Good morning friends, and welcome to the weekend. Alas, winter has cometh and tis’ the season to consider where you want to spend the holidays.

Considering that our wallets are still gasping for air, we have considered some winter destinations that defy the usual choices and are also more budget-friendly.

Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.

LAST WEEK IN 3 MINS-

CEASEFIRE AGREEMENT EXPIRES IN GAZA-

#1- The week-long temporary ceasefire expired this morning after Israel resumes airstrikes on Gaza, claiming that Hamas has violated the truce by firing a rocket towards Israel, AlArabiya reports.

Initially, Hamas and Israel agreed to extend the four-day ceasefire that started on Fridayby 48 hours under a pact brokered by Egypt, Qatar, and the US. The initial truce was scheduled to expire on Tuesday but was pushed to end on Thursday after Hamas agreed to release more hostages.

#2- Since the initial ceasefire went into effect, Hamas released 69 hostages in exchange for Israel releasing 150 Palestinians. Day five of the prisoner exchange saw Hamas release an additional 13 hostages, while Israel freed 30 Palestinians, bringing the running total to some 82 Israelis released in exchange for 180 Palestinians.

#3- Israel might be releasing some Palestinians — but it’s arresting even more: While Israel released 150 Palestinians since the truce entered into force, it has arrested 168 in the West Bank during the same period.

#4- Aid trucks eventually increased to around 200 per day. This comes days after the temporary ceasefire came into effect, but it still remains far below the 500 trucks that crossed the border before the war.

Israel has also been allowing 130k liters of fuel a day into Gaza, which is still just over 10% of pre-war volumes.

#5- An extended truce wasn’t enough to meet Gaza’s huge aid needs: “Even with that additional amount of time, it will be impossible to satisfy all the dramatic needs of the population,” UN Secretary-General Antonio Guterres told reporters.

…and the lack of aid is causing a surge in disease outbreaks. WHO has warned that more people could die from disease than from bombing in Gaza as long as the healthcare system remains defunct.

#6- The Biden administration is reportedly urging Israel to refrain from carpet bombing south Gaza in the manner it did in the north, and instead use more precision to target Hamas operatives.

...and some European governments have also used the pause to intensify their criticism of Israel’s war: The Spanish prime minister accused Israel of indiscriminate violence and called for a Palestinian state, while The UK’s new foreign secretary, David Cameron, called the expulsion of Palestinians in the West Bank by extremist settlers “ completely unacceptable.”

MEANWHILE, WE A HANDFUL OF PRIVATIZATION DEVELOPMENTS-

#1- ACUD could raise more than EGP 150 bn when it goes ahead with its anticipated IPO on the EGX. Administrative Capital for Urban Development (ACUD), a joint venture between the military and the Housing Ministry, plans to offer 5-10% of its shares on the Egyptian Exchange in a sale that some have speculated could be the largest-ever public share sale in Egypt.

#2- United Bank stake sale could be announced this year: The United Bank is expected to pull back the curtain on its sale agreement in mid-December as it currently awaits mandatory tender offers (MTO) from the bidders, a source at the state-owned lender told Enterprise. Most of the potential buyers have completed due diligence on the bank, the source added.

United Bank is one of two state-owned banks in which EBRD is reportedly interested in taking a stake. The European Bank for Reconstruction and Development (EBRD) is reportedly looking to grab stakes in United Bank and Banque du Caire, two of the three banks — along with the Arab African International Bank — slated for the government privatization program.

#3- An Emirati investor wants 100% of Misr Life Ins. and has submitted an initial offer tocompany owner the Sovereign Fund of Egypt (SFE). The SFE is looking into the offer but is likely to reject it in favor of moving forward with its initial plan of listing 25% of the company’s shares during 1H 2024.

#4- UAE and Qatar are eyeing pharma acquisitions: Emirati and Qatari sovereign wealth funds and investors are eyeing stakes in state-owned pharma companies Chemical Industries Development (CID) and Misr Pharma. Pre-IPO stakes of around 30% in each company could be offered.

AND A FEW ECONOMY UPDATES-

#1- Some businesses are now required to settle their value-added tax (VAT)dues in FX if the service or product they offer is invoiced or paid for in foreign currency. Also, businesses can settle their foreign-currency VAT dues in local currency equivalent if they present evidence that they’ve exchanged FX worth the same amount or more than the value of the VAT within a month of the sale.

Importers won’t have to do the same: The regulatory amendments do notapply to import operations. VAT will only be collected in FX from companies that are licensed to transact in foreign currency.

#2- Fitch Ratings downgraded the operating environment score of four of Egypt’s biggest banks on the back of their high exposure to sovereign debt and the FX crisis weighing on investor confidence. Fitch lowered the score of the National Bank of Egypt, Banque Misr, Banque du Caire, and CIB to ‘B-’ from ‘B’ and revised its outlook to stable from negative.

