Google will start paying Egyptian creators in local currency

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What We're Tracking Today

Could Maait be the next IMF executive director representing Arab states

Good morning, all. We got another packed issue for you this morning to wrap up one busy week.

BEFORE WE DIVE IN- We are heading into a three-day weekend. The private and public sectors, as well as banks and the EGX, are taking Sunday off in observance of Armed Forces Day.

That means EnterpriseAM Egypt won’t be landing in your inbox on Sunday, but we will be back in your inbox at our customary time on Monday.

WATCH THIS SPACE-

Could Maait succeed Mohieldin at the IMF? Former Finance Minister Mohamed Maait is the top candidate to replace Mahmoud Mohieldin as the IMF’s executive director representing Arab states and the Maldives, an informed source tells Enterprise. The expected appointment comes as Mohieldin’s second term in the position — which he has held since 2020 — comes to an end.

HAPPENING TODAY-

#1- Non-oil private sector to continue growing? S&P Global will publish Egypt’s PMI figures for September this morning at 6:15 CLT, measuring the country’s non-oil private sector activity. Last month’s non-oil private sector activity expanded for the first time in over three years.

#2- Cairo Sustainable Energy Week wraps up today: Under the theme Building a World that Sustains, the three-day event at the Nile Ritz-Carlton in Cairo is gathering ministers and private sector players from across the Arab world to discuss renewable energy, grid interconnection projects, sustainable development, and everything in between.

On the agenda for the conference’s last day are sessions on energy efficiency, women in the sector, AI, the importance of biodiversity, wind power in the region, and more. You can check out the full agenda on the event’s website.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 30°C and a low of 22°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which will be seeing a high of 29°C and a low of 22°C.

And over the weekend, expect to see a high of 31°C and a low of 21°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.

THE BIG STORY ABROAD-

It’s a mixed picture on the front pages of the foreign press today, with updates on Israel’s invasion of and attacks on Lebanon, speculation over Israel’s potential methods of retaliation for Iran’s attacks earlier this week, and OpenAI’s latest funding round grabbing headlines.

#1- Israel bombed central Beirut for the second time this week, killing at least six in an attack on a medical center in the heart of the city, Reuters reports. Israel missiles also continued to target southern suburbs of the city. Israel’s ground offensive in Lebanon has also killed eight Israeli soldiers in the first day after its launch, the Washington Post reports.

The US and other G7 partners are working on limiting Israel’s response to Iran’s attacks earlier this week and deterring it from attacking the latter’s nuclear facilities, which some officials have called for, the Financial Times reports. US President Joe Biden said he would not support such an attack, signaling plans to sit down with Israeli Prime Minister Benjamin Netanyahu to advise on Israel’s response, and to escalate sanctions on Iran, Bloomberg reports separately.

The escalation of attacks across the region has forced airlines to take longer paths over Egyptian and Saudi airspace to avoid shuttered airspace, Bloomberg said, citing flight tracking data on FlightRadar24.

#2- OpenAI’s secured USD 6.6 bn in fresh funding, giving the company a whopping valuation of USD 157 bn, with backing from Microsoft, Nvidia, and Josh Kushner’s VC firm Thrive Capital, which led the round, Bloomberg reports. Abu Dhabi tech investor MGX also participated in the funding round — we have more in the news well, below. Notably absent from the funding round is Apple, who was said to potentially invest in the firm earlier.

The funding will be used to “double down” on AI research and increase computing capacity, the statement said. The startup also reportedly asked its investors for exclusive arrangements to stop them from investing in other rival AI startups, the Financial Times reports, citing multiple sources.

For the first time in Egypt, Somabay is thrilled to host the legendary Amy Winehouse Band live in concert. Prepare for an unforgettable evening filled with soul, jazz and iconic hits as the band performs live at Somabay’s breathtaking The Marina in The Theater Somabay on 5 October. Set against the stunning backdrop of the Red Sea, this exclusive event promises a magical night of music and entertainment in a unique setting. #TheAmyWineHouseBand #OneParadiseAllSeasons #SomabayRedSea

A look into Egypt’s real estate market

Demand for real estate assets in Egypt is real. Whether it is for hedging, investment or personal use, Egyptians like to buy property and the proof is in the paper. As of late, the luxury market too is seeing a surge in activity, with both local and Gulf investors driving sales — and prices — up. But, as construction costs rise, inflation bites, and the threat of further currency depreciation looms, can the real estate sector sustain its momentum while overcoming these economic pressures? Are we looking at the early signs of a potential bubble? And, can developers keep pace with hot demand while addressing affordability and pricing challenges?

