Madbouly slams Israeli plans to push displaced Gazans into Egypt

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What We're Tracking Today

This is how you can support relief efforts in Gaza

Good morning, friends. Two stories are competing for your attention this morning.

In business news: ADQ has reportedly finalized its USD 800 mn purchase of three state-owned petchem and drilling companies. It’s a welcome shot in the arm for state coffers and further sign of momentum in the Madbouly government’s asset sale program.

But the BIG STORY here at home this morning is PM Moustafa Madbouly’s warning to Israel not to try to push displaced Palestinians into Sinai. Madbouly’s remarks, made in Sinai before he returned to Cairo to meet with ADQ chief and UAE Investment Minister Mohamed Alsuwaidi, comes as officials prepare to open the border crossing at Rafah to allow in a limited number of wounded Gazans as well as foreign passport holders.

MORNING MUST READ- “A textbook case of genocide”— that’s how Craig Mokhiber, a top UN rights official, described Israel’s war on Gaza in a letter of resignation yesterday to UN High Commissioner for Human Rights Volker Turk.

Want to support relief efforts in Gaza, but don’t know how? We’ve got you. More than a mn people in Gaza have been thrown from their homes and every human being there lacks access to food, water, and fuel amid the most intense bombardment any population has endured this century. The charities we’re listing below are Egyptian organizations working on Gaza relief that we think you can trust if you want to make a donation.

#1- Egyptian Red Crescent Society is one of the nation’s leading providers of humanitarian and emergency medical services. The Egypt Red Crescent accepts donations in EGP online and is on Fawry with the service code 99981. You can also donate to the organization through theis Banque du Caire account: 49/403/30 (EGP) or 1065/601/30 (USD — code: BCAIEGCX030).

#2- Egyptian Food Bank: The food bank has launched “Aid Gaza,” a hunger-relief campaign to supply essential food items to the people of Gaza. You can make an online donation through EFB’s website or the unified bank account number 888777 at every bank in Egypt. Do you live abroad? The EFB has a list of its verified accounts at major institutions (along with account numbers) here.

#3- The Mersal Foundation is a non-profit medical organization running medical aid convoys to Gaza. It is on Fawry using service code 9200 or you can donate through its EGP accounts at major national banks including CIB (100034654454), Banque Misr (5450001000003297), Emirates NBD (1019409332701), National Bank of Egypt (1953071376769426268), AAIB (1015996610010201), QNB (7352031181714268). The group lists other ways you can donate on its Facebook page.

#4- Lifemakers: The NGO, which has a record of providing medical, educational and social care services to Palestinians, has been helping to prepare aid convoys ahead of dispatch to deliver food, medical supplies, water, blankets, clothing, and other essentials to the besieged Gaza strip since the outbreak of the Israel-Hamas war. Donate through the foundation’s website or use Fawry code 950. Lifemakers also accepts donations for Gaza relief in EGP via CIB (account 100034226827) and NBE (0773070478998401017).

HAPPENING TODAY-

It’s the beginning of a new month. Among the news triggers to watch out for in the coming weeks:

PMI: S&P Global will publish its Egypt PMI figures for October on Sunday, 5 November;
Foreign reserves: The central bank will release October’s foreign reserves figures next week;
Inflation: Capmas and the CBE will publish the latest inflation data on Thursday, 9 November.

Thai FM in town to discuss Hamas hostages: Thailand’s Foreign Minister Parnpree Bahiddha-Nukara is in Cairo today to discuss the status of talks with Hamas leaders to release the hostages the group holds in Gaza, which includes 22 Thai nationals hostage. Bahiddha-Nukara held similar discussions with Qatari officials in Doha yesterday. Egypt and Qatar both have lines of communication with the Hamas leadership and have taken the lead in the negotiations.

It’s Fed day: The Federal Reserve will announce its decision on interest rates at the end of its two-day policy meeting this evening. The market is pricing in a 99.5% chance that the Fed keeps rates on hold as inflation tempers and the war in Gaza triggers fresh uncertainty for the global economy.