#3-More speculation on the inevitable float. The devaluation will follow the presidential election in December and will be joined by a 200 bps interest rate increase, according to Arab World News Agency coverage of a Capital Economics report. The exact post-float rate wasn’t explicitly mentioned, but is currently officially set at 30.95 to the USD and 48-53 to the USD in the parallel market. EFG Hermes and BMI are optimistic that a successful float could see the EGP recover a bit.

SOME ENERGY NEWS-

#1- We are on track with resuming LNG exports: An LNG vessel reportedly arrived at one of Egypt’s liquefaction plants at the start of the week. Days later, a government official said we’re going to be resuming gas shipments in January after half a year with virtually no LNG leaving our country.

#2- Egyptian Refining Company (ERC) plans to invest USD 150 mn to ramp up production levels by 10% over the next three years. The Qalaa Holdings subsidiary’s total output, excluding fuel and losses, recorded 2.3 mn tons in the first half of 2023.

#3- USD 2 bn green complex in the works in SCZone: The Suez Canal Economic Zone (SCZone) signed a letter of intent yesterday with China’s Befar Group to establish a green chemical complex in East Port Said, according to an SCZone statement. The complex will be powered by renewable energy and the first phase will cost USD 500 mn.

#4- Madbouly signed off on two solar projects:The cabinet approved a contract for Norway’s Scatec to set up a 1 GW solar power plant with a battery energy storage system. The ministers also gave China’s State Grid the green light to begin feasibility studies on a 10 GW solar project.

SOME LOAN AGREEMENTS-

#1- The new capital light rail project is getting a USD 250 mn loan: The Chinese consortium contracted to work on the fourth phase of Cairo’s light rail transit (LRT) system will arrange a USD 250 mn soft loan from a syndicate of international banks to help finance the project.

#2- Al Ahly Leasing and Factoring has raised EGP 1.1 bn via a securitized bond issuance that closed yesterday. The issuance was backed by a EGP 1.7 bn portfolio of leasing contracts securitized by Al Ahly Securitization Company.

#3-NBE is on the lookout for a USD 50 mn EBRD loan for SMEs: The National Bank of Egypt (NBE) is currently in talks with the European Bank for Reconstruction and Development (EBRD) to obtain a USD 50 mn loan to support financing to agricultural projects and SMEs.

#4- NUCA wrapped its EGP 30 bn securitization program: The New Urban Communities Authority (NUCA) closed a EGP 15 bn securitized bond issuance, the second and final issuance of its EGP 30 bn program.

MORE M&A IN THE PIPELINE-

#1- e-Finance could acquire two companies: State-owned fintech firm e-Finance is in talks toacquire two retail-focused digital payments companies, the first of which was approved by the board last month and is expected to wrap up by the end of the year. A second acquisition is now under review and could be finalized during 1H 2024.

#2- Savola’s Panda joins bidding for Alfa stores: Saudi grocer Panda is among three supermarket chains looking to purchase six stores from struggling retailer Alfa Market. The company, owned by Saudi food conglomerate Savola, is reported to have already reached an agreement with Alfa to take over its Maadi branch.

A DISPUTE THAT WAS FINALLY SETTLED-

#1- Egyptian Supreme Administrative Court (SAC) ruled in favor of LSE-listed gold miner Centamin’s Sukari mine after over a decade of battle. The lawsuit originally challenged the validity of Sukari’s exploitation lease between the Egyptian government, Centamin's Egyptian subsidiary Pharaoh Gold Mines (PGM), and the Egyptian Mineral Resource Authority (EMRA), but the court has now rejected the case citing the claimant as having “no capacity to bring the claim,” seeing as he was not part of the concession agreement.

FINANCE-

#1- Fawry’s testing environment was confirmed to have been hacked, but financial data is safe. A forensic audit of more than 2k servers has found that a portion of its testing environment was hacked last month. The breach resulted in the compromise of some customers’ personal data, but no data that would allow someone to execute financial transactions on the company’s system. Fawry’s thorough investigation has found no evidence that the breach exposed financial data.

#2- The golden license e-platform is now online: The one-stop shop golden license to set up projects in Egypt can now be applied for online.

AND SOME FOREIGN INVESTMENT INTEREST-

Turkish textile manufacturer Küçükçalik Group is planning to start work on a USD 500 mnsynthetic fibers factory in the Suez Canal Economic Zone (SCZone) in January, a move that could reportedly lower the country’s annual import bill by USD 1 bn.

WHAT’S HAPPENING NEXT WEEK-

Egyptians abroad have until Sunday, 3 December to head to the polls to cast their presidential ballots — which open today — and choose between incumbent President Abdel Fattah El Sisi, Al Wafd Party’s Abdel Sanad Yamama, the Egyptian Social Democratic Party’s Farid Zahran, and the Republican People Party’s Party Hazem Omar.

