Cabinet unveils fresh package of tax facilities

1

What We're Tracking Today

Madbouly warns of entering a “war economy” mode

Good morning, friends. We have a packed issue for you this morning led by the Madbouly cabinet’s presser, where a number of officials took the stage to unveil fresh tax facilities and comment on the regional situation and what it means for Egypt.

Madbouly warns of entering a “war economy” mode: The Madbouly government is taking its precautions in case regional tensions escalate into a full blown regional war and we’re forced to enter war economy mode, Prime Minister Moustafa said during his weekly presser yesterday. “The situation is changing daily. The region is experiencing a state of extreme uncertainty,” he said.

The warning signs: Oil prices have seen a 10% increase over the past week, he said, adding that the price could jump to over USD 100 per barrel if things continue to escalate.

Egypt has not taken part in the civil war in Sudan. The Foreign Ministry denied claims made by RSF leader General Mohamed Hamdan “Hemedti” Dagalo about an Egyptian aircraft taking part in the civil war in Sudan. Egypt continues its efforts to put an end to war, protect civilians, and push the international community to send aid to those affected, the ministry said.

WATCH THIS SPACE-

Actis to finalize Gabal El Zeit acquisition by the end of 2024? Ongoing negotiations between the Madbouly government and UK-based private equity giant Actis to purchase the 580-MW Gabal El Zeit wind farm are expected to yield an agreement by the end of this year, unnamed government sources told Al Arabiya. The sources added that negotiations for the Zafarana project — which is now being split in two — remain ongoing.

More details about the in-the-works acquisition have emerged: The British investor will invest to extend the wind farm’s lifespan by an additional ten years, according to the sources. Negotiations in recent weeks have also reportedly revolved around the state’s desire to increase the value of the acquisition — which the IMF projected in March to be around USD 339 mn.

But this isn’t the first time we’ve heard about an impending stake sale: The Gabal El Zeit and Zafarana wind farms have been on the privatization short list since our privatization program was relaunched in February 2023. Actis had reportedly completed its due diligence and was lining up financing for its planned acquisition of the Gabal El Zeit project earlier this year — the IMF was expecting both sales to conclude before the current fiscal year rolled around.

SPEAKING OF PRIVATIZATION- Can we see progress soon? The Madbouly government is gearing up to announce a number of transactions and fresh offerings part of the privatization program, Madbouly said.

HAPPENING TODAY-

#1- Attention, EV aficionados: The three-day EVs Electrify Expo and Conference will open its doors today at the Egypt International Exhibition Center, bringing together over 70k visitors from over 50 countries, 54 exhibitors, 100 companies, and 50 speakers who are working to shape the EV industry. Major global players like Tesla, BMW, Mercedes, BYD, and Renault will showcase their latest electric vehicle models. Attendees will also have the chance to test drive EVs and experience cutting-edge technology firsthand through interactive exhibits. Free registration is available on the event’s official website.

#2- It’s day one of the Egy Health Expo, set to kick off this morning and run until Saturday. Over 44k visitors, 460 exhibitors and sponsors, and 100 speakers will be in attendance this year for one of the “largest and most influential events in the Middle East dedicated to the health market.” Alongside the expo, and also at the Egypt International Exhibition Centre is the Egy Dental Expo that will run throughout the same period. You can register on the event’s website.

PSA-

WEATHER- We’re looking at another cool day in Cairo, with a high of 32°C and a low of 22°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which is looking at a high of 30°C and a low of 21°C.

And over the weekend, expect to see a high of 33°C and a low of 23°C in the capital.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

CIRCLE YOUR CALENDAR-

Civil Aviation Minister Sameh Elhefny is joining BEBA for lunch: The British Egyptian Business Association (BEBA) is hosting a luncheon under the title “Egypt’s Aviation Sector: A Key Catalyst for Investment, Tourism, and Economic Development” with Civil Aviation Minister Sameh Elhefny delivering the keynote address. The event will be held on Monday, 21 October at the Conrad Hotel.

