Good morning, ladies and gents. We bring news of a potentially, slightly positive development in the situation in Gaza (if anything related to this horrific war can ever be called positive, that is….).

Is the West feeling the international pressure?With the intensifying humanitarian crisis in Gaza and growing uproar around the world about the West’s response to Israel’s prosecution of the war, there are signs that sentiment may be shifting. A number of Western nations, including the US, Canada and Australia, are now accepting that there needs to be a pause in the fighting to prevent the disaster from getting any worse. Whether the Israelis are in the mood to listen, even if it is to their chief benefactors, will be key.

That’s “pause,” not “ceasefire”: The Western consensus remains firmly against bringing the conflict to an end, with the US in particular fully aligning with Israel’s goal of wiping out Hamas, even if it means mass civilian casualties. “A ceasefire, right now, really only benefits Hamas … It is ugly and it’s going to be messy, and innocent civilians are going to be hurt going forward,” White House spokesperson John Kirby told reporters yesterday.

International pressure:This followed a tense debate at the UN Security Council yesterday, which saw a number of countries — including Egypt — condemn the “double standards” being displayed by Washington, London, and other Western capitals over their apparent indifference to Israel’s brutal air campaign and total siege of Gaza.

The conflict is continuing to dominate the world’s attention this morning, with the latest updates front and center of homepages everywhere from the Associated Press and Reuters to Bloomberg and the Financial Times

^^ We have the full story in the news well, below.

Also getting a lot of attention internationally: The latest plot twist at the circus that is the US Republican Party. Following several weeks of infighting, the House GOP thought it had finally found their guy to be the House speaker, with US House majority whip Tom Emmer yesterday getting the party’s nomination. Enter Donald Trump and the party’s far-right fringe, which swiftly shot down his candidacy, keeping the party in deadlock and extending the paralysis at Congress. The New York Times, the Washington Post, the Wall Street Journal and CNN have more.

WATCH THIS SPACE-

#1- UAE, KSA to make fresh central bank deposits? The Central Bank of Egypt could receive another USD 5 bn in deposits from the UAE and Saudi Arabia to top up its foreign reserves, reports Al Borsa, citing unnamed sources. The funds could be sourced via a renewal of existing deposits made by the two Gulf countries that are due to expire next year, said one of the newspaper’s sources, adding that the funds will likely be converted into investments over several years.

Remember:Our Gulf allies have kept our foreign reserves from nearing zero in recent years, with about 85% of our USD 35 bn reserve stockpile being made up of deposits from Arab nations. The UAE’s deposits in our central bank already amount to USD 10.7 bn and Saudi Arabia’s deposits currently stand at USD 10.3 bn, making up 60% of our reserves.

#2- El Sisi meets with economic policy chiefs: President Abdel Fattah El Sisi met with CBE Governor Hassan Abdalla, Prime Minister Moustafa Madbouly, and the finance and planning ministers, as well as intelligence chief Abbas Kamel to discuss recent economic developments in the country, Ittihadiya said yesterday. “The president directed to continue strengthening reforms related to financial and monetary policies, and to maximize the role of the private sector in the development process,” the statement said, without giving away further details.

#3- We could be looking at a 40% increase in crude imports for the next fiscal year: The Egyptian General Petroleum Corporation (EGPC) plans to increase the country’s crude imports by 40% starting in FY 2024-2025, Asharq Business reported Monday. By bringing monthly crude imports to 7 mn barrels from 5 mn currently, the government hopes to start refining more petroleum products locally to reduce our import bill from refined petroleum products.

#4-Gold customs exemptions to be extended: The Madbouly government wants to extend customs exemptions designed to encourage Egyptians to bring gold into the country by an additional six months when the current scheme expires on 11 November, reports Al Borsa, citing unnamed government sources. The initiative, which was introduced this year, is aimed at curbing the recent moves in local gold prices, which have surged due to the economic uncertainty caused by successive currency devaluations and soaring inflation.

Add geopolitics to the list of reasons to be overweight on gold:The price of 21-carat gold jumped to over EGP 2.5k per gram for the first time at the close of trading yesterday, extending an ongoing rally stoked by the conflict in Gaza and the widening EGP-USD parallel market rate, according to Al Borsa.

HAPPENING TODAY-

Madbouly in Brussels: Prime Minister Moustafa Madbouly is in the Belgian capital today to participate in the EU’s Global Gateway Forum on behalf of President Abdel Fattah El Sisi, cabinet said yesterday. Held under the theme “Stronger Together through Sustainable Investment,” more than 40 high-level government representatives from the EU and its partner countries will attend the two-day event, as will representatives of financial institutions, businesses and international organizations.

On the agenda: The prime minister will hold meetings with a number of CEOs and government officials, and deliver a speech on Egypt’s push to expand renewable energy and establish a green hydrogen sector.

Day two of “Davos in the Desert”: Business leaders, investors, and policymakers the world over are in Riyadh for the Future Investment Initiative (FII) — commonly referred to as “Davos in the Desert.” The conference’s busy schedule is set to wrap on Thursday.

HAPPENING THIS WEEK-

The National Council for Wages is meeting to discuss private sector wage hikes:The National Council for Wages is set to convene tomorrow to discuss minimum wage hikes and periodic bonuses for private-sector employees, a source at the council told Enterprise yesterday.

Remember:The public-sector minimum wage was raised to EGP 4k in September as part of a package of measures aimed at easing the burden of soaring inflation on low-income households. This is a full EGP 1k higher than the current private-sector minimum wage, which was increased to EGP 3k in July.

Also on the agenda:The council is also set to discuss the doubling of the exceptional cost of living allowance to EGP 600 passed in the House earlier this month.

PSA- We’re turning back our clocks. Daylight savings time will end in Egypt tomorrow at midnight, so don’t forget to turn back your clocks and enjoy that extra hour of sleep on Friday morning.

ELECTION 2023-

We have the final list of candidates for the upcoming presidential election: President Abdel Fattah El Sisi, the Egyptian Social Democratic Party’s Farid Zahran, Wafd party chief Abdel-Sanad Yamama, and Republican People’s Party leader Hazem Omar have all had their applications accepted, the National Elections Authority said Monday.

When do we go to the polls? Egyptians will go to the polls in December to elect a president for a new six-year term. Polls will be open at home on 10-12 December, while expats will vote on 1-3 December. The results will be announced on December 18, with a runoff in early 2024 if there is no clear winner.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: What the IEA says the global electricity grid needs — and where Egypt’s grid stands

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