A.      Egypt Invest 2006 Conference : 1.     The fourth International Investment & Trade Conference titled “Egypt Invest 2006 “, will take place on the 1st and 2nd of November, 2006 under the auspices of the Egyptian Ministry of Investment. 2.     Under the theme of “ Implementation and Impact “, this year's conference is designed to address more fundamental issues relating to core matters of investment and the development for businessmen and women to invest in the new opportunities that this government's ongoing liberalization and privatization policies have allowed to unfold. Three main sectors will be highlighted from the governmental and private sector side namely: Energy & Petrochemicals, Real Estate & Construction and Information Technology. 3.     Over the last number of years, Egypt Invest has gained a dominant reputation as a serious platform for the business community including high-level delegations from the international and local business community to meet and discuss investment and business opportunities in Egypt with high profile officials and investment experts. 4.     Egypt Invest will feature some of the most influential Investment Houses and allow local and multinational companies in Egypt the opportunity to either raise their proposals in the main agenda and through one-on-one meetings during the event. 5.      An adjunct trade fair under the title of “ Investment Village “ will be held in order to display and promote certain specific investment opportunities.  B.     Moody’s Assessment of the Egyptian banking Sector  1.     In Moody’s latest report titled “ Expectations of the Banking Sector “, this International credit Rating Agency highlighted the positive steps undertaken by the Egyptian government to reform the banking sector. It specifically focused on the restructuring of the public banks as well as the banks’ transparency in revealing the book value of their capital returns resulting from acquisitions as well as equity investment. 2.      Meanwhile, Moody’s predicts an improvement in the classification of the financial capability of the state-owned banks in the medium term, this is attributed to the improvement in the financial and credit capabilities to these banks as well as the expected economic development stemming from the governmental reform program. 3.     On the other hand, the agency rated the overall deposits in the Egyptian banks as “ Not-Prime / Ba2 “, in addition to predicting the future rating for these deposits as “ Stable “.   C.     Cooperation with China : 1.     On the 26th of September, an Egyptian-Chinese joint venture agreement was signed to establish the Egyptian-Chinese Company for Development of the North West Suez Gulf  with an authorized capital of 200 million EGP and an outstanding capital of 75 million EGP. The participating entities in this agreement are The General Authority for Investment and Free Zones, with a share of 50.6%, the Egyptian Chinese Company with a share of 27.7%, the Suez Gulf Development Company, with a share of 16.4%, and finally Misr Bank with a share of 3.3%. 2.     The new company will be responsible for the establishment and management of the new industrial zone according to the provisions the new Special Economic Zones law. This law offers incentives such as a low tax rate amounting to 10% for companies and 5% on wages, in addition to creating a “one-stop shop” for investors that would house all necessary procedures and licenses as well as customs duty, taxes and dispute settlement. 3.     On the other hand, the Chinese government will participate in developing the industrial zone of the North West Suez Gulf through a grant agreement which was signed between the two governments to establish a new “ investors service building “ in the industrial zone. 4.      It is worth mentioning, that the special economic zone in the North West Suez Gulf is considered to be one of the most promising zones due to the possibility of geographic expansion as well as potential diversification of investment activities.  D.       Cooperation with the United States :  1.     As part of the USAID program to Egypt, the Minister of International Cooperation signed ten grant agreements with a total amount of 405 million USD, these agreements include the second amendment of the program for enhancing the ability of the private sector to import US commodities consisting of a 197 million USD grant. The program offers short and medium term credit facilities specifically concerning raw materials and intermediate capital goods. 2.      Meanwhile, on the 27th of September, a grant agreement of 30.5 million USD was signed to support the governmental program for developing water resources.  Moreover, another 30 million USD agreement was signed to improve the water and sewage system in Alexandria and North Upper Egypt governorates, along with the 84.7 million USD fourth amendment of the Agreement for the strategic goal for basic education.   3.      On a similar note, the fourth amendment for the 24.7 million USD Grant for the Strategic goal for improving healthcare and family planning was signed along with the 6 million USD third amendment for developing the financial sector in Egypt and a 7.5 million USD third amendment designated for technical cooperation in the facilitation of the customs procedures and the overall trading mechanism. Finally, the 19.35 million USD second and third amendments to the Agreement on the Strategic Goal of Governmental Management and joint cooperation were also signed.  4.      It is worth noting, that the third amendment of this agreement aims as providing an additional 3 million USD to support efforts exerted by the National Council for Motherhood and Childhood as well as the National Council for Women to enhance the role of women and alleviate child labor.    E.       Developments in the Energy Sector:    1.     The Italian ENI Oil & Gas giant has discovered new natural gas reserves in its concession region in West Balteem facing Mediterranean Coast of Egypt, the estimated reserves from this new discovery are close to 1.5 trillion cubic feet, with a daily production capacity of 30 trillion cubic feet. 2.     This new discovery is bound to encourage ENI’s operating company in Egypt IEOC in cooperation with its Egyptian partner EGAS, to drill additional wells for production and exploration purposes especially considering the new found discoveries in the Nile delta region. 3.     On the other hand, an ongoing expansion of the urban natural gas network specifically in the newly established cities will be undertaken, as part of the national project to provide natural gas to 6 million homes in the coming six years and further explore the non-traditional uses of natural gas in cooling and air-conditioning. 4.     On a similar note, the Gas Cool company – a petroleum joint venture company with the private sector – will establish a new project for heating and cooling purposes using natural gas instead of electricity which could cut off 80 % of all electrical consumption. 5.     This project aims at developing the newest technological advancements in this field through creating technical and administrative expertise in the design, construction, operation, maintenance and promotion phases, as well as the localization of the Egyptian content.  The project has already been implemented in the Smart Village, then it was extended to include the new American University in Cairo campus.