EBRD once again slashes our growth forecast for 2024

1

What We're Tracking Today

The Egyptian government is looking to launch its own version of Uber

Good morning, everyone. It’s another busy morning here in Egypt with a number of stories fighting for our attention — the EBRD has slashed our growth outlook once again, another Gulf acquisition, and a whole lotta earnings. But before we get started.

Keep your sunscreen on hand and make sure you stay hydrated as we welcome a severe heatwave that’s due to last till Tuesday. In the capital we’re in for a high of 32°C and a low of 19°C, according to our favorite weather app.

The second USD 20 bn tranche from the Ras El Hekma agreement has landed in the state’s coffers, Prime Minister Moustafa Madbouly announced at the weekly cabinet meeting, confirming what Enterprise reported earlier this week. The tranche consists of USD 14 bn fresh inflows and USD 6 bn from a previous deposit from the UAE already sitting at the Central Bank of Egypt.

The EGP has been slowly strengthening against the greenback throughout this week, having gained some EGP 0.56. The USD was trading at EGP 46.79 yesterday, down from EGP 47.35 on Sunday.

But is a weak EGP such a bad thing? An EGP that is down over 40% against the USD since March has improved Egypt’s external competitiveness and could — despite short-term economic pain — open the door for “faster economic growth over a longer horizon,” argues Capital Economics’ James Swanston.

An uptick in exports and downturn in imports should help improve our current account position, which weakened over 440% y-o-y to a deficit of USD 9.6 bn in the first half of the fiscal year. The increased prices of imported goods and services will shift consumer demand towards local goods. Meanwhile, Egyptian goods are going to be considerably cheaper in foreign markets, which should bolster stronger demand for our exports.

The tourism sector should also benefit from a weaker EGP, with Swanston arguing that the resurgence in tourism following the 2016 devaluation could be repeated as more tourists look to “take advantage of Egypt as a cheaper destination.”

WATCH THIS SPACE-

#1-A state-run ride-hailing app? The government is reportedly thinking about launching its own ride-hailing application in partnership with the private sector, Cairo 24 reports, citing unnamed sources it says have knowledge of the matter. The proposed platform would begin operations in Greater Cairo during its pilot phase, before expanding to the rest of the country.

Negotiations are underway: The Transport Ministry— via its passenger busses carrier Superjet Lines — is currently in talks with a “major” undisclosed investment company about setting up a company to run the app and will announce the official launch after a final agreement is reached.

Safety is a top priority for the proposed app: The news comes following news of the most recent case of a female passenger being attacked while using a ride hailing service. Drivers on the proposed platform will undergo an extensive hiring process and all the cars will be in constant contact with a central control room run by the soon-to-be-formed company. There are also plans to install cameras inside and outside the cars and for GPS monitors to monitor speed and location.

#2- One of the region’s largest wind projects just got one step closer to construction: The government inked a land access agreement with Infinity Power, Hassan Allam Utilities, and the UAE’s Masdar for their planned 10-GW wind farm in Sohag that will cost over USD 10 bn, according to a joint statement (pdf) released yesterday. The consortium inked the land allocation agreement with the government back in June.

What’s next? The consortium will now be able conduct the surveys and studies needed before beginning construction.

Remember: We first heard about the multi-bn wind farm during COP27 in 2022 when the companies signed an agreement for the project. The windfarm is expected to produce 47.7k GWh of clean energy every year, saving the country about USD 5 bn annually by reducing natural gas consumption.

#3- No more under the table real estate sales: The Real Estate Registration and Notarization Authority has enforced a new rule requiring foreign property buyers to submit evidence of a bank transfer that matches the price on their property, according to a cabinet statement. The regulation applies to property applications submitted from 26 March onwards. Under the rules, transactions denominated in foreign currency require prior approval from the Central Bank of Egypt.

HAPPENING TODAY-

#1- El Sisi to attend Arab Summit: President Abdel Fattah El Sisi is in Bahrain to participate in the Arab Summit happening today, according to an Ittihadiya statement. Upon his arrival in the Bahraini capital, El Sisi met with King of Bahrain Hamad bin Isa Al Khalifa, according to a separate statement that didn’t disclose what the two leaders discussed.

