Good morning, folks. It’s another relatively slow day on the home front as we inch closer to the weekend. Energy and manufacturing lead the news well after Italian energy giant Eni pledged USD 8 bn in fresh investments into the local market over the coming few years and tiremaker Prometeon Tyre Egypt announced plans to invest USD 400 mn to expand its local operations.

ALSO IN TODAY’S ISSUE- Part one of an interview with CIT Minister Amr Talaat that dives into the country’s digital transformation and much more.

PSA-

WEATHER- Cairo is in for another cool day, with a high of 25°C and a low of 16°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 23°C and a low of 15°C.

WATCH THIS SPACE-

#1- Maersk has pledged to begin a gradual return to the Red Sea route starting December after signing a strategic partnership agreement with the Suez Canal Authority, according to a statement. No timeline for a full return, however, was given. CMA CGM also committed to a full return to the Red Sea by December, Suez Canal Authority head Osama Rabie said.

Don’t hold your breath: While the statement from the authority puts December as the start date of when we can expect Maersk vessels to make their comeback to the Red Sea, a company representative told Reuters that the firm is yet to set a date.

Other players are not fully convinced just yet: Japanese shipping company NYK is holding off its return to the Red Sea on the back of geopolitical risks, which outweigh the benefits of faster and cheaper routes, Lloyd’s List reports. The firm is currently waiting to see if talks between Israel, the Houthis, and Iran can bear fruit and deliver a lasting settlement.

There are other reasons to be wary of a quick return: With spot rates for containers falling more than 50% this year, shipping lines are incentivized to maintain their current voyages around the Cape of Good Hope over fears that a return to the shorter Red Sea route would flood the market with capacity and cause freight rates to plunge even lower.

In perspective: A return to the Red Sea route could loosen up about 6% to 7% of the world’s shipping capacity at some 2 mn TEUs, which are otherwise tied up due to the long distance of the Cape of Good Hope route.

#2- Eni to invest USD 8 bn in Egypt: Italy’s Eni pledged to invest USD 8 bn in Egypt over the next five years to develop existing fields and carry out additional exploration, CEO Claudio Descalzi said during a meeting with President Abdel Fattah El Sisi. The meeting also touched on the company’s ongoing projects and efforts to strengthen Egypt’s position as a regional energy trade hub.

Eni is doubling back on Egypt’s energy potential: The Italian energy giant extended its Gulf of Suez and Nile Delta concession agreement until 2040, under an agreement it inked earlier this month with the Egyptian General Petroleum Corporation.

#3- TMG to develop eco-friendly tourism project in Sharm El Sheikh: Acting Environment Minister Manal Awad met with Talaat Moustafa Group CEO Hisham Talaat Moustafa to discuss plans for an environmentally sustainable tourism project in Sharm El Sheikh, according to a statement. The project is being designed by international consultants and will focus on preserving coral reefs and natural resources along the Red Sea.

DIPLOMACY-

Intelligence chiefs discuss next phase of Gaza ceasefire: Intelligence Chief Hassan Rashad met yesterday with his Turkish counterpart and the Qatari foreign minister to discuss moving to the second phase of the Gaza ceasefire agreement and stepping up coordination with the US, Reuters reports. The three officials also agreed to continue working alongside the Civil Military Coordination Center to ensure the truce holds and to address violations of the agreement.

POLICY-

Egypt will continue monitoring Ethiopia’s moves in operating and managing the Grand Ethiopian Renaissance Dam and “will take all appropriate measures and steps” to protect its interests in the Nile in line with international law and the UN Charter, Foreign Minister Badr Abdelaty said during an AmCham event attended by EnterpriseAM yesterday.

“Water security is simply an existential issue for us,” he said. Egypt does not oppose Ethiopia’s right to development, he said, adding that this must take place in accordance with international law and within a legally binding framework that prevents harm to downstream states.

REMEMBER- Ethiopia officially inaugurated the GERD in September, after more than a decade of construction and negotiations with downstream nations, Egypt and Sudan, that never went anywhere. Egypt has since sent a formal letter to the UN Security Council following the inauguration, calling the move “an unilateral act in violation of international law.”

DATA POINT-

Half of the USD 11.6 bn invested in the Suez Canal Economic Zone in the last three and a half years came from China, according to a statement. The China-Egypt Teda industrial zone has so far attracted some USD 3 bn over 200 projects, while the Qantara West Industrial Zone has seen more than USD 700 mn in investments from China.

CIRCLE YOUR CALENDAR-

Cairo will host the International Procurement Supply Chain Conference on 6 December. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

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-

Markets extended their rally yesterday, after new US economic data — including soft retail sales and lower consumer confidence in September — strengthened the case for a third rate cut next month. The Dow closed up 1.43%, while the S&P 500 was up 0.91%. Meanwhile, Nasdaq’s gains were limited to 0.67% on a 2.6% decline in Nvidia over Google competition fears. (Reuters | Financial Times | CNN | Semafor)

OVER IN GEOPOLITICS- A-US backed peace framework won Ukraine’s backing after a few days of intense negotiations, with “only a few remaining points of disagreement,” according to US President Trump. The amended proposal is unlikely to appeal to Moscow, which seems uncompromising on its goals to solidify territorial gains and slash Ukraine’s military within an inch of its life. (CNN | Reuters | CNBC)

ALSO WORTH NOTING-

  • Trump’s Genesis Mission will build a digital platform to concentrate scientific data and pave the way for using AI in engineering, energy and national security. (Associated Press)
  • An Ethiopian volcano eruption sent ashes all the way to Delhi. (BBC)

*** 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 take a look at how a bonded warehouse pilot could help crank up demand for re-export services.

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