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First tranche of Ras El Hekma funds and flurry of multi bn investments sets the stage for devaluation

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What We're Tracking Today

Is now the right time for a devaluation?

Good morning, friends. The question on our community’s hive mind this morning: Is today the day that the Central Bank of Egypt will take long-awaited action on the exchange rate?

SPEAKING IN FAVOR-

  • The first payment from ADQ has arrived as part of its USD 24 bn acquisition of the development rights toRas El Hekma and parallel plan to invest an additional USD 11 bn in real estate and other sectors. President Abdel Fattah El Sisi made the announcement yesterday at a previously-scheduled event (watch,runtime: 30:06);
  • Officials are telegraphing that they’ve made significant progress on the state asset sale program, with the expectation being that we could shortly see news of who will buy a stake inWataniya, the military-built filling station chain since transferred to the Sovereign Fund of Egypt;
  • Cabinet is putting USD 41 bn worth of investment in green hydrogen and renewable back on the table, announcing a flurry of MoUs yesterday after months and months of silence on a file that had generated substantial excitement in the business community in late 2022 and early 2023;
  • We have more clarity on BP’s USD 1.5 bn investment program here in partnership with Adnoc.

Throw in word of a multi-bn USD Italian industrial complex and news China wants to set up an industrial zone on the Mediterranean, and the message is clear: Cabinet wants the world to know that Egypt is open for business.

The overhang: Uncertainty on the value of the EGP. Sovereign Fund of Egypt chief Ayman Soliman has long argued that our primary problem is one of sentiment, not the fundamentals. He’s right, in many respects. The market has been looking for catalysts — and only clear movement on asset sales, on hydrogen, and (above all else) on the EGP will be sufficient to restore confidence and start reframing the narrative on the country.

A clear move on FX policy is just what the doctor ordered to capitalize on a string of positive signals.

What the wags are saying: Al Arabiya Business’ Fahima Zayed told viewers that “there are strong rumors … that the float of the EGP will occur within hours” shortly after El Sisi finished his speech (watch, runtime: 5:53). Zayed suggested some in the market think the central bank is looking at something like EGP 38.50 to the greenback should it go ahead with a devaluation today. The EGP strengthened to 46-48 after El Sisi’s announcement from EGP 50 before the president spoke, she said.

SPEAKING AGAINST- We have yet to sign an agreement with the IMF. Is the lender waiting for devaluation (or a float) before closing a staff-level agreement? Or will the central bank wait for an agreement to be in place before moving ahead? We’re not yet on the IMF board’s public agenda.

^^ We have more on all of this in this morning’s news well.

WELCOMING A NEW PARTNER-

We’re honored this morning to welcome AIMS International as our newest commercial partner. Led in Egypt by our friends Zeinab Noureldin and Pauline d’Arcy, AIMS International is a trusted partner for executive search, board services, and leadership solutions. The business in Egypt traces its roots to 1997, when Pauline founded her eponymous consulting firm.

People are the only real asset a business has. It doesn’t matter how shiny your factory is or great the IP you own: People make the brand, the P&L, and the business — whether you’re selling soap, making widgets, or providing a service.

It’s difficult to recall a time in the past couple of decades in which the regional competition for talent has been sharper than it is today. All of us need to pay extra attention to the people we choose to lead, build, and govern our businesses — and to how to retain them.

Like us, AIMS International values people above anything else, and Zeinab, Pauline, and their team are consummate professionals who fundamentally share our values.

AIMS International is joining us as sponsor of our My Morning Routine column — our most popular weekly feature in which we introduce the community to someone we think we should all know. (As always, we remain editorially independent: Our editors and reporters choose who we profile and the questions we ask.)

To kick off this new partnership, we asked Pauline and Zeinab to sit down and answer the same questions we ask all our My Morning Routine subjects. And in view of the competition for talent with Saudi Arabia and the UAE, we asked a few extra questions about how we should all be thinking about recruiting and keeping top talent.

Enterprise remains available to our readers without charge thanks to the generous support of our advertisers including, from this morning, the good people at AIMS International. Please join us in thanking them.


WATCH THIS SPACE-

#1- Italian firm Danieli wants to build a USD 4 bn industrial complex here:TheMadbouly government is looking into a proposal from Italian industrial manufacturer Danieli to establish a USD 4 bn integrated industrial complex for the production of iron and steel products that will create 17k jobs, a cabinet statement said.

But that’s not all, folk: The project will also see Danieli establishing an international training center in Egypt for engineers and technicians and could also attract a further USD 2-3 bn in investments for a green hydrogen plant.

#2- The details of BP's plan to invest USD 1.5 bn have started to become a little clearer: The global energy giant’s plan to invest USD 1.5 bn — which we first heard about last week — will take place over the next three to four years, Bloomberg reports. The news follows BP’s announcement earlier this month that it had formed a JV with Adnoc to target the development of natural gas assets in the country, but the investment will come entirely from BP and the company will continue to hold 70% of its existing interests in Egypt outside of the JV., a BP spokesperson told the business news information service.

Escape to Somabay, where the sun-kissed shores await your arrival. Immerse yourself in the warmth of a perfect vacation, starting each day with the radiant embrace of the sun. Unwind, explore, and create unforgettable memories in this paradise by the sea.

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Energy

Egypt inks USD 41 bn worth of MoUs to build green hydrogen and renewable energy projects in SCZone

OverUSD 40 bn could be poured into green hydrogen projects: Egypt has inkedseven MoUs with international and local companies to develop green hydrogen and renewable energy projects worth USD 41 bn in the Suez Canal Economic Zone over the next ten years, according to a statement from the cabinet.

Per the agreement, some USD 12 bn will be deployed during the pilot phase, while USD 29 bn willbe invested in the first phase of development.

Who’s involved? The MoUs were signed with London-based PASH Global, Switzerland’s Smart Energy, South Korea’s SK ecoplant, Canada-based AmmPower, China’s United Energy Group, and Egypt’s Gila Al Tawakol Electric and Gama Construction. The statement did not disclose how much each agreement was worth or detail the project proposed.

This bodes very well for the country’s green hydrogen ambitions: Renewable energy andespecially green hydrogen targets have been central to the economic strategy for President Abdel Fattah El Sisi’s third term, which outlines plans to turn Egypt into a regional hub for green hydrogen production by 2026 and a global hub by 2030. The country aims to produce 3.2 mn tons of green hydrogen per year by 2029 and 9.2 mn tons per year by 2040.

What is being done to draw in investment? Companies that implement green hydrogen projects within five years will receive tax breaks of 33-50% on income and pay no VAT on raw materials, plant and machinery bought for the plants, according to the law ratified by President Abdel Fattah El Sisi last month. Details for the long-awaited national green hydrogen strategy look close to being finalized, after the Supreme Council of Energy approved a national strategy on Tuesday.

Remember: Egypt inked framework agreements worth a combined USD 83 bn during 2022’sCOP27 in Sharm El Sheikh with international companies to construct nine green hydrogen and ammonia facilities in the SCZone. The facilities would collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operational.

The story also got the attention of the int’l press:Reuters.

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Privatization

Maersk begins due diligence on Egypt’s Zafarana wind farm, Actis wraps up due diligence on Gabal El Zeit

Maersk is stepping up its pursuit of Zafarana: Danish shipping giant Maersk hasbegun due diligence for the 545-MW Zafarana wind farm as it paves the way to submit a final offer to acquire half of the asset, Al Mal reports, citing unnamed government sources. The New and Renewable Energy Authority is reportedly providing the required information to Maersk, which is set to conduct a thorough study, examine the documents, and inspect the site in cooperation with a consultant.

Remember: Maersk had reportedly entered the final stages of negotiation over the value of a 51% stake in October, but no ballpark has been given over how much the farm could go for.

Part of a wider plan: The company is reportedly looking to use the power to produce greenmethanol to fuel ships. The company in October signed a framework agreement with the government for a green methanol project in the Suez Canal Economic Zone, with the first phase requiring USD 3 bn in investment.

MEANWHILE IN GABAL EL ZEIT- Actis is one step closer to snapping up the Gabal El Zeit wind farm: UK-based private equity giant Actis has reportedly wrapped up due diligence on the state-owned 580-MW Gabal El Zeit wind farm, according to Al Mal’s report. Negotiations between the government and the British investor over the wind farm are reportedly in advanced stages, with the government seeking to finalize the transaction in the coming weeks.

Remember: The Gabal El Zeit and Zafarana wind farms are both included in the list of 35 companies and assets earmarked for privatization. The Sovereign Fund of Egypt (SFE) has reportedly appointed Belgium-headquartered engineering and consultancy firm Tractebel to act as a consultant for the sale of stakes.

Lots of interest: A number of local and foreign investors have shown interest in the two farms, including Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy, and our friends at renewables firm Infinity.

The transactions could wrap up very soon: The government is set to finalize the Gabal ElZeit and Zafarana stake sales before the end of March, Planning Minister Hala El Said said on two separate occasions recently.

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Manufacturing

China wants to establish an industrial zone on the Mediterranean to meet local demand and export to US, EU markets

China wants to establish a new industrial zone on the Mediterranean: Trade Minister Ahmed Samir spoke with his Chinese counterpart Wang Wentao about the establishment of a Chinese industrial zone on the Mediterranean Sea, according to a Trade Ministry statement yesterday. The new industrial zone would work to meet both the needs of the local market and export to American and European markets, the statement notes.

The meeting also reviewed a proposal for the two countries to conduct trade in local currencies, with talks over the possibility of opening a branch of a Chinese bank in Egypt to help facilitate trade between Egypt and China.

China wants more agricultural imports from Egypt: Wentao pointed out that China has been Egypt’s largest trading partner for the last decade, and said that China wants to balance its trade relationshipwith us by upping its agricultural imports from Egypt.

ICYMI: Chinese companies have also become an important source of FX investment: At the Belt and Road Forum last year, private and state-owned enterprises in China throughout only a few days collectively pledged investments worth c. USD 15.6 bn in the Suez Canal Economic Zone. Enterprise HQ has been inundated with big China investment stories throughout the last two years on at least a weekly basis, especially as we’re now officially a member of Brics as of the beginning of the year.

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EARNINGS WATCH

Palm Hills’ annual earnings up 26% in 2023 after doubling sales in 2023. PLUS: TMG income up 44% in 2023

It’s been a good year for the real estate sector: Rises in both income and revenues last year, and the promise of more affordable construction materials as the pound strengthens alongside rumors of more Ras El Hekma-like projects to come seem to be persuading the industry that 2024 might be a bumper year for the sector.

PALM HILLS RECORDS 26% IN 2023 Y-O-Y

Real estate developer Palm Hills Developments saw its net income rise 26% y-o-yin 2023 to EGP 1.6 bn amid a strong sales momentum within the company’s existing projects portfolio and higher selling prices and delivery rates, the company’s earnings release (pdf) showed. New sales jumped 129% to EGP 59.5 bn and revenue increased 28% to EGP 17.5 bn.

A solid quarter: The company logged a net income of EGP 532 mn in 4Q 2023, up 54% fromthe same quarter a year earlier. New sales rose 189% y-o-y to EGP 24.5 bn, while revenues increased 53% to EGP 6.2 bn.

Around 25% of sales in 2023 were from Egyptian expats and customers from other Arab countries, who were attracted by currency devaluations that reduced the price point of units brought with FX, Palm Hills Chairman Yassin Mansour told Asharq Business.

Palm Hills shows little sign of slowing down: “We are still adopting the strategy of accelerated construction spending and speeding up the execution pace across our key projects, to hedge from cost inflation,” said Palm Hills Executive Chairman Yasseen Mansour. “In fiscal year 2023, we spent more than EGP 7.5 bn both on commercial and residential projects and we plan to continue spending in fiscal year 2024.”

TMG BOTTOM LINE UP 44% IN 2023 AND STOCKS UP 588% IN ONE YEAR

Record sales boost TMG Holdings’ bottom line: Talaat Moustafa Group Holding’snet income rose 44% y-o-y in 2023 to EGP 3.3 bn on the back of record breaking contractual real estate sales, which surged to EGP 142.7 bn, the company said in a disclosure(pdf). Revenues increased 43% y-o-y to EGP 28.4 bn in 2023.

TMG stocks have skyrocketed on the back of high-profile acquisitions: Shares in the real estate giant currently stand at EGP 66.00, up 588.4% in 12 months. The acquisition of 51% of the government’s Legacy Hospitality — a group of seven of historic hotels — through it’s Icon Investments subsidiary and its more recent involvement with the mammoth USD 35 bn Ras El Hekma have boosted investor confidence in the group.

Shareholders to get a slice of the earnings: TMG is paying out a dividend of EGP0.218 per share in two equal installments. The first installment will be paid on or before 31 May, while the second installment will be paid on or before 31 July.

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LAST NIGHT’S TALK SHOWS

El Sisi’s address announcing the arrival of the first tranche of Ras El Hekma funds dominated the airwaves last night

President Abdel Fattah El Sisi’s address during an event celebrating differently-abled people dominated the airwaves last night, with the nation’s talking heads focussing in on the El Sisi’s announcement — and his first public comments on the Ras El Hekma agreement — that the first tranche of funds from ADQ had arrived in the nation’s coffers. Needless to say, this got pundits talking about whether now is the opportune moment to embark on a long-awaited devaluation

ADQ money rolls in: The Abu Dhabi wealth fund ADQ on Tuesday deposited the firsttranche of its USD 35 bn Ras El Hekma investment at the Central Bank of Egypt, President Abdel Fattah El Sisi said (watch,runtime: 30:06) during the event. The CBE will receive a second transfer on Friday, El Sisi said, without confirming the value of either transaction.

The two deposits should total USD 10 bn: ADQ agreed to make the first USD 15 bn paymentfor the development rights to Ras El Hekma on the North Coast within a week of signing the agreement, which was inked last Friday. Of the first payment, USD 10 bn are fresh inflows and USD 5 bn are in the form of a previous UAE deposit at the CBE. The remaining USD 20 bn — USD 6 bn of which will be from existing deposits — will be paid within two months.

To devalue, or not to devalue?“There is a chance that a devaluation will take place, but not one that is significant enough to justify traders’ suspension of sales of a lot of commodities,” economist Mostafa Badra told Ala Mas’ouleety’s Ahmed Moussa (watch, runtime: 3:33). However, the influx of FX liquidity following the Ras El Hekma agreement could postpone the EGP’s devaluation for another 3 years, Badra said, adding that he expects “the movement of the exchange rateby about 5-10% over a long period that citizens won’t even feel.”

El Sisi praised the UAE’s confidence in Egypt’s economy, and was thankful for its support: “I have to thank our brothers in the UAE, especially his excellency President Sheikh Mohamed Bin Zayed. It’s not easy at all for someone to put USD 35 bn in two months, but this is a clear form of support,” El Sisi said. “We’re talking about the largest tourism project in the Mediterranean … We’re talking about a city that’ll be continuously brimming with activity year-round,” he continued.

The president also spoke about the situation in Gaza: “We are continuing and will continue to support the Palestinian cause until we reach a Palestinian state using the 1967 borders with East Jerusalem as its capital,” El Sisi said. He also reiterated that Egypt did not close the Rafah crossing, and expressed his hopes of reaching a ceasefire agreement in the coming days to enable the movement of aid into the enclave.

EGP 10 bn for differently abled fund: During his speech, El Sisi also allocated EGP 10 bn to a fund set up to support differently abled people — dubbed the Differently Abled Fund.

El Sisi’s speech got coverage from Ala Mas’ouleety (watch, runtime: 6:12), Masaa DMC (watch, runtime: 2:25 | 3:22 | 3:06), and Al Hayah Al Youm (watch, runtime: 3:10 | 2:31).

ALSO ON THE AIRWAVES- Gov’t to evaluate safety procedures of transport apps following Uber kidnapping: The government will review the safety procedures and the licenses given to ride-sharing app after a girl threw herself from an Uber while on a highway to escape an attempted kidnapping, House Communications Committee head Ahmed Badawi told Yahduth Fi Misr’s Sherif Amer (watch, runtime: 4:16 | 3:12). The committee will review this case during its next session, and will evaluate the safety procedures that pertain to Uber and other ride-sharing apps, Amer added.

Commodity prices will continue to fall: The head of the Chamber of Commerce’s butchers division expects that a fair price for meat to soon range between EGP 300-350 per kilo, while a member of the Chamber of Commerce’s foodstuff’s division said he expects the sugar crisis to come to an end within ten days due to the amount of sugar that’ll be added to the market during the coming period, forecasting a kilo of sugar to decrease around EGP 10 to somewhere between EGP 30-40. Yahduth Fi Misr (watch, runtime: 6:56 | 4:28).

This publication is proudly sponsored by

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Also on our Radar

ExxonMobil to drill first exploratory well in Egypt in October. Plus: Oriental Weavers’ net income doubles in 2023

ENERGY-

ExxonMobil to drill its first exploratory well here in October: US-based energygiant ExxonMobil is reportedly looking to start drilling the first of three natural gas exploration wells in the Mediterranean’s North Marakia concession in October, with initial investments of about USD 100 mn, an anonymous government source told Asharq Business. Exxon owns 60% of the offshore block, while QatarEnergy owns the rest.

More to come: Exxon is also gearing up to explore for gas in its other two wholly-ownedconcessions — Masry and Cairo — this year, the source added. Last year, it was reported that Exxon will invest USD 200 mn to explore for oil and gas in the two wells.

EARNINGS-

Oriental Weavers saw its net income more than double to EGP 1.74 bn in 2023, from EGP 842 mn a year prior, according to an EGX disclosure (pdf). The company’s top line grew 33% y-o-y to EGP 17.7 bn for the year, led by a 34% y-o-y increase in international sales and 31% y-o-y increase in local sales.

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PLANET FINANCE

Investors are still loving Gulf IPOs

The appetite for Gulf IPOs is still strong: Saudi Arabia’s Modern Mills for Food Products IPOfor 30% of the company is 127x oversubscribed, it said in a statement (pdf). In total, institutional investors submitted bids worth SAR 150 bn (USD 40 bn) for the flour milling company’s public offering. The milling company is taking 24.5 mn shares to market — representing 30% of the company — in a SAR 1.2 bn market debut.

The company has priced its IPO at SAR 48 a piece, giving it a valuation of SAR 3.9 bn (USD 1.0 bn).

What’s next:Individual investors will have a two-day window starting Tuesday to place their orders for a maximum of 10% of the offered shares — 2.5 mn shares — according to the prospectus (pdf).

ALSO WORTH NOTING-

  • BTC broke above the USD 60k mark for the first time yesterday since November 2021 and has already climbed by over 40% since the start of this year, fuelling hopes that the cryptocurrency is gaining appeal among investors in traditional assets, Bloomberg noted.

EGX30

28,876

-1.1% (YTD: +16%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

21.25% deposit

22.25% lending

Tadawul

12,611

+0.1% (YTD: +5.4%)

ADX

9,283

-0.5% (YTD: -3.1%)

DFM

4,290

+0.4% (YTD: +5.7%)

S&P 500

5,070

-0.2% (YTD: +6.3%)

FTSE 100

7,625

-0.8% (YTD: -1.4%)

Euro Stoxx 50

4,884

0.0% (YTD: +8.0%)

Brent crude

USD 83.68

+0.0%

Natural gas (Nymex)

USD 1.87

-0.9%

Gold

USD 2,043.70

+0.1%

BTC

USD 60,514.15

+6.8% (YTD: +42.9%)

THE CLOSING BELL-

The EGX30 fell 1.1% at yesterday’s close on turnover of EGP 6.7 bn (56.9% above the 90-day average). Regional investors were net sellers. The index is up 16.0% YTD.

In the green: Fawry (+4.7%), E-finance (+2.6%), and Egypt Kuwait Holding (+2.5%).

In the red: Alexandria Containers and Cargo Handling (-11.4%), Delta Sugar (-10.6%), and Orascom Development Egypt (-8.0%).

9

My Morning Routine

My Morning Routine: The mother-daughter team behind one of Egypt’s top executive search firms

Zeinab Noureldin and Pauline D’Arcy, managing partners, AIMS International Egypt: 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 are our friends Zeinab Noureldin (bio) and Pauline D’Arcy (bio), the managing partners of AIMS International Egypt. Zeinab also wears the hat of vice president for the EMEA region: AIMS is a global institution, and the Egypt office began with a business Pauline founded in 1997.

This week’s column is special: We sat down with Zeinab and Pauline after they asked to sponsor this section. The agreement was simple: If they want to associate their name with this space, they’d have to sit through the same interview as everyone else. Edited excerpts follow. (In a departure from our usual style, we’re running this week’s column as a Q&A to make it easier to follow who’s speaking.)

ENTERPRISE- The first question is always the same: You need to introduce yourselves to those in the community who don’t know you.

Zeinab: Before anything else, I’m a mother of two, ages four and eight. That’s the biggest part of my life now. Secondly, I’m managing partner in a business that has grown quite fast over the past six years. My focus is on the business development and client relations side of the business, though I still enjoy keeping my hands in operations, because you never want to lose touch with the core of what you do.

Pauline: I am the proud founder of a business I started many years ago — back in 1997, when I learned how wonderful it is to be your own boss, particularly when you have a one-year-old child and your office is right next to your home. We’re still in that office, in fact. It’s fun to have people come through who first met us as young professionals and today they’re well-known CEOs and CFOs.

ENTERPRISE- Where do you do most of your business — with multinationals? Large Egyptian corporates?

Pauline: Traditionally, we’ve been very strong with multinationals and other foreign clients arriving in Egypt, but our fastest-growing segment today is with large Egyptian institutions and family businesses, who appreciate that we have plenty of experience with multinationals, but a very deep understanding of the Egyptian market and of all the various factors — including culture — that go into finding the right people for the right roles.

ENTERPRISE- This is a My Morning Routine interview, Zeinab, so let’s start with you: What’s your morning routine?

Zeinab: I’m up by 5:45am and hit snooze until 6am. The first part of my day is getting the kids off to school by 6:40 or so. Then I have, recently, started taking a 20-30 minute walk — just to around the block to take some time for myself. By 7am, I have this really productive hour in which I drink my coffee, read Enterprise (particularly to see what business leads I can pull out) and do some quiet thinking and set up my day.

Once I’m at the office, it’s about meetings in Egypt until sometime in the afternoon, then it’s time to work on AIMS International, where I’m an executive member of the global board and other than my focus for the MEA region I’m also a co-marketing lead. Being double-hatted to do global work is a lot of fun, though the time differences can be challenging — one of the people I work most closely with is in our Mexico office, for example, for our global rebrand, so stay tuned…

ENTERPRISE- What about you, Pauline?

Pauline: It’s a little bit different as I have nobody to talk to in the morning. I’m also awake by quarter to six and I try to stay in bed as long as I can before I make myself a leisurely breakfast. I’m in slow mode until I arrive at the office somewhere between quarter to eight and half-past eight. I’m old fashioned and don’t like this work-from-home stuff. Work starts when I arrive at the office.

ENTERPRISE- You’re not a fan, huh?

Pauline: I find the office energizing, and frankly I find I have to be much more disciplined to work from home. But in the office, I love interacting with people — our team and our clients — face-to-face.

ENTERPRISE- Are you seeing the same brain drain that we’re seeing?

Zeinab:That's a big trend, and it has accelerated very fast in recent months. Mostly to Saudi Arabia, but the UAE is still in demand. It can be challenging, sometimes, when someone you think would be a perfect fit for a role, a company, a culture, but isn’t interested because they are looking only outside the country.

Pauline: It’s not just tech. We’re seeing a lot of companies in the Gulf moving functions including finance, HR, audit, and compliance to Egypt. Back office functions where they can pay substantially above the market, but the employer saves because they’re still paying less than they would to base those roles in Dubai or Abu Dhabi or Riyadh.

ENTERPRISE- What’s the hardest role to fill right now?

Zeinab: The one that stands out is chief technology officer, because the expectations are so high right now. And CFO can be very challenging. But CTO, for certain. One thing we’ve seen a bit of recently is companies outside Egypt hiring and basing senior tech talent here to build teams and then serve international business. We have a lot of talent, and the price differential between here and the Gulf is great.

ENTERPRISE- Let’s say I’m a candidate. You think I’m a great fit. The company wants me. What’s the number-one reason why I will say “No” and decline a job?

Zeinab: Culture. Number one, by far, is that you don’t see yourself as a fit with the culture. This includes a mindset that is open to change. Execs know that if they don’t gel with other C-suite managers or the CEO knows she doesn’t align with the board — how they operate, where they want to take the business — they will fail to have an impact. Compensation is a factor, too.

I think it’s really telling, though, that we’re seeing more younger execs decline C-suite roles because they’re concerned about having an impact. They think, “I have a name. I’m coming to this company and need to take it from point ‘A’ to point ‘B’. Does the company want to go on that journey? Do they want to change and grow? Or are they hiring me just to be able to say they have someone running the function who has a certain educational or employment background?” No executive sees growth or value in that setup.

ENTERPRISE- What’s a trend in the industry that you’ve picked up on, but that you think might surprise our readers?

Zeinab: There’s a growing focus on diversity, equity, and inclusion across the Middle East. It’s focused on areas that aren’t emphasized as much in other parts of the world, but it’s there. It’s about gender, about age and abilities vs. disabilities and experience.

ENTERPRISE- I get gender, of course, but age? Really?

Zeinab: Look, what we do — whether at the executive level or at the board level — is all about getting the right people into the right seat. There’s a push on now to put the right people into the right role — they’re not “too young” to wear the hat, nor are they “too old” to report to a younger person. It’s about attitude and aptitude. And there’s nothing wrong with being a great professional who, despite being a certain age, just doesn’t want to be C-level.

ENTERPRISE- And you’re seeing companies actively looking at the question of age in hiring?

Zeinab: We saw it at multinationals first, because they have the processes in place to prioritize it, and we’re seeing it at large Egyptian corporates now, too.

ENTERPRISE- It strikes me that a lot of your job is about sales — selling clients on retainer search, of course, but then also selling candidates on companies.

Zeinab: And companies to candidates. I won’t disagree, but more than sales it’s about advisory and troubleshooting. Often, a large part of what we do is work with top execs to sort out what they’re really looking for in a role, to redefine job functions, or sort out lingering issues that you know might be an obstacle to placing the right person — and having that person stay. We don’t give up on our clients — not only because we do retained search, but it’s all about long-term relationships.

ENTERPRISE- How important is work-from-home for the people you’re placing?

Zeinab: Young professionals? They love it. They expect it.

Pauline: I don’t think older people care as much.

ENTERPRISE- What about the companies? I get a sense the shift against WFH isn’t just a “Western” thing.

Pauline: The multinationals don’t mind it so much — they’re fine with hybrid.

Zeinab:I’d say Egyptian corporates don’t love it. If they have to, they'll do one day, the minimum, but they don’t love it.

ENTERPRISE- What about you ladies?

Zeinab: We do one day a week, but we also have a lot of flexibility, so if someone wants to work from home for whatever reason, we’re very flexible. But we love being in the office — being able talk face to face, even walk into someone’s office for a chat, rather than booking a Google Meet time to have a discussion.

ENTERPRISE- Did you immediately succumb to the gravitational pull of the family business, Zeinab?

Zeinab:I wasn’t pushed into it, no [laughs]. Pauline had started working in the field six or seven years before she went out on her own, back when she was with Arthur Andersen. But she didn’t push it on me. My father, though? He would always say: This is your future, this is what you need to do. I explored other things, but this was what I was meant to do. I really have a passion for commercial, business development, communication, and marketing — for that side of things — and this is exactly what I want to be doing. I grew up in the business and still love it.

ENTERPRISE- What’s next for you as a business?

Zeinab: I think it’s simply about making certain that Egyptian corporates understand that there’s no need to go retain a firm in London or Belgium to run a search for them when we’re right here in their market that we know best. We offer the best of both worlds — we have deep local roots and insight, global experience, and an international footprint with our global locations. And, frankly, our quality is at least the same if not even better.

I also see a lot of room to grow our boardroom practice — we’re very good at finding the just the right independent non-executive director who can help add significant value to businesses, that’s your diversity there.

ENTERPRISE- Okay, let’s wrap this up. What’s in your Netflix queue?

Zeinab:I always unwind at night for a bit with Seinfeld or Friends. I need something that provides a chuckle, but doesn’t engage me too deeply, because by bedtime, I’m spent. I don’t want something that demands concentrated attention — even if it’s a film or a series I’d really enjoy. I’m “on” all day.

Pauline: I’m different. I don’t watch the same thing twice. I’m always on the lookout for something new. I’ve loved The Crown, of course — I lived that history, right. But what I really love are documentaries. The last great one I watched was Cuba Libre, about Fidel Castro.


2024

FEBRUARY

24 February-1 March (Saturday-Friday): Egypt hosts the 71st African Airports Council International (ACI) Conference and Exhibition at the Alamera Hall Air Forces House Center and Le Méridien, Cairo Airport.

MARCH

1 March (Friday): New public-sector minimum wage goes into effect.

2-3 March (Saturday-Sunday): The Emigration Ministry’s International Health Tourism Conference at the St Regis Almasa Hotel, New Administrative Capital.

7 March (Thursday): Deadline to apply to Shalateen Mining Company’s international gold exploration tender.

10 March (Sunday): First day of Ramadan (TBC).

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

28 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 March (Thursday): Industrial Development Authority to close applications for 1 mn sqm of land in 10 different governorates.

29 March (Friday): Egypt removed from JPMorgan Chase’s Emerging Local Markets Index Plus.

APRIL

1 April (Monday): Deadline to bid for 23 blocks in an international oil and gas tender.

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

15-21 April (Monday-Sunday): The IMF / World Bank Spring Meetings.

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

28 April (Sunday): Grace period to ins. brokerage firms to comply with Law 215 for 2023 expires.

28-29 April (Sunday-Monday): Saudi Arabia hosts a World Economic Forum (WEF) meeting on ‘global collaboration, growth, and energy.’

29 April (Monday): The government’s car export scheme expires.

MAY

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

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

20 May (Monday): Malaysian Palm Oil Forum in Cairo, with attendance from Malaysian Plantation and Commodities Minister Johari Abdul Ghani.

23 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

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

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

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

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

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

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

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

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

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

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

NOVEMBER

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

DECEMBER

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

EVENTS WITH NO SET DATE

January 2024: The Red Sea Ports Authority is set to finalize an agreement with the Abu Dhabi Ports Group for the operation and maintenance of the tourist passenger terminal in the Sharm El Sheikh Sea Port.

February 2024: Egypt will sign a USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC).

February 2024: Funds from the Islamic Development Bank for the high speed electric railway will get the sign off.

April 2024: President Abdel Fattah El Sisi will visit Turkey.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

1Q 2024: The government is set to finalize the sale of the Gabal El Zeit wind farm.

February-May: The Grand Egyptian Museum could officially open to visitors.

March 2024: The USD 2.7 bn MIDOR Refinery is set to begin full operations.

May 2024: Arab Finance Ministers’ meeting at Egypt’s administrative capital.

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.

1H 2024: The European Union is set to hold an investment conference in Egypt during spring.

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

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

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

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

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