Hassan Allam and ACWA Power to secure USD 900 mn for 1.1 GW Gulf of Suez wind farm by the end of 2024

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What We're Tracking Today

Wolfpack sets its sights on Swvl

Good morning, and a happy Thursday to you all. All eyes in the business community are firmly set stateside after the US Federal Reserve cut interest rates for the first time in over four years. But not all the business news worth knowing about today is coming out of the US, with important investment, green energy, and manufacturing updates from Egypt ready for you to get to grips with in the issue below.

BUT FIRST- We’re now only five days away from this year’s EnterpriseAM Finance Forum, taking place on Tuesday, 24 September.

Headlining the EnterpriseAM Finance Forum this year is Investment Minister Hassan El Khatib, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda, which you can view here:

Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
Looking from the outside in — what foreign investors and strategics think about Egypt right now.
The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

** IMPORTANT NOTE — If you’ve already received your invitation on email, you *must* click through to confirm you’re attending.

PSA-

WEATHER- It’s unseasonably hot in Cairo today, with a high of 36°C and a low of 27°C, according to our favorite weather app.

The weather in Alexandria is also refusing to say goodbye to summer, with a high of 35°C and a low of 24°C.

And over the weekend, expect to see temperatures rise to 37°C on Friday in the capital before fizzling out. Temperatures for our friends on the Mediterranean will start falling as of tomorrow to around the 30°C mark.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

#1- Turkey could reroute a portion of its LNG imports to Egypt in a few years: Turkish state-run gas company Botas has inked a ten-year agreement to import LNG from French energy giant TotalEnergies with the option to redirect cargoes to Egypt and Europe, Bloomberg reports. The agreement, which will see TotalEnergies delivering some 1.6 bn cubic meters per year starting 2027, is part of Turkey’s efforts to become a gas hub on the EU’s doorstep.

We could also soon start seeing gas supplies coming from Cyprus: Egypt and Cyprus are reportedly exploring the construction of a 90-km marine pipeline to transport Cypriot gas to our Zohr field’s production facilities. Cyprus plans to start supplying 1 bn cubic feet of gas per day from its Aphrodite offshore field to Egypt between 2027 and 2028, according to unconfirmed reports.

#2- Swvl is the latest target of short seller Wolfpack Research: The short seller claimed Cairo-born, UAE-based mass transit app Swvl is a “few breaths away from bankruptcy” and in “dire financial conditions.” Wolfpack thinks Swvl’s operations will soon “grind to a halt as they run out of money.” Enterprise was unable to reach Swvl for comment by our deadline for dispatch.

The road to alleged bankruptcy: Swvl was hit with two delisting warnings from Nasdaq last year after the market value of its listed securities dipped below the required USD 50 mn, with its share price falling below the USD 1.00 mark for several months in 2023. This was mainly due to market volatility, as well as rising expenses and costs associated with the listing. The company exited several markets by selling off a number of its subsidiaries and laying off 50% of its global workforce as part of its portfolio optimization strategy. Swvl shares are currently down 68% since the company’s IPO in April 2022.

Market reax: Swvl shares were up 4.6% by the end of trading following the news to USD 3.19 a share. However, after hours trading tells a markedly different story, with Swvl shares down 1.6% at the time of writing.

#3- Gov’t to launch new investment and trade framework: The Investment Ministry is preparing a vision for investment and trade policies for 2024-2030, Investment Minister Hassan El Khatib said on Tuesday. The priorities include restoring investor confidence in state policies, promoting manufacturing for export, and enhancing the private sector’s role in the economy.

#4- Investment agreement with KSA sets the stage for uptick in bilateral investment: The signing of the anticipated Agreement on Promotion and Mutual Protection of Investments between Egypt and Saudi could see upwards of USD 10 bn in bilateral investments over the next three years, chairman of the Egyptian-Saudi Joint Business Council Bandar Al Ameri told Asharq Business yesterday.

Remember: During a high-level visit to the kingdom earlier in the week, we heard that the agreement between the two countries, which aims to help protect Saudi investors as Egypt looks to double their investments in the country, will be put into effect in two months or less after both sides sort out the necessary legislative and regulatory issues.

HAPPENING TODAY-

#1- It’s the last day of Blinken’s three-day trip to Egypt: US Secretary of State Antony Blinken’s trip has so far seen him co-chair the US-Egypt Strategic Dialogue alongside Foreign Minister Badr Abdelatty and meet with senior government officials, including President Abdel Fattah El Sisi.

