Good afternoon, friends, and welcome to the start of a fresh new workweek. The last official day of the summer is ushering in cooler weather and a news cycle that seems to be sprinting to the finish line.

THE BIG STORY TODAY-

Some 601 exporters received EGP 368 mn in overdue receivables through the Export Development Fund, marking the completion of the first tranche of the direct payment portion of the mechanism to settle the state’s owed export subsidy payments, according to a statement from the Finance Ministry. The move is part of the state’s efforts to clear EGP 60 bn in overdue payments to exporters tied to shipments made up to 30 June 2024, which will be done through a combination of cash-based disbursements and offset arrangements.

Expected to see more payments like this soon, with exporters set to receive 50% of their dues in cash installments over four fiscal years, Prime Minister Moustafa Madbouly said when announcing the new mechanism in January. A total of EGP 8 bn will be paid out every year, while the remaining 50% will be settled through offsets against outstanding or future liabilities with the Tax Authority, Customs Authority, and utility providers like gas and electricity companies.

THE BIG STORY ABROAD-

It’s another busy afternoon in the global press, with Trump’s USD 100k fee for applicants to the H-1B skilled worker visas still getting plenty of ink. Following intense backlash from US immigration lawyers who noted that the steep hike would essentially be a kill order for the visa, the White House clarified that the new fee will not apply to “those who already hold H-1B visas and are currently outside of the country,” Press Secretary Karoline Leavitt wrote on X. The fee will also be levied per petition and would be waived if “in the national interest,” Reuters reports.

ACROSS THE POND- UK Prime Minister Keir Starmer is reportedly set to recognize a Palestinian state this afternoon, making the UK the first G7 nation to do so. The move would follow an earlier announcement in July which saw Starmer “threaten” recognition were Israel not to fulfil a series of conditions aimed at improving the humanitarian crisis in Gaza. Though the announcement would be symbolic at best, with Deputy PM David Lammy noting it would not “make a Palestinian state happen overnight,” it comes despite strong opposition from both Israeli and US governments, who claim recognition would be a “gift” to Hamas.

Two more G7 nations — Canada and France — are also expected to issue similar statements later this week at the UN General Assembly meeting. Other nations, such as Belgium, Australia, and Portugal have also made public their intentions to recognize a Palestinian state at the upcoming assembly. (BBC | Reuters | Guardian | Associated Press | CNN)

enterprise

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

☀️ TOMORROW’S WEATHER- We’re in for a balmy day in the capital, with temperatures set to peak at 32°C before cooling down to 20°C, according to our favorite weather app.

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