Good morning, friends, and a happy Friday to you all. Before you dive into today’s issue and take any of our outing suggestions, make sure you gear up for the heatwave taking over the weekend.

Cairo’s coworking scene has been on the up-and-up, with more options catering to every need available than ever. Whether you’re a tech entrepreneur looking to feed off the energy of your ilk, a digital nomad passing through the city of a thousand minarets, or a local professional tired of doing business in the sanctuary of your own home, the perfect fit has never been easier to find.

LAST WEEK IN 3 MINS-

PRIVATIZATION WATCH-

Fresh privatization targets for the new fiscal year: The Madbouly government expects to raise USD 4-5 bn from selling stakes in 11 state-owned companies during the fiscal year 2025-2026 as a part of its privatization program. Saudi and Kuwaiti transactions under the privatization program could be announced soon.

ECONOMY-

IMF kicks off fifth review of Egypt’s loan program: “A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week,” IMF Press Officer Angham Al Shami said in a note seen by EnterpriseAM. We were told by three government sources that the preliminary mission from the Fund is set to touch down in Egypt this week to begin reviewing data ahead of a two-week visit from a full mission. The government expects to unlock a USD 1.3 bn disbursement from the review, potentially in June.

#3- Non-oil private sector activity continued to decline in April, which non-oil firms attributed to declining demand amid weaker consumer spending, according to S&P Global’s latest Purchasing Managers Index (PMI) report (pdf). Egypt’s headline figure dropped 0.7 percentage points to 48.5 in April, falling further beneath the 50.0 mark that separates contraction from growth and marking Egypt’s lowest PMI reading in 2025 so far.

#4- Net foreign reserves rose to USD 48.1 bn at the end of April 2025, marking a USD 387 mn increase from March, according to data from the Central Bank of Egypt. Net foreign reserves continued to increase m-o-m for the 32th consecutive month.

#5- Egypt’s current account deficit widened to USD 11.1 bn in 1H FY 2024-2025, up from USD 9.6 bn in the same period last fiscal year, driven by an increase in the trade deficit and a drop in Suez Canal revenues.

#6- A slower reform momentum and a strained geopolitical environment have dampened the IMF’s outlook for Egypt’s 2025 growth prospects, the Fund said in its latest Regional Economic Outlook (pdf), adding that “economic activity is expected to pick up but remain modest” this year. The cascading effects of the war on Gaza and a heavier debt service burden have further “complicated” Egypt’s post-pandemic fiscal consolidation efforts, the report noted.

AUTOMOTIVE-

The government is putting together new incentive criteria and additional benefits for automakers participating in the Automotive Industry Development Program (AIDP) in a bid to boost local component rates to 65% from 45%. The revised incentive framework introduces a new methodology for calculating local component requirements and value-added metrics.

The revised program could include new customs concessions to speed up the import of inputs for local manufacturers and set minimum vehicle production targets.

LOGISTICS-

AD Ports to set up industrial and logistics park in East Port Said: Abu Dhabi wealth fund ADQ-owned AD Ports Group has inked a 50-year renewable usufruct agreement with the Suez Canal Economic Zone (SCZone) to develop and operate an industrial and logistics zone spanning 20 sq km in East Port Said.

ENERGY-

Another step toward electricity market liberalization: The newly independent Egyptian Electricity Transmission Company (EETC) has approved five private renewables players for electricity sale licenses, a government source told EnterpriseAM. The companies operate five solar and wind plants, each with a 100 MW capacity.

AROUND THE WORLD IN SEVEN DAYS-

This week's news painted a volatile global landscape, with Israel advancing plans for indefinite control of Gaza, Oman brokering a truce between Houthis and the US, and military confrontations erupting between India and Pakistan.

The Gaza campaign intensified: Israel’s cabinet approved plans to control large parts of Gaza indefinitely and relocate Palestinians to “sterile zones” all across the strip, while taking over aid distribution. Israeli officials signalled the intensive plan will be implemented only if a ceasefire failed to materialize by the time US President Trump leaves the region after his anticipated gulf summit in mid-May.

Meanwhile, Oman said in a surprise announcement it brokered a ceasefire between Yemen’s Houthis and the US, shortly after US President Trump confirmed strikes on the Houthis will stop in return for an end to attacks on US ships in the Red Sea. The ceasefire apparently blindsided Israel, just hours after waging airstrikes that took Yemen’s main airport out of service.

Tensions also flared on the Indian-Pakistani border, with Delhi mounting targeted aerialattacks against what it called “terrorist sites” inside Pakistan and the Kashmir province. The attacks have been framed as a retaliation against deadly terrorist attacks that hit India last month.

Pakistani military officials said they shot down five Indian planes in response, and that troops exchanged fire along the ceasefire line in Kashmir. India’s attacks and Pakistan’s retaliation killed and injured tens of people.

OVER IN THE US- The Trump administration said it is planning to ease Biden’s last-minute restrictions on exports of advanced AI chips, introduced in January and set to take effect on May 15. The tiered system — which divided countries into three tiers that were allowed to receive unlimited, capped, or no exports — will reportedly be cancelled, and likely replaced with new rules aiming at handing the US more control over chips abroad.

AND- Warren Buffett blindsided investors with a surprise announcement that he wants to step down as CEO of Berkshire Hathaway by the end of the year, to be replaced by Vice Chairman Greg Abel. The 94-years old Wall Street icon has spent some 60 years at the helm of Berkshire — which he turned from a textile manufacturer into a USD 1.2 tn conglomerate with a super-successful investment strategy that earned him the nickname “Oracle of Omaha.”

☀️ THE WEATHER THIS WEEKEND-

The temperature is ramping up in the capital this weekend, with the mercury today set to rise to 37°C before dropping to 24°C at night. Saturday will see another hike in temperature, peaking at 39°C and cooling to a still-warm 27°C at night, according to our favorite weather app.

HAPPENING THIS WEEKEND-

The RiseUp Summit returns once again today, this Thursday, 8 May through Saturday, 10 May at the Grand Egyptian Museum, bringing together investors, leaders, entrepreneurs, and promising startups in Egypt and the Arab region. You can grab your tickets from Ticketsmarché.

Cairo Photo Week returns under the banner of Finding the View starting tomorrow, featuring over 14 exhibitions, lectures, workshops, and networking meetups. This year’s festival is taking place from Thursday, 8 May to Sunday, 18 May Downtown and in the Cairo Design District at District 5. You can access all the exhibitions without a paid ticket, but talks and panels require either a day access or a full festival ticket and accept walk-ins. Workshops require advance registration. You can grab your passes from Ticketsmarché.

Omar Khairat’s Grand Show is taking place on Friday, 9 May. Dress up in your finest formal wear and head to the Qubba Palace to experience the iconic composer’s unforgettable talent. Tickets are available on Ticketsmarché.

In the mood for vocals that will have you shedding a tear? Medhat Saleh would like a word. On Friday, 9 May, the Egyptian singer and songwriter will be taking to the stage at the Must Theatre in 6th of October. The concert starts at 8pm, and you can secure your seat through Ticketsmarché.

Calling all coffee enthusiasts: The Egypt Coffee Festival is bringing caffeine laymen and experts together for a full day of java-themed activities, competitions, and discussions. The event will kick off at 9am on Saturday, 10 May at Kamelizer in District 5. You can grab your tickets through Ticketsmarché.

HAPPENING NEXT WEEKEND-

Hiba Tawaji and musical director Oussama Rahbani are touching down in Cairo after shows in Toronto, London, and Paris, for an unforgettable night of breathtaking music at Hyde Park New Cairo on Thursday, 15 May. You can grab tickets on Tazkarti.

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