The meetings — which we’ve summarized below — were somewhat overshadowed by two days of Hezbollah device detonations in Lebanon, which saw Blinken call on all parties to avoid “any actions that could escalate the conflict” in a joint press conference with Abdelatty. While Blinken did not name Israel as the party responsible for the explosions, he did note that there have been times during ceasefire negotiations when an incident “that makes the process more difficult, that threatens to slow it, stop it, derail it” has thrown a wrench in reaching a final agreement.

Talks between El Sisi and Blinken centered around advancing ceasefire negotiations in Gaza and the facilitation of humanitarian aid delivery, alongside ending Israeli transgressions in the West Bank, according to a statement from the Ittihadeya. The meeting also touched upon regional developments, including Egypt’s support for Lebanon amid the targeting of Hezbollah communications networks, according to the spokesman’s statement, and ongoing issues related to Nile water-sharing and the conflict in Sudan, according to the US State Department statement on the meeting.

Meanwhile, Foreign Minister Abdelatty stressed the importance of increasing US investment in and economic support for Egypt during yesterday’s session of the Egyptian-American Strategic Dialogue, referring to economic and trade relations as “one of the main pillars” of the partnership between the two countries, according to a ministry statement. Abdelatty also reaffirmed its demand that Israel withdraw from the Philadelphi Corridor as part of an immediate ceasefire in the war in Gaza. The dialogue participants also discussed regional developments in Sudan, Libya, and Somalia, alongside issues related to navigation in the Red Sea and Ethiopia’s construction of the Grand Ethiopian Renaissance Dam.

#2- It’s day two of BEBA’s business mission to the UK: The British Egyptian Business Association’s (BEBA) three-day Invest in Egypt: Your Gateway to Growth business mission to the UK is well underway and reports are starting to trickle in on what has been discussed.

British pharma, fruit produce, and railway parts companies have been meeting with Investment Minister Hassan El Khatib to discuss investment and trade. Fruit producer giant Blue Skies told El Khatib that it plans to expand in Egypt and railway signaling part manufacturer Park Signaling discussed the possibility of opening up factories in Egypt to serve local and regional markets.

HAPPENING TOMORROW-

Calling all local proptech startups: Tomorrow will be the last day that startups can apply to take part in the region’s first proptech acceleration program — dubbed the Egypt PropTech Challenge 2024. Organizers PROPTEX describe the accelerator in a press release (pdf) as “Egypt’s first proptech competition, designed to showcase innovative solutions in the real estate sector.” The winning startups will be announced on 25 September following a demo day.

THE BIG STORY ABROAD-

Even with everything going on in the world, the Fed’s decision to cut interest rates is topping the headlines in the international business press. US Federal Reserve chair Jay Powell announced late yesterday that the Fed had voted to lower interest rates by half a percentage point in its first rate cut since 2020, bringing the benchmark federal funds rate to between 4.75% and 5%. In its statement on the decision, the Fed noted that the decision reflects “greater confidence that inflation is moving sustainably toward 2%.”

Gulf policymakers followed suit late yesterday, with the central banks of Saudi Arabia, the UAE, and Bahrain lowering their interest rates by 50 basis points, Qatar lowering rates 55 points, and Kuwait lowering rates by 25 basis points.

** We’ve got the complete rundown of the Fed’s decision to cut rates, what happens next, and how the market reacted in our Planet Finance section, below.

WHILE IN OUR CORNER OF THE WORLD- Lebanon was hit yesterday with yet anotherset of Israeli device explosions as Hezbollah continues to reel from what has been described as the most significant penetration of the armed group’s communication networks since the beginning of the war on Gaza. The latest set of explosions were of the group’s hand-held radios, which killed 20 and injured over 450 in Lebanon's single deadliest day since Hezbollah and Israeli forces began exchanging fire over the border nearly a year ago. The episode has further heightened fears of an escalation on the Lebanese-Israeli border, with Hezbollah secretary-general Hassan Nasrallah set to give an address today.

AND OVER IN TECH NEWS- Google will not have to pay a EUR 1.5 bn fine levied on the company by the European Commission after winning an appeal, though the court accepted the commission’s assessment that the tech giant had engaged in anticompetitive practices with regard to its online advertising business. The decision marks a victory for big tech in the EU’s recent antitrust crusade just as Meta comes under scrutiny by the commission for anticompetitive practices linked to its Marketplace services, with a decision on the case — and an appropriate fine — to be decided as early as next month.

For the first time in Egypt, Somabay is thrilled to host the legendary Amy Winehouse Band live in concert. Prepare for an unforgettable evening filled with soul, jazz and iconic hits as the band performs live at Somabay’s breathtaking The Marina in The Theater Somabay on 5 October. Set against the stunning backdrop of the Red Sea, this exclusive event promises a magical night of music and entertainment in a unique setting. #TheAmyWineHouseBand #OneParadiseAllSeasons #SomabayRedSea

ACWA Power, Hassan Allam plan to secure close to USD 900 mn for their mega Egypt wind farm by year end

ACWA and HAU update investment ticket for mega wind farm: Saudi renewables giant ACWA Power and Hassan Allam Utilities (HAU) are reportedly set to secure close to USD 900 mn in financing by the end of the year for their 1.1 GW wind farm in Gulf of Suez, a source with knowledge of the matter told Enterprise.

