By Sherine Abdel-Razek The market is still looking for direction: one day of losses followed by another of gains while the range of movement between is relatively narrow. Meanwhile, the activity of individual local investors compared to institutions and foreigners has increased, a feature read by many as an indicator that the market is gaining confidence. On the macro level, the economy is showing positive signs. Egypt's tourism revenues declined by two per cent in 2009 compared to the previous year to reach $10.76 billion. The decline is better than the 20 per cent decrease expected for the year, a fact that Minister of Tourism Zoheir Garana lauded. "We see signs of recovery," he told reporters. "Since September we have seen positive growth." Expansion this year will be "significant", though conditions will remain tough for many in the industry, Garana said. ORASCOM DEVELOPMENT HOLDING (ODH): The Swiss based company's subsidiary in the economy housing market, Orascom Housing Communities (OHC), is in negotiations with Iraqi authorities to buy land for a budget housing project. The company is to choose one piece of land out of two plots it is currently eyeing, the first of which is in Taji in central Iraq and the second in Basra in the south, each plot nine million square metres. The decision will be based on the price Iraqi authorities will set for the two plots. Iraq is trying to line up at least $30 billion in housing and commercial development projects in the next decade as it rebuilds after years of war. OHC has developed budget housing communities in Egypt and is studying similar projects in Jordan and Yemen. ODH, which is listed in both the Egyptian and Swiss stock exchanges, specialises in building and managing mixed-use resorts and hotels. On another front, ODH's CEO, Samih Sawiris, denied rumours that he is in talks to buy The Independent newspaper. The Guardian newspaper published a report early last week stating that Sawiris was liaising with London Evening Standard owner Alexander Lebedev to buy a stake in The Independent and The Independent on Sunday. "I had previously been unaware that The Independent was even up for sale, and had certainly never expressed any interest in buying it or being involved in buying it. If I had that much spare money, I would use it to buy a boat, not a newspaper," Sawiris told The Guardian a day after it published its report. EGYPTIAN IRON AND STEEL: The 93 per cent state owned company posted a net loss of LE320 million for the six-month period ending December 2009, compared to a net profit of LE2 million on the corresponding period in the previous year. The head of the Holding Company for Metallurgical Industries, the parent company of Egypt Iron and Steel, was quoted in the press as saying that the reason behind the decline is fierce competition from imported Turkish steel, especially after the Turkish government depreciated its currency to increase exports. EFG-HERMES: The largest publicly traded Arab investment bank said it is preparing to run an initial public offering (IPO) for two companies during May and June. The bank did not specify the companies or the sectors they belong to. Karim Awad, manager of investment banks at the EFG-Hermes Group, stated that he expects the IPOs to attract investors as the companies offered belong to different sectors and to new industries that do not exist in the market. The last IPO seen in the local market was that of the financial group Pioneers in mid-2008. On a different note, EFG-Hermes has expressed interest in buying the operations of the Royal Bank of Scotland (RBS) in Pakistan. A spokesman of the bank said he was approached by the group for permission to start due diligence of RBS. An EFG-Hermes team visited Pakistan recently to explore investment opportunities. CEO Yasser El-Mallawani told Reuters in a recent interview that the bank had $1.2-1.3 billion of spare capital after it sold its 28 per cent stake in the Lebanese Bank Audi and that it would use the money to venture into new banking businesses. Orascom Telecom Holdings last year expressed interest in RBS Pakistan -- a move it said would allow access to the mobile banking market while locally it operates the mobile network Bengalink. GB AUTO: The leading automotive assembler and distributor in the Middle East and North Africa agreed with Iraqi Al-Kasid Group to establish a joint venture in a free trade zone in Jordan to distribute private vehicles in Iraq starting the second quarter of 2010. GB Auto will be the administrative manager of the new venture while Al-Kasid will provide basic resources to the project, which costs $80 million and is owned by 50/50 by GB Auto and Al-Kasid. According to the agreement, GB Auto will import and distribute a wide range of Hyundai vehicles and spare parts in Iraq. Sales of the venture are expected to reach around 36,000 vehicles within a year of operations. MARIDIVE: The oil services company has formed a support services venture with the French oil company Total. The new venture is currently seeking a $220 million oil exploration and production licence in Cameroon to take advantage of an upturn in oilfield services demand. "This is the best time to invest in new equipment and marine units, because costs are low due to recession," Issa Eleish, head of the company, told Reuters. "My plan is to build three to four vessels and another barge to be delivered around 2013-2014." Maridive owns over 60 marine units and has contracted to receive around six vessels and one barge by 2012. "I am very optimistic about the market, and I am continuing to build new vessels, preparing myself for the market's upturn," said Eleish. He forecast an upturn by early 2011. "If oil prices trade above $80 a barrel, companies will speed up their projects. And if they trade over $100, they will open up new projects," he said. ORASCOM TELECOM HOLDING (OTH): The Lebanese regulator extended OTH's management contract of Alfa network for another six months concluding end of July 2010. The decision came after the number of subscribers in the network reached the one million mark. Under the management contract, OTH receives a monthly sum of $2.5 million in addition to 8.5 per cent of total revenues. In return, Orascom Telecom is liable to cover all operational expenses (OPEX) of the network and is entitled to keep the remainder as management fees.
