Good morning, folks. Automotive localization and privatization is leading the local business news once again this morning — two areas that have increasingly popped up over the last year and will likely continue to do as we near the end of the year. But that’s not all, as we’ve got energy updates, real estate news, and more in today’s issue for you to read through this morning.

PSA-

WEATHER- It’s a cool, but dry day in Cairo today, with a high of 22°C and a low of 13°C, according to our favorite weather app.

There are intermittent light showers forecast for Alexandria, along with a high of 23°C and a low of 11°C.

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WATCH THIS SPACE-

LNG imports to continue until at least 2029? Egypt is planning to carry on importing liquefied natural gas until the country closes the gap between domestic production and consumption in either 2029 or 2030, Asharq Business reported, citing an anonymous government official. EnterpriseAM was unable to verify the story with the Oil Ministry when we reached out to them.

By the numbers: Natural gas production declines have reduced output to 4.3 bn cubic feet per day, against a daily demand for 6 bn cubic feet, according to the outlet.

IN THE HOUSE-

Lawmakers to vote on cash-based subsidies bill today: MPs are expected to give their final approval to a government-drafted cash-based subsidies bill aimed at supporting citizens living under the poverty line. The legislation, which received preliminary approval yesterday, establishes a Takaful and Karama fund to distribute payments, funded by the state budget, private contributions, foreign grants and loans, and investments.

MPs are also set to decide on five draft agreements authorizing the Oil Ministry to partner with foreign companies for oil and gas exploration in the Mediterranean, Nile Delta, and Western Desert.

HAPPENING TODAY-

Cairo is hosting a ministerial conference on the humanitarian response in Gaza today, with senior government ministers from across the globe and UN Secretary-General António Guterres expected to be in attendance, according to the Egyptian State Information Service

HAPPENING TOMORROW-

#1- Can Egypt’s non-oil private sector reverse its slump? S&P Global will publish Egypt’s Purchasing Managers Index (PMI) figures for November tomorrow, measuring the country’s non-oil private sector activity. Last month, non-oil private sector activity continued to contract, but at a slower pace, as rising raw material and utility costs pressured prices and hit new order volumes.

#2- The retail tranche of United Bank’s EGX offering closes tomorrow, giving retail investors only today and tomorrow to put their hat in the ring. The bank’s private placement that wrapped last month was 6x oversubscribed.

Remember: The total offering could see the bank raise up to EGP 4.6 bn by floating 330 mn ofits shares — equivalent to a 30% stake.

HAPPENING THIS WEEK-

eSIM services are coming to Egypt this week: eSIMs are set to arrive in Egypt this week after months of speculation over their planned arrival, an official at the National Telecom Regulatory Authority told EnterpriseAM. eSIMs will be offered by four operators for EGP 270. The technology will be supported on Android and iOS operating systems, with the service set to be launched simultaneously by all providers.

eSIMs? eSIMs are a digital version of a SIM card that can be put in your phone by scanning a QR code or putting in a code. The newest Apple, Samsung, and Google phones are already eSIM-compatible, and many believe it is only a matter of time before physical SIM cards are tossed into the dustbin of history.

FROM THE DEBT MARKETS-

The central bank sold EGP 60.4 bn worth of three-month t-bills with an average yield of 31.20%, up 0.28 percentage points from its last auction and surpassing the EGP 40 bn target.

DATA POINT-

International financial institutions invested nearly USD 890 mn in Egypt’s private sector during November, with climate finance, SMEs, sustainable tourism, and renewable energy projects as part of the government’s Nexus for Food, Water, and Energy initiative (NWFE) being the key targeted sectors, according to a statement from the Planning and International Cooperation Ministry

The breakdown: The International Finance Corporation contributed the lion’s share of the total with USD 605 mn in investments, followed by the European Bank for Reconstruction and Development with USD 184 mn, and British International Investment with USD 100 mn.

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the state’s plans to offer up plots of land across the country to help boost local manufacturing. Check out the story here.

CLARIFICATION- Our report on Compass Capital and CI Capital’s C3 Capital Fund in yesterday’s edition that we picked up from a local media report said that the project had been approved by the Financial Regulatory Authority. A CI Capital representative got in touch with EnterpriseAM to clarify that the new fund "is currently under study and has not yet received FRA approval." The story has been amended on our website.

THE BIG STORY ABROAD-

The never ending drama that is US politics is once again topping the digital front pages of the global press, with news out in the early hours of this morning that Joe Biden has pardoned his son Hunter Biden, who had earlier been convicted on gun and tax charges. The outgoing president justified the decision — and reversal of a previous pledge not to do so — by arguing that “Hunter was singled out only because he is my son” and that “raw politics” had infected the process. (New York Times | Washington Post | Wall Street Journal | Reuters | Associated Press | Financial Times | Guardian)

Diplomats, foreign policy wonks, and journalists are continuing to try to figure out how rebel forces were able to rapidly take over Syria’s largest city Aleppo, with a growing consensus emerging that the offensive came as Iran, Hezbollah, and Russia scaled back their presence in the country to focus on conflicts of their own. All eyes are now on the Syrian Armed Forces as it regroups to launch a counterattack backed by Russian airstrikes. (Financial Times | Reuters | AP | WSJ | New York Times | BBC | Guardian | Bloomberg)

Trump’s pick for his Middle East advisor is also turning heads, with the president-elect appointing Lebanese-American businessman — and "coincidentally" his daughter’s father-in-law — Massad Boulous to the role. (Reuters | Financial Times | Washington Post)

While in business news, the CEO of automotive giant Stellantis Tarlos Tavares has abruptly resigned, amid a slump in profits and sales that led to a 43% drop in share value from the start of the year. (New York Times | Financial Times | Bloomberg | Guardian)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at what industry insiders in the private education system are calling for to encourage investors to build more schools.

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