Good morning, all. We kick off this very hot day with a busy issue led by trade news as we break down what went down during day one of the US-Egypt Policy Leaders Forum, the latest updates regarding our summer gas imports, and the government gearing up to issue fresh sukuk.

HAPPENING TODAY-

It’s day two of the US-Egypt Policy Leaders Forum at the Four Seasons Nile Plaza. The forum brings together big names from the cabinet — Prime Minister Moustafa Madbouly, nine ministers, and the head of SCZone — 79 executives representing 51 major US companies, and officials from the IFC, IMF, and World Bank.

How did day one play out? We have coverage of day one of the forum in the news well, below.

PSA-

WEATHER- It’s day three of the heatwave in Cairo — the capital is in for a high of 40°C and a low of 21°C, according to our favorite weather app.

It’s a lot cooler in Alexandria, with a high of 26°C and a low of 18°C.

** 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.

ICYMI- Missed this week’s Inside Industry? We sat down with Hayat Egypt General Manager Senol Keserlioglu for our Manufacturer of the Month column. You can check out the interview here.

WATCH THIS SPACE-

#1- Egypt and Germany agreed to “support efforts” to establish a German Industrial Zone within the Suez Canal Economic Zone (SCZone) following a meeting between Investment Minister Hassan El Khatib and German Economy Minister Katherina Reiche during the Arab-German Economic Forum, according to a ministry statement.

We’re still in the dark about what this proposed zone could look like, with the Egyptian side yet to elaborate on the proposal and the German side not having publicly acknowledged it yet. A source familiar with the discussions confirmed to EnterpriseAM that the project was proposed, but emphasised that no concrete commitments were made.

There’s a good chance that the proposal will remain just that — a proposal. While national industrial zones make sense for more state-led economies like China and Russia, the pull is not as strong for the more globalized and liberal market-based economy of Germany and its companies, our source told us. But what does make sense for German companies looking to set up shop in Egypt are industrial clusters, where companies are put together based not on national origin, but on complementary activities that can share infrastructure and feed each other inputs, we were told.

#2- The government has begun transferring land for the mega Ras El Hekma development on the North Coast to its Emirati partners, cabinet spokesperson Mohamed El Homsani said, according to Al Arabiya. Abu Dhabi wealth fund ADQ, through the project’s master developer Modon Holding, has broken ground on several construction projects, including a large hotel and other commercial and tourism facilities, El Homsani said.

The project’s first phase is proceeding as planned, with the remaining plots of land set to be transferred soon according to the project’s timetable, the spokesperson said.

#3- Vodafone will roll out the long-awaited 5G service in the “coming weeks,” CEO Mohamed Abdullah told Cairo Weekend’s Zeina Soufan (watch, runtime; 14:51).

ICYMI- Vodafone Egypt, Orange Egypt, e& Egypt, and Telecom Egypt secured the USD 150 mn 5G service license from the National Telecom Regulatory Authority last year.

CORRECTION- We slipped up in our 15 May issue of EnterpriseAM Egypt by mistakenly saying that news reports on the proposed Russian Industrial Zone date back until only 2019. One of our valued readers pointed out that the final agreement was instead inked in May 2018 after years of negotiation. We have amended the story on our website. H/t Mr. Tarek Kabil.

THE BIG STORY ABROAD-

Russia rained drones and missiles on Ukrainian cities overnight, in a massive air campaign that is deemed the largest air attack of the three-year war. At least 12 people were killed and 60 were wounded.

US President Trump told reporters he would “absolutely” consider additional sanctionson Russia, a move he declined to take weeks ago after EU leaders called on him to pressure President Putin into accepting a preliminary 30-day ceasefire.

SPEAKING OF THE EU- Trump said yesterdayhe’ll delay the 50% tariff on the EU until 9 July to give room for negotiations, after receiving a call from European Commission President Ursula von der Leyen requesting an extension from 1 June. The President said earlier he will opt to impose the high tariffs because “discussions with [the EU] are going nowhere.”

OVER IN GAZA- Israel’s military said it aims to capture 75% of the strip in two months, confining the population into the remaining area. The plan is part of an expanded Israeli offensive that saw a near-complete blockade on food and medicine entering the enclave, with UN chief António Guterres saying Israel has only authorized “a teaspoon of aid” to enter Gaza, “when a flood of assistance is required.”

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at the Education Ministry’s plans to replace publisher Longman with Cambridge University Press and Assessments as its new curricula partner in a long-term push to align the country’s school system with international standards and better prepare students for foreign universities.

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