LEGISLATION WATCH-

Redrafted Labor Act receives provisional approval from House committee: The House’s Manpower Committee yesterday provisionally approved the redrafted Labor Act. The 267-article bill underwent several rounds of discussions with workers and businessmen over the last year, Labor Minister Mohamed Gobran told MPs on Sunday, adding that he hopes to see the new Labor Act last for more than 30 years.

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What’s next? The redrafted bill will be sent to the cabinet for approval and then referred back to the House for a final discussion and vote, Gobran said.

Remember: The government pulled the bill from the House last year after the legislation received backlash from the business community, many of whom claimed that the original version’s terms were lopsided in favor of workers. The new law will include provisions that protect and support irregular workers — who currently make up between 60-80% of Egypt’s total workforce.

ENERGY-

Gov’t signs MoUs with international firms on energy cooperation: State-owned oil and gas firms and international energy companies inked a number of MoUs on the sidelines of the Mediterranean Offshore Conference and Exhibition (MOC) to enhance cooperation in areas such as operational safety, carbon capture and storage, and decarbonization, according to a statement from the Oil Ministry.

The agreements signed: Both EGAS and the Egyptian Natural Gas Company (Gasco) signed agreements with Greek national gas system operator DESFA, with EGAS’ agreement focused on carbon capture and storage technology and Gasco’s on natural gas transport, carbon capture, and renewable energy. Gasco also signed a cooperation agreement with American risk management firm BakerRisk focused on improving operational safety and energy efficiency. And the Egyptian General Petroleum Corporation (EGPC) and Shell inked an agreement to develop leadership training on health, safety, and environmental issues within EGPC’s subsidiaries.

INVESTMENT-

#1- Titan Capital owner mulls moving some of his investments to Egypt: Japanese real estate mogul and Titan Capital owner Kanazawa Kiyokyo is considering moving a portion of his USD 8 bn in investments to the Egyptian market, he said during a meeting with Housing Minister Sherif El Sherbiny. Kiyokyo added that he hopes to form an investment alliance based in Egypt that will serve as a jumping-off point for broader investment in Arab and African markets.

#2- Egypt’s B-Well eyes USD 20 mn in Gulf investments: B-Well Holding Company — a healthcare firm recently established by Shark Tank’s Ahmed Tarek and Mohamed Farouk — is in talks with investors from Saudi Arabia and the UAE over a USD 20 mn investment for 20% of the company, Tarek told Al Arabiya. The fresh investment will help fund the company’s planned USD 100 mn investment in the healthcare sector over the coming six years, with plans to open 200-300 clinics initially and eventually expand to 1k clinics.

The company also plans to launch a medical tourism platform catering to patients from Europe and the Arab region, with Tarek telling Al Arabiya that the platform should be ready in March or April of next year.

HOUSING-

Gov’t issues new income requirements for subsidized mortgages: The Housing Ministry has published new income limits for low- and middle-income citizens wishing to apply for subsidized housing under the new offering by Social Housing and Mortgage Finance Support Fund, according to a ministry statement.

The breakdown: For low-income citizens, the net monthly income from all sources must be no less than EGP 3.5k and no more than EGP 15k for families and 12k for individuals. Middle-income households’ net monthly income must be at least 12k and not exceed EGP 25k for a family and 20k for an individual.

AUTOMOTIVE-

Raya Holding’s automotive unit Raya Auto plans to invest over EGP 300 mn in EVs over the next three years, Taya Holding CEO Ahmed Khalil told Asharq Business. The investments will be directed toward establishing service centers and after-sales services for EVs. The company aims to sell 2k of its locally-assembled EVs annually.

EXPANSION-

#1- Kazyon to expand in Morocco: Budget supermarket chain Kazyon is investing USD 144 mn to expand in the Moroccan market — particularly in major cities — over the coming four years, Kazyon Morocco CEO told Asharq Business. The company — which currently operates over 1.3k stores across Egypt, Saudi Arabia, and Morocco — has opened 120 stores in Morocco since beginning operations in the country in October 2023, and plans to open an additional 150 stores in the coming year.

Remember:Kazyon stepped into the Saudi market in February of this year with its 50% stakepurchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction. The company — founded in 2014 by our friend Hassan Heikal, the former EFG Hermes CEO — plans to expand its portfolio to 5k stores across Egypt, Morocco, and Saudi Arabia within the next five years.

#2- Tez Tour eyes expansion into Asia in 2025: Russian tourism firm Tez Tour Egypt has plans to expand into the Chinese and Indian markets by next year, board member Hany Usama told Al Borsa.

#3- Fresh details on the new Huawei office: Chinese tech giant Huawei earlier this week inaugurated its new headquarters in Al Futtaim Real Estate’s Cairo Festival City’s Business District, according to a press release (pdf). The 9k sqm office “is designed and built on a foundation of advanced technological infrastructure, tailored to support its Egypt operations. The workspace promotes collaboration and innovation through cutting-edge design and resources.”

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