Good morning, folks. The news flow has picked up after a couple of less than eventful days with news of fresh incentives to reel in healthcare investments, more banks loosening their FX spending limit, and yet another Egyptian-Chinese EV venture.

WATCH THIS SPACE-

#1- CBE pulled a record EGP 1.1 tn in liquidity from local banks: The Central Bank of Egypt (CBE) yesterday accepted bids for a record EGP 1.1 tn in fixed-rate deposits at a rate of 27.75% during its weekly fixed-rate auction, according to data on its website. This is the CBE’s largest single withdrawal of surplus liquidity from the domestic banking system to date.

Remember: The CBE last month introduced a new mechanism for its weekly fixed-rate auctions, switching to a full allotment system that ensures all the bids submitted by commercial banks are accepted. Previously, the CBE only accepted a portion of the bids based on criteria outlined by the bank.

SOUND SMART: Deposit auctions are one of the open market operations used by the CBE to manage liquidity in the banking system. They aim to reduce the money supply and curb inflation.

#2- Four new freezones incoming: The General Authority for Investment and Freezones (GAFI) will set up four freezones within the next six months, GAFI deputy chairman Yasser Abbas told the House Economic Committee yesterday. There are currently nine public freezones in the country, according to GAFI’s website.

We could be looking at new private freezones as well: Al Ahly Sabbour Developments and Redcon Construction have filed requests to the government to set up private freezones in New Cairo, while a third undisclosed investor has also filed a request to establish a private freezone in Sharm El Sheikh. The government will soon announce the new licensing requirements for private freezones.

#3- Senate greenlights proposal to usher in private equity funds: The Senate and the Financial Regulatory Authority (FRA) have given the go ahead for an amendment to the Capital Market Act that would open the door for the establishment of private equity funds, Al Mal reports. According to the proposal, private equity funds would take the form of limited liability companies and simple partnerships.

WANT TO ATTEND OUR NEXT FORUM?

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

DATA POINT-

A whole lot of green projects up for grabs: Egypt’s green economy offers USD 120 bn worth of potential investments through 2035, Asharq Business quotes United Nations Industrial Development Organization Egypt’s Annachiara Scandone as saying. These include investments in new energy and waste management, among other areas.

PSA-

The soft launch of phase 3C of Cairo Metro Line 3:The latest extension of Cairo Metro Line 3 will kick off passenger trial operations today, according to a cabinet statement. This phase extends the city’s metro system to the Rod El Farrag axis west of the ring road. The route extends from Rod El Farrag’s El Tawfikia to Cairo University, and passes through three other stations. The passenger trials follow a testing period during which all of the metro’s systems — such as lighting, air conditioning, ventilation, and firefighting — were examined.

WEATHER- It’s sunny in Cairo today, with a high of 30°C and a low of 19°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 26°C and a low of 16°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

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THE BIG STORY ABROAD-

It’s a mixed bag on global front pages this morning as a number of stories captivate the attention of the business pages.

The US has imposed a series of new tariffs on Chinese imports, including a 100% tariff on Chinese EVs as part of “ a package of measures designed to protect US manufacturers from cheap imports.” Also on the list: semiconductors. We have the details in this morning’s Planet Finance, below.

YOUR DAILY DOSE OF AI NEWS- Google introduced its AI assistant Project Astra. Think of Project Astra as your personal assistant who can help you find the keys you misplaced or explain a complicated piece of code. It will be powered by an upgraded version of Google’s Gemini and eventually be available across all of Google’s software. Like OpenAI’s Scarlett Johansson-sounding model yesterday, Project Astra can interact with users through text, audio, and video. The Verge’s David Pierce has a solid rundown here if you want more.

Google is also going to start to roll out AI search summaries to its users, starting in the US.

AND- OpenAI cofounder’s and chief scientist is out. Ilya Sutskever leaves six months after he participated in a palace coup that saw CEO Sam Altman briefly kicked out of the hot AI startup.

MEANWHILE- THE MEME STOCK FRENZY CONTINUES as Roaring Kitty and his army of winged monkeys pushed Reddit shares up 7% to USD 62.34 during trading yesterday. It’s reddit’s second-highest close since it made its market debut.

Want the backstory? Check out yesterday’s Planet Finance, where we dove into the return of Roaring Kitty and its impact on meme stocks. The Wall Street Journal is not along in wondering whether Kitty coming “out of hibernation” means meme stocks are a thing again — or if this is just a blip.

ALSO- Mining group Anglo American is planning to break up after rejecting second BHP offer in a bid to retain control of its most profitable companies, including its copper mining outfit — a smart move given the current copper boom.

FROM THE REGION- Saudi officials are worried about their economy overheating. Saudi Finance Minister Mohamed Al Jadaan thinks the country needs to pace itself when it comes to all these massive investments. The Saudi economy needs to “catch up” with the projects being implemented or else it risks “overheating” and “leakages.”

CIRCLE YOUR CALENDAR-

THIS WEEKEND- Go to the Empower Her Art Forum at the National Museum of Egyptian Civilization, which opens Saturday, 18 May at 6:30pm and runs though Wednesday, 22 May. More than 140 artists from 40 countries will be participating to celebrate the “resilience, strength, and creativity of women artists worldwide.” Empower Her Art Forum is organized by Shereen Badr and her team at Artoday. The exhibition is backed by the UN, UN Women Regional Office in Egypt, UNHCR, European Union in Egypt, New York Contemporary Art Society, and Womenovation Foundation.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at the IMF’s suggestions for how the country can remove inefficiencies in public investments and increase private sector contributions.

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