Good morning, friends. It’s particularly busy for a Monday morning with plenty of news on everything from our potential debt repayment schedule in 2024, to corporate expansion beyond our borders (Valu and Edita), and how schools are trying to retain foreign teachers in a high-inflation environment in which FX is rare as hen’s teeth.

BREAKING NEWS- A massive fire swept through multiple floors of the Ismailia Security Directorate headquarters in the early hours of this morning, with Al Arabiya reporting that eyewitnesses saw casualties on the scene. Social media accounts carried videos and photos of what appear to be the fire in real time. No information was available at dispatch time this morning on the cause of the blaze, nor was there confirmation on casualty figures.

THIS WEEK IN THE HOUSE-

It’s parliamentary committee election day: After reconvening for the new legislative cycle yesterday, MPs in all of the House’s 25 committees will today elect a chairman, two deputies and a secretary general. Results will be released tomorrow.

We’ve already got an idea about what will be at the top of the priority list in the opening weeks of the cycle: The government has sent 11 bills and eight agreements to the House for discussion in the coming days and weeks. These include:

  • the recently-announced tax changes that will raise the income tax exemption threshold;
  • a bill that would allow the government to re-open its expat car import initiative for three months to raise FX;
  • changes to law regulating the importers registry ;
  • legislation allowing Safaga Company to manage, operate and maintain a terminal at Safaga port ; and
  • several oil and gas exploration agreements with international energy companies.

Social support measures could go to a vote on Tuesday: There is speculation that the income tax change and exceptional bonuses for public-sector workers and pensioners announced by the president last month could be put up for a vote as soon as Tuesday.

ALSO- Sisi wants the old rent law higher on the agenda: The president yesterday urged lawmakers to address the old rent law, telling a conference in the new capital that it is “unacceptable” that property owners are unable to take economic advantage of what he said amount to 2 mn housing units across the country.

Remember: A draft law that would allow landlords to evict organizations, government agencies, public and private companies, and embassies (among other entities) from their properties has been in limbo for the past 18 months after it received preliminary approval in the House last year

The Senate will also be joining their colleagues back at work on Tuesday: The upper house will be back in session after the summer recess with a vote on whether to accept the resignation of Hazem Omar so he can run as the leader of the People’s Republican Party in December’s presidential election. Senators are also set to declare their intention to run for leading posts in parliamentary committees.

ALSO THIS WEEK-

OPEC+ meeting on Wednesday: The alliance of oil producers are unlikely to make any changes to output when they meet in Vienna this week, according to Reuters. Oil prices have surged to new 10-month highs in recent weeks on the back of Saudi Arabia and Russia’s decision to extend voluntary supply cuts until the end of the year.

PSA- We have another long weekend ahead of us: The government is giving the public and private sectors the day off on Thursday to observe Armed Forces Day, which falls on Friday.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

WATCH THIS SPACE-

Extend food export restrictions, say local importers: Local importers are calling for tighter and wider ranging restrictions on food export bans following the Trade Ministry’s three-month ban on the export of onions went into effect yesterday in an attempt to contain soaring local prices, reports Ahram Online. “The decision is good for the market and should be applied to other goods like tomatoes, potatoes, and beans to control prices that skyrocketed,” said Ahmed Sheha, a member of the importer’s division at the Cairo Chamber of Commerce. “There is still a risk as some vendors may hoard stockpiles. The government should consider extending the ban’s term and crack down on any unethical practices in the market,” he added.

PSA- ENR full steam ahead on student discounts: Egyptian National Railways will allow Egyptian school and university students to purchase train tickets with discounts ranging from 90-98% for Tahya Misr, dynamic ventilation and third class air-conditioned trains, ENR said yesterday. The cut-price tickets come in time for the new academic year and aim to make public transport affordable for all students. Students can apply for subscriptions subject to conditions via an EGP 5 application form at their nearest train station. Forms must be officially stamped by the student’s school, institute or university.

It’s the beginning of a new month- Among the customary news triggers to watch out for in the coming weeks:

  • PMI: S&P Global will publish Egypt’s PMI figures for September this Tuesday, 3 October.
  • Foreign reserves: The central bank will release September’s foreign reserves figures next week.
  • Inflation: Capmas and the CBE will publish the latest inflation data on Tuesday, 10 October.
  • Interest rates: The Central Bank of Egypt will meet for its penultimate policy meeting of 2023 on 2 November.

THE BIG STORIES ABROAD-

Republican civil war brewing in the House of Representatives: Rep. Matt Gaetz said Sunday that he will push to remove fellow Republican House Speaker Kevin McCarthy from his position after he briefly allied with the Democratic side of the House to pass legislation preventing a government shutdown. There was also disquiet from the Democrats, with President Joe Biden urging Republican lawmakers to back a separate bill to secure Ukraine aid after it was dropped from Saturday’s bill before being voted through. The reaction from Wall Street meanwhile has been one of relief, following a volatile week that saw many bracing for a prolonged government shutdown. (Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Wall Street Journal)

Ackman wants to SPARC with X: US b’naire investor Bill Ackman has secured regulatory approval to target privately-held firms through a new type of SPAC known as a special purpose acquisition rights company (SPARC), which have seen little market interest since their 2021 peak. A deal with X could be on the cards, with Ackman telling the WSJ that he is “absolutely” interested in the company formerly known as Twitter. Ackman’s SPARC is also set to target private companies trying to drum up USD 1.5 bn, writes Bloomberg.

Grain ships sail for Ukrainian ports, defying Russia: Five Ukraine ships are heading to Black Sea ports to be loaded with 120k tons of grain destined for Africa and Europe, while three have left loaded with cargo, in defiance of a Russian blockade of Ukrainian commodity exports, reports Bloomberg. Kyiv has had to consider alternative shipping routes as Moscow has threatened to attack vessels after pulling out of the grain export pact with Ukraine in July.

ENERGY UPDATE- Egypt and Saudi’s electricity grids are set to link up by May 2025. The project will start trial operations in May 2025 and officially start operating the first 1.5 GW phase in June 2025, followed by the second 1.5 GW phase the following November, government sources told Al Borsa. The two countries will export any surplus electrical capacity from the project, the sources added.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we did a deep-dive into the challenges and potential of our budding local smartphone industry and got an inside look from industry leaders.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: How are Egypt’s private and international schools managing to retain expat teachers?

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