Good morning, wonderful people and welcome to the start of the week. We’re off to a slow start in local business news this week, but talk of the stake sale in the fuel retailer Wataniya closing in on three final offers could mean that we’re set for some big privatization news before the week is over. So, let’s jump right into it.

WATCH THIS SPACE-

#1- The Madbouly government could name Wataniya’s newest shareholder this week, after it stopped receiving offers for the fuel retailer, Al Masry Al Youm reported on Wednesday, citing what it said are senior government sources. There are three final offers on the table for a 30% stake in the company.

Guess who? Taqa Arabia is the only firm to have publicly declared interest in the filling station operator, which has been on the market for the last four years, but Abu Dhabi National Oil Company (Adnoc) and Shell and several other companies have reportedly been lodging bids. However, Adnoc has reportedly withdrawn its bid for a stake in fuel retailer, Al Borsa reported yesterday, citing sources it says are familiar with the agreement.

#2- Fresh tax, custom breaks for investors in the new capital? The Finance Ministry is looking into a package of tax and custom breaks aimed at attracting investors to the new capital’s Central Business District, Finance Minister Mohamed Maait said during a roundtable on Friday. Maait did not provide any further details.

#3- Gov’t putting final touches on the redrafted Labor Act: A committee headed by Manpower Minister Hassan Shehata will soon present the redrafted Labor Act to the Supreme Council for Social Dialogue before passing it along to the House of Representatives for discussion, according to a statement from the Labor Ministry.

Remember: The government initially pulled the bill from the House of Representatives last year to redraft it after backlash from the business community, which said the original version was lopsided in favor of workers. Prior to the redraft, the bill would have introduced new labor rights, including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things.

HAPPENING TODAY-

The Senate returns: The Senate will convene today and tomorrow to discuss a report on developing the transport sector and localizing smart transport industries.

MEANWHILE- Senate committees have a busy Sunday ahead:

  • The Industrial Committee will review the challenges facing Egyptian industry and the necessary measures to boost industrial production, exports, and investments.
  • The Financial and Economic Affairs Committee will look into the measures to speed up the issuing of the 2022 Unified Finance Law’s executive regulations.
  • The Agriculture Committee will assess the benefits of implementing smart irrigation systems across Egypt.
  • The Foreign and Arab Affairs Committee will discuss ways to maximize political and economic benefits of the Egypt-EU partnership.
  • The Defence and National Security Committee will assess the impact of mega projects on supporting social and economic aspects of the country’s national security.

HAPPENING TOMORROW-

The Egypt Energy Show is kicking off tomorrow at the Egypt International Exhibition Center in New Cairo. The three-day event will gather 35k energy industry professionals and host over 80 conferences on energy transition and sustainable production. It will run until Wednesday.

PSA- The cigarette of the people just got pricier:State-owned tobacco giant EasternCompany has hiked the prices of cigarettes between 10-19%, the company said in a statement (pdf). The price of a pack of Cleopatra has risen by EGP 3 to EGP 30, while its pricier Viceroy and Pall Mall cigarettes now go for EGP 50 per pack, up from EGP 42.

Driving the hike: The price hike came in response to the “volatile increase in prices of tobacco and non-tobacco materials imported from abroad” and the rising cost of production, Eastern CEO Hany Aman said.

This is the latest in a series of cigarette price hikes: Tobacco distributor Al MansourInternational Distribution Company and Philip Morris both hiked their prices last week.

WAR WATCH-

Egypt rejects refugee camp construction rumors: Egypt has denied rumors it’s setting up a refugee camp in North Sinai to house Palestinians fleeing from Gaza after images circulated on social media and in international media outlets showing large concrete blocks being placed near to the country’s northernmost border. Following the claims, North Sinai Governor Mohamed Shusha said in a statement that the under-construction enclosure is for a logistics hub to store and better organize aid deliveries to Gaza.

The claims in question: The Wall Street Journal reported that Egypt is preparing an area at its border with Gaza to accommodate over 100k Palestinians in the event of exodus.

The government remains firm in its opposition to the displacement of Palestinians: The government categorically rejects “any forced or voluntary displacement of our Palestinian brothers from the Gaza Strip to outside it, especially to Egyptian lands, because this would certainly lead to the liquidation of the Palestinian cause,” State Information Service chief Diaa Rashwan in a statement. The country “will take every necessary measure to prevent those who seek to cause this [evacuation.]”

WHILE OVER IN THE DIPLOSPHERE- President Abdel Fattah El Sisi “affirmed Egypt’s categorical rejection” of the displacement of Palestinian refugees into Sinai during a phone call with French President Emmanuel Macron. El Sisi also discussed aid and ceasefire efforts in a phone call with Canadian Prime Minister Justin Trudeau over the weekend.Foreign Minister Sameh Shoukry was also on a diplomatic offensive to push for a ceasefire during meetings with EU foreign policy head Josep Borrell and Shoukry’s Norwegian and Portuguese counterparts on the sidelines of the Munich Security Conference.

MARKET WATCH-

Oil prices rise on Middle East unrest: Oil prices rose on Friday triggered byescalating tension in the Middle East and a hotter-than-expected US inflation report, Bloomberg reports. Brent crude was up almost 1% to USD 83.53 a barrel, while US West Texas Intermediate crude rose 1.5% to USD 79.19 per barrel, its highest level since November. “Oil prices have been quite choppy … partly because of the USD’s strength holding it back,” City Index and Forex analyst Fawad Razaqzada said.

Prices probably won’t stay high for long: Growing supplies paired with global demand losingmomentum means the oil market could stay in surplus all year long, the International Energy Agency said in its most recent monthly report. “The expansive post-pandemic growth phase in global oil demand has largely run its course,” the report says, adding that it now forecasts global demand increasing at half the rate of last year to 1.2 mn barrels per day.

DATA POINTS-

#1- Egypt’s growth seen slowing to 3.7% in 2024, down from 4% in 2023, according to a report (pdf) on the continent’s macroeconomic performance by the African Development Bank. After dropping during the current calendar year, the bank thinks that growth will accelerate to 4.2% in 2025.

But Africa could see major growth this year: The report forecasts that Africa will be thesecond-fastest growing region after Asia, with 11 countries accounting for the 20 fastest-growing economies in 2024 — though Egypt is not among them.

#2- Unemployment inched down to 6.9% in 4Q 2023, after having nudged up to 7.1% in the previous quarter, according to data released by state statistics agency Capmas. On a year-on-year basis, unemployment dropped by 0.3 percentage points from the same periodin 2022.

The gender breakdown: The unemployment rate among women rose to 17.7%, from 17.2% in 3Q 2023, while it decreased among men to 4.6% from 4.8%.

CIRCLE YOUR CALENDAR-

The Emigration Ministry is hosting the Egypt Health Tourism InternationalConferenceon 2-3 March at the new capital’s St. Regis Almasa Hotel. The conference will bring together government officials and medical, tourism, and medical tourism professionals to discuss ways to make Egypt a medical tourism destination, the ministry said in a statement.

The why:Egypt has been trying to position itself as a medical tourism hub to attract FDI and to open fresh FX revenue streams from patients from Africa, the Middle East, and Europe coming here for treatment on the back of our talented and well-trained medical staff and the competitive price point Egyptian hospitals can offer.

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

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