VZCZCXYZ0091
RR RUEHWEB

DE RUEHEG #1913 2781451
ZNR UUUUU ZZH
R 051451Z OCT 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3783
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 001913 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: October 5 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
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GOE to Cut Energy Subsidies within 5 Years 
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¶2. (U) Minister of Finance Youssef Boutros Ghali indicated in a 
conference call organized by the investment bank Beltone that the 
Government of Egypt is planning to phase out subsidies on most 
energy products by 2014. The Ministry of Finance estimates that 
current petroleum product subsidies will cost the government LE 33.6 
billion (US$6.11 billion)in FY2009/10 (Al Shourouk, 9/30/2009). 
 
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Highlights of the Euromoney Conference 
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¶3. (U) The Egyptian press widely covered the Euromoney Conference in 
Egypt, which featured a roster of GOE speakers including Minister of 
Investment Mahmoud Mohieldin and Minister of Trade and Industry 
Rachid Mohamed Rachid. Mohieldin told the conference he expects real 
GDP growth during FY2009/10 to be between 5% and 5.5% and he expects 
Foreign Direct Investment inflows of US$10 billion in FY2009/10. 
Mohieldin announced the introduction of new public-private 
partnership and bankruptcy laws that should facilitate private 
investment in infrastructure and ease the process of closing a 
company. Rachid announced that he expects trade will recover by 
10-15% by FY2010/11 and asserted that the recovery will result from 
an increase in both the value and volume of Egypt's exports. (Al 
Ahram, Al Akhbar, 9/30/2009). 
 
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Societe Generale Intends to Expand in Egypt 
------------------------------------------- 
 
¶4. (U) Fredrick Odes, CEO of the French banking group Societe 
Generale, says the group intends to expand in Egypt. He says the 
Egyptian market has strong potential given its youthful population 
of 80 million, and its continued growth amidst the financial crisis. 
Societe Generale plans to open twenty new branches in the next two 
years. (Al Alam Al Youm, 9/27/09). 
 
Scobey