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The Egyptian Financial Supervisory Authority ( EFSA ) requested that all listed companies

disclose their damages. We compiled and analyzed those disclosures, and presented our

findings in this report.

The criteria we identified and assessed for each listed company are the following: Revenues,

Price, Direct Damage, Assets Under Investigation, and Shareholders' Frozen Stake. Adescription of each criterion is included in Appendix 1.

Throughout our study, we relied on the median as our primary measurement tool. The

findings reached include the following:

Regarding Revenues, the sector that included the lowest median percentage change is Travel

and Leisure (54% decline), while the highest median was that of the Chemicals sector (20%).

Regarding Price, the Real Estate sector witnessed the sharpest median decline (29%), while

the median in the Technology sector was an appreciation of 2%. 67% of the companies in the

Telecommunications sector were directly damaged during the revolution, with The Egyptian

Company for Mobile Servicesreporting the highest Direct Damage of around EGP 90 million.

Companies operating within the Banking, Financial Services, and Real Estate sectors had part

of their Assets Under Investigation by Egyptian authorities. On the other hand, 40% of the

companies belonging to the Basic Resources and Chemicals sectors reported that at least

one of their shareholders' stake was frozen, with Telecom Egypt reporting the highest

number of Shareholders' Frozen Stake (11 shareholders).

As a preliminary comparative criterion among all sectors, we studied the effects of the

revolution on each company's business operations. We labeled the category "Affected

Operations", which may be caused by any or all, but not limited to the following:

A slowdown or cessation in a company's business activities, scarcity and/or price

appreciation of raw materials, logistical difficulties affecting the distribution of products

and/or obtaining raw materials, logistical difficulties that led to employees being unable to

reach the workplace, etc...

Noteworthy, the charts, tables and ratios throughout the report are based on companies in a

given sector that released information regarding a certain criteria; for example, a 10% figure

for Affected Operations means that: out of the companies that disclosed information

regarding their operations in a certain sector, only 10% were affected.

The chart below represents the percentage of companies that were affected. The

percentages are based on the number of companies that actually disclosed information.

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The table below measures the period (in days) during which operations were interrupted,

across all sectors:

Regarding Opportunity Costs (forgone revenues in EGP), statistics are represented in the

table below:

It is crucial to emphasize that throughout this report, we are not stating or implying any of 

the following:

-Investment recommendation

-Asset allocation strategy

-That the economic effects of the revolution are over.

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Commentary and Analysis

September 2011

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The Rise of Popular Sovereignty 

The Egyptian revolution has swung the balance of internal and

international relationships in favor of the weight of people in all fields:

social, economic, political and foreign. If previously the basic entity in

the world was “the state”, in our time this has been revolutionized to

 public or popular sovereignty. The supremacy of the people has become the distinctive characteristic of our world. Popular sovereignty

uses soft power  — the ability to get desired outcomes because others

want what you want. It is the ability to achieve goals by means of 

attraction rather than coercion. Or, more accurately, it is coercion

without violence.

The Egyptian Revolution inspires popular sovereignty internationally 

Egypt’s popular revolution has changed the history of revolutions,

especially in the non-Western world, by confirming — after a long

 period of disregard — the moral force of nonviolence. The

spontaneous character of this revolution confirms the doctrine of  popular sovereignty with all of its charcteristics (leaderlessness, non-

 professionalism, public scrutiny, masses vs. elites, people raising their issues — including personal and/or union demands — in the street and

seeking to resolve them there, …etc). This could not have happened

absent the impact of the population’s youth bulge, which comprises

over 60% of the total inhabitants. The ability to “organize” several

million protest rallies at the same time in different jurisdictions

throughout Egypt illustrates the full power of the winds of protest.

There are, of course, several grassroots factors of unrest throughout the

region such as: authoritarian regimes; non-democratic societies; lack 

of opportunity; and rising expectations; to say nothing of widespread

corruption and injustice. Economic hardship, the spread of poverty and

the decline of the middle classes have been major causes for the

uprisings sweeping across Middle East. With the impact of 

international financial and economic crises sweeping over developed

and non developed countries compounding the continuous price rises

of food and essential services, the economic factors have ignited the

revolution of popular sovereignty throughout a wide range of the

world.

Egypt changes The most important effect of the Egyptian revolution has been the

transition from the excessive use of violence inherited from dictatorial

regimes to the peaceful management of political disputes. Barriers of 

fear and lack of self-confidence have been demolished, to be replaced

 by "Egyptian pride". It is no longer acceptable for rulers — or 

distinguished citizens — to evade accountability for their crimes and

misdemeanors.

On the other hand, the collapse of the political system has triggered

excessive violence in other contested areas, with waning confidence in

the legitimacy of "current" laws as the best mechanism to resolve theseissues. It appears that the excessive confidence in the people’s role has

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inclined the Egyptian people to believe in only their own sovereignty.

The current dilemma is how best to determine who speaks for the

 people when there is no consensus on a system to recruit

representatives of the people's sovereignty. The almost total absence of 

any social contract to govern the conduct of citizens has underscored

the necessity of national dialogue.

This explains the non-stop confrontation between different factions in

Egypt with the aim of establishing "new" rules for the game. For 

example, the strikes of civil service employees to secure permanent

contracts and raises; the work stoppage of other workers to increase

their minimum wage; the rallies expressing religious or social

demands in specific areas (like to rebuild destroyed churches; confirm

the rights of Christian girls to convert to Islam without interference of 

the church; or proper medical care and compensation for those who

 participated or lost relatives to martyrdom during the revolution).

It is important to understand that even though most of these requests

are justified, they still address non-collective demands at the level of 

the state. Thus, internally, governance by popular sovereignty reflects

the persistence of confirmation of the pre-eminence of "active" people

over the state and any systems acting on its behalf. So, the intentions

were not only to change the political system but also to influence (if 

not change) all of the legal, economic, security, social and cultural

systems in a way that satisfies the people.

This explains the competition among activist groups and individuals to

organize rallies of millions of supporters in the public squares,

especially AL-Tahrir square, to demonstrate their social power (not

 political power inasmuch as they have not yet presented their political

 programs) which is sometimes described as "show of muscle.” 

Still, it is the search for "the national" consensus on the "national"

 priorities or interests and "national" principles or standards which

characterizes the current turmoil in Egypt. Therefore, everything is on

the agenda for discussion — even proposals on the role of media, laws,

religion, women, modernity, tradition…etc. Some of these discussions

are really worrisome; there is an absence of mature debate and most of the orators tend to be raconteurs rather than experts.

Some important outcomes, however, are already apparent in the

Egyptian case. The most important being the demystification of the

Muslim Brotherhood opposition movement, the largest organized

group in Egypt that has long operated covertly. By virtue of having to

 practice real-world politics and day-to-day bargaining, the Muslim

Brotherhood has been brought down to earth as a movement of 

ordinary mortals among the opposition. The role of the army also, in

standing side by side with the Egyptian people, has had a remarkable

result in authenticating the sovereignty of the people. Unlike thetradition of military interventions in internal politics, where the army

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favors the ruling powers, the Egyptian revolution has reversed this

custom to the advantage of the people. The army is now a strict

guardian of civilian popular supremacy.

Through popular sovereignty, Egypt — the oldest nation on the earth

 — rejuvenates itself, as will other civilizations. This time the impact othe Egyptian experience is not only for effect as were Egypt’s own

version of the 1968 student rebellions, for example. But this time

Egypt is a wake-up call for "old" and "aging" civilizations to

invigorate their nations. This is why the map shows us that it is the

"oldest" civilizations that have been affected most by the style of 

Egypt’s revolution (like Syria, Yemen, Greece, Spain, China, etc.).

They all represent countries which have forgotten inherited

civilizations and have major youth bulges in their populations.

Global domino effect 

Egypt’s revolution has polarized veryimportant trends in international relations

via the so-called “civilization effect”creating "the age of popular sovereignty". It

has forced world powers to adjust the

shortsightedness of their ideological lenses

after failure to predict or cope with the turmoil in the Arab World and

other regions. Popular sovereignty on the international level stimulates

the better understanding and promotion in foreign policy circles of the

 principles of nonviolence as a powerful tool.

The first and most important product of the Egyptian evolution is

"localization" and the reacquisition of the power of identity. Popular 

sovereignty acknowledges no centralization of civilization since

 people vary from one region to another. It believes in the changes

achieved through mutual will and the sense of ownership of their 

diverse creators. The "new" world, with its multiplicity of cultures,

will surely participate in realigning the international relations

 paradigm.

