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Reference ID	Created	Released	Classification	Origin
09CAIRO1440	2009-07-27 15:03	2011-02-16 21:09	UNCLASSIFIED	Embassy Cairo

VZCZCXYZ0004
RR RUEHWEB

DE RUEHEG #1440 2081503
ZNR UUUUU ZZH
R 271503Z JUL 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3274
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS CAIRO 001440 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: JULY 27 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: --------------------------------------- Tax Revenues Increased 21% in FY2008/09 ---------------------------------------

2.(U) Egypt's tax revenues increased 21% to LE140.5 billion (US$25.27 billion) in FY2008/09, with LE89 billion (US$16 billion) from income taxes and LE51 billion (US$9.16 billion) from sales taxes, compared to LE76 billion (US$13.67 billion) and LE42 billion (US$7.55 billion) in income and sales taxes in FY2007/08, respectively, according to the chairman of the Egyptian Tax Authority, Ashraf Al Araby. He added that the global financial crisis did not impact tax revenues in FY2008/09, although he expects it to negatively affect tax revenues in the current fiscal year due to the drop in real growth and decreased private sector earnings. (All newspapers, 7/20/09) -------------------------------------------- Egypt Sets Targets for Food Self-Sufficiency --------------------------------------------

3.(U) Amin Abaza, Minister of Agriculture and Land Reclamation, announced that Egypt aims to reclaim and cultivate around 4.2 million acres of land by 2030 in order to achieve self-sufficiency in strategic crops, including wheat, maize, and sugar, at a total investment cost of LE34 billion (US$6.12 billion). Moreover, he added that Egypt is planning to increase the total area of wheat cultivation 33%, from 3 million acres to 4 million acres. (Al Masry Al Youm, 7/20/09) -------------------------------------------- Egypt and Russia Discuss Nuclear Cooperation --------------------------------------------

4.(U) The Egyptian Minister of Electricity and Energy, Hassan Younis, met with the head of the Russian Atomic Energy Agency, Sergei Kiriyenko, to discuss ways forward for bilateral cooperation on nuclear power plants and technical training. Egypt and Russia agreed last year to significant Russian support for Egypt's nascent nuclear energy industry. (Al Ahram, 7/19/09) --------------------------------------------- ----- Government Postpones Fixed-Line Phone Tender Again --------------------------------------------- -----

5.(U) The Egyptian Ministry of Communications and Information Technology (MCIT) again postponed the sale of a second fixed phone line operator license, citing continued financial turbulence and slow recovery in capital markets. The sale of the tender would end Telecom Egypt's current monopoly over the market. The Ministry had previously delayed the tender for a year in September 2008. However, according to MCIT statements, the Ministry is expected to revisit the issue over the next several months. (Al Mal, 7/19/09) TUELLER

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Viewing cable 09CAIRO1440, EGYPT'S ECONOMY: JULY 27 PRESS ROUND-UP