Beijing and Cairo put working tracks around their relationship

☀️ Good morning, friends, and happy first weekend of September. Speaking of which, we’ve got our Founder of the Month today. Speaking to us is Zeyad Zein, an architect who decided Egypt’s construction industry could use a little vitality, building Om el Donia’s first 3D concrete printing company almost from scratch and now running five state-of-the-art machines around the clock for some of Egypt’s biggest developers.

Elsewhere in today’s issue: a book that hasn’t gone out of print since 1970, detailing 20 years of letters between a New York writer and a London bookseller, with not a page wasted. Also: a Ridley Scott post-apocalyptic film that doesn’t quite earn its cast, and a daily podcast that makes 15 minutes feel like a proper book club. That and more.

But first — as usual — your weekly recap…

🗞️ LAST WEEK IN 3 MINS-

DIPLOMACY-

President Abdel Fattah El Sisi and his Chinese counterpart Xi Jinping oversaw the signing of five agreements and MoUs during the latter’s visit, plus more than 20 further cooperation documents. The five agreements run from an MoU aligning Egypt’s Vision 2030 with China’s Belt and Road, through economic and technical cooperation, industrial and supply chain, and information technology MoUs, to one between the Suez Canal Economic Zone (SCZone) authority and China’s Commerce Ministry.

The most concrete industrial piece is at Teda. El Sisi and Xi agreed to expand the China-Egypt Teda zone in the SCZone — a third-phase expansion, per an official statement, aimed at industrial localization and technology transfer in sectors like renewable energy, automotive, textiles, and chemical fibers.

CAPITAL MARKETS-

The EGX30 eked out a modest 2.66% gain in August, closing the month at 54.9k points, with every sector finishing in the green. Foreign investors swung back to net selling after July’s brief turn to net buying. The EGX70 (+14.6%) and the EGX33 Shariah Index (+8.9%) outperformed the benchmark gauge.

GLOBAL POLICY-

US Treasury Secretary Scott Bessent expects Washington’s financial policy arm to keep adding names to its Iran sanctions list at a pace of roughly one round a week, and banks are where the campaign begins. This comes days after the Treasury Department’s Financial Crimes Enforcement Network moved to strip correspondent banking access from Banque Misr’s UAE outpost, alleging that the bank processed USD 1.8 bn for companies that US officials claim are linked to Iranian shadow-banking networks.

REGULATION-

Every private-sector establishment with at least 10 workers must prepare internal workplace regulations under general rules the Labor Ministry launched yesterday. The regulations must comply with the ministry’s framework and the Labor Law, but they will not follow a one-size-fits-all template.

TOURISM-

Red Sea tourism operators expect winter arrivals to rise around 20% y-o-y this season — but most aren’t changing their rates. Some 90% of hotels across Marsa Alam, Hurghada, and Sharm El Sheikh plan to hold room prices flat this winter, absorbing a year of higher energy and utility costs rather than passing them on. Major branded chains with steady year-round demand and standing tour operator contracts expect to raise prices around 10%.

INVESTMENT-

A Saudi-Egyptian consortium is setting up a real estate investment fund, branded Asl, spanning Egypt and Saudi Arabia. It plans to deploy up to SAR 1 bn (c. USD 266.7 mn) here in its first year, through Asl Holding, with a focus on real estate and hospitality.

MANUFACTURING-

Electricity Minister Mahmoud Esmat is advancing plans to locally manufacture battery energy storage systems and build standalone storage stations totaling 4 GWh, financed in EGP, after meeting Huawei Egypt CEO Benjamin Hou. The two reviewed technical and economic feasibility studies for proposed storage sites on the national grid, along with the terms and obligations needed to start the manufacturing plant. Talks also covered digital transformation, smart-grid solutions, data centers, and upgrades to grid communications, part of the shift from a traditional to a smart grid.

MOVES-

Valu’s board of directors extended CEO and founder Walid Hassouna’s term for another three years. The board also extended the contracts of Executive Committee members for the same period.

Why Rep. Neveen El Tahri is optimistic: Foreign investors see a lot of potential in Egypt. Their optimism, however, is not necessarily shared by many inside Egypt. So where does the gap lie?

On this episode of Making It, Rep. Neveen El Tahri joins Patrick to make the case for optimism.

She dives into policy, privatization, the many opportunities ahead of Egypt, and her personal belief that changes on the policy level will eventually trickle down.

Listen to the episode on: Apple Podcasts | Spotify | Anghami | YouTube

Sign up to our newsletter to get Making It in your inbox.

🌍 AROUND THE WORLD IN SEVEN DAYS-

This week’s headlines were dominated by a sharp US-Iran re-escalation — Washington launched its first strikes in over a month, then a full barrage of airstrikes on Wednesday, as Tehran attempted to lay mines in the Strait of Hormuz and threatened to choke off all oil exports through the waterway. Here’s the rundown.

