Good morning, all. We end this shorter-than-usual work week with another packed issue, led by debt news, as the government gears up to issue its first-ever local sukuk as part of a wider EGP 25 bn program. The issuance has been long delayed and comes as part of wider efforts by the Madbouly government to diversify its debt instruments.

** A QUICK PROGRAMMING NOTE- EnterpriseAM Egypt will be joining the rest of you in taking tomorrow off in observance of the Prophet Muhammad’s birthday. We’ll be back in your inboxes bright and early on Sunday with everything you may have missed over the long weekend.

In the fourth issue of our Destination Sahel series, we’re bringing you the latest updates on New Alamein City and a look at the best investments in Sahel today. We also investigate the growing issue of beach erosion and its impact on our shores.

Look for Destination Sahel, Issue IV, in your inbox today.

Missed the first three issues? Tap here to read the full series.

PSA-

WEATHER- It’s another sunny day in Cairo today, with a high of 35°C and a low of 24°C, according to our favorite weather app.

It’s not as hot in Alexandria, which is looking at a high of 32°C and a low of 24°C.

WATCH THIS SPACE-

#1- We could be in line for some fresh Gulf investments, with Bahraini Crown Prince Salman bin Hamad Al Khalifa in town, where he will partake in discussions alongside Prime Minister Moustafa Madbouly aimed at enhancing cooperation across sectors.

What to expect? Bahraini Sustainable Development Minister Nour Alkhulaif told AsharqBusiness that her country sees opportunities in Egypt’s tourism, industry, and financial services sectors, adding that she expects the two sides to ink several MoUs during Al Khalifa’s time in town. Egypt seeks to boost investments and non-oil trade with Bahrain, Investment Minister Hassan El Khatib told Asharq Business.

DATA POINT- Bahraini investments in Egypt stood at USD 470 mn by the end of 2024, mostly focused on financial services. Non-oil trade between the two nations currently stands at USD 35 mn.

#2- Egypt is aiming to attract some EGP 350 bn in pharma investments over the next five years, Federation of Egyptian Industries’ pharma division head Gamal El Leithy is quoted as saying by Al Arabiya. The plan would see the number of pharma factories increase to 250 from 180 by 2030, with half of the new investments expected to come from foreign players, thanks to rising interest in the sector from global investment funds. El Leithy penciled in an average investment of about EGP 5 bn per new factory.

#3- The gov’t’s National Narrative for Economic Development is days away: The Planning Ministry will launch the five-year National Narrative for Economic Development on Sunday, Planning Minister Rania Al Mashat revealed during the weekly cabinet meeting. The narrative will be open for public consultation and community dialogue over the next two months.

What to expect: The narrative will cover macroeconomic stability, foreign direct investment, industrial development, labor market efficiency, and regional economic planning, with the end goal of pushing Egypt to become a trade and export-oriented economy and enhance private sector participation in the economy.

HAPPENING TODAY-

#1- Could we see the non-oil private sector activity break a five-month contraction stretch? Policymakers and the business community are eagerly awaiting S&P Global’s PMI figures measuring non-oil private sector activity for August, due to be published later today. Last month’s report saw the country’s headline figure rise to 49.5, just short of the 50.0 neutral threshold that separates growth from contraction. Non-oil private sector activity has declined for five straight months and has only been in expansion territory for two months since November 2020.

#2- It’s the third and final day of the G20 meeting in Cairo on global and regional food security. The event marks not just Egypt’s first time to host a G20 gathering, but the first time a non-G20 member has done so. Egypt contributed to the discussion by arguing for greater international financing for sustainable agricultural investment and reforms to global financial structures to help developing and African countries cope with food price shocks, climate change, and fiscal strain.

#3- It’s the last day of the pharma manufacturing expo Pharmaconex at the Egypt International Exhibition Center. The three-day event highlights recent public and private sectors’ efforts to localize drug manufacturing and strengthen supply chains under the National Health Strategy 2024-2030. The exhibition hosts over 350 exhibitors from 40 countries and features some 70 conference sessions.

MARKET WATCH-

The gold rush persists: Gold prices continued to rise yesterday, with the price of 24-carat gold now standing at EGP 5,406 per gram, in response to a jump in global gold prices, which have been hitting record highs as investors flock to the safe-haven asset.

The jump in local prices was somewhat controlled in comparison to what global prices are seeing, the head of the gold division at the Federation of Egyptian Chambers of Commerce, Ehab Wassef, told us, attributing that to exchange rate stability and reduced local demand.

DATA POINT-

The Suez Canal Economic Zone (SCZone) has attracted USD 10.2 bn worth of investments over the past 38 months, spread across 311 agreements for logistics, services, and industrial projects, according to a SCZone statement.

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

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THE BIG STORY ABROAD-

Google won’t have to sell Chrome after all: Tech giant Google will not be forced to sell Chrome or Android, according to the US Department of Justice ruling, instead it will be required to share more data with competitors and limit its exclusive distribution contracts — including its exclusive partnership with Apple for its Gemini chatbot. The ruling follows last year’s verdict that Google illegally monopolized the online search market.

Market reax: Google parent Alphabet’s shares rose over 8% in after hours trading, while Apple’s shares jumped 4.3% following the ruling, which was influenced by the rise of Gen-AI which is quickly becoming a threat to Google’s dominance of the search engine market. (Financial Times | Bloomberg | Washington Post | Wall Street Journal | The Guardian)

AND- It was a bad day for US stocks, which continued their slide on the back of an increase in corporate debt sales and concerns surrounding global debt. The S&P 500 fell 0.7%, the Nasdaq was down 0.8%, and the Dow Jones fell 0.5%. Meanwhile, yields on 30-year treasuries are almost at 5%. (Financial Times | 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 dive into the world of cold storage and where it stands in the future of Egypt’s storage industry.

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