Finance ministers about the Investment Strategy in the face of loyal oil prices facebook of lower oil prices. First, he was critical of the eu saying turkey was tired of being treated like a wayward student and calling for greater honesty on thei. Provide Financial Support for over 3 million refugees in turkey and the visa waiver, these have been left in limbo. There was supposed to be a support of 3 billion euros. The amount sent is 790 million. It whereen a year or is 3 billion euros. The visa waiver was going to build implemented at the end of june last year. Theres nothing to be seen. That is also not going to happen. In addition to all of this, we see fingerpointing at turkey with instructions to do this and not to do that, as if they are the teachers and turkey is their student. That kind of thing will not be accepted by this nation. The interest for the eu and turkey. We think this has been intentional. They cannot say they dont really want us in the union. They are trying to distance us with these actions. We have not entered and are not in a position to exit it. Are you interested in continuing to push for membership, or are you changing your mind and want to go with different path . What is your ideal solution . We invite the European Union to honesty on the issue of membership, first of all. They shall determine their vision of the future first. Will they continue to walk with turkey or not . We will see their decision and determine our own path. There are elections in some members of the eu now. The rhetoric is very different. We will see of those different types of rhetoric will continue after the elections are not. Or not. It is clear what some members of the eu did before the referendum. Therefore, the eu should determine a future vision for itself before these things can proceed on a healthy path. It should put forth what kind of path and wants to walk on with turkey, or wont. This nation needs to find out what goes on in their heads. Do they see europe as a union of religion . They need to put it forth earnestly. If they have the idea that a nonchristian country has no place in this union, otherwise there no point in both sides wasting time. Tracy we hear from the finance abouter of qatar consolidating 2 sovereign wealth funds and consolidating a giant. This is bloomberg. Tracy welcome back to the best of Bloomberg Markets middle east. The catch our finance ministers is performingry to expectations. He also said taking a longterm approach and teaming up with key to atners has been qatars successful projects in the u. S. In 2015, there was no discussion of the investment and infrastructure. We like what we see in the u. S. , infrastructure, and we will look forward to doing more things. When you think about investments, do you think of it is a typical portfolio manager, or the way governments would foreign aid . To wield influence in a certain region . , itf you look at what we do is truly commerciallydriven we go where we think we will have value. It also goes with asset diversification, currencies, we like what we see here. We have performed well in the last two years. Hopefully, we can continue that same strategy the u. S. In the market we have today that is risk on and risk off, how do you find diversification . 20082009, what we did in europe and other parts of the world, most investment is longterm strategy and holding. That is how we would like to look at it in the u. S. We have seen the markets rally in the last three or four months. We are happy with it, and will continue investing here. Work, do youney to look for some of the large Venture Capital firms in silicon asley to partner with them they go through startups and joint ventures . Most of our ventures here are through partnerships with people. I just came from washington, d. C. We have a Real Estate Investment there. When we started this, it was a difficult project on paper. We moved in. Best it is one of the projects we have in the states. This is the way we would like to see more investment in the u. S. If we cant find the right partner. Financial times is reporting it is a deal for lower oil prices, you are rolling in safer assets to diversify. Can you confirm that . Standyou look at where we enjoyingices, we are 52, this is average. We are comfortable with oil prices. Others manage much lower oil prices. We are comfortable with where we see the oil prices. For our budget, we are expecting a minimum deficit. If oil prices remained in this range, we are close to our breakeven point. Is making financial changes. It looks to bring its economy in line with conditions to a loan from the imf. Poke with we are rebranding egypt, improving the business environment, making sure more investment comes from the u. S. And other countries. We are putting Forward Investment loans. Mainly to remove the bureaucracy which investors have had concerns about. There has been concern about the rule of law for Foreign Investors coming in. What is the timetable for those reforms . We are moving very fast. We know it is time sensitive. They are discussing the beentment, it has finalized in the assembly. The other is in the pipeline. Were looking at the legal framework. It is not only the investment, it is others that are in the debt inclusion. Three days ago we amended the that weatherow dress many concerns regarding minority shareholders rights, for example. Allowing new Financial Products to allow for diversification and financial inclusion. That is one problem the private sector has faced in the last decade. A egypt has been given guarantee on the loan from the imf. Do you have an estimated time on when the third will be released . We have been working closely with the world bank on the program that supports Major Economic reforms, unprecedented reforms, that have been labeled as the most ambitious in the region. We have 2 trenches based on a program that is homegrown prepared not only by the government, but in consultation with people. Stakeholders, the private sector, and discussed extensively. , i met with the managing director of the