Good afternoon, friends, and welcome to the home stretch. While we may be approaching the weekend, the news cycle isn’t showing any signs of slowing down.

THE BIG STORY TODAY-

📍 Policymakers plan to roll out a package of stock market incentives next week to boost investment flows through the EGX, two senior government sources told EnterpriseAM. The measures will be coordinated with the FRA and the ministries of finance and investment.

The changes: The package will scrap capital gains taxes and replace them with a unified 0.125% stamp duty for all investors, and include incentives for unlisted shares. To encourage IPOs, profits from new listings will be tax-exempt, and amendments to the Investment Law will link exchange listings to GAFI’s investment incentives. The government expects the package to increase EGX listings, attract more investment, and ramp up overall market capitalization. Other measures include adding gold funds to the list of tax-exempt investments, simplifying regulations to attract companies to the main index, and stimulating off-floor markets.

IN CONTEXT- The government is ramping up its privatization drive, expanding its programto 50state-owned companies across 14 sectors, with a focus on ramping up private-sector participation through minority EGX listings rather than mainly strategic sales. Policymakers hope the renewed push will anchor Egypt’s State Ownership Policy and support progress in ongoing IMF program reviews, following mixed results in prior privatization efforts. Last week, Finance Minister Ahmed Kouchouk said the government is working to finalize a privatization transaction before the end of 2025. We have an idea what transaction he is talking about, with sources previously telling us the government plans to list the Gabal El Zeit wind farm on the EGX before year-end.

THE BIG STORY ABROAD-

🌐 It’s another busy afternoon in the global press in what has thus far been a politically-charged week. Hours following a near-unanimous vote by the US House of Representatives to release the Jeffery Epstein files, the US Senate agreed to pass the bill, which is now pending US President Donald Trump’s signature. The overwhelming vote to release the Epstein files follows days of political controversy, which saw thousands of damning emails released tying Trump and other government officials to the convicted [redacted] offender.

ICYMI- Earlier this week, Trump took to Truth Social to call on Republicans to vote for the files’ release, claiming he has “nothing to hide.” The US president’s heel turn came as a surprise, as he had previously quelled any attempt at release. (Guardian | BBC | ABC | New York Times | Washington Post)

Not so quiet on the western front: Yesterday also saw Trump and Saudi Crown Prince Mohammed Bin Salman meet at the White House, where they signed agreements on defense, nuclear negotiations, AI, and more. In the Oval Office, Trump shut down ABC News Chief White House Correspondent Mary Bruce after she confronted him with the Epstein files, and Bin Salman with his alleged involvement in the murder of Washington Post columnist Jamal Khashoggi. “Your news is so fake and so wrong,” Trump told Bruce, “I think you’re a terrible reporter,” he added. Later, the US president said that ABC’s license should be “taken away.” (CNBC | Reuters | New York Times)

ELSEWHERE IN THE WORLD- Russian attacks on Ukraine left at least 19 dead and 66 wounded after overnight missile and drone attacks targeting energy and transport infrastructure struck a residential area in Ternopil in western Ukraine. The attack is reportedly one of the deadliest since February 2020. (Reuters | BBC | New York Times)

☀️ TOMORROW’S WEATHER- We’re in for a sunny day in Cairo tomorrow, with the mercury set to peak at 28°C before cooling down to 19°C, according to our favorite weather app.

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