It’s an update from earlier this year: The consortium signed a 25-year land usufruct agreement with the New and Renewable Energy Authority for the wind farm back in January, saying at the time the project had an investment value of up to USD 1.5 bn. Commercial operations are set to begin by the end of 2026, according to a statement released at the time.

ACWA and HAU have completed all studies for the project, Asharq Business reports, citing an unnamed government source. The final contracts are expected to be signed before the end of the year ahead of kicking off project implementation. Asharq’s sources said that the project will be implemented over two 550 MW phases and is expected to be fully operational by the end of 2027. Construction is scheduled to begin before the end of this year, with an estimated completion time of 30 months.

Remember: ACWA Power and Hassan Allam signed a 25-year power purchase agreement with the Egyptian Electricity Transmission Company to develop the wind farm under a build-own-operate framework back in June 2022. ACWA said at the time that the onshore wind farm will be one of the largest in the world and the largest in the Middle East.

ACWA has other plans in store for Egypt, with the company’s vice chairman Raad Al Saady saying that the company plans to invest USD 1.5 bn in a new project in Egypt earlier this week. No further details were provided.

Egypt hikes subsidized butane prices by up to 50%

Gas cylinders just got more expensive: The government has hiked the prices of butane gas cylinders as part of efforts to rationalize subsidies for fuel, according to a decision published in the Official Gazette. The price hikes came into effect yesterday morning.

The new price tags: The price of household cylinders has gone up 50% to EGP 150 ex-factory, while the price of cylinders for commercial use has increased 33.3% to EGP 200 ex-factory. Bulk gas prices have been raised to EGP 12k per ton, excluding transportation freight.

The rationale: Global price increases have driven up the cost of butane, necessitating domestic hikes to alleviate the burden on the state budget, a senior government source told Enterprise. Nevertheless, butane continues to be heavily subsidized by the state, with the actual costs standing at EGP 200 for household cylinders and EGP 450 for commercial cylinders, according to our source.

The payoff could be significant: The price hikes are expected to save the state over EGP 27 bn in annual expenditures, our source said.

There’s a steady supply of butane: An average of 1.5 mn cylinders are distributed to warehouses daily, our source said, adding that import agreements are in place to meet market demand for the foreseeable future, ensuring a stable supply in the coming months.

Mazut bills for power facilities also went up: The Oil Ministry has raised the price of mazut supplied to power generation and production facilities to EGP 6.5k per ton from EGP 2.5k, while the price for factories unchanged after their last hike in July.

Gov’t has been putting the brakes on petroleum product subsidies throughout the year: The government bumped up the price of household gas cylinders by 33% in March and raised the price of mazut for most industries by 13.3% to EGP 8.5k per ton in July. Car fuel prices were also raised by 11-15% in July.

And further hikes could be in the works: The government has been studying the possibility of raising the price of natural gas supplies for the country’s industrial sector since July, a government source confirmed to Enterprise earlier this week.

The endgame is to suspend fuel subsidies altogether: The government plans to phase out subsidies for butane and other petroleum products entirely by the end of 2025, our source said.

Egyptian edtech platform Farid secures USD 250k in pre-seed round

Egyptian edtech startup Farid secures USD 250k in pre-seed round from Saudi businesswoman Amal bint Abdulaziz Al-Ajlan, according to a press release (pdf). The funding will help the company expand its platform, develop new content, recruit employees and trainers, and expand into Saudi Arabia and the UAE.

Farid? Founded earlier this year by Mahmoud Hussein, Farid is the region’s first platform to provide “direct, one-on-one sessions for character building and mental health support for Arab children aged 3 to 18 years.” It also offers training for youth and graduates to become certified trainers in Farid’s methodology.

What’s next for Farid? The startup is looking to add workshops and introduce new curricula that “enhance children’s personal skills, nurture their talents, and support their mental health to prepare them confidently for future challenges.” It aims to increase its number of users to 20k over the coming two years.

Empowering future leaders: AUC School of Business joins forces with Beltone Holding

In February 2024, The American University of Cairo (AUC) School of Business kicked off a strategic partnership with Beltone Holding. As part of this collaboration, AUC School of Business Executive Education joins forces with Beltone Academy, the educational arm of Beltone Holding.

In its 1Q 2024 earnings, Beltone reported an 812% y-o-y boost in operating revenue, recording a whopping EGP 1.33 bn. This propels Beltone Holding to the forefront of the fastest-growing financial businesses in the Egyptian market. Meanwhile, the AUC School of Business Executive Education (ExecEd) shines with its academic and professional excellence, consistently ranked among the world’s top business schools and recognized by the Financial Times (FT).

The strategic partnership aims to support students and professionals, achieving a dynamic and multifaceted impact on both fronts. The program wields the academic expertise of instructors at ExecEd, allowing Beltone’s employees to enrich their professional capabilities through a rigorous academic program. The intricately customized programs offered by the ExecEd team highlight their focus on dynamism and agility, featuring market-centric modules that prioritize market needs and trends in classroom learning.

Olfat Amer, head of Beltone Academy, emphasizes, “We collaborated with AUC School of Business because it is one of the best business schools in the region. The ExecEd team, in particular, is agile and robust – one of the main reasons that attracted us to work with the school.”

The collaboration with ExecEd kicked off in July with a credit course comprising 11 modules focusing on numerous financial aspects ranging from the most basic principles of accounting to the complexities of writing a credit proposal. This approach ensures that by the end of the program, participants have engaged in real-life case studies that thoroughly apply all aspects of credit assessment. The modules comprise 186 training hours. Currently, 20 Beltone employees are enrolled, and upon completion, they will receive a professional certificate from ExecEd.

At Beltone Academy, both undergraduate and postgraduate students gain firsthand experience of Beltone Holding’s work culture through hands-on training opportunities. This blend of academia and practical experience, allows students to grasp the robust working environment at Beltone and apply their academic knowledge in real-world settings. As Maha Mourad, dean for undergraduate studies and administration at the School of Business, notes, “By offering our undergraduates the chance to work alongside Beltone's seasoned professionals, we're not just enhancing their learning — we're helping to sculpt the financial problem-solvers and innovators of tomorrow.”

The partnership between Beltone Holding and AUC School of Business represents a comprehensive blend of intellectual and practical experiences. This cooperation falls in line with the schools’ goal to prepare both students and professionals for the dynamic nature of the ever-evolving job market. Mohamed Abdel Salam, executive director of AUC School of Business ExecEd states, “Our alliance with Beltone is built on a shared vision of creating an agile and knowledgeable workforce. We aim to offer a transformative educational experience that extends professional growth far beyond the classroom.”

Qalaa Holdings sees revenues, income rise in 1Q 2024

A good start to the year for Qalaa Holdings: Qalaa Holdings saw its net income after minority interest jump to EGP 7.2 bn up from the EGP 73 mn recorded during the same period last year, according to the company’s latest earnin gs re lease (pdf). Qalaa’s revenues recorded a 45% y-o-y jump in the same period to EGP 37.6 bn, “mainly driven by [Egyptian Refining Company’s] USD-denominated revenue, and was further boosted by broad-based growth across most subsidiaries.”

Driving the growth: This significant rise in the company’s net income was primarily attributed to a EGP 9.7 bn gain associated with the Financial Holdings International (FHI) settlement — during the quarter, Qalaa settled a bulk of its liabilities and those of its subsidiaries owed to FHI.

Remember: Qalaa is on a mission to try and reduce its debt levels, with the company’s consolidated debt standing at EGP 111.2 bn at the end of the first quarter. Of the company’s total consolidated debt, 72.5% is related to its Egyptian Refining Company (ERC) — a multi-bn USD greenfield refinery in Mostorod funded by debt that Qalaa has since struggled to pay off despite its businesses achieving good returns.

Onward looking: “While the domestic economy continues to go through a challenging period, where the difficulties faced at home are further exacerbated by the current state of global macroeconomic uncertainty as well as the armed conflicts taking place around us, Qalaa remains well-positioned to overcome these challenges, thanks to our resilience, flexibility, and efficiency, which are ingrained into the core of our DNA,” Qalaa founder and chairman Ahmed Heikal said.

Qalaa’s efforts to settle its debts ramped up in 2Q: The company's next quarterly earnings release will reflect it settling EGP 3.3 bn worth of debt with a group of local banks in exchange for a 17.7% stake in its Taqa Energy subsidiary. Also reflected, will be Qalaa’s USD 28 mn debt buyback program that’s part of a wider plan to retire some USD 430 mn in foreign-currency debt.

FRA’s Mohamed Farid highlights how Egypt’s regulator brought new instruments + depth to the market

FRA’s Farid on introducing SPACs, carbon credits, and more to the Egyptian market: Since assuming his position as Financial Regulatory Authority chairman in August 2022, Mohamed Farid has overseen the introduction of a handful of new financial instruments, as well as regulatory overhauls designed to create a deeper, more digitally-enabled market in Egypt. Speaking at EFG Hermes’ annual conference in London last week, Farid touched on the different regulatory changes the authority has introduced over the past several years and the changes seen across the country’s IPO market, ins. sector, and the digitization push.

