Good afternoon, folks and welcome to the first full week of 2024. Our news cycle is picking up in what looks like a busy week.

THE BIG STORIES TODAY

#1- Local currency bond issuances in BRICS countries on the horizon:Egypt is aiming to issue bonds in the local currencies of countries in the New Development Bank (NDB), according to a statement from Finance Minister Mohamed Maait. Founded by Brazil, Russia, India, China and South Africa (BRICS), the NDB has expanded to include Egypt as of last April, as well as the UAE and Bangladesh.

Remember: Egypt is planning to make an INR-denominated issuance in India in 2024, Maait said last month. Egypt has been looking to issue local currency bonds abroad as global inflation and currency uncertainty has all but shut the country out of USD denominated bonds. Egypt closed a CNY 3.5 bn issuance in China and a JPY 75 bn issuance in Japan last fall.

#2- Chevron to kick off production in Nargis next year: US energy giant Chevron will reportedlystart producing gas from Egypt’s offshore Nargis gas field in 1H 2025, Asharq Business quotes an unnamed government official as saying. Chevron will initially produce some 600 mn cubic feet (cf) during the first phase of production, with production expected to jump to 1 bn cf within two years of operation, the source added.

ICYMI- Chevron will reportedly invest USD 3 bn through 2025 to develop the Nargis gasfield, according to unconfirmed reports. The field holds an estimated 2.5 tn cf of gas

THE BIG STORY ABROAD

Dominating the international press today is Donald Trump’s staggering lead in the Iowa polls ahead of the caucuses tomorrow. Leading with 48% ahead of Nikki Haley’s 20% and Ron DeSantis’ 16%, the former US president looks to be well-positioned for the Republican nomination, although DeSantis is still hoping for a turnover in Iowa to help him move up the ranks. Over in New Hampshire, Haley is doing a little better but still trailing behind Trump by 14 points. With expected severe weather coming up in Iowa, it’s unclear how many voters will make it out to the caucus with campaign events being canceled ahead of the event. Meanwhile, Trump is spending time in courtrooms to defend himself against allegations of real estate fraud and attempting illegal means of retaining power after losing the 2022 election. (Bloomberg | Financial Times | Reuters | Washington Post | Wall Street Journal)

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

  • Unlocking a larger IMF package is “critical” for the success of Egypt’s loan program, the international lender’s director of communications said.
  • ADQ invests big in historic hotels: Abu Dhabi wealth fund ADQ and its subsidiary Adnec Group will take part-ownership of several luxury Egyptian hotels after it signed an agreement to acquire 40.5% of Icon, the hospitality arm of Talaat Moustafa Group (TMG), through a capital increase.
  • Tensions in the Red Sea spill over into conflict: The US and the UK with support from Australia, Canada, the Netherland, and Bahrain carried out air strikes on Houthi facilities across Yemen on Thursday after repeated attacks by Houthi fighters on commercial vessels crossing the Red Sea in recent weeks.

enterprise

*** It’s Inside Industry day —your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: We break down the government’s plans to develop Egypt’s manufacturing activity during President Abdel Fattah El Sisi’s third presidential term.

☀️ TOMORROW’S WEATHER- Expect another sunny day tomorrow with a high of 19°C during the day and a low of 11°C coming in later in the evening, according to our favorite weather app.

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