The economic squeeze on Iran is working, on paper: Iranian President Pezeshkian said sanctions and the naval blockade have pushed Iranian imports and exports down between 25% and 35%, while Supreme Leader Khamenei called for a “Resistance Economy” and lower dependence on the USD. Later, US forces struck two Iranian rocket launchers on Larak Island on Monday in what Washington called a preemptive move against imminent mine-laying — Iran responded with missiles toward Jordan, reportedly intercepted.

By Wednesday, after Tehran attempted to mine Hormuz regardless, the US launched a full barrage of airstrikes targeting IRGC air defense, radar, and communications infrastructure. Iranian Parliament Speaker Ghalibaf warned that continued US attacks could trigger a blockade on all oil exports through the waterway. Iran proceeded to retaliate against US military bases throughout the region.

IN OTHER NEWS- Washington struck an agreement with Caracas granting a US-led company 100-year concessions on 17 Venezuelan oilfields — containing more than a fifth of the country’s reserves, or over 65 bn barrels. Trump framed it as a path to lower domestic gas prices; Venezuelan opposition figures and some government supporters called it a sellout. Chevron followed with a USD 7 bn plan to double its Venezuelan output over the next five years, with Eni and General Electric also committing to the Washington-led investment drive.

ALSO DOMINATING THE NEWS THIS WEEK- Nepal is searching for over 4.2k people missing after devastating floods killed at least 1.2k, with infrastructure repair costs estimated at up to USD 5 bn — the US sent USD 3.6 mn in aid.

AT THE G20- Russia’s Finance Minister Anton Siluanov attended this week’s G20 finance summit in North Carolina — his first G20 appearance since Moscow’s 2022 invasion of Ukraine — drawing sharp opposition from European officials.

IN THE BUSINESS PRESS- Global bond markets are in crisis: yields hit multi-decade highs across Japan, the UK, Germany, France, and the US this week, with the 10-year Treasury yield edging toward 4.8% — a level last seen in January 2025 — as inflation fears and government debt loads compound. Ins. broker Aon is closing in on a USD 17 bn acquisition of KKR-owned rival USI, the latest in a string of large PE exits by KKR.

ALSO- A federal judge rejected the DOJ’s bid to break up Google’s ad unit for the second time in as many years — ruling that while Google operated an illegal monopoly, forced divestiture of Chrome or Android was not required.

The EnterpriseAM Egypt Forum is back — and we’re devoting the full day to the singular set of questions on everyone’s mind: What does AI actually mean for your company, your people, your economy, your own job — and your kids’ future?

Every session on stage answers one question: “So, what do I actually do about it?”

Join us on 5 October in Cairo. Seats are limited and attendance is by invitation only.

Request your invitation here.

☀️ THE WEATHER THIS WEEKEND-

The heat isn’t going anywhere just yet. If you’re holding down the fort in Cairo this weekend, expect a high of 36°C, with an overnight low of 24°C today. Tomorrow offers more of the same, with a high of 35°C and a low of 24°C, according to our favorite weather app.

🎤 HAPPENING THIS WEEKEND AND BEYOND-

Comedy crew The High Five are headed to Alexandria tonight to perform at El Anfoushy Theater for another round of their In & Out stand-up comedy show. The five comedians — Fekry Tarek, Abdelrahman Mohamed, Pola Samwel, Badr Nour, and Gamal Ramzy — bring fresh material, relatable stories, and nonstop laughter. The show kicks off at 8pm, and tickets are available on TicketsMarché.

Catch “El Leila El Kebeera” — an evening of authentic Egyptian folk music. The show runs tonight at Teatro 90 in New Cairo at 8:30 pm. Tickets available on TicketsMarché.

Hesham Maged’s first-ever play, Khayal Mareed, is still on for a late-summer comedy fix at Theatro Arkan, running from Sunday, 6 September, to Wednesday, 9 September, and every Thursday and Friday in October at 8pm. The interactive play stars Mohamed Abdel Rahman, Hanady Mehanna, Ahmed El Rafaie, Dina Diab, and more. You can secure your tickets on TicketsMarché.

Adonis is giving you a reason to stay out late on a Thursday. The Lebanese indie-pop band is taking over Teatro 90 in New Cairo on Thursday, 10 September, bringing their signature sound to the stage for a night of fan favorites, iconic hits, and new music from their upcoming album. The concert starts at 9:30pm — tickets are available on TicketsMarché.

Movie lovers, it’s your lucky day. Touring international film festival MedFest Egypt is returning to AUC Tahrir Square for a five-day run from Thursday, 10 September, to Monday, 14 September. This year’s program, themed “Beyond the Scene,” packs in film screenings, conversations, and workshops. You can choose the Full Pass, which includes workshop registration, or the Festival Supporter Platinum or Gold Badge, all available through TicketsMarché. Workshop spots are limited, so hurry and secure your spot.