That sets up tomorrow’s CBE meeting. The Central Bank of Egypt’s monetary policy committee is expected to leave interest rates unchanged when it meets on Thursday, according to a majority of the analysts we surveyed this week.

Day 4 of Cairo Water Week: The five-day conference is taking place at the Nile Ritz Carlton and brings together policymakers from around the world to discuss solutions to our most pressing water issues.

Windows 11 has gone full AI: Microsoft has begun pushing out a major Windows 11 update that embeds its Copilot AI assistant into the operating system and will this week start selling its AI-powered Microsoft 365 Copilot productivity suite. Copilot is a Chat GPT-esque generative AI capable of writing text, analyzing data, generating presentations, and assisting with web search.

HAPPENING NEXT WEEK-

State calls for final financial offers for Wataniya: Investors that have completed due diligence on military-owned filling station operator Wataniya will be able to submit final offers for a stake in the company next week when the state re-opens the bidding process, writes Al Borsa, citing sources it says are in the know. Bidders have two weeks to get offers in. The Sovereign Fund of Egypt is looking to sell at least 10% — and potentially as much as 100% — of the company as part of the state’s privatization program. The sale could be wrapped up by December, Planning Minister Hala El Saeed said earlier this month.

We’ve counted six bidders: Shell and China’s North Petroleum recently joined Taqa Arabia, Abu Dhabi National Oil Company (Adnoc), Emirates National Oil Company (ENOC), and Saudi firm Petromin on the list of outfits that have reportedly submitted offers for a stake in Wataniya. Bids range between USD 250 mn and USD 280 mn, Asharq Business has reported.

Remember: The NSPO has spun off 174 of its 300 stations into a separate entity, which appears to be in line for a rebrand as the organization plans to launch a new fuel retailer this year called A1.

THE BIG STORY ABROAD-

All eyes remain on Gaza after Israel launched airstrikes on the Jabalia refugee camp in north Gaza, killing 120 civilians and, reportedly, a senior Hamas official. We have more in this morning’s War Watch, below. (BBC | Financial Times | Reuters | Bloomberg | CNBC | Wall Street Journal | Washington Post)

Mixed messages from Israel’s top warmaker: The IDF is “paying a heavy price” for its invasion of Gaza but is making “significant” progress, Israeli Defense Minister Yoav Gallant said yesterday. Neither the ministry nor Hamas have released any casualty figures in the three days since the IDF began its ground offensive.

Meanwhile, the US continues to build-up troops in our region: The Pentagon is deploying another 300 US troops to the region, it said yesterday. The US military has sent two aircraft carrier strike groups, several thousand troops, an undisclosed number of fighter jets, and missile batteries to the region since 7 October as a deterrent to other regional actors from entering the conflict. Iran-backed militia have attacked US forces in Iraq and Syria at least 24 times in recent days, including at least three on Monday, US officials said.

WATCH THIS SPACE-

We’re going to reduce fossil fuel dependence to 55% by 2035: The Egyptian Electricity Holding Company aims to reduce fossil fuel dependence for electricity production to 55% by 2035, a source at the Electricity Ministry told Enterprise Climate. Renewables will make up 40% of our electricity production, while the remaining 5% will be from the Dabaa nuclear power plant.

Larger plans afoot: We’re embarking on a five-step plan to produce up to 1.4 GW from renewable sources by 2027, the source told us, without disclosing any more details. The country also plans to reduce the share of hydroelectric power to 2% as its units are becoming obsolete and require major investments, they added.

Egypt is ready to sacrifice mns of lives for Sinaii, says Madbouly

Egypt has denounced Israel’s plan to push displaced Palestinians into Gaza in the strongest terms yet, with Prime Minister Moustafa Madbouly yesterday raising the threat of hostilities if officials in Benjamin Netanyahu’s government try to push ahead with the plan. “We are prepared to sacrifice mns of lives to ensure that no one encroaches upon [Sinai],” the prime minister said in a speech in North Sinai yesterday, where he announced the government’s EGP-bns plan to develop the governorate.

