Israel could boost gas exports to Egypt — eventually

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What We're Tracking Today

Brics close to agreement on inviting new members as Madbouly lands at the summit

Good morning, friends, and a very happy THURSDAY to you all. No single theme runs through today’s issue, though we note with interest news that we might be able to import more Israeli gas — and that there is progress on the megaproject that is the redevelopment of the former NDP’s downtown HQ.

It’s the next-to-last weekend of summer here in Egypt. With more private international schools set to open their doors next week and the week after, we expect to hit “peak Sahel” this weekend. Leave early today if you can, and drive safely.

HAPPENING TODAY-

Madbouly in Joburg for the Brics summit: Prime Minister Moustafa Madbouly arrived in South Africa yesterday to attend the Brics summit on behalf of President Abdel Fattah El Sisi, according to a a cabinet statement. Madbouly is expected to deliver remarks today as well as participate in a number of official events.

A roadmap for expansion is close: The leaders of Brazil, Russia, India, China and South Africa are reportedly close to an agreement about inviting new member countries to join the bloc, according to Reuters. The five countries were expected to sign a final pact yesterday after South Africa's foreign minister announced an agreement had been reached, but sources tell the newswire that Indian Prime Minister Narandra Modi made a last-minute demand to change the criteria for entry. Talks continue.

This is potentially important for Egypt: Egypt is among the 20+ countries that have formally applied to join the organization, a move that could — in the longer term — allow it to temper its reliance on the USD for trade and open the door to new sources of investment.

The door to the NDB will remain closed — for now: The Brics’ multilateral lender, the New Development Bank, will not be welcoming any new members during the summit, the bank’sCFO, Leslie Maasdorp, told Reuters yesterday. The bank’s members are considering the entry of at least another 15 countries, including Saudi Arabia, Algeria, and Argentina, he said.

SOUND SMART- The NDB is a multilateral development bank set up in 2014 by the Brics to fund infrastructure projects in its member countries. Egypt earlier this year became an NBD member country.

The EIB is concerned about the growing multipolarity: President of the European Investment Bank Werner Hoyer has voiced concern about developing nations’ growing interest in non-Western lenders like the NDB and called on developed countries to do more to keep them in the orbit of Western financial institutions, according to Reuters.

SMART POLICY- FRA invites applications for a new local credit rating agency: Companies have until 22 November to apply to set up a credit rating agency, with the Financial Regulatory Authority (FRA) set to award a license to just one of the firms, the regulator said yesterday. The company that takes home the license will be scored on the basis of its involvement with or certification by international credit rating agencies, the makeup of its ownership structure, its level of compliance with international credit rating standards, and technical and feasibility studies.

REMEMBER- The FRA wants more local rating agencies: The regulator last year made it easier for rating agencies to get operating licenses in Egypt by scrapping a requirement for them to be at least 10% owned by international firms. The country currently only has one credit rating agency, the Middle East Rating and Investors Service (MERIS).

HAPPENING THIS WEEK-

The financial markets will have their eyes on Wyoming today when global central bankers, economists and policymakers head to Jackson Hole for an annual meeting of central bank officials. US Federal Reserve Chairman Jerome Powell’s speech will be the headline event as investors try to gauge where interest rates are heading in the coming months. The event runs Thursday through Saturday.

Signs of stress in the US and European economies spark market rally: US and European stocks jumped yesterday on optimism that yesterday’s disappointing economic data will push central banks to relent on their hawkish monetary policies. Stocks climbed their most since June and bond yields fell after flash PMI figures indicated that a contraction of private-sector activity in the eurozone intensified in August. In the US activity grew at its weakest rate since February. Investors hoping that a deterioration in economic activity will push the Federal Reserve and the European Central Bank to stop raising interest rates and bring forward plans to loosen policy.

The rally is continuing in Asia this morning where it’s a sea of green ahead of the Jackson Hole meet. Expect more of the same in the US and Europe later today.

THE BIG STORIES ABROAD-

Putin’s chef-turned-mutineer dies in plane crash: Yevgeny Prigozhin, the leader of the Wagner mercenary group who mounted a brief rebellion against the Russian defense ministry in June, has been presumed dead after a private jet he was on crashed outside of Moscow yesterday. (Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Wall Street Journal | CNBC)

US election 2024: US media has its eyes on the first debate in the Republican primary contest, which was just wrapping up as we prepped for dispatch. With Trump choosing to avoid the debate, the eight candidates will be vying to become the primary challenger to the former US president, who remains far ahead in the opinion polls. (Associated Press | Reuters | New York Times | Washington Post | Wall Street Journal)

Egyptian grain up in flames in Ukraine: Some 13k tons of grain headed to Egypt and Romania were destroyed in a Russian drone strike in the south of Ukraine yesterday, Ukraine’s deputy prime minister, Oleksandr Kubrakov, said, according to Al Arabiya.

India’s move to food protectionism continues: Indian government sources say thatNew Delhi will ban sugar exports in the upcoming season beginning October to cover local demand and tamp down on food inflation which is currently at a three year high 11.5%, according to Reuters. This would be the latest food protectionist measure by India, which in recent weeks has banned the export of non-basmati white rice and a new tariff on onion exports.

CHECK OUT OUR AGENDA-

The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

This is our first two-day event,which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS.

Our full agenda will be out at month’s end. Among the topics we’ll be discussing:

Looking into the crystal ball: Top industry CEOs will join us on stage to answer tough questions on where we are as an industry, the forces that will shape all of our businesses going forward, and their views on dealflow in the year ahead.

Surviving nuclear winter: We discuss how private equity and venture capital players are tackling challenges including fundraising and deployment in an environment in which it’s awfully difficult to price your local asset in USD terms.
The robots are coming: We explore what the coming AI and big data means for the industry in our part of the world and what can bankers, NBFI, and fintech players do to capitalize on them.
What do you do when nobody wants to be a banker — and when those who are already (investment or commercial) bankers are either (a) dreaming of doing their own startup or (b) moving to Dubai (or, increasingly, Riyadh)? We go deep into the weeds with industry leaders on how they’re building talent for tomorrow.
NBFIs are a bubble. Prove me wrong: We chart the explosive rise of NBFIs and ask whether the industry is ready for a wave of consolidation. We’ll dive into whether consumer finance is starting to mature as a segment — and ask which sector is next.
What does 2024 hold in store for fintech: We dive deep into which categories are getting traction, which segments will account for the lion’s share of future growth, what business they would start today if they could, and what we can expect of the sector in the year ahead.
What’s a bank, anyway? Wherein we talk challenger and neobanks with the players looking to shake up the brick-and-mortar industry.

** NEW: MORE NETWORKING TIME- Our agenda includes expanded networking time, including an expanded coffee break and a post-event networking room for you to interact with your peers and speak one-on-one with the team at Enterprise.

STAY TUNED for more detail about our exciting agenda in the weeks to come.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial.

CIRCLE YOUR CALENDAR-

Our friends at Sodic will hold their annual charity run on Friday, 15 September at Sodic West, according to a company press release ( pdf ). The event will feature 3-km, 5-km and 10-km races and is organized in partnership with the TriFactory to support the Magdi Yacoub Heart Foundation. Register here.

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

Solasi Wellbeing Festival has been lovingly created by Yes Yoga and Osana Family Wellness and takes place at beautiful Somabay from 21-23 September. Solasi brings you sunrise yoga, sound healing, funky classes, morning runs, enlightening workshops, healing treatments, tai chi, meditation, kids’ activities, locally sourced food, and lots of dancing.

Don't miss your chance to take #ThreeDaysOff and flow with us at Solasi at Somabay. Head to solasifestival.com to find out more and book your pass today.

Israel could boost gas exports to Egypt — eventually

We could soon be importing more Israeli gas: Israeli Energy Minister Israel Katz said yesterday that Israel will increase gas exports to Egypt from its offshore Tamar field, according to reports from Bloomberg and Reuters yesterday. The decision was taken to “increase the state's revenue and strengthen diplomatic ties” between the two countries, Katz wrote on social media platform X (formerly known as Twitter).

How much could we be getting? Israel will raise gas exports by an additional 38.7 bn cubic meters (bcm) over 11 years, according to the ministry, which translates to 3.5 bcm per year if you average it out. This could later be increased to 44 bcm. Egypt imported 4.62 bcm of gas from Israel last year.

T&Cs apply: The increased volumes will depend on output from the Tamar field increasing by 6 bcm per year from 2026 — some 60% higher than current production levels, the ministry said. Chevron and its partners in the field in December approved a final investment decision for a first phase of expansion, which will involve laying a new pipeline between the wells and the production rig.

We’re going to be waiting a while: The first expansion phase is expected to be completed in early 2025 and the second phase later the same year. Katz didn’t disclose a timeframe yesterday.

Egypt is hoping to increase shipments as soon as October: Asharq Business reported yesterday that the government hopes to increase imports of Israeli gas by more than 30% this October due to falling seasonal demand in Israel, citing an anonymous official.

We’ve been pushing for an increase: Israeli business daily Globes reported last month that Egypt’s intelligence chief Abbas Kamal asked Israel’s national security head to increase gas exports in a recent meeting.

We need the gas: Egypt has struggled to keep the lights on this summer partly due to falling domestic gas production, which helped trigger weeks of rolling blackouts across the country. Soaring domestic demand has also forced the country to step back from the international markets this year, with Egypt exporting hardly any LNG since June.

The Oil Ministry has some ambitious export targets: The Madbouly government is targeting oil and gas exports of USD 21 bn for 2023, up 15% from USD 18.2 bn in 2022. The state is targeting another c.15% increase in 2024 to USD 24 bn.

REMEMBER- Egypt and Israel signed a landmark gas export agreement with the EU last year to ramp up exports to the bloc as it looks to phase out reliance on Russian fossil fuels.

We may get a whole new pipeline for Israeli gas: Israel’s NewMed is considering constructing a new pipeline linking Israeli fields to our liquefaction facilities but is also looking at acquiring a floating LNG terminal, enabling it to export directly to Europe.

Gulf-backed developers to mobilize USD 5 bn for redevelopment of the former NDP HQ

The redevelopment of the former NDP HQ appears to be moving forward after Prime Minister Moustafa Madbouly last week transferred to the land to two developers who, according to the chairman of the Sovereign Fund of Egypt’s tourism sub-fund, will embark on a USD 5 bn project backed by Gulf capital.

MEET THE DEVELOPERS-

Handing over the land: The PM last week directed the SFE to transfer the ownership of the land of the dissolved National Democratic Party’s headquarters to two developers, who will be in charge of redeveloping the area, according to a decision published in the Official Gazette on 16 August.

Remember: The area is set to be transformed into a hotel as part of several landmark projects to develop old buildings in central Cairo and make the area more attractive for investments. The SFE had invited private-sector investors to bid for the project in a tender in 2022 and was expected to announce the results before the end of the year. Planning Minister Hala El Said said in June that the chosen consortium would be announced within two weeks (watch, runtime: 18:32).

Enter Nilus: The SFE’s tourism sub-fund will transfer the 16.6k square-meter plot of land to Nilus Hotel and Commercial Services and Nilu s Residential Services, according to the decision.

This appears to be a JV between the SFE and Gulf investors: Both companies count two of the sub-fund’s directors — the SFE’s former chief investment officer Abdalla ElEbiary and Ihab Rizk — as well as its CEO, Amr Elhamy, on their boards. Elhamy El Zayat, chairman of the tourism sub-fund, reportedly told Al Manassa that Emirati investors hold stakes in the firms. El Zayat didn’t disclose the names of the investors nor the size of their stakes. A source at the SFE declined to comment when we reached out.

Remember: A number of Emirati companies were reported earlier this year to be in the running for the tender.

A SEVEN-FIGURE INVESTMENT-

Big money: The redevelopment plans will see around USD 5 bn invested in a 7-star, 220-meter high hotel, residential buildings, and a multi-storey garage with capacity of up to 6k cars, El Zayat told the news outlet. Most of the financing will come from outside the country, he said, without providing further details.

We’re looking at an end-2029 completion date: The company expects to have received the required permits in the coming weeks, allowing it to start work before the end of the year, El Zayat said, adding that it will take six years to complete.

FX revenues for the state: The final agreement will hand Nilus usufruct rights to the land, allowing the state to charge an annual fee in FX, in addition to receiving a portion of the revenues from the project, he said.

Egypt’s investment authority approves EGP 500 bn Tarboul industrial city

Tarboul gets the green light: The General Authority for Investment and Freezones(GAFI) has approved GV Investments ’ ambitious Tarboul industrial project in Giza, it said in a statement yesterday. The 26k-feddan city is expected to include industrial zones, a dry port and other logistical facilities, financial and business centers, and residential areas, according to its website. GAFI did not disclose a specific timeline for the project.

It comes with a hefty price tag: The project will require some EGP 500 bn (USD 16.2 bn) of investment, according to the statement. GV Investments hasn’t provided details on financing for the project.

Step one: The city will be built in seven phases, the first of which comes with a price tag of USD 3 bn, Al Mal reported yesterday, citing GV Investments chairman and founder Sherif Hammouda. The first phase will include food manufacturing facilities, housing, and a factory waste recycling project, he said previously.

Mass appeal: The city will include 12 separate industrial zones that cater to a wide range of industries, including agribusiness, building materials, medical and pharma, high-tech manufacturing, textiles and chemicals, according to Hammouda.

Who's involved? Three contractors have already begun working on preparations for the project, including Hills Construction, El Shennawy Gro up, and Abu Arida for Sons Contracting, Hamouda is quoted as saying by the outlet. Qalaa Holdings’ Taqa Arabia is set to carry out infrastructure works, including constructing power stations, water stations, and wastewater facilities, while Amarenco SolarizEgypt is set to contribute and provide clean energy infrastructure. Export Development Bank of Egypt(Ebank) and Al Ahli Bank of Kuwait will both provide financing to help SMEs establish themselves in the city, with Ebank agreeing to lend up to EGP 10 mn. Meanwhile, GV said earlier this year that it had inked an agreement with Orange to provide “smart cities solutions,” without elaborating, and signed a MoU with French consulting and engineering firm EGIS for the development of the city.

Egyptian real estate player Palm Hills Developments’ income up 9%, revenues stay flat

Palm Hills Developments’ (PHD) revenues remained flat at EGP 6.9 bn in 1H 2023, according to the real estate developer’s earnings release (pdf ). Net income after tax and minority interest increased 9% y-o-y to EGP 608 mn. Revenues remained unchanged “as the majority of sales in 1H 2023 were apartments that will be recognized as revenue once delivered,” PHD writes.

Record sales: The company’s decision to hike prices saw new sales hit an all-time high of EGP 12.9 bn in 2Q 2023, an increase of 150% y-o-y, despite lower volumes, according to the release. West Cairo projects dominated new sales. “We have increased our selling prices 60-70% over the past year to price-in the increases in the prices of construction materials and the rise in interest rates,” PHD co-CEO Hazem Badran told CNBC Arabia (watch, runtime: 11:42). New sales for the first half of the year increased 84% y-o-y to EGP 19.6 bn even as the number of units sold slipped 10% to 1,688.

Rising expenses: Higher interest rates helped the company’s financing costs doubleto EGP 627.7 mn while construction spending rose 123% to EGP 3.8 bn — more than it spent on construction in all of 2022 — after it struck several bulk agreements to secure inputs highly exposed to the USD, the company said.

What’s next: “We expect 3Q 2023 to maintain strong sales momentum, evidence seen after several successful launches in the North Coast and steady sales pace across the rest of our projects since the beginning of the quarter,” said Executive Chairman Yasseen Mansour. “We remain confident in the ability of our company to accommodate the current uncertainties.”

Mashreq appoints Faisal Al Shimmari as head of ESG and corporate strategy

#1- Mashreq has appointed Faisal Mohammed Al Shimmari (LinkedIn) as its head of ESG and corporate strategy, it said in a statement (pdf). Al Shimmari enters the role after serving as the bank’s senior vice president and head of risk strategy and governance. In three decades, Al Shimmari has been an IT governance manager at Abu Dhabi’s Interior Ministry, a columnist at Emarat Al Youm, and chief information security officer at Abu Dhabi Police. The appointment is subject to regulatory approval.

#2- The Egyptian Securities Federation has elected former Investment Minister Ashraf Salman as its new chairman, Hapi Journal reports, citing Mohamed Kamal, a board member of Elite Financial Consulting. Salman served as investment minister between 2014 and 2016 and is currently the chairman of the state-owned media giant United Media Services.

It was a mixed bag on the airwaves yesterday

Last night on the airwaves: The latest from the Brics summit in South Africa, more covid-19 coverage, and updates on the upcoming presidential election.

