Good morning, wonderful people. We lead today’s issue with some much-welcomed banking news, signaling that the long-persistent FX crunch is a thing of the past — banks announced that they are slashing fees and loosening restrictions on foreign currency used by travelers and credit card users. The decision is putting the CBE in the spotlight days before Governor Hassan Abdalla’s term is up.

AND- Old rent is back under our spotlight, with sources telling us that the Finance Ministry is looking to raise the tax threshold for rented units to shield old rent landlords from tax increases.

Mark your calendar for the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterprisemea.com to discuss how you can sponsor.

PSA-

WEATHER- The heat and humidity aren’t going anywhere for the next couple of days, with Cairo in for a high of 41°C and a low of 29°C, according to our favorite weather app.

It’s a few degrees cooler in Alexandria, which is looking at a high of 36°C and a low of 26°C.

IN MEMORIAM-

Former Supply Minister Ali El Moselhy has passed away at the age of 76. He served as Social Solidarity Minister from 2005 to 2011 and as Supply and Internal Trade Minister from 2017 until 2024, overseeing key programs including the subsidized sugar and ration card systems.

WATCH THIS SPACE-

#1- A fresh green bond issuance could be upon us: Egypt plans to issue a new tranche of sovereign green bonds, a senior government source told EnterpriseAM yesterday. The Finance Ministry, in consultation with the offering advisors, is looking into either replacing the bond maturing in September or reopening the current bond for another five years.

REMEMBER- Back in September 2020, Egypt made history by issuing its first five-yearsovereign green bond, becoming the first country in the MENA region to do so. The issuance was oversubscribed more than sevenfold amid strong investor appetite.

Where will the proceeds go? The green bonds will likely finance some social and environmental projects, according to our source.

#2- The EGX is looking to tap Egyptian expats to invest in sector-specific subfunds, EGX Chairman Ahmed El Sheikh told Al Borsa. Under the proposal — developed in coordination with expats — a single holding fund will hold the subfunds and certificates, which can be listed and traded on the EGX.

The government is increasingly looking to Egyptian expats for sources of funding — even following the end of the FX crunch. Work is underway to launch new initiatives — similar to the expat car-for-FX scheme — to increase remittances sent in from Egyptians abroad. Remittances have already been up for 15 consecutive months since the float of the EGP did away with the parallel market that drove remittances to informal channels. The government is also considering issuing fractional bonds to individuals, a portion of which will be allocated for Egyptian expats, a government source has previously told EnterpriseAM.

ALSO FROM THE BOURSE- The EGX has received three requests to launch investment funds tracking the newly-launched EGX35-LV index, Al Borsa reports, citing El Sheikh. The head of the EGX did not name the three asset managers that filed the requests, but Mubasher Capital Vice Chairman Ehab Rashad had previously told us that an EGX35-LV-tracking fund could be part of the company’s plan to launch ten new funds.

#3- The Energos Force floating storage and regasification unit (FSRU) has started processing LNG, just days after arriving at Jordan’s Aqaba Port, an oil industry source told EnterpriseAM. The vessel will help deliver some 750 mcf/d of gas that will be shared between Jordan and Egypt through the Arab Gas Pipeline. Egypt’s share, which it will start receiving this week, is 300 mcf/d, Asharq Business reports, citing an unnamed government source.

And a fifth FSRU is on its way? The Oil Ministry is in talks to lease a new regasification unit to help process booked LNG shipments in the coming months, our source told us. Egypt now has four FSRUs deployed — the Energos Eskimo, Energos Power, Energos Winter, and the soon-to-be-replaced Hoegh Galleon — with a combined capacity of 2.7 bcf/d.

SMART POLICY-

Automotive feeding industries that are currently not represented in local manufacturing will be included in the list of 28 sectors eligible for investment support, according to an Industry Ministry statement. Industry Minister Kamel El Wazir made the directive during a meeting with auto parts manufacturers to discuss localization and supply chain integration. The Industry Ministry will create a comprehensive database mapping out the needs, challenges, and prospects in the sector.

Mark your calendars for November: The updated incentives list and the database will be showcased at an industry and transport expo taking place in November 2025. The event is designed to connect manufacturers with suppliers, cut imports, and expand local production in strategic sectors, including automotive components.

REMEMBER- The Madbouly government has been working to localize auto feeder industries as part of wider efforts to boost local production and assembly.

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THE BIG STORY ABROAD-

There’s no single story capturing the attention of the international business press, but there are a handful of business stories to sink your teeth into.

US stocks hit a record high after inflation data fueled market expectations that the Federal Reserve will move ahead with interest rate cuts when it meets again next month. US inflation remained steady at 2.7% in July, according to the Bureau of Labor Statistics, coming in just shy of economists’ expectations of 2.8%. The inflation data pushed futures market to price in a 94% chance that the Fed will cut rates by 25 bps in September, rising nine percentage points compared to before the inflation data was released. The S&P 500 closed up 1.1%, while the Nasdaq Composite was up 1.4% at the close of trading. (Bloomberg | Financial Times)

AI startup Perplexity made an unsolicited USD 34.5 bn offer to acquire Google’s Chrome browser, in a bid that would see the startup pay more than its own valuation. The offer comes ahead of an expected antitrust ruling later this month that could require Google to sell its web browser. Perplexity spokespeople have said that the company has secured financial backing from “several investors, including large venture capital funds” to fully finance the transaction if it were to go through. The story is getting play in the Wall Street Journal, Reuters, and Bloomberg.

*** 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 what’s in the pipeline for the local construction market.

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