Good morning, all. In classic August fashion, it’s a pretty quiet morning here in Egypt with very little making headlines at home. In today’s issue we dive into a recent BMI report all about the country’s economic performance for the decade to come, upcoming changes to how solidarity contributions are calculated, and news of fresh hospitality projects.

There are just 43 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- It’s another sunny day in Cairo, with a high of 35°C and a low of 25°C, according to our favorite weather app.

It’s almost as hot in Alexandria, with a high of 32°C and a low of 23°C.

WATCH THIS SPACE-

#1- A helping hand for brokers: Misr for Central Clearing, Depository, and Registry (MCDR) is weighing a plan to spin off its real estate portfolio into a new entity, anonymous sources told Al Mal. The proposed vehicle, tentatively called Misr for Clearing Real Estate Asset Management, could carry a valuation north of EGP 5 bn. The move would allow brokerages, which together own 45% of MCDR, to sell part of their holdings in the new arm, unlocking liquidity to help meet the Financial Regulatory Authority’s (FRA) stricter capital adequacy rules.

What rules? In December 2023, the regulator tripled the minimum capital requirement for brokers to EGP 15 mn. MCDR’s plan is seen as a workaround, as spinning off assets only requires FRA approval, while amending MCDR’s bylaws would be more complex. Brokerages would still be required to keep a portion of their holdings as “guarantee shares” in the parent clearing house.

#2- Global FLNG capacity is set to quadruple by 2035: Floating liquefied natural gas (FLNG) capacity will reach some 42 mn tons per annum (mtpa) by 2030 and 55 mtpa by 2035, nearly four times the 14.1 mtpa recorded last year, according to Rystad Energy.

Cheaper, flexible, and mobile: Developers are leaning on FLNG units as a cost-efficient alternative to onshore facilities, with prices ranging between USD 500-640 per ton. FLNGs have operational flexibility and can be relocated or sold. FLNG projects can be delivered faster than offshore facilities, supporting quicker final investment decisions and execution.

SOUND SMART- FLNGs produce, while FSRUs consume. The former process and liquefy gas offshore for export, while floating storage and regasification units (FSRUs) store imported cargoes and regasify them for domestic grids.

** DID YOU KNOW that we cover Saudi Arabia and the UAE?

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how counterfeit cables threaten Egyptian lives and the economy — check out the story here.

DATA POINT-

The World Bank has financed 201 projects in Egypt amounting to a total of USD 27.5 bn since 1959, according to a report (pdf) from the bank on its 2025 portfolio. The projects have focused on infrastructure, human capital, sector reforms, service delivery, and private sector development.

CIRCLE YOUR CALENDAR-

Egypt will host the first edition of the AI Everything Middle East & Africa Summit and Expo between 10-12 February, according to the statement from the CIT Ministry. The three-day event, organized by GITEX Global in partnership with ITIDA, will gather policymakers, tech giants, startups, experts, and investors from more than 60 countries to showcase applications of artificial intelligence across key sectors.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

No one story is dominating the front pages this morning, as hotter, longer summers (yes, the summer is getting longer, the Washington Post says) are bringing business activity into a near halt.

HSBC’s Swiss private bank is reportedly offloading over 1k wealthy clients in the Middle East, spanning Egypt, Saudi Arabia, Lebanon, and Qatar, unnamed sources told the Financial Times and Bloomberg. The move — expected to be completed within six months — comes amid scrutiny from Swiss watchdog Finma to ensure compliance with anti-money laundering regulations. HSBC is “evolving the strategic focus of our Swiss Private Bank” as part of its wider plans to “reshape the Group,” the bank said in an emailed statement to Bloomberg. This plan entails “increasing leadership and market share in the areas where we have a clear competitive advantage.”

ALSO- A mighty fall: China’s Evergrande — once the biggest real estate firm in the country — saw its shares delisted from the Hong Kong stock exchange early this morning. The giant developer, which was valued at USD 51 bn at its peak in 2018, was crushed under a pile of USD 300 bn in liabilities amid a wider property crisis that started in 2021 and saw homebuyers and investors incur hefty losses.

ALSO WORTH NOTING-

*** 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 look at the latest efforts to attract more private investment into the education sector.

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