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

ENTERPRISEAM IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. EnterpriseAM — the essential morning read on all the important news shaping business and the economy in Egypt, GCC, and the wider region — is looking for writers, reporters, and editors to help us build out new publications.

NEVER WORKED IN A NEWSROOM BEFORE? We have the EnterpriseAM Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the EnterpriseAM Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing EnterpriseAM stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

THE BIG STORY ABROAD-

Hurricane Milton in the US and the looming Israeli retaliation on Iran are still getting top billing in the foreign press, as dozens were killed by Israeli airstrikes in an escalation of violence in northern Gaza. Meanwhile, Hurricane Milton is approaching landfall as it makes its way to Florida, though it has dropped to a Category 4 storm. (France24 | Reuters)

US President Joe Biden and Israeli Prime Minister Benjamin Netanyahu spoke yesterday as Biden looks to rein in the latter’s response to Iran’s airstrikes on Israel, and while it was the first phone call in over a month, there were no clear conclusions on next steps. Israeli Defense Minister Yoav Gallant promised a “lethal, precise, and surprising” retaliation against Iran, Reuters reports.

The US is trying to propose a milder response, like a fresh round of sanctions against Iran, sources told Bloomberg.

IN THE BUSINESS PRESS- Several stories are getting attention:

BlackRock is eyeing an acquisition of investment firm HPS Investment Partners, as the latter weighs an IPO, with several others looking into possibly acquiring the firm. (FT | Bloomberg )
Indian business tycoon and chairman of Tata Group Ratan Tata died yesterday aged 86. He ran one of India’s largest businesses for two decades. (FT | BBC | The Guardian)
OpenAI wants to restructure as a public benefit corporation to stave off potential hostile takeovers, following in the footsteps of rival AI startups Anthropic and Elon Musk’s xAI. (FT)
The US Federal Reserve’s minutes from its last policy meeting indicate some divide and caution towards aggressive rate cuts, with several supporting only a quarter-point cut. (Reuters | WSJ)

AND- The latest Nobel prize for chemistry went to US scientists David Baker and John Jumper and British Demis Hassabis for their work decoding the structure of and designing proteins using AI. Hassabis is CEO of Google’s AI research arm DeepMind, where Jumper also works as a senior research scientist. (Reuters | NYT | CNN)

Gov't unveils the first part of a wider package of tax facilities

Tax facilities 1.0: The Madbouly government announced a long list of tax facilities during a presser yesterday (watch, runtime: 1:20:21). Finance Minister Ahmed Kouchouk yesterday unveiled the first phase of a package of tax facilities aimed at simplifying the tax system and easing the burden on taxpayers.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Everyone weighed in: The package was discussed with representatives from key players in the economy —- over the past three weeks, Kouchouk held meeting with representatives from the Federation of Egyptian Industries, the Federation of Egyptian Chambers of Commerce, the Egyptian Tax Society, and the Micro, Small and Medium Enterprise Development Agency, among many others. The package was amended based on the discussions held to meet the needs of taxpayers and investors.

Remember: Kouchouk and Prime Minister Moustafa Madbouly gave us a glimpse into the tax facilities last month.

An ambitious implementation timeline: Kouchouk promised that we’ll see the entire package implemented during the current fiscal year ending June 2025.

0.25% HEALTHCARE TAX REVISED-

The cabinet agreed to change up how the solidarity tax is calculated, Investment Minister Hassan El Khatib said. The amendments will see the 0.25% healthcare tithe to fund the universal healthcare system calculated based on companies’ net income, instead of their total revenues. The amendments are now being discussed with various stakeholders, said El Khatib.

FOUR KEY GOALS-

The package introduces 20 key reforms all revolving around four primary goals: easing tax and financial burden on taxpayers, unifying and improving tax services, and clearing the backlog of tax disputes, according to a presentation Kouchouk shared during his presser.

Here’s a rundown of the most important reforms:

A simplified tax system for SMEs: Businesses with an annual turnover of up to EGP 15 mn will pay a simple flat tax — that starts at an annual EGP 1k and goes up to EGP 225k depending on how much they are making — that covers income tax, value-added tax, duty tax, and others.

