Good morning, all, and a very Merry Christmas to everyone celebrating. The news slowdown has come to halt thanks to two pretty big pieces of news that came in during the early hours of the morning — Egypt and the IMF reached a staff-level agreement on the fourth review of the USD 8 bn loan program and Beltone Holding announced its second mega capital increase in as many years.

WATCH THIS SPACE-

#1- Your mobile and internet plans are about to get even pricier: The National Telecom Regulatory Authority has given telecom operators the greenlight to hike prices of their mobile and internet services by up to 30%, a government source told EnterpriseAM. The move comes a little over two weeks after Telecom Egypt and Egypt’s other three other telecom operators hiked the prices of their home internet and mobile services by up to 31%.

#2- Oil Ministry eyes higher Israeli gas imports: The Oil Ministry plans to increase gas imports from Israel by 17%, with daily inflows expected to rise by 170 mn cubic feet per day starting in January 2025, an unnamed government official told Al Arabiya. Israeli gas flows to Egypt reached 980 mn cf this week.

PSA-

Improve your financial literacy with the CBE’s new campaign: The central bank has launched a financial literacy campaign to help citizens make informed financial decisions and build trust in the banking sector.

WEATHER- Cool weather continues in Cairo today, with a high of 20°C and a low of 11°C, according to our favorite weather app. The Egyptian Meteorological Authority is expecting heavy dusty winds to hit various areas of the country including Greater Cairo and Alexandria.

It’s about the same in Alexandria, with a high of 19°C and a low of 11°C.

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HAPPENING TOMORROW-

The MPC’s final meeting of the year: The Central Bank of Egypt’s Monetary Policy Committee will meet tomorrow to review interest rates. The committee has left rates unchanged for five consecutive meetings this year, since the committee delivered a 600 bps rate hike following a surprise monetary policy meeting in March in conjunction with the float of the EGP and a larger loan package from the IMF being approved soon after.

The polls are in: The MPC is expected to leave interest rates unchanged amid ongoing price volatility, mixed signals in inflationary trends, and the depreciation of the EGP against the greenback, according to our poll of ten analysts and economists.

EGP WATCH-

We can expect the USD to trade between EGP 48-52 through 1Q 2025, CFI Financial research head Ahmed Nashy told Al Arabiya, adding that the EGP’s recent decline against the USD was driven by the greenback’s strength globally alongside liquidity shortages in the Egyptian market.

Other forecasts suggest further declines in the EGP’s value could be on the table: Fitch Solutions forecasts the USD to trade between EGP 50-55 in 2025, driven by factors such as the USD’s strength and Egypt’s external debt obligations, Fitch Solutions’ director of MENA country risk Ramona Moubarak told Asharq Business.

PLUS- Rate cuts unlikely before 2H 2025: Nashy sees the central bank holding interest rates steady throughout 1H 2025 — in contrast to the majority of analysts we polled earlier this week, who expect the CBE’s cutting cycle to begin in the first half of the year.

REMITTANCES-

Remittances from Egyptians abroad hit USD 23.7 bn in the first ten months of 2024, up 45.3% y-o-y, according to a statement (pdf). Monthly inflows jumped 68.4% y-o-y to USD 2.9 bn in October, while the July-October period saw an 80% y-o-y rise to USD 11.2 bn.

SPEAKING OF SENDING MONEY FROM ABROAD- The Central Bank of Egypt has launched a new service allowing instant fund transfers to Egypt from anywhere in the world, according to a promotional video (watch, runtime: 1:15). Users can initiate transfers via international agents, service providers, or their mobile apps by entering transfer details. Funds can be sent to bank accounts, bank cards, or e-wallets, with InstaPay recipients receiving instant notifications once the money arrives.

The service is currently accessible through select banks and currency exchange offices in Saudi Arabia, UAE, Jordan, Qatar, Kuwait, Oman, and Bahrain, with plans to expand to more countries soon.

REAL ESTATE–

Real estate interest rates to stay at 15%: The Housing Ministry will extend its 15% cap the interest rate on installments for real estate developers for the year to come, Housing Minister Sherif El Sherbiny is quoted as saying by Hapi Journal. The cap was introduced back in August to reduce financial burdens on developers and allow for faster project completion.

TECH-

Commvault opens news center of excellence in Cairo: Global data protection solutions provider Commvault has inaugurated its new center of excellence in Cairo, according to statements from the company and the CIT Ministry. The new center will “leverage the region’s multilingual and technical talent, enabling Commvault to swiftly address customer needs and support its global clientele.”

CIRCLE YOUR CALENDAR-

#1- The gov’t is rolling out an online system for building permit applications in Egypt’s new cities starting January, the Housing Ministry announced in a statement. The move aims to facilitate the process of investing in new cities.

Remember: The government has been working hard of late to jumpstart the constructionindustry through swifter permit issuances, support for contractors, and simplified financing.

#2- SCZone opens submissions for new desalination PPP: The Suez Canal Economic Zone (SCZone) has invited companies to submit prequalification applications to design, finance, build, operate, and maintain a new seawater desalination plant through a public-private partnership, according to a press release (pdf). Interested parties must submit an application by 24 February.

We saw this coming: The SCZone has been preparing to offer its first water desalination PPP since at least October, with more desalination plants expected to be offered early next year.

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-

Two stories are capturing the attention of the international pages this Christmas morning — a Russian cargo ship sinking and a tech glitch delaying hundreds of flights.

A Russian cargo ship sank south of Spain on Monday night after an explosion in the engine room. Two crew members are still missing, while the remaining 14 have been rescued. Russian authorities said the vessel, owned by the Russian Defense Ministry-linked shipping company Oboronlogistika, was en route to another Russian port carrying cranes for port infrastructure. Ukraine claimed the ship was heading to Syria to transport weapons and equipment amid Moscow’s reported military drawdown from the country. (CNN | BBC | Financial Times | The Guardian | Reuters)

MEANWHILE- Some 900 American Airlines US flights were delayed thanks to a tech glitch, disrupting travel for thousands. (CNBC | CNN | Washington Post)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look at the year the infrastructure sector had in 2024, charting its ongoing recovery after a couple years of strong macroeconomic headwinds.