From EGX to FRA: Transitioning from the bourse to the FRA allowed Farid to bring an inside perspective on the regulatory priorities for the agency, including facilitating the process for companies to IPO on the bourse, he said. “We discovered that in Egypt, for companies to get fully ready to be able to trade their shares on the market through a complete IPO, they need lots of time,” Farid said. To facilitate that process and encourage the introduction of new paper on the EGX, the FRA introduced in September 2022 amendments to listing rules that allow companies to temporarily list on the EGX while seeking regulatory approvals from the FRA. The amendments also granted companies a longer window to meet listing requirements.

The FRA also recently introduced changes to the listing rules for special purpose acquisition vehicles (SPACs), Farid noted. The regulator had first greenlit a proposal to allow SPACs in Egypt back in 2021. In introducing SPACs to Egypt, the FRA looked at the model introduced in the US and modified it to fit the local market. “We took a slightly different approach whereby the traditional model of SPACs that’s in the US is allowed, but there’s also a complementary model that also exists in Saudi and the UAE that introduces an SME platform,” Farid said. This setup allows VC funds themselves to get listed.

The rationale: “If we allow companies to be listed with a minimum capital requirement of EGP 1 mn, and we’re allowing investors to take this risk, it doesn’t make any sense for us to not allow VC funds to be listed as well,” Farid said. The new model is “named SPACs for marketing purposes but it’s more about listing private equity and venture capital funds” and eventually create a path for limited partners (LPs) in startups to have a clear exit scenario, he said.

The Egyptian SPAC model takes heed of multinational institutions’ guidance that encourage the increased transparency that comes from listing a VC fund, Farid said, pointing to research from the European Bank of Reconstruction and Development, among others. “These institutions found that the performance of listed private equity and VC firms is by far superior to unlisted or ‘opaque’ peers,” Farid said.

This model is also designed to “enable different asset management firms with the aim of investing in startups and companies with newly developed ideas,” while still providing investors with a clear exit mechanism, Farid said.

Besides SPACs, the introduction of a voluntary carbon market with carbon credit trading was another major development in the Egyptian market. Egypt officially launched Africa’s first carbon market last month, which Farid stressed made Egypt “one of the very few [countries] that decided to put in place a full-fledged regulatory framework” for the market and to trade carbon credits. Egypt already had several different green and sustainability-linked debt instruments, including green bonds, brown bonds, and transition bonds, but “another sweetener that adds returns to those types of investments is to issue carbon credits,” Farid said.

Carbon credits: Commodities or financial instruments? The idea of launching a regional platform for carbon credit trading originated at COP27, which Egypt hosted in Sharm El Sheikh, Farid said. “But the difficulty was that we needed to decide how to treat carbon credits in a regulatory sense,” he said. The US’ model considers carbon credits as a commodity, whereas in the EU, they are considered to be financial instruments. “For the credits to be treated as a commodity, you need to not see significant deviations in the prices — but in reality, there were huge price differences.”

Not all carbon credits are born equal: “A carbon credit issued by a project that only put a filter on a factory chimney to reduce CO2 had one price, while another carbon credit that was issued for slashing CO2 in addition to addressing other SDG components — such as women’s empowerment, poverty alleviation, etc. — had a much higher price. Accordingly, given that you have this significant price deviation, we had to treat it as a financial instrument, not a commodity, and we had to create the regulations accordingly,” Farid explained.

“As it currently stands, we have 16 projects that are registered with the FRA with carbon credits eligible for trading,” Farid said. These projects — which are studied and verified and have the proper ISO certifications related to carbon credits — are primarily in the agriculture space, Farid noted. Out of the 16 projects currently listed, 15 of them are agricultural projects “where farms have invested in swapping out their diesel-powered machinery to run on solar panels” and introducing other sustainable practices, he said.

It’s not just Egyptian projects: The 16th project currently registered with the regulator is from India, Farid said, noting that the real idea behind launching Egypt’s carbon market “is to create a regional platform where Egypt, Morocco, Tunisia, Kenya, and other countries can register these projects and start seeing an aggregated trading platform for these players in the market.”