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

We gathered a number of key real estate players during this year’s EnterpriseAM Finance Forum — we spoke to Ayman Amer, general manager of SODIC, Dasha Badrawi, executive vice chairman of Marakez, and Ibrahim El Missiri, CEO of Somabay, about the ins and outs of the Egyptian real estate market.

Ras El Hekma has been a game-changer for Egypt’s real estate market. This year, brokers from the UAE and Saudi Arabia ramped up efforts to market and sell their projects here, Amer said. “After the announcement of Ras El Hekma, everything changed. The focus of the whole world has shifted to the North Coast.” Badrawi echoed this sentiment, noting that Ras El Hekma is one of the “two big events the North Coast has seen this summer,” which alongside the TMG project, significantly boosted demand for property in the coastal city.

The North Coast’s growing appeal to Gulf investors has brought with it skyrocketing prices. Property rates have surged to dizzying heights, with Ras El Hekma driving much of the upward momentum.“Room rates have jumped to USD 3k or more per night for some villas,” Amer said, pointing to the influx of foreigners driving up demand for luxury spots along the coast, with some villas going for USD 11k-14k per night, he added.

Rest assured, there is no bubble: Despite perennial concerns about a potential real estate bubble, our panelists were quick to dispel the idea. “There’s no bubble for too many reasons,” Amer said, citing a significant mismatch between supply and demand. Developers are struggling to deliver enough units to keep up with the country’s housing needs. El Missiri agreed, adding that while there had been a “demand bubble” fueled by speculative investments, the market has since shifted back to real, sustainable demand. Population growth, limited supply, and steady purchasing power continue to support the market’s upward trajectory, leaving little room for a price bubble.

The demand metrics are solid: Egypt’s real estate market is propelled by a powerful combination of cultural and economic dynamics. “With a population of 120 mn, people are constantly looking to buy real estate, not just for themselves but for their children as well,” Amer said. Throw in a rapidly growing population to the mix, and the demand metrics are pretty solid.

Prices vs. affordability: As prices continue to rise, so do concerns over affordability. According to Amer, “prices have increased between 200% and 300% over the last three years,” and that’s got buyers and developers feeling the pinch. Inflation and rising construction costs are at the root of these massive hikes. But there’s another kicker, “local salaries haven’t kept up with the float of the EGP,” Badrawi said. This mismatch between earnings and property prices is making it tough for many Egyptians to keep up, prompting more people to consider extended payment plays — or join the growing crowd of renters.

Renting may just be the new buying: Long-term rentals are becoming an increasingly common option for Egyptians who can no longer afford to buy property. “Twenty percent of properties in West and East Cairo are now rented, which is a significant shift,” Amer said, adding that some renters are shelling up to EGP 35k per month for homes, while bigger houses are renting for up to EGP 150k.

Looking from the outside in: Both Amer and El Missiri pointed out that Egyptian real estate remains relatively affordable compared to international markets. We’re still far behind in terms of price per square meter compared to global markers, El Missiri said. While the average price per square meter in Egypt is USD 2-3k, it’s between EUR 5-18k in Greece, El Missiri said — “We have a long way to go in terms of price points.” More can be done to make Egypt more attractive to foreign tourists and investors, Badrawi said, pointing to better infrastructure, hospitality, and transport services.

Time to look abroad: “Anywhere between 30% to 35% of our homeowners [in Somabay] are from abroad — not just Egyptian expats but also foreigners,” El Missiri added. The region’s proximity to Saudi Arabia and potential to attract international buyers could significantly boost Egypt’s real estate sector in the coming years.

Now is the Red Sea’s moment to shine: The Red Sea region is poised to become Egypt's next major real estate hotspot. “The Red Sea is coming,” El Missiri said, predicting that developers will soon begin acquiring land there due to its superior infrastructure and connections compared to the North Coast.

The institutional investment gap: While individual and Gulf buyers continue to drive demand in some places, institutional investment remains a largely untapped opportunity in Egypt’s real estate sector. “There are simply not enough institutional opportunities,” Badrawi said, pointing to the lack of recurring revenue assets and regulatory hurdles preventing institutional investors from fully engaging with the market. Amer also called for more regulation and transparency to attract larger pools of institutional capital. We need to create a more transparent and competitive environment if we want to attract significant institutional investment, he said.

Is luxury the new hot ticket? Egypt’s luxury market is growing across the board, with respect to different buyer profiles and price points, according to Amer. High-end products accounted for some 70% of SODIC’s sales this year, he said. “There are many buyers who can afford these high-end products, and they are actively seeking them out when the right unique selling propositions are in place.” This trend is borne out by the numbers — SODIC’s latest luxury development on the North Coast, Ogami, raked in a record EGP 20 bn in sales within just a week of its launch.

The challenges are just as real as the demand: Rising construction costs, inflation, and potential fuel price hikes could disrupt the sector’s momentum. “If the USD stabilizes at EGP 50-55, then real estate prices will rise by around 12% to 15% — something we expect as part of the normal course of the market,” Amer said. But, as El Missiri warned, if subsidies on fuel are removed, “construction costs could go through the roof.” To cope with these pressures, developers will need to adopt flexible pricing models and adjust to the shifting economic landscape.

About the secondary market: In addition to inflationary pressures, the secondary real estate market faces its own set of challenges, according to Badrawi. Secondary unit holders are struggling to compete with developers who offer extended payment plans, putting strain on individual sellers. “The units that do move in the secondary market are usually in communities that are already built and thriving,” Badrawi said, pointing out the liquidity issues and payment term competition could force many to liquidate properties, further flooding the secondary market.

The long-term outlook for Egypt’s real estate sector remains positive. El Missiri stressed that the fundamental demand for housing will persist as Egypt’s population grows and income levels adjust to new economic realities. “We’re going back to real demand,” he said, “and as people’s incomes adjust, the market will stabilize.” Ayman reinforced this optimism noting that with a shortage of supply and a growing middle class, there is little reason to believe that the sector is facing a bubble.

Egypt’s net foreign assets surplus shrinks 27% to USD 9.7 bn in August

Egypt’s net foreign asset surplus fell 27% to USD 9.7 bn in August, down from USD 13.3 bn in July, according to Enterprise calculations based on Central Bank of Egypt figures. This represents our fourth consecutive month in the green — the country has maintained a surplus since May, when net foreign assets shifted from deficit to surplus for the first time since February 2022.

(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 decline were commercial banks: Net foreign assets in commercial banks were back in the red, coming in with a deficit of USD 536 mn, down from a surplus of USD 2.8 bn in July. While liabilities remained essentially unchanged, dipping USD 81 mn throughout the month, assets fell 11% to USD 27.6 bn.

The central bank fared much better, but did see its surplus shrink a little over the month: The central bank’s net foreign asset surplus dipped 1.9% to USD 10.3 bn, down from USD 10.5 bn in July. Assets fell USD 115 mn throughout the month, while liabilities increased by USD 124 mn.

Remember: Egypt’s net foreign asset deficit reached an all-time high back in January, recording USD 29.0 bn, before starting to gradually drop in the months that followed following the Ras El Hekma agreement, the float of the EGP, and the inflows that followed.

Google will start paying Egyptian creators in local currency

Google to begin paying content creators in EGP starting next year: The tech giant has notified content creators and publishers on its platforms that they will begin receiving their earnings in local currency starting May 2025 — Google currently pays creators on its platforms in USD, Google said in a statement to Enterprise.

It’s not just Egypt: The shift is part of a larger move towards conducting payments for content creators and publishers around the world in their respective local currencies, with the company already paying creators in local currencies in countries that include Chile, Indonesia, Japan, Jordan, Mexico, Morocco, New Zealand, Norway, Peru, South Africa, Sweden, Turkey, and the UAE, with plans to expand to more countries globally in 2025.

What they said: “We know it can take time to prepare and adjust finances, which is why we notified our community six months in advance. Our support for content creators and publishers in Egypt remains unchanged,” the company told us.

DATA POINT- The number of Egyptian YouTube channels making over EGP 1 mn in revenues is up 50% y-o-y.

Gov’t efforts to make state-owned land investable + USD 60 mn linen freezone

The Madbouly cabinet approved a raft of decisions in its weekly meeting, including ones that pertain to state-owned land, the establishment of a new freezone, and a new golden license issuance.

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

#1- Speeding up the process of legalizing the status of squatters on state-owned land: The cabinet approved a draft law that grants administrative bodies the right to handle any encroachments on state-owned lands under their jurisdictions through “administrative procedures,” through direct agreement with the building owner or with those who have reclaimed or cultivated that land.

It’s about more than reconciliation: House Housing Committee Secretary Amin Massoud told Enterprise that the draft law aims encourage investments in state-owned land — the recent wave of foreign investments we’ve seen in Ras El Hekma and expected investments in the Red Sea make it necessary to introduce the legislative amendments needed to ensure squatters legalize their stay on state-owned land so that it can attract investors.

What does it entail? The draft law aims to speed up the process of reconciling with squatters who submit requests to legalize their stay — giving us a clear timeline for issuing the executive regulations and quickly resolving pending applications and clearing the backlog of cases. The draft decision also includes more reasonable fees for legalization.

It’s not the first time we hear of this: Last November, the cabinet approved a very similar draft law and said it will fast-track the executive regulations to the act, with hopes of having them in place within a month from mid-November 2023.

#2- Gov’t to establish USD 60 mn freezone for linen and textile production: The cabinet approved a decision to set up a USD 60 mn freezone for the production of linen in Sadat City — dubbed Kingdom Linen. The entirety of the zone’s production will be exported and products will have a local component of no less than 30%.

#3- Emisal receives golden license: The cabinet approved a draft decision granting The Egyptian Minerals and Salts Company at Fayoum (Emisal) a golden license for its project to establish and operate a factory for the production of potassium sulfate fertilizers in Fayoum. The EGP 600 mn factory will be built on an area of 5.6k sqm.

Poland’s Padma Art wants to set up a EUR 70 mn furniture complex in New Alamein

European companies are getting ready to set up industrial complexes and factories in Egypt, with Poland’s Padma Art and the Egyptian arm of Germany’s Leoni both preparing multi EUR mn projects.

POLAND’S PADMA ART TO BUILD EUR 70 MN FURNITURE COMPLEX-

New Polish furniture industrial complex in the works: Polish furniture manufacturer Padma Art plans to build an EUR 70 mn industrial complex to locally produce furniture, according to a statement.

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

What we know about the project: Set to span 400k sqm in New Alamein, the complex is expected to be a major manufacturing venture that will earmark most of its output to Arab, US, and European markets. A portion of the production will go to cover New Alamein and surrounding coastal cities and resorts. The company has set its sights on an annual export target of EUR 200 mn.

LEONI EGYPT TO ESTABLISH EUR 40 MN FACTORY-

There’s a new factory in the works in the Robbiki Leather City: Cable and harnessing manufacturing firm Leoni Egypt will set up an EUR 40 mn, 13k sqm factory for cable harness production in Robbiki Leather City, under an agreement inked with manager of the leather-specialized industrial complex Cairo for Investment and Development, according to a statement.

The details: The project is expected to boost Leoni’s exports from Egypt by 50% to generate around EUR 240 mn annually. It is also expected to create around 3k direct and indirect jobs. The factory is expected to kick off operations within a year.

Egypt’s cement production cut extended again

Cement production cuts extended another year: The Egyptian Competition Authority (ECA) extended the cement supply cut for a fourth year, head of the cement division of the Federation of Egyptian Industries Ahmed Shireen Korayem told Enterprise.

Remember: The ECA last year extended the cement supply cut until July 2024 at the request of cement producers who were struggling with low prices, dampened demand, and supply gut. The ECA had initially introduced a one-year 10% supply cut in 2021 after an overflowing supply of cement left many cement makers on the brink of collapse. The cut has been renewed annually since then in response to requests from cement factories.

Can we see demand for cement rise? President Abdel Fattah El Sisi directed the government to scrap the construction licensing requirements put forward in 2021 and reinstating the full provisions of the 2008 Building Law is expected to boost demand for cement, Korayem said.

How big of a surge should we expect? Korayem was hesitant to predict a specific percentage of growth in demand, given inflation and the rising costs of building materials. While there is clearly demand for construction, it isn’t obvious whether it will “turn into real demand or remain latent amid continued economic pressure on individuals.”

Where things stand: Cement production remained stable throughout the year, despite declining domestic demand, Korayem told us. He predicted that total production would reach some 45 mn tons this year, down from just under 47 mn tons in 2023. The drop in demand may be offset by a 2-3 mn ton increase in exports, but “exports are being sold at cost price to provide foreign currency for producers to cover their imports of coal and spare parts,” he said.

By the numbers: Local cement production increased by 6.5% y-o-y to 34.9 mn tons during the first eight months of 2024,according to market data seen by Enterprise. Some 13% of locally produced cement was exported during the first eight months of the year, compared to 7% during the same period last year.

Palm Hills to snap up Mansour’s 29.6% stake in Taaleem

Palm Hills is getting a piece of Taaleem: Property development giant Palm Hills Developments (PHD) will acquire Chairman Yasseen Mansour’s 29.6% stake in higher education outfit Taaleem, it said in an EGX disclosure (pdf). The acquisition will go through following the greenlight from the ordinary general assembly.

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

The details: PHD will buy Mansour’s 216.1 mn shares at EGP 8.65 a share in an EGP 1.9 bn transaction. The developer has big plans in the education sector and Mansour’s ownership of a stake in Taaleem would present a conflict of interest, the disclosure said.

Remember: Mansour bought an additional 10.1% stake in Taaleem in an EGP 773.2 mn transaction last week, with the goal of seeing the company establish the largest number of private universities in Egypt, alongside finding high-tech solutions for administration and broadening the company’s social impact.

PHD and Taalemem are no strangers: Earlier last month, PHD and Taaleem inaugurated Badya University — a joint venture between the two sides — in New October City.

PHD has big education plans, here and abroad: Mansour said last month that PHD plans to set up 10 schools in the country within the next 10 years. It is also looking to develop up to 15 new schools in Saudi Arabia in partnership with Dallah Albaraka with combined investments of USD 300 mn.

That’s not the only acquisition in the pipeline for PHD: The developer’s board agreed to buy its majority owners’ — El Mansour and El Maghraby for Investment and Development — 9.5% stake in Macor for Securities Investment Company, pending approval from the company’s ordinary general assembly. PHD already owns 60% of Macor. Once the acquisition goes through, PHD will assume control over 69.5% of the company. The acquisition could be valued at some EGP 175.6 mn.

AND- A capital decrease in the works: PHD’s board gave its approval to a capital decrease that would see the company retire some 61.7 mn treasury shares. The board also approved buying back 88.2 mn treasury shares, capped at 3% of the company’s issued shares, via the special operations market.

PHD SECURES EGP 10.3 BN SYNDICATED LOAN-

PHD secures EGP 10.3 bn in financing for its Badya project: PHD has secured a long-term EGP 10.3 bn loan from a banking consortium to finance the development of its sustainable smart city Badya in New October City, according to a press release (pdf). The loan is the largest to ever be offered Egypt to a private sector company in the real estate sector, according to the release.

Badya? PHD’s EGP 100 bn Badya project is one of the company’s largest developments and is distinguished by its emphasis on sustainability and applying state-of-the-art tech applications.

Who’s involved? The banking consortium included Banque Misr, the National Bank of Egypt, Banque du Caire, Emirates NBD, Abu Dhabi Commercial Bank, Al Baraka Bank, Al Ahli Bank of Kuwait - Egypt, and the Industrial Development Bank.

Egypt purchases 3.1 mn tons of wheat to be supplied monthly through April

GASC secures huge wheat buy: State grain buyer GASC secured 3.12 mn metric tons of wheat to be supplied monthly between November and April, two unnamed sources with knowledge of the matter tell Reuters. The purchase — one of GASC’s largest — will see a monthly 510k metric tons of wheat sourced from the Black Sea region.

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

The details are fuzzy: The wheat will reportedly be supplied by a JV between an Egyptian company and a major global supplier. The price for each month’s supply will be assessed based on market price for the month, one source told the newswire.

Remember: The government has been looking to capitalize on a global dip in prices in efforts to bolster strategic wheat reserves amid geopolitical tension. President Abdel Fattah El Sisi reportedly personally ordered GASC's biggest ever tender in August after he received an intelligence briefing that raised concerns over our food security. The massive tender fell short of its target, with GASC purchasing 280k tons of the 3.8 mn tons it aimed to buy.

Question marks remain: According to Reuters, traders have expressed doubts that the order will be fulfilled, with one person “saying that it could be conditional on whether the company will be able to fulfill its October shipment” — GASC purchased 430k tons of Russian wheat in September for delivery this month.

The House committee results are in

House committee elections results are out: The leadership of many committees in the House of Representatives will look much the same in this new legislative cycle as it did in the previous one, with this week’s elections returning many of the same faces for another term. The pro-government Mostaqbal Watan Party dominated the proceedings, securing leadership of 17 of the 25 committees.

Here’s the lineup of who’s running business-relevant committees:

Economy: Mohamed Soliman, Mostaqbal Watan MP. (Re-elected)
Foreign Affairs: Karim Darwish, Mostaqbal Watan MP. (Re-elected)
Planning and Budgeting: Fakhry El Fiqi, Mostaqbal Watan MP, former IMF advisor and CBE board member. (Re-elected)
Industry: Mohamed Al Sallab, Mostaqbal Watan MP. (Re-elected)
Energy and Environment: Talaat El Sewedy, Mostaqbal Watan MP. (Re-elected)
Housing: Mohamed Attia Al Fayoumi, Mostaqbal Watan MP. (Re-elected)
Tourism and Civil Aviation: Nora Ali, Mostaqbal Watan MP. (Re-elected)
SMEs: Mohamed Kamal Marie, Mostaqbal Watan MP. (Re-elected)
Transport: Alaa Abed, Mostaqbal Watan MP. (Re-elected)
Health: Ashraf Hatem, Mostaqbal Watan MP. (Re-elected)
Education: Sami Hashem, Mostaqbal Watan MP. (Re-elected)
Agriculture and Irrigation: Hisham El Hosary, Mostaqbal Watan MP. (Re-elected)
Constitutional and Legislative Affairs: Ibrahim El Heneidi, independent MP. (Re-elected)
Telecoms and IT: Ahmed Badawi, Mostaqbal Watan MP. (Re-elected)

** MPs are back to work next week: MPs will reconvene on 7 October, marking the official start of the fifth legislative season.

FP7McCann Cairo expands partnership with McDonald’s by securing its social media accounts

McDonald’s looks to FP7McCann for help with its socials: FP7McCann Cairo secured McDonald’s social media account in Egypt, expanding their existing partnership which goes back to 2002, according to a statement (pdf). The agency will manage both online and offline communications for McDonald’s, in addition to the brand and local store marketing accounts that it already runs.

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

Remember: The vast majority of McDonald’s restaurants are franchise locations — and in Egypt every single one of the company’s restaurants is owned and run by its local franchise partner Manfoods. Mansour Group subsidiary Manfoods has over 100 outlets across the country as part of its exclusive franchise that started in 1994 when it opened the fast-food chain’s first restaurants in the country.

What they said: “This expanded role allows us to further integrate our creative strategies across all platforms, ensuring that McDonald’s continues to resonate with its audience in the most impactful way possible,” FP7McCann Cairo Managing Director Sondos Effat said.

Talk shows continue to discuss escalating conflict between Iran and Israel

Last night’s talk shows continued their coverage of the recent Iranian missile attack on Israel, including possible repercussions and potential Israeli responses. On Tuesday, Iran launched over 200 missiles at Israel in response to Tel Aviv’s assassination of Hezbollah secretary-general Hassan Nasrallah and Hamas’ political leader Ismail Haniyeh.

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

Why hasn’t Israel responded yet? Responding to Iran’s attack is somewhat complicated for Israel, military strategist and commentator Samir Ragheb told Yahduth Fi Masr’s Sherif Amer (watch, runtime: 5:26). A strike inside Iran would require flying over Iraqi and Jordanian airspace, Ragheb explained, Israel would need to find a longer alternative route that would likely require a refueling aircraft — meaning Israel would first need to coordinate with the US.

Iran’s allies are ready to join the war: In response to speculation that other parties — such as Yemen’s Houthis or armed militias in Iraq — might join the conflict, Ragheb said that it was very much a possibility (watch, runtime: 3:44). He added that the Houthis are already participating in the war through an attack launched last month in addition to their disruption of navigation in the Red Sea. These actions have had a more significant impact on Israel than Iran’s recent strike, Ragheb said.

A Brazilian logistics zone in SCZone?

LOGISTICS-

Brazilian investors eye setting up SCZone logistics zone: Seven Brazilian investors are currently conducting studies to establish a logistics zone in the Suez Canal Economic Zone (SCZone), Chief Director of the Arab-Brazilian Chamber of Commerce in Cairo Michael Gamal told Al Borsa.The zone would act as a hub to import corn, soybeans, sugar, and other products that would then be re-exported to other Arab and African nations. More details should be unveiled at some point in 2025, he added.

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

Remember: Brazil has been showing interest in investing in logistics and green energy projects in the SCzone for some time — the country has stepped up its interest in the region in general over the last year, exporting more beef and chicken to Egypt and upping its business with Saudi Arabia.

INVESTMENT-

Geyushi to invest EGP 1 bn in the local market: Egypt’s Geyushi Motors plans to invest EGP 1 bn in its heavy-duty trucks business starting next year, vice chairman Khaled Geyushi told Al Borsa. The investments will focus on increasing the local component ratio in its products and enhancing its manufacturing capabilities. Geyushi exports 80% of its buses, with the remaining 20% sold locally.

DEBT-

CIB secures USD 150 mn loan from the IFC: CIB signed an agreement with the International Finance Corporation for a USD 150 mn loan facility with a maturity period of ten years, according to an EGX disclosure (pdf). The loan is intended to help the lender maintain a capital base that can withstand external influences.

Global tech stocks had a good month in September

Tech stocks rode a high in September on Fed rate cuts + AI optimism: Tech equities in the US saw surging market caps last month, supported by the US Federal Reserve’s decision in late September to kick off its monetary easing cycle with a 50 bps interest rate cut and continued optimism around developments in AI, Reuters reports.

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

Breaking with history: September is typically the worst month for US equity markets, a trend that has been largely maintained since 1950. Historically speaking, the S&P 500 “has generated an average monthly decline of 1.2% and finished higher only 44.3% of the time dating back to 1928,” Market Watch says, citing Dow Jones Market Data.

How top players fared: Oracle’s market cap rose 21.3% m-o-m at USD 472.2 bn as the company capitalized on growing demand for its AI-powered cloud services, with Meta also up 10% at USD 1.45 tn on the back of product unveilings. Automaker Tesla — which is sometimes considered as a tech player — also posted a 22.2% jump in its market cap to USD 834.4 bn, buoyed by record EV sales in China, and plans to roll out its full self-driving software to markets in Europe and China.

IN CONTEXT- The top five largest companies globally by market capitalization are tech or tech-related firms. Apple is at the top of the league with a market cap of USD 3.54 tn, followed by Microsoft (USD 3.2 tn), Nvidia (USD 3.0 tn), Alphabet (USD 2.05 tn), and Amazon (USD 2.0 tn). Saudi Aramco — whose USD 1.75 tn market cap places it in the sixth spot — and Walmart are the only two non-tech companies among the top 10 globally.

EGX30	31,333	-1.7% (YTD: +25.9%)
USD (CBE)	Buy 48.30	Sell 48.44
USD (CIB)	Buy 48.32	Sell 48.42
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,044	-1.7% (YTD: +0.6%)
ADX	9,307	-1.1% (YTD: -2.8%)
DFM	4,440	-0.8% (YTD: +9.4%)
S&P 500	5,710	0.0% (YTD: +19.7%)
FTSE 100	8,291	+0.2% (YTD: +7.2%)
Euro Stoxx 50	4,963	+0.2% (YTD: +9.8%)
Brent crude	USD 74.63	+1.5%
Natural gas (Nymex)	USD 2.89	-0.4%
Gold	USD 2,681	+0.4%
BTC	USD 60,874	-0.4% (YTD: +43.8%)

THE CLOSING BELL-

The EGX30 fell 1.7% at yesterday’s close on turnover of EGP 4.3 bn (7.6% above the 90-day average). Local investors were net sellers. The index is up 25.9% YTD.

In the green: Elsewedy Electric (+6.5%), Palm Hills Developments (+2.7%), and AMOC (+2.5%).

In the red: Alexandria Container & Cargo Handling (-4.7%), GB Corp (-4.6%), and E-finance (-4.3%).

Ahmed Sabbour, Chairman & MD of Al Ahly Sabbour

Ahmed Sabbour, Chairman & MD of Al Ahly Sabbour: 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 Chairman and Managing Director of Al Ahly Sabbour Ahmed Sabbour (LinkedIn). Edited excerpts from our conversation:

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

I’m Ahmed Sabbour and I am an Egyptian citizen who is deeply in love with his country and its people. I’m simply a tradesman and a laborer in the real estate sector. I am a 60 -year-old married man with six children — four girls and two boys.

As the chairman of several Al Ahly Sabbour companies and the managing director of others, my focus is on cultivating the right environment for our team to thrive. Whether it is identifying new business opportunities, building relationships for future projects or setting organizational goals, my daily activities revolve around helping create a cohesive vision for all of Sabbour’s companies. I recognize my role as a specialized engineer, and I believe it’s essential to empower our marketers, salespeople, and other professionals at Sabbour to excel in their own areas of expertise.

Sabbour’s origins are rooted in family. We started as a boutique real estate company with initial capital of EGP 62.5k, which was founded by four partners — my father as chairman, myself as the CEO along with my mother and brother. Our firm quickly grew bigger, becoming Al Ahly Sabbour, through a partnership with the National Bank of Egypt (NBE) — whom we have a 30-year standing relationship with. With NBE, we increased our paid capital to EGP 5 mn. Today, Al Ahly Sabbour’s capital stands at EGP 300 mn and we plan to increase it to EGP 550 mn by the end of the year.

Egypt’s real estate business is a tough one — it's difficult to keep up with the constant industry changes and economic forecasts for the long term. If I were in the fashion industry for example, my plans would be relatively short-term as the product I'm selling takes three months or so to sell, but working with land and properties requires a more expansive vision, demanding that we factor in economic expectations and potential shifts five years down the line.

Green construction has taken the lead as the leading trend in the industry, with more companies looking to implement sustainable construction practices. Entertainment and catering to the youth are two other growing trends in Egypt’s real estate market. At Sabbour, we recognise we can no longer simply build homes and gardens, but we now need to provide varying entertainment services to create a completely integrated lifestyle. As the youth now represent some 70% of Egypt’s population, catering for them without ignoring other generations has become a growing focus for the industry.

The first two hours of my day are for reading. I wake up somewhere between 7 and 7:30am, and that’s when I check the day’s EnterpriseAM Egypt issue, go through my emails, and my WhatsApp — which I now consider an email as well. If there is a report or something in the press I am looking to read, that’s when I would do that. My reading time is sometimes cut to an hour and half, to make time for a 30-minute workout. After work, my time is dedicated to my family, and I try to always keep up with my friends, especially my schoolmates. If I get the chance, I might have an hour or two of me-time during the week — that’s when I'd listen to some music.

My workday consists of meetings with all the company’s stakeholders. I have internal meetings with colleagues, and external meetings with clients, designers, architects, and government officials which usually go on until 7pm. Crisis management is also a part of my day, with emergency meetings often coming up.

I navigate my daily to-do’s by setting clear priorities. Every morning, I map out my daily priorities on a piece of paper. This simple practice allows me to order my tasks by importance, helping me set my own goals while effectively delegating responsibilities to my colleagues.

Making time for worship is the one constant in my day that will never change. Praying everyday and reading five pages of the Quran will always be on my daily agenda. I also enjoy doing small acts of kindness, whether for a friend or a stranger. At 60, I am increasingly focused on integrating these practices in my life. I strongly believe in the importance of contributing to job creation and charitable efforts — which are high on my personal agenda moving forward. I am also looking to allocate more time for my mother, wife, and kids.

Frankly, I am bad at work-life balance. Despite emphasizing the importance of work-life balance to my colleagues, I find myself not practicing what I preach. Moving forward, I want to make time for the four most important pillars in my life beyond work: family, friends, my relationship with God, and myself.

Social activities are my go-to method of switching off — I enjoy dinner outings with friends, or spending time at sports clubs. My wife and I also really enjoy watching movies and TV shows together, so as a night owl I'll be up until 1-2am watching classic Egyptian movies.

Other than old movies, I enjoy reading war books, like The Art of War by Sun Tzu. They not only get me out of the work mood, but also help me be more strategic and manage my business plans.

The best piece of advice I ever received came from my father, who was my lifelong mentor. He encouraged me to read books on war to understand business strategy, but most importantly, he taught me to keep learning everyday of my life. He also shared another piece of advice that stuck with me — one he had learned from his peer — “it’s important for your colleagues to worry about you rather than fear you.”

CALENDAR

2024

OCTOBER

1-3 October (Tuesday-Thursday): Cairo Sustainable Energy Week, Cairo, Egypt.

5-8 October (Saturday- Tuesday): Techne Summit Alexandria, Biblioteca, Alexandria.

6 October (Sunday): Official holiday in observance of Armed Forces Day.

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 FinExpo Conference and Exhibition, 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 (MOC), 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.

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.

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.

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