Egyptian Economic Performance (23/5/2007)   Euromoney Egypt Housing Finance Conference:   Under the patronage of the Ministry of Investment and the Mortgage Finance Authority, Euromoney Egypt Housing Finance Conference was held in Cairo on the 14th of May 2007. The Minister of Investment together with the Minister of Administrative Development, local and foreign experts and representatives from banks, investment and mortgage companies participated in this event. This conference addressed aspects related to mortgage financing as one of the branches of financial services, which plays a significant role in activating real estate investment, which is vital for the growth of the Egyptian economy. The Minister of Investment highlighted the relevant policies which were taken, where the most important of them were: Modifying the executive procedures related to the mortgage law. Carrying out a project in cooperation with Ministry of State for Administrative Development to register 25 thousand units and to coordinate between the government authorities in order to allow information flow through computer networks. Facilitating the mortgage registration procedures and reducing the fees to be at most L.E.2000. Improving the Mortgage Finance Authority and training its cadres. Alternatively, it was stressed that the mortgage law does not ban foreign possession of real estate, also there are not any restrictions on foreign investments in this field allover Egypt except in Sinai, as well as assuring the importance of attracting foreign investment in mortgage funding. Furthermore, the conference tackled the increasing national and Arab investments in this domain. It is expected that the number of new companies in the market of mortgage financing may reach more than ten new companies, which will eventually provide new financial opportunities to the citizens allowing them to choose the most suitable for them according to their incomes. This comes with the results of a study prepared by the Mortgage Finance Authority that illustrates that the Egyptian real estate market needs around 2 million units in the next 10 years to fill the gap between the supply and the demand. From his part, Director of the Financing and Housing Group in the IBRD Mr. Luik Shekor expects that the growth rate in mortgage financing system should reach 5%  of the total GDP in case it continues to grow in the same rate as the past period, pointing out that the current rate is still too week, as it is only 0.02% of the total GDP. On the other hand, the financial mortgage problems were tackled, on the top of which were the high interest rate, the shortage in data on the financial situation of the citizens, the financial bank guarantees and insurance on the long run, and the gap between the supply and demand on housing units, due to the availability of luxurious housing rather than medium housing that is demanded by the greatest portion of the Egyptian society. The officials in the banking system stated the various risks concerning financing mortgage, which necessitates the support of the Central Bank and the clients credibility. The Turkish experience was presented, as an example of overcoming the financial mortgage problem, through encouraging the financial institutions - that preferred not to provide loans for housing - where they were able to reduce the interest rate and agree on a profit percentage for the financing institutions as well as assure the availability of data on the client.  The Facility for Euro-Mediterranean Investment and Partnership (FEMIP) Ministerial Conference: 1-        Egypt participated in the 7th Facility for Euro-Mediterranean Investment and Partnership (FEMIP) Ministerial Conference held in Cyprus, from 13-14 May 2007. The Egyptian Delegation was presided by Minister of International Cooperation Mrs. Fayza Aboul Naga. The conference discussed the performance of the facility in 2006 and the Euro-Mediterranean Facility strategy for the years 2007/2013 aiming at supporting the small and medium projects as well as increasing the European investments to the South Mediterranean countries, including Egypt, within the framework of European Neighbor Policy. 2-        On the other hand, the meeting discussed the outcomes of the conference on financing the transportation network to overcome the challenges facing the Euro-Mediterranean economic integration held in Monaco in November 2006 and the conference on the money transfer for the immigrants in Euro-Mediterranean area held in Paris in March 2007. 3-        Concerning the Egyptian situation, the Minister of International Cooperation emphasized that the Euro-Mediterranean Facility should not issue any minimum standards to finance the small and medium projects, as the local legislations could be used as a guideline for each country. She asserted that the conference adopted the Egyptian recommendations, among which were enhancing the facility tools to increase its ability to overcome risks, in addition to intensifying the coordination between the European Bank and the international financing institutions working in the same region.   The Meeting Of Minister Of Finance With Egyptian-French Businessmen Association: 1-       During H.E meeting with the Egyptian – French Businessmen Association on the 13th of May 2007, Minister of Finance Dr. Botrous Ghaly assured that the economic growth rates are expected to reach 7.5% in the coming year. He added that by 2010 the economic growth rates are expected to increase gradually to reach 10%, illustrating that the reason behind this increase is the augmentation of local and foreign investment, increase in consumption, and increase in exports. 2-       He mentioned that the foreign investment reached 10 billion dollars, also the local investment increased by 30% compared to last year rate. He added that the exports increased by 46% compared to last year rate, in addition to augmentation of the local consumption by 8%. He illustrated that the growth rates are sustainable due to the structural reforms taken by the government in the last period. 3-       H.E added that there was a surplus of 1.9 billion dollars in the current balance of payment in the first six months of the financial year 2006/2007 compared to the 1.7 billion dollars surplus reached in the past 12 months in 2005/2006 financial year. Also, he mentioned that there was a 2.9 billion dollars surplus in balance of payment in the first six months of the financial year 2006/2007. 4-       He stated that the inflation rate is 11% , where he justified this increase due to several external shocks as the avian flu, Mouth and Feet Fever (MFF), global rise in price of energy and reduction in production of some crops. He added that the inflation rate is expected to decrease to 9.7% in the next month, and to reach 8.5% by the end of August. 5-       H.E expects an increase in the credit rates to the private sector in the coming period, as it is now between 7-8%  and needs to reach 12% to cope with the increase in economic growth rates. He added that the present reforms in the banking system will contribute in providing the market with the demanded credit with convenient and fair prices.   The 4th International Conference And Exhibition For Oil And Gas: 1-      On the 15th of May, Minister of Petroleum Eng. Sameh Fahmy together with Minister of Energy of UAE, Head of OPEC and Minister of Petroleum of Kuwait inaugurated the 4th International Conference and Exhibition for Oil and Gas, with the participation of 49 countries representing 300 companies together with the attendance of 1000 oil experts from all over the world. 2-      The conference discusses the managerial techniques of large oil companies, the financing of energy projects in Egypt, Egypt's role in international natural gas market, improving the  performance of oil sector, achieving effective management of health, environment and professional safety and petrochemical industries as well as holding technical sessions discussing the latest scientific researches in oil industry and the viability of its application, and improving the performance in all the discovery phases, production, transportation and distribution . 3-      H.E assured the importance of having a common Arab strategy in oil and gas sector in the coming period to cope with the international changes in the energy market, especially concerning the insurance of energy supply and the growing interest of the key European energy consuming countries to form a working group able to  manage energy crises in the future. Nevertheless, Latin American countries should establish an assembly to encourage cooperation between themselves in oil and gas sector in addition to cooperating and coordinating with the major energy consuming  industrial countries and the producing countries in order to reach a balance in oil and energy market. 4-      The Minister referred to Cimed project, which is a successful example for Arab cooperation between Egypt, Saudi Arabia, Qatar, Kuwait and UAE. This project achieved a series of great successes crowned last year when achieving the highest net profit exceeding 200 million dollars with a the total capital of 400 million dollars. He highlighted that a study is being carried out to improve the Cimad project through adding storage of petroleum products. 5-      He mentioned that the time has not come yet to establish a gathering similar to OPEC for natural gas,  which goes back to the long term export gas contracts and the natural gas export prices are not known as it is the case with raw oil. He assured the importance of coordination and cooperation between the producing and importing natural gas countries.