Good morning, friends. We have a brisk issue for you this Monday morning led by the latest on our oil output, which hit a four-decade low last quarter with production falling to 513k bbl/d. We also have updates on the country’s first digital bank — it plans to launch services to the public next year after receiving the final green light from the CBE in a move that would accelerate our transition toward a digital economy.

AND- The earnings season is in full swing, with more companies reporting their quarterly results.

There are just 50 days left until 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- Cairo is in for another sunny day today, with a high of 35°C and a low of 26°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which is looking at a high of 34°C and a low of 23°C.

WATCH THIS SPACE-

Credit default swaps (CDS) for Egypt’s five-year debt have fallen to their lowest level in almost four years, reaching 438 basis points, according to data seen by EnterpriseAM. Historically, the cost of insuring our sovereign debt has ranged between 257 and 325 basis points. However, it began to jump significantly, first in 2016 and then again in 2022 due to global geopolitical tensions.

“We are now just 1.3% shy of the the historical average of around 300 basis points, despite a number of challenges — including the closure of the Bab El Mandab strait, weak natural gas production, and a delayed fifth review [form the IMF],” Ahly Pharos Head of Research Hany Genena wrote on Facebook.

EGX WATCH-

Capital Med’s EGX debut is almost here: Badr City’s medical city Capital Med is planning to list a stake on the EGX before the end of 3Q 2025 raising as much as EGP 2 bn, sources told Al Borsa. Proceeds from the listing will help finance the second phase of the medical complex, which is estimated to cost some EGP 3-5 bn. Al Ahly Pharos will manage and promote the offering.

We knew this was coming: Capital Med said in February that it will make its EGX debut through a direct listing in 1H 2025, then move forward with a capital increase to fund the construction of the new phase of the medical city.

DATA POINT-

The Central Bank of Egypt (CBE) revised upward its projected external debt service payment plan for 2026 to USD 27.87 bn, marking an increase of around USD 1.9 bn from its previous estimate of 25.97 bn, according to CBE data seen by EnterpriseAM. Loan installments for the year were also revised up to around USD 22.72 bn, compared to 21.1 bn in a previous estimate. Meanwhile, total interest payments for the year now stand at USD 5.15 bn, up from a previous projection of USD 4.87 bn.

REMEMBER- The Finance Ministry's plans to issue up to USD 4 bn in international bonds over the next 12 months to help address its USD 11 bn external financing gap. The planned issuances could include EUR- and USD-denominated securities, sustainability bonds, sukuk, and CNY- or JPY-denominated instruments.

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the Electricity Ministry’s Industrial Energy Efficiency and Conservation Framework launched earlier this month to help factories reduce electricity consumption and operational costs. You can check out the story here.

THE BIG STORY ABROAD-

There’s no single story leading the conversation in the international business press this morning, but the global business community pushing ahead with “return to office” orders can be seen in a handful of stories on JPMorgan Chase preparing to move into headquarters in New York and London. The bank is “stepping up planning” for a new tower in London as it begins to outgrow its current headquarters as it expands in the UK, while across the pond in Manhattan its new USD 3 bn Midtown tower is expected to be ready for move-in in October. The Wall Street Journal and the Financial Times have more.

ALSO- Air Canada delayed restarting its operations, after striking flight attendants refused to obey a government order on a labor dispute between the flight attendants and the airline. The flight attendants — who went on strike over the weekend over pay issues — and the Canadian Union of Public Employees are pushing the airline to “negotiate a fair [agreement]” to settle the dispute. The airline intends to resume flying this evening. (Wall Street Journal | Reuters)

Meanwhile, the disjointed conversations over ending the Russia-Ukraine war are still getting plenty of ink across digital front pages, as Ukrainian President Volodymyr Zelensky is due to meet with Donald Trump in Washington later today. Zelensky — who insists his country will not cede more territory to Russia — will be accompanied by the NATO secretary general and several other European leaders. (Politico | BBC | Financial Times | Reuters)

*** 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 a new package of financial incentives for public school teachers to attract talent to the state education system and raise the quality of education.

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