Gov’t publishes blackout schedule

Tuesday, 1 Aug 2023

Gov’t publishes blackout schedule

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Today at a glance

What We're Tracking Today

Government publishes blackout schedules.

Energy

Maersk could acquire half of the 545-MW Zafarana wind farm.

Automotive

Auto sales resume their decline in June.

M&A WATCH

Beltone wants to acquire a local microfinance player.

DEBT WATCH

Tasaheel + Talaat Moustafa Group close securitized bond sales.

What We're Tracking Today

The EGX50 reaches the end of the line.

Moves

Int’l Cooperation Minister Rania Al Mashat appointed to ADIB Egypt board.

PLANET FINANCE

Citigroup is gearing up for a new run of Gulf IPOs in the coming months.

Going Green

The Red Sea’s sea urchin population is declining: Here's what that means.

What We're Tracking Today

Egyptian Exchange to terminate EGX50 today

Good morning, ladies and gents. We have a brisk issue for you this morning so let’s jump in.

THE BIG STORY here at home- You can now find out when the power will cut (it just might take you a while). The cabinet yesterday published a full schedule for the rolling blackouts with an eye on giving the public more foresight about when they’ll be left without power.

Surely there was another way? The schedules are something of a labyrinthine affair that require us to read through hundreds of documents that map the power cuts across governorates down to single streets by the hour. You can view the full Cairo timetables here and here, and the Giza schedule here.

The good news: Rather than the multiple daily blackouts we’ve seen over the past two weeks, we can now expect to face only a single, hour-long power cut per day under the new schedule.

Remember: The government was forced into making power cuts across the country last month after an unusually long summer heatwave caused electricity demand to spike. It currently expects the blackouts to continue until at least the end of August.

IT’S A NEW MONTH: Here are the key news triggers to watch out for over the coming weeks:

#1- PMI: S&P Global will publish Egypt’s purchasing managers’ index on Wednesday. The non-oil private sector contracted at its slowest rate in 22 months in June amid signs that inflationary pressures could be easing.

#2- Interest rates: The Central Bank of Egypt is meeting this Thursday to discuss interest rates.

What analysts are saying: All seven analysts and economists we spoke to think the Monetary Policy Committee will keep rates on hold for a third consecutive meeting while the banking system shores up FX liquidity ahead of an anticipated devaluation later this year. A Reuters poll also forecasts rates to remain unchanged.

#3- Foreign reserves: The central bank will publish July’s foreign reserves figures at the end of this week or the beginning of the next. FX reserves continued to inch up in June, reaching USD 34.81 bn.

#4- Inflation: Capmas and the CBE will publish inflation figures for June on 10 August. Annual urban inflation hit a record high in June as the impact of multiple devaluations continued to feed through into the economy.

Expect another hot print if sugar prices are anything to go by: Sugar producers hiked prices by 26% in July, Asharq Business reports, citing the head of the sugar division at the Federation of Egyptian Industries, Hassan El Fandi. Prices jumped to EGP 24k per ton from EGP 19k early in the month according to El Fandi, who said that “there is no justification for the price hike in light of the available supply.”

Remember: Food prices account for the largest component in the basket of goods used to measure inflation, and have notched multiple record highs this year.

HAPPENING TODAY-

RIP EGX50: The Egyptian Exchange will terminate the EGX50 index today, eight years af ter its launch.

The reason: Hardly anyone uses it. The bourse announced the decision after a survey of 17 companies, asset managers, research centers, and investment funds fou nd all but one use d the index.

Out with the old, in with the new: A new shariah-compliant index is set to replace the EGX50 over the coming months.

At the National Dialogue: The National Dialogue will today hold sessions on public debt and equal opportunity.

WATCH THIS SPACE- The government will soon launch a new company allowing Egyptian expats to invest in local projects, Emigration Minister Soha Gendi said yesterday, according to Hapi Journal. Expats will be invited to purchase shares in the company, which will make investments in national projects, she said, speaking during a conference in Cairo yesterday.

