Good morning, all. We end this shorter-than-usual work week with a brisk issue, led by the latest on the fifth review of our IMF program and the long-awaited amendments to the Old Rent Law.

** A QUICK PROGRAMING NOTE- EnterpriseAM Egypt will be joining the rest of you in taking tomorrow off instead of Monday — which marked the 12th anniversary of the 30 June. Revolution. We’ll be back in your inboxes bright and early on Sunday with the most important business updates from over the long weekend.

PSA-

WEATHER- It’s another hot day in Cairo, with a high of 36°C and a low of 26°C, according to our favorite weather app. The Egyptian Meteorological Authority is warning of chances of light to moderate rain today in Suez and Sinai. Strong downward winds are also expected, stirring up sand and dust in some areas.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°C.

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WATCH THIS SPACE-

#1- Osoco drillship, Adam Marine 12, capsized in the Gulf of Suez late last night near Gabal El Zeit, some 300 km south of the Suez Canal. Of those who were onboard, at least four were confirmed dead, six are missing, and the remaining 21 have been rescued, according to Reuters’ sources. The Oil and Health Ministries are expected to issue a joint statement in the coming hours, Oil Ministry spokesperson Moataz Atef told Extra News.

#2- Fifth review postponed? The IMF is considering merging its fifth and sixth reviews for our USD 8 bn loan program due to slow progress on structural reforms, potentially delaying the next USD 1.2 bn disbursement by up to six months, Reuters reports, citing three sources it says are familiar with discussions.

Why the delay? While financial reforms are progressing “relatively smoothly,” Egypt has struggled to meet structural benchmarks under the Extended Fund Facility, namely disinvestment targets. Egypt didn’t reach half of its structural targets in the last two reviews, according to sources. The IMF approved its fourth review in March, unlocking a USD 1.2 bn tranche. However, the Fund has yet to publish the fourth review’s staff report, as authorities requested a delay to finalize measures to widen the tax base.

What’s next? The IMF team which visited Cairo in May for the fifth review “has yet to signal its approval.” If the next two reviews are merged, the next board meeting could be pushed to December at the earliest, effectively stalling the program for the rest of the summer, according to the sources.

THE BIG STORY ABROAD-

Most foreign outlets are leading with US President Donald Trump’s “big, beautiful bill” this morning, which narrowly passed the Senate following an all-nighter vote-a-rama. The sweeping legislation — which introduces a trove of tax cuts and reductions to spending on social safety net programs, and boosts immigration enforcement spending — will now head to the House for final approval ahead of Trump’s 4 July deadline.

It’s not going to be easy: Division within the Republican party over some aspects of the bill could make it difficult for the bill to pass, with some hardliners demanding steeper spending cuts, other affected states objecting to changes to Medicaid financing mechanisms, and still some concerned about the USD 5 tn increase in the debt ceiling that the bill is expected bring. (Reuters | Bloomberg | Guardian | Wall Street Journal | Financial Times | New York Times)

ALSO- Trump said Israel has agreed to a proposal for a 60-day ceasefire in Gaza which will now be delivered by mediators in Qatar and Egypt to Hamas. The ceasefire will be used as a period during which “we will work with all parties to end the war,” Trump said, while urging Hamas to accept the agreement, warning that “things will only get worse” if it does not. This comes ahead of Israeli Prime Minister Benjamin Netanyahu’s upcoming visit to Washington on Monday, and following an escalation of violence that has killed hundreds in the past day alone. (Bloomberg | Reuters | Guardian | CNBC)

AND- Another Trump deadline is looming: The 90-day pause on reciprocal tariffs is set to end on 9 July, and Trump has confirmed it will resume with the tariffs with countries with which it has yet to reach trade agreements, including Japan, which is set to see a 24% tariff on all of its imports. Trump has threatened to hike the levies for Japan further as trade talks falter. (FT)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at how real estate prices will react to the construction tax amendment.

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