Good morning, friends, and a happy hump day to you all. Unlike the weather, local business and economy news is continuing to heat up as we approach the end of the year. We’ve got a packed issue today, so let’s jump right in.

PSA-

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

There’s a chance of light to moderate showers tomorrow in Alexandria, with a high of 23°C and a low of 11°C.

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HAPPENING TODAY–

#1- Today is the last day for retail investors to grab a piece of United Bank, with the retail offering for the Central Bank of Egypt-owned bank set to wrap today, before trading kicks off on the EGX. The tranche is offering 16.5 mn shares — equivalent to 5% of the total offering — at 13.85 a pop.

The offering is already 23x oversubscribed as of yesterday, as retail investors jump one of only two IPOs to kick off this year, Amwal Al Ghad reports, citing sources in the know. Act Financial’s EGX debut in July also saw its retail tranche heavily subscribed, covering the subscription 54x.

The bank’s private placement also saw heavy interest from institutional investors, with the offering of 313.5 mn shares — equivalent to 95% of the total offering — being 6x oversubscribed by the time the offering came to a close last week

All together the offering is expected to raise EGP 4.6 bn, with the bank offering a 30% stake in the company through 330 mn shares.

#2- Will today be the day that Egypt’s non-oil private sector returns to growth territory? S&P Global will publish Egypt’s Purchasing Managers’ Index (PMI) figures for November a little later this morning, measuring the country’s non-oil private sector activity. After breaking into growth territory in August — the first time in three years — the sector fell back into the red for the following two months.

October’s reading puts us just under the growth threshold, edging up to 49.0 and leaving us just below the 50.0 mark that separates growth from contraction. Pressing on the sector in October were rising price pressures — driven by higher costs of raw materials and utilities — that dampened new order volumes across the board.

#3- Food Africa 2024 kicks off today: Africa’s largest food and beverage trade exhibition, Food Africa 2024, opens at the Egypt International Exhibitions Center in Cairo today, hosting over 900 exhibitors from 32 countries. The three-day event will bring together wholesalers, distributors, and retailers in food and beverage industries from countries across the world.

WATCH THIS SPACE-

#1- Egyptian electricity exports to Syria via Jordan could be in the cards: Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Electricity Minister Mahmoud Esmat told Asharq Business on the sidelines of the Arab Ministerial Council for Electricity. Esmat added the caveat that the plan hinges on stabilizing the security situation in the country and did not provide a timeline for when a project

Esmat didn’t provide a timeline for the project, but we may have to wait a while until we have excess capacity to export. An unconfirmed report citing a government official earlier this week pencilled in either 2029 or 2030 as when the country will finally be able to close the gap between domestic production and consumption.

#2- The days of unlicensed apartment rentals for tourists may soon be over, with the executive regulations for a law on apartments rented to tourists and temporary rentals to be “issued in the coming days,” Tourism Minister Sherif Fathy told the House yesterday, according to Al Masry Al Youm. Licenses will be granted based on the apartments’ cleanliness, security, and safety standards to ensure a better experience for those visiting the country, the minister added.

Egypt has some great short term rentals for tourists — but some pretty terrible ones too that often masquerade as much nicer than they are, which the minister hopes to help solve with an inventory of licensed properties that can host tourists. The new regulations should also help increase tourism revenues and open new areas for investment, the minister added.

FROM THE DEBT MARKETS-

The central bank sold USD 980.5 mn worth of one-year, USD-denominated t-bills yesterday, with an average yield of 4.50% — down 0.65 percentage points from the last time the same length bills were auctioned off in June, according to data from the Central Bank of Egypt.

IN THE HOUSE-

The House is expected to vote on the cash-based subsidies bill today: The bill, which received preliminary approval on Sunday and was initially expected to be voted on yesterday, would establish a Takaful and Karama fund to provide cash-based payments to those under the poverty line, funded by the state budget, private contributions, foreign grants and loans, and investments.

MPs are also expected to give preliminary approval today to the draft CriminalProcedures law, now in its third week of discussions.

ICYMI: MPs yesterday gave the greenlight to a EUR 1 bn macro-financial assistancepackage from the EU, which marks the first phase of a EUR 5 bn set of concessional loans running through 2027 as part of a wider EUR 7.4 bn package from the EU announced in March. The funds will go towards alleviating external financing constraints, easing the government’s balance of payments and budget needs, and boosting FX reserves against the backdrop of regional geopolitical tensions.

THE BIG STORY ABROAD-

No single story is dominating the headlines across the global press this morning, with attention split between parliamentary turmoil in France, cross-border strikes amid a fragile ceasefire in Lebanon, another high-level corporate resignation, and Musk’s latest run-in with the courts all fighting for attention.

News outlets are forecasting the “all but certain” collapse of the French government led by Prime Minister Michel Barnier by the end of the week, after his move to try to push through an unpopular budget of EUR 60 bn in tax rises and budget cuts led to no-confidence motions being put forward from both the left and right. Barnier is warning of “serious financial turbulence” if both the budget and government falls, and it seems the markets have already got the memo. (Reuters | New York Times | Bloomberg | BBC | Guardian)

Our corner of the world is also continuing to attract the attention of the world’s press, with the rebel advance in Syria and cross border strikes in Lebanon despite the ceasefire pushing their way up the digital front pages. At least nine were killed yesterday in Israel’s heaviest strikes since the ceasefire began last week. (New York Times | Bloomberg)

WHILE IN BUSINESS NEWS– A Delaware judge has struck down Tesla CEO Elon Musk’s USD 56 bn pay package for the second time, rejecting Tesla’s attempt to reinstate it through a shareholder re-vote. (Reuters | New York Times | Financial Times | Wall Street Journal)

AND- Another CEO called it quits this week, with Intel’s Pat Gelsinger “abruptly” stepping down amid the chipmaker’s ongoing struggles to regain its footing in a fiercely competitive industry. Gelsinger, who took the helm in 2021, faced mounting pressure as Intel’s ambitious turnaround plans failed to gain traction, with its market value nearly halving this year while rivals like Nvidia surged ahead. (Financial Times | Bloomberg | Wall Street Journal | New York Times)

*** 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 infrastructural, institutional, and social enablers for establishing a global market for green hydrogen and its derivatives.

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