Good afternoon, folks, and a happy hump day to you all.
THE BIG STORY TODAY
#1- Saudi Crown Prince Mohamed bin Salman is in town. The Saudi Royal Court announced in a recently released statement that the country’s crown prince has departed for Cairo. Mohamed Bin Salman is set to meet with President Abdel Fattah El Sisi to discuss strengthening “fraternal relations and other issues of common interest.” Trade and investment, along with Israel’s wars on Lebanon and Gaza are expected to top the agenda, Reuters reports, citing unnamed Egyptian sources.
#2- Premium Healthcare subsidiary eyes Jordan expansion with new JV: Premium Healthcare — formerly City Labs — subsidiary Premium Diagnostics UAE is forming a joint venture with Jordan’s Qudah Consulting Laboratorie, the company said in an EGX filing (pdf). The newly created Premium Diagnostics for Laboratories and Medical Supplies will open 20 new branches over the next three years and be jointly owned by the two companies in a 50/50 split.
#3- Orascom Development has secured a USD 155 mn loan from the International Finance Corporation to refinance existing debt and fund growth opportunities, particularly in its hotels in El Gouna, according to an EGX disclosure (pdf). “This proactive refinancing reduces our cost of capital and strengthens our liquidity. The lower credit spreads achieved through this deal will improve our free cash flow and support our overall business strategy while maintaining a net debt to Adjusted EBITDA of less than 0.4x” Group CFO Ashraf Nessim said.
THE BIG STORY ABROAD
Global public debt is expected to surpass USD 100 tn by the end of 2024, accounting for around 93% of global GDP, the IMF warned in a statement released earlier today. By 2030, the Fund sees public debt reaching approaching 100% of global GDP — a whole ten percentage point jump from before the Covid pandemic. The reality for some countries might also be worse than current projections, cautions the IMF, pointing to “large spending pressures, optimism bias of debt projections, and sizable unidentified debt.”
WHILE IN OUR CORNER OF THE WORLD- In a depressing new chapter in Israel’s bloody war on Gaza, concern among rights groups is growing that Israel is implementing a plan — dubbed the Generals Plan — to starve north Gaza and turn it into a closed military zone with no water, food, or medicine allowed to enter after civilians have been pushed out.
AND IN OIL MARKET NEWS- Oil prices have fallen as fears of a regional escalation calm, with Brent crude falling 4.1% to USD 74.26 a barrel at the time of writing. Analysts have been pointing to Israel’s reassurances to the US that its anticipated strike on Iran will focus on military targets — and not on oil and even nuclear facilities, which had worryingly been suggested earlier — as the reason behind the calming of the oil market.
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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Foreign debt inches down during 2H FY 2023-2024: Egypt’s foreign debt sat at USD 152.9 bn during the end of the last fiscal year, falling some USD 15.1 bn — almost 9% — compared to the USD 168 bn recorded at the end of first half of the fiscal year.
- Rabbit Mobility closes USD 1.3 mn round: E-scooter startup Rabbit Mobility raised USD 1.3 mn in a new investment round led by VC firm 500 Global and Untapped Global.
- EFG Hermes Corp-Solutions has issued EGP 450 mn in debt, its second issuance in a wider EGP 3 bn program.
☀️ TOMORROW’S WEATHER- Temperatures are stable in the coming few days, with tomorrow’s mercury expected to reach a high of 32°C and a low of 22°C in the capital, according to our favorite weather app.





