Good morning and welcome to the beginning of the work week. We start the week with news of an IMF delegation in town and look likely to finish the week with some bigger news once we find out what has actually been discussed — and hopefully agreed — during their trip.

But it’s not all about the IMF on the agenda today, with news of another downgrade sovereign credit rating from Moody’s making the front pages of the local business press and riling up our talk show hosts. We’ve also got news of the latest credit card fx restrictions, disruptions in the Red Sea, and a construction update from ACWA Power’s Kom Ombo solar plant set to be completed this year.

PSA- We’re in for a four-day work week as the nation takes a holiday this Thursday,25 January in observance of Police Day and the 25 January revolution. Both the public and private sectors will be off, according to a cabinet statement. You can expect the central bank and EGX to follow suit with announcements soon.

** EnterpriseAM Egypt will also take a break from your inbox this Thursday, but we will be back bright and early on Sunday with all the business and finance news from the long weekend.

HAPPENING TODAY-

The Senate is back in session: The Senate will reconvene today after a two-week break to discuss a report detailing the government’s policy and promotion strategies to ramp up tourist traffic and tourism-linked investments into the country.

It’s also a busy day for Senate committees: The Economic and Financial Affairs Committee will evaluate the impact of 2008’s building tax law on real estate investment, the Industry Committee will evaluate plans to develop the SZone, and the Agricultural Committee will figure out how to develop our fish farm industry. While the government’s plans for building affordable housing for low-income families will be inspected by the Housing Committee and the Legislative and Constitutional Affairs Committee will take a look at 1996 law on rental contracts.

HAPPENING TOMORROW-

#1-BEBA is serving up cyber security for breakfast: The British Egyptian Business Association’s (BEBA) briefing breakfast on cyber security will start tomorrow at 9:30am CLT. You can register for Cyber Security: How to Mitigate the Growing Digital Risks and Hazards here.

Why you should care: Last year saw unconfirmed reports alleging that two Egyptian blue chipcompanies were hacked by LockBit — the world’s most successful ransomware gang — compromising personal and financial data. We have been unable to verify all of LockBit’s claims, but the hack suggests that LockBit has turned its sights on Egypt and other emerging markets — likely banking on companies here taking a less-sophisticated approach to cybersecurity.

#2- Tomorrow in the Senate: The Senate will meet again tomorrow to discuss a report about localizing the electronic games industry through partnerships with foreign investors with the aim of — you guessed it — increasing FX revenues.

3#- Arab summit tomorrow in Brussels to seek Gaza ceasefire: Arab foreign ministers and Arab League representatives will land in the Belgium capital to meet their European counterparts tomorrow to discuss how to reach a ceasefire in Gaza.

HAPPENING THIS WEEK-

The EU-Egypt Association Council will meet in Brussels on Tuesday, 23 January, according to a statement by the EU. Foreign Minister Sameh Shoukry will lead the delegation for the meeting chaired by the EU foreign policy chief Josep Borrell. The talks are set to discuss cooperation under the Egypt-EU partnership priorities 2021-2027 framework and address “human rights, security, counter-terrorism, and migration – as well as cooperation in economic and social issues – ranging from investments to environment and energy,” the EU statement adds.

CIRCLE YOUR CALENDAR-

TE to pilot 5G in 3 months: Telecom Egypt aims to start rolling out fifthgeneration (5G) network services by the end of year, Mohamed Nasr told Asharq Business, adding that trial operations will start within the coming three months. Telecom Egypt earlier this month received the country’s first license to install and operate 5G networks at a cost of USD 150 mn.

Do Egyptians have the hardware to handle 5G?While currently only 8% of mobile phones inEgypt currently support 5G technology, Nasr sees the figure increasing over the coming period.

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

THE BIG STORY ABROAD-

Talk of an “undeclared regional war” is driving the conversation in our part of the world in a growing number of global business news outlets. “Risk of a regional conflagration is growing daily,” Bloomberg reports, noting that the UAE’s ambassador to the UN, Lana Nusseibeh, said in an interview that “the risks are high, the war in Gaza is very clearly an open wound and it’s destabilizing the region.” The US, she said, needs to support an immediate ceasefire in Israel’s war in Gaza.

