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Monday, 20 Nov 2023

What We're Tracking Today
Privatization
Tourism
War Watch
Last Night’s Talk Shows
Egypt In The News
Planet Finance
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Alhokair has USD 1.5 bn earmarked for investment in Egypt

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Today at a glance

1
Alhokair unit could invest up to USD 1.5 bn here next year.
2

Privatization

Eastern in line for USD 150 mn from new UAE shareholder to ensure access to materials.
3

Tourism

Tourism revenues expected to rise 15% this year despite Gaza war.
4
Benya + Khazna to break ground on USD 250 mn Maadi data center in 1Q 2024.
5

Also on our Radar

Dice founders officially own more than half of the company.
6

PLANET FINANCE

EGX reaches fresh record high as expectations of devaluation mount.
7

What We're Tracking Today

Shoukry in China today to push for Gaza ceasefire.
8

WAR WATCH

Qatar, US talk up chances of Hamas-Israel ceasefire-for-hostage pact.
9

BLACKBOARD

Egypt’s executive education industry is adapting to new business realities.

Monday, 20 Nov 2023

What We're Tracking Today
Privatization
Tourism
War Watch
Last Night’s Talk Shows
Egypt In The News
Planet Finance
Blackboard
Calendar
1

What We're Tracking Today

Shoukry in China today to push for Gaza ceasefire

Good morning, wonderful people. We have plenty of FDI in store for you today (it leads the news well as well as Also On Our Radar) — and expectations that we’ll see further announcements today.

BUT FIRST, a programming note: We’re pleased to announce that we’ve migrated Enterprise Climate to our new web platform. Enterprise Climate readers will now enjoy a rich homepage, powerful search, and tools to allow them to share or listen to individual stories. Enterprise Climate is the leading newsletter covering the world’s most exciting industry on a MENA-wide scale.

HAPPENING TODAY-

#1-Shoukry in China to press for Gaza ceasefire: Foreign Minister Sameh Shoukry and a delegation of foreign ministers from Arab and Islamic nations are in China today and tomorrow to push for a deescalation of the conflict in Gaza, the Chinese Foreign Ministry said yesterday. Shoukry will be joined by his counterparts from Saudi Arabia, Jordan, and Indonesia, in addition to representatives from the Palestinian Authority and the Organization of Islamic Cooperation. This is the delegation’s first stop in a tour of P5 members of the UN Security Council nations aimed at ramping up pressure for a ceasefire.

Remember: China is the president of the UN Security Council for November.

#2- A high-profile Saudi business delegation arrives in town today. Egyptian and Saudi companies are expected announce new investments as a delegation led by Saudi Trade Minister Majid bin Abdullah Al Qasabi arrives in Egypt today for the Saudi-Egyptian Business Council. Speaking yesterday, council member Turki Al Hokair said his company would invest as much as USD 1.5 bn here next year in a range of sectors. We have that story in this morning’s news well, below.

The delegation will be in town two days ahead of the Egy-GCC Business Forum, which takes place on Wednesday. President Abdel Fattah El Sisi will open the forum, which is set to focus on manufacturing, renewable energy and desalination, agriculture, real estate, and tourism, among other sectors.

#3- Cairo ICT continues today at the Egypt International Exhibition Center. The tech industry gathering ends on Wednesday.

DATA POINT-

Import backlog eases in October: Egypt cleared USD 800 mn of goods during October, taking the total amount of goods still at ports to USD 3.9 bn, according to Al Borsa. FX shortages have hindered importers’ ability to pay for customs clearance, but the government has moved to address backlogs by scrapping burdensome requirements such as letters of credit (L/Cs) at the start of the year.

HAPPENING THIS WEEK-

#1- MERIS may be getting some competition: The deadline to apply for a credit rating license from the FRA is this Wednesday after it loosened requirements last year.

#2- Get ready for a whole lot of Egypt-bound Gulf investments in the days to come: The EGY-GCC Business Forum is kicking off this Wednesday and will wrap on the following day.

