Good morning, friends. We were a little too busy with big-ticket announcements yesterday from the Egypt-EU Investment Conference to remember to wish you all a happy new fiscal year. The new fiscal year that kicked off yesterday may not be as exciting as the Gregorian or the Islamic new years, but for readers of Enterprise its a signal to pay close attention to local business and economic news as new state initiatives officially launch and much of the private sector begins to crank up a gear to start the year-long period on a strong footing.

In today’s issue, we’ve got energy project announcements galore and an unusually large amount of automotive news for you to get through this morning, plus so much more. We’ve got a busy issue today, so let’s jump right in.

WATCH THIS SPACE-

#1- Egypt-EU Investment Conference 2.0: Cairo is looking forward to the 2025 edition of the Egypt-EU Investment Conference, Prime Minister Moustafa Madbouly said during remarks closing out the conference on Sunday. The two-day conference, which wrapped up earlier this week, saw Egypt sign some EUR 67.7 bn worth of MoUs and agreements.

In the meantime: “Our primary focus in the coming period is to translate these signed agreements into actual projects on the ground,” Madbouly said. “Given the successful launch of the conference, it is crucial to follow up on the agreements and the ideas and initiatives proposed, as well as the signed MoUs.”

#2- EU could help us unlock EUR 11 bn in foreign investment: The EUR 1.8 bn worth of investment guarantees under the EUR 7.4 bn financing package from the bloc will be channeled through the European Fund for Sustainable Development and help attract EUR 11 bn in foreign investment across several sectors, according to a statement from the International Cooperation Ministry. The funding will target priority sectors including energy, food security, water, and climate action, and human capital.

Sound familiar? When this EUR 1.8 bn tranche was first announced in March after Egypt and the EU signed a joint strategic and comprehensive partnership, it wasn’t completely clear how the funds would be used. A release (pdf) circulated to media outlets at the time described the funds as “additional investments under the Southern and Neighborhood Economic and Investment Plan,” without providing further details.

#3- We got our first LNG shipment for the season: The government has received the first of a number of anticipated LNG shipments at the Ain Sokhna port yesterday, CNN Business Arabic reported, citing an unnamed government official. The 3.5 bn cubic feet of gas are now being prepared to be transported to the floating LNG regasification unit docked in Ain Sokhna, before commencing the gasification process and integrating it into the national gas network this week, the official added.

The first of many: Egypt secured 20 LNG shipments last week as it works to ensure it has sufficient supplies to keep the lights on during the current period of increased demand expected to last till September. BP and an East Mediterranean Gas Company subsidiary will each supply five of the shipments, Al Sharq Business reported, citing two anonymous officials from the Oil Ministry.

#4- Al Ahly Sabbour has an IPO in the pipeline: Local real estate developer Al Ahly Sabbour is in talks with undisclosed advisors regarding its plans to go public on the EGX, chairman Ahmed Sabbour told Al Arabiya, without providing further details. The company will officially announce its IPO once all preparations are in order and depending on market conditions, Sabbour said, adding that preparations are expected to wrap up within the next 6-9 months.

PSA-

Blackouts officially back to two hours: The Electricity Ministry confirmed that the government has reverted to planned two-hour power outages as of yesterday, instead of three hours, according to a statement from the ministry. The two-hour planned outages will take place between 3pm to 7pm.

Higher processing fees on gold: Gold processing fees have increased by 10% yesterday with the start of a new fiscal year for a year-long period, according to a document seen by Enterprise.

WEATHER- It’s a bright and sunny day in Cairo today, with a high of 39°C and a low of 25°C, according to our favorite weather app.

It’s a little cooler over in Alexandria and along the North Coast, with a high of 34°C and a low of 22°C.

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HAPPENING TODAY-

Act Financial is kicking off its IPO procedures today in an event held alongside IPO manager Zilla Capital.

Remember: The company is offering some 32% of the company’s shares following a capital increase, with the subscription period for retail investors set to take place between 9-23 July, while institutional investors will get a chance to subscribe between 9-18 July.

The company has set the final IPO price at EGP 2.90 per share, it said in a statement (pdf). Financial Advice Corporate Transactions (FACT) — the independent financial advisor to the transaction — set the fair value price at EGP 3.63 per share, down from the EGP 4.54 previously set as the fair value price.

Act Financial also announced its performance during the year so far: The company recorded revenues of EGP 138.4 mn during the first five months of the year and recorded net income of EGP 24.4 mn during the period, it said in its latest financial statement (pdf).

DATA POINTS-

#1- Egypt welcomed a record 7.1 mn tourists in 1H 2024, ever so slightly inching above the previous record in the first half of last year, according to a Tourism Ministry statement. Overnight stays also rose to 70.2 mn from 67.6 mn in the same period last year, leading to an estimated USD 6.6 bn in tourism revenues, up from USD 6.3 bn.

#2- The Sovereign Fund of Egypt has drawn in some EGP 52 bn in local investments and around USD 5.1 bn in foreign investments over the past four years, Planning Minister Hala El Said said during the Egypt-EU Investment Conference, Asharq Business reported.

#3- MENA-bound remittances projected to rebound 4.3% y-o-y to USD 58 bn in 2024 on the back of uptick of flows into Egypt, which the World Bank in its latest Migration and Development Brief (pdf) attributed to people returning to official channels to send money into the country after the unification of the exchange rate in March. Come 2025, the lender sees remittances to the region picking up a further 5.5% y-o-y to USD 61 bn.

#4- The General Authority for Freezones and Investment has issued 31 golden licenses to local and foreign investors in Egypt since December 2022, authority head Hossam Heiba said on the sidelines of the Egypt-EU Investment Conference, Asharq Business wrote.

WAR WATCH-

Egypt rejected rumors it agreed to move or replace the Rafah crossing with another near the Kerem Shalom crossing from Israel into Gaza, an unnamed high-level source told Al Qahera News. The source reiterated Egypt's position that Israeli troops should withdraw from the Palestinian side of the crossing and that the country won’t send any forces into Gaza, adding that the post-war management of the enclave is purely a Palestinian affair.

CIRCLE YOUR CALENDAR-

One for the aerospace aficionados: The Egypt International Airshow will take place from 3-5 September at El Alamein International Airport. The event will showcase the latest developments and innovations in the defense, space, and commercial aviation industries. It will feature flying and static aircraft displays, two conferences, and an exhibition of aerospace products and services, bringing together over 200 global exhibitors. You can register for the event here or inquire about exhibiting here.

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-

US, British and French politics continue to push markets off the front pages of the global business press.

Not much has changed since yesterday: Democrats are still losing it over contentions that Joe Biden is too old to run for president. Top party officials held a call with key donors late yesterday to try to shore up their financial base. The FT sums up the current state of the debate nicely: There’s a growing sense among “donors, consultants, and operatives that Biden is no longer fit to challenge Donald Trump for the presidency and should make way for a younger candidate.”

And it could get messy, the paper says, noting there’s “anger at the president’s family and close circle of advisers for concealing his condition and their unwillingness to countenance his exit from White House race.”

Across the pond: Keir Starmer’s Labour party still leads Rishi Sunak’s Conservatives by 20 points or so in polls. And the horse-trading continues in France, as other parties look to block the far-right Rassemblement National from running away with parliament in second-phase voting due next week.

MEANWHILE- The US Supreme Court ruled that Trump has broad immunity for official (but not necessarily personal) actions he took while in office — a finding that almost ensures he won’t face trial before November on charges that he tried to usurp the 2020 election.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at the new carbon pricing draft law and consider how implementing carbon price mechanisms will help us achieve our green transition goals.

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