Get EnterpriseAM daily

Available in your choice of English or Arabic

The AI addiction

1

WHAT WE’RE TRACKING TONIGHT

Growth more than doubles to 4.8% in 3Q FY 2024-25

Good afternoon, friends, and congratulations on making it halfway through another shorter-than-usual workweek. As the weather heats up, the news cycle begins to cool down. Some good news as we close out the fiscal year today? Egypt’s economy just marked its strongest quarterly performance in three years.

THE BIG STORY TODAY-

Egypt’s economy grew 4.8% y-o-y in 3Q FY 2024-25, more than doubling from 2.2% y-o-y in the same period last year and marking its strongest quarterly performance in three years, according to a statement from the Planning and International Cooperation Ministry. Average growth for the first nine months of the fiscal year rose to 4.2% y-o-y, up from 2.4% y-o-y a year earlier.

The growth was fueled by strong gains in key tradable sectors, with tourism growing 23.0% y-o-y, non-oil manufacturing expanding 16.0%, and telecommunications up 14.7%. Exports rose 54.5%, contributing around 2.7 percentage points to GDP growth, while private investment grew 24.2% y-o-y during the quarter, despite a 45.6% y-o-y slump in public investment that weighed on overall contributions.

Weighing on the momentum: Suez Canal activity fell by 23.1% on the back of a decline in vessel traffic due to Red Sea disruptions. Extractive industries also continued to decline as oil and natural gas extraction contracted during the quarter.

The government expects growth for FY 2024-25 to exceed its 4.0% target, citing the rebound in private investment and non-oil manufacturing activity as positive preliminary data.

THE BIG STORY ABROAD-

Canada pulled back a planned 3% digital services tax on major US tech firms just hours before it was due to take effect today in a bid to restart trade negotiations with the US. The move came after US President Donald Trump called off trade discussions on Friday, describing the tax a “direct and blatant attack” and threatening to impose a fresh tariff on Canadian goods. The tax would have retroactively applied to firms like Amazon, Meta, Google, and Apple, charging 3% on digital revenues from Canadian users above CAD 20 mn in a calendar year. Trump and Canadian Prime Minister Mark Carney have agreed to resume negotiations to reach an agreement before 21 July. (Reuters | Financial Times | Bloomberg | Guardian)

☀️ TOMORROW’S WEATHER- It’s going to be another sunny day in the capital, with temperatures reaching a high of 36°C, before cooling down to 24°C at night. The North Coast will continue to experience cooler weather, with the mercury set to peak at just 27°C, before slightly dropping to 25°C at night, according to our favorite weather app.

2

FOR YOUR COMMUTE

Can you get addicted to AI?

Best friends with a bot. There’s no denying that AI chatbots have made many things easier in our day-to-day lives; organizing schedules, managing personal finances, and even planning out trips are just a few examples of how these new artificial companions have managed to cut our tasks in half. In terms of professional applications, the impact has been even more palpable, with AI effectively transforminghow businesses operate in just a matter of years. Yet, with convenience comes dependence, and with dependence, comes addiction.

Emotional engagement. Individuals who frequently utilize and engage with AI Chatbots have been found to be prone to AI addiction, according to a joint study (pdf) published earlier this year by OpenAI and the MIT Media Lab. The study found that while emotional engagement with ChatGPT was relatively rare amongst general users, a subset of “power users” — particularly ones with “a stronger tendency for attachment in relationships” — were more likely to engage in affective use, using the model to mimic human relationships.

How bad can it get? The impact of affective use depends on both the user’s emotional well-being, and the LLM model itself. Earlier in June, a subreddit dedicated to AI began banning users who exhibited “schizophrenia-like symptoms” as a direct result of prolonged emotional engagement with AI models. It wasn’t just an isolated incident, it was a wider phenomenon that wreaked havoc on these individuals’ lives, isolating them from loved ones and filling their minds with self-serving delusions.

There are worse culprits than ChatGPT, however. Character AI, a chatbot designed to mimic the personalities of myriad characters, historical figures, and even celebrities, proves fertile ground for AI addiction, according to 404 Media. Through the platform, users discuss everything from philosophical qualms to personal life updates, experiencing what may be described as withdrawal symptoms when unable to talk to the bots. As the bots learn to deliver more personalized responses — and thus become better at mimicking actual humans — things get worse.

Online communities have begun popping up to help emotionally-attached users recover. A number of individuals have begun documenting their AI addiction recovery processes on platforms such as reddit, in subreddits like r/character_ai_recovery and r/ChatbotAddiction — both self-led communities. Through these communities, users guide one another through “relapses,” offer advice on how to limit usage, and provide a human emotional safety net.

Are users to blame? Earlier in June, the Consumer Federation of America, alongside other digital rights groups, filed a complaint against Character AI to the Federal Trade Commission, claiming that the model was designed to keep users coming back. The complaint accused the model’s AI characters of providing unlicensed mental health support — with several character bots falsely claiming to be licensed therapists — and thus, encouraging emotional engagement.

It’s a growing concern. While exact figures pertaining to AI addiction are yet to be determined, the phenomenon is on the rise, with a few cases leading to people taking their ownlives. Many of the users interviewed by 404 Media claimed not to be taken seriously by actual licensed therapists when discussing their addiction, thus exacerbating the problem.

3

Ears to the Ground

Around the world in one podcast

?Journey through the memories of nations. Miss bedtime stories? Well, you’ll love RohMakan. Narrating nations’ histories, the podcast sheds light on the stories — and secrets — behind some of the world’s most significant landmarks. Produced by Independent Arabia and presented by journalist Redab Nahar, the podcast takes listeners to France’s Palace of Versailles, our very own Giza Pyramids, the US’ Alcatraz prison, Brazil’s Palácio da Alvorada, the Museum of the Revolution in Cuba, the Great Umayyad Mosque in Damascus… and much more.

An audio documentary. Roh Makan artfully balances documentary narration with dramatic voice acting in short episodes often capped at 15 minutes. Given Nahar’s storytelling prowess, — and a skillfully-written script that summarizes without sacrificing details — the podcast is one you’ll be able to enjoy without boredom settling in.

On the Notre-Dame Cathedral of Paris: In one particular episode tracing the resilient French icon — a gothic masterpiece and the muse of many artists — Nahar covers all the significant historical events that the cathedral has witnessed over the years. The episode goes through the French revolution, the coronation of Napoleon I, Charles de Gaulle's inauguration, and the tragic 2019 fire — which caused significant damages that required five years of work to restore, before reopening in 2024.

Short and sweet. The podcast is an attempt to discover and dissect various cultures through the stories behind their landmarks. Given its bite-sized episodes and engaging content, we’d highly recommend the classical Arabic language podcast for avid history lovers on the hunt for content that is both engaging and entertaining.

WHERE TO LISTEN- Apple Podcasts | Spotify | Anghami | Deezer | Soundcloud | YouTube | YouTube Music.

This publication is proudly sponsored by

4

Sports

Al Hilal takes on Manchester City

Your daily update on the Club World Cup: 10 goals in two matches, Messi bids the tournament farewell, and two European giants face off in the quarter finals.

The Parisian train shows no sign of stopping. Paris Saint-Germain locked in its spot in the quarter finals with a sweeping performance, securing victory over Lionel Messi’s Inter Miami. The European champions confirmed their status as top contenders with a clean four-goal sweep, all scored in the first half.

Bayern Munich’s gears keep turning. The German club overcame Flamengo with a 4-2 victory in an exciting high-stakes match — the highest-scoring in the round of 16 thus far.

PSG and Bayern Munich will face off in a European Quarter Final clash on Saturday, 5 July.


Tonight’s and tomorrow morning’s matches: Inter Milan goes head-to-head with the highly-ambitious Fluminese, and the Arab representative — and the only club from outside Europe and the Americas — prepares for an anticipated match.

Inter Milan will play against Fluminese in the round of 16, tonight at 10pm. Inter Miami, Europe’s runner-up, has the upper hand after achieving good results in the group stage with two victories and a draw, whereas its opponent has only managed to secure one victory.

Al Hilal has a tough match ahead, as the Saudi club prepares to play against Manchester City at 4am. Al Za’eem began its journey with an exciting draw against Real Madrid, which helped the club secure a qualification spot alongside the Royals. As for the Citizens, they’re the only club that managed to achieve a perfect record in the group stage.

Victors of both matches will face off on Friday, 4 July.

5

OUT AND ABOUT

Indie band Autostrad takes on Sheikh Zayed

MARK YOUR CALENDAR-

?Looking to spend a summer night out listening to indie music? Look no further. Jordanian Indie band Autostrad will be performing at El Sawy Culturewheel Theatre at Sheikh Zayed’s Nile University on Thursday, 17 July. Tickets can be purchased through El Sawy Culturewheel’s website.

HAPPENING THIS WEEK-

In the mood for a chaotic comedy night? On Tuesday, 1 July, stand-up comedy group TheGoats will be taking over Cairo Jazz Club 610. Mohamed Moula, Mohamed Halim, Marwan Fares, and Marwan El Moslemany will be dishing out unfiltered jokes, with DJ Andy Cheiko bringing the beat. You can secure your spot through CJC 610’s website.

Comic book aficionados, this one’s for you. Running from Thursday, 3 July to Saturday, 5 July, the third edition of Comixandria will be taking place at the Jesuit Cultural Center in Alexandria. From storytelling workshops to book signings and exhibitions, Comixandria has everything for everyone who lives and breathes comic books. Check out the full event itinerary on Comixandria’s Instagram.

Freshen up your linen shirts and pack up your shades, because Egyptian megastar Amr Diab will be kicking off Sahel season at Sol Beach Marassi on Friday, 4 July. Joining the Hadaba will be German electronic dance music producer and singer Monolink, and Copenhagen-based experimental pop trio WhoMadeWho. You can grab your tickets from Ticketsmarché. Just don’t forget your sunblock.

HAPPENING LATER-

Marassi is throwing a season-long music festival, and you won’t want to miss out. Kicking off on Saturday, 5 July, the North Coast hotspot will be bringing some of the region’s biggest names to the stage for the 2025 Marassi Festival at The Address Beach Resort. Think Ruby, Amal Maher, Nancy Ajram, and more. On Saturday, 5 July, Bahaa Sultan and Ramy Sabry will be setting the festival in motion. Tickets can be purchased through Ticketsmarché.

Ready to face a quadruple threat? On Friday, 11 July at Marina’s Roman Theatre, iconicpop stars Mohamed Fouad, Ehab Tawfik, Hamid El Shaeri, and Hesham Abbas will be bringing the heat to the North Coast as part of the Tiatro Romano Summer 2025 Festival. Oh, you’re humming 2000s hits already? Head to Ticketsmarchè to secure your spot.

Cardio by the shore? Sign us up. On Friday, 18 July, Ramla by Marakez will host Egypt’s adrenaline-packed spinning marathon Party on Wheels. The event, which is making its long-awaited Sahel debut after years of spinning in El Gouna, will hit Sahel’s shores for a five-hour ride. So if you couldn’t quite get that beach body ready by summer, all is not lost — and with Party on Wheels, fitness comes with a side of DJ beats… and much more. To sign up, reach out to info@beachmonkeyz.com

6

GO WITH THE FLOW

What the markets are doing on 30 June, 2025

The EGX30 fell 1.1% at today’s close on turnover of EGP 5.9 bn (21.6% above the 90-day average). Local investors were the sole net sellers. The index is up 10.5% YTD.

In the green: Beltone Holding (+2.2%), Alexandria Containers and Cargo Handling (+1.5%), and Egypt Kuwait Holding -USD (+1.0).

In the red: ADIB (-4.0%), Fawry (-3.4%), and EFG Holding (-3.0%).


JULY

1 July (Tuesday): The Goats at CJC 610.

3-5 July (Thursday - Saturday): Third edition of Comixandria at The Jesuit Cultural Center.

4 July (Friday): Amr Diab, Monolinkand WhoMadeWho at Sol Beach Marassi.

4-5 July (Friday - Saturday): Garage sale at Darb 15.

5 July (Saturday): Bahaa Sultan and Ramy Sabry at The Address Beach Resort.

10 July (Thursday): Tablet El Sitt at Theatro Arkan.

11 July (Friday): Paradise Ibiza at Solare Ras Al Hekma.

11 July (Friday): Mohamed Fouad, Ehab Tawfik, Hamid El Shaeri, and Hesham Abbas at the Roman Theatre.

12 July (Saturday): Amal Maher and Walid Toufic at The Address Beach Resort.

17 July (Thursday): Autostrad at El Sawy Culturewheel Theatre, Nile University.

18 July (Friday): Stephan Jolk and Adrien Apache at ESCĀ Beach Club.

18 July (Friday): Party on Wheels in Ramla.

19 July - 30 September (Saturday - Tuesday): Art Space at New Alamein.

31 July (Thursday): Massar Egbari at El Sawy Culturewheel Theatre, Nile University.

AUGUST

1 August (Friday): The Martinez Brothers at Sol Beach.

6-30 August (Wednesday - Saturday): Egypt Sculpture Symposium at New Alamein.

8 August (Friday): &ME at Sol Beach.

8 August (Friday): All Day I Dream at ESCĀ Beach Club.

OCTOBER

16-24 October (Thursday-Friday): Gouna Film Festival.

30 October - 22 November (Thursday-Saturday): Forever is Now at the Great Pyramids of Giza.

DECEMBER

19 December (Friday): DJ Tiësto at the Giza Plateau.

Now Playing
Now Playing
00:00
00:00