#3- Education, Education, Education: The Worldview Education Fair is kicking off on Thursday with representatives for 20 universities and business schools looking for bright and eager students to enroll.

THE BIG STORIES ABROAD-

Altman could return to OpenAI by the week’s end, if the company’s investors have their way: OpenAI’s biggest investors, including Microsoft and a handful of prominent VC firms, are urging the company to reinstate Sam Altman as CEO just days after the board sacked him, writes the Financial Times. Altman stepped back into the startup’s offices yesterday evening wearing a visitor’s pass, but it remains to be seen if his support from employees and investors is enough leverage to reverse the board’s decision.

The Verge reported that the board had initially agreed to resign under pressure from investors, but later said it had missed a late-Saturday deadline to do so.

The OpenAI story has thrown the AI industry’s “boomer vs doomer” clash into sharp relief for the global business press. Doomers hold that AI could be a catastrophe for the human race. Boomers see it unlocking a world of new potential. Particularly worth reading are takes from Bloomberg, the Economist, and CNBC.

ALSO- Former US First Lady Rosalyn Carter has died at age 96. Best known for her lifelong advocacy for mental health, Carter helped redefine the role of the “politically active” first lady and was instrumental in her husband’s run for the White House. US President Jimmy Carter brokered the Camp David agreements that led us to make peace with Israel. See obits in the New York Time | Wall Street Journal | Washington Post.

WATCH THIS SPACE-

#1-A logistics freezone on Libyan border + Egyptian-Libyan bank could be in the works: Libyan investors have proposed setting up a joint Egyptian-Libyan bank and a logistics zone near the Salloum border crossing, according to a statement from the Egyptian Businessmen Association (EBA) picked up by Al Arabiya. This came during discussions about the involvement of Egyptian companies in the Libya reconstruction effort.

Remember: A coalition of three local firms are in line to establish an integrated logistics zone at Salloum after signing an MoU with the government earlier this year.

#2- In this week’s second piece of chicken-related news: An Egyptian unit ofthe National Poultry Company is in talks to acquire an unnamed local poultry firm in 2024, the Jordan-based company’s General Manager Mansour Bin Ali told Asharq Business yesterday. The company is also looking to set up eight poultry stations next year to back its expansion plans in the Egyptian market, Bin Ali added.

HELP GAZA-

Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than 1 mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century.

The folks at Talabat are processing donations for a range of Gaza relief appeals by charities including the Egyptian Food Bank and Misr El Kheir. Pay in EGP using your credit card.

Or check out our list of charities to which you can make direct donations via bank deposit and / or Fawry.

WAR ECONOMICS-

Trading with Yemen may be getting a whole lot pricier: Lloyd’s Ins. premiums for goods passing through Yemeni ports or by its coasts will rise 100-300% according to Al Mal, citing Apex Reinsurance Brokerage head Khaled Sayed. The ins. hike predictions follow the Yemen-based Houthi movement firing rockets and drones in Israel’s direction and the group threatening to attack Israel-linked ships.

What was that about threats to target cargo ships? A cargo ship reportedly linked to an Israeli businessman was hijacked by the Houthi movement yesterday and 25 crew members were taken hostage, AP reports.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing: EgyptSat Auto secured its golden license, but are unclear industry standards in the way?

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue:Our executive education industry is adapting to new business realities.

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Units of Saudi Arabia’s Fawaz Abdulaziz Alhokair Company (Alhokair) could invest as much as USD 1.5 bn in Egypt in 2024, Asharq Business reported yesterday. Energy, real estate, and infrastructure are on the priority list, Turki Al Hokair, the company’s CEO, told the news service, though he stopped short of offering further details.

Alhokair is no stranger to Egypt: FAS Finance, which is partly owned by Alhokair, bought a5% stake in the Egyptian fintech player valU last year, while FAS Energy has a USD 75 mn solar park in Benban and announced plans to build a USD 450 mn solar park in Egypt last year. Alhokair also owns Marakez, the real estate and mall developer and operator whose brands include District 5 and Cairo’s largest shopping center, the Mall of Arabia, in addition to facilities in Mansoura and Tanta.