Egypt Defence Expo runs from 4-7 December (Monday-Thursday) at the Egypt International Exhibition Center.

The Engineering Export Council of Egypt is heading on a trade mission to Saudi Arabia 9-15 December (Saturday-Friday).

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

YOUR MOST CLICKED LINKS-

  • Fahmy Hanna’s appointment as a non-executive Chairman of SAIB bank was often clicked. (SAIB website)
  • News of Turkish textile manufacturer Küçükçalik Group investment in Egypt was widely read. (Enterprise)
  • …and its local subsidiary KCG Textile Egypt received plenty of interest, too. (KCG Textile’s webpage)
  • The cabinet statement on what the Madbouly government is doing to address the FX crunch was opened frequently. (Cabinet statement)
  • The golden license’s e-platform was heavily visited. (Golden license e-platform)

AROUND THE WORLD IN SEVEN DAYS-

Ultra-fast fashion retailer Shein’s filing for a US IPO was all over the business press this week. The Chinese-founded retailer’s filing is expected to be New York’s largest IPO of the decade and could help Shein expand its global footprint. The fast-fashion giant, last valued at USD 66 bn in May has seen major growth in recent years despite serious concerns surrounding its environmental impact and labor practices. Goldman Sachs, JPMorgan Chase, and Morgan Stanley were reportedly tapped to advise on the listing, which could happen as soon as 2024.

Sam Altman’s return to OpenAI continued to generate digital ink: Sam Altman was reinstated late last week as CEO of the high-profile AI company behind ChatGPT just five days after getting sacked by the board — a move that solicited threats from employees and pressure from investors to reinstate the chief executive. The board that fired Altman, which was in place to ensure the “safe development” of AI, has since been replaced by a three-man provisional board.

ALSO- Russia’s drone attack on Kyiv generated some headlines. The attack was dubbed by city officials as “the most massive air attack by drones on Kyiv,” since the start of Russia’s invasion of Ukraine last year.

The influential yet polarizing diplomat Henry Kissinger passed away at the age of 100. Supporters of the former US secretary of state praise him for negotiating the end of the Vietnam War, easing tension with the Soviet Union and China, and holding the Middle East together after the 1973 war. But critics remember him for brutally bombing Cambodia and Laos, engaging in Indonesia’s genocidal campaign in East Timor, and standing behind General Augusto Pinochet’s takeover of Chile.

Another death earlier this week was Charlie Munger’s, right-hand man of Warren Buffett, who died aged 99 saw lots of coverage in the financial press: Munger, who was second-in-command to business magnate Warren Buffett for almost 60 years, died aged 99. Under their management, Berkshire Hathaway averaged an annual gain of 20% between 1965 and 2022 to become the multi-bn USD conglomerate that it is today.

HAPPENING NOW-

COP28- Climate experts, NGOs, and journalists landed in the Emirates yesterday for two weeks of COP28. Keep up with the details on Enterprise Climate.

HAPPENING THIS WEEKEND-

ART-

Meet the virtual Tutankhamun. The Grand Egyptian Museum is hosting an interactive Tutankhamun exhibition, in partnership with the Spanish Madrid Artes Digitales Foundation. The exhibition kicked off and will continue until Saturday, 16 December. You can book your tour from here.

BAZAARS-

The Christmas Charity Bazaar will bring the warmth of the holiday season today, at AllSaints’ Cathedral, Zamalek. The bazaar runs today from 10:30am until 4pm. Proceeds will benefit a variety of charities here in Egypt.

MUSIC-

Syrian-German band Shkoon is performing in Egypt for Gaza. The concert will be held at the Pyramids today. Part of the concert’s proceeds will be donated to humanitarian aid dedicated to Gaza. See if you can still get some tickets here.

Wael Al Fashni x El Sawy Culturewheel. The Egyptian singer Wael All Fashni will be performing at El Sawy Culturewheel, Zamalek tomorrow. Tickets are available here.

ART-

Nurture your inner artist at the self-portrait workshop hosted by Dawar Arts every Saturday until 16 December. Click here for more information.

FILM-

Zawya cinema will be screening five movies for the late director Ali Badrakhan starting tomorrow until Tuesday, 26 December. You can know more about the schedule from here.

HAPPENING NEXT WEEKEND-

The Cairo Art Book Fair is happening in the cultural city of Ghurnata inHeliopolis. The exhibition will display prints and books alongside a series of lectures and artistic discussions. The event will take place between 7-9 December.

Awardwinning Egyptian author Ashraf El-Ashmawi will be hosting a book signing eventfor his latest novel Maximum Speed Zero at Bibliothek Egypt on Saturday, 9 December at 5:30pm. The novel follows the journey of an Egyptian family who experience peculiar occurrences and encounter different individuals that influence their destinies.

Tags: