Good morning, folks, and welcome to the end of the workweek. We’ve a packed issue with several economic and capital market updates and space is at a premium, so let’s get started straight away.

PSA-

WEATHER- It’s another overcast day in Cairo today, with a high of 20°C and a low of 12°C, according to our favorite weather app.

It’s another rainy day in Alexandria today, with temperatures coming in with a high of 19°C and a low of 11°C.

Once again it’s a foggy start to the day, so — you know the drill — take care on the roads.

And over the weekend, it looks like the rain will hold off for the next two days in the capital and for our friends on the Mediterranean, with daily highs around the 20°C mark.

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WATCH THIS SPACE-

Egypt expects to finalize its agreement with the EU to receive EUR 4 bn in funding in June, Planning and International Cooperation Minister told Asharq Business. Al Mashat added that external borrowing this year will be directed toward supporting the state budget, rather than projects.

Remember: The EUR 4 bn in funding will be the second and last tranche part of a EUR 5 bn wider macro-financial assistance package, EUR 1 bn of which was disbursed in December. The total EUR 5 bn in concessional loans stems from a wider EUR 7.4 bn package of loans, grants, and investments through 2027 that was agreed to under a joint strategic and comprehensive partnership inked between the two sides back in March.

HAPPENING TODAY-

#1- It’s the fifth and final day of Davos 2025: World leaders, banking sector titans, and global private sector players in Switzerland will wrap up their weeklong discussions today as the World Economic Forum Annual Meeting comes to a close.

What to look out for today: Representing Egypt’s private sector at Davos today is MNT-Halan CEO Mounir Nakhla, who will take part in a panel discussion on how new technologies are changing the way we trade and invest in the sector in a session entitled Hacking Trade and Investment at 12:30 Cairo local time. A little later in the day at 2pm Cairo local time, Planning and International Cooperation Minister Rania Al Mashat will speak in a panel discussion on Inflation: Past, Present and Future examining how economies can rethink inflation strategies amid global turbulence. You can tune into the livesteams or catch the recording afterwards on the forum’s website.

On the sidelines of the event, the cabinet economic team were kept busy with meetings with the private sector. Prime Minister Mostafa Madbouly, Finance Minister Ahmed Kouchouk, Planning and International Cooperation Minister Rania Al Mashat, and Investment Minister Hassan El Khatib met with Goldman Sachs ’ Head of Global Affairs Jared Cohen, who underscored strong investor interest in Egypt’s economy despite global headwinds.

The members of the cabinet economic team also met with HSBC Co-CEO for Asia and the Middle East Surendra Rosha in a meeting that highlighted Egypt’s role as a regional hub for expanding fintech solutions, cross-border trade, and financial inclusion. Meetings were also held with Majid Al Futtaim CEO Ahmed Galal, who said he would expand the company’s retail footprint in Egypt with new Carrefour and Supeco stores, Agility Vice Chair Tarek Sultan to discuss a USD 60 mn Ain Sokhna logistics hub, and Ariston Group CEO Paolo Merloni to discuss expanding the company’s Egypt investments.

High-level meetings were also held with other senior ranking officials from other nations and global institutions, with Madbouly meeting with Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman to explore ways to deepen bilateral relations and holding talks with Swedish Prime Minister Ulf Kristersson focused on Egypt’s role in maintaining the Gaza ceasefire and strengthening bilateral cooperation. EBRD President Odile Renaud-Basso hailed Egypt’s economic reforms and advancements in renewable energy during her meeting with Madbouly, highlighting increased private-sector financing. Meanwhile, Madbouly also met with World Economic Forum Founder Klaus Schwab to discuss potential collaboration and the prospect of Egypt hosting a future regional forum.

El Khatib also met French Trade Minister Laurent Saint-Martin to discuss boosting French investments in Egypt across key sectors, with Saint-Martin highlighting a planned trade mission in May to explore opportunities. Both sides vowed to fast-track a cooperation pact between Egypt’s GAFI and France’s Business France. Al-Khatib also engaged with Saudi Vice Minister for Mining Affairs Khalid Almudaifer to explore collaboration in mining.

#2- Calling all bookworms. This year’s Cairo International Book Fair opens its doors today and will remain open to the public until Wednesday, 5 February. The Egypt International Exhibition and Convention Center in New Cairo will host 1.2k publishers showcasing their latest publications and thousands of exhibitors for the event, with mn’s expecting to attend — last year’s visitor count reached near the 5 mn mark.

#3- Foreign Minister Badr Abdelatty is joining the British Egyptian Business Association for dinner today for a discussion centered around the challenges and opportunities of the Egypt-UK Association Agreement. The event will be held at the Nile Ritz Carlton

IN THE HOUSE-

The House is set to debate a series of tax-related draft laws starting Sunday, including a simplified tax system for SMEs that would see businesses with an annual turnover of up to EGP 15 mn will pay a simple flat tax, unifying and improving tax services, and clearing the backlog of tax disputes.

Déjà vu? We first heard about the proposals in October when Finance Minister Ahmed Kouchuk announced a long list of tax facilities during a presser. We did a full rundown at the time you can check out here.

THE BIG STORY ABROAD-

The international business press is broadly focused on two big stories this morning: More decisions and tariff threats from US President Donald Trump, and a new fast-growing wildfire breaking out in Los Angeles.

From TrumpLand: A decision from the newly-minted president earlier this week to place all federal diversity, equity, and inclusion (DEI) program employees on paid administration leave will see these employees eventually laid off entirely and their programs shut down. The decision is part of Trump’s push to cut the country’s “bloated bureaucracy” and undo equality programs and policies that he says lead to unfit hiring decisions. (Politico | New York Times | Reuters)

Trump also threatened to slap fresh sanctions and tariffs on Russia if it fails to end its war in Ukraine, saying in a Truth Social post that Russian President Vladimir Putin should end the war to avoid his country’s economy “getting worse.” (Financial Times | Reuters | Wall Street Journal)

Separately, a new wildfire broke out in Los Angeles yesterday, forcing thousands of people to evacuate as the fires started quickly spreading. The Hughes fire broke out north of LA, while Southern California continues to be under “extreme fire risk due to strong, dry winds.” (Reuters | Wall Street Journal)

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