Good morning, friends. We have made it to the end of one very busy week packed with diplomacy developments. In today’s issue we have a little sneak peek into next fiscal year’s Public Government Budget, fresh details on Al Ahly Sabbour’s long-awaited IPO, Qalaa Holdings’ 3Q 2024 earnings, and the ins and outs of how Egypt’s M&A market fared in 2024.

BUT FIRST- President Abdel Fattah El Sisi has reportedly opted to stay away from the White House as long as the Trump Administration keeps pushing the displacement agenda, Reuters wrote. US President Donald Trump had invited El Sisi to visit and it was reported that Foreign Minister Badr Abdelatty’s visit to the US capital earlier this week was to set the stage for El Sisi’s visit, Trump continuing to push Egypt and Jordan to take in displaced Gazans appears to have changed the plan.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 18°C and a low of 10°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 18°C and a low of 11°C.

And over the weekend, expect to see a high of 21°C and a low of 10°C in the capital.

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WATCH THIS SPACE-

#1- Phase two of the new capital’s development will be offered to a French investment consortium in March, Administrative Capital for Urban Development (ACUD) Chairman Khaled Abbas told a meeting of the Egyptian Businessmen’s Association yesterday, according to Asharq Business.

Better late than never: Abbas said last March that ACUD planned to start construction on the second phase of the new administrative capital early this year at a cost of EGP 240 bn (c. USD 4.8 bn at the time). ACUD had previously penciled in a 2Q 2024 or 3Q start at the latest.

We haven’t heard much about the project’s second phase since last March, when we got word that three industrial developers had submitted offers for 1 mn sqm plots included in the project’s second phase. ACUD also that month signed a shareholders’ agreement with French IT giant Atos to set up a JV to manage and operate smart tech services in the new capital.

ALSO- The new capital’s spanking new airport will officially open its door in April, Abbas said.

#2- Local fintech giant Fawry will give its clients the chance to invest in gold and EGX-traded stocks, CEO Ashraf Sabry said during a presser attended by EnterpriseAM. Fawry will serve as a platform for some of its partners with gold and stock market funds.

#3- Oracle to roll out AI and tech training program across the region: US technology giant Oracle is set to train 350k people in AI and cloud technologies in Egypt and five other Middle Eastern countries through its Oracle MyLearn platform, it said in a statement. The multi-year program — which will be delivered in partnership with the public sector — will offer training in several technologies, including Oracle Cloud Infrastructure, AI services, DevOps, and Oracle APEX.

The bigger picture: The initiative will also target the UAE, Saudi Arabia, Qatar, Morocco, and Jordan as the company looks to meet growing regional demand for Oracle Cloud and support the Middle East’s AI economy, which is expected to reach USD 320 bn by 2030, according to the statement.

This is good news for the government’s digital exports push: The government wants tosee digital exports bring in USD 9 bn into the economy annually as of 2026 and then up to USD 13 bn by 2030. We’re yet to hear the most recent figures for 2024, but Egypt’s digital exports brought in USD 6.2 bn in 2023, up 26.5% y-o-y from 2022. The figure includes outsourcing exports — think call centers and human resource centers — which accounted for over half of the digital exports in 2023, standing at USD 3.7 bn, up 54% y-o-y.

#4- Capmas’ Egyptian Economic Consensus will be out before the end of the fiscal year, according to a statement from the Planning and International Cooperation Ministry. The release will mark the first economic census released by the state statistics agency since 2020.

The census will have some notable additions this time round, with the report including data on the green economy, industrial zones, outsourcing, and e-commerce for the first time.

HAPPENING TODAY-

The Businesswomen of Egypt 21 Association will kick off its annual conference today, with the five-day event set to take place across venues in Cairo, Luxor, and Aswan, according to a statement. This year’s conference is being held under the theme of Megatrends Shaping Women’s Economic Potential and will host delegations from across the world.

CIRCLE YOUR CALENDAR-

Exploring business potential between Egypt and Switzerland: The Egyptian-Swiss Business Circle and Kickstart Innovation are hosting a series of online events on 20 February under the theme Innovate Together: Business Opportunities Between Egypt and Switzerland. The events aims to strengthen business ties between the two nations, bringing together startups, investors, and public and private players.

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-

The war in Ukraine is in the spotlight this morning, as an unexpected rapprochement between the US and Russia opens the door for peace talks.

Russo-Ukrainian talks to kick off: US President Trump agreed — in his first publicly announced phone call with Russian President Vladimir Putin — to start negotiations aimed at ending the war “immediately” and reaching a long-term settlement. The two presidents are set to meet later in Riyadh to iron out the details, Trump added.

Blindsiding allies: The announcement came hours after US Defense Secretary Pete Hagseth told the Nato that Ukraine’s aims to join the alliance are “unrealistic,” conceding that the country will probably have to accept losing territory.

Ever the businessman: The US also presented Ukraine’s president Volodymyr Zelenskiy with an economic partnership agreement, during a visit by Treasury Secretary Scott Bessent to Kyiv. Zelenskiy said the talks will include “Ukraine’s potential in natural resources,” a particular interest for Trump, who said earlier he would like to tap into Kyiv’s critical minerals as well as open its markets to US energy exports in exchange for military and economic support. (NY Times | Bloomberg | FT | Reuters | CNN | Semafor)

Tariffs push not slowing down: Trump could sign his reciprocal tariffs today, ahead of India’s Prime Minister Nerandra Modi landing in Washington, where the two are scheduled to discuss trade concessions to spare India potential tariffs. (CNBC)

CLOSE TO HOME- Israel is reportedly pushing to retain a number of positions in Lebanon after the US shot down a request to keep most troops in the country in violation of the ceasefire agreement with Hezbollah. (Bloomberg)

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