIF) company launched by the sovereign

wealth fund of Saudi Arabia with a mandate to develop the Saudi

coffee industry. SCC plans to invest over SAR 1.2 billion ($319 million)

in the national coffee sector over the next ten years to increase annual

output from 300 tons today to more than 2,500 tons by 2030. Saudi’s

domestic coffee market was estimated to be worth $1.96 billion in

2021, and is expected to grow to $2.78 billion by 2025.

“It is a pleasure to be partnering with COFE App. Their passion for

the cumulative growth of the coffee industry is very evident, and we are

happy to say that they share both our vision and values. Coffee is a very

integral part of Arabian culture and we wish for the world to witness

it through our efforts. We hope that this partnership is the beginning

of coffee lovers discovering the nuances of Saudi coffee and how it is

ready to compete with some of the best producers in the world,” said

Mohammed Zainy, Marketing Director of Saudi Coffee Company.

As KSA transforms into a digital growing economy with a focus on

locally grown coffee beans this might just be the next big thing in the

evolution of the global coffee market.

Thndr Allows Users to Invest in the top 30 Egyptian companies in one go

Thndr Securities, Egypt’s most popular investment platform, allows

investment in Misr Equity, a CI Assets Management investment

fund with a cumulative return, and has allowed this to be accessible

to its users. The first fund of its kind to achieve a return

equivalent to that of the EGX30 Capped Index is referred

to as MISR Equity C130 on the application.

Thndr platform allows its users seeking investment

in Misr Equity fund to purchase and sell its securities,

recording the latest price of EGP 10.02, with no minimum

or maximum limit. This falls in line with Thndr’s

objective to diversify its investment products offered on

the platform, which will enable its users to expand their

money market investments and acquire benefits that

cannot be attained on their own. Additionally, it offers

both beginner and experienced investors equal opportunity

to put their money in a specialized institution that

is licensed by the Financial Regulatory Authority.

CI Capital, the biggest asset management company

in Egypt with managed assets amounting to EGP 39 billion at the

end of 2021, launched Misr Equity Investment Fund to achieve a

return echoing the EGX30 Capped Index. The Fund invests 90% of

its money in a portfolio of stocks, aiming to a close representation

of the index.

“We are proud to add new and diversified investment products

that cater to all segments of Egyptian society. Misr Equity Fund

(CI30) confirms our pursuit of achieving this goal. The fund represents

an opportunity as an investment tool for those

interested in achieving wealth through long-term investments.

A study conducted by the Egyptian Stock

Exchange in 2018 proved that investing in the 30 biggest

listed companies achieves the highest returns

compared to investing in other saving vessels,” said

Mr. Ahmad Hammouda, CEO and founding partner of

Thndr Securities Brokerage Company. “An investment

of EGP 1,000 per month in the main index of the stock

exchange for a period of 20 years achieves a return of

EGP 2.92 million, compared to EGP 288,000 in the case

of saving without investing.”

The platform currently allows investors to buy

shares in the Egyptian exchanges, as well as trade the

securities of four funds including Azimut Fixed Income

Fund, Misr Takaful Fund, Azimut Opportunity Fund (AZ Opportunities),

and Misr Equity Fund (CI30). As a result, the platform’s users

increased to 800,000, and most recently in November, the largest

number of transactions carried out in Egypt was through Thndr,

with a total of 213,000 trades.


79

bt scene

Juhayna becomes the first Egyptian company to win The Superior Taste Award

from the International Taste Institute

Juhayna’s full cream dairy products won The Superior Taste Award 2022,

one of the most prestigious awards in the food and beverage industry globally,

presented by the International Taste Institute, in Brussels, Belgium. The

evaluation was undertaken by a panel of 198 world-class chefs and sommeliers,

who carry 86 Michelin stars that are awarded to the finest chefs and

restaurants around the world.

Juhayna is the first Egyptian company to receive this award, after undergoing

a sensory evaluation that includes visual, aromatic, flavor, and textural

aspects, as well as final mouth feel. The evaluation process took place over

136 hours of blind tasting that was conducted on thousands of products

from all over the world, with the aim of selecting the best among them.

Passant Fouad, Director of External Communications at Juhayna, stated:

“We are proud to receive this award, not only because it crowns our efforts

in providing products with the highest levels of taste and quality to our

consumers, but also reflects how Egyptian companies are able to provide

products of competitive quality. This indeed puts us on the global map and

strengthens our identity as one of the leading food and beverage companies.

Juhayna constantly works on improving the quality and taste of its products,

while maintaining the characteristics that the Egyptian consumer is accustomed

to in our product portfolio. That’s why we are always keen to provide

100% natural products without any additives.”

