Good morning, all. We lead today’s issue with fresh tax amendments, after the House approved amendments to VAT Law on selected items, and news of a USD 658 mn phosphoric acid production plant on the way.

PSA-

The CIT Ministry will begin accepting applications for licenses to manage and operate citizen service centers from 6-31 July at its Smart Village HQ, the ministry said in a statement. Permits to operate within existing licensed centers will also be on offer.

WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 25°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°C.

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how Egypt’s recent gas crunch strained the industrial sector. Check out the story here.

Mark your calendar for the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterpriseadvisory.com to explore sponsorship opportunities

WATCH THIS SPACE-

Israeli natural gas exports to Egypt have increased to 650-750 mn cubic feet per day (mcf/d) starting this week, a government source told EnterpriseAM. After Israel restarted Egypt-bound exports with the reopening of its Leviathan gas field on Wednesday, limited exports only amounted to less than 200 mcf/d and were expected to gradually rise to 850 mcf/d over the coming two months, a government source previously told EnterpriseAM.

SPEAKING OF- Abu Qir Fertilizers and Misr Fertilizers Production Company (Mopco) will gradually restart operations at their plants following the resumption of natural gas supplies, according to an EGX disclosure (pdf) from Mopco and another disclosure (pdf) from Abu Qir.

REMEMBER- Authorities earlier this month temporarily reduced gas supplies to several energy-intensive sectors — including iron, fertilizers, petrochemicals, and aluminum — to prioritize power generation, following the dip in Israeli natural gas imports. In response, the two fertilizer manufacturers earlier this month said they were embarking on intensive maintenance plans at their factories while operations were halted.

The local wheat collection season could come to a premature close, as the government has already begun shutting down some local wheat collection centers, Reuters reports, citing a document from the Supply Ministry. The move comes as purchases are falling short of the government’s local wheat collection target, which the newswire said was set at 4-5 mn tons from the total estimated 10 mn tons of domestic wheat production. Despite the drop in domestic supplies, import volumes also declined during the first half of the year, compared to last year, the newswire reports, citing unnamed officials.

Only 3.9 mn tons have been collected on the back of low volumes being delivered by local farmers, Reuters reports, citing a separate government document. The local wheat harvest season, which began in mid-April, typically runs through mid-August, but remaining centres may shut their doors if they don’t receive any wheat for 3-5 days in a row, according to the document cited by Reuters.

DEBT WATCH-

The Central Bank of Egypt sold EGP 119.1 bn worth of EGP-denominated t-bills during an auction yesterday, according to data from the central bank. The CBE sold EGP 68.4 bn worth of six-month t-bills — nearly double its EGP 35 bn target — and EGP 50.7 bn worth of one-year t-bills. Bills were sold at lower yields than those offered last week — the six-month bills were sold at an average yield of 27.15%, down from last week’s 28.27%, and the one-year bills were sold at an average yield of 24.99%, down from last week’s 25.23%.

CIRCLE YOUR CALENDAR-

Egypt will host a G20 meeting on regional and global food security in September, according to a statement from the Foreign Ministry. The decision to let Egypt — which is not a member state of the G20 — host the meeting “underscores the added value Egypt represents in G20 discussions, the priority given to economic diplomacy in Egyptian foreign policy,” said Assistant Foreign Minister Ragy El Treby.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

Israel’s attack on Iran’s Evin Prison killed dozens: Israel’s attack on Tehran’s Evin Prison last week killed 71 people, Iranian judiciary spokesperson Asghar Jahangir confirmed yesterday. The prison holds political prisoners and foreigners, marking a shift from Israel’s attacks on military and nuclear sites. Victims included administrative staff, military conscripts, detainees, visiting family members, and nearby residents. (Reuters | New York Times | Associated Press | France24)

AND- Another DeepSeek? Chinese tech giant Baidu will open source its Ernie generative AI model today, in what experts are calling China’s biggest AI move since DeepSeek. While some analysts see it as a challenge to US giants like OpenAI and Anthropic, others say its global impact will hinge on security concerns and market trust. “Baidu just threw a Molotov into the AI world,” Epic Loot founder Alec Strasmore told CNBC, adding that it could trigger a price war in AI services.

*** 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: We break down the cabinet-drafted amendments to the Education Law that the House received yesterday.