The latest from Brics: The nation’s talking heads were once again focused on the Brics summit in South Africa, where the five nations yesterday came to an agreement on how to expand the bloc of emerging economies (more on this in this morning’s What We’re Tracking Today, above). Economist Moustafa Badra was on Al Hayah Al Youm to discuss the key themes dominating the gathering: de-dollarization, trade and multilateral finance (watch, runtime: 7:58). Masaa DMC (watch, runtime: 11:28) and Ala Masouleety (watch, runtime: 9:49) also had coverage.

Election 2024: The National Election Authority announced that it welcomes the presence of international and local election observers to monitor the upcoming presidential election, said Sherdy (watch, runtime: 1:23). Meanwhile, pro-government party Mostaqbal Watan said yesterday it would endorse President Abdel Fattah El Sisi’s expected bid to secure a third term in office. Ala Mas’olueety (watch, runtime: 12:47) and Masaa DMC (watch, runtime: 7:49) also gave the election airtime.

Covid-19: Masaa DMC (watch, runtime: 5:12) and Ala Masouleety (watch, runtime: 6:46) continued the covid chatter, a day after the Health Ministry confirmed that the Eris subvariant had been detected in the country for the first time.

The recruitment drive for Ebda schools has started: The National Initiative for Developing Egyptian Industry (Ebda) has opened the application for teacher roles at its government schools in Badr and Damietta, Bassan Hussein, member of the initiative, told Sherdy (watch, runtime: 6:21). Ebda schools are focused on technical sciences and are launched through a partnership between the initiative and the Education Ministry. Accepted teachers will undergo training on new curriculum and new teaching methodologies before they start teaching, Hussein added.

Hisham Kassem, the former publisher of the Cairo Times, has been arrested

Leading the conversation on Egypt in the international press this morning: Storied newspaper publisher Hisham Kassem has been detained, Reuters writes, quoting his lawyer as saying Kassem has been remanded to custody in prison while awaiting trial on charges of “slander and verbal assault.” The slander charges appear to relate to a dispute between Kassem and a former activist. Kassem said on his X(formerly Twitter) feed that he would not bail himself out. He has also been a critic of the removal of tombs from the City of the Dead to make way for new roads and bridges

Readers of a certain age will remember Hisham for his dogged support of independent media in Egypt, first as publisher of the high-profile English-language Cairo Times and, later, of Al Masry Al Youm. The newswire says Hisham, a liberal intellectual and organizer, is the founder and chairman of El-Tayar El-Hurr, or Free Current, a left-leaning group formed in June to participate in the upcoming presidential election process.

MEANWHILE- Brief collision in the Suez Canal: Two tankers carrying LNG and oil products collided in the Suez Canal yesterday, disrupting traffic through the water for several hours. (Associated Press | Reuters | Sky News | The National)

EGX approves Al Ezz Dekheila delisting. PLUS: News on corn, East Port Said, Microsoft

PRIVATIZATION-

Al Ezz Dekheila cleared for delisting: The EGX’s listing committee has approved the delisting of the shares of steelmaker Al Ezz Dekheila Steel, according to an EGX disclosure (pdf) yesterday. Al Ezz Dekheila shareholders earlier this month approved the voluntary delisting of the steel manufacturer from the EGX, alongside a plan to buy the 31% stake in the company previously owned by the government.

REMEMBER- Al Ezz Dekheila plans to retire all of the freefloat shares acquired from the government, leaving parent company Ezz Steel with almost full ownership of the now-private company — and potentially 100% control depending on how many minority shareholders decide to sell their shares. Ezz Steel is extending a payment guarantee worth up to USD 250 mn to finance the voluntary delisting of its subsidiary.

INFRASTRUCTURE-

The SCZone just put a price on the new East Port Said port terminal: The new 900-meter multipurpose terminal being developed by Sky Logistics and Reliance Logistics at East Port Said port will attract USD 565 mn of investment, SCZone Chairman Walid Gamal Eldin told Asharq Business yesterday. President Abdel Fattah El Sisi this week ratified a decision awarding the contract to the consortium. A pharma factory will be established in the SCZone in Sokhna with investments worth USD 100 mn, Gamal Eldin told the news outlet, without providing further information (watch, runtime: 1:05).

COMMODITIES-

GASC scraps int’l corn tender: Egypt’s state grain buyer GASC has canceled an international tender for yellow corn due to the higher prices offered by bidders, Reuters reports, citing reports by traders. The deadline for offers was scheduled for yesterday and shipments were set for 1-15 October and 15-30 October.

TECH-

Microsoft partners with gov’t to fast track digital transformation: Microsoft inked an MoU with the cabinet’s Information and Decision Support Center to train its employees and help integrate AI into its operations, cabinet said yesterday.

Global stocks lose almost USD 3 tn in August on China fears, rising US rates

Global stocks slump on surging yields, China slowdown fears: The US S&P 500, the European Stoxx 600, and China’s CSI 300 have lost almost USD 3 tn so far in August as investors fret over rising US interest rates and China’s economic slowdown, according to research picked up by the Financial Times. The poor performance puts MSCI’s global equities index on track for its worst monthly performance since last September. The drop marks a sharp change of fortunes from the first half of the year, when global equities soared on optimism that the Federal Reserve would make the fabled “soft landing” and wind up its tightening cycle without driving the US economy into recession.

Private credit on the up as private equity struggles: Some of the biggest private equity firms, including KKR and Bain Capital, are handing over distressed companies in their portfolios to the lending units of their competitors, the Financial Times reports. After what one Moody’s exec described as “many years of easy money and low interest rates where companies owned by private equity took advantage,” portfolio companies are now grappling with higher interest rates, persistent inflation, and supply chain problems. That has meant they’re increasingly being forced to cede heavily leveraged companies to private credit, the salmon-colored paper says.

ALSO WORTH KNOWING-

Oil supply cut: Saudi Arabia will likely extend its voluntary oil supply cut of 1 mn barrels per day into October in a bid to support prices, according to analysts. (Reuters)
QIA goes long on India: Qatar’s sovereign wealth fund has invested USD 1 bn in India’s largest retailer, Reliance Retail Ventures, and acquired a 2.7% stake in Adani Green Energy, the renewable energy arm of the conglomerate owned India’s embattled bn’aire Gautam Adani. (Bloomberg | Bloomberg)

EGX30	18,133	-0.5% (YTD: +24.2%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	11,367	-0.1% (YTD: +8.5%)
ADX	9,729	-0.4% (YTD: -4.7%)
DFM	4,099	+0.8% (YTD: +22.9%)
S&P 500	4,436	+1.1% (YTD: +15.5%)
FTSE 100	7,321	+0.7% (YTD: -1.8%)
Euro Stoxx 50	4,267	+0.2% (YTD: +12.5%)
Brent crude	USD 82.93	-1.3%
Natural gas (Nymex)	USD 2.48	-3.1%
Gold	USD 1,945.40	+1.0%
BTC	USD 26,577	+2.8% (YTD: +60.8%)

THE CLOSING BELL-

The EGX30 fell 0.5% at yesterday’s close on turnover of EGP 2.6 bn (27.5% above the 90-day average). Local investors were net sellers. The index is up 24.2% YTD.

In the green: Juhayna (+2.7%), TMG (+2.4%), and Sidpec (+1.5%).

In the red: Edita (-4.6%), Beltone Financial Holding (-4.1%), and Heliopolis Housing (-2.8%).

My Morning Routine: Erik Gordon, co-founder and CEO of Flash

Erik Gordon, co-founder and CEO of Flash: 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 Erik Gordon (LinkedIn), CEO of Flash.

My name is Erik Gordon and I am the co-founder and CEO of Flash. Flash is a fintech company that aims to enhance society’s financial wellbeing and improve people's relationship with money. Flash’s main product currently is called scan and pay, through which customers can scan a Flash QR code and pay with a saved card or digital wallet. From the business side, it’s an easier and cheaper alternative to the POS machine.

I'm American, but I've been living in the MENA region for the past 10 years. The Middle East has always been an interesting place for me to live and work. I love Egypt, where everything is unique, the people and the culture.

My first job was actually in the finance field in New York for two years, before I moved to Dubai to work as a business consultant, which was a nice stepping stone to emerging markets in the Middle East. I ended up coming to Egypt because I wanted to learn Arabic, and after studying for a few years I got a job at Uber. The company moved me back to Dubai for a regional role where I stayed for two years, but during the covid-19 pandemic I decided it was time to do my own thing and I moved back to Egypt to start Flash.

The idea of Flash sparked in my head when I first came to Egypt and I witnessed society's reliance on cash. During the time of covid, consumer behavior started to change and people started to rely more on digital payments. There were also many initiatives that rose and were supported by the presidency and the central bank. I felt it is a great chance to contribute to the digital transformation happening in the economy and have a real impact on people's financial wellbeing.

I used to be a night owl before, but I shifted to being a morning person and an early riser. I always love working at night, but I realized lately as I'm getting older that it's no longer the best approach and it’s not super healthy. Now, I usually wake up between 7 and 8 am. I then either go to the gym or spend some time doing yoga and meditation. I try to set time for myself and start the day with activities that give me positive energy. I go to the office using my bike, as both my work and home are located in Maadi and I really enjoy cycling in the beautiful streets.

My normal working day usually starts at 10 am when I arrive at the office. I start having calls with people either externally or internally discussing problems; basically anything that I'm the bottleneck for. Afterwards, I start having one-to-one meetings with my team members to discuss next week’s priorities. Sometimes I have external meetings with partners outside the office and in some cases it requires traveling.

My responsibilities as a CEO and co-founder of a startup aren’t fixed. My biggest responsibility is working with the team to solve whatever the toughest problems that we're facing. Sometimes it's related to recruiting or partnerships and sometimes to developing the product or the team. My team and I always make short-term or medium-term plans which are more efficient than long-term ones. Also, there's also a lot of admin work required in an early-stage startup.

On a personal level, I am trying to have more time dedicated to my family and friends, but having my family in the US makes that hard. At some point in life, you realize you get satisfaction by having deep connections with yourself, your family and your friends.

On a professional level, I want to have as much of a positive impact as I can. I would like to inspire more people, and encourage them to chase their dreams. I would also love to expand the business into other markets in Africa and the region.

For most of my career I had no work life balance and I was prioritizing work more, but I started having a work life balance and I believe it's important. You also have to know your worth as a person and not to measure it by the amount of success you achieved in your business.

When I’m done with my work, I usually love to get away from screens. I love reading, contemplation and journaling, preferably on my balcony while having a cup of herbal tea. I always love to read the Enterprise issues during the weekend as I prefer to read them in detail. Having a more in-depth look at the news and what is going around in Egypt and the world is important.

Harry Potter has always been my favorite book,as you'll find a lot of real life lessons applicable to life, to business and to leadership. Honestly, I've learned more from reading that book than I have from anything else.

The best piece of advice I have been given was “never settle.” The real growth, development and impact happens out of your comfort zone, and you won’t grow as long as you are staying in this zone. One of my colleagues in my first job in New York once told me this and it has always stuck in my head.

CALENDAR

AUGUST

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

23 August (Wednesday): Networking Summit and Industrial Service Providers Meeting, Green Desert Hotel, Sadat City.

24-26 August (Thursday-Saturday): Jackson Hole Economic Symposium.

28 August (Monday): The start of Flat6Labs’ inaugural 12-week contech accelerator program.

SEPTEMBER

September: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

1 September (Friday): Application deadline for the Smart Green Projects initiative.

3-5 September (Sunday-Tuesday): Pharmaconex, Egypt International Exhibition Centre, Cairo.

4-6 (Monday-Wednesday): Africa Climate Summit, Nairobi, Kenya.

7-8 (Thursday-Friday): Regional Forum for Sustainability & Development, Cairo.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

13 September (Wednesday): Deadline for settling outstanding military service in FX.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

20-23 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

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

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

27 September (Wednesday): Deadline for bidding in the fifth phase of the investment map offered by the Industrial Development Authority (IDA).

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

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm ElSheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

30 September (Saturday): The start of the new academic year for Egyptian schools.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

October: Egyptian-Jordanian Business Council, Amman, Jordan.

1-3 October (Sunday-Tuesday) International Expotec for water economics management, Egypt International Exhibition Center, Fifth Settlement, Cairo.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

10-12 October ( Tuesday-Thursday) Ceramica Expo, Cairo International Convention Center.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

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

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

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

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

3Q 2023: E-Finance to launch in Saudi Arabia.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

2024: Standard Chartered Bank to open a branch in Egypt.

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

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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