Good afternoon, wonderful people, and congrats on making it through another week. We’re winding down for the weekend, but the news shows no signs of letting up, so let’s dive in.

THE BIG STORY TODAY

#1- Madbouly’s government is set to finalize the executive regulations for amendments to the tax law in the coming days, after finalizing the fate of the capital gains tax on EGX transactions, government sources tell EnterpriseAM. The cabinet is set to meet today with officials from the EGX, the Finance Ministry, and the Misr Clearing and Depository Company to discuss alternatives to the capital gains tax — particularly a stamp tax on EGX transactions.

Refresher- A government source last week told EnterpriseAM that the long-awaited and repeatedly delayed capital gains tax on EGX transactions may never come, with officials now considering reinstating a 0.15% stamp tax on all EGX transactions as a simpler alternative to the capital gains tax.

New details on customs facilitations: Deputy Finance Minister for Taxes Sherif Al Kilani noted that soon-to-be-announced customs facilitations would allow companies to pay customs on raw materials in installments for the first time, adding that once the facilitations are complete, the government will turn its focus to its long-awaited tax policy document.

#2- Catalyst Partners’ capital hike via private placement is set to kick off Sunday: An additional 22.5 mn shares of of impact investor Catalyst Partners’ SPAC, Catalyst Partners Middle East (CPME), will begin trading on the EGX on Sunday, 16 February, with shares priced at EGP 10 a pop, according to an EGX bulletin. The private placement will see CPME bump its issued and paid-up capital to EGP 235 mn, up from EGP 10 mn. The offering is only open to qualified institutional investors.

ICYMI- CPME became the first SPAC to ever be listed on the EGX in November, after it listed 1 mn shares with a par value of EGP 10 per share— bringing its total issued capital to EGP 10 mn.

THE BIG STORY ABROAD

Today’s int’l headlines are squarely focused on US president Donald Trump’s latest statements on the Russia-Ukraine war, with the administration ruffling feathers across the Atlantic with the suggestion that the US will not back a return to Ukraine’s pre-2014 borders or Nato membership for Kiev in upcoming peace talks. The US’ stance has unsettled European officials ahead of the Munich Security Conference tomorrow, with many expecting Trump to tell them they must bear the cost for Ukrainian reconstruction and deploy troops there, all to maintain a peace deal in which they will have little say.

Meanwhile, former US officials are scratching their heads at Trump’s casual ceding of leverage ahead of the negotiations. “Why is the Trump administration giving Putin gifts — Ukrainian land and no Nato membership for Ukraine — before negotiations even begin?” asked former US ambassador to Russia under the Obama administration Michael McFaul in a post on X. “I’ve negotiated with the Russians. You never give up anything to them for free,” the former ambassador added. (Reuters | Financial Times)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • Fresh details on the Public Government Budget for FY 2025-26: The Public Government Budget is set to rise to somewhere in the vicinity of EGP 8 tn in the fiscal year 2025-26, up from EGP 6.6 tn in the current fiscal year, as the Madbouly government looks to incorporate additional state economic bodies’ budgets into the budget
  • Al Ahly Sabbour to tap advisor for planned IPO by June: Local real estate developer Al Ahly Sabbour plans to select an advisor for its planned IPO by June.
  • Qalaa Holdings’ revenues rose 75% y-o-y in 3Q 2024 to EGP 37.6 bn, driven by the strong performance of subsidiary Egyptian Refining Company (ERC).

☀️ TOMORROW’S WEATHER- Temperatures in the capital are on a slight rise, with tomorrow’s mercury set to reach 20°C in the morning before dropping to a chillier low of 9°C in the evening, according to our favorite weather app.

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