Good morning, all. We kick off the workweek with a busy issue, led by the news that we have another LNG regasification unit coming our way, three Chinese players setting up shop in Qantara, and the country’s unemployment rate continuing to inch down.

PSA-

WEATHER- After a scorching weekend, the temps are dropping in Cairo today, which will see a high of 36°C and a low of 21°C, according to our favorite weather app.

It’s much cooler in Alexandria, with a high of 26°C and a low of 19°C.

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

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EGP WATCH-

The EGP continues to strengthen against the USD: The price of the USD edged down closer to the EGP 50 barrier at the end of last week, marking the local currency’s highest level against the greenback in five months. The EGP was trading hands at around the EGP 50.21/50.22 mark at both private and public banks at the end of trading on Thursday. The currency has now gained nearly 3% from its post-float low of EGP 51.72-51.75 it had reached last month, helped in part by improved market sentiment following easing trade tensions between the US and China.

RED SEA WATCH-

Can the reduction in transit fees help boost traffic levels in the Suez Canal? The Suez Canal Authority announced a 15% reduction on transit fees for container vessels in a bid to encourage major shipping lines to return to transiting through the canal, but some are skeptical the move will bear fruit. Abdel Qader Gaballah, Chairman of the Suez Chamber of Shipping, told EnterpriseAM that the move is not enough to incentivize shipping companies, adding that security remains the main concern. With the current security risks, the premiums for ships going through Suez is far higher than the fee reductions, he added.

Shipping giants are still monitoring the situation: Sources from Maersk and other major shipping companies said that they are monitoring the situation and will only consider returning to the canal if security improves.

HAPPENING TODAY-

#1- Proptech platform Aqarmap is hosting an Egyptian-Saudi real estate summit in Cairo’s Nile Ritz-Carlton today, the company said in a statement (pdf). The event will bring together developers, investors, and policymakers from Egypt and Saudi Arabia to discuss cross-border investment, market trends, and digital transformation in the sector.

** We spoke to Aqarmap CEO Aya Ashraf about the upcoming summit and more in a recent interview. Check it out here.

#2- The International Monetary Fund will kick off its first ever MENA Research Conference in Cairo today, the fund said in a statement. The two-day conference, organized by the IMF and the Onsi Sawiris School of Business at the American University in Cairo, will bring together academics, researchers, and policymakers to discuss regional and global economic issues. The forum also aims to bolster economic research skills in finance ministries and central banks in the region. You can check out the full agenda on the IMF’s website.

HAPPENING THIS WEEK-

Could a second consecutive rate cut be in store? After the Central Bank of Egypt kicked off its long-awaited easing cycle in March with a 225 bps cut — its first since 2020 — attention now turns to the MPC’s third meeting of the year on Thursday. The committee is set to decide whether to continue cutting rates or hit pause as the central bank weighs the implications of a temporary US-China trade war truce, inflation creeping up in April, and more.

** We will be out with our customary poll later this week to get an inside and informed outlook from the analysts and economists we trust the most. Watch this space.

DATA POINT-

Egypt aims to attract USD 42 bn in foreign direct investment (FDI) in FY 2025-26, building on this year’s inflows, which included the landmark USD 35 bn Ras El Hekma agreement, according to a government document seen by Asharq Business.

Net FDI inflows reached USD 6 bn in 1H 2024-25, compared to USD 5.5 bn during the same period a year prior, driven by the performance of non-oil sectors, including greenfield investments, real estate purchases by non-residents, and reinvested earnings.

THE BIG STORY ABROAD-

Most foreign outlets spent the weekend focusing on US President Trump’s blitz through the region. Trump inked USD 200 bn worth of commercial agreements between the US and the UAE during his last stop to the Emirates on Thursday. The new agreements, in energy, critical minerals, and — as expected — AI, bring the total investment ticket over his Gulf tour to USD 2 tn.

Trump’s tariffs are starting to weigh in on consumer prices: Walmart — the largest retailer in the US — announced it’ll raise prices, citing the added costs of tariffs. The announcement drew Trump’s ire in the form of social media posts that demanded the retailer “EAT THE TARIFFS” instead of passing them to consumers.

ALSO- The first direct talks between Russia and Ukraine in Turkey on Thursday did not go as planned, with Russian President Vladimir Putin skipping the talks and sending a delegation in his place, and Trump saying no agreement can be met until he sits down with Putin himself. The Donald said yesterday he will call Putin and Ukraine’s Zelenskyy tomorrow to discuss efforts to reach a ceasefire, as well as trade issues. (Financial Times | Reuters | CNBC)

AND- Crypto exchange Coinbase was hit with a cyberattack that it said could lead to losses of up to USD 400 mn. The exchange said it received threats from a hacker that it has sensitive client information, though Coinbase said no login credentials have been breached, but some data like names and addresses were stolen. (Reuters | CNBC | Bloomberg)

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