Blinken’s meetings with El Sisi, Abdelatty dominated the airwaves

Yesterday’s talk shows focused on US Secretary of State Antony Blinken’s visit to Egypt to meet with President Abdel Fattah El Sisi: During his discussion with Faten Abdel Maaboud on her program Salaat El Tahrir, regional security analyst Mahmoud Mohieldin highlighted the significance of Blinken’s visit amid escalating violence in the region, calling it “a message to Egypt that the strategic cooperation between the two countries is ongoing and is not affected by developments in the Middle East.” Mohieldin added that this was especially evident in the fact that developments in Egyptian-Israeli relations during the Gaza war have not impacted Egyptian-American relations. Mohieldin went on to say that the visit reaffirms that this relationship is not influenced by oscillations in negotiations and tensions (watch, runtime: 9:17).

The State Department’s regional spox joined Ahmed Moussa to discuss the visit: Expanding Egypt-US cooperation was one key goal of Blinken’s trip to Egypt, the State Department’s regional spokesperson Samuel Warberg said during an appearance on Ala Mas’ouleety with Ahmed Moussa (watch, runtime: 2:48). Warberg focused his discussion with Moussa on the war in Gaza, saying, “The defense, military, and security relations between the United States and Israel are not new, nor did they begin after the events of October 7. They have extended for more than 75 years with successive US administrations, both Republican and Democrat. These relations are not solely about Hamas but also about attacks from neighboring countries like Iran, the Houthis, and Iraq.” He emphasized that ongoing efforts to end the war in Gaza in conjunction with Egypt are not connected at all to considerations around the upcoming US elections (watch, runtime: 2:54).

“Every inch of land in the Gaza Strip is Palestinian land”: In response to a question from Moussa about US concerns over Israeli forces’ presence in the Philadelphi Corridor, Warberg said that “for months, we’ve heard from the White House and the US Secretary of State about core US principles, including opposition to any Israeli occupation in Gaza. Every inch of land in the Gaza Strip is Palestinian land. Therefore, the Philadelphi Corridor is also part of Palestinian territory. In general, the US is against any reduction or shrinking of Palestinian lands” (watch, runtime: 2:20).

Will the mediation by Egypt, Qatar, and the US lead to a truce between the two sides? Warberg answered by referring to Blinken’s statement in a press conference about “needing to see political will” from both sides, explaining that the US secretary of state was referring to the fact that Hamas had agreed on nearly 95% of the details for a ceasefire agreement but that both sides needed to be willing to make agreement. He emphasized that the US, Egypt, and Qatar are acting as mediators between the parties, but that ultimately the mediators cannot impose their stance without sufficient political will from both sides (watch, runtime: 1:53).

Turkey’s Beko has officially set up shop in Egypt with new USD 100 mn factory. PLUS: SEIC + Abu Qir Fertilizers, Beko, EgyptAlum, Zilla Capital, City Lab + Cairo Clinical Lab

MANUFACTURING-

#1- Turkish manufacturer Beko has officially set up shop in Egypt: Turkish home appliance manufacturer Beko has opened its first Egyptian home appliance factory in Tenth of Ramadan city at a cost of USD 100 mn, in what Prime Minister Moustafa Madbouly described as a success for the government’s strategy to attract major companies to Egypt, according to a cabinet statement. The factory was built by Hassan Allam Construction.

Beko is one of three big international companies that government wanted to attract, with the other two being China’s Haier — which inaugurated its eco-industrial park in Tenth of Ramadan City in May — and subsidiary of Germany’s Bosch, BSH Home Appliances, which will soon open its EUR 30 mn oven factory in Tenth of Ramadan City soon, according to Madbouly.

The golden license bears fruit: Beko is among a number of companies — including also BSH and Haier — that have received golden licenses to operate in Egypt, with Madbouly adding that the land for Beko’s complex was provided by direct allocation, allowing their factories to be completed faster.

All part of a plan to become a regional hub for home appliances: International companies have lately turned to Egypt to manufacture and export home appliances, with several companies moving in the past few months to set up factories in the country. Although there are no official figures, market studies suggest the electronic appliance market in Egypt reached EGP 126.7 bn in 2021, growing 24.5% y-o-y.

#2- EgyptAlum has four new projects in the works: EGX-listed Egypt Aluminum (EgyptAlum) is looking into setting up four new projects with some USD 6 bn, according to an EGX disclosure (pdf ). The company is in talks with banks and local and foreign investment over potential partnerships for the new projects, CEO Mahmoud Agour told CNBC Arabia.

M&A-

#1- SEIC sells 1% stake in Abu Qir Fertilizers: The Saudi Egyptian Investment Company (SEIC) — a wholly-owned subsidiary of Saudi Arabia’s Public Investment Fund — has sold a 1.0% stake in Abu Qir Fertilizers for nearly EGP 556 mn, according to a company disclosure (pdf). After the transaction, SEIC and its related group now own 20.9% of the company.

