Good morning, ladies and gents. It’s all about investment and industry this morning as the Sisi administration doubles down on its two-pronged industrial strategy (localization + FDI) with a fresh batch of incentives aimed at accelerating manufacturing growth and drawing more foreign investment. This came on the same day as news broke of two new manufacturing projects led by Russian and Chinese firms that together could attract hundreds of mns of USD into the local economy.

ALSO- Mystery investors want a piece of Middle East Glass and UAE-based payments outfit Network International is looking to invest more here.

AND- Yesterday was a big day on the bourse and for one of Egypt’s key foreign policy challenges, with the EGX30 notching a record high.

WATCH THIS SPACE- Egypt, Ethiopia and Sudan finally restarting GERD talks after two years of stasis. Whether they’ll be able to hash out an agreement within the November timeframe mentioned last month, we’ll have to wait and see.

^^ More on all of these stories below.

MARKET WATCH-

EGX hits record high: The EGX30 closed at an all-time high yesterday, continuing a bull run triggered by the currency devaluations and soaring inflation that have seen the exchange’s market cap more than double in EGP terms over the past year. The benchmark index closed 1.7% higher yesterday at 18,517, eclipsing the previous record set in 2018.

Driving the rally: Local investors have poured into the market as they have looked to for an edge against devaluation of the EGP and soaring inflation. The EGX30 is up 114% in EGP terms since the market’s most recent low in July 2022. Local investors are running the market right now — they accounted for just over 75% of trading yesterday.

Up and down: Alexandria Containers led gainers yesterday, closing up 5.6%. Credit Agricole Egypt (+4.0%) and state fintech player E-Finance (+3.4%) also rose significantly. Real estate players led decliners yesterday, but with modest dips: Heliopolis Housing was down 0.7%, as was Palm Hills Developments.

HAPPENING TODAY-

Flat6Labs’ Makers accelerator starts: Flat6Labs’ 12-week construction tech accelerator program begins today. The program, dubbed Makers, is designed to provide support to construction technology startups in Egypt in partnership with SIAC and Dar Al-Handasah. Selected start-ups from the program will receive up to USD 100k per venture in addition to mentorship, business training, and access to networking events.

HAPPENING THIS WEEK-

Deadline day for the Smart Green Projects initiative: Submissions for the second phase of the Smart Green Projects initiative will be due on Friday, 1 September. The second iteration of the government-led initiative is accepting applications for projects working on addressing issues like energy, emissions reduction, sustainable agriculture and green buildings. Shortlisted projects will get the chance to present their vision during COP28. The top three contenders in six categories are also awarded prizes between EGP 250k and EGP 750k.

WATCH THIS SPACE-

Gold could hit the EMX in September: Gold seized by the Customs Authority could be sold through auctions on the Egyptian Mercantile Exchange (EMX) — FKA the Egycomex — in September, Assistant Supply Minister and EMX head Ibrahim Ashmawy said on Ala Masouleety on Saturday night (watch, runtime: 5:29). The ministry is studying selling gold bullion, silver and other precious metals on the exchange, Ashmawy said.

Up next for EMX listing? It’s unclear when gold could make it into the EMX, after EGX comms head Hesham Turk told local media in May that neither gold or aluminum will begin trading on the exchange this year. Sugar was the fourth commodity to make its debut on the EMX earlier this month after wheat, yellow corn, and bran.

THE BIG STORY ABROAD-

DNA results confirm Wagner chief’s death: Russian investigators announced yesterday that DNA tests have confirmed the death of Yevgeny Prigozhin, the former head of Russian military contractor the Wagner Group who died in a plane crash last week. (Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Wall Street Journal)

As is customary for a Monday morning, it’s slow on the international business news front as Western markets and the UAE start their new business week later today. “Slow” will likely set the tone for the week in international markets as folks cling to the last days of summer. We have:

• UK businesses and markets closed for the summer bank holiday today;
• Their US and Canadian counterparts follow suit on Monday, 4 September, closing for Labor Day.

MORNING MISCELLANY-

For Trump, getting arrested is great for business: The Trump campaign raised more than USD 7 mn in the 24 hours after his arrest in Georgia by selling merch of the former president’s mugshot. (Politico)

Saudi football league targets European stage: Saudi Arabia’s Public Investment Fund is spending bns of USD trying to buy up as much of Europe’s football talent as it can. Now the country’s league wants its clubs to compete on the biggest stage: the Uefa Champions League. (Bloomberg)

The US airforce is embracing AI in a big way: The Pentagon is accelerating efforts to deploy autonomous drones piloted by artificial intelligence and AI-assisted fighter jets, as it angles to get ahead of China in the battle for supremacy in the air and on the sea. (New York Times)

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the recent performance of industrial stocks on the EGX.

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.

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

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: How Portugal’s Nova University is working to replicate its experience and standards in its Egypt branch campus.