Good morning, friends. We have another brisk issue for you this morning as we ring in another cold winter day.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 17°C and a low of 12°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 17°C and a low of 11°C.

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

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we took a deep dive into Fitch Solutions’ research unit BMI’s latest report on Egypt’s incipient auto sector recovery. Check out the full story here.

WATCH THIS SPACE-

#1- Trump’s remarks on Gaza could derail hopes that traffic will return through the Red Sea, shipping insiders tell the Financial Times. There is a “risk that the Houthis are not just going to sit tight” and may restart their attacks on passing vessels as the US president’s comments may lead to the unraveling of an already fragile ceasefire, commodities shipping group Norden head Jan Rindbo told the salmon-colored paper.

Remember, thehoped-for post-ceasefire resumption of traffic through the Suez Canal has yet to materialize, with only a trickle of US- and UK-linked ships passing through the Red Sea safely after Yemen’s Houthis announced they would only target Israeli-linked vessels following the ceasefire agreement between Israel and Hamas. The small number of ships is just a drop in the bucket compared to the traffic levels the canal was used to, with shipping giants such as Maersk, MSC, and Mitsui OSK still avoiding the Red Sea citing security risks.

#2- South Sinai is looking to pull in EGP 500-600 bn in industrial investments, with a focus on Abu Rudeis and Abu Zenim due to their mining potential, Governor Khaled Mubarak told Asharq Business. Both foreign and local investors will be offered plots to encourage investment, he added.

PROJECT UPDATE-

Checking on Ras El Hekma with Modon: Prime Minister Moustafa Madbouly met with the Chairman of UAE’s Modon Holding Jassem Al Zaabi and CEO Bill O'Regan to review the development of Ras El Hekma’s master plan, according to a cabinet statement. Modon Holding has made significant progress in developing the master plan for Ras El Hekma since it was contracted for the job last October, Al Zaabi said.

Remember: Abu Dhabi wealth fund ADQ tapped portfolio company Modon Holding to be the master developer on its landmark USD 35 bn Ras El Hekma project last year. Modon will not only take up the responsibilities as the master developer for the 170 mn sqm project, but it will also develop the first 50 mn sqm phase of the city.

HAPPENING TODAY-

#1- Inflation to continue its steady decline toward single digits? Capmas and the Central Bank of Egypt (CBE) are expected to publish inflation data for January later today. Annual urban inflation dropped 1.4 percentage points to 24.1% in December, marking a two-year low.

The polls are already in, with Capital Economics seeing headline inflation slowing 1.1 percentage points y-o-y in January, coming in at 23.0% for the month, it said in a note.

However, Capital Economics thinks the drop isn’t big enough for the CBE to start cutting rates at its next meeting, set to take place on 20 February. Instead, the firm is penciling in April for the first rate cut of the year as the most likely scenario. An expected drop in inflation in March as the impact of the EGP float fades underpins this forecast.

#2- Abdelatty is in Washington: Foreign Minister Badr Abdelatty flew to the US capital yesterday to meet with a number of senior officials and congress members in efforts to strengthen ties between the two countries, boost strategic partnership, and discuss regional developments.

#3- El Khatib is in Spain to drum up investments: Investment Minister Hassan El Khatib landed in Madrid yesterday for a visit that will see him meet Spanish officials and businessmen in efforts to boost trade between the two nations, according to a ministry statement. El Khatib will also meet representatives from major Spanish companies —

in the energy, hospitality, hydrogen, engineering, healthcare, and aviation sectors — to discuss potential investments in the local markets.

#4- AmCham is hosting El Wazir: Transport and Industry Ministry Kamel El Wazir will be speaking at AmCham’s monthly luncheon today. The event — held under the theme of Driving Economic Growth: Unveiling Egypt’s Industrial Policy — will be held at the Waldorf Astoria Cairo Heliopolis Hotel at 1:30pm.

CIRCLE YOUR CALENDAR-

Egypt is hosting an emergency Arab summit on 27 February to discuss the latest developments in Gaza, the Foreign Ministry said in a statement yesterday.

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

CORRECTION- In yesterday’s issue of EnterpriseAM Egypt, we mistakenly said that ABC Bank was part of a banking syndicate that arranged a USD 75 mn loan for Cheiron Energy. We should’ve instead said that Saib Bank was part of the syndicate. The story was amended on our website.

THE BIG STORY ABROAD-

Trump’s trade war is back in the spotlight this morning, as China’s retaliatory tariffs on US imports take effect, while Trump unveils more measures are on the way.

Getting even: The US President told reporters that he plans to announce additional 25% tariffs on all steel and aluminum imports. More tariffs are to be announced later this week and take effect almost immediately, as Trump vowed to match any reciprocal tariffs levied by trade partners. The escalation comes hours after China’s retaliatory tariffs — targeting USD 14 bn of US imports — took effect. (Reuters | Bloomberg | New York Times | FT)

The Super Bowl LIX ended with the Eagles taking home the trophy with a 40-22 win against the Kansas City Chiefs. The Eagles kicked things off strongly, dominating the game throughout the first half with a score of 24-0, before the Chiefs started to pull their weight and scored their first touchdown during the third quarter of the game. (AP | Reuters)

Kendrick Lamar’s halftime show made quite a lot of buzz — his 13-minute performance featured Samuel L. Jackson in an Uncle Sam outfit, SZA, and Serena Williams. And the icing on the cake? One protester displayed the Palestinian and Sudanese flags during the performance before being tackled by security. (New York Times)

CLOSER TO HOME- An Israeli delegation is in Qatar to continue ceasefire discussions — the two sides will touch on the nitty gritty of the ceasefire agreement. This comes as Israel withdraws its troops from the Netzarim corridor. (BBC | Reuters)

OVER IN BUSINESS WORLD- French President Emmanuel Macron said EUR 109 bn worth of investments are to be announced during the Paris AI summit, which kicks off today and will see participation from Abu Dhabi’s MGX and Canada’s Brookfield among other big names in the tech world. (FT | Reuters)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We look at the CIT Ministry’s efforts to close the tech talent gap with the Digital Pioneers initiative.

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