Two sweeten the pot further: Eligible businesses will not be audited for five years and will not be asked to pay back taxes compiled prior to joining the formal sector. They will also submit quarterly VAT returns instead of monthly VAT returns and labor income taxes will be settled annually, rather than 17 times a year — 12 monthly settlements, four quarterly, and one annual.

We knew this was coming: Deputy Finance Minister for Taxes Sherif Al Kilani, last month, spoke to Enterprise about the facilities telling us that they “represents a major shift in dealing with taxpayers.”

Launching a central clearing system to settle taxpayers’ obligations and dues to government entities, including non-tax and customs entities.

Putting a cap on late payment penalties so that the penalty does not exceed the original amount of tax due. The government will also scrap any late fees due to audit delays or drawn-out disputes.

Efforts to integrate the informal economy: The government will not ask businesses to pay any taxes prior to their integration into the formal economy in its efforts to push more businesses to go formal.

A second chance: Taxpayers who failed to submit their tax reports between 2020 and 2023 will be allowed to file them within a specific time frame without facing any penalties. Leniency for erroneous returns filed between 2020 and 2023, which can be corrected and refiled without penalty.

Renewing the Tax Dispute Resolution Law: The cabinet, back in June, approved a draft decision to renew the Tax Dispute Resolution Law until January 2025. The extension has been forwarded to the House since and is awaiting its approval.

The details: The law, which had passed the House in September 2016, removes tax dispute cases from the courts and hands them over to committees to seek amicable settlements. The law was originally limited to a one-year period but has been extended time and time again. Some 17k disputes, amounting to over EGP 15.5 bn, have been settled in the ten months between August 2023 and May 2024.

Also part of the facilities: Efforts to make it easier for taxpayers to receive their VAT refunds, raising the threshold for requiring transfer pricing studies for transactions between related entities has been doubled to EGP 30 mn annually, and simplifying the process of filing tax returns, sharing audit guidelines ahead of time.

The first of many? Kouchouk earlier this week said that the government will introduce new incentives supporting the private sector following the implementation of the current package.

OUR FIRST LOOK AT THE NEW EXPORT SUBSIDY PROGRAM-

What can we expect from the revamped export subsidy program? The revamped program aims to enhance transparency by clearly reflecting the allocated budget for it, Investment Minister Hassan El Khatib said yesterday. The new program will also prioritize high value-added products and offer more than cash payouts — it will offer land and tax breaks. The state will allocate a specific amount for each export sector, the figure will increase when the sectors increase their local component ratio.

Faster payouts: The revamped program will ensure payouts are disbursed no more than three months after the required paperwork is done.

Inflation in Egypt accelerates for a second month in September to 26.4%

Inflation nudges higher for the second consecutive month in September: Annual headline urban inflation ticked up for a second month, rising 0.2 percentage points from the month before to 26.4% in September, according to data from state statistics agency Capmas. Despite inflation picking up, the figure still places the rate of inflation a whole 11.6 percentage points below the record 38.0% recorded during the same period last year.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Driving the uptick were energy costs: Electricity, gas, and other fuel prices accelerated at a rate of 34.8% during September, up from 15.5% in August. Behind the increase was a 50% rise in the price of subsidized butane gas cylinders and electricity price hikes that came into effect in September, this came on top of fuel price hikes of up to 15% that came into effect in late July.

Food and beverage prices helped stem the uptick in inflationary pressures: Food and beverage prices — the largest component of the basket of goods and services used to calculate headline inflation — rose at a softer rate of 27.7% y-o-y in September, down from 29.0% in August. On a m-o-m basis, however, food prices climbed by 2.6% in September — up from 1.8% the month before — contributing to the 2.1% m-o-m rise in urban inflation, the same level seen in August.

Quite a few analysts seemed to think that inflation would go the other way: A Reuters poll of 19 analysts forecasted annual urban inflation easing to 26.0% — 0.4 percentage points below the month’s actual reading. A CNBC Arabia poll of 10 economists revealed a split outlook for September’s inflation figure, with half of those surveyed penciling in up to a 1.5 percentage point dip in inflation due to a favorable base effect.

Annual core inflation — which excludes volatile items like food and fuel — inched down, with the Central Bank of Egypt recording an annual core inflation of 25.0% in September, down 0.1 percentage point from 25.1% in August. However, monthly core inflation went in the reverse direction, picking up 0.1 percentage points to 1.0%.

The inflationary road ahead is positive — albeit bumpy: Some, including Capital Economics MENA Economis t James Swanstom, see inflation inching up for the third consecutive month in October as “recent price hikes feed in.” However, the outlook for the rest of 4Q is more positive and even more optimistic walking into 2025 — inflation is expected to see “a sharper drop back into single digits in 1Q 2025.”

But not everyone agrees that we will necessarily see inflation dipping by the end of the year: Others see the inflationary trend potentially taking a bit longer to unravel, including Al Ahly Pharos analyst Esraa Ahmed, who warns of some potential “inflation stickiness” to come in the last quarter. Ahmed points to seasonal factors to do with education, a possible fuel price hike, and the absence of a significantly positive base effect.

To cut, or not to cut? The slight acceleration in inflation for the month makes it ever more likely that the central bank’s Monetary Policy Committee will keep rates as they are when it meets in exactly a week’s time. Economist Mona Bedair agrees, writing that “given the current inflation dynamics, a thorough assessment is needed,” adding that “while global monetary easing may create favorable conditions for reducing rates, the CBE's primary mandate remains to stabilize inflation and anchor inflation expectations.”

Geopolitics may also throw a spanner in the works, according to Ahmed, who describes recent developments — presumably in relation to Israel’s ever-expansive war on neighboring countries — that are making their mark on oil and wheat prices. These developments could further pressure the central bank to put any plan to start easing rates on hold, explained Ahmed.

Remember: The central bank left interest rates unchanged in its last meeting in September, citing cooling domestic and global inflation, an uncertain local trajectory for commodity prices, and slow economic growth. Rates have been stable since March, when the central bank delivered a jumbo 600 bps rate hike that accompanied the float of the EGP.

The international press also picked up the story: Bloomberg | Reuters.

Auto sales fall for the first time in five months in August

Auto sales take a dip in August: Auto sales in August dropped 12% m-o-m to record 10k vehicles, down from 11.4k in July, according to figures from the Automotive Marketing Information Council (AMIC) seen by Enterprise. This marks the first fall in total vehicle sales after four consecutive months of monthly increases following a 43% m-o-m drop in March that saw the sale of just 4.2k vehicles — the lowest number of auto sales we’ve seen since we started keeping track in January 2019.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The decline was driven by car and bus sales: Passenger car sales registered a 14.4% m-o-m decline to 8.3k units. Buse sales fell to 604 vehicles from the 643 recorded in July. Meanwhile, truck sales were up, rising to 1.1k from 1.0k in July.

On a yearly basis: Auto sales in August came in 25% higher than the 8k units sold during the same month last year. The growth was driven by a 33.9% y-o-y increase in car sales and a 22.0% y-o-y rise in bus sales. Truck sales took a 16.3% tumble y-o-y.

Don’t forget the fine print: AMIC figures reflect data contributed by member distributors, who include most, but not all, industry participants.

INDUSTRY INSIDERS WEIGH IN-

A sharp decline in car imports is a big part of the issue: The drop in sales was driven by the decline in imported cars entering the country and insufficient numbers of locally assembled cars, the head of the Federation of Chambers of Commerce's auto division Nour Darwish told Enterprise.

ICYMI: While the government in August reportedly lifted import restrictions on 12 of 13 non-essential goods it had previously prohibited banks from issuing credit lines for, cars remained the one non-essential goods that banks were not able to issue a credit line for. Industry players have attempted to work around restrictions via proposals for a 10k monthly car import quota, while the government has recently taken steps to resume the issuance of ACID numbers — a unique ID number that importers obtain for their shipments — for car dealerships and diplomats.

High prices are also playing a role: While the fall in car imports is a key factor in declining vehicle sales, their high price point is likely the most important reason for the fall in overall sales, said Khaled Saad, head of the Association of Automobile Manufacturers. Economy cars — which make up 70% of market demand, according to Saad — have recently seen prices rise to between EGP 800k and EGP 1 mn — up from EGP 200k to 400k only a few years ago.

Banks are reluctant to finance car purchases: One piece of the puzzle is that lenders are increasingly leery of offering the auto loans that once supported the market, Saad said. This comes down to the disjunction between current prices and high interest rates, on the one hand, and stagnation in average incomes, on the other.

New amendments make it tougher to take advantage of car import facilities for those with disabilities

Changing up the system for car imports for people with disabilities: The cabinet yesterday approved a draft decision put forward by the prime minister to amend the executive regulations of the law that governs the rights of people with disabilities, changing up the vehicle import system for those with disabilities, according to a cabinet statement.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

ICYMI: This marks the latest step in a wider drive to close a loophole that some have used to import cars without paying the necessary fees.

A NEW SYSTEM-

More paperwork: Individuals with disabilities interested in obtaining a vehicle without customs or VAT will need to obtain a disability proof card and integrated services card from the Social Solidarity Ministry, in coordination with the Health Ministry. They will also need a medical report from a Health Ministry-approved provider showing that they are capable of driving or being driven by another person.

New applicants only: All persons applying for the exemptions will need to prove they have not claimed an exemption in the previous five years and must have had access to a bank account with the Nasser Social Bank or other bank approved by the Central Bank of Egypt for a year prior to their application. Additionally, no powers of attorney will be accepted for managing the vehicle.

Plus, restrictions on the vehicle itself: The vehicle cannot be imported from a freezone. The amendments also introduce restrictions on the engine capacity of the vehicle, prohibiting the importation of vehicles with more than 1.2k cc for cars powered by petrol, diesel, or hybrid engines and 200 kw for electric vehicles. Vehicles with turbocharged engines are also prohibited.

Closing the loophole: If the car is found to have been sold or handed over to someone other than the person who initially claimed the customs exemption the relevant fees will apply.

CABINET ALSO APPROVED-

#1- The cabinet approved a draft presidential decree amending the executive regulations governing private and national universities, splitting the council governing the universities into two — with one governing private and one governing national universities. The councils will be responsible for assuring and developing the quality of education at their respective universities, including via annual performance reports. The higher education minister is now tasked with appointing the heads of the two councils, which will serve renewable two year terms.

#2- The cabinet approved the formatting of condition booklets and business contracts prepared by the Finance Ministry. This follows President Abdel Fattah El Sisi’s directive to unify the formulation of contracts made internally within the government or with outside parties.

MB Engineering-led consortium acquired 51% in Maven Cables

MB Engineering-led consortium snaps up 51% of Maven Cables: A consortium led by industrial outfit MB Group subsidiary MB Engineering has acquired 51% of local electric cables and building wires manufacturer and local property developer Tabarak Developments subsidiary Maven Cables in a EGP 105 mn transaction, advisor Synergy Capital Managing Director Mohamed Seddiek told Enterprise, adding color to disclosures from the buyers (pdf) and advisor (pdf).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Who gets what? The majority stake is evenly split between MB Engineering and the rest of the consortium, according to Seddiek. Maven is now an MB Engineering subsidiary, with MB Engineering taking over Maven’s management, monetary and operational policies.

Remember: We first heard that MB Engineering was gearing up to submit a mandatory tender offer for a controlling stake in an unnamed industrial company last month.

Where’s the money going? The consortium will invest EGP 102 mn in the company’s working capital, which is poised to bring the company’s total enterprise value to EGP 297 mn.

Advisors: Synergy Capital was the transaction’s sole financial advisor, while Eagle Advisors served as the transaction’s independent financial advisor.

CIT Minister appoints Daila El Baz as Egypt Post chairperson

New face at the helm of Egypt Post: CIT Minister Amr Talaat has appointed deputy chairman of the National Bank of Egypt Dalia El Baz (LinkedIn) as the new chairperson of Egypt Post and CIT Minister advisor for postal services, according to a statement. El Baz is taking over from Sherif Farouk, who was named Supply Minister in the latest cabinet shuffle. El Baz brings over 30 years of experience to the position — she held leadership positions at the NBE and Barclays.

Talk shows cover the announcement of fresh tax facilities

It was all about the recently-announced package of tax facilities on the airwaves last night. Finance Minister Ahmed Kouchouk yesterday announced a long list of tax reforms that aim to reduce tax burdens and increase clarity for taxpayers. Ala Masouleety’s Ahmed Moussa (watch, runtime: 8:32) had the story and we have the details in the news well, above.

The end goal: The facilities aim to alleviate non-tax financial burdens, Investment Minister Hassan El Khatib said, adding that the ministry is slowly working to address the many fees and charges investors face in Egypt. Moussa had the news (watch, runtime: 7:05).

Building trust: All tax disputes predating the announcement will be settled as part of wider efforts to build trust with taxpayers and resolve disputes in the simplest possible manner, cabinet spokesperson Mohamed El Homsani told Moussa (watch, runtime: 2:50). El Homsani also confirmed that overdue payments under the export subsidy program will be scheduled for payment in the coming period.

Chevron to start drilling a new gas well soon

ENERGY-

Chevron to drill USD 150 mn gas well next month: US gas giant Chevron will begin drilling its Singer exploratory gas well in the Mediterranean next month with investments of USD 150 mn, Asharq Business reports, citing an unnamed government official. The project is part of a broader plan to develop gas reserves in the Narges field, which is estimated to contain 2.5 tn cbf of extractable gas.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

It looks like the Oil Ministry’s efforts are bringing home the goods: After a costly few months of energy imports, the Oil Ministry is upping its efforts to boost local production starting 2025 by offering new incentives to energy players that include increasing production sharing ratios with foreign companies in exchange for new investments, enhancing exploration efforts, and increasing extraction rates. Alongside this are efforts to proactively clear arrears, which has seen the state pay out over USD 2.8 bn since the float of the EGP in March, with many more to come, a government source told us at the end of last month.

BANKING-

Trimming returns on USD CDs: State-owned Banque Misr and National Bank of Egypt (pdf) reduced interest rates on their high-interest USD certificates of deposit by 0.5 percentage points, the lenders announced yesterday. NBE’s Al Ahly Fawran and Al Ahly Plus USD certificates now offer annual returns of 8.5% and 6.5%, respectively. Similarly, Banque Misr’s Al Qema and Elite certificates now offer annual returns of 8.5% and 6.5%, respectively.

Remember: The lenders rolled out high-interest three-year USD certificates last year designed to attract FX especially from remittances.

AND- Both lenders were among the top 10 African banks of 2024: The African Business Magazine ranking put NBE in second place and Banque Misr in sixth. The Arab African International Bank, CIB, and QNB Al Ahli made it to the top 20.

DEBT-

Raya IT secured EGP 1.2 bn worth of credit facilities from Suez Canal Bank, under a cooperation protocol inked between the two sides, according to a statement from the lender. The fund will support Raya IT’s operations and expansion plans.

Google faces prospect of restructuring following antitrust case

Google could be forced to implement “behavioral and structural remedies” designed to limit the tech giant’s monopoly on online searches, after the Department of Justice (DoJ) said in a court filing it is considering several measures following a landmark court decision in August that ruled that the company was in violation of US antitrust laws. The DoJ’s 32-page filing comes on the heels of another defeat for Google parent company Alphabet after a California court ruled that the company had to open its Android operating system to competitors.

(Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The details: The potential remedies could force Google to sell key products, share data, and open access to platforms in what could mark the largest shake-up in the tech sector since an antitrust ruling was issued against Microsoft over two decades ago, the Financial Times reports.

Google would also be prevented from leveraging products such as Chrome, Google Play, and Android to give its search engine a step up over competitors and newcomers to the search engine market. A ban on Google’s USD 20 bn annual agreement with Apple to act as Safari’s default search engine is also on the table, alongside other measures that would force the firm to share data while restricting it from using search results to train AI models and products.

The next checkpoint: US District Judge Amit Mehta, who is presiding over the case, has scheduled hearings on the DoJ remedy requests for April 2025, with a ruling expected by August. Google vowed to appeal and may take the case all the way up to the US Supreme Court, suggesting that the legal battle could drag on for years.

This could be a significant turning point — not just for Google: The reforms could, if implemented, herald major changes in the online queries market where Google currently holds some 90% of market share. The DoJ’s campaign, led by antitrust chief Jonathan Kanter who is also pursuing a separate case against Google’s ad tech division, could mark a turning point for Big Tech regulation after a court overturned the previous antitrust ruling against Microsoft on appeal.

Google described the measures as “radical and sweeping,” arguing that they go beyond the scope of the legal case brought against it, and that they threaten “consumers, businesses and American competitiveness.”

Market reax: Shares of Google’s parent company Alphabet closed down 1.6% yesterday, paring losses after falling as much as 2.8% during intraday trading, according to Bloomberg.

MARKETS THIS MORNING-

Asia-Pacific markets are mostly up in early trading today, led by the HangSeng Index, which is up c.2.4%. Wall Street futures are mixed after the S&P 500 and Dow Jones hit record highs during yesterday’s trading session. S&P and Nasdaq futures are just slightly in the red, while Dow Jones futures indicate the market will open in the green.

EGX30	31,175	+1.1% (YTD: +25.2%)
USD (CBE)	Buy 48.44	Sell 48.58
USD (CIB)	Buy 48.45	Sell 48.55
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,927	-0.8% (YTD: -0.3%)
ADX	9,283	+0.3% (YTD: -3.1%)
DFM	4,422	-0.2% (YTD: +8.9%)
S&P 500	5,792	+0.7% (YTD: +21.4%)
FTSE 100	8,244	+0.7% (YTD: +6.6%)
Euro Stoxx 50	4,983	+0.7% (YTD: +10.2%)
Brent crude	USD 76.68	-0.7%
Natural gas (Nymex)	USD 2.64	-3.3%
Gold	USD 2,627	-0.3%
BTC	USD 60,499	-3.0% (YTD: +43.9%)

THE CLOSING BELL-

The EGX30 rose 1.1% at yesterday’s close on turnover of EGP 4.1 bn (0.1% below the 90-day average). International investors were the sole net sellers. The index is up 25.2% YTD.

In the green: Cleopatra Hospitals (+7.7%), Elsewedy Electric (+4.8%), and Telecom Egypt (+3.6%).

In the red: Credit Agricole (-1.4%), Juhayna (-1.3%), and CIB (-1.2%).

Marian Kaldas, Executive Director of the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes

Marian Kaldas, Executive Director, Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS): Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Marian Kaldas (LinkedIn), executive Director of the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes. Edited excerpts from our conversation:

My name is Marian Kaldes, I am a wife, mother of two, and the executive director of the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes. I am also a lecturer at the Administrative Control Authority’s National Anti Corruption Academy, the FRA’s Financial Services Institute and the Egyptians for Investment & Urban Development. I first studied business administration at the American University in Cairo.

Law was always a big part of my family, with my father and grandfather both being judges. I am also the great granddaughter of Makram Ebied, but unfortunately, my father did not believe that women could succeed in the field of law. After his passing, I decided to pursue law at Cairo University and worked at the Administrative Prosecution Authority and the Justice Ministry. I went on to get my master’s and a PHD in law and was nominated for my current role at ECAS in 2021. I love what I do and I am glad I work in this field, even if I started later in life.

My daily responsibilities differ depending on whether I am at ECAS or teaching. My life at ECAS consists of three main aspects: managing and brainstorming with my team, connecting with investors and businessmen, and observing the legal and business updates in the non-banking financial sector. My time as a lecturer is my favorite part of the week — I teach, interact with, and learn from professionals in both the public and private sectors. I feel that I am able to make a change by contributing to fighting corruption.

Established by a presidential decree, ECAS is an independent center specialized in resolving NBF disputes — the first of its kind in Egypt. The center provides efficient dispute resolution mechanisms and employs specialized arbitrators and mediators to handle with NBF cases. Meaning, instead of having to go to court, businesses can resort to experts to resolve their issues.

There is no single contract in the world without a dispute resolution clause, it's too important to everyone in this field to be aware of conflict resolution. We design and organize training courses for NBFS professionals and lawyers that combine comprehensive legal and business aspects. We invite regulators, lawyers, and dispute resolution experts to give these courses. It's a very effective communication tool to know how to resort to arbitration and what are the alternative dispute resolution tools.

The largest trend in the legal industry right now is definitely green arbitration. The legal sector now reflects a growing commitment to incorporate sustainable practices in arbitration proceedings. Green arbitration encourages practitioners to minimize travel, organize virtual hearings, reduce paper usage through digital and electronic submissions, and promote energy efficient practices during hearings.

I’m an early riser. I like to start my day by connecting with God and praying. After which I take care of my family obligations — meal planning, grocery shopping and so on. I then have a cup of tea while getting ready. My hour-long drive to Smart Village is when I get most of my day planning done. I read EnterpriseAM Egypt to keep up with business updates, check my emails, and make some follow up calls.

The one constant in my day is checking in on my family members. I spend most of my day at work, and so it’s important to check in on my family through a message or a call. At work, I always have a daily check in with my team, they are the pillar of success, so it's essential for me to connect with them and maintain open lines of communication and collaboration and to ensure our goals are aligned.

No two workdays are the same. Since the center is newly established and I am the first director, my responsibilities change day-in-day out. My team and I enjoy taking part in initiatives, including the Young ECAS initiative, where we support young professionals through capacity building and awareness on the available job opportunities in the NBFS sector, and the family businesses initiative, where we support family businesses by encouraging those businesses to draft their family constitution, succession plan among other governance measures, and helping them discover the funding opportunities offered by NBFIs.

On a professional level, I am looking to extend ECAS’ outreach and influence in the arbitration industry in the near future and to raise awareness for the NBFS sector in terms of tools and funding opportunities. I really believe the NBF dispute resolution sector is a hidden gem and businesses have yet to explore the full potential of this sector.

After my work day is over, I love to bake, cook, and read to switch off. Cooking for my family and having the smell of fresh baked goods in my house is something I really enjoy. I also like to allocate 15-20 minutes of my day to read — either a book or an article. Similar to the medical field, I believe reading is especially important for people in the legal field, if we are not updated on the legal and business developments, then we cannot excel in our work.

Books that provide advice on how to be productive and organized while managing stress are my go to. I recommend ones like Deep Work: Rules for Focused Success in a Distracted World by Cal Newport, and Getting Things Done: The Art of Stress-Free Productivity by David Allen.

The best piece of advice I’ve ever gotten came from my family. They taught me to be a woman of integrity, and told me to make integrity my trademark. Another piece of advice that I live by was given to me from Jean-François Gaudreault-DesBiens the dean of the University of Montreal — when I was pursuing my PHD in law. He told us that in order to excel in the legal field, we should never be over-specialized, that we should instead be exposed to economic, political, social and all fields.

CALENDAR

2024

OCTOBER

7-11 October (Monday-Friday): Egyptian-Romanian Business Council Forum, Bucharest, Romania.

10-12 October (Thursday-Saturday): Egy Health Expo, Egypt International Exhibition Center, Cairo.

10-12 October (Thursday-Saturday): The EVs Electricity Egypt Expo and Conference.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

20-22 October (Sunday-Tuesday): Mediterranean Offshore Conference, Alexandria, Egypt.

21-25 October (Monday-Friday): The second iteration of the Global Forum for Population, Health, and Human Development.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

7-9 November (Thursday-Saturday): FinExpo Conference and Exhibition, Cairo.

11-15 November (Monday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

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

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

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

EVENTS WITH NO SET DATE

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

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

November 2024: Egypt to host the World Urban Forum (WUF12).

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

2025

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

Sections

About

Privacy & Support

Get EnterpriseAM daily