Good morning, folks, and welcome to the last week of January. It’s already been a pretty busy week for local business news, but it can always get busier — so let's jump in and see what the week brings.

PSA-

WEATHER- It’s another overcast day in Cairo today, with a high of 20°C, a low of 11°C, and a chance of light rain in the evening, according to our favorite weather app.

It’s likely to be a whole lot wetter in Alexandria, with a high of 18°C, a low of 11°C, along with moderate and sometimes thundery rain. It’s also set to be a foggy morning along the country’s northern shores, so be careful on the roads.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

Egypt could sign agreements next month to liquefy Cypriot gas in local facilities: French energy company TotalEnergies and Italian energy giant Eni and the Madbouly government will next month ink agreements to transport Cypriot gas to Egypt to be liquefied and exported, the AP reports, citing unnamed officials. Cypriot President Nikos Christodoulides will visit Cairo on 17 February to oversee the signing of the agreements, he said in a post on X.

Where is the gas going? Gas coming from Cyprus’ Cronos deposit will be exported to markets including Europe, while the future of gas coming from the Aphrodite field is still being discussed — gas from the field could be used to meet domestic demand or exported.

Remember: Back in September, the Oil Ministry reported that TotalEnergies wanted to supply gas from its fields in Cyprus to Egypt for liquefaction and re-export as LNG or to be fed directly into the grid. This followed news that Egypt and Cyprus were considering establishing an energy corridor that would see Cyprus send natural gas to Egypt to be liquified and exported to global markets.

SIGN OF THE TIMES-

Manufacturing, tourism, and CIT sectors were among the biggest contributors in GDP growth in 1Q 2024-2025, which recorded about 3.5%, up from 2.4% in 4Q FY 2023-2024, Finance Minister Ahmed Kouchouk said during a panel discussion about growth in the MENA region at the World Economic Forum in Davos last week, according to a ministry statement. Our growth was aided by Egypt’s financial policies, which have helped “enhance the flexibility, stability, growth, and competitiveness of the Egyptian economy in the face of regional and global challenges,” he added.

Investments from Egypt’s private sector made up more than 63% of the total state investments during the first quarter, Kouchouk noted. Fostering an environment that empowers private sector-led growth was among the key requirements of Egypt’s USD 8 bn program with the International Monetary Fund.

Global players have begun to take notice of changes to our policymaking: Goldman Sachs wrote following its investor trip to Egypt at the end of last week that the new Madbouly government has injected “a new sense of urgency” to Egypt’s policymaking, with a renewed focus on addressing the economy’s low export base by encouraging private sector investment.

IN THE HOUSE-

MPs are reconvening today after a two-week break to discuss and vote on three draft tax-related laws and the Criminal Procedures Law.

A simplified tax system for SMEs: Lawmakers will discuss and vote on a draft bill proposing that businesses with an annual turnover of up to EGP 15 mn will pay a simple flat tax — that starts at an annual EGP 1k and goes up to EGP 225k depending on how much they are making — that covers income tax, value-added tax, duty tax, and others.

Speeding up tax return processing: MPs will also discuss a drafted bill to expedite the Egyptian Tax Authority’s settling of tax disputes ahead of a move to a digital system.

A second chance for those with late payments: Taxpayers who failed to submit their tax reports between 2020 and 2023 will be allowed to file them within a specific time frame without facing any penalties. Leniency for erroneous returns filed between 2020 and 2023, which can be corrected and refiled without penalty.

MPs will also continue discussions on the 540-article Criminal Procedures Law, voting today on articles 172 to 209.

AND- The House will review three foreign agreements including:

  • A pact with Saudi Arabia to promote and protect investments, which could bring in upwards of USD 10 bn in bilateral investments over the next three years;
  • A treaty with the UAE on the exchange of criminals;
  • An agreement with the African Development Bank to adopt the SOFR interest rate system in place of LIBOR.

CIRCLE YOUR CALENDAR-

#1- Egypt plans to host a US economic forum in May, Foreign Minister Badr Abdelatty said on Thursday, according to Amwal Al Ghad. The forum will see both sides discuss potential investments in sectors including renewable energy, technology, infrastructure, and education.

#2- A French trade mission will visit Egypt in May to explore potential investments in the local market, French Foreign Trade Minister Laurent Saint-Martin told Investment Minister Hassan El Khatib during a meeting on the sidelines of the World Economic Forum, according to a statement.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

With little to no business news in sight, Trump and Gaza are once again setting the agenda for the day. After less than a week since a ceasefire came into effect in the embattled strip and the presidential inauguration, the global commentariat are still trying to figure out whether the fragile ceasefire will hold after its first six week phase and what Trump’s presidency will look like over the next four years once the dust settles from his first few chaotic days.

Over in the states, Trump’s lightning offensive to reshape Washington has seen him pack the Environmental Protection Agency with petrochemical and chemical industry lobbyists, halting flights of Afghan refugees approved for US resettlement, and holding a fiery phone call with the Danish prime minister to demand that America buy Greenland. (Wall Street Journal | Reuters | New York Times)

Trump also put a halt to all foreign aid — bar Egypt and Israel — in a move that will see a 90-day pause that will see assistance from the world’s largest foreign aid donor cut off completely. Newly appointed State Secretary Marco Rubio will now reportedly vet all US foreign aid against the new administration’s foreign policy before turning back on to the tap, according to a State Department cable. The pause’s only exceptions were military aid to Egypt and Israel, in addition to emergency food assistance as mandated by the Gaza ceasefire agreement reached earlier this month. (Reuters | New York Times)

Also in our part of the world, the second release of Israeli and Palestinian hostages under the first phase of the ceasefire has been ranking high on the world’s digital front pages. Four female members of the Israeli Defence Forces were released by Hamas in exchange for 200 Palestinian hostages held by Israel to celebrating crowds awaiting their return. (Reuters | Associated Press | Wall Street Journal | Bloomberg | New York Times)

Tags: