Good morning, folks. You may be wishing that you were still sitting on the beach or however else you enjoyed the long weekend, but at least we have some positive news to kick off an all too abrupt start back at work.

In today’s issue, we’ve got very welcome news that Fitch Ratings has upgraded our credit rating outlook to positive, a floating LNG regasification unit set to arrive next month, Egypt’s first digital bank to open in 4Q, and much, much more.

But before we jump right in, did you know that we now cover Saudi Arabia and the UAE?

Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

PSA-

WEATHER- It’s another bright and sunny day in Cairo today, with a high of 28°C and a low of 18°C, according to our favorite weather app.

It’s slightly cooler in Alexandria, with a high of 25°C and a low of 17°C.

DATA POINT-

#1- Foreign holdings of local debt have more than doubled to USD 35.3 bn as of March from USD 16.6 bn at the end of 2023, according to data compiled by Fitch Ratings. (More about the ratings agency's outlook for the economy in the news well, below)

#2- Tourist arrivals to Egypt increased 27% y-o-y in the first four months of the year, with visitors from Arab countries accounting for around 54% of all arrivals, deputy Tourism Minister Ghada Shalaby told Asharq Business.

#3- Total orders issued under the government’s car-for-FX initiative have reached just under USD 2 bn, according to a statement from the Immigration Ministry. Expats have transferred some USD 799 mn to the government under the initiative so far, the statement read.

WATCH THIS SPACE-

#1- IPO activity in Egypt’s stock exchange will recover by 4Q 2024 or early 2025 as the market adjusts to the float of the EGP and increased interest rates, EFG Hermes Investment Banking Co-CEO Mohamed Ebeid told Asharq Business.

#2- The writing of the new tax policy document for 2024-2030 is underway, with Prime Minister Mostafa Madbouly instructing for the draft document to be sent to members of the National Dialogue, Chambers of Commerce, and business associations for feedback, according to a cabinet statement.

#3- An unnamed UK company is looking to invest in the country's green hydrogen sector, British Ambassador Gareth Bayley told Al Arabiya on Sunday. The projects will soon be announced, Bayley said, without providing any further details. British companies are also currently exploring further investments in renewable energy, sustainable infrastructure, sustainable cities, education, and transportation, he added.

ATTENTION, EGYPT INVESTORS-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

HAPPENING TODAY-

#1- The online platform to sort out building violations goes live today: Owners of unauthorized buildings built until 15 October 2023 looking to legalize their properties in return for paying a reconciliation fee can now file their requests through a freshly launched website (here) and Android app (here), according to a Planning Ministry statement.

Remember: The cabinet approved the executive regulations for the new Building Reconciliation Act last month after the law was ratified in December, making it easier for owners of authorized buildings to legalize their properties. We dove into the ins and outs of the new act in a Hardhat last year.

#2- The House is in session today and tomorrow to look into a report on the state's balance sheets for the previous fiscal year.

And it looks like four public authorities will come under fire for incurring losses: Just four public authorities accounted for 95.6% of the EGP 14.4 bn in losses incurred by public authorities in FY 2022-23, an informed source told Enterprise. The National Media Authority incurred 73.3% of the total losses, followed by the National Authority for Tunnels (13.1%), Cairo's Public Transport Authority (5%), and the Nuclear Power Plants Authority (4.2%). The remaining 4.4% of losses came from other public authorities.

#3- For our fellow iSheep: Apple is expected to unveil new iPads this afternoon at 5pm Cairo time (7am Pacific). The expectation: a revamp of the line that restores some coherence to the offering (and for the Pro to get a FaceTime camera on the long edge). You can stream the announcement from Apple’s website or its Youtube channel.

Apple’s announcement kicks off a series of big tech events, including next week’s Google I/O and the race toward Apple’s developers conference in June.

HAPPENING TOMORROW-

Private sector health check incoming: S&P Global will publish Egypt’s PMI figures for April tomorrow measuring the country’s non-oil private sector activity, which has been in contraction for the last 40 months.

Policymakers are hoping that we should start to see the EGP float having an effect on private sector activity: We’re still yet to see the hoped for uptick in business activity following the float of the EGP, with March’s data showing “ softer but still-solid deterioration ” on the back of persistent currency challenges and elevated inflationary pressures. Data for April will give us an insight into the private sector during the first full month following the float of the national currency.

CIRCLE YOUR CALENDAR-

FRA extends deadline for submitting financial statements until 30 May: The Financial Regulatory Authority has extended its deadline for EGX-listed firms to submit their financial statements ending in March to 30 May, the authority said in a statement on Thursday.

Egypt will host ProPak MENA from Sunday, 26 May to Tuesday, 28 May at the Egypt International Exhibition Centre in Cairo. The conference will see F&B manufacturing industry professionals network and discover the latest equipment and logistic solutions for processing and packaging.

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-

Hamas has accepted a ceasefire proposal — Israel says it’s not enough and is hammering Rafah. Here’s what you need to know this morning:

• Hamas accepted a proposal from Egyptian and Qatari mediators;
• Israel says it doesn’t go far enough and plans to take over the Palestinian side of the Rafah border crossing;
• Israeli forces are attacking Rafah by air and on the ground. More than 1 mn people have sought refuge in city on Egypt’s border, and the Israeli army is now telling at least 100k of them in east Rafah to move into a so-called “humanitarian zone;
• Shuttle diplomacy continues today in Cairo after both sides said they’d continue indirect talks.

Egypt condemns the move: The Foreign Ministry yesterday issued a warning calling on Israel “to exercise the utmost restraint and avoid further escalation at this sensitive time in the ceasefire negotiation process.”

There’s more foreign policy ugliness in the headlines: Russia has rattled Western capitals with an announcement that it’s running drills on the use of tactical nuclear weapons. Pundits say the Kremlin is putting on pressure in response to French and British statements on Ukraine.

SOUND SMART- Tactical nukes are smaller, less-powerful weapons designed for use on the battlefield. Strategic nuclear weapons are the things designed to take-out cities.

IN THE BUSINESS PAGES- Reuters won a Pulitzer Prize for its long-term investigation into Elon Musk’s business empire, including Tesla and SpaceX. The newswire also won for its photography of the war between Hamas and Israel. You can read the full series here, read the Pulitzer announcement, or check out the long list (pdf).

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

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise 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 Enterprise 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.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at how Egyptian industry is increasingly looking towards solar energy to power its energy needs.