Good morning, folks. As we enter the second half of this shorter than usual workweek, tourism investment news is leading the local business news cycle with reports of local companies investing in new hotels at home and abroad. Also in today’s issue is securitization news, IPO updates, data center plans, and more.

BUT FIRST- We’re now only six days away from this year’s EnterpriseAM Finance Forum, taking place on Tuesday, 24 September.

Headlining the EnterpriseAM Finance Forum this year is Investment Minister Hassan El Khatib, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda, which you can view here:

• Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
• Looking from the outside in — what foreign investors and strategics think about Egypt right now.
• The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
• Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
• A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
• Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
• The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

Haven’t requested an invitation yet? Do it today — space is limited. Tap or click heretolet us know you’re interested.

** IMPORTANT NOTE — If you’ve already received your invitation on email, you *must* click through to confirm you’re attending.

PSA-

WEATHER- Temperatures will sit in the mid-30s in Cairo today, with a high of 34°C and a low of 24°C, according to our favorite weather app.

It will be just as warm in Alexandria today, with a high of 34°C and a low of 23°C.

** 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.

WATCH THIS SPACE-

#1- The future of blackouts is still up in the air: Although many of us have been expecting power outages to return this week, a government source told us that it remains unclear whether or not the blackouts will be returning as the Egyptian Electricity Holding Company is yet to receive a decision from the cabinet. Our source pointed to a notable dip in energy consumption — likely thanks to us being in the final stretch of the summer season — and the government securing the needed LNG supplies to keep the lights on.

Remember: Prime Minister Moustafa Madbouly specified in a mid-July presser that the summer respite from blackouts would come to an end in mid-September.

#2- Investment banks are lining up to manage CID, Misr Pharma offerings: Five investment banks have submitted bids to state-owned pharma manufacturer HoldiPharma to manage the planned offerings of subsidiaries Chemical Industries Development (CID) and Misr Pharma on the EGX, Al Borsa reports, citing unnamed government sources. HoldiPharma will select a bank before the end of the year, with the offerings expected to take place in 1H 2025.

Remember: CID and Misr Pharma are on the government’s list of 35 state-owned companies earmarked for privatization via stake sales to strategic investors, the EGX, or a mix of both. HoldiPharma was said to be looking to appoint an investment bank to promote and manage the offering of Misr Pharma to a strategic investor back in July and a number of investors were reportedly in talks with the Public Enterprise Ministry to acquire stakes in the two pharma firms via a capital increase in June 2023.

#3- The gov’t is getting ready to offer more shares in Kima and EgyptAlum on the EGX: The government has began taking the necessary steps to offer additional shares of Egyptian Chemical Industries (Kima) and Egypt Aluminum (EgyptAlum) on the EGX, Public Enterprises Minister Mohamed El Shimi told Asharq Business. The government is currently in the process of finding an investment bank to provide technical consultations, El Shimi added.

HAPPENING TODAY-

#1- It’s day one of BEBA’s business mission to the UK: The British Egyptian Business Association (BEBA) will today kick off its three-day business mission to the UK under the theme Invest in Egypt: Your Gateway to Growth. The mission’s organizers describe the trip as a “crucial moment for Egypt to showcase its progress and future plans, providing a unique opportunity for investors to engage directly with the policy makers shaping Egypt’s economic future.”

Some big names will be in attendance: The mission will include Finance Minister Ahmed Kouchouk, Investment Minister Hassan El Khatib, SCZone head Walid Gamal El Din, ACUD Chairman Khaled Abbas, and Financial Regulatory Authority boss Mohamed Farid, who will take part in ministerial sessions that aim to highlight the country’s “economic progress and ongoing reforms.” Some important figures from HSBC will also join the mission, including HSC Egypt CEO Todd Willcox.

What they said: “The interest we have seen from clients and global investors in the different international roadshows we have organized underscore how highly they regard future opportunities in Egypt. This year’s delegation is very important as it is an opportunity to consider Egypt’s economic reform programme in view of evolving global circumstances and to support the government’s ambitions to attract more foreign direct investment,” said Todd Wilcox.

#2- Gaza tops the agenda during Anthnony Blinken’s three-day visit to Egypt: It’s day two of US Secretary of State Antony Blinken’s trip to Caio to co-chair the US-Egypt Strategic Dialogue alongside Foreign Minister Badr Abdelatty, according to a US State Department press statement. Although the dialogue is set to also discuss strengthening economic, cultural, and educational ties, discussions are expected to focus on a Gaza ceasefire agreement in this and other meetings in the sidelines that Blinken is expected to have with high-level officials.

Unlike Blinken’s previous trips to the region, Israel is conspicuously absent from his itinerary: In a move that some in the international press are interpreting as sign of strained US-Israeli relations, Blinken will not be stopping off in Israel on his tenth trip to the region during the nearly year-long conflict. Also catching the attention of the international press is the absence of the usual hopeful forecasts from Blinken and the Biden administration of a supposedly fast-approaching ceasefire agreement.

THE BIG STORY ABROAD-

Our corner of the world is unfortunately once again dominating the international news cycle after an Israeli operation that killed nine and injured thousands in Lebanon “marked an extremely concerning escalation,” according to UN Special Coordinator for Lebanon Jeanine Hennis-Plasschaert.

At around 3:30pm in Lebanon, pagers belonging to Hezbollah members began exploding, injuring more than 2.7k and killing nine people — including a child. It is still unclear how Israel — which has not publicly admitted responsibility — conducted the attack, with some outlets reporting that they likely sabotaged supply lines and rigged the Taiwan-made pagers with small explosives prior to their arrival in Lebanon. An official from the armed group described the attack as the “biggest security breach” that Hezbollah has faced in the nearly year since 7 October.

All eyes are now on what happens next, with Hezbollah vowing that Israel would receive “fair punishment” for the attack and an increasingly belligerent Netanyahu saying Israel will pursue a “fundamental change in the security situation in the north” as part of its war aims.

WHILE IN AI NEWS- BlackRock and Microsoft are teaming up to bring us a USD 30 bn AI investment fund to invest in rapidly scaling up the power and digital infrastructure to get ahead of potential bottlenecks in AI’s growth trajectory.

The news comes as the US continues to throw up regulatory hurdles to stop AI tech from getting into Chinese hands, with Microsoft calling yesterday for more “clarity and consistency” on US chip export controls to the Middle as the tech giant seeks to expand its collaboration with Abu Dhabi-based AI company G42. Meanwhile, over in Japan, policymakers are mulling a deal with the US that would curb chip exports to China and prevent Japanese tech companies from falling afoul of new US export controls — though potentially at the cost of Chinese retaliation.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We speak to industry insiders and economists to find out whether there is a bubble brewing in the local real estate market.