Other agreements are set to be signed today at a Egypt-Saudi business forum: A Saudi business delegation led by the Saudi Trade Minister, Majid bin Abdullah Al Qasabi, is in Egypt today for the Saudi-Egyptian Business Council.

Other participating companies could make announcements today. Watch out for sectors including energy, real estate, agriculture, and tourism, Alhokair said on Saturday.

The investment comes despite concerns about the repatriation of earnings:Central Bank of Egypt Governor Hassan Abdalla has reportedly promised a remedy for investors having problems repatriating dividends amid the ongoing FX crunch, Bandar Al Amiri, chairman of the Saudi-Egyptian Business Council, told CNBC Arabia.

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2

Privatization

Eastern in line for USD 150 mn from new UAE shareholder to ensure access to materials

TRANSACTION UPDATE- Eastern Company’s new Emirati shareholder will throw the company a USD 150 mn lifeline next year even as it finishes its payout to the Chemical Industries Holding Company (CIHC) — plus we have the inside track on what the state is presently aiming to do with proceeds from the transaction.

#1- Global Investment Holding (GIH) will provide Eastern with some USD 150 mn in hard currency next year to bolster the cigarette maker’s ability to source manufacturing inputs, a senior government official tells us. Eastern’s imports of raw materials have been hit by the FX crunch. GIH reportedly sees the facility as a key measure to ensure the profitability of its new investment. Eastern’s net income dropped 20% y-o-y in 1Q FY2023 to EGP 1.1 bn, while revenues fell 32.5% y-o-y to EGP 3.1 bn in the same period.

#2- CIHC will be paid additional installments equivalent to USD 94.8 mn next year, our source tells us. That will bring the total value of the transaction announced last Thursday to USD 625 mn, as agreed in September. The transaction makes GIH the largest holder of Eastern shares. News of the second installment was first reported by Al Borsa

#3- The government looks set to use the bulk of the proceeds from Thursday’s sale to invest in fresh capacity at existing state-owned fertilizer plants, our source said, with an eye to ramping up exports. It will use the rest of the cash to help narrow the budget deficit, our source added.

Who decides where the money goes? The ministries of finance and public enterprise are mulling that over now, but seem on track to invest in Delta Fertilizers, Semadco, and Kima, our source said, confirming previous reports in the domestic press.

Why? Fertilizer exports = reliable and consistent FX flows: Out of a total USD 51.6 bn in exports recorded in 2022, fertilizers accounted for USD 3.3 bn. Fertilizer exports are larger than our USD 2.5 bn export industry for ready-made garments, USD 2 bn exports of fresh fruits, and USD 1.8 bn exports of plastics.

By the numbers: The Public Enterprise Ministry aims to ramp up the production of the three factories to a combined 2 mn tons of fertilizer per year, our source said. Together, the three have capacities of just 800k tons right now, split between Kima (550k tons of fertilizer per year) and Semadco (250k tons). Operations at Delta Fertilizers are currently on hold, and the government plans to invest USD 350 mn in Delta over the next three years to bring it online again, our source explained. The Agriculture Ministry is set to purchase some 40% of the output to enable its plans to expand agricultural land in the country to nearly 3 mn acres.

Market reax: Eastern Company shares rose 0.2% to close at EGP 28.00 on Sunday.

BACKGROUND- The sale to GIH makes the Eastern transaction the Madbouly government’s largest single asset sale since it rebooted its privatization strategy earlier this year.

ADVISORS- Our friends at EFG Hermes advised GIH on the transaction and were also sole broker for its execution, they said in a statement (pdf).

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3

Tourism

Tourism revenues on track to grow 15% this year despite Gaza war

Our tourism industry seems to be weathering the storm: Egypt welcomed around 13 mn tourists in the first nine months of the year, Deputy Tourism Minister Ghada Shalaby told Al Arabiya yesterday. This puts us on track to hit our target of 15 mn visitors in 2023, up 32% on the year before, despite geopolitical tensions stemming from the onset of the war in Gaza.

An increase in tourist footfall means an increase in tourism revenues, which are predicted to reach USD 14 bn by the end of the year, a rise of nearly 15% on 2022, Shalaby told the Saudi outlet. And with foreign tourists comes foreign currency, which we have never been so keen to pick up as we are now.

Some thought it was going to be much worse: Just three weeks after the outbreak of the war on Gaza, IMF Director Kristalina Georgieva warned that “uncertainty is a killer for tourists inflows” and that in “Egypt, Lebanon, Jordan … the channels of impact are already visible," according to Reuters. Prime Minister Moustafa Madbouly also warned of the war’s potential impact on tourism during a meeting with ministers and central bank officials two weeks ago.

Targets for 2024 have remained ambitious: We’re planning on upping the number of tourists 20% to 18 mn in 2024, said Tourism Minister Ahmed Issa, cited by the outlet. He also projected a jump in tourism revenues next year by 25%.

ICYMI- EgyptAir still seems pretty optimistic about our tourism industry: EgyptAir brought the big bucks to the Dubai Air Show earlier this month, placing an order for the lease of 18 new Boeing airplanes and signed a contract with Airbus for another 10 new aircraft.

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4

WAR WATCH

Qatar, US talk up chances of Hamas-Israel hostage pact

Fighting is continuing in Gaza City this morning as Israeli forces push into the densely populated refugee camps in the north of the city, where Hamas is reportedly engaged in a guerilla war against the IDF. Meanwhile, there’s yet more speculation about the potential for a hostages-for-temporary ceasefire pact between the two sides, and Israel is continuing to build its case for besieging Gaza’s largest hospital.

The will they / won’t they status of the hostage negotiations continues: There are conflicting claims that a Qatari-mediated agreement is nearing completion, which would reportedly see 50 hostages being released by Hamas in exchange for a three-day ceasefire and possibly the release of Palestinians from Israeli prisons, according to Reuters. The main sticking points blocking the agreement were “very minor” and concerning practical, logistical matters, Qatari Prime Minister Al Thani said at a joint press conference with the EU’s Josep Borrell in Doha. “We think [the agreement] is possible, but it is not done yet,” a Biden administration official said on the fast-evolving matter.

Almost a week in, Israel is yet to provide evidence of the Hamas mega base underneath Al Shifa: The IDF released a video (pdf) yesterday claiming to have found a tunnel used by Hamas hidden underneath a garage at the hospital complex. The director of the Gaza Health Ministry dismissed the claim as a “pure lie.” Since raiding Al Shifa over a week ago, Israel has failed to provide any evidence to support their long-held claim that Hamas operated a large command center underneath the hospital. The military’s siege has all but destroyed Al Shifa as a functioning hospital, with a visiting UN team calling it a “ death zone ” after visiting on Saturday.

Another Israeli minister calls for ethnic cleansing: Intelligence Minister Gila Gamliel has become the latest senior government official to call for the “voluntary resettlement” of Palestinians outside of Gaza. In an opinion piece in the Jerusalem Post, the minister calls for a “worldwide refugee resettlement scheme” that would give Gazans “who seek a life elsewhere” an opportunity to leave the strip. “Instead of funneling money to rebuild Gaza or the failed UNRWA, the international community should be helping the people of Gaza build new lives in their new host countries,” she wrote.

ON THE GROUND- MSF: At least 70 dead in Khan Younis airstrike | Palestinian Red Crescent, World Health Organization evacuate 31 premature babies from Al Shifa, 11 in critical condition | Eight babies died after Israel cut electricity, fuel to the hospital.

AID- The Tahya Misr Fund has sent 199 aid trucks | France will send 10 tons of medical supplies and a second hospital ship.

DIPLOMACY- Foreign Minister Sameh Shoukry held talks with the Qatari international cooperation minister | Qatar’s prime minister will visit Russia and the UK on Tuesday to push for a ceasefire.

REGIONAL ESCALATION- The Iran-aligned Yemeni Houthi movement said it hijacked an Israeli cargo ship in the Red Sea, taking over 25 crew members hostage | Israel denied that the ship is Israeli | An Iran-backed militia in Iraq said its strikes against US targets are aimed at “ draining the enemy.”

YESTERDAY IN NUMBERS-

  • 13k+: The number of Gazans who have been killed by Israeli airstrikes over the past six weeks. (Gaza Health Ministry)
  • 5.5k+ The number of children to have died in the bombing. (Gaza Health Ministry)
  • 1.7 mn: The number of people in Gaza who have been displaced by the conflict. That’s almost 75% of the territory’s entire population. (UNRWA)
  • 884k: The number of refugees currently sheltering at 154 UN facilities across Gaza. (UNRWA)
  • 104 + 48: The number of UN workers and journalists killed in the conflict. (UNRWA | CPJ)
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5

LAST NIGHT’S TALK SHOWS

Gaza coverage continues on the airwaves on day 44 of Israel’s brutal war

It was a mixed bag on the airwaves last night, asthe nation’s talking heads brought us coverage of the aid situation in Gaza, the new building reconciliation bill, and the sudden cold spell that has got us all digging out our jumpers from the wardrobe.

Israel’s brutal war on Gaza remains center stage after 44 days: Little aid has made its way into Gaza in the last few days after UN aid deliveries ground to a halt as fuel ran out, but even when it was, it was not enough — the latest available data puts the number of aid trucks that have entered Gaza since 7 October at 1.1k for a population of over 2 mn people. “We need three times of the daily aid currently entering Gaza,” Health Minister Khaled Abdel Ghaffar told Kelma Akhira’s Lamees El Hadidi (watch, runtime: 4:13). Israel has agreed to allow 140k liters of fuel into Gaza every two days, a quantity that is not even close to covering Gaza’s daily fuel consumption for basic needs — like operating water stations, hospitals, and bakeries — UNRWA’s Inas Hamdan told El Hadidi (watch, runtime: 6:29).

The building reconciliation bill was back on the airwaves: MPs yesterday gave initial approval of an updated government bill that will make it easier for owners of illegal buildings to legalize their status in return for paying reconciliation fees and will be up for a final at the House today. “I see this decision as President Abdel Fattah El Sisi’s gift to the citizens,” Ala Masouleety’s Ahmed Moussa said (watch, runtime: 19:10). El Hekaya also had the story (watch, runtime: 0:59).

ALSO ON THE AIRWAVES-

#1- It’s officially raincoat season: We’re a month away from winter, but until then brace for low temperatures, rain, and heavy wind, the Egyptian Meteorological Authority’s Manar Ghanem said. (Kelma Akhira | watch, runtime: 4:04) | (Ala Maso’uleety | watch, runtime: 6:40) | (Al Hayah Al Youm | watch, runtime: 5:46)

#2- It’s also presidential campaign season: Egyptian Social Democratic Party’s Farid Zahran, the Republican People’s Party Hazem Omar, and President Abdel Fattah El Sisi are all working on their presidential campaigns as they prepare for Egyptians to head to the polls in December, and Al Hayah Al Youm’s Lubna Assal made sure to give it some coverage (watch, runtime: 4:07 | 1:13)

#3- Day 1 of Cairo ICT: Communications Minister Amr Talaat gave Moussa (watch, runtime:20:36) a rundown of the first day of the tech expo.

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6

EGYPT IN THE NEWS

Mystery of why Egyptian treasures found buried in Scotland intrigues the global press

It’s a mixed bag in the foreign press this morning,with the Guardian and the Independent chronicling how the students of a school in Scotland came to unearth a collection of 18 Egyptian antiquities over three separate occasions between 1952 and 1984. The Guardian published a piece by Sanaa Seif, the sister of prominent Egyptian activist and political prisoner Alaa Abdel Fattah, reflecting on their family’s efforts to secure her brother’s release, the challenges of making a prison visit one year ago, and the impact of his captivity on their family.

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We lead this morning with news of still more foreign investment, this time in data centers, a cable factory, and consulting.

INFRASTRUCTURE-

Benya inks partnership agreement with the UAE’s Khazna to build data center: Egypt’s Benya Group signed a partnership agreement with UAE-based Khazna Data Centers to push along their plans to build a USD 250 mn, 25 MW data center in Maadi Technology Park, according to a statement (pdf) yesterday. Construction work on the hyperscale data storage facility will begin in the first quarter of 2024. The announcement was made at Cairo ICT, the industry conference.

ADVISORS-Matouk Bassiouny & Hennawy (pdf) was legal advisor to Khazna on the joint venture agreement.

MANUFACTURING-

A USD 50 mn cable factory: Local tech solutions provider Protech and UK-based cable company Osilan are looking to set up a USD 50 mn fiber optic cables factory in Egypt, Protech CEO Tamer El Hennawi told Al Mal. The plant will be built in East Port Said and will initially produce 20-25 mn meters of cables per year. The company will focus on the local market during the first year of operation before targeting overseas customers in African countries after. The plant is expected to come online in 2024.

OUTSOURCING-

Capgemini inaugurates Egypt HQ: French multinational IT and consulting firm Capgemini yesterday inaugurated its Egypt headquarters in New Cairo, the company and cabinet said yesterday. The headquarters houses the company's outsourcing center and serves clients across the Middle East, Europe, and North America. The company wants to add 3k employees to its Egyptian workforce by 2026.

Remember: Capgemini was amongst 29 global outsourcing firms to ink agreements with the Communications Ministry’s Information Technology Industry Development Agency (ITIDA) last December to expand their footprint in Egypt. Capgemini kicked off operations in the country last September.

NBFS-

Beltone unit lands mortgage finance license: Beltone Financial Holding subsidiary Beltone Mortgage Finance has received a mortgage finance license from the Financial Regulatory Authority (FRA), the company said in a statement (pdf) yesterday.

M&A WATCH-

Dice founders officially own more than half of the company: The share transfer of a third of EGX-listed Dice Sports and Casual Wear to the company’s founding family was completed yesterday, according to an EGX disclosure. Toma Company for Commercial and Industrial Investments last week repurchased 545 mn shares — equal to a 30.5% stake — for EGP 0.80 per share, raising the family’s total stake to 58.6% in a EGP 436 mn transaction.

LEGISLATION-

‘Provisional’ approval on the new building reconciliation law: The House has provisionally approved the new building violation reconciliation law, which replaces a 2019 law designed to legalize informal buildings, and aims to prevent structures built next to the Nile from being legalized. The bill, which got the greenlight from the House Housing Committee last December, will be discussed in parliament today before a final vote goes ahead.

WASTE MANAGEMENT-

Environment Ministry launches initiative to formalize our waste management industry for the nth time. The new program to provide training, official industry registration, and extend ins. protection for workers of our largely informal waste collection industry was launched in a statement yesterday. The first phase of the project will enroll 700 workers from across Cairo, Giza, Dakhalia, Qalyubia, Kafr El Sheikh, Gharbia, and Menoufia who register online for the program.

GREEN ECONOMY-

#1- Our annual carbon emissions from transport cut by 1.1 mn tons: Projects implemented under the government’s Nexus for Food, Water and Energy (NFWE) initiative launched last year have cut the transport sector’s annual carbon emissions by around 1.1 mn tons annually, according to Transport Minister Kamel El Wazir, speaking at the NWFE’s first annual stocktake yesterday, Hapi Journal wrote. Wazir described the transport as having the second highest impact on the environment.

#2- We’ve got plenty of capital lined up for our planned NFWE water projects:Water projects under the NFWE initiative attracted some USD 2.3 bn in funds, surpassing the initial target of USD 1.6 bn, according to Al Shorouk, citing the African Development Bank’s director Mohamed El Azizi. The funds will be funneled into renewables-powered seawater desalination projects and initiatives to provide irrigation using solar energy.

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7

PLANET FINANCE

EGX reaches fresh record high as currency fears mount

The EGX30 hit a fresh high (again) ahead of the expected devaluation: The value of the EGX30 index is continuing to reach new heights as investors pile into alternatives to LCY cash deposits in response to the prolonged currency uncertainty fuelled by widespread anticipation of another devaluation in the coming weeks. The benchmark index climbed 2.1% yesterday to close just shy of 25k, continuing an unprecedented bull run in Egyptian stocks which received a further boost in recent weeks by CBE measures to curb FX use and the war in Gaza.

Gold prices are also continuing to march upward: The price of 24-carat gold has now climbed above EGP 3,100 per gram after surpassing the EGP 3k mark for the first time ever a week ago. Gold prices have soared 63% since the beginning of the year.

EGX30

24,900

+2.1% (YTD: +70.6%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,137

+0.5% (YTD: +6.3%)

ADX

9,575

-0.3% (YTD: -6.2%)

DFM

3,995

+0.3% (YTD: +19.7%)

S&P 500

4,514

+0.1% (YTD: +17.6%)

FTSE 100

7,504

+1.3% (YTD: +0.7%)

Euro Stoxx 50

4,341

+0.9% (YTD: +14.4%)

Brent crude

USD 80.61

+4.1%

Natural gas (Nymex)

USD 2.96

-3.3%

Gold

USD 1,984.70

-0.1%

BTC

USD 37,030.07

+1.3% (YTD: +123.7%)

THE CLOSING BELL-

The EGX30 rose 2.1% at yesterday’s close on turnover of EGP 3.2 bn (20.4% above the 90-day average). Regional investors were net sellers. The index is up 70.6% YTD.

In the green: CIRA Education (+11.1%), Sidpec (+6.8%) and Mopco (+5.7%).

In the red: Palm Hills Development (-2.4%), GB Corp (-1.7%) and Madinet Masr (-1.6%).

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Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard
8

BLACKBOARD

Egypt’s executive education industry is adapting to new business realities

Executive education in Egypt rises above the “pains”: Executive education has been getting increased traction in recent years, while competition has picked up within the broader learning and development sector. There is broad consensus among the major education service providers that the executive education sector, and learning and development (L&D) at large, represents a substantial market with considerable untapped potential — albeit lacking concrete figures to demonstrate its substantial market value. Even though covid-19 and the weakening EGP took a toll on the executive education sector with some players leaving the market entirely, corporates and education service providers say that education is a necessity, not a luxury amid a challenging environment. Navigating the challenging terrain lies in mastering the art of “agility” — the capacity to morph and adapt to the ever-changing, turbulent market dynamics that Egypt is no stranger to.

REFRESHER- What’s executive education again? Executive education is a type of post-graduate education that is geared towards helping executives, business leaders and professionals work towards enhancing their skillsets. Executive education is a “mixture between scientific knowledge, experiential knowledge and relatability to a certain business. The relatability factor and the application factor is a bit higher than what you can get from a PhD or a masters degree, or what you can get from a certificate or a continuing education degree,” Manager at the AUC School of Business Executive Education Yasmin Khalil told Enterprise.

It is a promising market: The exact size of the market is difficult to determine given the unavailability of financial disclosures. However, we were given rough estimates: “We have our numbers in terms of our alumni that we have gathered throughout the years, it's more than 4k alumni, but that’s only ours, if we add the AUC business school and the School of Continuing Education, it will be in the hundreds of thousands,” according to AUC’s Senior Director of Executive Education at the School of Global Affairs & Public Policy (GAPP), Mohamed Fahmy. The GAPP Executive Education Program boasts over 200 programs, engaging a participant base of 4k individuals and delivering a total of 25k training hours.

…with lots of potential: “In terms of the potential of the market, we’re talking about the whole workforce of the country, mns of people that need this kind of intervention. The typology of intervention varies from one sector to another. But in our case, working with the state, 6 mn employees work for the different government entities. This is just the state. If we add in the civil society and the private sector, we’re talking about more millions that need this type of intervention. The market is just massive in Egypt,” Fahmy tells us.

Financing and resources are often a pain point: GAPP ExEd primarily focuses on upskilling individuals in the public sector and civil society — both sectors that frequently lack sufficient funding and resources for self-financed training, unlike the private sector. “Sometimes there are great ideas and people know what they want to enhance their abilities, but they’re stuck when it comes to financing or being able to create their own resources for that particular training or opportunity,” Fahmy says. GAPP ExEd tries to bridge the gap between donors and recipients, aligning their interests, and securing funding stands as a key opportunity, marking success when both their visions converge.

ExEd also grappled with difficulties amid the economic challenges: The market experienced several setbacks this year due to the devaluation and the FX crunch, prompting some “big” players in the sector to exit the market entirely, Executive Education Director at ESLSCA Wael Farag told us. Currently, industries are grappling with concerns related to “supply chain management and sustainability in supply chain” — issues emblematic of the current economic situation, to which corporations turn to education providers for help, according to Farag.

Education providers should capitalize on agility: “Education is not a luxury anymore because of the shifts that happen daily in the economic scene. They need programs agile enough to address all the needs resulting from recent changes. Executives need to be well-equipped to adapt and thrive,” Farag tells us.

Sustainability + digital transformation were (unsurprisingly) the trending topics for ExEd this year: the global — and local — shift towards being sustainable and having a competitive digital infrastructure trickled down to individuals and corporates who had to adapt to new ways of operating, embracing eco-friendly practices, and upgrading their digital capabilities to stay relevant in this evolving landscape, Farag told us. Individuals and corporates are also increasingly “interested in making AI relevant in their own working places,” according to Fahmy.

Education service providers need to develop programs that are malleable and could cater to the ever-shifting needs of corporations and individuals. “With the very dynamic market we’re in, corporates sometimes have to shift or change the structure of the training or needs, so they need a training provider that has agility to be able to redirect the training or change times or dates,” HR Programs Manager at the AUC School of Business Executive Education Shireen El Kaluobi told us.

Your top education stories for the week: Nahdet Misr inks funding agreement for educational project: Publishing house and educational services provider Nahdet Misr will receive a EUR 3.5 mn grant from Germany’s Facility Investing for Employment to help establish the Ta’heal International Academy for vocational education and training, it said in a press release (pdf).

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CALENDAR

NOVEMBER

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

22 November (Wednesday): Deadline to apply to FRA for credit rating license.

22 November (Wednesday): The EGY-GCC Business Forum opening session.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

23 November (Thursday): The Saudi Egyptian Real Estate Investment Conference.

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

Signposted to happen some time in November:

  • Bidding deadline for 5 gold mine concessions in the Eastern Desert (TBC).

DECEMBER

1-3 December (Friday-Sunday): Egyptian expats vote in the presidential election.

4-7 December (Monday-Thursday): Egypt Defence Expo, Egypt International Exhibition Center.

9-15 December (Saturday-Friday) :The Engineering Export Council of Egypt’strade mission to Saudi Arabia.

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

10-12 December (Sunday-Tuesday): Voting in presidential election takes place in Egypt.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

20 December (Wednesday): End of sugar export ban.

21 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

Signposted to happen sometime in December:

  • Gov’t expects to finalize sale of a stake in military-owned bottled drinks company Safi
  • Gov’t expects to finalize stake sale for military-owned fuel retailer Wataniya.
  • Gov’t expects to finalize sale of Zafarana wind farm
  • Kenyan trade conference in Egypt.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

4Q 2023: EGX to launch a shariah-compliant index.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

2024: Standard Chartered Bank to open a branch in Egypt.

25 February 2024 (Sunday): Deadline for bidders for oil and gas expansion in the 23 new regions.

Q1 2024: Opening of the new developed Pyramids Plateau in Giza.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to start operations.

2024

JANUARY

7 January (Sunday): Coptic Christmas.

17 January (Wednesday): A delegation of Egyptian companies to visit Istanbul.

25 January (Thursday): Revolution day.

FEBRUARY

11 February (Sunday): The deadline to apply for the Chicago Booth Executive Program

APRIL

9 April (Tuesday): Eid El Fitr (TBC).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (TBC).

29 May (Wednesday): Chicago Booth Executive Program

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day.

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day.

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

6 October (Sunday): Armed Forces Day.

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