vice president. We were there finalizing the package that focuses on improving the Business Climate and government. That is one area that Political Leadership is dedicated to accomplish. , if you are going to predict is it weeks or months for the third tranche . Another four months to finalize. We just released the second tranche. The operation process of the bank is there is a time tranches. Een the. We are joined by the founder it is great to have you back on the program. We just heard some of the realities when it comes to Foreign Investments in egyptian equities. You can see in terms of net flows, inflows into egyptian equities, one side of a recovery story. Is the country doing enough to make its case to the Global Investment community that this is a place that is stable, where you can find yield all your capital . The inflows follow the depreciation of the ejection pound. Everyone anticipated a big depreciation. Outflows, now you have inflows coming in accompanied by broad reform. Taxation, Capital Markets law, investment law. There is a broad reform agenda. It is encouraging to get a professional, an economist by formation. It is good to have a woman in charge, i might add. What do you see is the egyptian economy responding to these measures. They are hard measures. There is a cut offer subsidies. Jcurve. L be a read the beginning of a turning point. Curve. J the imf said you might have to look at Monetary Policy tools to curb the inflation levels. 13. 9 yearoveryear in march. Is the Central Bank Going to step in . Ofthere has been a buildup reserves. This comes as a result of the depreciation. There is a beginning of a return in confidence. The financialnd institutions and the countries of the gulf sea egypt does a country that is too big to fail. Next, more acquisitions in the pipeline. This is bloomberg. Tracy welcome back to best of Bloomberg Markets middle east. In sevenirst time quarters, shula capital has returned to capital and are embarking on a path of acquisitions. The chairman told us about the companys plans. The main issue in the past has been the portfolio. We focused on streamlining the has beenrtfolio that improved tremendously. It has been the largest contribution or stick q1. Contributors to q1. We made the company more efficient. All of this is a positive. Q1 is just the start, hopefully. Up more than 100 over 12 months. It is difficult to aggregate that a better Financial Performance from some of the acquisition rumors around the company. Can you tell us if you are thinking about doing something with gfh . If not gfh, what do you have in mind . Part of the global strategy is to grow through m a. That has been announced as part of the new strategy. We considered a merger with gfh. We always look at opportunities for acquisitions that will be beneficial to shareholders. This is something we look at. I expect in the next weeks or months we will hear something regarding acquisition. Great to have you on the program. In terms of gfh, what are the talks looking like . What is included . We have had a few discussions in the past. We have stopped discussions at the moment. We are focusing on other aspects of the group. A lot of conservations and acquisitions in the pipeline for gfh. We might revisit talks of they merger between shauaa and gfh, but there is nothing certain at the moment. At 2017 and going forward, given the geoPolitical Risks in terms of rising restrictions,rade travel restrictions, where are you prioritizing Asset Allocation . Past two years, since the start of the decline of the oil price, we have seen an opportunity of asset repricing. Is the focus currently. I believe over the next 24 months we see a lot of opportunity. , compared to anywhere else globally, is the best at the moment. Do you expect more brokerage activity . Ideas to move into Asset Management since you are as bullish as you are as a company, when it comes to saudi arabia and egypt . Has been in Financial Services and investment banking, Asset Management. Our strategy is to revive that. Is something we are considering for saudi arabia and egypt for shauaa. Will terms of what rekindle more transactions in this part of the world, what will be the next catalyst . Domino effect a in the gcc and africa as well . 2017. Are optimistic for i believe q2, q3, and q4 will be more active. Theme will be mergers and consolidations. This is important. It started last year, and we will see more this year, and next year hopefully. This will be the catalyst for future activity in the region. Chairman, there is one more big thing in the markets, the capital,o foreign especially in saudi arabia. Even in abu dhabi we have seen efforts to attract foreign liquidity. Has that been successful . If not, what more can be done . It is the most country that in the gcc. Similar steps have been taken by gcc countries. In my opinion, this will work out well. The region is attractive for foreign investment. Inot of change is happening frameworks to be more amenable. With this opening to more foreign capital and your own turnaround at shauaa, who do you see as your main competitors in the region . A very good question. I dont inc. We have competition in the region. That is why we have taken over shauaa, because there is a huge gap in the market. There is no serious player. We will be the first serious player. Were waiting for competition, which is something positive if it happens. Put it aside for second, and if you could run me through your priorities outside of the middle east investment spectrum. What is interesting when you story, the brexit continental europe, the story in turkey . U. K. And know, the london, specifically, is an important focus. Cheaperthere is a dollar, which is interesting for investors from countries like the gcc. We are focusing on Real Estate Developments in london. This is something we will continue. It is something we like and is working well for us. You will see more focus in the u. K. Does that mean additional acquisitions are on the table, additional expansions . Absolutely. We have been looking at opportunities for the u. K. , specifically london real estate. We are actively in discussions and seeking to consolidate and expand in the u. K. Andow much can you go out chase expansion plans . How many millions of dollars are ready to deploy . Say it is not about the amount that we set aside. It is the opportunities that present themselves. The opportunities there. We will be going after them. For specifica set acquisitions to be made every period. As opportunities arise, we will go after them. This is what we will continue to be doing. A few years ago egypt had a Tourism Industry worth 12 billion dollars. Political unrest and terrorist attacks cut that in tracy welcome back. Im tracy alloway. As agent tries to come out of years of turmoil, toryism could be crucial to their success. 