Good morning, friends and a happy Tuesday to you all. It’s another busy morning here in Egypt, with debt and energy news leading the news well — our maiden EGP sukuk issuance got pushed back again and QatarEnergy snapped up 40% of the Med’s North Rafah offshore gas concession.

BEFORE WE DIVE IN- Who might be interested in acquiring HSBC Egypt’s retail business — if, indeed, it’s for sale? The parlour game has begun in Cairo banking circles and so, too, has the posturing. Case in point: Al Mal reported yesterday that Emirates NBD is interested, quoting an unnamed source as saying the UAE-based lender was running “preliminary studies on the portfolio.”

That’s premature: HSBC isn’t yet accepting expressions of interest and won’t unless the review process it announced last week points in that direction. As it is, the review is just getting underway and the bank hasn’t made any decisions.

BACKGROUND- It’s still business-as-usual at HSBC Egypt after HSBC Group said last Thursday that it was putting the retail business here in review. That’s C-suite speak for “we’re looking at options,” which range from solicit offers for the business as part of a potential sale process to keep it as it is. HSBC hasn’t said how long the review would take and there are no changes for retail customers now.

HSBC Egypt, meanwhile, is there to stay — along with its commercial and institutional banking units. “Egypt is an important market for HSBC and has strong potential for growth. HSBC will continue to focus on driving two-way trade and investment flows to support multinational clients operating in Egypt and enable domestic wholesale clients to achieve their international ambitions,” the bank said last Thursday.

So who might be interested in HSBC Egypt’s retail portfolio? We’d absolutely expect Emirates NBD to be interested — a smart institution that is pushing now into India with a high-profile acquisition. We believe HSBC Egypt’s retail portfolio is disproportionately weighted toward high-value clients attracted to its Premier proposition. We would be surprised if market heavyweight CIB isn’t interested in having a look, as would QNB Al Ahly — if, indeed, HSBC Group decides the retail portfolio is up for grabs.

PSA-

We’re less than five days away from the Grand Egyptian Museum’s grand opening, with festivities kicking off on Saturday, 1 November at 5pm.

Want to visit the museum yourself? The museum will be officially open to the public starting Tuesday, 4 November. You can purchase your admission and guided tour ticket through the museum’s website.

Want a look behind the curtains? EnterpriseAM has you covered. The first of four weekly special issues about the GEM will land in your inbox this Wednesday, charting the museum’s journey from the launch of a record-breaking international design competition to the final stages of completion and capturing the challenges, milestones, and unwavering ambition that brought it to life.

WEATHER- It’s another sunny day in Cairo, with a high of 29°C and a low of 20°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 29°C and a low of 19°C.

WATCH THIS SPACE-

The government is mulling revising the State Ownership Policy — the updated version of the policy will prioritize private sector investments in state-owned companies over asset sales in a move that is expected to increase returns from state-owned assets. This came during a meeting of the committee in charge of the policy, headed by Prime Minister Moustafa Madbouly.

What we can expect: The revised policy will focus on placing restrictions on the establishment of new state-owned enterprises, setting clear boundaries between the state’s roles as owner, regulator, and policymaker, enhancing state-owned companies’ boards’ independence, diversity, and quality, and finally developing a clear dividend distribution policy to improve public asset management efficiency.

IN CONTEXT- The government brought to light the State Ownership Policy over three years ago and while some sales did go through, progress on the privatization front has been less than ideal and a constant sticking point during discussions with the IMF over our loan program. The state raised 48% of its USD 12.2 bn privatization target for March 2022-July 2025. During the period, the state sold stakes in 19 companies through direct stake sales and IPOs, raising some USD 5.9 bn.

ENTERPRISEAM HAD THE STORY FIRST- Sources told us in August that the state had become more interested in offering minority stakes in state-owned companies on the EGX than in selling stakes to strategic investors. At the time we were told that the state is putting the final touches on listing 10-40% stakes in a number of companies on EGX.

HAPPENING TODAY-

#1- Hungry for insights from the cabinet’s economic team? BEBA will host Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib today for a working early dinner at Sheraton Cairo Hotel. The conversation with the two senior cabinet members will be followed by a Q&A session.

#2- The US Federal Reserve is expected to cut interest rates for the second time after its September cut at its Federal Open Market Committee today. Softer US inflation figures that came out last week put the Fed on course to make another small 25 basis point cut, analysts say.

Speaking of the Fed, Treasury Secretary Scott Bessent said the Fed’s next heir will likely be named by the end of the year, after whittling down the shortlist of candidates to just five, CNBC reports. The names potentially replacing current Fed chair Jerome Powell are: Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.

HAPPENING TOMORROW-

The Industry Ministry will start offering up 1.1k industrial land plots across 16 governorates tomorrow on the Made in Egypt platform, according to a statement from the ministry. The plots — ranging from 190k-500k sqm — are designated for projects in the food, engineering, chemical, pharma, textile, and building materials sectors. Investors will have until 6 November to apply.

SUKUK WATCH-

The yield to maturity on our sovereign sukuk rose to 6.32% last Friday, up from 6.25% the week before, according to the Egyptian Financial Company for Sovereign Taskeek’s weekly report (pdf). Egyptian sovereign sukuk prices fell to USD 101.47, compared to USD 101.58 a week earlier.

CIRCLE YOUR CALENDAR-

#1- Egypt and the UK will hold the Egypt-UK Investment Conference on 8 December to showcase Egypt’s economic reforms and explore new prospects for bilateral cooperation, according to an Investment Ministry statement. The event will bring together officials and investors from both countries to discuss cooperation in sectors like renewable energy, fintech, trade, and agriculture.

#2- The Digital Payments and Financial Inclusion Exhibition and Forum (PAFIX 2025) will run from 16-19 November at the Egypt International Exhibition Center in New Cairo. The event will gather over 1k organizations and 200 exhibitors from Egypt, the Middle East, and Africa to discuss how emerging technologies, especially AI, are transforming financial services.

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

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THE BIG STORY ABROAD-

It’s a mixed bag in the international business press this morning, though mostly quiet as we await the US Federal Reserve’s interest rate decision tomorrow and Big Tech’s earnings later this week.

One story getting attention is Amazon’s plans to cut some 30k corporate jobs, its largest cut yet, slashing around 10% of its corporate workforce. The move comes as the firm looks to cut expenses and trim back its team after an overhiring wave during peak demand in the pandemic. Another reason could potentially be productivity gains from the use of AI which have removed the need for some corporate jobs, and a need for less bureaucracy. (Reuters | Wall Street Journal | CNBC)

Also from the world of Big Tech: Qualcomm will start producing semiconductor chips, entering a market that’s already dominated by US chipmaker Nvidia, which also includes players like Advanced Micro Devices. It previously produced chips for wireless connectivity and mobile devices. Its shares jumped 11% on the news. (CNBC | WSJ | Financial Times)

Over in Russia, its second-largest oil producer Lukoil is selling its international assets following the sanctions introduced against it by the US last week. (Reuters | FT | Bloomberg)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at what manufacturers are doing to prepare for the EU’s incoming Carbon Border Adjustment Mechanism — and what will happen if they don’t.

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