THE BIG STORIES ABROAD-

The Donald is all over the front pages this morning after a US judge yesterday rejected his requests to end its investigation into whether he interfered with Georgia’s election results in 2020. Criminal charges are expected to be filed in the coming days against the former president, who has been indicted twice in the past four months on separate charges. ( Associated Press | Reuters | Bloomberg | New York Times | Washington Post)

Also getting attention:

Financial markets: The global financial press is focusing on what’s happening with the markets, the morning after oil notched its biggest month since early 2022 and US stocks recorded their longest streak of monthly gains in two years. ( Bloomberg | Financial Times | Wall Street Journal)
Bombing in Pakistan: A suicide bombing at a political rally in Pakistan left at least 54 dead and 200 injured on Sunday. Islamic State claimed responsibility for the attack. Egypt’s foreign ministry condemned the bombing yesterday. ( Associated Press | New York Times | CNN | BBC)

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

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

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’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: A rapid decline in Red Sea sea urchin stocks has biologists concerned about the future of the marine ecosystem.

Tags:

EGX What We're Tracking Today

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Privatization

Maersk could acquire half of Egypt’s biggest wind farm

Maersk could acquire half of the 545-MW Zafarana wind farm after the government approved the shipping giant’s ownership in principle , Al Ma l quotes government sources as saying.

The story so far: The company is yet to submit an official offer for the plant but has contacted the New and Renewable Energy Authority (NREA) expressing interest in acquiring the asset, a government source we talked to yesterday told us. The government is now inviting it to present an official bid and enter negotiations.

Up for grabs:Maersk would acquire assets producing 270 MW of power, according to the newspaper. This would see the compan y obtain a number of the eight separate projects that make up the Zafarana plant, the smallest of which produces 30 MW and the largest 120 MW .

Who owns what: The government owns 50% of the plant, with the remainder held by other international entities, the government source told us , without disclosing their identities. The plant was financed by a series of loans and grants from Germany, Japan, Spain, and Denmark, in addition to NREA borrowing from the National Investment Bank.

Maersk doesn’t need more: The Danish shipping firm is looking to use the energy generated at the farm to produce green fuels but only requires half of Zafarana’s output to achieve this, our source told us.

We’re seeing plenty of interest in state-owned wind farms: The government is looking to secure over USD 300 mn by selling the Gabal El Zeit wind farm, with UK private equity player Actis currently in pole position to buy the facility. Gabal El Zeit and Zafarana were both included in the list of 32 companies and assets earmarked for privatization by the government earlier this year and have attracted interest from investors including Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy, and our friends at local renewables firm Infinity.

And Maersk is already investing heavily in Egypt: Maersk unveiled plans last year for a USD 15 bn clean fuel project in Egypt as part of the Egyptian government’s plans to position the country as a regional hub for green energy. It plans to work with the Egyptian government to set up a national network to produce and distribute green energy and fuel for ships. The cabinet also approved in May requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320-MW wind farm that will power their green projects, which include a green hydrogen plant and the USD 15-bn clean fuel project for the latter.

Tags:

energy Maersk privatization watch renewables wind power

M&A WATCH

Beltone eyes acquisition of unnamed Egyptian microfinance player

Beltone looks to acquire mystery microfinance firm: Beltone Financial has inked an MoU to acquire an unnamed local microfinance firm through its holding company or one of its subsidiaries, it said in an EGX disclosure (pdf). The company didn’t respond to our request for comment when we reached out yesterday.

What’s next? Beltone will conduct due diligence on the firm after it gets the go-ahead from regulators.

Market reax: Beltone shares were up 3.7% to close at EGP 3.12 apiece on Monday.

Beltone has plenty of dry powder: The company in July closed a landmark EGP 10 bn capital increase, placing some 5 bn new shares on the EGX. Prominent global institutional investors came into the firm’s share base via the transaction, which was also met with heavy demand from local investors.

Tags:

Beltone Financial financial services M&A Watch microfinance non-banking financial services

Automotive

Auto sales decline in June

Auto sales resumed their decline in June, falling to the lowest level sin ce February as the industry continues to suffer through the FX crisis, according to figures released this morning by the Automotive Marketing Information Council (AMIC). Car companies sold 6.3k vehicles during the month, down from 7.3k in May, when sales rose after Ramadan. That’s 64% lower than the 17.1k vehicles that were sold in June 2022.

Remember: The ongoing currency crisis is weighing heavily on the local auto sector, which has struggled to find the FX to import vehicles and suffered from soaring inflation.

The breakdown: Companies sold fewer than 5k passenger cars during the month, down from 5.7k the month before and almost 60% lower than June 2022. Bus sales volumes fell slightly to 636 from 694 the month prior while sales of trucks fell to 703, the lowest figure since at least the beginning of 2018.

Sales are down heavily this year: Distrbuitors have sold just 26.9k passenger cars so far this year, down more than 70% from the first six months of 2022.

It has been tough going for the sector: Total auto sales volumes fell more than a third in 2022 after capital controls in place for most of the year made it almost impossible for distributors to import cars and components, and forced a number of global car manufacturers to suspend sales to Egypt.

Tags:

AMIC automotive

DEBT WATCH

MNT-Halan subsidiary Tasaheel + Talaat Moustafa Group close securitizations

The local securitization market continued its strong July this week, with Tasaheel and a subsidiary of Talaat Moustafa Group both closing issuances worth a combined EGP 3.75 bn.

#1- MNT-Halan’s microfinance subsidiary Tasaheel has closed a EGP 3.34 bn securitized bond issuance, the company said (pdf) yesterday. The issuance was 1.8x oversubscribed and will provide Tasaheel with “the liquidity for the company’s planned growth and to reach new segments in the local market,” the statement said. Three tranches of the four-tranche issuance were rated P1 and one was rated A+ .

More to come this year: The issuance is the third in a three year, EGP 13 bn program that Tasaheel kicked off in June 2022 with an EGP 2.6 bn issuance, followed by another EGP 2.7 bn issuance in January . The remaining EGP 4.3 bn is expected to be issued during 2023, the company said.

Who bought in? Arab African International Bank, Bank ABC, Banque Misr, Midbank, Al Ahli Bank of Kuwait, SAIB Bank, CI Capital, and Arab African Investment Management.

Advisors: CIB acted as the financial advisor, arranger, and custodian of the transaction. Matouk Bassiouny & Hennawy served as legal advisors and KPMG was the auditor.

#2- TMG unit closes future flow issuance:Talaat Moustafa Group (TMG) subsidiary the Arab Company for Projects and Urban Development sold EGP 411 mn of bonds backed by securitized future cashflows, the transaction’s legal advisor Dreny & Partners said in a statement (pdf) on Sunday.

A first and a second:This is the first issuance in Egypt to be backed by a portfolio of club membership fees, and the second to securitize future flows after CIRA debuted the securities last year.

Advisors: EFG Hermes acted as the sole financial advisor, and underwrote the transaction along with the Arab African International Bank (AAIB). AAIB also acted as custodian and the subscription bank, while RSM Egypt (Magdy Hashish) was the auditor. Dreny & Partners provided counsel.

DATA POINT- Companies have now issued more than EGP 45.3 bn of securitized bonds so far this year, according to data tracked by Enterprise. This is only EGP 80 mn shy of volu mes across the whole of 2022.

ALSO IN DEBT- Banque Misr will provide a EGP 500 mn medium-term loan to the National Bank of Egypt’s microfinance arm Al Ahly Tamkeen for Microfinance, the state-owned lender said in a statement (pdf) yesterday. The money will be used to expand the firm’s loan portfolio, the banks said.

Tags:

Al Ahly Tamkeen for Microfinance banking Banque Misr CIB debt watch Dreny & Partners EFG Hermes financial services Matouk Bassiouny & Hennawy microfinance MNT-Halan National Bank of Egypt Talaat Moustafa Group Tasaheel

EARNINGS WATCH

Aldar profit rises 52% y-o-y in 2Q 2023

Another quarter of record sales at Aldar: Emirati real estate giant Aldar Properties’ net income rose 52% y-o-y in 2Q 2023 on the back of record development sales, according to its earnings release (pdf) out yesterday. The Abu Dhabi-based developer’s bottom line hit AED 1.3 bn in the April-June quarter, driven by a 21% y-o-y increase in revenues which hit AED 3.2 bn.

Record quarterly sales: Aldar Development’s sales more than doubled y-o-y to a record AED 7 bn, thanks to a record number of launches and stronger demand from overseas and resident expat buyers in the UAE. Revenues at the company’s investment arm rose 39% to AED 1.2 bn on the back of contributions from acquisitions made in 2022 and strong performance across core real estate assets, along with a recovery in its hospitality portfolio.

Egypt made a contribution: SODIC contributed AED 158 mn (EGP 1.3 bn) to the group’s 2Q revenues. The Egyptian real estate developer reported sales of AED 630 mn (EGP 5.3 bn) during the three-month period. Aldar, together with Abu Dhabi wealth fund ADQ, acquired SODIC in 2021.

New expansions around the corner: The real estate developer plans to launch its development franchise in Dubai and Ras Al Khaimah in the next few months, said Aldar CEO Talal Al Dhiyebi.

Tags:

Aldar Properties earnings watch real estate SODIC

Moves

International Cooperation Minister Rania Al Mashat appointed to ADIB Egypt board

Al Mashat to sit on the board of ADIB Egypt: International Cooperation Minister Rania Al Mashat ( LinkedIn) is set to join the board of Abu Dhabi Islamic Bank Egypt as a non-executive member after Prime Minister Moustafa Madbouly approved the appointment, the Emirati lender said an EGX disclosure (pdf) yesterday. The decision will be presented to shareholders at the next general assembly meeting.

Tags:

ADIB Egypt banking moves Rania Al Mashat

LAST NIGHT’S TALK SHOWS

Blackout schedule dominates Egypt’s talk shows

Blackouts could start to consume less time on the airwaves after the government yesterday published the full schedule for daily power cuts across all of the country (well, almost all of the country). All of the talking heads dedicated segments to praising the announcement last night and elaborating on some of what we can expect over the coming weeks. Kelma Akhira ( watch, runtime: 4:40), Masa’a DMC ( watch, runtime: 4:25), Al Hayah Al Youm ( watch, runtime: 3:28), and Ala Mas’ouleety ( watch, runtime: 7:05) all had coverage.

Find your dark hour: Visit the Cabinet’s page here to learn about when to expect the lights to go out in your street starting from today at noon. If you find it hard to navigate the hundreds of pages published yesterday, Kelma Akhira’s Lamees El Hadidi had the patience to make the task a little easier ( watch, runtime: 11:00).

Three governorates have been spared: The Cabinet’s crisis committee has decided to exempt the Matrouh, South Sinai, and Red Sea governorates from the blackouts due to their importance for the tourism sector.

Football after sunset: The committee decided that football matches have to be run during daylight after directing pitches to avoid turning on the lights after sunset.

A torch could come in handy: You can expect to see (or not to see, as the case may be) street lights turned off, along with the outer vicinities of government buildings.

Keeping the wildlings and white walkers out: The committee is requiring the Interior Ministry to increase the presence of the night’s watch in the streets to enforce higher measures of safety and security after sunset.

THANAWEYA AMMA RESULTS ARE OUT-

The highest exam-passing rate since 2020-2021: Some 78.8% of students passed their Thanawya Amma exams this year according to the results published by the Education Ministry yesterday.

Appeals: Those who want to appeal their exam results can do so on the ministry’s online portal starting from 3 August through 17 August , ministry spokesperson Sahady Zalata said on Ala Mas’ouleety ( watch, runtime: 9:15). Masa’a DMC ( watch, runtime: 2:01) and Al Hayah Al Youm ( watch, runtime: 3:01) also had coverage.

El SISI x ABBAS-

Egyptian, Palestinian leaders meet following reconciliation talks: President Abdel Fattah El Sisi discussed Palestinian unity with PA president Mahmoud Abbas yesterday, a day after reconciliation talks between rival Palestinian factions in Egypt. We have more in this morning’s diplomacy section, below. Ala Mas’ouleety ( watch, runtime: 9:53) and Hayah Al Youm ( watch, runtime: 8:34) gave the meeting airtime.

Tags:

DIPLOMACY Education electricity energy LAST NIGHT’S TALK SHOWS

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EGYPT IN THE NEWS

Four police officers killed in North Sinai shootout

Leading the conversation on Egypt in the foreign press this morning: A deadly shooting at the national security headquarters in Al Arish, North Sinai on Sunday left four police officers dead and 21 others wounded, the Associated Press and Reuters reported yesterday, citing security sources. The shootout took place after a number of detainees seized weapons and attacked the security forces, two people told Reuters. Authorities have not yet officially commented on the incident. Egypt has fought for years against an insurgency by Islamist militants who have carried out scores of attacks against security forces.

Salvage operation for burning auto freight: Dutch authorities have begun towing the freight ship bound for Port Said that caught fire last week to a temporary location away from shipping routes and strong winds. The vessel set alight off the Dutch coast last week as it was carrying thousands of cars and electric vehicles to Egypt . ( Bloomberg | Reuters)

Tags:

North Sinai security

Also on our Radar

ADIB Egypt receives license to set up microlender. PLUS: OPay wants a digital banking license, tenders for infrastructure and industrial projects

NBFS-

ADIB one step closer to launching sharia-compliant microfinance firm: Abu Dhabi Islamic Bank (ADIB) Egypt has secured a license to launch its planned sharia-compliant microfinance company from the Financial Regulatory Authority (FRA), the Emirati lender said in a statement (pdf) yesterday. The company will offer financing of up to EGP 220k to small and micro enterprises and will launch with EGP 25 mn of paid-up capital.

A nationwide microlender: ADIB Egypt plans to set up some 200 branches across all governorates in order to reach businesses in regions with low rates of financial inclusion.

FINTECH-

OPay wants to establish a local digital bank: China-based fintech OPay plans to apply to the Central Bank of Egypt for a license to establish a digital bank, the company said i n a statement (pdf) yesterday. The digital bank will offer lending, saving, and card services alongside accepting digital, point of sale (POS), and e-wallet payments.

Background: The news comes a few weeks after the CBE published new licensing rules for digital banks. The CBE started handing out digital banking licenses last year following strong demand from lenders including the National Bank of Egypt, Banque Misr, Emirates NBD, QNB Al Ahli, and Bank ABC.

Widening its Egypt reach: Backed by SoftBank’s Vision 2 fund, OPay launched in Egypt in 2021 and has tens of thousands of POS terminals across the country. The company secured two payment facilitator licenses with Banque Misr and the National Bank of Egypt in 2022, the company’s director of business development and partnership for Egypt and North Africa, Mahmoud Khedr told us, and is looking to join the CBE’s digital payments app InstaPay.

CHEMICALS-

Ministers want int’l firms to bid to manage a new soda ash project: The government will invite international companies to bid in a tender to establish a new soda ash complex in New El Alamein, cabinet said yesterday. The facility is expected to produce 600k tons of sodium carbonate and its derivatives every year. Output will be used for local consumption and export.

INFRASTRUCTURE-

Damietta Port Authority will launch a tender by the end of September for a 10-year contract to exploit a 6.5k square-meter area for handling eco-friendly dry bulk goods, according to a document seen by Al Borsa.

TECH-

Huawei and the Information Technology Industry Development Agency (ITIDA) will create a study on the use of AI in the country under an MoU inked by the two sides last week. The study will evaluate how AI is currently employed and lay out a roadmap to develop the sector, according to a Communications Ministry statement.

Tags:

ADIB Egypt ALSO ON OUR RADAR banking Chemicals Fintech Huawei industry infrastructure ITIDA microfinance non-banking financial services OPay

PLANET FINANCE

Citigroup is gearing up for a new run of Gulf IPOs in the coming months

Citi expects fresh IPOs in the Gulf in 4Q: Citigroup expects a fresh run of IPOs in Dubai and Saudi Arabia in 4Q and 2024, the bank’s head of Middle East and North Africa capital markets, Rudy Saadi, told Bloomberg yesterday. The bank is being courted by a number of companies looking to go public in the region, he said, without disclosing names or saying when he expected them to go live. “The pipeline is solid, it’s promising for post the summer and 2024,” he said.

The potential candidates: Advanced Inhalation Rituals and Alef Education are gearing up for IPOs, Bloomberg reports citing sources it says are familiar with the matter. Dubai Roads & Transport Authority’s Taxi and parking businesses are also on the list.

It has been a good year for Gulf markets: IPOs in the region have drawn more than USD 5 bn so far this year, exceeding volumes achieved during the same period in the past decade, with the exception of 2022, the news outlet reports.

ALSO WORTH NOTING-

China heads for new stimulus as manufacturing shrinks for fourth month running: Beijing hinted at fresh stimulus measures aimed at propping up the faltering Chinese economy on the same day that data showed that manufacturing activity declined for the fourth consecutive month in July. ( Reuters)
Saudi economy slows on oil price drop, supply cut: Saudi Arabia’s economy slowed in 2Q 2023 on the back of a drop in oil prices and the country’s voluntary production cut. GDP grew 1.1% y-o-y in the April-June quarter, down from 3.8% y-o-y in Q1, according to preliminary data released yesterday. ( General Authority for Statistics, (pdf)
ECB weighs rate hike as euro-area economy returns to growth: The euro-area economy returned to growth in 2Q, with GDP rising 0.3% as inflation continued to abate. The data comes as the European Central Bank (ECB) considers its next move on interest rates in September. ( Eurostat, pdf)
Argentina secures a lifeline from IMF: Argentina has reached a staff-level agreement with the IMF that will unlock some USD 7.5 bn in aid meant to help the country avoid a default. ( IMF statement)

EGX30	17,596	+0.2% (YTD: +20.5%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,692	-0.8% (YTD: +11.6%)
ADX	9,787	+0.3% (YTD: -4.2%)
DFM	4,059	+0.6% (YTD: +21.7%)
S&P 500	4,589	+0.2% (YTD: +19.5%)
FTSE 100	7,699	+0.1% (YTD: +3.3%)
Euro Stoxx 50	4,471	+0.1% (YTD: +17.9%)
Brent crude	USD 85.56	+0.7%
Natural gas (Nymex)	USD 2.64	+0.1%
Gold	USD 2,003.70	+0.2%
BTC	USD 29,193	-0.2% (YTD: +76.6%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 2.10 bn (9.8% above the 90-day average). Foreign investors were net buyers. The index is up 20.5% YTD.

In the green: Heliopolis Housing (+4.4%), Ibnsina Pharma (+4.3%) and GB Corp (+3.2%).

In the red: Oriental Weavers (-1.2%), Eastern Company (-0.9%) and EFG Holding (-0.7%).

Asian markets largely in the green this morning despite fresh economic data from China suggesting manufacturing activity continued to weaken in July. Stocks in Europe and the US are expected to make rise at the opening bell.

Tags:

China Citigroup eurozone Financial Markets IMF Planet Finance Saudi Arabia

Diplomacy

Egypt, PA leaders discuss Palestinian unity

El Sisi x Abbas: President Abdel Fattah El Sisi held talks with his Palestin ian counterpart Mahmoud Abbas yesterday in New El Alamein, a day after the city hosted reconciliation talks between rival Palestinian factions. The two sides discussed the peace process with Israel, Egypt’s attempts to unify Palestinian groups and recent developments in Israel and the occupied West Bank, according to separate statements from both sides ( here, and here) .

Remember: Talks between rival Palestinian groups, including Fatah and Hamas, ended without an agreement on how to proceed with the reconciliation process on Sunday. Participants agreed to set up a committee to take the process forward.

Tags:

Abdel Fattah El Sisi DIPLOMACY Egypt-Palestine relations Israel-Palestine conflict Mahmoud Abbas Middle East politics

AROUND THE WORLD

Gulf states aren’t happy with Israel as far-right administration takes hardline approach in West Bank

Abraham Accords put to the test amid rising Israeli violence in the West Bank: The Israeli government’s escalating violence in occupied Palestine are inflaming tensions with Gulf states, threatening to disrupt US efforts to strengthen the region’s ties with Tel Aviv, Bloomberg reports. The UAE and Bahrain — which both normalized ties with Israel in 2020 in a series of agreements known as the Abraham Accords — have both expressed frustration with Israeli officials as the country’s far-right government accelerates settlement expansion in the West Bank and increases raids, the news outlet reports.

The US’ push for Saudi-Israeli normalization isn’t producing results: A senior Israeli lawmaker has downplayed the prospect of a breakthrough in relations with Saudi Arabia, citing difficulties in ongoing talks between the kingdom and the US, which is trying to negotiate a pact, Reuters reports.

Tags:

Around the World DIPLOMACY Middle East politics

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Going Green

The Red Sea’s sea urchin population is declining: Here’s what that means

A rapid decline in Red Sea sea urchin stocks has biologists concerned about the future of the marine ecosystem. Earlier this year, two scientific reports ( here and here) detailed observations of mass mortalities in the Red Sea waters off the coasts of Egypt, Israel, Jordan and Saudi Arabia. Declines had previously been recorded in July 2022 in the Mediterranean, leading to warnings that a migration of the event to the Red Sea could have “potentially catastrophic consequences.”

Pathogen vs pollution: The source of the epidemic is believed to be a pathogen introduced into the marine environment through the ballast water of shipping vessels, potentially stemming from a similar outbreak in the Caribbean. The spread of the mass mortalities “rules out the possibility that mortalities are caused by a local acute driver such as pollution,” according to one report. Die-off among urchins at depths of 15-20 meters indicate “that the driver of fatalities is not restricted to shallow water where environmental effects are most potent.”

The pathogen causing the mass mortalities may have been dormant in the environment for many years and for unidentified reasons has been triggered to become more hostile and violent, Dr Omri Bronstein, who leads a team of researchers at the Interuniversity Institute for Marine Sciences in Eilat, told CNN.

Vanishing act: Once in contact with the suspected pathogen, a sea urchin’s spines are paralyzed, causing visible signs of necrosis and rapid mortality. Within 48 hours a sea urchin will break down, its remains disappearing into the water or eaten by fish, which transport the pathogens to other urchins.

Gardeners of the sea: Sea urchins play an important role in Red Sea ecosystems. As one of the main consumers in shallow marine habitats, they eat underwater algaes that compete with coral reefs for space and sunlight, and help coral larvae to settle and grow. Without sea urchin intervention, sea beds would consist of fields of algae, which grows at a much faster rate than coral.

Urchins find safety in numbers: “There is a minimum critical population size that is needed in order to maintain a thriving population,” Bronstein said. For protection from predators, the species “normally form aggregations or dozens, and sometimes even in the past, hundreds of individuals … by creating this cushion of spines they provide protection for the entire group.”

The loss of the urchins could threaten usually resilient Red Sea coral: Research suggests that Red Sea coral reefs are resilient to warming waters , as we reported last year. The Red Sea could be used as a base to consider how other reefs might adapt to global warming and as a nursery for corals to restore the reefs in other areas — but not if Red Sea reefs are overrun by algae thanks to depletion of urchin stocks.

Broodstocks face regulation roadblocks: Healthy black sea urchins could be kept in captivity to regrow populations that would then be transferred back to their native environment, Bronstein told CNN. But stock declines have led to strict regulations on destructive sampling of sea urchins in the Red Sea, limiting the size of research samples and potential broodstocks.

Some attempts are being made to keep algal growth in check: Scientists have called for restrictions on practices that increase algae growth, including the use of chemical fertilizers that run-off into the sea. They’re also asking for temporary bans on fishing species that eat algae. It’s important to limit algal growth since “there is nothing we can create manually to clear the algae, even in the lab setting,” Bronstein told CNN.

Mitigating factors: There are other species that eat the algae, Dr. Mahmoud Hanafy, Professor of Marine Biology at Suez Canal University and scientific advisor to the Hurghada Environmental Protection and Conservation Association (HEPCA), told the National. Coral reefs could recover well on their own if the source of the mass mortalities is dealt with, Hanafy said. Sea urchins tend to have boom and bust years, agreed coral expert Maoz Fine at Hebrew University, telling the Times of Israel that stocks could see organic recovery.

Your top green economy stories for the week:

Swiss firm in talks with gov’t for USD 1 bn green hydrogen plant:Switzerland-based energy investment firm Smartenergy is close to reaching an agreement with authorities to establish a USD 1 bn green hydrogen facility
. Qalaa, Axens to study production of green fuels: Qalaa Holding, its waste management company ECARU, and French low-carbon energy company Axens will carry out joint studies on producing green fuel in Egypt.
EgyptAlum could be going greener: Orascom Construction and French electricity and renewables company Engie are in talks with the government to install solar power plants at two of Egypt Aluminium’s (EgyptAlum) production facilities.
Green fuel pilot this month: A ship will be supplied with green methanol at East Port Said port on 16 August for the first time.

Tags:

going green Red Sea

CALENDAR

JULY

Late July: Egypt’s first Environment and Climate Investment Forum.

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

1 August (Tuesday): EGX50 retirement date.

1 August (Tuesday): National Dialogue.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

3 August (Thursday): National Dialogue.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

16-17 August (Wednesday-Thursday): Finance Ministry to pay out the third batch of the sixth phase of the export subsidies.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

1 September (Friday): Application deadline for the Smart Green Projects initiative.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

21 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm ElSheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

2 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

21 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

2024: Standard Chartered Bank to open a branch in Egypt.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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