Good afternoon, friends, and welcome to this busy Monday as fresh FX and investment updates are hitting our news cycle.

THE BIG STORIES TODAY

#1- Kuwait has renewed its USD 4 bn deposit with the Central Bank of Egypt as Egypt continues to face an FX shortage and ahead of an anticipated devaluation later this year or early next year, reports Asharq Business, citing anonymous government officials. The two-tranche deposit will now expire next year, with the first tranche maturing in April and the second in September.

Reserves are creeping upwards: FX reserves have increased every month since September 2022 after Russia’s invasion of Ukraine last year triggered heavy capital outflows that saw Egypt bleed some USD 8 bn from reserves of USD 41 bn on the eve of the war.

Gulf funds account for most of Egypt’s foreign reserves: Saudi Arabia, the UAE, Qatar, Kuwait and Libya have deposited some USD 30 bn at the central bank, accounting for 85.5% of Egypt’s current USD 35.1 bn stockpile.

#2- Construction of Sokhna logistics zone to begin this month: DP World will break ground on its USD 80 mn logistics zone at Sokhna Port this month, the Emirati port operator said in a statement (pdf).

Remember: DP World in August 2022 inked an agreement with the Suez Canal Economic Zone’s (SCZone) Main Development Company (MDC) to build the USD 80 mn logistics zone at Sokhna Port.

The company has so far deployed USD 1.3 bn in the country’s logistics sector, CEO and Chairman Sultan Ahmed bin Sulayem said. The amount was channeled into building a multi-purpose terminal at the Ain Sokhna seaport. The company will continue to pour investments into the logistics zone as well as other logistics services that seek to bolster maritime trade in the country, the statement reads. The company in November 2021 said it would invest USD 25-35 mn in Ain Sokhna seaport over the next 2-3 years.

THE BIG STORY ABROAD

The war on Gaza continues to dominate the international press this afternoon following Israel’s continued attacks on civilian hospitals. Thousands of people seeking refuge fled Gaza’s largest hospital, Al Shifa, during these attacks.

Hundreds of patients remain trapped inside at risk of dying due to a lack of fuel and medical resources, reports Reuters. The siege and cut-off power caused 32 patients, including three newborns, to perish. Israel claims to be providing safe corridors for civilians but Palestinian health officials say that the compound is surrounded by heavy gunfire preventing any escape.

Hezbollah also continued to fire missiles near the border with Israel, while the latter continued their assaults on Gaza, according to Bloomberg .

Meanwhile, the Pentagon announced a new round of airstrikes on Iranian facilities in Syria, says the Washington Post . Officials say the facilities were linked to dozens of attacks on US troops by Iran’s Islamic Revolutionary Guard Corps (IRGC) and affiliated groups. US Defense Secretary Lloyd Austin stressed that this was a move “to make clear that the United States will defend itself, its personnel, and its interests.”

Things are taking a surprising turn in the UK, too, where former prime minister David Cameron was just made foreignminister as part of a cabinet shuffle. Current PM Rishi Sunak fired interior minister Suella Braverman, replacing her with James Cleverly, who had been serving as foreign minister.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Volkswagen is onboard with our efforts to localize our auto industry: The Madbouly government and German carmaker Volkswagen will conduct feasibility studies for the establishment of the planned East Port Said Automotive Zone (EPAZ) under an agreement inked between the two sides yesterday.
  • Israel is crippling Gaza’s healthcare system:More hospitals in the besieged Gaza City went dark yesterday as fuel supplies ran out and the Israeli military intensified its assault.
  • Fresh funds are on their way: The Finance Ministry has secured a USD 500 mn syndicated loan from Deutsche Bank and Bahrain’s Arab Banking Corporation (Bank ABC) to support education and healthcare spending.

🌤️ TOMORROW’S WEATHER- Expect the mercury to rise to a high of 26°C in the daytime and drop to a cooler 22°C in the evening, tells us our favorite weather app.

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