Briefs

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10 companies on the block

NEW life was breathed into Egypt's privatisation programme this week.

The government announced that it was selling its stake in 10 companies with activities ranging from contracting to tourism and textiles. The proceeds of the sales will be used both to pay dues owed by government companies and to pump new investments into companies that remain government-owned.

Two of the 10 companies -- Maamoura for Housing and Development and Egyptian Contractors (Mukhtar Ibrahim) -- are being completely sold off. With the remaining eight companies, the government is selling between 15.4 and 87.9 per cent of its stake.

The list includes Nasr City for Housing and Development, Alexandria Middle Oils Company (AMOC), Medical Professions Pharmaceuticals, Rowad Misr for Tourist Investment, Paints and Chemical Industries (PACHIN), Egypt for Mechanical and Electrical Projects, Delta Sugar and Nasr for Garments and Textiles.

GAFI gets new head

ZIAD BAHAAEDDIN, 40, was appointed chairman of the General Authority for Investment (GAFI) last week. Bahaaeddin, a lawyer, ran his own law firm, and was formerly the legal advisor to the minister of economy and foreign trade. He has also been a board member of both the Capital Market Authority and the National Bank of Egypt.

His appointment is aimed at boosting GAFI's role in attracting investments.

GAFI has also established its own board of trustees, whose purpose is to study potential obstacles to investment, look for solutions, and offer advice and suggestions on how to attract more investments.

The board, made up of 16 members, includes the heads of the General Investment Authority, the Capital Market Authority, the Federations of Industry and Commerce, and one of the deputy governors of the Central Bank of Egypt, in addition to a handful of businessmen and key figures. The board has the authority to review investment development strategy to suggest legislative modifications that would make Egypt more investment friendly.

Promoting standards

THE IMPORTANCE of standards and specifications for the growth of Egyptian industry was the focus of a conference organised by the Confederation of Egyptian European Business Associations (CEEBA) this week. Entitled "Standards and specifications, a trade and investment barrier or an enhancement tool?" the one-day event brought together Egyptian and European analysts, businessmen and government officials to discuss the impact of international standards and regulations, and their significance within the Egyptian economy.

As Industry and Foreign Trade Minister Rashid Mohamed Rashid put it, "complying to standards is integral to Egypt's efforts to integrate into the global economy."

Oliver Nette, the acting head of the European Commission delegation, said that "to be able to export more goods, especially value added ones, you must meet the requirements not only for the local market, but of the world at large." He pointed out that the EU has plenty of experience in the area of standards. "It was their convergence, their harmonisation that made possible the success of the internal market," he said.

During the conference representatives of EU standardisation organisations pointed out the tools and instruments they utilised for gradual adjustment to international standards within the 25 member states.

Joining OPEC

EGYPT and five other oil producing countries may soon join the Organisation for Petroleum Exporting Countries (OPEC). Egypt, Angola, Mexico, Russia, Syria and Sudan currently only attend the body's meetings as observers.

The suggestion that they become members was made during OPEC's meeting last week in Vienna, Austria. Egyptian Petroleum Minister Sameh Fahmi has been quoted as saying that the suggestion will be looked into by Egypt's cabinet in the near future, with an eye towards seeing how far it can commit to OPEC's system and standards.

OPEC is scheduled to hold its next meeting in Cairo in December. The group last met here in 2001.

During the Vienna meeting, OPEC's 11 members said they would increase the group's self-imposed production limit by 1 million barrels -- from 26 to 27 million barrels a day.

Since the group was already exceeding the output limit set at the beginning of the year, many analysts saw the decision as a public relations move meant to slow down this summer's rapid increase in prices.

Crude prices in New York and London climbed to record highs in August, reaching $48.7 per barrel; last week, US crude settled at $43.58 on the New York Mercantile Exchange.

OPEC, which accounts for one third of the world's oil supply, is already producing 27.4 million barrels a day.

ABC one year on

THE ARAB Business Council (ABC) held a two-day meeting in Cairo last week to review the achievements of the group's first year, as well as its programme for the next one. The Council also discussed an upcoming conference in Morocco, which is set to discuss two main issues: investment and intra-Arab trade and competitiveness.

The council's executive committee, headed by Shafiq Gabr, decided to create five specialised working groups to develop certain areas. The first group will focus on developing education and professional training with an aim towards providing Arab human resources with the skills needed to succeed in the work market in the Arab world and abroad.

A second working group will concentrate on invigorating the council's initiative to create a national competitiveness council in each Arab country. Egypt is the only country thus far where such a council has been set up.

The third working group's mission is to create awareness of corporate governance in the Arab world. The fourth group will seek out the policies required for coordination between Arab stock markets, while the fifth group will focus on developing the Arab world's technology sector, enhancing connectivity between communications networks, and developing Arabic content on the Internet.