Good morning, ladies and gentlemen, and HAPPY FRIDAY. The weather is starting to become sunny-fresh as the sun is high this morning and our news cycle is light as the presidential elections and the end of year wind down is dominating the conversation.

In this week’s Enterprise Guide: With prices soaring, going out for a meal often seems like a blast from the past. Maybe it is time you pull up your sleeves and tap into your inner Julia Childs or Gordon Ramsay and get into the kitchen yourself. Whether you want to venture alone, with a group, or gift the experience to a loved one, our selection of cooking courses in Cairo will inspire and teach something new.

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-

Israel’s assault on Gaza continued to make headlines around the world as global diplomatic pressure for a ceasefire ratcheted up. On the domestic front, we got some clarity on progress made in the state’s privatization drive and some strong indications that our USD 3 bn IMF loan may in fact be expanded. Our presidential elections also came to a close.

DIPLOMATIC TENSIONS CONTINUED TO SWELL OVER ISRAEL’S ASSAULT ON GAZA-

#1- The UN General Assembly voted overwhelmingly in favor of a ceasefire in an emergency meeting: More than three-quarters of the 193-member UN General Assembly voted on Tuesday in favor of a non-binding resolution calling for an “immediate humanitarian ceasefire” in Gaza. Meanwhile, Israel said it will continue its war on Gaza “with or without international support.”

The session, called by Egypt and Mauritania, saw 153 countries vote for the resolution, and just ten countries — including Israel, the US, and Austria — vote against. Twenty-three nations — including the UK, Germany, Italy and Ukraine — abstained.

…and came after the US blocked a UAE-authored Security Council resolution last Fridaycalling for an immediate humanitarian ceasefire in Gaza.

#2- Egypt warned that attempting to displace Palestinians into Sinai could cause a “rupture” in the two countries’ relationship. Egyptian officials reportedly expressed concerns to Israeli intelligence that its offensive in south Gaza could force thousands of people across the border into Egypt and threaten diplomatic relations with Israel.

#3- Israeli air strikes leveled multiple areas in southern Lebanon and Hezbollah launched explosive drones and missiles at Israeli positions. The flare up came a day after Israel’s national security adviser warned that Israel “can no longer accept” Hezbollah on its border and will “act” if they continue to pose a threat.

#4- At least 18.8 k Palestinians have been killed in Gaza since 7 October. Almost 51k havebeen injured and 1.9 mn people — 85% of Gaza’s population — have been displaced.

#5- Gaza’s supply of freshwater is at risk: The Israeli military is pumping seawater into Hamas’s tunnel network in Gaza, which could endanger Gaza’s fresh water supply.

SOME NOT SO GRIM MACRO UPDATES-

#1- The IMF gave its most explicit indication yet that it could agree to increasing the size of Egypt’s USD 3 bn loan program. “It is clear that additional financing will be critical to ensure the success in the implementation of the policy package for Egypt,” IMF Communications Director Julie Kozack said.

The exact amount is still to be finalized, but some unconfirmed media reports suggest that the loan could get up to USD 10-12 bn.

#2- A second month of encouraging inflation figures: Inflation eased for the secondconsecutive month in November to reach its lowest level in six months thanks to a favorable base effect and slower food price increases. Figures published on Sunday, 10 December showed that inflation in urban areas slowed to 34.6% y-o-y last month from 35.8% in October.

#3- Private-sector workers making minimum wage will officially get a salary bump starting 2024, according to a decision published in the Official Gazette on Monday. From 1 January, the minimum wage will rise 17% to EGP 3.5k a month (before taxes and social insurance deductions) from EGP 3k currently in a move announced in October to cushion the impact of soaring inflation on low-income households.

OUR PRESIDENTIAL ELECTIONS CAME TO A CLOSE –

#1- Egyptians were out at the polls this week to cast their ballots in this year’s presidential election: The National Elections Authority (NEA) has completed receiving the vote counts after three days of voting ended on Tuesday.

Local media reported overwhelming victories for incumbent President Abdel Fattah El Sisi in several areas. The results are expected to be announced Monday, 18 December.

WE SAW SOME PROGRESS IN THE STATE’S PRIVATIZATION DRIVE-

#1- The Sovereign Fund of Egypt (SFE) is gearing up for new sales of state-owned companies in 1Q 2024. The privatization program will expand to include infrastructure and financial services companies, according to SFE CEO Ayman Soliman.

#2- The SFE is set to finalize a contract with a consortium that will be in charge of developing the site of the former National Democratic Party (NDP) headquarters in Downtown Cairo before the end of the year. The fund has reportedly already determined which consortium is getting the contract and will make an announcement once the paperwork is signed. Several news outlets have reported that Gulf contractors are in line for the contract.