Beijing may be able to step up its diplomacy in the region in a bid to keep a lid on the conflict. While officials are yet to signal formal diplomatic or military involvement, policymakers in China are becoming worried that disruption to Red Sea shipping could threaten their economy as it causes “huge losses for Chinese companies,” the Financial Times writes. The salmon-colored paper believes that Washington has asked Chinese diplomats to consider pressuring Iran to rein-in the Houthis.

Per the Wall Street Journal: “Violence from Lebanon to Iraq to the Red Sea all but amounts to an undeclared regional war, with Iran-backed militants fighting Israel and the US,” it writes in what it’s pitching as “ a guide to the Middle East’s growing conflicts.”

Tell us something we didn’t know: The oil market is “bracing for a weeks-long disruption” to shipping in the Red Sea, Bloomberg reports, saying data shows a growing number of tanker charters are being booked for routes that go around the Cape of Good Hope. Cruise lines are also giving the Red Sea a pass, Reuters notes.

ALSO MAKING HEADLINES:

  • Nikki Haley is stepping up her assault on her former boss, Donald Trump, questioning his age and mental health after he confused her with Nancy Pelosi. Republicans in New Hampshire hold their primary on Tuesday, so expect lots of noise from the campaign trail in the days to come.
  • OpenAI impresario Sam Altma is back to raising funds from the GCC and other backers for a global network of chip factories to serve the booming AI industry, Bloomberg reports. Abu Dhabi’s G42 is said to be interested in investing and Saudi Arabia’s Public Investment Fund has a track record of exploring chip investments with Altman.
  • A Japanese lander has made it to the surface of the moon, making Japan only the fifth country to make it to the surface after the US, the Soviet Union, China, and India. The mission could be curtailed by a power problem on the Slim lander, the Guardian writes.
  • Germany eases citizenship rules and drops bar on dual citizenship in a move that opens up the possibility of German citizenship to tens of thousands of Egyptians living there. German lawmakers hope the new legislation will attract skilled workers and better integrate migrants.

WAR WATCH-

Biden pushes for a Palestinian state as he breaks four-week silence withNetanyahu: US President Joe Biden has pushed for the two-state solution during a call with Israeli Prime Minister Benjamin Netanyahu — the first time they spoke in nearly a month. Biden insisted following the call that a two-state solution was possible during Netanyahu’s tenure, even as the Israeli PM had publicly rejected any notion of forming a Palestinian state the day before.

Things had been left on a sour note: The last phone call on 23 December between Biden andNetanyahu was described by a US official cited by Axios as one of the most “frustrating” conversations that Biden has had with the Israeli PM since the onset of war as the pair disagreed over Israel’s decision to withhold part of the tax revenue it collects for the Palestinian Authority.

The Biden-Bibi conversation is getting plenty of coverage in the int’l papers: AssociatedPress | The Guardian | Axios | New York Times | France 24 | CNN

AND-Iran has accused Israel of carrying out a strike in Damascus on Saturday that targeted the residence of Iranian military advisors and killed at least five people. In turn, Iran’s parliament speaker Mohamed Bagher Qalibaf promised to take “severe response”. (Bloomberg)

MORNING MUST READ-

The Davos round-up: Reuters and CNBC are out with their Davos round-ups for thisyear’s World Economic Forum in Davos. The key takeaways? Red Sea disruption will increase inflationary pressures; investors remain cautious towards China amid its economic slowdown; more firms are looking to monetize from AI; and demand for oil won’t peak any time soon, according to Aramco.

ALSO- MNT Halan CEO Mounir Nakhla joined National Bank of Cambodia Governor Serey Chea, CNBC Africa Chief Editor Godfrey Mutizwa, Old Mutual Emerging Markets CEO Iain Williamson, the Queen Máxima of the Netherlands for a panel on financial inclusion. Catch the full panel here (watch, runtime: 47:40).

AND-Saudi Arabia will host a World Economic Forum meeting on 28-29 April this year — marking the forum’s first meeting outside of Davos since Covid, Reuters reports. The kingdom’s foreign minister said that the meeting is set to center around global collaboration, growth, and energy.

Tags: