Gazing into the techie crystal ball

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Foreign Ministry calls for safe passage of humanitarian aid to Palestine

Good afternoon, ladies and gentlemen, and a very happy THURSDAY. We’re just about ready to slide into a very well-deserved weekend following a busy (to say the least) few days.

THE BIG STORY TODAY

The government is set to facilitate the delivery of humanitarian aid into Palestine, the Foreign Ministry said in a statement today, stressing that the Rafah border remains open despite Israel’s airstrikes on the Palestinian side of the crossing. All aid organizations looking to provide emergency and humanitarian aid to Palestine should direct their shipments to North Sinai’s Arish airport, and Egyptian authorities will take responsibility for delivering the aid across the Rafah border into Gaza, according to the statement. Meanwhile, Israeli Energy Minister Israel Katz said on X that the country will not make exceptions for aid to pass through to Gaza until Israeli hostages are freed, while hospitals in Palestine are running dangerously low on fuel, Reuters reports.

THE BIG STORY ABROAD

The Israeli-Palestinian conflict continues to take precedence in the international press this afternoon.US Secretary of State Antony Blinken arrived in Israel today, where he underlined Washington’s support for Israel but urged the nation to take a democratic approach as they exact their retribution, the Financial Times reports. Blinken’s arrival in Israel came as Saudi Arabia and Iran’s leaders spoke for the first time in years to have their own discussion about the ongoing conflict, as they consider themselves the key regional powers at play. Meanwhile, Reuters looks at the devastating humanitarian impact Israel’s continued siege on Palestine has had on the local population, while Bloomberg takes note of the impact the conflict will have on global economic growth.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

Our IMF loan review will come before the end of the year, Finance Minister Mohamed Maait said without elaborating further.
Egypt has rejected proposals to establish a safe corridor into Sinai for Palestinians fleeing Israel’s bombing campaign in Gaza.
We might be getting fresh funding for our second high-speed rail line: The Madbouly government has opened talks with international lenders for a USD 2.1 bn soft loan to help fund the second phase of the 2k km high-speed rail line between Sixth October and Abu Simbel.

☀️ TOMORROW’S WEATHER- Expect the mercury to rise to a high of 31°C in the daytime and drop to a low of 24°C in the evening, according to our favorite weather app.

Future tech trends: What we can expect from AI, Apple, and smartphones + Do you want employees back at the office? Make it feel like a hotel

2024 is going to be raining on AI’s parade: Obstacles such as deployment costs, regulations, risks, filters fishing for AI-generated spam, and in-house AI experts in companies are among the several factors that are expected to bog down AI next year, according to CSS Insights Predictions for 2024. Quick changes are making it hard for regulatory watchdogs, such as the EU’s as their legislation is regularly redrafted as AI continues to advance, while it fights on many fronts, simultaneously.

However, the report sees light at the end of the tunnel: This slowdown can be used to the advantage of companies behind AI to consider approaches to self-regulate. And by the way, the EU doesn’t completely hate AI — by 2030, 50% of businesses in one European nation intend to experiment with a 4-day business week using the tech by enhancing work tools, and thus, leave the staff to use their time to do other tasks that don’t require AI, so far…

…but there is good news for iSheep: iPhones will dominate the second-hand market, as they make 50% of the 1.3 bn devices used by the end of this year. Apple has already accounted for the drop in sales of new devices by implementing a verification system to boost consumer confidence in the brand and underscore value for money. Other methods to secure their control is to encourage customers to go for trade-ins with them rather than other third parties, according to CNBC.

Self-repair is also on the tech radar: A new technology where devices repair small dents and scratches on their own, using nano-technology where exposure to air prompts a reaction to cover up the blemish looks to come online…but in 2028. Meanwhile, Android’s struggle to keep up motivated Google to dig deeper in their own pockets to spend on their own hardware, software, and market to avoid relying on other Android producers, explains the study.

New building, who dis?Instead of the standard glass-and-steel skyscraper, employers are hoping that hotel-like office buildings with all the fixings — outdoor gardens, co-working spaces, and cozy seating areas — will actually make employees want to physically clock into work, according to Bloomberg. They envisage an area with art galleries, restaurants, and coffeeshops to attract people outside the office building and manufacture the feeling of community. According to Bloomberg, Matthias Hollwich, the mind behind the idea of work resorts, wants people walking past the buildings to think, “I want to be here.”

Will they be the thing to finally lure resistant employees back to the office? Companies have been trying to incentivize employees to return to the office ever since quarantine measures were lifted. Alas, the temptation of coffee at no charge and more lax dress codes has done little to convince the workforce to ditch working from home in favor of being at their desks, with office occupancy in the US only reaching 38% as of 2023. This has led companies across the globe to reevaluate their need for physical office space altogether, with half of those polled saying they plan to reduce their real estate needs by 2026. Others are simply rethinking their approach to office spaces — or rather, the packaging.

Employers can catch more flies with honey than with vinegar. A recent study found that strict return-to-office directives produced mixed results, and that firms mandating staff returning to the office full-time saw less than a 70% turnout. Hollwich believes that the only way to lure people back in is make them want to come back. The post-pandemic world requires transforming offices from products to services, an advisor on workspaces tells Bloomberg, making them places not just for work, but for bringing people together and fostering connections and community.

Totally Killer: A mash-up of Back to the Future and 80s slasher films

? ON THE TUBE TONIGHT-
(all times CLT)

What happens when Marty McFly has to solve a murder-mystery? If you grew up watching 80s slashers and time travel films like Back to the Future, Totally Killer is right up your alley. Has a time-travel-murder-mystery-horror movie ever been done before? Not in Hollywood. But now that we’ve watched Totally Killer, we’re not sure why not. Jamie Hughes (Kiernan Shipka, who you might know as Sabrina from the eponymous witchy Netflix series or Sally Draper from Mad Men), comes from a small town home to the Sweet Sixteen Killer, a murderer with three kills under his belt… 35 years ago. When he suddenly makes a reappearance, Jamie accidentally gets transported back to 1987 and decides to stop the murders. But how do you stop a crime before it happens? Totally Killer is a fun, self-aware mashup of the genres that pays homage to the classics, a perfect fit for Spooky Season.

⚽ The Pharaohs will play a friendly tonight… and are waiting for the outcome of the Afcon draw: The Egyptian national team will play a friendly match against Zambia at 7pm today at Hazza Bin Zayed Stadium in the UAE, in preparation for Afcon in Côte d'Ivoire, for which teams will be drawn today in the city of Abidjan at 10pm. Egypt is in the first tier with Morocco, Algeria, Tunisia, and Senegal, and as a result will avoid facing the four teams in the first round.

Key matches of the UEFA qualifiers tonight and on the weekend:

Spain v Scotland (9:45pm)
Cyprus v Norway (9:45pm)
Croatia v Türkiye (9:45pm)
Netherlands v France (9:45pm, Friday)
Austria v Belgium (9:45pm, Friday)
Portugal v Slovakia (9:45pm, Friday)
Italy v Malta (9:45pm, Saturday)

Hidden Brain is a sneak peek into the unconscious patterns that drive our behavior, inform our choices, and impact our relationships. Host Shankar Vedantam is an American writer and journalist with a focus on social sciences. In 2010, Vedantam wrote a book under the same title discussing the latest discoveries in neuroscience, psychology, and behavioral science to study the choices we make both as individuals and as a society. One of the episodes, entitled The Paradox of Pleasure, discusses addiction, and how our misunderstanding — or mis-definition — of the condition can explain why so many of us are anxious and depressed. He invites psychiatrist Anna Lembke to examine how we are programmed both biologically and sociologically to pursue pleasure. Perhaps a broader understanding of addiction can help us resist the temptations that drive these behaviors and help us lead healthier lives. You can find Hidden Brain on Apple Podcasts, Spotify, Stitcher, and Google Podcasts.

Your Face Belongs to Us demonstrates how a simple snapshot of your face can invade your privacy. New York Times tech reporter Kashmir Hill delivers an alarming account of the rise of Clearview AI — a company founded by Hoan Ton-That, an Australian computer engineer, and Richard Schwartz, a former Rudy Giuliani advisor — that claims to have developed a powerful facial recognition app capable of identifying anyone with remarkable accuracy. Supposedly, the app can access a person’s entire online life: Name, social media accounts, family members, home address, and photos based on a single snapshot of their face. Hill raises concerns about the erosion of privacy, as the app could ease everything from your run-of-the-mill online stalking through to state surveillance. Controversy surrounded the names that were interested in supporting the company, including former US President Donald Trump. On the other hand, tech giants such as Facebook and Google did not seem interested in the app release (maybe because they don’t need it), but this didn’t stop Clearview AI from presenting the app to many businesses and law enforcement agencies.

What the markets are doing on 12 October, 2023

The EGX30 rose 1.8% at today’s close on turnover of EGP 1.97 bn (9.5% below the 90-day average). International investors were net buyers. The index is up 37.01% YTD.

In the green: Alexandria Containers and Cargo Handling (+16.0%), Orascom Construction (+8.2%) and Madinet Masr (+8.2%).

In the red: GB Corp (-2.0%), Heliopolis Housing (-1.7%) and B Investments (-1.7%).

GCC investors — both individuals and institutions — really like our real estate market

Our real estate market is finding favor with GCC investors, who are poised to invest over USD 1 bn into our property market, according to Knight Frank’s report on real estate investment in Egypt, Destination Egypt (pdf). The report, which global real estate consultancy Knight Frank conducted in partnership with YouGov, surveyed the investment interest and attitudes of 258 GCC investors whose net worth ranges between USD 100k to USD 1 mn and above.

Egypt is no stranger to Gulf interest: Between 2021 and 2023, Gulf institutions poured over USD 115 bn into Egypt, according to the report. These investments were spearheaded by the UAE in 2021 and 2022, with foreign direct investment coming in from the emirates amounting to USD 5.7 bn. Saudi Arabia took the lead in 2023, recording a total investment of USD 2.1 bn.

GCC institutional investment in Egypt was also reflected in individual interest: Some 94% of GCC-based investors with over USD 1 mn in investable assets are looking to own property in Egypt’s real estate market. Moreover, 54% of the surveyed individuals expressed interest in purchasing real estate in Egypt this year.

Egypt’s real estate market is booming: Valued at an estimated USD 18 bn, Egypt’s property market is projected to grow to USD 30 bn by 2028, the report said.Moreover, real estate investment in Cairo had recorded USD 20 bn in 2022 as average property prices surged 10%, reflecting strong demand, according to Knight Frank’s Africa Horizons 2023/24 report. The high demand came on the back of the weakening of the EGP, which attracted investors who are looking to get higher returns on their purchased property.

Are recent legislative amendments helping push this appetite? Investor interest is being partially spurred by Egypt’s push to build new urban hubs, namely the new administrative capital and New Zayed City, as well as the recent amendments to the Property Ownership Act, which revoke the cap on how many properties foreigners can purchase in Egypt.

The Gulf’s taste for Egypt’s property is only growing stronger: GCC investors are willing to spend on average USD 1.1 mn to purchase property in Egypt as of 2023, per the report. Furthermore, what consolidates their interest is that 96% of GCC investors who own properties in Egypt are looking to buy second homes.

The second home market is where it’s at: The main driver behind Gulf interest in Egypt’s property market is to purchase holiday or second homes, according to Knight Frank, citing 72% of the surveyed GCC nationals.

GCC investors have taken a shine to Egypt’s coasts: The North Coast and the Red Sea fronted the destinations GCC nationals eye for holiday and beach homes. An average of 40% of the GCC investors who are looking to buy a second home in Egypt expressed interest in purchasing property in the North Coast. Additionally, 43% of the respondents who already own homes on the north coast are most likely to buy another home there.

The residential market has been gaining traction: The residential sector attracted USD 16 bn of the USD 20 bn investment poured into the market in 2022, affirming the preference of buyers for residential properties, according to the report. Some 68% of the surveyed GCC nationals showed a preference for buying residential property in Egypt, primarily homes situated in greater Cairo. Following the demand for residential properties, came demand for branded residences at 30% and retail at 29%. Between the 60% of the GCC nationals who revealed that they already own at least one property in Egypt, 36% of them with an average net worth under USD 100k said that they own one home in Egypt, while the 39% owning more than USD 1 mn in investable assets revealed that they own 2-3 homes. As for Emirati investors, the new administrative capital was their first choice for the most appealing location to purchase a residential property.

The caveat: The residential sales momentum might be coming to a halt on the back of faltering emptor confidence due to the weak EGP, the unyielding inflation, and soaring borrowing costs. Adding to the woes of the sector are the halted and delayed construction projects due to inflation resulting in hiked construction costs.

Rampant inflation and EGP depreciation threaten to stunt the sector’s growth: While the sector had a steady growth, there are challenges looming over the market. The biggest challenge is inflation, which reached a record high of 38.0% in September, triggered by the FX crunch and the successive EGP devaluations. Subsequently, “internal risks dominate the minds of 66% of GCC nationals considering an Egyptian residential purchase. At 24%, currency depreciation ranks the highest on the list of perceived internal risks,” Knight Frank said.

THE ENTERPRISE ENTERTAINMENT CALENDAR

12-16 October (Thursday- Monday): Cairo Opera Ballet Company Cinderella at Cairo Opera House.

12 October (Thursday): Disco Misr performing at El Malahy.

4-18 October (Wednesdays): Japanese tea-making workshop at AUC New Cairo Campus.

7-21 October (Saturday-Tuesday): Illustration workshop with Keem The Kid at Cocoon Cultural Center.

8-14 October (Sunday-Saturday): Turathna Exhibition, Egypt International Exhibitions Center, New Cairo.

13-20 October (Friday-Friday): El Gouna Film Festival (GFF).

13 October (Friday): The Garden Market at Merryland Park.

13 October (Friday): Oktoberfest at the Swiss Club.

14 October (Saturday): Bound Fest at Golf and Dog Park.

15-20 October (Sunday - Friday): Displaying a collection of GIFF’s films at Zayawa Cinema, Downtown, Cairo.

26 October - 3 November (Thursday-Friday): The 15th Annual Cairo International Jazz Festival at AUC’s Tahrir campus.

28 October (Saturday): DJs Kygo, Tiësto, Kung and Frank Walker concert, Giza Pyramids.

28-5 October-November(Saturday-Sunday):NEWGIZA Sports Club’s Premier Padel Event in Africa.

NOVEMBER

10 November (Friday): Tamer Ashour’s concert, Zed Park Sheikh Zayed.

11 November (Saturday): El Gouna Half Marathon 2023, El Gouna.

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

16 November (Thursday): Jim Gaffigan’s Barely Alive Tour at The Marquee, Cairo Festival City.

25 November (Saturday): Masr El Gedida Carnival at Maryland.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Q1 2024: Opening of the new developed Pyramids Plateau in Giza.

2024

JANUARY

7 January (Sunday): Coptic Christmas.

25 January (Thursday): Revolution day.

APRIL

6 April (Saturday): Coptic Easter.

9 April (Tuesday): Eid El Fitr (TBC).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

6 May (Monday): Sham El Nessim (TBC).

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day (TBC).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day (TBC).

SEPTEMBER

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

OCTOBER

6 October (Sunday): Armed Forces Day.

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