Shoukry will also be in attendance: Foreign Minister Sameh Shoukry has been in Bahrain for the past couple of days as he took part in the Arab League ministerial meetings that took place ahead of the summit.

** We have more on what can be expected from the summit in the news well, below.

#2- It’s all about investment at BEBA’s seminar: Egyptian Tax Authority head Rasha Abdel Aal will be giving the keynote address at the British Egyptian Business Association’s (BEBA) seminar on investment at the Conrad Hotel in Cairo today. Check out the details here.

#3- The House Budget Committee will wrap up its five-day marathon of budget talks, with the last of its 21 meetings this week to come to a close today. Up for discussion today are the budgets of the Consumer Protection Agency, the National Telecom Regulation Authority, and two other public authorities.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Want to subscribe? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

CIRCLE YOUR CALENDAR-

The Federation of Egyptian Chambers of Commerce’s pharma division will meet with the Egyptian Drug Authority next week to look into the division’s requests to raise the price of meds, division head Ali Auf told Asharq Business. “We are demanding a 50% price hike, but we expect the hike to be around 25%,” Auf added.

What do pharma players want? Local pharma companies have put forward a number of requests and proposals for new med pricing schemes before the authority in a way that reflects the new USD / EGP exchange rate post float.

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

THE BIG STORY ABROAD-

Driving the conversation in the global business press this morning: Major Wall Street benchmarks hit a fresh high yesterday as traders welcomed promising US inflation data. We have the story in this morning’s Planet Finance, below.

MEANWHILE, IN GAZA- Israel has started sending troops into Rafah in what Bloomberg believes is the beginning of a “full-blow invasion.” The Israeli military has given advance warnings to Rafah citizens as tanks and infantry make their way into the eastern part of the city bordering Egypt. The move is visibly ramping up tensions with Egypt, the European Union, and the United States.

AN ARAB ROLE IN POST-WAR GAZA? The Biden administration is in talks with Egypt, the UAE, and Morocco about their potential participation in a “peacekeeping force” that would deploy in Gaza following the war, the Financial Times writes. The three Arab nations are considering the initiative but “they would want the US to recognise a Palestinian state first,” a western official told the salmon-colored paper. Saudi Arabia has straight up rejected the idea all together.

ELSEWHERE IN GLOBAL POLITICS- You’re going to be hearing a lot about Russia-China ties in the next couple of days. Vladimir Putin is in Beijing today and tomorrow to meet Xi Jinping. The Financial Times worries in its Big Read that Moscow and Beijing represent “an economic ‘friendship’ that could rattle the world.”

PLUS- A handful of stories in global politics about which you should know:

US presidential debate: Donald Trump and Joe Biden will debate in June and September ;
Slovak PM shot: An assassin shot the Russia-friendly prime minister of Slovakia, who is now “fighting for his life” after a three-hour surgery;
Another top OpenAI official has quit.

OIL WATCH- The International Energy Agency lowered its forecast for oil demand. It now sees global demand rising by 1.1 mn bpd in 2024 — 140k bpd less than last month’s projections — pointing to weaker demand particularly in Europe. This stands in stark contrast to OPEC’s forecast (pdf) that oil demand will rise by 2.25 mn bpd in 2024.

EBRD once again slashes Egypt’s growth forecast for 2024

The European Bank for Reconstruction and Development (EBRD) has cut our growth forecast for 2024 to 3.9%, down 0.6 percentage points from its September forecast, it said in its latest Regional Economic Prospects report (pdf).

Projections for the current fiscal year took a big hit: The EBRD cut its growth forecast for the current fiscal year by 1.8 percentage points to 3.0%.

It’s not all bad news: The bank also published its first forecast for 2025, anticipating growth to pick up to 4.4% for the calendar year. Likewise, the bank expects growth to pick up to 4.0% in its first forecast for the coming fiscal year.

The rationale: The bank highlighted FX shortages and “reform uncertainty” as factors weighing on the economic outlook. “High interest rates and persistently high inflation” as well as “further escalation of tensions in the Middle East endangering investor confidence, tourism and trade flows” were also singled out as factors dampening growth expectations.

The bank’s projections for the current fiscal year are still more optimistic than most: The EBRD’s new forecast for the current fiscal year is above the World Bank’s forecast of 2.8% and is even more optimistic than the Madbouly government’s most recent forecast of the economy growing at a 2.9% clip. The IMF is in agreement with the EBRD, with both projecting 3.0% growth throughout the year ending June 2024.

But, the EBRD is more pessimistic about the coming fiscal year: Despite being more optimistic than the government and other international lenders about the current fiscal year, the bank’s 4.0% projection for the coming fiscal year is below the government and World Bank’s forecasts of 4.2% and the IMF’s growth projection of 4.4%.

THE REGIONAL OUTLOOK- The SEMED region — which spans developing countries in the southern and eastern Mediterranean, emerging Europe, and central Asia — is now looking at 3.4% growth for 2024, down 0.5 percentage points from previous forecasts. This was triggered by the slowdown in Egypt as well as that in Lebanon and Tunisia, which saw their growth forecasts slashed 2.8 percentage points and 0.6 percentage points, respectively.

Bahraini wealth fund-owned Beyon Solutions to acquire controlling stake in Egypt’s Link Development

Beyon Solutions to acquire controlling stake in Link Development: Beyon Solutions — one of the companies owned by Beyon Group, itself a portfolio company of the Bahraini sovereign wealth fund Mumtalakat — has announced it will acquire a controlling stake in Egypt-based tech provider Link Development for an undisclosed amount, Beyon Solutions said in a press release (pdf). The transaction “creates one of the largest hubs of digital transformation services in the region,” the company said.

Who's selling? VC firm A15, a major shareholder in Link Development, will be making a full exit from the firm following the transaction.

What’s next? The agreement, which was signed on 14 May, is still subject to regulatory approval in Egypt and Saudi Arabia.

What they said: “Link Development and Beyon Solutions hold strategic partnerships with key vendors such as Microsoft, AWS, and Outsystems, and the synergy created through the acquisition will augment the scope of the Beyon Solutions portfolio and enable the seamless delivery of cutting-edge digital solutions to our growing regional customer base,” Beyon Solutions CEO Nicholas Toon said.

EMAAR MISR’S BUYING SPREE-

Emaar Misr has heard back from Albro, Skytower: The shareholders of Albro North Coast for Developments and Skytower for Real Estate Development have approved Emaar Misr’s non-binding preliminary offers to snag up stakes in each of the companies, Emaar said in an EGX disclosure (pdf).

The details: Emaar Misr submitted the two offers earlier this week after its board greenlit the move. Emaar Misr wants to acquire up to an additional 75% of Albro — which would give it full ownership of the company — from shareholders via a share swap. Emaar Misr is also looking to purchase a 25% stake in Skytower in an all-cash transaction and could potentially acquire the remaining 75% through a share swap.

What’s next: Emaar Misr’s board will meet to “examine the necessary legal procedures that should be undertaken to proceed with the acquisition.”

Egypt’s cabinet to set up a unit dedicated to state-owned companies

Ministers had a busy Wednesday: The Madbouly cabinet greenlit a raft of decisions during its weekly meeting yesterday, including one that would see the cabinet set up a unit whose sole focus is state-owned companies, according to statements here and here. Among the most decisions notable are:

#1- Follow-up unit for state-owned companies: Cabinet greenlit a draft law to set up a central unit dedicated to state-owned companies — dubbed the State-Owned Companies Inventory and Follow-Up Unit — with the aim of regulating state ownership in companies that the government wholly owns or holds stakes in. The unit will be tasked with a broad range of responsibilities, including:

Implementing the state ownership policy with clear timelines and targets.
Identifying companies that the government should exit or partially divest from.
Determining exit strategies.
Proposing strategies to encourage private sector participation in specific sectors.
Developing legal frameworks to enhance the performance of state-owned companies.

At the helm: The unit will be led by a CEO with expertise in investment, project management, and other areas, supported by a team of specialists.

The cabinet is moving quickly: It was earlier this week that Planning Minister Hala El Said said that the government is looking into a World Bank recommendation for the creation of a new entity to which the ownership of all state-owned companies would be gradually transferred in an effort to streamline the implementation of state asset sales.

#2- Reduced building reconciliation fees: Ministers also approved a draft decision introducing a 25% reduction on building reconciliation fees for building owners who pay the full fees upfront. The decision seeks to incentivize the swift resolution of building violations and restore a more aesthetically pleasing cityscape.

ICYMI: The cabinet approved the executive regulations for the new Building Reconciliation Act last month after the law was ratified in December. The long-awaited law is set to make it easier for owners of unauthorized buildings built until 15 October 2023 to legalize their properties in return for paying a reconciliation fee, and to set a clear procedure for the process.

#3- A grace period for informal businesses: Cabinet approved a draft decision giving informal businesses a three-year period to submit requests to legalize their projects. This extension aims to encourage informal project owners to integrate their businesses into the formal economy.

#4- Land for desalination plants: The cabinet greenlit a draft decision to allocate 1.5 feddans in North Sinai’s Rafah for the establishment of seawater desalination plants. The move is part of a wider plan to ramp up the construction of green desalination plants in partnership with the private sector.

Remember: The government back in 2020 said it is investing some EGP 134.2 bn through 2050 to build seawater desalination plants. Egypt has some 99 operational desalination plants with a total capacity of 1.21 mn cbm / d, and has a target to increase its potable water conversion volume to 10 mn cbm / d by 2050.

Egypt’s unemployment rate falls to 6.7% in the first quarter of the year

Unemployment inches down for the second quarter in a row: Egypt’s unemployment rate fell to 6.7% of the total workforce in the first quarter of this year, inching down 0.2 percentage points from the previous quarter, according to data released yesterday by state statistics agency Capmas. Unemployment was down 0.4 percentage points compared to the same period last year.

A gender breakdown: Unemployment among men decreased to 4.4% in 1Q 2024, marking a 0.2 percentage point decline from the previous quarter and 0.1 percentage point drop y-o-y. For women, unemployment fell to 16.5% in the quarter, down from 17.7% in the previous quarter and down 2.7 percentage points from the same period last year.

Youth unemployment crept up slightly: Folks aged 15-29 accounted for 64.5% of all jobless people in 1Q 2024, marginally up from 62.4% in the previous quarter. Capmas doesn’t provide an official rate of youth unemployment.

REMEMBER- By definition, the official unemployment rate only includes people who are looking for work. The labor force participation rate — which counts everyone aged 15-64 either in work or actively looking for work — came in at 43.5%, up from 43.1% in the previous quarter and 43.0% in 1Q 2023.

DATA POINT: Egypt’s labor force now stands at 31.4 mn, up 1.0% on the previous quarter. Men make up 81% of the workforce and women make up 19%.

Concrete, EKH, ODE, Alexbank report earnings

Concrete ends FY 2023 on a “strong note”: Concrete Fashion Group (CFG) saw its net income increase 3.2% y-o-y during its fiscal year 2023 — ended 31 January 2024 — to USD 12.8 mn, the company said in its latest earnings release (pdf). The company was able to remain profitable despite an increase in financing costs — which crept up 151.4% y-o-y to USD 17.6 mn — on the back of rising interest rates, especially on FX-denominated debt.

The company’s net sales also increased 3.4% y-o-y during the fiscal year, reaching USD 150.8 mn. CFG’s sales for the year were largely driven by a strong performance from its manufacturing segment, which contributed 81% of the group’s sales.

Looking ahead: “On the local front, we are aiming to leverage the scale and brand equity of Concrete to capitalize on the vast growth offered by Egypt’s large and rapidly expanding domestic market. Meanwhile, on the global front, we are doubling down our efforts to increase our reach and export volumes supported by Egypt’s new cost competitiveness as an international manufacturing hub after the float of the EGP in March 2024,” CEO Alaa Arafa said.

EKH’S BOTTOM LINE UP IN 1Q-

Our friends at Egypt Kuwait Holding (EKH) saw its attributable net income rise 4.3% y-o-y in 1Q 2024 to USD 62.6 mn, according to the company’s latest earnings release (pdf). EKH’s top line, however, dropped 14.2% y-o-y during the period to USD 193 mn, which the company attributed to a weakening in global urea prices after hitting their peak in 2022, and the float of the EGP late in the quarter.

Looking ahead: “In 2024, we will focus on directing our main efforts towards exploring expansion in regional markets and venturing into new and diverse sectors,” said chairman Loay Jassim Al Kharafi. “Our goal remains to foster sustainable growth and optimize revenue streams in foreign currencies.”

ODE’S REVENUES INCREASE-

ODE top line rises: EGX-listed Orascom Development Egypt (ODE) saw its revenues rise 41.4% y-o-y to EGP 4.2 bn during the first quarter of the year, driven by “robust business execution across all business segments,” the company said in an earnings release (pdf).

FX losses put the company’s bottom line in the red: The company reported an EGP 984.5 mn loss during the quarter, in comparison to a net profit of EGP 384.0 mn during the same period last year. This came on the back of FX losses attributed to the devaluation and its finance costs more than doubling due to the increase in interest rates.

A new record for the real estate segment: ODE logged EGP 8.8 bn in new sales in 1Q 2024, its highest-ever for a 1Q figure and up 218.3% from 1Q 2023. Hospitality revenues were also up, rising 21.9% y-o-y to EGP 698.8 mn.

ALEXBANK’S SOLID QUARTER-

A “solid performance” from Alexbank: Alexbank’s net income rose 78.2% y-o-y in 1Q 2024 to EGP 2.1 bn, the bank said in a press release (pdf ). The lender’s total assets jumped 8.3% y-o-y to EGP 175.3 bn.

P&G Egypt taps Kareem Yassin as new VP, GM

A new VP and GM at the helm at P&G Egypt: The Egyptian arm of American multinational consumer goods company Procter and Gamble — more often known as P&G — has appointed Kareem Yassin (LinkedIn) as its new vice president and general manager, the company said in a press re lease (pdf). Yassin is a P&G veteran, having spent 18 years with the company serving many roles, most recently as the country’s head of sales.

Egyptian talk shows fixate on the Arab Summit taking place in Bahrain today

The Arab Summit taking place in Bahrain later today dominated the airwaves, with the nation’s talking heads focusing on the arrival of President Abdel Fattah El Sisi to Manama ahead of the event. Al Hayah Al Youm had coverage (watch, runtime: 1:57).

Another peace summit ahead? Arab leaders are expected to pass a draft resolution calling for an international peace conference to address the war on Gaza during the Arab Summit, former assistant foreign minister Rakha Ahmed Hassan told Masa’a DMC (watch, runtime: 9:13). Hassan added that Israel’s war on Gaza will dominate the summit’s discussions. The summit will also address a number of other regional issues, most notably the Sudanese crisis.

A second bite of the apple: Arab leaders held a Cairo Peace Summit back in October that ended without a joint communique due to EU leaders’ insistence to condemn Hamas for the escalation.

Shoukry takes his critiques of Israel’s policies to the airwaves: Foreign Minister Sameh Shoukry once again denounced Israeli statements saying that it is up to Egypt to open the Rafah crossing, calling them “incorrect” during an interview with Sky News Arabia (watch, runtime: 22:20). “Why would Israel close the crossings if not to practice a policy of starvation…as a means of war?” he questioned, adding that Israel should “shoulder its responsibility as an occupying state and allow aid into Gaza.”

What does this mean for Egyptian-Israeli relations? “Egypt’s position on the peace treaty with Israel is tied to how events develop and Egyptian interests,” Shoukry said.

ALSO ON THE AIRWAVES- Pricier metro tickets? The Transport Ministry will look into raising the prices of metro tickets this summer, following the official launch of phase 3C of Cairo Metro Line 3 on 1 July, Transport Minister Kamel El Wazir told Ala Masouleety (watch, runtime: 4:29). Prices are expected to increase 10-15%, he added. The Transport Ministry in January raised ticket prices by up to 20%.

Our hidden gems may not stay hidden for long

Egypt’s upscale tourism once again catches the attention of the int’l press, with the Financial Times out with a piece on Al Moudira, a luxury holiday retreat on the west bank of the Nile in Luxor. The Olivier Sednaoui-designed hotel’s “most striking quality, and still its ultimate selling point, is its pervasive and somehow totally credible atmosphere of bygone era glamor and the early 20th century.”

And if upscale tourism isn’t your thing, try Hurghada, Tripadvisor ’s third best nature destination in the world. The Travelers’ Choice Awards Best of the Best title is awarded to destinations that receive glowing reviews over a 12-month period. Fewer than 1% of TripAdvisor’s 8 mn listings make the cut.

NUCA to hand out plots to four industrial developers within days

MANUFACTURING-

Four industrial developers are getting their hands on land in New 6 October City: The New Urban Communities Authority will within days hand out a total of 4.6 mn-sqm plots in New 6 October City to Elsewedy Industrial Development, Polaris Parks, Arabia Holding, and Samcrete to set up four industrial parks, Al Arabiya Business reported, citing sources from the four companies. A second phase will see the four companies double each of their land allocation. Polaris Parks’ General Manager, Bassel Shoirah told the news outlet that the industrial zones are expected to draw USD 9-10 bn worth of investments over the next 6-10 years.

Remember: We first heard about Elsewedy’s plan to set up its EGP 20 bn industrial park in New 6 October City in January 2023. The company said last month it expects to break ground on the project upon receiving its plot.

MINING-

A fresh gold exploration tender? State-owned Shalateen Mineral Resources Company will launch a gold exploration tender for 5 blocks in Wadi Al Allaqi — located around 180 km south of Aswan — for local and international companies in 4Q 2024, Asharq Business reported, citing an unnamed government official.

Shalateen’s finalists to be revealed next week: Shalateen will next week announce the chosen bidders in its international gold exploration tender for brownfield sites in the Eastern Desert, Al Borsa reports, citing unnamed sources. The tender has been live for over a year now — it launched on 10 April, 2023 — after its deadline was extended time and time again due to lack of bidders.

EVS-

E-mobility company BluEV is gearing up to launch its services by the end of the year, starting with areas of Greater Cairo, VP of Corporate Affairs at Orascom Investment Holding (OIH) Manal Abdel Hamid told Al Mal. The company operates a network of lithium-ion battery swapping stations for two- and three-wheeled electric vehicles, allowing users to replace drained batteries with fully-charged ones. Through the company, users can purchase new light electric vehicles or swap out their petrol engines for batteries.

Remember: OIH became a strategic investor in BluEV a year ago, after making an undisclosed investment in the startup.

REAL ESTATE-

TMG sales more than double YTD: Talaat Moustafa Group (TMG) saw its contractual sales and reservations in the year-to-date surge 153% y-o-y to EGP 86 bn, the real estate giant said in an EGX disclosure (pdf). A large chunk of the sales came from the company’s debut project in Saudi Arabia, Benban City, which attracted some EGP 11.5 bn since its soft launch days ago.

INVESTMENT-

Egypt remains a promising market for the Tabreed “if the local currency continues to stabilize,” the Emirati company’s CFO Adel Salem Al Wahedi told Asharq Business (watch, runtime: 6:40). The district cooling firm terminated its MoU with Egyptians for Healthcare Services (EHCS) for the latter’s CapitalMed medical complex in Badr City in January due to a lack of a “business case” amid the FX instability before the float, Al Wahedi explained.