VAT WILL STILL BE OWED IN USD-

You won’t be able to settle your VAT dues on foreign currency sales in EGP after all: All businesses pricing goods and services in foreign currency will now have to settle their VAT dues in foreign currency. This came after the Finance Ministry scrapped a rule that previously allowed them to pay in EGP provided they had evidence that they had exchanged an equivalent amount of FX.

AN END TO THE SUGAR CRISIS IN SIGHT?

The government has introduced a number of measures to calm sugar prices in recent days, including a decision issued yesterday that extends an export ban for another three months until March 2024, in addition to making more sugar available to ration card holders. The Supply Ministry will also take steps to improve the supply of sugar and other basic commodities in the market, according to a cabinet readout on Wednesday. The statement didn’t say whether the ministry would tap strategic reserves — which is now at almost eight months for sugar — or import more to address the gaps. Sugar prices have soared to record highs in recent weeks and have jumped more than 50% in the past week alone reaching more than EGP 55 for a 1kg bag.

WHAT’S HAPPENING NEXT WEEK-

Grand Ethiopian Renaissance Dam (GERD) talks are set to resume 16-18 December (Saturday-Monday) in Addis Ababa. Egypt, Ethiopia, and Sudan will enter into the fourth round of talks over the filling and operation of the Grand Ethiopian Renaissance Dam (GERD) since President Abdel Fattah El Sisi and Ethiopian Prime Minister Abiy Ahmed agreed to re-enter negotiations in July and reach an agreement within four months.

The Central Bank of Egypt’s Monetary Policy Committee will meet on Thursday, 21 December to review interest rates. The rate review will follow shortly after inflation figures eased slightly to 34.6% y-o-y in November and an IMF review of our USD 3 bn loan program looms near.

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-

  • Since the presidential elections were last Sunday to Tuesday, potential voters were keen on figuring out where their polling stations were. (Egyptian elections’ website)
  • Morgan Stanley’s piece in Bloomberg on surprises that could shock emerging markets — one of which is Egypt — was widely read.(Bloomberg)
  • Not free-floating the EGP to the USD and going for a devaluation after the elections conclude was a prediction that Morgan Stanely was quoted as saying in Asharq Business and was news for readers. (Asharq Business story)
  • The rich getting USD 1.5 tn richer was a Bloomberg story that surprised our subscribers. (Bloomberg)
  • Benedict Evans’ annual presentation on the macro and strategic trends that will impact businesses in 2024 got plenty of love. (PowerPoint presentation)

AROUND THE WORLD IN SEVEN DAYS-

The war in Gaza continued to dominate coverage in the international press-

The United States has been ever so slightly softening its tone on Israel’s war on Gaza. US President Joe Bidenwarned that its ally is “losing support” for its war. Biden also called Benjamin Netanyahu’s bombing campaign in Gaza “ indiscriminate” and said the Israeli prime minister needs to accept a two-state solution.

This comes as Biden’s chances of reelection have come into question as a result of his foreign policy: Almost half of American voters believe that Biden is spending too much on Ukraine aid, and his support for Israel is alienating at least a third of democratic voters.

ALSO- Geopolitics is the single largest factor spooking investors next year: Geopolitical uncertainty will be the biggest economic risk in 2024, according to a poll of 500 global institutional investors. Almost half of respondents (49%) cited “geopolitical bad actors” as a key concern, while 51% think that recession will be inevitable next year.

☀️/ 🌁 THE WEATHER THIS WEEKEND- It’s a sunny day today, with the mercury leaping to 25°C at its highest and dropping to 15°C in the evening. Saturday will be slightly foggy, with the temperature reaching a high of 24°C during the daytime and cooling to 14°C at night, according to our favorite weather app.

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 next weekend, Saturday, 16 December. You can book your tour from here.

Nurture your inner artist at the self-portrait workshop hosted by Dawar Artswhich ends tomorrow. Click here for more information.

MUSIC-

Celebrate one of the all-time greats at yet another event at ROOM Art Space and Cafe in Garden City. The venue’s doors will open at 7:30 tomorrow, Saturday, 16 December, giving you a half hour to settle in before the Fairouz Tribute Night begins. The music will be provided by the Michael Onsy Ensemble band, and Batoul El Abd will be delivering the golden vocals. Tickets are priced at EGP 200, and don’t include the price of the mandatory one-order minimum per person.

FILM-

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

HAPPENING NEXT WEEKEND-

Want to sit back and enjoy some Christmasy tunes? Arkan Plaza has you covered. TheirChristmas Show, put together by Gaby Bishara, will bring you the smooth sounds of Louis Armstrong and Ol’ Blue Eyes himself in a blend of your favorite jazz tunes and classic Christmas tracks. Clear your schedule on Friday, 22 December to head on over.

The Cairo Symphony Orchestra will host a Christmas concert on Saturday, 23 December at 8pm. You can book your ticket from here.

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