#2- That’s a wrap on City Lab’s acquisition of Cairo Clinical Lab: City Lab and Cairo Clinical have inked a final investment agreement that will see the City Lab acquire Cairo Clinical Lab in a long-awaited agreement, according to a company press disclosure (pdf). Following Financial Advice Corporate Transactions’ (FACT) appointment as an independent financial advisor to provide a second opinion on Cairo Clinical Labs’ value, the two sides agreed on a price tag of EGP 59 mn.

EXPANSION-

Zilla Capital is stepping into the Saudi market: Investment bank Zilla Capital plans to launch its first project in the Saudi market, an asset management company, by the end of November, Chairman Wael Ziada told Asharq Business. The firm is looking into launching an investment fund in Egypt next year, with the final decision expected to be taken in less than a month.

Fed kicks off easing cycle with a bang

The US Federal Reserve cut interest rates by half a percentage point, marking the start of its first easing cycle since the pandemic, according to a statement out yesterday. The Open Market Committee’s meeting voted 11 to 1 to reduce the federal funds rate to a range of 4.75% to 5%. Additional rate adjustments will be considered by policymakers based on “incoming data, the evolving outlook, and the balance of risks,” according to their statement.

Powell says nothing is set in stone: The Fed will respond flexibly to evolving economic conditions, chair Jay Powell said at a presser after the meeting, the Financial Times reports. Powell indicated that rates are not set on a “fixed path” and that the Fed may adjust its approach if inflation remains persistent. He also emphasized the central bank’s readiness to act if unexpected weaknesses in the labor market emerge.

What to expect: The Fed’s updated projections include a further 50 bps rate cut by year end, another 100 bps in 2025, and a final 50 bps in 2026, bringing the benchmark rate to 2.75%-3%, according to its median forecast (pdf). The Fed has two meetings left this year, in November and December, implying two 25 bps rate cuts in each of the meetings.

Is the Fed playing catch-up? The Fed’s 50 bps reduction contrasts with the Fed’s assessment that the US economy is in a good place, Egyptian-American economist Mohamed El Erian said in an X post. “Today's 50 bps move is a catch-up for not having reduced rates in July.”

Market reax: The stock market responded positively, with the S&P 500, Dow, and Nasdaq Composite all posting gains before easing to close slightly down, the Wall Street Journal reports. Treasury yields also dipped after initially rising to 3.706%, settling at 3.685%.

MARKETS THIS MORNING-

Asia-Pacific markets are also reacting positively to the start of the era of monetary easing, with Japan’s Nikkei leading gains. Hong Kong’s monetary authority followed the Fed’s lead with a 50 bps rate cut, with Hang Seng futures pointing to a flat open after markets return to trade on Thursday following a day off yesterday. Wall Street futures are also up as traders continue to weigh the Fed’s moves yesterday.

EGX30	30,342	+0.6% (YTD: +21.9%)
USD (CBE)	Buy 48.49	Sell 48.63
USD (CIB)	Buy 48.48	Sell 48.58
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,921	+0.3% (YTD: -0.4%)
ADX	9,423	-0.1% (YTD: -1.6%)
DFM	4,390	-0.1% (YTD: +8.1%)
S&P 500	5,618	-0.3% (YTD: +17.8%)
FTSE 100	8,254	-0.7% (YTD: +6.7%)
Euro Stoxx 50	4,835	-0.5% (YTD: +6.9%)
Brent crude	USD 73.65	-0.1%
Natural gas (Nymex)	USD 2.30	+0.5%
Gold	USD 2,598.60	+0.2%
BTC	USD 60,378.90	+0.1% (YTD: +42.7%)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 2.9 bn (25.3% below the 90-day average). International investors were the sole net sellers. The index is up 21.9% YTD.

In the green: Ezz Steel (+9.1%), EFG Holding (+3.2%), and Beltone Holding (+2.2%).

In the red: Palm Hills Development (-2.0%), Egyptian Kuwaiti Holding -EGP (-1.2%), and Madinet Masr (-1.2%).

My Morning Routine: Dalia El Gabry, VP and country chair of Shell Egypt

Dalia El Gabry, VP and country chair of Shell Egypt: 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. This week, we’re speaking with Dalia El Gabry (LinkedIn), VP and country chair of Shell Egypt.

I'm Dalia El Gabry, and I have the privilege of leading Shell Egypt as vice president and country chair. My journey in the energy sector spans over two decades, driven by a passion for sustainability and economic development. Every day, my focus is on strengthening Egypt’s energy sector, while pushing for social and economic progress. It’s a role that not only challenges me, but also allows me to create meaningful change for our partners, customers, and the communities we engage with.

In simple terms, I make sure Shell Egypt is running smoothly and playing a key role in shaping the future of energy in the country. Whether it's aligning with Shell’s global vision for energy transition or working on local energy needs, my job involves balancing strategic planning with real-world impact. I collaborate with our teams and engage with stakeholders to ensure that we’re always moving forward, contributing to Egypt’s energy transition goals while delivering value for everyone involved.

Shell’s story in Egypt goes back more than 100 years, which is something I take great pride in. Our mission has always been to provide reliable and accessible energy, but it’s evolved to meet today’s challenges. We’re not just focusing on oil and gas anymore. We’re also investing heavily in cutting-edge renewable technologies to meet the growing demand for cleaner energy solutions, both globally and here in Egypt. Our goal is to help the country transition to a more sustainable future, while ensuring energy remains affordable and reliable for everyone.

I’m an early riser. After waking up, I make sure to kick-start my day with a small snack and a much-needed cup of coffee. I’ll do a quick check of my emails to get a sense of what the day looks like, and then I head to work. On my way to the office, I make the most of my time by reading EnterpriseAM Egypt — it has become a daily ritual for me to catch up on the latest news and updates before the day picks up speed.

My typical workday usually runs from 9am to 6pm, and it’s a mix of meetings, calls, and strategic discussions. I’m often moving from one thing to the next, so it’s always dynamic. Lately, my schedule also includes attending panels and after-work networking events, which is a refreshing change and helps me stay connected with others in the industry. It’s definitely busier than my previous routine, but I enjoy the variety it brings to my day.

The one thing I never compromise on is taking the first 15 minutes of my morning to map out the day ahead. It’s a small ritual that makes a big difference, giving me the clarity to focus on my tasks and handle any unexpected challenges that might come up. It’s my way of setting the tone for a productive day.

I rely heavily on my calendar and to-do list — they’re my daily guides. I check them religiously at both the start and end of the day to stay on top of things. That way, I’m always aware of what’s next and can adapt quickly if something changes. Staying focused comes down to being clear about my priorities and what needs my attention most.

Work-life balance is definitely a work in progress for me. I’ve gotten much better at achieving balance now compared to my earlier career years, especially in my 30s and 40s. But work-life balance is different for everyone. It took me some time to realize that prioritizing health, community, and wellness are just as important as work. Once I embraced that, things improved. That said, I still have to fight old habits.

I’m a fan of the simple things in life — like spending time with my family and watching TV. After a hectic day or week, there’s nothing better than settling down with some popcorn and a good movie. Those moments of unwinding at home really help me recharge.

I love older Arabic movies like Aelit Zizi and Eshaet Hob, along with feel-good classics like Mamma Mia and The Intern. I’m also always up for a good documentary. After a long day, there’s something comforting about revisiting those familiar favorites.

The best piece of advice I ever received came from my mentor when I worked with Shell in South Africa 15 years ago. Moira Bowie, who was my line manager, always reminded me that my integrity is my strongest asset and to stay true to myself. That advice stuck with me throughout my career. Knowing what your strengths and areas for improvement are helps a lot along the journey.

CALENDAR

2024

SEPTEMBER

18-20 September (Wednesday-Friday): BEBA mission to the UK, London.

20 September (Friday): The Egypt PropTech Challenge 2024.

24 September (Tuesday): Enterprise Finance Forum, Cairo, Egypt.

25 September (Wednesday): ITIDA’s DevOpsDays Cairo 2024 conference.

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

25-28 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

29 September (Sunday): AmCham Egypt Real Estate Conference.

30 September (Monday): Ban on sugar exports expiration.

30 September (Monday): Portfolio Egypt 2024, Nile Ritz-Carlton, Cairo.

30 September (Monday): Egypt Business Forum, Paris.

OCTOBER

1 October (Tuesday): Egypt Business Forum, Marseille.

1-3 October (Tuesday-Thursday): Cairo Sustainable Energy Week, Cairo, Egypt.

5-8 October (Saturday- Tuesday): Techne Summit Alexandria, Biblioteca, Alexandria.

6 October (Sunday): Armed Forces Day.

7-11 October (Monday-Friday): Egyptian-Romanian Business Council Forum, Bucharest, Romania.

10-12 October (Thursday-Saturday): Egy Health Expo, Egypt International Exhibition Center, Cairo.

10-12 October (Thursday-Saturday): The FinExpo Conference and Exhibition, Cairo.

10-12 October (Thursday-Saturday): The EVs Electricity Egypt Expo and Conference.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

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

20-22 October (Sunday-Tuesday): Mediterranean Offshore Conference (MOC), Alexandria, Egypt.

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

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

12-15 November (Tuesday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

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

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

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

EVENTS WITH NO SET DATE

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

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

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.

2025

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

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.

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