Fouad added that Juhayna pursues a strict strategy pertinent to the

quality and safety of its products that revolves around adopting numerous

practices in its factories, which include but are not limited to activating

several internal audits on dairy products. In addition, these products are periodically

tested for quality, totaling almost 9000 tests per day, with a total of

more than 3 million tests annually. The company is always keen to perform

the above-mentioned in order to ensure the safety of its products and their

compliance with the highest standards of quality and taste before it reaches

the consumer. It also pays great attention to the development of its products

backed by a specialized research and development team to ensure that the

company is compatible with the latest technologies that guarantee both

quality and taste.

It is worth noting that Al Masreya,which is Juhayna’s dairy factory has

succeeded in obtaining many quality certificates, including an AA+ rating in

BRCGS Food Safety Global Standard, which has been one of the most stringent

global standards over the past 20 years. The rate that Juhayna obtained

is the highest rating attained by a company in the Egyptian food industries.

The 5th Edition of Cairo Design Award Celebrated Winners from 8 Categories at The Baron Palace

Cairo Design Award (CDA) celebrated its 5th edition during a grand ceremony

attended by the Italian Ambassador in Cairo, His Excellency; Michele

Quaroni, and the Portuguese Ambassador in Cairo, Her Excellency Manuela

Franco, at the iconic Baron Palace Empain. The CDA ’22 edition honored 8

categories of design that included architecture & landscape, interior design,

fashion design, jewelry design, set design, product design, and graphic

design. The Event featured tunes by HOH, CDA ’22 set the seal on the first

edition of Cairo Design Week, which took place across different key landmarks

in Korba over the course of 7 days in the period between 19-25 of

November.

CDA acts as Egypt’s primary platform for local and

international designers through providing an innovative,

all-encompassing community that supports and

celebrates achievements in the design industry. “CDA

has been the destination for designers in Egypt for 5

years, our community has grown since 2017 and attracted

innovators who work to make their visions a

reality. That couldn’t be possible without the guidance

of our jury represented by a lineup of experts who

employed their expertise towards the development

of talents throughout,” said Hisham Mahdy, Founder

of CDA and President of Cairo Design Week, to guests at the gala dinner.

Administered by 7 juries, represented by a total of 14 local and international

jury members, CDA ’22 featured Brendan Macfarlane and Ebtisam

Farid representing the Architecture and Landscape category; Kegham

Djeghaliain and Yasmine Yeya representing Fashion Design; Ghalia Elsrakbi

and Hani Mahfouz representing Graphic Design; Gauthier Guillaume and

Karim El-Hayawan representing Interior Design, Alia Mouzannar and Amina

Ghali representing Jewelry Design; Guillame Credoz and Cherif Morsi representing

Product Design; and Monica Alberte and Mohamed Attia representing

the Set Design Category.

CDA’22 is in partnership with WE, POD, DMC, MO4/SceneHome, V Digital,

Mega FM, 3 Brothers, Marmonil, Hi Lights, FAB Misr, LMD, IMAGE, GLC,

i-Con Smart Solutions and Aroma.

List of CDA ’22 winners:

• Architecture & Landscape: RHY Team (Hussein Hazem, Rania Youssef,

and Youssef Ismail) won the gold award for their design “A Chance,” and

Sarah El-Dawy won the silver award for “E-Waste Colony,” and Wissam

Ayman El -Sawy won the bronze for “Mutated Gardens.”

• Fashion Design: Reem Atout won the gold for her “Teta Chic” collection,

and Almah won the silver award for “Foe-Fur.”

• Graphic Design: Aley Baracat secured the gold

and silver awards for designing the games of “El-

Manseb” and “The Game of Me,” Alia Tobala won the

silver for “Hermoonatek: Ely Mesawahaky,” and Nora

Abushadi won the bronze for “L’Artisan.”

• Interior Design: Mohamed Shebeny won the gold

award for “Be My Eyes,” Two Emms Design Studio

secured the silver for “CO-55_Square One,” and MYS

Architects (Mahmoud Ragheb & Yasmine Ammar)

won the bronze for “Raw – Multipurpose Building in

Cairo Desert Road.”

• Jewelry Design: Sammar El Sawy won the gold for “SeaHorse,” Nada

Elhadad won the silver for “Metamorphosis,” and Kione Art – Yasmine El

Biali won the bronze for “Seismic Restraint.”

• Product Design: Undefined won the silver award for “Eruption Collection,”

Mohamed Mamdouh El Haddad won the silver for the design of “El

Nahla Stool,” and Ahmed Shawky and Mostafa Wagih won the bronze for

“Cleo Chair.”

• Set Design: Salma Taimour won the gold for “Bimbo,” Eslam El Banna

won the silver for “Ramez Movie Star,” and Ahmed Shaaban won the bronze

for “Bioderma.”

80 January 2023


bt scene

With investments exceeding EGP 100 million: Majid Al

Futtaim inaugurates its Mall of Egypt Road in partnership

with the New Urban Communities Authority and

the Egyptian Armed Forces Engineering Authority

Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer

across the Middle East, Africa and Asia, inaugurated the Mall of Egypt Road in 6th of

October City under the auspices of the Ministry of Housing, Utilities and Urban Communities

and the New Urban Communities Authority on December 18, 2022. The sixkilometer

road, established in partnership with the Egyptian Armed Forces Engineering

Authority, witnessed an investment of over EGP 100 million, providing the community

with alternative routes to and from various key locations within 6th of October City and

Sheikh Zayed City. The project also included the road’s lighting and landscaping, further

showcasing Majid Al Futtaim’s commitment to positively contributing to the country’s

infrastructure.

The inauguration was attended by Mr. Adel El Naggar, Head of the 6th of October

City Development Authority, on behalf of H.E. Dr. Assem el Gazzar, Minister of Housing,

Utilities and Urban Communities, Representative Saboura El-Sayed, a member of the

House of Representatives and Assistant Secretary of the Mostaqbal Watan Party, Mr.

Hani Shaker, Chairman of the Security Council, Ms. Hanan Abdel-Azim, Deputy Head of

the 6th of October City Authority, Major General Amgad Anwar, Director of the General

Administration of Giza Traffic, and Mr. Radi Khalil, Deputy Head of the 6th of October

Authority, amongst other governmental figures, in addition to some of the region’s top

real estate leaders.

Adel El Naggar, Head of the 6th of October City Development Authority, stated: “The

implementation of this road is the beginning of a fruitful collaboration between the

Ministry of Housing, represented by the New Urban Communities Authority, and the

private sector, represented by Majid Al Futtaim. The project showcases the Authority‘s

keenness in involving the private sector in the country’s development witnessed during

President El-Sisi’s presidency, specifically with regards to the establishment of new cities,

which the authority is currently contributing to, along with a number of investors; all

with a total investment of 1.1 trillion Egyptian Pounds.“

Diaa Yahia, Country Head at Majid Al Futtaim Properties Egypt, added: “At Majid Al

Futtaim, we strongly believe that entities have a responsibility towards the communities

in which they operate, and need to play an integral role in the development of their

surrounding environment. With that said, we are honoured to host the inauguration

of our Mall of Egypt Road with our esteemed partners, the Ministry of Housing, Utilities

and Urban Communities, the 6th of October City Development Authority, the New

Urban Communities Authority and the Egyptian Armed Forces Engineering Authority,

building on our contributions to the development of the country’s infrastructure.”

Yahia added: “This remarkable milestone is a testament to Majid Al Futtaim’s contribution

to the local infrastructure, which has included the development of over 18

kilometers of roads, two bridges, five roundabouts and two pedestrian bridges; all

during the construction of Mall of Egypt, City Centre Almaza and City Centre Maadi. That

achievement also reflects Mall of Egypt’s vision to provide neighboring communities

with a safe and comfortable journey to and from its premises. Not only can visitors

reach our mall easily, but the local community is now provided with alternative routes

to improve traffic and facilitate commuting. With that said, we hope to continue introducing

partnerships that will support our society.”

Arab social media platform

Baaz launches its

first referral program with

financial rewards in Egypt

Baaz, the first Arabic social media platform,

has launched a referral program that enables

its users to achieve monetary returns by inviting

their community to register on the platform.

Baaz users who have verified their accounts

and have already gained a bronze level

token can now be eligible to receive a dollar for

each referral’s registration. The beta version

of this feature is now active in four Arab countries,

namely Egypt, Jordan, Iraq and Algeria,

with plans to expand in other markets across

the region.

Through this program, Baaz seeks to expand

its community in the Arab world by rewarding

its loyal users with the benefit of reaping financial

rewards on the platform. By hosting the

largest gathering of Arab communities online,

Baaz aims to encourage users to join communities

that discuss similar interests and share

the same passions.

Commentating on the launch, Musab Sharayri,

Chief Executive Officer at Baaz, Inc. stated:

“The team at Baaz has been dedicated to introducing

a unique revenue stream for its users

and content creators, and we are extremely

proud to see this referral program come to

light. Through the launch of this program, we

will be enabling our valued users to monetize,

empowering them to become community leaders

and encouraging them to generate meaningful

discussions across their topics of interest

through a simple and convenient process. We

look forward to continuing to provide our communities

with innovative tools to connect.”

Users who meet the profile of the referral

program are eligible to earn up to USD 200 and

a minimum of USD 50.

To learn more about the program, download

the Baaz application using the following links:

• Google Play:https://play.google.

com/store/apps/details?id=com.baaz.

baazapp&hl=en&gl=US

• App Store: https://apps.apple.com/us/app/

baaz/id1092130570


81

Last Word

““The War in Ukraine War is close to turning

one year old, causing an economic downfall

worldwide...Nevertheless, we will continue the

road of development we have started”

— Egyptian President Abdel Fatah El-Sisi.

82 January 2023


Business Today - Dec 2022 - Jan 2023 issue

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?