Egyptian Economic Performance(23/1/2007)  A.      Egypt participation in The World Economic Forum In Davos 1.      The prime minister will lead the Egyptian delegation participating in the World Economic Forum that will be held in Davos during the period from 24 th to 29th of current January. The forum will be witnessing a wide participation from 25 heads of states and governments and 150 ministers as well as a large number of businessmen and heads of the largest companies in the world. 2.      During the forum, the prime minister will hold several meetings with a number of heads of states and governments in addition to heads of major international economic establishments, presenting the Egyptian economic reform program and the latest amendments of the economic regulations which succeeded in improving the major macro economic indicators; mainly, the growth rate, inflation, budget deficit and FDI inflows, in addition to the social and political reforms. 3.      On the other hand, there will be an elaboration on the available investment opportunities in all the economic sectors especially tourism, technology and industry as well as the incentives offered to foreign investors.  B.     Business Monitor International (BMI) Report on The FDI in Egypt  Business Monitor International (BMI) has recently issued a report on FDI in Egypt, including the following: 1.      FDI is expected to increase to reach between 7.5 and 8bn USD during the fiscal year 2006/2007, which is consistent with the government's projections. 2.      The report appreciates the continuous increase in FDI to read 6.1bn USD in 2005/2006 in spite of the relative retreat in liquidity in the region. 3.      The report highlights the major investment deals that have lately taken place especially the selling of Bank of Alexandria, the Sidi Abdel Rahman deal and the third mobile operator license. 4.      On a similar note, the report highlights the government commitment to implement the reform program and the privatization process including public-private partnership (PPP) which has recently been introduced in education as 50 schools were offered for PPP. 5.      Portfolio investment is also predicted to witness a significant increase in the near future.  C.Cooperation with United Arab Emirates  1-      On January 8th, following its official qualification by the Egyptian Industrial Development Authority, the Emiarti company "Eemar for Industry and Investment"- a subsidiary of "Eemar For Real Estate"- announced its participation in the bid for developing a number of industrial zones in Egypt. The company has already made studies for 4 cities; namely, 6th of October, 10th of Ramdan, Sadat and Borg ElArab. The company will be concentrating on environment-friendly industries such as medicine and food industries. Meanwhile, the company is willing to postpone making its decisions concerning bids for developing other zones. 2-      On the other hand, "Amlak Leasing"- the largest Islamic leasing company in UAE and the financial arm of "Eemar for Real Estate"- has announced its intention to inaugurate its branch in Cairo by the end of this month under the name of "Amlak for Leasing and Real Estate Investment". The company aims at fulfilling part of the demand- supply gap in the housing sector which amounts to 2.5 million units, while offering leasing services compatible with the Islamic law (shariaa). 3-      It is worth mentioning that "Eemar For Real Estate", which the mother company for both "Eemar For Industry and Investment" and "Amlak Leasing", is considered to be the largest real estate company in the UAE and is currently implementing a number of mega real estate and touristic projects in the Egyptian market, most important of which are Sidi Abdel Rahman at the North Coast and the expansion of the Library of Alexandria. This is accompanied by a trend undertaken by the Emirati real estate companies to increase their investments in Egypt including Eemar, Dubai Holding Company, Al Futtaim in addition to Damac that is currently establishing a tourist complex in Ghashma Gulf in Hurghada over an area of 320 cubic feet. Moreover, the Emarati "Limitless" is participating in a bid for a public owned land in Ein Alsokhna in order to establish a project for medical tourism. 4-      Meanwhile, on December 25th, 2006, the Emirati "Al Thani Corporation" signed 2 agreements for petroleum and gas exploration in South Siwa at the Western Desert and East Magawich at the Eastern Desert. The company is operating in Egypt for the first time, with a plan to expand its activities in Egypt following its acquisition of "Centurion" International Energy Company which has large contributions in the exploration and extraction of natural gas in Egypt. 5-      These developments reflect the interest of business circles in UAE to increase their investments in Egypt, taking into consideration the positive implications of the Prime Minister visit to UAE last December as well as the improvement in the business climate. Thus UAE has become one of the largest Arab countries investing in Egypt preceded by Saudi Arabia and Kuwait.  D.  Cooperation with India  1-      Within the framework of the Indian interest to expand its investments in Egypt, the executive director of "EFCO" group which is the major Indian company for fertilizers held a meeting with the Minister of Investment, presenting the company's projects in Egypt, the most important of which is the fertilizer project in Idfu, Aswan for a total investment of 400 million USD, and an upgrading plan for a cost of 850 million USD to produce Ammonia. The project was established by the Indian company in partnership with "AlNasr Minery" company, which is part of the Holding Company for Metal Industries.   2-      Additionally, the company is currently implementing a project for producing phosphate at a production capacity of 2million tons per year with a total investment exceeding 70 million USD. 3-      On the other hand, the Indian group is willing to implement new projects in the near future, among which is the development of Hamrawaen port on the Red Sea for 60 million USD which is estimated to be completed by the end of 2009. E. Development in The Energy sector                                                                                                          1-      "The South Valley Petroleum Holding Company" has terminated the 3rd international bid including 4 areas in the Western and Eastern Deserts and the Red Sea, as 9 international companies participated and 3 were chosen to conclude the agreements; the British "Amnex", the Australian "Pan Pacific" and the Emarati "Al Thani". Meanwhile, the company is offering its 4th international bid in 8 areas in the same regions. 2-      On January 16th, the Minister of Petroleum held joint talks with the Jordanian Minister of Energy and Mineral Resources, during which they discussed increasing and developing cooperation spheres between Egypt and Jordan in the fields of petroleum, gas and mineral resources. It has been reviewed the follow up of the work progress in the second phase of the Arab Gas Pipeline project implemented by the Egyptian petroleum companies, and the contribution of Egyptian gas to the provision of the needs of Jordan and feeding electricity stations and industrial zones with natural gas. Both Ministers reviewed what has been accomplished in the third stage of the Arab gas pipeline, currently being implemented to start the export of Egyptian gas to Syria, where the Syrian Cabinet approved the import of Egyptian gas through the Arab Gas Pipeline. 3-      A contract for the allocation of the construction of the first factory for "Ruherpumpen / Egypt" company in the governorate of Suez, was signed for a capital of 20million Euros, with the participation of the Petroleum Sector's companies (Egyptian General Petroleum Corporation, Enppi, Petrojet, El Nasr Petroleum Company) with a share of 33% and the German company "Ruherpumpen'' with a share of 67%. The factory is regarded as the first of its kind in the Middle East to produce such types of pumps which are needed in the domains of petroleum and gas industry in light of the significant progress it witnesses. 4-      It was agreed upon the establishment of a petrochemical company in Port Said with a joint Egyptian Arab investment of 650 million Euros for the aim of producing propylene instead of importing it. 5-      On the other hand, within the framework of increasing petroleum and NG reserves, 6 new discoveries have been accomplished in the areas of the Gulf of Suez, Western Desert, the Mediterranean and Eastern Desert, which are estimated to add about 140 million barrel of crude oil and condensates and 1.5 TCF of gas.