Traders send US stocks to record high after promising inflation data

One story is driving the conversation in the global business press this morning: US stocks are at an all-time high. Wall Street’s benchmark indexes — the S&P 500, Nasdaq, and Dow — all hit record highs last night as traders cheered data showing US consumer prices rising at a slower rate in April.

The numbers: US inflation cooled to 3.4% in April, coming in below analyst expectations and 0.1 percentage points below the 3.5% recorded in March, according to Bureau of Labor Statistics figures released yesterday.

Traders react: The figure reignited trader optimism that the Federal Reserve could start cutting interest rates this year. Fed chair Jay Powell has said time and time again that the central bank will not cut rates before it ensures that the country is on a sustainable path to 2% inflation — its core target. “The news on core inflation was better than expected. Retail sales also showed some deceleration from the previously hot consumer sector. Taken together, this supports a Fed rate-cut in the fall,” one analyst told CNBC.

Where the markets settled: The S&P 500was up 1.2%, hitting a record 5,308. Dow Jones was up 0.9% and the tech-heavy Nasdaq jumped 1.4%.

Stocks rise, treasuries fall. Yields on two-year US treasuries fell to their lowest level since early April.

MARKETS THIS MORNING-

Major Asian benchmarks are all comfortably in the green this morning, following Wall Street’s lead. Futures suggest both European and US markets are on track to open in positive territory at the opening bell today.

EGX30	25,316	-0.1% (YTD: +1.7%)
USD (CBE)	Buy 46.79	Sell 46.92
USD (CIB)	Buy 46.83	Sell 46.93
Interest rates CBE	27.25% deposit	28.25% lending
Tadawul	12,103	-0.2% (YTD: +1.1%)
ADX	9,021	-0.4% (YTD: -5.8%)
DFM	4,093	-1.1% (YTD: +0.8%)
S&P 500	5,308	+1.2% (YTD: +11.3%)
FTSE 100	8,446	+0.2% (YTD: +9.2%)
Euro Stoxx 50	5,101	+0.4% (YTD: +12.8%)
Brent crude	USD 82.94	+0.7%
Natural gas (Nymex)	USD 2.42	+3.1%
Gold	USD 2,395	+1.5%
BTC	USD 65,831	+6.9% (YTD: +55.7%)

THE CLOSING BELL-

The EGX30 fell 0.1% at yesterday’s close on turnover of EGP 2.6 bn (46.1% below the 90-day average). Foreign investors were net buyers. The index is up 1.7% YTD.

In the green: Qalaa Holdings (+10.3%), Eastern Company (+3.8%) and Juhayna (+2.7%).

In the red: Orascom Construction (-2.9%), Sidi Kerir Petrochemicals (-1.8%), and Mopco (-1.8%).

My Morning Routine: Mohamed Elnawawy, engineer and lawyer

Mohamed Elnawawy, engineer and lawyer: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mohamed Elnawawy (LinkedIn), engineer and lawyer.

My name is Mohamed Elnawawy. I’m a lawyer and engineer, centered around the intersection of tech-based innovation and supporting companies that want to break barriers in the gig economy and fintech sector as well as customer companies. I also reside on numerous boards, a role that sees me support governance and healthy board functions.

I have a history of being in the right place at the right time: I co-founded Egypt’s first internet service provider (ISP) InTouch back in 1992, which gave me the chance to work with new technology that was nascent and important. It was a time when the internet was just green text on the screen and the most important application was email.

We sold the company eight years later and for nearly a decade I oversaw the glorious submarine cable business of Telecom Egypt connecting Asia and Africa to Europe. I eventually became CEO of Telecom Egypt, where I had the privilege to work with 50k people across nearly 2k localities in Egypt, as we underwent the important task of modernizing network access by advancing optical communications and pursuing total telecom ambitions.

Now, in my day-to-day I support telecom-based litigation, public policy work: I have my own firm in Garden City that supports tech-related litigation, so I sometimes write reports or get cross examined by parties or tribunals. I also work on public policy issues pertaining to tech or business model needs.

My wife calls me a professional student: I graduated from law school in 2016 when I was 50 years old. I decided to pursue law as I wanted to help customers and to understand the regulation for telecoms and fintech — the next thing I knew I was graduating from law school.

Disruptive investing: I’m also an investor and I seek disruptors that fall into my four pillars — modern medicine, such as genomics and human DNA; the new business model, from regulation, to social media and blockchain; clean energy production and storage; and autonomous everything, what many people might refer to as robotics like self-driving cars or AI assistants like Siri and Alexa. Of course, in common with each of these pillars is the compounded disruption of AI and customer data serving as the fundamental source of perpetual value.

People are the source of wealth: The population of the African continent is expected to triple within the next 75 years, while other continents will see flat growth, meaning this is an area where there will be a lot of young people creating space for investment. The question will be whether the investors that take these chances from inside the continent or outside.

Law follows disruption: In our part of the world, we follow civil codified jurisdictions, meaning bill writing is very important. When disruptions appear that are important and reflect big societal issues, the law needs to change and adapt. This isn’t unique to Egypt, very few countries in the world have the law come in and the business and society follow.

Institutionalized investing could be my next step, as I’m beginning to think about moving away from being an ad hoc investor. I want to build a glorious team that I can learn from and develop with and find an energetic co-founder to do this with. It would mean being able to invest more than just my little money and make a bigger impact.

My day starts relatively early and I often read EnterpriseAM in the morning or during my commute into work. I embrace the idea of staring at screens. I don’t think it’s a problem, it just depends on what you are doing when you stare at a screen. If you’re being idle, that’s a problem, if you’re being somewhat productive and happy, that’s cool.

The office is about meeting people and nowadays even the layout of the office has changed to accommodate that, with more meeting rooms and common working areas. I love talking to my team and learning from them. I can also look out onto Cairo and try to find some of the hidden, but beautiful architecture.

I’m always walking around with a university-style notebook writing things down. I encourage my team to do the same to stay focused.

My daughter is one constant in my day as well as starting the morning with a cup of coffee. Work never ends these days, it comes home with us and is inside our phones. I’ve learnt that you can bring life with you to work, but family comes first.

When the work day is over I like to row and I also play with my daughter — having a child is a great workout.

Two pieces of advice from my parents have stayed with me: My father taught me to live with dignity and my mother taught me to be kind in the way that I live and act.

CALENDAR

2024

MAY

19-21 May (Sunday-Tuesday): Egypt International Summit for Digital Transformation and Cybersecurity.

20 May (Monday): Malaysian Palm Oil Forum in Cairo, with attendance from Malaysian Plantation and Commodities Minister Johari Abdul Ghani.

22 May (Wednesday): Egypt will host the annual meetings of Arab financial authorities, at the New Administrative Capital.

23 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25-27 May (Saturday - Monday): Techne Summit, Cairo International Stadium.

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

5 June (Wednesday): The Optimism Forum, Cairo, Egypt.

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

29-30 June (Saturday-Sunday): EU-Egypt Investment Conference.

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

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

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

23 July (Tuesday): Revolution Day (national holiday).

AUGUST

4-5 August (Monday-Tuesday): Egypt Expat Forum.

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

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

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

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

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

DECEMBER

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

EVENTS WITH NO SET DATE

April 2024: President Abdel Fattah El Sisi will visit Turkey.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

1Q 2024: The government is set to finalize the sale of the Gabal El Zeit wind farm.

February-May: The Grand Egyptian Museum could officially open to visitors.

March 2024: The USD 2.7 bn MIDOR Refinery is set to begin full operations.

May 2024: Egypt to receive USD 20 bn of Ras El Hekma funds.

May 2024: Arab Finance Ministers’ meeting at Egypt’s administrative capital.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

Mid-year: The fifth Japan-Arab Economic Forum.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

End of 2024: Shalateen Mining Company to launch a gold exploration bid in the Eastern Desert.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

Sections

About

Privacy & Support

Get EnterpriseAM daily