Good morning, all. We kick off the week with a packed issue, led by Bonyan kicking off its IPO, the House approving amendments that scrap the Old Rent Law, and the IMF combining the fifth and sixth reviews of our USD 8 bn program.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 36°C and a low of 25°C, according to our favorite weather app.

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

** DID YOU KNOW that we 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-

#1- The cabinet will discuss electricity pricing scenarios this week amid budgetary pressures, as the country’s increasing reliance on costly LNG imports push up the county’s energy import bill, a government source told EnterpriseAM. The options include a progressive price hike on households of up to 20% for the highest consumption brackets and postponing any hikes to September to shield citizens from inflationary pressures

REMEMBER- The government scrapped five-year-old electricity price breaks for industry players on extra-high, high, and medium voltages last week on the back of the very same budgetary concerns.

#2- Cement companies have a one-month deadline to restart production, under a directive from Deputy Prime Minister for Industrial Development Kamel El Wazir, according to a cabinet statement at the end of last week. The Industry Ministry and other state entities will begin a nationwide inspection of cement factories to ensure that factories are able and committed to restarting production. Meeting local demand will be the sector’s first priority, with any surplus to be earmarked for export, said El Wazir.

REMEMBER-Energy-intensive industries like cement are often the first to see their energy supplies cut when the country faces an energy squeeze. Most recently, the war between Israel and Iran last month pushed the Oil Ministry to cut off around 900 mcf/d of gas to energy-intensive industries and to suspend diesel and mazut deliveries to food and cement factories for 14 days to divert more fuel to power stations, sources told EnterpriseAM at the time.

PROJECT UPDATE-

Ras Ghareb wind farm is now fully online: The Red Sea Wind Energy consortium has fully commissioned its 650 MW wind farm in Ras Ghareb, with the final 150 MW phase entering commercial operations four months ahead of schedule, according to a press release. This follows the early delivery of the first two phases (306 MW in January and 194 MW in April). All units are now connected to the national grid.

BACKGROUND- The project was developed under a 25-year build-own-operate contract by a consortium including France’s Engie (35%), Orascom Construction (25%), Toyota Tsusho Corporation (20%), and Eurus Energy (20%). Orascom handled the full EPC scope, while Goldwind International supplied, installed, and commissioned the project’s 104 wind turbines.

And a new project brewing? The consortium has begun evaluation and early development work for a planned 900 MW wind farm on a nearby land plot adjacent to the current project site, according to the press release.

HAPPENING TODAY-

#1- Fingers crossed for the non-oil private sector moving back into the green. S&P Global will release its PMI report measuring non-oil private sector activity for June later this morning. There’s reason to be hopeful, with the S&P’s last report showing the country’s headline figure for May rising to just 0.5 percentage points shy of the 50.0 mark threshold separating contraction from growth.

#2- The two-day annual Brics Summit is kicking off today in Brazil’s Rio de Janeiro, marking the first time the bloc of nations has met since US President Donald Trump returned to the White House. Some of the Trump administration’s most punitive tariffs have been focused on Brics members and Trump even threatened tariffs of 100% or 150% if the bloc attempts to launch a common currency or undermine the USD’s status as the global reserve currency.

Egyptian representation: Prime Minister Moustafa Madbouly flew to Brazil yesterday to take part in the summit, according to a cabinet statement.

Kouchouk pushes for Brics regional links: Finance Minister Ahmed Kouchouk — who is also in Brazil for the sumit — met with his Brazilian counterpart, Fernando Haddad to discuss boosting economic and investment cooperation between Brics members, as well as facilitating trade, according to a statement. Separately, the Kouchouk also met with Maxim Oreshkin, Russia’s special representative of the President of Russia for financial and economic cooperation with Brics, to discuss joint financing for infrastructure and energy projects.

IN THE HOUSE-

The House is in session: MPs will convene today through Tuesday to discuss and vote on a raft of bills — a draft law authorizing the Oil Minister to contract the Egyptian Mineral Resources Authority and Centamin to exploit gold and associated minerals in the flagship Sukari area, amendments to the 2014 law regulating the affairs of non-special-statute medical professionals working in Health Ministry-affiliated entities, and a presidential decree regarding the funding agreement with Spain for the feasibility study on extending Cairo Metro Line 1.

THE BIG STORY ABROAD-

Trump’s Gaza ceasefire push sees mixed responses: US President Donald Trump said on Friday there “could be a Gaza deal next week” after Hamas responded in a “positive spirit” to his administration’s proposal for a 60-day ceasefire. The plan, which Trump labelled a “final proposal,” sees Hamas releasing half of the roughly 50 hostages it still holds and entering talks to end the war. Trump told reporters that he remains “very optimistic” but had yet to be briefed on the specifics.

Israel says Hamas changes are ‘unacceptable’ but will resume talks: While Hamas said it was ready to immediately enter a new round of negotiations on the US-brokered ceasefire, Israeli Prime Minister Benjamin Netanyahu’s office said the changes Hamas requested were “unacceptable.” Still, Israel will send a delegation to Qatar today to continue negotiations, aiming to secure the hostages’ release. Netanyahu is also expected to meet Trump in Washington on Monday, where the ceasefire agreement will top the agenda.

Bloodshed continues as talks loom: Over the weekend, Israeli airstrikes killed at least 138 Palestinians, including 15 people in an overnight attack on a tent encampment near Khan Younis, according to local health officials. (Reuters | Bloomberg | The Guardian | FT)

AND- Musk launches ‘America Party:’ Former Trump adviser Elon Musk announced the formation of the America Party on Saturday, saying it will “give you back your freedom” after an X poll showed strong support for a new US political party. (Reuters | The Guardian | Axios | New York Times)

Tags: