Good morning, folks, and welcome to the first day of a new work week. We’re off to a strong start this week in terms of investment, with a handful of big ticket projects announced that will be music to the ears of those banging the localization drum. But that’s not all, with the Supreme Constitutional Court’s ruling on the “old rent” law yesterday, nine-figure financing for the renewables sector, and more in today’s issue.

PSA-

WEATHER- It’s another refreshingly cool day in Cairo today, with a high of 24°C and a low of 16°C, with a chance of light-to-moderate rain in the capital city and various parts of the country, according to our favorite weather app.

It’s only a tiny bit cooler in Alexandria, with a high of 23°C and a low of 15°C, with a chance of moderate-to-heavy rain in the whole north of the country.

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WATCH THIS SPACE-

Will the “old rent” law soon be revamped? The Supreme Constitutional Court ruled yesterday the fixed rent for residential properties stipulated in the so-called “old rent” law as unconstitutional and called on lawmakers to amend the first two articles of the law before the legislative season comes to a close. The court argued that the fixed annual rent cap set at 7% of the land and building’s value at the time of licensing showed the law’s failure to take into account inflation is unfair and denies landlords rights afforded to them under the constitution.

The House got the message: The parliament’s housing committee had already prepared a preliminary report on the “old rent” laws and it is scheduled to be presented at the upcoming general sessions, the House of Representatives said in a statement (pdf) yesterday.

The state has had the old rent law in its crosshairs for some time now: After years of talk of overturning the law, efforts picked up a gear last year after President Abdel Fattah El Sisi urged lawmakers to address the old rent law, telling a conference in the new capital that it is “unacceptable” that property owners are unable to take economic advantage of what he said amount to 2 mn housing units across the country. The then-newly elected chair of the House Housing Committee, Mohamed Attia El Fayoumi, told the media that amending the old rent law will be at the top of the committee’s agenda in the coming legislative season.

**We have more in Last Night’s Talk Shows below.

DATA POINT-

Tourist footfall is expected to reach a record high of 15.3 mn in 2024, increasing 5% y-o-y from the year before, according to a statement from the Tourism Ministry. The ministry’s most current projection is down from initial targets to welcome 15.7 mn tourists made earlier in the year.

We’ve got five years to up annual arrivals by nearly 10 mn: The government is working towards welcoming 25 mn tourists annually by 2030, down from a previously-set goal of hitting 30 mn tourists by 2028.

HAPPENING TODAY-

#1- It’s inflation day: State statistics agency Capmas and the Central Bank of Egypt will release inflation data for October today.

A Reuters poll of 17 analysts see headline inflation accelerating 0.6 percentage points to 27.0% y-o-y in October, with fingers firmly pointed at fuel price hikes that came into effect during the month and education costs.

This would mark the third consecutive monthly increase in inflation, as transport and energy costs continue to push up the headline figure despite food and beverage price inflation continuing to retreat on an annual basis.

But there’s still optimism that inflation will start cooling before the end of the year: Capital Economics’ James Swanston said they “expect for inflation to slow over the remainder of Q4 and more sharply in Q1 2025 to allow the central bank to start its monetary loosening cycle."

#2- Malaysian Prime Minister Anwar Ibrahim is in Cairo for a four-day trip to discuss Egypt-Malaysia relations, Malaysian state news agency Bernama reports. The visit, which began yesterday, will focus on developing bilateral ties in trade and investment, defense and security, tourism, education, and religious affairs, renewable energy and water.

Stay tuned for: Ibrahim is set to launch an assembly operations center for Malaysian automaker Proton during his visit and ink MoUs with Al Azhar to strengthen religious education and religious affairs cooperation.

#3- It’s day one of Falak Startups’ Fund Manager Masterclass: Emerging fund managers, entrepreneurs, and angel investors are gathering in Cairo today to attend the three-day, EBRD- and USAID-supported event to learn everything you need to know about VC funds from raising funds to successfully exiting companies.

THE BIG STORY ABROAD-

It’s a mixed bag in the international press this morning, giving us a mix of stories focused on the latest in US politics and the peace talks between Israel and Hamas.

Qatar suspended its negotiation efforts between Israel and Hamas for a ceasefire and hostage release agreement, and will resume the talks “when the parties show their willingness and seriousness” to end the war, Qatar’s Foreign Ministry said. The ministry pointed to “manipulation” and “blackmail” Qatar is facing as a mediating party, while “obligations agreed upon through mediation” are not being met.

As the negotiations stalled, media reports suggested that Qatar has requested that Hamas leaders leave the country, although the foreign ministry said in its statement that “media reports regarding the Hamas office in Doha [are] inaccurate,” without providing further details. Reuters, Bloomberg, and the Financial Times have the story.

In other regional news: Israeli airstrikes killed another 40 people in Lebanon in the past day, including in Tyre and Baalbek, bringing the total death toll in Lebanon from Israeli attacks in the past year to 3,136 people, including 619 women and 194 children, Reuters reports.

ACROSS THE POND- Republicans are on track to secure control of Congress, with the party already securing enough votes to take over control of the Senate, while the House looks likely to end the election with its Republican majority intact. Axios and Reuters have more.

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