Meanwhile, in a contradictory trend, which nonetheless still underlines

the importance of localization, the idea of racial and religiousdiscrimination has prospered and grown in the shape of calls for the

 purification of race or region (holy war) from the impact of other 

races, religions or even cultures. Consider, for example, the widening

support for supremacist groups (like white supremacy in USA, or anti-

Islam and anti- immigrant movements in Europe represented by

"rightist" or conservative groups). Recently, it no longer requires mass

movements or groups to launch such holy wars; individuals can be

very influential catalysts for these tensions that can easily escalate to

violence. The Oslo attacks of July 22, 2011 dramatically illustrate such

an individual war. This represents the most destructive and

counterproductive outcome of re-acquired lost identity. At the sametime, on the other side, oppressed groups have reached their limits

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with their inferior and injustice situation and will no longer tolerate

further offences to their dignity and pride.

Localization in the global arena means the Islamic perspective will

contribute, once more, its great values of constructiveness,

 benevolence and justice to international relations. It also means that"new" Islamist countries, now fueled by democratic ideals, will be

accepted as the Jewish country of Israel has been. The religious factor 

is by no means diminished but, rather, prospers as the main "local"

factor. This also means the civilizing role of the state returns to play an

essential role in the balance of values that soon will replace the

customary balance of the traditional power system.

On the other hand, a truly multilateral system has finally had the

chance to be applicable as demonstrated lately by the high

coordination between BRIC group (Brazil, Russia, India, and China),

along with Germany — but outside the hegemony of the United States — in taking decisions (i.e. on war and peace in Libya). This raises the

issue of the “public war” concept and develops “public diplomacy”

tools. Regionalism or regional powers now have the preeminence over 

their regions and their problems and it is certainly their responsibility

to find solutions.

The leaderless nature of the Egyptian revolution and the emphasis on

individualism versus institutionalism has affected the whole world in a

series of "rebellious events". An immediate example was the

crackdown on the concept of "collective bargaining" and the immense

difficulty of reaching "consensus". This effect was noticed in

democratic countries as the failure of social groups (unions for 

instance) or even political parties to achieve results expected by their 

members and supporters in confrontation with their opponents. We

have seen this demonstrated by the occupation of the Wisconsin State

Capitol by angry teachers; or by street demonstrations by labor in

Europe — especially Greece and Spain — surrounding their 

Parliaments, Government and even union premises.

In addition the Egyptian revolution has shifted public diplomacy from

the state’s domain to private sector and non-institutional domains. For example, the mission to Uganda of the Egyptian Public Diplomacy

delegation — formed from a totally non official group — has

succeeded in convincing Uganda to postpone the entering into force of 

the “new” Nile treaty between the Nile’s source countries that had

 been signed without the consent of Egypt and Sudan one year ago.

On the Global Economic side, popular sovereignty persists in

 prioritizing the moral aspects of the consequences of economic

growth. The price of democracy will surely burden the budgets of all

countries especially United States, in the form of humanitarian

assistance and military aid to toppled dictatorial rulers. Europeancountries should do more to establish much needed social justice

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among their southern borders, to help these countries in developing

their economies and create much needed jobs for the youth to fight the

spread of social malaise. With the ongoing financial and economic

crises, the passive side of globalization will prevail economically, and

the huge negative effects on poor classes will induce another wave of 

revolution.

Meanwhile, within the economic domain, popular supremacy, as a

result of these popular revolutions, has confirmed the changes in the

economic concepts of development and the weight of the economic

indicators for welfare and growth. According to the World Bank, for 

instance, Tunisia and Egypt were on the right track economically. If 

so, why there have been deep economic roots for these revolutions?

This means development from now on should be concentrated on

targeting peoples’ welfare, not merely on statistics of resources and

 production. This is not communist theory and is certainly more than

any traditional textbook model welfare state. The World Bank hasrecently announced that the experiences of the third world are

important to the World Bank’s including concepts of social justice andemployment to the role of the state, and their use of anti- poverty

measures and others tools to the formulation of new World Bank 

strategy.

Regional Effects: 

It is without any doubt that the impact of the Egyptian revolution

affects a wider region. The enormous impulse of the Egyptian people

to protest has inspired the climate of revolt. Huge waves of revolution

reflect the prevalence of deep socio-political problems. It also

emphasizes the role of Egypt as the cradle of all civilizations and the

leader of the Arab world so that when it rises against its rulers, all

other Arab nations do. While this does not necessary revive the idea of 

Pan-Arabism, it does raise awareness of the unsettled problems that

 present areas of vulnerability. Foremost of these problems in the Arab

region is the protracted Palestinian-Israeli conflict. In spite of the

absence of slogans or calls addressing the Palestinian issue during the

Arab demonstrations in general, it has always been the most important

issue that matters in any denunciation of Arab rulers. After the Arab

revolutions, Israel is no longer the only democracy in the Middle East.The pressure for a Pale