Good afternoon, friends, and congratulations on another successful workweek.

THE BIG STORY TODAY-

📍New public debt strategy set for December release: The Finance Ministry is planning to unveil its new public debt strategy this December, Finance Minister Ahmed Kouchouk told representatives from JP Morgan, Morgan Stanley, and Goldman Sachs in Washington, according to a ministry statement.

The announcement confirms what we reported in July about the upcoming strategy for 2025-2030, which will feature social and sustainability bond issuances. Originally slated for release at the start of this year, the strategy was postponed due to “disruptions in the interest rate market and difficulty forecasting the impact of previous tensions on bond markets,” a source told EnterpriseAM at the time.

The broad strokes: The Finance Ministry aims to bring public debt down to below 75% of GDP within three years, from 85% in the last fiscal year, while cutting debt servicing costs to 7% of GDP and extending debt maturity to five years.

How are we going to get there? The strategy will employ several mechanisms, including debt-for-investment swaps modeled after the Ras El Hikma agreement — converting a significant portion of regional and international deposits into investments — alongside increased concessional financing from financial institutions.

THE BIG STORY ABROAD-

🌐 All eyes remain on Gaza following rising concerns over a return to war just days after world leaders signed the Gaza peace agreement in Egypt. US President Donald Trump said he’s considering giving Israeli Prime Minister Benjamin Netanyahu the greenlight to resume military operations in Gaza, telling CNN that the IDF could return to Gaza “as soon as [he says] the word.”

Trump’s statement follows Israel’s threats to return to war on account of Hamas allegedly not abiding by the agreement of returning the remains of deceased Israeli hostages, which remain under the rubble. Israeli Defense Minister Israel Katz reportedly ordered the IDF to prepare for “the total defeat of Hamas,” Bloomberg reports. The Rafah border remains closed until “greater effort” is made by Hamas to return the remains, according to Israeli radio.

ALSO- Drone strikes are being reported near Khan Younis, with one Palestinian man killed and two others seriously injured CNN reports, citing Palestinian media. The IDF has denied these reports. (CNN | Bloomberg | BBC | Guardian | Independent)

☀️ TOMORROW’S WEATHER- We’re in for a cloudy weekend, with temperatures in Cairo reaching a hotter high of 30°C and almost halving by night to cool to 16°C, according to our favorite weather app.

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