12 ofustry has employed the working population and contributed 12 billion to the economy every year. We spoke with egypts tourism minister, mohamed rashed. Mohamed we have to look at it in the right perspective. Generalns terrorism in is a global threat, is not actually, you know toward egypt only. We saw what happened in paris last week, what happened on and on and all these different capitals of the world. I think with the efforts that the Egyptian Government has put together to offset all of the trials that have been in place, i think we have done a good job. I think doing a good job means we really are prepared to cut them off and make sure that people are comfortable coming to egypt. Yousef we have specifics in the numbers, you have an ambitious plan and the chart tells us where we are. Where do you want to go, where do you want better to be in a year or two years . Mohamed the last quarter of 2016 has moved up comparatively. Firstquarter seems to be very optimistic, you know, in terms of the number of tourists, it is growing in the right way. Tourism in coming is growing as well and therefore the market sources we are relying on now is well diversified to catch up with the desired growth that we have in place. Rashaad minister, when we look at these numbers, lets go back to 2003. Have a look at that, i have a chart that goes back. The levels since 2004, the point is how do you make egypt attractive again for people to visit . Toryism, weterms of all know this tourism, we all know this, number one we need to make sure that people understand where we position egypt in general. It has been well positioned for the people to return back the traffic in the right way. Positiveeen a lot of media as well and quite a lot of celebrities coming to egypt. All of this has helped the public image of egypt. One must say that we need to grow all the different aspects of the economy, but tourism is element on important the egyptian economy. Rishaad it is one of the cradles of civilization, the magnificent monuments across egypt going beyond that, there were a lot of russian tourists, are they coming back now after the referendum, shooting on the aircraft by militants . Mohamed one must understand we would love to see russians coming back very soon, but we are also depending on other markets. What we need to know is, you need to grow the different markets to upset any of the markets that actually have gone down. Yousef what about interest you see in the country . How is toryism spread out tourism spread out . Tourism, or the beach tourism keeping the numbers afloat . Mohamed i think it is the culture of tourism. The ability to grow. Cairo, we areses, seeing this growing and we saw it in the last quarter of 2016 and the First Quarter of 2017, and this is an indication that people are coming back to that trend. There is also indication that people see the threat of security as a global threat. Yousef in the past five years, the beach tourism was oil is performing slightly better than the cultural tourism because of the security issues. Do you expect that to continue . Mohamed you need to understand it as i diversified product, a product that basically depends on seasonality, and eight has its own clientele. Therefore when you talk about diversity of market source, we need to consider where we can build up the volume again to where we want to see it growing. And it is important to understand our ambition is not limited to the target goals, our ambition is to grow more and more the business into the different markets. Yousef in terms of source markets, egypt has been popular it wasssia and the u. K. , a destination for these countries. Are you opening up to new ideas and strategies to make it more budget oriented or maybe upperclass and luxury . Mohamed we have certainly seen a change in that direction. We see for instance cairo is luxurious a much more destination than it was before. Growingeeing that is in that direction. In the tourism business, you need to build it one step at a time. We are seeing that growth, that basically we cannot depend on the resources only, we need to depend on the culture. We need to diversify. We are looking at me gult at the gulf, echo toryism, medical ecotourism, medical tourism. You will see, they will produce little by little. Rishaad we just had a bit of information come up saying that 2010 annual income from toryism was about 12 billion u. S. Dollars, down to about 6 billion now. How much of that is currency effect . In terms of egyptian pounds, are you at the same level, because of the fall of the local pound . Mohamed you are right on this analysis. However, the 6 billion was just short of the number of tourists coming to egypt. Once you see this number growing again, basically you are going to build back the tourism revenue. We certainly estimate that we will be able to catch up in 2017, slowly to bring back the income to where it used to be. With all therally, attractions in egypt, when they are in egypt do get them to spend as much as possible . Are you looking at the high end tourists more than the sun seeker . Mohamed we see this and cairo. We are seeing this in the egyptian products, the luxurious products in the north, that nows that our people theyre interested in building this type of pro