A leaked Israeli plan has raised concerns in Cairo: The PM’s statement came a day after reports in the Israeli and Western press showed that the Israeli government had drawn up plans to resettle Gaza’s population in the Sinai — and that Netanyahu has been lobbying European leaders for support. Israel has displaced 1.4 mn civilians and driven 800k from the north to the south of the territory, and the fear in Cairo is that it will try to force them across the border with the blessing of some of its key Western backers. “We will not give up a single meter of Sinai land,” Madbouly said yesterday.

This is the strongest statement yet from an Egyptian official: Egyptian officials have been voicing their opposition against the forced displacement of Gazans since the war broke out. President Abdel Fattah El Sisi has on several occasions publicly rejected the idea in front of visiting foreign officials, including during a press conference with German Chancellor Olaf Scholz when he mockingly told the Israelis to resettle them in the Negev.

Western officials are distancing themselves from the idea,the US more forcefully so, with a White House readout of a conversation between President Biden and Jordan’s King Abdullah saying it is “critical” to avoid the forcible displacement of Palestinians. Both Biden and Secretary of State Antony Blinken previously voiced opposition to the idea. The EU is also looking to distance itself from claims in the Financial Times that some of its member states are on board, with the bloc’s Middle East peace envoy yesterday rejecting the idea in an interview with The National.

The state’s plans for North Sinai: The government plans to invest some EGP 363 bn in North Sinai over the coming five years as part of its efforts to develop the area, Madbouly said yesterday. The government is giving mixed signals about the timing of this announcement, with cabinet spokesman Sameh El Khashin saying last night that it has a direct correlation with the current push for Egypt to take in displaced Gazans (watch, runtime: 3:04), while Madbouly implied that the announcement was coincidental.

Medical treatment for some injured Palestinians: Officials here are expected to allow thousands of injured Palestinians to cross the border at Rafah and receive treatment in hospitals that have been set up in the Sinai, the Wall Street Journa l reported this morning, citing senior Egyptian officials. Gaza’s General Authority for Crossings and Borders in Gaza said last night that 81 people will be received by Egyptian medics.

Some foreign nationals will be able to leave: Egypt will allow up to 400 foreigners stuck in Gaza to leave starting today, according to the WSJ. Egypt struck an agreement with Israel, the US, and Hamas to allow foreigners and severely injured Gazans to cross into Egypt, the newspaper reports.

FURY AS ISRAEL BOMBS REFUGEE CAMP-

As many as 120 dead in Israeli airstrike: Dozens of people have died when several Israeli airstrikes hit the densely-populated Jabalia refugee camp in north Gaza yesterday. The number of people killed in the attack remains uncertain, with the Gaza Health Ministry putting the death toll at 50 and the number of injured at 150. The Indonesian Hospital provided a sharply higher figure, saying it had received 400 casualties, 120 of whom had died. At least six missiles were said to be dropped in the same area. Doctors Without Borders said it was “horrified” by the attack.

Who died is also disputed: The Israeli Defense Forces claimed to have killed a senior Hamas commander and a “large number of terrorists” in the attack, as well as destroying some of the group’s underground tunnels. Hamas denied the claim, saying that none of its leadership were in Jabalia during the attack.

Arab nations condemn the attack: Egypt, Jordan, Saudi Arabia, Qatar, and the UAE all condemned in the strongest terms the attack on Jabalia, with Egypt calling it a “new flagrant violation of international law.” The Qatari Foreign Ministry warned that the expansion of Israeli attacks “would undermine mediation and de-escalation efforts.”

Some South American states are saying enough is enough: Bolivia became the first country to cut diplomatic ties with Israel yesterday over what it said were “crimes against humanity” being committed by the IDF. Meanwhile, Chilean President Gabriel Boric announced he had recalled the country’s ambassador to Israel following the attack in Jabaliya.

The US has (slightly) hardened its tone: Secretary of State Antony Blinken stressed the importance of taking “feasible precautions” to avoid harming civilians during a call with Israeli President Isaac Herzog last night, a State Department spokesperson said. Meanwhile, in a call with Israeli Defense Minister Yoav Gallant, US Secretary of Defense Lloyd Austin emphasized “the urgency of protecting civilians … and conducting operations in accordance with the Law of War.”

Death toll rises: The attacks on Gaza have so far killed 8.5k, over 3.5k of which are children, according to figures from the Palestinian Health Ministry. The attacks have wounded 21.5k and left 2k bodies trapped under rubble since Israel started its ground invasion of Gaza after the Hamas attack on 7 October.

AID-

Aid deliveries to Gaza are increasing:The Palestinian Red Crescent last night received 59 trucks of humanitarian aid — the largest single day wave of aid so far — through the Rafah crossing, pushing the total number of trucks that crossed into Gaza since 7 October to 217.

Egypt is working on sending more aid: The head of the UN relief agency for Palestinian refugees, Philippe Lazzarini, was in Cairo yesterday to discuss accelerating aid efforts with Foreign Minister Sameh Shoukry. The US Middle East humanitarian envoy David Satterfield was in town a few days ago for similar talks. Egypt has accused Israel of obstructing the rapid delivery of aid to the besieged territory.

DIPLOMACY-

Norway calls into question the legitimacy of Israel’s war on Gaza, becoming the first European country to suggest that Israel’s assault is in breach of international humanitarian law.
The foreign ministers of Egypt, Saudi Arabia and Jordan are in constant contact (here and here), while the EU’s policy chief has held talks with all three in the past two days.
The US wants to keep Israeli-Saudi reconciliation alive.
Iran’s foreign minister is on another tour of the region, meeting with Hamas head Ismail Haniyeh and Qatar’s foreign minister in Doha yesterday and Turkey’s top diplomat in Ankara later today.
Russia has criticized Israeli strikes on Syria.

ADQ finalizes acquisition of stakes in Egyptian state-owned companies

Elab, Ethydco, and EDC stake sales ticked off the privatization checklist: Abu Dhabi’s sovereign wealth fund ADQ has inked contracts with the Sovereign Fund of Egypt (SFE) to finalize its acquisition of minority stakes in three state-owned oil and petrochemical companies, Al Borsa reported yesterday, citing sources it says are familiar with the matter.

The details: ADQ acquired a 35% stake in Egyptian Linear Alkyl Benzene (Elab), 30% of Egyptian Ethylene and Derivatives Company (Ethydco), and 25% of the Egyptian Drilling Company (EDC). The fund will pay USD 800 mn for the stakes, which will be transferred immediately, the media outlet quotes its sources as saying. To get the agreement over the line, the Madbouly government has reportedly agreed to provide certain guarantees on the transaction to ADQ for a defined period, according to an unconfirmed report.

The bigger picture: The sales were part of the USD 1.9 bn of privatization agreements announced in July. The government is accelerating its privatization plans in a bid to attract more foreign currency into the country and ease the 18-month currency crisis triggered by the war in Ukraine and rising US rates.

Looking ahead: The state wants to complete another USD 5 bn in sales between now and June 2024. It expects to sell stakes in the Gabal El Zeit and Zafarana wind farms, military companies Wataniya and Safi, a 4.8 GW combined-cycle power plant in Beni Suef, and a number of desalination plants over the next eight months.

Advisors: ADQ used Matouk Bassiouny & Hennawy as a legal advisor on the sale, while the SFE was represented by Baker McKenzie.

MORE ADQ INVESTMENTS TO COME?

Madbouly drums up ADQ interest in local investments: Prime Minister Moustafa Madbouly met with ADQ chief and UAE Investment Minister Mohamed Alsuwaidi yesterday, a cabinet statement said yesterday. Madbouly talked up investment incentives, golden licenses, and easing barriers to land ownership.

