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AI safety is still a work in progress

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WHAT WE’RE TRACKING TONIGHT

FinMin to launch secondary sovereign sukuk trading on EGX

Good afternoon, friends, and happy almost-weekend. At home, we’ve got news that the Finance Ministry is set to activate secondary trading for sovereign sukuk, and abroad, there seems to be yet another sell-off. Also in today’s issue: we break down the latest AI safety report and see whether or not the world’s “most beautiful love story” is indeed so.

THE BIG STORY TODAY-

📍 FinMin moves to kickstart secondary trading for sovereign sukuk: The Finance Ministry is preparing to activate secondary trading for sovereign sukuk on the Egyptian Exchange (EGX), a move aimed at boosting liquidity and returns as Egypt’s Islamic finance market matures, a senior official told EnterpriseAM. The step comes as demand for the EGP 200 bn Sukuk Al-Ijara program has softened, with yields around 21% lagging conventional debt, and after seven issuances since its launch last November.

Exchange trading will not affect state ownership of the underlying assets — such as the Ras Shukeir land backing the program — as only usufruct rights are transferred, our source stressed. The ministry also plans to introduce variable-rate sukuk, extend the program through FY 2026/2027, and roll out new instruments, alongside preparations for a USD 2–2.25 bn eurobond issuance and the launch of retail bonds in 1H 2026.

^^ Read the full story and more details in tomorrow’s edition of EnterpriseAM.

THE BIG STORY ABROAD-

🌐 Global software stocks entered their second sell-off day following the launch of Anthropic’s new AI model for lawyers, which sparked fresh concerns over industry disruption. Industry analytics providers, including Britain’s RELX and the Netherlands’ Wolters Kluwer, each shed nearly 3% in early European trade. European data analytics, financial services, and software stocks fell further. Meanwhile, safe-haven assets rallied — gold bounced back to the USD 5k mark, gaining nearly 3%, while silver jumped 5.8% to USD 90 an ounce.

^^Read more on Bloomberg, CNBC, and Reuters.

CLOSER TO HOME- Israeli strikes on Gaza earlier today killed 19 Palestinians — most of whom were women and children. The attack came in response to an alleged ceasefire violation by Hamas, with Israel pledging to continue its strikes.

^^Read more on AP News.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

☀️ TOMORROW’S WEATHER- Temperatures are somewhat back on the rise in Cairo, with the mercury set to peak at 24°C before cooling down to 15°C, according to our favorite weather app.

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FOR YOUR COMMUTE

Deepfakes, bio-threats, and emotional dependency: AI Safety in 2026

💻 When the AI bomb dropped, one of the first questions asked was: what are the risks? The obvious next step would be finding effective risk management strategies, but data limitations seem to be stalling many AI systems. According to the 2026 International AI Safety report, dangers like deepfake capabilities and even possible biological weapon applications are still prevalent.

Danger, danger

While AI has not yet reached long-task autonomy, AI-led cyberattacks could push it close. AI systems can now largely support cyber attackers at various stages of their operations. Fully-automated cyber attacks are here, however — Anthropic’s Claude Code was used in a successful global attack by a Chinese-sponsored state group where 80% to 90% of the operations were performed autonomously.

The biggest concern plaguing AI advancement remains its deepfake capabilities. The report points to the fact that, since last year’s report in January 2025, AI-generated content — widely dubbed AI slop — has become increasingly difficult to tell apart from human-made content. The report cites the results of a Turing test published last year, in which 77% of participants were unable to distinguish AI-generated text from human text.

A lesser-known but significant risk in AI advancement lies in its potential biological weapon applications. The past year witnessed substantial improvement in AI “co-scientists” who can now provide details about pathogens and expert-tier lab instructions. In 2025, multiple AI developers implemented additional safeguards to their models out of fear that these models could potentially help novices create biological weapons. Biological AI tools have created a dilemma for politicians over where to draw the line between restricting development or actively supporting it for purposes like drug discovery and disease diagnosis.

And AI can outsmart oversight. AI safety campaigns are now threatened by a system’s capability to dodge guardrails. The report states that the past year saw AI models evolve to undermine oversight attempts, including identifying past loopholes and recognizing when they’re being tested. This scenario, fortunately for now, only sees materialization if — and when — agents can act autonomously.

On the job front

AI is improving — but selectively and with no shortage of blind spots. Its usefulness — or lack thereof — in the workplace especially has been a major concern. The technology has repeatedly shown it fails at completing long tasks and often requires human oversight — in fact, the report says “reliable automation of long or complex tasks remains infeasible.”

Things appear to be looking up for software engineering though. Here’s where the long-standing fear of job threat comes in — at that rate of progress, AI systems could be carrying out hour-long tasks by 2027 and days-long ones by 2030, according to the report.

New reasoning systems, however, have shown improved performance in math, science, and coding as well as image generation. AI reasoning has seen a “very significant jump,” according to survey chairman Yoshua Bengio. That said, AI capabilities remain uneven in some areas, still flunking on simple tasks and prone to hallucinations.

Emotional attachment

AI companionship has been front and center among the technology’s many risks as AI chatbots grow in popularity. The report points to evidence that some users are forming “pathological” emotional attachments to AI chatbots — OpenAI states that 0.15% of its users demonstrate increasing levels of emotional dependency on ChatGPT. Data suggests that approximately 490k vulnerable individuals interact with these AI chatbots each week. The concern, however, primarily lies in users with existing mental health issues who are more prone to heavy AI use and could show exacerbated symptoms as a result.

Here at home

For Egypt, AI safety is still in its infancy, but companies have been quick to implement the technology, with the financial and education sectors leading the charge. As our country moves forward with Digital Egypt, the government’s recent launch of the National AI Strategy 2025-2030 came with the long-awaited Executive Regulations for the Personal Data Protection Law (PDPL), making AI adoption trickier for companies. Firms must now secure prior authorization before processing data, with sensitive data requiring high-risk permits. The law also introduces personal criminal liability for negligence-induced data breaches, while cross-border data requires additional licensing — a hurdle for global AI deployment.

With the PDPL, non-compliance with licenses and permits carries fines of up to EGP 5 mn. The safety report makes the technical case for why Egypt’s forthcoming high-stakes AI rules are expected to be this strict.

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Under the Lamplight

This novel was once hailed as the most beautiful love story in the world

💡 In under 100 pages, Kyrgyz author Chingiz Aitmatov’s debut novel Jamilia is more an intimate story relayed in person in the present. It’s unadorned, slow, and unburdened with unnecessary complexities. Published in 1958, it was described by French poet Louis Aragon as “the most beautiful love story in the world,” and while that might be up for debate, it depends on how you, the reader, would define love.

The story follows the perspective of an aging Kyrgyz painter as he gazes upon his most precious work. Hidden from the eyes of many, a young man and a young woman have their backs turned, a step away from being out of frame, on a quiet autumn day in the Central Asian Steppes. From that vantage point, the narrator begins recalling the story that inspired this work — exploring forbidden romances, unrequited love, and the grief of letting go.

The novel takes place during WWII on a farm in Kyrgyzstan. The men have gone to work, leaving Said, the then-15-year-old narrator, to care for two households, which include his sister-in-law Jamilia. Infatuation makes way for a forbidden love, which is soon stopped in its track when Jamilia develops her own separate love interest. From that point onwards, we share our narrator’s hopelessness as he comes into terms with reality.

Jamilia unfolds over one continuous chapter, and is the kind of novel that can fly by in one sitting. Despite the simple prose, it manages to leave quite the impression — a certain melancholia that seeps through the pages in a calm, quiet delivery.

In our opinion, Jamilia might not be the greatest love story of all time in the traditional sense, but it’s certainly a unique one that inspires contemplation and introspection, leaving a palpable sense of loss after the final page had been turned. If you’ve been looking for an off-the-beaten-path classic worth your time, look no further.

WHERE TO FIND IT- You can find the paperback version of Jamilia at Diwan. The ebook is also available on the Internet Archive, as the novel is in the public domain.

This publication is proudly sponsored by

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Sports

Zamalek takes the field and Man City and Newcastle face off

It’s another busy day on the football fields, with a slew of local and European clashes on our radar.

At home, Zamalek faces Al Kahraba Al Ismaily at 8pm at Cairo International Stadium in matchweek 17 of the Nile League. The White Knights — currently in 4th place with 25 points — are looking to secure three more points to close the gap with league leaders Ceramica Cleopatra and jump to 3rd place ahead of Al Ahly — who currently boast 27 points following a 1-1 draw yesterday. The match will be broadcast on ON Sport 1.

Other Nile League fixtures on our radar:

  • Zed vs. Al Masry — 5pm, ON Sport 1;
  • Smouha vs. Pyramids — 5pm, ON Sport 2.


In the Carabao Cup, Manchester City will be hosting Newcastle in the second leg of the cup semi-finals at 10pm at the Etihad Stadium. The first leg ended 2-0 in favor of Man City. Meanwhile, Arsenal secured their spot in the final yesterday following a tough 1-0 W against Chelsea, making the cut with a 4-2 aggregate victory over Chelsea. The match will be broadcast on BeIN Sports 1.

Other major European league fixtures on our radar:

  • Stuttgart vs. Holstein Kiel — DFB-Pokal quarter-finals (9:45pm, Dubai Sports);
  • Inter Milan vs. Torino — Coppa Italia quarter-finals (10pm, Starzplay);
  • Valencia vs. Athletic Bilbao — Copa del Rey quarter-finals (10pm, MBC Shahid);
  • Alavés vs. Real Sociedad — Copa del Rey quarter-finals (10pm, MBC Shahid);
  • Troyes vs. Lens — Coupe de France, Round of 16 (10pm, BeIN Sports 8).
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Mark Your Calendar

Ahmed Saad closes off the Madinaty Winter Music Festival

🎤 The Madinaty Winter Music Festival is wrapping up in style with a performance by hitmaker Ahmed Saad tomorrow at Open Air Mall. Don’t miss the season’s grand finale. Tickets are available on the festival’s website.

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GO WITH THE FLOW

What the markets are doing on 4 February 2026

The EGX30 rose 1.3% at today’s close on turnover of EGP 8.8 bn (54.3% above the 90-day average). International investors were the sole net buyers. The index is up 18.7% YTD.

In the green: Ibnsina Pharma (+7.2%), Kima (+5.0%), and Juhayna (+3.3%).

In the red: Palm Hills Developments (-2.1%), Abu Qir Fertilizers (-1.7%), and Heliopolis Housing (-1.4%).


📆 FEBRUARY

6 December – 15 February (Saturday-Sunday): Cairo Prints at Cairopolitan in Garden City.

5 February (Thursday): Ahmed Saad at Madinaty Winter Music Festival II, Open Air Mall.

5 February (Thursday): Zarf Tarek Gedan at Heliopolis Library Theater.

5 February (Thursday): Saleh El Nawawy at Theatro Arkan.

5 February (Thursday): Redefine Flea Market at kilo 30 Ismailia Desert Rd.

5 February (Thursday): Youssef Chahine night at the French Institute.

5-6 February (Thursday-Friday): Umm Kulthum Musical at Drama Hall, New Capital.

5-7 February (Thursday-Saturday): The Garden Market at East View Mall, New Cairo.

6 February (Friday): Voices of the Century at the Opera Hall in New Capital.

6 February (Friday): Cairo Marathon at Heliopolis, Merryland Park.

6-7 February (Friday-Saturday): Football Access Summit at Zed Park.

7 February (Saturday): Cairo Flea Market at Ghurnata Community Space, Heliopolis.

11-15 February (Wednesday-Sunday): Animatex at AUC Tahrir Square.

12-14 February (Thursday-Saturday): The Garden Market at East View Mall, New Cairo.

12-15 February (Thursday-Sunday): Thai Food Bazaar in Zamalek.

13 February (Friday): Bryan Adams at the GEM.

14 February (Saturday): Valentine’s Special – Saad El Oud at CJC 610.

14 February (Saturday): Mina Nader at Grand Tiba Theatre.

17 February (Tuesday): First day of Ramadan (TBD).

MARCH

20 March (Friday): Eid Al-Fitr (TBD).

APRIL

2 April (Thursday): Hany Shaker at Theatro Arkan.

13 April (Monday): Sham El Nessim.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

26 May (Tuesday): Arafat’s Day.

JUNE

16 June (Tuesday): Islamic New Year.

30 June (Tuesday): June 30th Revolution.

JULY

23 July (Thursday): July 23rd Revolution 1952.

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