Egypt’s net foreign assets position deteriorated in September

Egypt’s net foreign assets gap widened in September to negative USD 26.8 bn from negative USD 25.9 bn the month prior, according to Enterprise calculations based on Central Bank of Egypt figures. This marks the first jump in net foreign liabilities since June, when they hit a record high of USD 27.1 bn.

Liquidity in the banking system improved slightly, with net liabilities inching down to USD 16.3 bn from USD 16.5 bn last month.

The Central Bank of Egypt’s net foreign liabilities widened to USD 10.5 bn from USD 9.4 bn in August, according to the figures. This is a reversal of the previous month, when the CBE’s narrowing liabilities supported a marginal improvement in the net foreign asset position.

Central Bank of Egypt has lined up c. USD 1 bn from the Chinese Development Bank

Fresh financing is on its way from China: State-owned China Development Bank (CDB) announced that it gave the Central Bank of Egypt CNY 7 bn (c. USD 957 mn) on 30 October to, fulfilling a loan agreement signed last month during the Belt and Road Forum, according to a statement by the lender yesterday.

It’s all about cooperation and the Belt and Road initiative,says the Beijing-based lender. The fresh financing will go towards unspecified agreements from October's Belt and Road Forum and nine already agreed upon projects from the Forum on China–Africa Cooperation held in 2021.

The CBD is no stranger to Egypt: The lender added that it has issued USD 6.5 bn worth in loans in Egypt in the first nine months of this year. This has gone towards supportings the CBE’s USD 1 bn credit line, local bank financing for MSMEs, electricity infrastructure projects, and projects in the TEDA industrial zone in Ain Sokhna. The bank is also trying to set up a branch in Egypt so Chinese companies can access CNY in Egypt to fund local investments.

Chinese companies have also become an important source of FX investment: At the recent Belt and Road Forum, private and state-owned enterprises in China have pledged investments worth c. USD 15.5 bn in the Suez Canal Economic Zone. Enterprise HQ has been inundated with big China investment stories throughout the year on at least a weekly basis, especially now we’re set to join BRICS in 2024.

DATA POINT- About 5% of our total external debt is owed to the Chinese: Egypt owed USD 8.2 bn to China as of the end of March, according to central bank figures (pdf). The country’s total external debt was USD 165.3 bn as of March 2023.

The international press also picked up the story: Reuters

Egypt slashes gas supplies to energy-intensive industries by up to 30%

Energy-intensive industries have seen their gas supplies cut in the wake of Israel and Chevron’s decision to suspend gas exports to Egypt, several news outlets reported yesterday. Asharq Business reported that fertilizer companies have seen supplies reduced by 30% while Al Borsa says that other industries — including iron and aluminum — are also facing temporary supply cuts (though it doesn’t specify how much).

A temporary measure? Companies that spoke with Al Borsa said that they had been informed that the reduction will only last for a matter of days.

The fertilizer industry and others are trying to push back: The Export Council for Chemical Industries and Fertilizers met with the oil, trade, and industry ministries to demand that the decision be delayed until companies can fulfill their existing export contracts. Failing this, the council proposed reducing the cut down to 10%, Al Borsa reported.

This isn’t altogether new: The government had diverted natural gas from fertilizer plants to the national grid months before the war in Gaza, with some fertilizer producers reportedly seeing their supplies fall by 20% at the height of the power crisis in August. The gas cuts were expected to affect mostly producers of urea fertilizer, a low-cost nitrogenous fertilizer that consumes high volumes of gas, according to earlier report s from back in July.

Remember: Industries are having to cut back on gas usage after imports of Israeli gas were suspended earlier this month due to the war in Gaza. The Madbouly cabinet revealed this week that the country’s gas imports have fallen to zero from 800 mn cubic feet of gas per day prior to 7 October. The loss of Israeli gas comes at an inopportune time for the country, which has been facing daily blackouts since July due to falling domestic gas production and a particularly hot summer. Longer and more irregular blackouts have been a feature across much of the country since the end of last week.

EFG Hermes closes CIRA’s second future flow issuance

CIRA Education wraps up second future flow securitization: EGX-listed education provider CIRA Education has closed its second future flow issuance worth EGP 700 mn, financial advisor EFG Hermes said in a press release (pdf) this morning. This is the second issuance of a larger EGP 2 bn program, and follows the company’s maiden EGP 800 mn issuance in November last year.

The issuance will support CIRA’s expansion plans:The funds raised from the issuance will be used to cover CIRA’s growth plans in the next three years, including expanding its university and K-12 offering, CEO Mohamed El Kalla previously told us.

SOUND SMART- Unlike traditional securitization, future flow allows the securitization of payments that aren’t yet on the company’s balance sheet, giving companies access to liquidity without needing a big portfolio of accounts receivables. Future income — whether from club memberships, phone bills, utility payments, tuition fees or rents — is packaged into securities and offered to investors in order to raise capital. We have a full explainer here.

Advisors: EFG Hermes led the transaction, and was underwriter along with the Arab African International Bank, Al Baraka Bank (also subscriber to the issuance), Suez Bank, and Banque Misr. Zulficar & Partners provided counsel, AAIB was the custodian, and PwC was the auditor.

DATA POINT- The year in securitization (so far): The issuancebrings the total value of securitized bonds brought to market so far this year to some EGP 57.6 bn, according to data tracked by Enterprise.

Local healthtech startup Almouneer bags USD 3.6 mn in seed round

Almouneer raised USD 3.6 mn from investors in seed round: Local healthtech startup Almouneer has raised USD 3.6 mn in a seed round led by Global Ventures, Proparco, Digital Africa via their Bridge Fund, Wrightwood Investments, and several other unnamed international funds, according to a press release picked up by Wamda.

Almouneer? The women-owned startup supports sufferers of chronic diseases such as diabetes via its digital platform DRU. Almouneer currently maintains a customer base of over 120k users, the release said, adding that it has doubled its business volumes in 2023.

Helping patients monitor and manage their diabetes: The funds will be directed to the development and expansion of Almouneer’s DRU platform, which connects to glucometers to allow patients to monitor their diabetes, pre-diabetes, or obesity and manage their lifestyle accordingly. The platform, which will be developed to connect to wearable devices such as smart watches, provides patient and doctor-facing apps, with the DRU app for doctors set to be launched in 1Q 2024, the release said.

Regional, intl expansion in 2024: Almouneer wants to expand regionally and internationally, the statement added, with plans to for market entries to Saudi Arabia, UAE and African countries including Nigeria and Kenya in 2024.

It’s a regional issue: Over 40% of the Middle East and Africa suffers from pre-diabetes or obesity, the statement said. Looking closer to home, Egypt has some 15 mn diabetics, accounting for 20% of the population.

Gaza continued to dominate last night's talk shows alongside Madbouly’s trip to Sinai

Leading talk show coverage last night was Prime Minister Moustafa Madbouly’s visit to North Sinai, during which he laid out details of the second phase of the Sinai development plan and where the country stands on the Palestinian cause.

Sinai development round two: Prime Minister Moustafa Madbouly’s visit to Sinai announce the second phase of the Sinai Development Project dominated the airwaves and received coverage from from Kelma Akhira (watch, runtime: 6:01), Ala Masouleety (watch, runtime: 3:22), and Masaa DMC (watch, runtime: 1:20). The EGP 400 bn second phase of the Sinai Development Project was launched yesterday and follows the first EGP 600 bm phase of the project in 2018, Cabinet spokesperson Sameh El Khashin told viewers on Al Hayah Al Youm (watch, runtime: 3:49).

But the announcement seemed to be more about politics than development: Egypt will respond with a “a categorical and decisive no” to any calls for Egypt to give up a single “grain of sand from Sinai,” El Khashin said during his appearance on Hadith fi Misr, mirroring earlier comments by Madbouly in Sinai (watch, runtime: 3:04). El Khashin went on to condemn attempts to collectively punish and forcibly displace the Palestinian people from Gaza.

Little hope that the international community will help stop the war: “Nothing indicates that a breakthrough will occur or that the international community will intervene to stop the violations, killing and destruction in Gaza,” Palestinian Authority spokesman Ibrahim Melhem said yesterday during an interview on Hadith fi Misr (watch, runtime: 3:05).

Even refugee camps aren’t safe from Israeli airstrikes: Last night’s hosts also addressed the Israeli bombing of the Jabalia refugee camp and the still rising civilian death toll, including on Kelma Akhira (watch, runtime: 5:53) and Masaa DMC (watch, runtime: 2:57 | 5:27).

Egypt receives wounded Gazans: Lamees El Hadidi also covered the opening of Egypt’s Rafah crossing today to receive 81 wounded Palestinians for treatment in Egypt (watch, runtime: 3:10). North Sinai Governor Mohammed Abdel Fadil Shusha told Ala Masouleety that wounded Palestinains “will return to their country” following their recovery and that the field hospital in Sheikh Zuweid can only handle 50 cases at a time (watch, runtime: 5:22 | 2:41 | 6:45).

Also on the airwaves last night:Don’t worry, those four hour-long power cuts you heard about aren't a sign of things to come:Four hour long power outages in some areas may be related to a “technical malfunction,” Cabinet spokesperson El Khashin told Yahduth fi Misr, adding that “the problem should be solved soon”. He also gave us some hope that our regular run-of-the-mill blackouts will soon come to an end once temperatures drop (watch, runtime: 2:18).

Sky, Reliance Logistics in talks with BdC to fund multipurpose terminal at East Port Said port. Plus: Banque Misr land sale

DEBT WATCH-

Sky-Reliance consortium could get USD 65 mn loan from BdC: A Sky Logistics and Reliance Logistics consortium is reportedly in talks with Banque du Caire (BdC) for a USD 65 mn loan to fund its multipurpose terminal at the East Port Said port, sources familiar with the transaction reportedly told Al Borsa. The consortium is expected to wrap up negotiations on the loan terms within the next few days. The consortium was recently awarded a 30-year build-operate-transfer contract for the multipurpose terminal.

** Read the full story in this morning’s edition of E nterprise Logistics.

#2- EGP 5 bn wanted for silo development:The Egyptian Holding Company for Silos and Storage is looking to borrow EGP 5 bn from a syndicate of local banks led by the National Bank of Egypt and Banque Misr, according to Asharq Business (here and here), which cited anonymous banking sources. The loan will be used to finance silos in Toshka and other Egyptian governorates, one of the sources said.

Expanding storage capacity is a top priority right now: The World Bank, the EU and the French Development Agency have all provided finance to Egypt to help expand its silo capacity in response to the rising food insecurity triggered by the war in Ukraine.

PRIVATIZATION WATCH-

Banque Misr to sell EGP 120 bn worth of untapped land plots: State-owned lender Banque Misr has finished reviewing its inventory of vacant land plots worth EGP 120 bn, reports Al Arabiya, citing a Banque Misr official who spoke to AWP. The bank wants to sell the plots or use them in strategic partnerships with foreign investors through the Sovereign Fund of Egypt.

A land sale is already in progress: The bank is reportedly nearing a EGP 1 bn sale agreement with a consortium of property developers led by Hassan Allam Properties. Once the transaction goes through, the developers will set up a mixed-use development on the plot in Sheikh Zayed.

INVESTMENT-

Bahrain-based Islamic investment bank GFH Group could invest some USD 500 mn in Egypt and has appetite for the health, education and logistics sectors in 2024, Al Borsa reports, citing unnamed sources. The news follows an earlier report by Ash arq Business that GFH is looking at an acquisition in education. The group’s logistics arm, GFH Partners, is also looking to invest in in Egypt’s smart transportation sector, Al Borsa reports.

IPO hype comes to an end in Western markets

US, EU investor optimism on IPOs plummets: Underwhelming initial listings in recent months have drained investor’s last hopes for a rebound in the IPO market. You can blame market volatility, falling valuations, and a potential early winter shutdown of the market, writes the Financial Times. Tech startups Arm, Instacart, and Klaviyo were all met with strong investor demand during their recent IPOs, yet are now trading below their initial prices. On the other side of the pond, London’s most high-profile IPO, fintech CAB Payments, witnessed a 72% collapse in its share prices only three months after its listing.

A while to wait: Analysts don’t expect investor appetite to return until 2024, with one predicting a March 2024 return. “The momentum dies when deal performance dies and that’s what you’ve seen,” said former equity capital markets banker David Erickson. “Until the market improves, I think we’re going to be sitting here for a while.”

ALSO- Oil cuts pull down Saudi’s GDP: Saudi Arabia’s GDP contracted by 4.5% y-o-y in 3Q 2023, marking its biggest contraction since 2020 on the back of oil cuts, Bloomberg reported. The country saw its oil activity dip by 17.3% y-o-y for the quarter, while non-oil activity grew 3.6% y-o-y, according to preliminary data by the country’s General Authority for Statistics (pdf). The kingdom has been keeping oil supply tight with voluntary supply cuts, which, combined with Russia’s supply curbs, have removed a combined 1.3 mn barrels of oil a day from the global market.

EGX30	22,551	-3.8% (YTD: +54.5%)
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
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THE CLOSING BELL-

The EGX30 fell 3.8% at yesterday’s close on turnover of EGP 4.7 bn (98.1% above the 90-day average). Foreign investors were net sellers. The index is up 54.5% YTD.

In the green: Telecom Egypt (+4.0%), Alexandria Containers and Goods (+1.6%).

In the red: Mopco (-13.1%), Abu Qir Fertilizers (-11.5%) and TMG Holding (-10.0%).

CALENDAR

NOVEMBER

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

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

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

3 November (Friday): Fitch to review Egypt’s sovereign credit rating.

5 November (Sunday): Senate back in session.

8 November (Wednesday): Turkish-Arab Economic Forum 2023, Istanbul.

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

12 November (Sunday): House of Representatives to reconvene.

12 November (Sunday): Deadline for technical and financial offers for Misr Aluminium Company rehabilitation project (extended from 12 October)

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

14-15 November (Tuesday-Wednesday): Egypt VC Summit, Conrad Hotel.

15 November (Wednesday): Deadline for MTO to buyback Dice Sports and Casual Wear’s 46.9% Stake.

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

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

22 November (Wednesday): Deadline to apply to FRA for credit rating license.

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

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

Signposted to happen some time in November:

Egypt to issue Samurai bonds.
Bidding deadline for 5 gold mine concessions in the Eastern Desert (TBC).

DECEMBER

1-3 December (Friday-Sunday): Egyptian expats vote in the presidential election.

4-7 December (Monday-Thursday): Egypt Defence Expo, Egypt International Exhibition Center.

9-15 December (Saturday-Friday) :The Engineering Export Council of Egypt’strade mission to Saudi Arabia.

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

10-12 December (Sunday-Tuesday): Voting in presidential election takes place in Egypt.

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

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

20 December (Wednesday): End of sugar export ban.

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

Signposted to happen sometime in December:

Gov’t expects to finalize sale of a stake in military-owned bottled drinks company Safi
Gov’t expects to finalize stake sale for military-owned fuel retailer Wataniya.
Gov’t expects to finalize sale of Zafarana wind farm
Kenyan trade conference in Egypt.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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.

4Q 2023: EGX to launch a shariah-compliant index.

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

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

25 February 2024 (Sunday): Deadline for bidders for oil and gas expansion in the 23 new regions.

Q1 2024: Opening of the new developed Pyramids Plateau in Giza.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

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 start operations.

2024

JANUARY

7 January (Sunday): Coptic Christmas.

25 January (Thursday): Revolution day.

APRIL

9 April (Tuesday): Eid El Fitr (TBC).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (TBC).

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day.

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day.

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

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

OCTOBER

6 October (Sunday): Armed Forces Day.

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